Independent Sector
Meets Standards
Standards For Charity Accountability
Governance
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Board Oversight
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Board Size
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Board Meetings
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Board Compensation
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Conflict of Interest
Measuring Effectiveness
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Effectiveness Policy
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Effectiveness Report
Finances
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Program Expenses
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Fundraising Expenses
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Accumulating Funds
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Audit Report
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Detailed Expense Breakdown
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Accurate Expense Reporting
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Budget Plan
Fundraising & Info
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Truthful Materials
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Annual Report
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Website Disclosures
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Donor Privacy
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Cause Marketing Disclosures
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Complaints
Independent Sector meets the 20 Standards for Charity Accountability.
BBB Comment
In finding that Independent Sector meets Standard 8, which calls for program expenses to be at least 65% of total expenses, BBB WGA considered the following information: According to Independent Sector's 2023 audited financial statements, their program expenses were $6,470,858 which is 64% of their total expenses. In response to our initial findings, Independent Sector explained that, during 2023, the expenses associated with their CEO's Executive Office were entirely allocated as supporting services, rather than partially allocated to program expenses as they have been in the past. This was a one-time occurrence for the newly-hired CEO's first year focusing on administrative matters. Independent Sector states that they returned to allocating the CEO related expenses across all relevant categories in 2024, providing BBB WGA with internal 2024 financial information demonstrating an increase in program expenses.
Stated Purpose:
"to unite nonprofits and philanthropy to strengthen the charitable sector, identifying structural challenges and mobilizing the sector around policy and practice solutions."
Year, State Incorporated:
1980, DC
Independent Sector represents a cross section of the charitable and philanthropic community including local, regional, and national charities, foundations, corporate giving programs, and other organizations. The organization advocates for public policies that impact the sector, serving as a voice and source of information on federal legislative, regulatory, and economic issues facing the charitable sector. Independent Sector collaborates with others to create, curate, and disseminate knowledge designed to help organizations respond to challenges and opportunities, increase their impact, and fulfill their missions.
For the year ended December 31, 2023, Independent Sector's program expenses were:
| Community building | $2,409,136 |
| Policy leadership | $1,358,139 |
| Sector health | $1,016,381 |
| Membership engagement | $224,812 |
| Communication and marketing | $1,462,390 |
| Total Program Expenses | $6,470,858 |
Chief Executive
Dr. Akilah Watkins, President and Chief Executive Officer
Compensation*
$601,665
Chair of the Board
Rev. Adam Russell Taylor
Chair's Profession / Business Affiliation
President, Sojourners
Board Size
15
Paid Staff Size
31
*2023 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Grant proposals, Internet, Direct mail appeals
Fundraising costs were 11% of related contributions. (Related contributions, which totaled $5,107,014, are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on Independent Sector's audited financial statements for the year ended December 31, 2023.
Source of Funds
| Publication sales and other | $9,445 |
| Conference fees | $183,235 |
| Rental income | $736,430 |
| Investment income | $919,986 |
| Membership contributions | $1,245,730 |
| Grants and contributions | $3,861,284 |
| Total Income | $6,956,110 |
Programs: 64% Fundraising: 6% Administrative: 22%
| Total Income | $6,956,110 |
| Total expenses: | $10,053,855 |
| Program expenses | $6,470,858 |
| Fundraising expenses | $569,475 |
| Administrative expenses | $2,205,875 |
| Other expenses | $807,647 |
| Income in Excess of Expenses | $-3,097,745 |
| Beginning Net Assets | $20,629,593 |
| Other Changes In Net Assets | $0 |
| Ending Net Assets | $17,531,848 |
| Total Liabilities | $8,910,699 |
| Total Assets | $26,442,547 |
Note 1: According to Independent Sector, in 2023, the organization received in-kind contributions totaling $20,000 in the form of airline ticket vouchers.
Note 2: In the financial section above, "other expenses" refers to building services, including: tenant operations ($541,123) and building operations ($266,524).
An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the International Association of Better Business Bureaus.
This report is not to be used for fundraising or promotional purposes.
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Review in Progress
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Report completed by:
BBB Wise Giving Alliance