CharityWatch's rating of Boy & Girls Clubs of America (National Office) is for the 501(c)(3) national organization, tax ID #13-5562976.
Not included in the rating are the subsidiary alliance organizations of Boys & Girls Clubs of America (the vast majority of which are 501(c)(4) tax-exempt, social welfare organizations) or the autonomously operated, chartered local member Boys & Girls Clubs.
According to the Boys & Girls Clubs of America (BGCA) consolidated audit of December 31, 2019 (Note 1 re: Organization):
"The accompanying [audited] consolidated financial statements include the financial position and operating results of BGCA's subsidiary alliance organizations located throughout the U.S. These alliance organizations are organized under either Section 501(c)(4) or Section 501(c)(3) of the Internal Revenue Code and were formed primarily to meet certain state statutory reporting requirements. Certain members of BGCA's senior management serve as members of the governing boards for certain of these alliance organizations. Such subsidiary alliance organizations numbered 53 and 52 at December 31, 2019 and 2018, respectively.
"The accompanying [audited] consolidated financial statements do not include the financial position and operating results of local member clubs, each of which is an autonomous corporation organized under the laws of the jurisdiction in which it is located. Each local member club operates under a charter granted by BGCA and has its own independent board of directors, which controls the local Boys & Girls Club, its programs, and staff. BGCA, the national organization, does not exercise supervision, direction, or control of these chartered local member clubs."
According to the Boy & Girls Clubs of America (BGCA) consolidated audit of December 31, 2019 (Note 18, Subsequent Events):
"On January 30, 2020, the World Health Organization ('WHO') announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the 'COVID-19 outbreak') and the risks to the international community as the virus spreads globally... In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
"The full impact of the COVID-19 outbreak continues to evolve as of the date of this report [May 19, 2020]. As such, it is uncertain as to the full magnitude that the pandemic will have on BGCA's financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, BGCA is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2020.
"With the outbreak, the children and communities served by the non-profit industry have experienced an increased demand for assistance. BGCA, while complying with government mandates, is partnering with many state and local officials to continue to serve children and families during the crisis.
"Financially, the outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown, which has impacted BGCA's investment values. BGCA's financial statements do not include adjustments to fair market value that have resulted from these declines. Also, cash flows from contributions may slow and the BGCA's contributions receivable may be impacted as well, as donors also face financial uncertainty. To assist with the uncertainty, BGCA is pursuing a 364-day revolving line of credit for borrowings up to $30,000 in May 2020.
"Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Company's results of future operations, financial position, and liquidity in fiscal year 2020."
According to the Boy & Girls Clubs of America (BGCA) 2019 tax filing, BGCA reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):
Regarding the payment or accrual of any compensation to officers, directors, trustees, key employees and highest compensated employees contingent on the revenues of the organization (Schedule J, Part I, Line 5a):
BGCA has a pay at-risk program that holds back a portion of the person's pay opportunity until multiple, stretch performance criteria are met. None of the pay at risk will be earned by any one person until a pre-established level of financial performance is attained, ensuring that we have the financial resources to meet the objectives of our mission, first and foremost. BGCA met the financial performance criteria for the 2019 calendar year and persons listed in Section VII, Part A [Compensation of Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees], received a portion of this pay at risk in 2020. The payment was based on multiple factors in addition to revenue, including organizational and individual performance goals that were pre-established and board-approved at the beginning of the year."
BGCA reports "Bonus & incentive compensation" payments to 11 individuals in 2019, including $92,553 to James L. Clark, President & CEO, whose reported total compensation in 2019 is $872,838. The reported "Bonus & incentive compensation" payments to the remaining 10 individuals ranged from $62,021 to $12,384, with associated reported total compensation ranging from $502,393 to $303,274 (IRS Form 990, Schedule J, Part II).