Operation Smile does not meet the following 1 Standards for Charity Accountability:
Standard 4 (Compensated Board Members)
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.
Operation Smile does not meet this Standard because:
- Three members out of the nine member board of directors (33%) are compensated either directly or indirectly. One member of the board is directly compensated and two members are indirectly compensated as relatives of staff.
Operation Smile meets the remaining 19 Standards for Charity Accountability.
Complaints
Number of complaints processed by BBB Wise Giving Alliance in the last 36 months: 1
The organization addressed the complaint issues brought to its attention: 1
(This complaint involved mailing list removal).
Operation Smile offers cleft lip and cleft palate surgeries free of charge for children and adults. The organization engages in public-private partnerships to advance health care delivery, train local medical professionals to provide surgical care for patients in their communities, donate crucial medical equipment and supplies, and increase access to surgical care through patient recruitment and advocacy initiatives. In 2019, Operation Smile reports it trained 836 cleft care providers, conducted 176 medical missions, and extended medical programs to 19 new sites in 13 countries. Some ($10,379,881 or 14%) of Operation Smile's programs are conducted in conjunction with informational materials that include fund raising appeals.
For the year ended June 30, 2019, Operation Smile's program expenses were:
Medical missions |
$52,870,022 |
Education and sustainability |
$19,441,324 |
Total Program Expenses: |
$72,311,346 |
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Chief Executive
William P. Magee Jr., D.D.S., M.D., Co-Founder and Chief Executive Officer
-
Compensation*
$444,515
-
Chair of the Board
Kevin Miller
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Chair's Profession / Business Affiliation
Chief Operating Officer and Partner, J.R. Reingold & Associates
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Board Size
9
-
Paid Staff Size
181
*2018 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Membership appeals, Planned giving arrangements, Print advertisements (newspapers, magazines, etc.), Telephone appeals, Radio, Cause- related marketing (affinity credit cards, consumer product sales, etc.), Television
Operation Smile incurred joint costs of $27,303,920 for informational materials and activities that included fund raising materials. Of those costs $15,658,374 was allocated to fund raising expenses, $10,379,881 was allocated to program expenses, and $1,265,665 was allocated to administrative expenses.
Fundraising costs were 19% of related contributions. (Related contributions, which totaled $110,379,479, 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 Operation Smile's audited financial statements - consolidated for the year ended June 30, 2019.
Source of Funds |
Contributions |
$74,196,686 |
Contributed services |
$32,354,790 |
Gifts-in-kind |
$3,828,003 |
Program service revenue |
$811,127 |
Other income, net |
$276,469 |
Foreign currency loss |
($12,679) |
Total Income |
$111,454,396 |
- Programs: 73%
- Fundraising: 20%
- Administrative: 7%
Total Income |
$111,454,396 |
Program expenses |
$72,311,346 |
Fundraising expenses |
$20,589,410 |
Administrative expenses |
$7,068,748 |
Other expenses |
$0 |
Total expenses: |
$99,969,504 |
Income in Excess of Expenses |
$11,484,892 |
Beginning Net Assets |
$38,357,330 |
Other Changes In Net Assets |
$-25,500 |
Ending Net Assets |
$49,816,722 |
Total Liabilities |
$7,937,807 |
Total Assets |
$57,754,529 |
Note 1: According to the organization's audited financial statements for the year ended June 30, 2019, Operation Smile received in-kind gifts of $36,436,683 including medical services ($32,354,790), medical supplies ($3,374,982), and equipment ($706,911).
Note 2: As noted in the above financial section "other changes in net assets" refers to a loss on contributions receivable.