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AIP
Schools Charity Foundation
Unhappy with its appearance in AIP's December 2006
Guide, F-rated charity The Hope School Foundation (Foundation) contacted
AIP to request that we amend our report to reflect their view that
our information is "misleading," and "incomplete
and inaccurate." They also posted their concerns on the web
site of The Hope School (School), the group that the Foundation
exists to support and to which it is related through common board
members.
The Foundation appeared on AIP's list of 50 F-Rated Charities for
spending only 1% of its total expenses, or $7,178 on grants to support
the School, consisting of its entire program expense for 2005, as
reported in the group's financial statements. In the same year the
group spent $782,000 on fundraising, and $263,000 on management
expenses. One of the group's complaints is that AIP did not count
as a program expense the money collected by the Foundation on behalf
of the School. However, collecting money or earmarking part of its
investments for later transfer to another group is not a program
expense. Despite their complaint, the Foundation's own tax form
and audit both report only $7,178 in program expenses for the year.
Another complaint of the Foundation is that AIP did not include
contributions made to the School in our analysis. According to the
Foundation, The Hope School directly received $155,594 in the form
of contributions, legacies and bequests in fiscal year 2005. They
argued that donors may have given to the School as a result of the
Foundation's fundraising efforts, instead of giving to the Foundation.
By the same reasoning, donors could just have easily contributed
to the Foundation as a result of their familiarity with the School.
There is no way to measure the net effect of donations given to
one group as the result of a donor's familiarity with the other,
unless a consolidated audit reflecting the activities of both groups
combined were to be made available. It is significant to note that
even if this amount were added to the Foundation's fiscal year 2005
contributions, it would not have changed AIP's F-rating of the Hope
School Foundation.

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