Make-A-Wish Iowa does not meet the following 3 Standards for Charity Accountability:
Standard 6 (Board Policy on Effectiveness)
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
MAW Iowa does not meet this Standard because:
- The organization's effectiveness assessment policy does not specify that this assessment will take place at least once every two years.
Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
MAW Iowa does not meet this Standard because:
- The organization's most recent effectiveness assessment report was produced in August of 2018.
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.
MAW Iowa does not meet this Standard becuase the organization's 2020 annual report did not include:
- Board roster
- Financial summary
Make-A-Wish Iowa meets the remaining 17 Standards for Charity Accountability.
BBB WGA Comment
Note 1: In finding that MAW Iowa meets Standard 1, which calls for a board of directors that provides adequate oversight of the charity’s operations and staff, BBB WGA considered MAW Iowa’s response to a former CEO’s (Ms. Woodley) fraudulent transactions. According to the organization, in 2021 they discovered that the former CEO embezzled funds to benefit herself and her family, with the board reacting appropriately and in a timely manner. The organization reports that, as a response, MAW Iowa conducted an investigation, revised policies and procedures, implemented automated controls, reviewed segregation of duties, and otherwise strengthen security measures.
Note 2: In finding that MAW Iowa meets Standard 8, which calls for a minimum of 65% of total expenses being spent on program activities, BBB WGA considered that, although the audited financial statements for the fiscal year ended August 31, 2020, report total expenses of $1,961,972 or 64% of total expenses, program expenses were significantly affected by COVID-19 restrictions. As stated by the charity “while [the organization] works every day to grant the wishes of critical children, COVID… made travel for them nearly impossible,” affecting their program expenses for the year.
Make-A-Wish Iowa (MAW Iowa) grants wishes for children between the ages of 2.5 to 18 years old with critical illnesses in Iowa. The organization reports that wishes create hope and transformation for a child, their family, and community. MAW Iowa reports providing four main types of wishes: a wish to go, a wish to be, a wish to have, and a wish to meet.
For the year ended August 31, 2020, Make-A-Wish Iowa's program expenses were:
| Wish granting |
$1,961,972 |
| Total Program Expenses: |
$1,961,972 |
-
Chief Executive
Sara Kurovski, President and Chief Executive Officer
-
Compensation*
$0
-
Chair of the Board
David Farnsworth
-
Chair's Profession / Business Affiliation
Partner-CPA, McGowen, Hurst, Clark and Smith
-
Board Size
17
-
Paid Staff Size
15
*2020 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: As reported by the charity, Ms. Sara Kurovski became MAW Iowa’s President and Chief Executive Officer on March 2021 with annual compensation of $115,000. According to the organization's IRS Form 990 for the year ended August 31, 2020, Ms. Rachel Reams was compensated $82,679 as Interim President and Chief Executive Officer.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements, Print advertisements (newspapers, magazines, etc.), Cause- related marketing (affinity credit cards, consumer product sales, etc.)
Fundraising costs were 26% of related contributions. (Related contributions, which totaled $2,599,788, 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 Make-A-Wish Iowa's audited financial statements for the year ended August 31, 2020.
| Source of Funds |
| Contributions |
$1,448,516 |
| Special events, net |
$1,070,548 |
| Investment income, net |
$96,832 |
| Grants |
$80,724 |
| Other loss |
($1,200) |
| Total Income |
$2,695,420 |
- Programs: 65%
- Fundraising: 22%
- Administrative: 13%
| Total Income |
$2,695,420 |
| Program expenses |
$1,961,972 |
| Fundraising expenses |
$683,620 |
| Administrative expenses |
$417,712 |
| Other expenses |
$0 |
| Total expenses: |
$3,063,304 |
| Income in Excess of Expenses |
$-367,884 |
| Beginning Net Assets |
$3,012,057 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$2,641,792 |
| Total Liabilities |
$533,032 |
| Total Assets |
$3,174,824 |
Note 1: In the financial summary above, “other changes in net assets” refers to loss on sale of property and equipment ($3,415) and change in split-interest agreements (-$1,034).
Note 2: According to the organization’s audited financial statements for the year ended August 31, 2020, MAW Iowa received in-kind contributions of $413,821 including wish related gifts ($255,230), special events donations ($78,067), professional services ($20,770), property and equipment ($2,619), and other ($57,135).