As

many of us know, the MS Society changed its fiscal year end in March,

2009 to be December 31. One of the effects of this change is reporting

to the federal government for the previous year is now done as of

December 31, not August 31. Now that December 31 has passed, what do the

early numbers for the beginning of the CCSVI period look like (Sept -

Dec 2009)?

Well, we only get 4 months of data because of the new year end, so comparisons are difficult. We will have
to wait until December 31, 2011 to get a full 12 months to compare. But,

here are some interesting numbers so far.

Old Figures from Sept 2008 - Aug 2009

Remember the figures from August 31, 2009, which showed approximately 52 cents
from every dollar raised goes towards administrative costs and

fundraising, with the rest of donations going to client programs and

research? That's approximately a 1:1 rato -- $0.48 goes to client

services and research for every $0.52  going to Society

internal expenses.

Here's the important bit from their annual (12 month) financial statement to jog your memory:

The New Figures

 

Did you feel a surge in fundraising activities from the MS Society?

The same numbers cut from their latest 4 month financial statement show
some interesting developments. First, the ratio of dollars going to

client programs to those going to Society internal expenses has shifted

dramatically. Instead of 1:1, the ratio is now 1:2.5! That means, for

every $1 dollar spent on client services and research, the MS Society

spent approximately $2.50 on itself, fundraising, and political

activities.

If you break that into a single dollar, that means only 28 cents of every dollar donated was actually spent on programs and research from September to December 2009!

Here are the relevant numbers from the report:

Some may claim we can't compare these numbers because maybe the MS Society
pays a lot of money out during this particular 4-month period every year

and, once all 12 months are reported, things will even out. Fair

enough. We will wait for December 31, 2011 to make that comparison.

But look at this expense in these Tables: "Total amount of enduring
property transferred to qualified donees (excluding specified gifts of

enduring property," which has gone up to be almost 20 times the amount

normally spent in one year spent in only 4 months!

In the 12 months reported August 31, 2009, the MS Society transferred $36,450
worth of enduring property to people or corporations. In only 4 months,

reported as of December 31, 2009, that amount rose to $627,005! As far

as I could tell, "Enduring property" is inheritances and the like

received from donors. Charities are allowed to transfer these

donations to other recipients. Is there an accounting expert out there

who can clarify this? Should we ask the MS Society who these transfers

were given to and why?

Anyway, some interesting puzzles for us to ponder!

If you want to dig into the whole financial statement for yourself, go to these links:

12 months ending August 31, 2009: http://tinyurl.com/2bmmsl5

 

4 months ending December 31, 2009: http://tinyurl.com/2g5h33y

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