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Top Rated

PetSmart Charities

CharityWatch report issued
June 2017

Top-Rated Charity
A+
CharityWatch Grade
Our independent grade based
on a number of factors.
 
93%
Program Percentage
Amount spent on programs
relative to overhead.
 
$4
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

PetSmart Charities
19601 North 27th Avenue
Phoenix, AZ 85027

Other Names

None

Tax Status

501(c)3

Stated Mission

To find lifelong, loving homes for all pets by supporting programs and thought leadership that bring people and pets together.

View similar charities
Data based on Fiscal Year Ended 01/31/2016

Program Percentage: 93%

The percentage of PetSmart Charities's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$46,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $4

How many dollars PetSmart Charities spends on fundraising to raise each $100 of contributions.

$46,000,000

Calculated Total Contributions

(rounded)

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
PetSmart Charities IRS Form 990 93-1140967
PetSmart Charities Audited Financial Statements 93-1140967
Entity: PetSmart Charities
Document Type: IRS Form 990
Tax ID: 93-1140967
Entity: PetSmart Charities
Document Type: Audited Financial Statements
Tax ID: 93-1140967

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
PetSmart Charities
meets governance benchmarks.
 
PetSmart Charities
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy Opt-In Policy  

Unable to Provide Salaries

See Analysts' Notes for explanation.

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
CharityWatch is unable to provide sufficient salary information for PetSmart Charities because it outsources its management/staff through the for-profit company, PetSmart, Inc., which acts as a management company to PetSmart Charities. The IRS does not require nonprofit organizations to disclose compensation for management/staff outsourced through a for-profit entity.
According to the PetSmart Charities (PSC) audit of January 31, 2016 (Note 5, Transactions with PetSmart, Inc. and PetSmart Charities of Canada):

"The Organization is highly dependent upon the viability of PetSmart as this is the primary source of donated revenue received in the stores from customers and from PetSmart employees. Royalty income is generated on specific campaigns where the Organization receives a percentage of the purchase price on selected merchandise items sold in PetSmart stores that bear its trademark during a certain timeframe..."

"The Organization entered into a management services agreement with PetSmart to cost-effectively outsource certain business and administrative management services. The fees paid to PetSmart are capped annually and the value of contributed rent, services, products and supplies received by the Organization under the agreement overwhelmingly exceeds the payments made to PetSmart."

"The Organization incurred approximately $7,400,000...of expenses under the management services agreement..." in fiscal 2016.

[...]

"The Organization entered into a formal management services agreement with PetSmart Charities of Canada ('PCC') consistent with prior years' practice of providing business management, finance, strategy and other services..."



According to the PetSmart Charities (PSC) tax filing for the fiscal year-ended January 31, 2016, five of PSC's thirteen directors serving during the fiscal year were officers of PetSmart, Inc., which is an independent contractor to PSC under the terms of a management services agreement. Three additional officers of PSC were also employees of PetSmart, Inc. (IRS Form 990, Schedule L, Part V).
According to the PetSmart Charities audit of January 31, 2016 (Note 2, Contributed Goods and Services):

"...[T]he Organization recorded contributed rent, goods and services" from PetSmart, Inc. valued at $14,664,035 in fiscal 2016.

The Organization also reports receiving contributed goods and services valued at $788,940, "primarily relate[d] to pet food supplies and advertising from entities other than PetSmart, Inc.," in fiscal 2016.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]