American Research Center in Egypt does not meet the following 8 Standards for Charity Accountability:
Standard 1 (Oversight of Operations and Staff)
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
ARCE does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years.
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.
ARCE 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 8 (Program Service Expense Ratio)
Spend at least 65% of its total expenses on program activities.
ARCE does not meet this Standard because:
- According to its IRS Form 990 for the year ended 6/30/2018, the organization spent $2,614,075 or 59% of its total expenses on programs.
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.
American Research Center in Egypt does not meet this Standard because:
- Althought the organizaiton reported income of $7,851,115 for the year ended June 30, 2018, it did not complete audited financial statements.
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.
ARCE does not meet this Standard because, when the organization provided 2019 budget information, it indicated that the budget:
- Did not identify total projected program service expenses.
- 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.
ARCE does not meet this Standard because:
- The organization states it does not have an annual report covering activities conducted in 2018.
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.
ARCE does not meet this Standard because:
- The organization's website does not include a summary of program service activites conducted in the past year.
Standard 18 (Privacy for Written Appeals & Internet Privacy)
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.
ARCE does not meet this Standard because the privacy policy on its website, https://www.arce.org, does not indicate:
- How to contact the charity to review personal information that is collected and request corrections.
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:
7
15
American Research Center in Egypt meets the remaining 10 Standards for Charity Accountability.
ARCE works to preserve Egypt's antiquities, including masterpieces of Pharaonic, Greek, Roam, Coptic and Ismail Art and architecture. ARCE's Cairo Center
provides assistance to ARCE-affiliated expeditions. ARCE also provides training for Egyptian antiquities professionals. The organization's fellowship programs enables American scholars to conduct academic research on Egyptian history and culture. ARCE also supports the dissemination of research through publication for general audiences and scholars as well as hosts an annual meeting.
For the year ended June 30, 2018, American Research Center in Egypt's program expenses were:
| Programs |
$2,614,075 |
| Total Program Expenses: |
$2,614,075 |
*2017 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. Gerry Scott, III was the organization's executive director for the year ended June 30, 2018 and received compensation of $229,544. BBB WGA does not have compensation information for Dr. Ismail at this time.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Membership appeals, Planned giving arrangements
Fundraising costs were 30% of related contributions. (Related contributions, which totaled $2,074,537, 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 American Research Center in Egypt's IRS Form 990 for the year ended June 30, 2018.
| Source of Funds |
| Net unrealized gain on investments |
$4,142,096 |
| Government grants |
$1,827,675 |
| Investment income |
$1,449,784 |
| Meetings, lectures, and publications |
$177,742 |
| Membership dues |
$141,397 |
| Contributions, gifts, and grants |
$105,465 |
| Other revenue |
$6,956 |
| Total Income |
$7,851,115 |
- Programs: 59%
- Administrative: 28%
- Fundraising: 13%
| Total Income |
$7,851,115 |
| Program expenses |
$2,614,075 |
| Fundraising expenses |
$618,615 |
| Administrative expenses |
$1,206,157 |
| Other expenses |
$0 |
| Total expenses: |
$4,438,847 |
| Income in Excess of Expenses |
$3,412,268 |
| Beginning Net Assets |
$68,852,860 |
| Other Changes In Net Assets |
$-22,174 |
| Ending Net Assets |
$72,242,954 |
| Total Liabilities |
$14,957,024 |
| Total Assets |
$87,199,978 |
Note: In the above financial section, "other changes in net assets" represents a foreign exchange loss.