PetSmart Charities

According to the PetSmart Charities consolidated audit of January 29, 2023 (Note 4, Transactions with PetSmart, Inc. and PetSmart Charities of Canada):

"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. The Organization received $95,000 from the management services agreement for both the years ended January 29, 2023 and January 30, 2022. Receivables from PCC of $28,075 at January 29, 2023 and $43,642 at January 30, 2022 represent management fees billed quarterly and miscellaneous reimbursable costs...

According to the PetSmart Charities audit of January 29, 2023 (Note 5, Transactions with Related Entities):

"During the years ended January 29, 2023 and January 30, 2022, amounts paid to board member related organizations totaled $6,079,500 and $315,425, respectively, and are included in Program Services in the accompanying statements of activities."

According to the PetSmart Charities audit of January 29, 2023 (Note 1 re: Contributed Goods and Services):

"...For the years ended January 29, 2023 and January 30, 2022, the Organization recorded contributed rent, goods, and services of $29,259,81 and $24,532,929, respectively, from PetSmart LLC..."

"For the years ended January 29, 2023 and January 30, 2022, the Organization received goods and services of $334,466 and $235,194, respectively, which primarily relate to advertising from entities other than PetSmart LLC..."

[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.]

According to the PetSmart Charities tax filing for the fiscal year ended January 29, 2023, BFAS reports re: Supplemental Information for Form 990 (IRS Form 990, Schedule O):

Regarding Form 990, Part VI, Section A, Line 2:

"Five board members serving during the fiscal year, J.K. Symancyk, Lacey Bundy, Cherise Ordlock, Mike Shultheis and Gary Shullaw have a business relationship."

Regarding Form 990, Part VI, Section A, Line 3:

"PCI has a management services agreement with PetSmart LLC, acting as a management company, to cost-effectively outsource certain management and administrative functions. PetSmart LLC is an unrelated organization as defined in the instructions of the form 990. PCI's board of directors retains control of the organization's governance, policies, budgets, contract approval, program direction, and all other matters necessary to accomplish PCI's charitable mission and to preserve the tax-exempt independent nature of the organization..."

According to PetSmart Charities tax filing of January 29, 2023, IRS Form 990, Schedule L, Part IV, Business Transactions Involving Interested Persons:

PetSmart LLC was paid $10,567,322 in total by PetSmart Charities. The "Relationship between Interested Person and Organization" is reported as "Substantial Contributor" The "Description of Transaction"(s) are reported as "Management Fee" and "Royalty Income" for $6,059,480 and $4,507,842, respectively. 

According to Form 990, Schedule L:

"The fee paid to PetSmart LLC is capped annually and the value of the use of real property, management and administrative services, products and supplies received by PCI under under the agreement overwhelmingly exceeds the payments made to PetSmart LLC, by a ratio greater than 3.9:1. PCI incurred $6,059,480 of expenses under the management services agreement with PetSmart LLC for the fiscal year ended January 29, 2023."