AIDS Network contends that the ACT Ride “returns” almost 90 percent to the agency after paying expenses to produce the event through the carefully constructed barriers to information that have been created by the agency. Through the careful crafting of financial reports, AIDS Network hides the truth regarding the true costs to produce the ACT Ride.
Examining the 2008 IRS Form 990 along with the public statements of AIDS Network reveals the following:
The 2008 tax return of AIDS Network (known as IRS form 990) contains required information on the revenue and expense of AIDS Network’s fundraising efforts. This information combined with the information published by AIDS Network on the results of the 2008 ACT Ride begin to piece together the mysterious puzzle of the true cost of fundraising at AIDS Network. As the puzzle comes together, it becomes clear that AIDS Network has not told the truth to ACT Riders when it claims that 89.4% of money raised in 2008 goes to fund AIDS Network client services and prevention programs.
Here’s what we now know about AIDS Network fundraising based on the recently filed IRS Form 990:
Fundraising Revenue
- All contributions: $436,988.00 (source: IRS Form 990)
- Red Ribbon sponsorships: $32,292.00 (source: IRS Form 990)
- Red Ribbon revenue: $27,044 (source: IRS Form 990)
- Total fundraising revenue: $496,324.00 (source: IRS Form 990)
Fundraising Expense
- Fundraising expense: $203,873.00 (source: IRS Form 990)
- Red Ribbon expense: $30,067.00 (source: IRS Form 990)
- 2008 ACT Ride expense (10.6% of $295,525 Ride revenue): $31,326.00 (source: Public statements of AIDS Network)
- Total fundraising expense: $265,266.00
Analysis
- Total 2008 Fundraising per IRS Form 990: $496,324
- Total 2008 Fundraising Expenses per IRS Form 990: $265,266
- Cost of fundraising as a percentage of total raised: 55 percent (source: IRS Form 990)
ACT Ride analysis (Based on AIDS Network’s public statement regarding the ACT Ride’s financial performance)
- 2008 ACT Ride Income (source: AIDS Network): $295,525.00
- 2008 ACT Ride Expenses (source: AIDS Network): $31,325.00
- Cost of fundraising as a percent to total raised (source: AIDS Network) 10.6 percent
Taking AIDS Network at their word regarding the costs to produce the ACT Ride, if we subtract the AIDS Network provided numbers from fundraising totals we find the following:
- All other non-ACT Ride fundraising: $200,799
- All other non-ACT Ride fundraising costs: $233,940
- Costs of non-ACT Ride fundraising as a percent of total raised: 116 percent
All of this data is affirmed by AIDS Network or the IRS Form 990. While the IRS does not break out the ACT Ride specifically, AIDS Network has provided this data when it announced the 2008 funds raised by the Ride and the 89.4% of these funds that are returned to AIDS Network.
If AIDS Network is being truthful to the Riders and the public about the revenue and expense of the Ride, then all other fundraising strategies by AIDS Network are losing a significant amount of money—-in fact, it’s costing $1.16 to raise $1.00
How can AIDS Network spend $233,940 to raise $200,799? It is unethical and shameful fundraising that must stop.
Or, is the real truth that AIDS Network has grossly overstated the financial performance of the ACT Ride by misleading the Riders and those who pledged funds to them. The truth may lie in the fact that a good portion of the $233,940 in “all other fundraising expense” is really expense of the Ride. How much Ride money is truly going to fund AIDS Network services?
AIDS Network has two choices:
1. Stop the unethical money-losing fundraising, or
2. Tell the truth about the ACT Ride financial performance.
For over a year, AIDS Network has stonewalled providing complete financial accounting of the verifiable expense and revenue of the Ride. It’s time for the stonewalling to stop. It’s time for AIDS Network to live up to its Donor Bill of Rights and its so-called commitment to financial transparency.
AIDS Network – it’s time to tell the truth about the ACT Ride once and for all.
