Charitable Accountability
Artrain USA’s board of directors believes in charitable accountability and full disclosure. Artrain USA strives to meet or exceed commonly accepted accountability standards for nonprofit organizations.
Government & Oversight
- Artrain USA has a voluntary board of directors with between 20 to 25 voting members who are eligible to serve two consecutive three-year terms. Since Artrain USA serves the nation, Artrain USA strives to maintain a national board of directors with 50% representation from outside Michigan, 50% women and at least 20% people of color.
- Artrain USA’s board of directors reviews the CEO’s performance annually and approves the organization’s budget and fundraising practices each year. It adopted a conflict of interest policy in 2004.
- Artrain USA has established accounting procedures that are supported by its auditors that are sufficient to safeguard the organization’s finances.
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Artrain USA holds three to four board meetings per year. One meeting each year is held in Ann Arbor, Michigan, Artrain USA’s hometown. Two or more of the meetings are held in communities where Artrain USA is currently visiting. While Artrain USA encourages face-to-face participation, it offers board members an option to participate via conference call when traveling is not convenient. A quorum must be present in order to take any action.
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Artrain USA’s president/CEO, Debra Polich, is the only paid voting member of the board of directors. No other directors are compensated in any way.
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Artrain USA avoids business transactions with board members or staff; when such transactions take place, the interested party does not take part in the board vote on the transaction, and the transactions are priced below or at market value or provided in-kind.
Measuring Effectiveness
- Every two years, Artrain USA’s board of directors conducts a self-assessment, re- evaluates its goals and reassess its direction.
- A report detailing the board assessment results is distributed the next regularly scheduled board meeting after the report is completed and the results compiled.
Finances
- It is commonly accepted that an organization should spend at least 65%
of its total expenses on program activities. The percentage of Artrain
USA’s total expenses spent on program activities:
o 80% - 2006
o 71% - 2005
o 67.7% - 2004
o 87% - 2002
(Artrain USA did not tour in 2003.)
- It is commonly accepted that an organization should spend no more than
35% of related contributions on fund raising. (Related contributions include
donations, legacies, and other gifts received as a result of fund raising
efforts.) The percentage of related contributions Artrain USA spent on
fundraising:
o 13% - 2006
o 10% - 2005
o 13% - 2004
o 21% - 2003
o 6% - 2002
- Artrain USA’s unrestricted net assets total $1.7 million and its annual budget totals $1.5 million.
- Artrain USA’s finances are audited each year by an independent auditing firm. These audits are available online at www.ArtrainUSA.org, upon request by calling 734-747-8300 or by emailing info@artrainusa.org.
- Artrain USA’s audit contains a breakdown of expenses (e.g., salaries, travel, postage, etc) and shows what portion of these expenses was allocated to program, fundraising and administrative activities.
- Artrain USA accurately reports the charity’s expenses, including any joint cost allocations, in its financial statements. This information is included in Artrain USA’s audit and annual report and is available by request.
- Artrain USA’s fiscal year runs from January 1 through December 31.
Each year at the board of directors’ annual meeting, the board is presented
with and votes on a detailed budget including projected expenses and revenues
for the following year.
Fundraising and Informational Materials
- Artrain USA makes every effort to be completely truthful about the organization, mission, programs and fundraising activities in all means of communication.
- Artrain USA publishes an Annual Report once it has audited financial statements. The annual report includes the organization’s mission statement, summary of program services and accomplishments, roster of the board of directors and financial information including income and expenses. The annual report is available online at www.ArtrainUSA.org or by calling 734-747-8300.
- Artrain USA’s Annual Reports are available for viewing at www.ArtrainUSA.org.
- Artrain USA’s IRS Form 990 is available for viewing at www.guidestar.org or www.fdncenter.org.
- Artrain USA takes the collection and maintenance of its donors’ and visitors’ information and their wishes for privacy very seriously. Every effort is made to securely maintain accurate information. Review and correction of personal information can be arranged by contacting the office at 734-747-8300. At this time Artrain USA does not share or sell its donor or mailing lists with other agencies.
- Artrain USA provides a “check off box” on response forms that allows donors to state that they do not want their information shared with other organizations.
- Artrain USA is in the process of posting a privacy policy on its website.
- Artrain USA does not currently benefit from any cause-related marketing efforts.
- Artrain USA has not received any complaints from the Better Business
Bureau.