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Important information

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  This organization's purpose is, "to save children's lives and restore their bodies to the highest level of usefulness;...to conduct research into orthopaedic and burn care; and...to train physicians and medical professionals in the treatments of orthopaedic disabilities and burn injuries." This organization responded to the BBB's request for information by referring us to the national headquarters report from the Council of BBB's Wise Giving Alliance. Their report is as follows:
  
  Shriners Hospitals for Children (Shriners) does not meet the following 1 Standards for Charity Accountability.
  
  10: Avoid accumulating funds that could be used for current program activities. To meet this standard, the charitys unrestricted net assets available for use should not be more than three times the size of the past years expenses or three times the size of the current years budget, whichever is higher.
  
  Shriners does not meet this standard because according to its 2003 audited financial statements, total unrestricted net assets (after excluding $757,707,000 of land, buildings and equipment) are $6,266,520,000. This amount is greater than 11 times the total expenses ($535,834,000) for 2003. As a result, Shriners does not meet this standard.
  
  Charity Response: In response to the above evaluation conclusion, Shriners stated, in part, that: "Because Shriners Hospitals for Children do not charge their patients for services, nor do they accept payment from insurance companies nor governmental agencies, they believe that continued growth of their (board designated) endowment fund is the only assurance of continuing support for the programs. The Hospitals, at their 22 separate locations, employ over 6,000 employees who are for the most part highly trained health care professionals. Shriners Hospitals for Children must maintain financial stability and must provide the resources necessary to keep their physical plants and medical equipment up to date in order to render the best patient services. Shriners Hospitals for Children's major source of income is from bequests, the timing of which cannot be predicted. The organization cannot maintain its level of support and growth if it budgets its operation and capital expenditures based upon contributions in a given year or period. If the organization is to continue its programs or expand services to meet the future needs of its potential patient population, those purposes must be assured through the continued growth of the (board designated) endowment fund, which will provide the revenues necessary to support the hospitals."
  
  Shriners Hospitals for Children meets the remaining 15 Standards for Charity Accountability. Please note that as of the date of this report 4 out of the 20 Standards for Charity Accountability are not currently effective. As a result, these 4 Standards have not been applied in this evaluation. For additional information, please see the Implementation Guide to the Standards available on the www.give.org website.
  Direct mail, grant proposals, planned giving, print advertisements, membership, special events, and Internet appeals Fund raising costs were 6% of related contributions. (Related contributions, which totaled $286,445,000, are donations received as a result of fund raising activities.)