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CharityWatch
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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