ALS Association Texas Chapter does not meet the following 4 Standards for Charity Accountability:
Standard 11 (Financial Statements)
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.
ALSATC does not meet this standard because:
- The organization did not provide audited financial statements for the year ended January 31, 2019.
- According to the auditor’s opinion letter from the audited financial statements for the year ended January 31, 2018, the audit was not completed in accordance with Generally Accepted Accounting Principles (GAAP). In the opinion letter, the auditor stated that:
“We were unable to obtain sufficient appropriate audit evidence concerning the amount of durable medical equipment reported as assets at January 31, 2018, and of recognized revenue from donated durable medical equipment and contribution expense related to the contribution of such equipment to individuals during the year ended January 31, 2018, because sufficient controls were not exercised to track inflows and outflows of such equipment at various warehouse locations. Consequently, we were unable to determine whether any adjustments to those amounts were necessary.”
Standard 14 (Budget)
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
ALSATC does not meet this Standard because, when the organization provided 2020 budget information, it indicated that the budget:
- Did not identify total projected fund raising expenses.
- Did not identify total projected administrative expenses.
Standard 16 (Annual Report)
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
ALSATC does not meet this Standard because the 2018 annual report did not include:
- Total income matching the organization's 2018 audited financial statements
- End of year net assets
Standard 17 (Web Site Disclosures)
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.
ALSATC does not meet this Standard because the organization’s website, https://www.alstexas.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- Electronic access to the organization’s IRS Form 990 for the year ended January 31, 2019.
The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability:
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3
15
ALS Association Texas Chapter meets the remaining 13 Standards for Charity Accountability.
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Year, State Incorporated
1995, TX
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Stated Purpose
"to discover treatments and a cure for ALS, and to serve, advocate for, and empower people affected by ALS to live their lives to the fullest."
The ALS Association Texas Chapter (ALSATC) offers local care, advocacy, and research. ALSATC reports that all three areas serve an important, equal purpose, supporting patients who need help now, ensuring public policy serves the needs of ALS patients, and working so that one day nobody will suffer from ALS. The organization also works to alleviate the family?s burden with programs like clinics, support groups, and a financial assistance. During the fiscal year ended January 31, 2019, the organization reports serving 1,247 individuals.
For the year ended January 31, 2018, ALS Association Texas Chapter's program expenses were:
| Program services |
$2,134,636 |
| Total Program Expenses: |
$2,134,636 |
*2018 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Planned giving arrangements, Cause- related marketing (affinity credit cards, consumer product sales, etc.)
ALSATC incurred joint costs of $437,376 for informational materials and activities that included fund raising materials. Of those costs $262,426 was allocated to fund raising expenses, and $174,950 was allocated to program expenses.
Fundraising costs were 12% of related contributions. (Related contributions, which totaled $3,777,835, 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 ALS Association Texas Chapter's audited financial statements for the year ended January 31, 2018.
| Source of Funds |
| Special events, net |
$1,467,731 |
| Donated durable medical equipment |
$1,354,956 |
| General contributions |
$934,535 |
| Merchandise sales |
$500 |
| Total Income |
$3,757,722 |
- Programs: 80%
- Fundraising: 16%
- Administrative: 4%
| Total Income |
$3,757,722 |
| Program expenses |
$2,134,636 |
| Fundraising expenses |
$450,702 |
| Administrative expenses |
$114,541 |
| Other expenses |
$0 |
| Total expenses: |
$2,699,879 |
| Income in Excess of Expenses |
$1,057,843 |
| Beginning Net Assets |
$3,426,511 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$4,484,354 |
| Total Liabilities |
$364,536 |
| Total Assets |
$4,848,890 |
Note: According to ALSAT's audited financial statments for the year ended January 31, 2018, the organization received in-kind contributions of $1,354,956 in durable medical equipment.