The Importance of Fiscal Efficiency and Transparency
As is the case in most child abuse and neglect situations, the most dangerous tools abusers have are ignorance and secrecy. Secrecy is also a danger when it comes to charitable giving and nonprofit agencies. Lack of information and transparency to donors can allow for misappropriation and inefficient use of resources. It is the policy of Realities For Children to not only offer the highest possible level of efficiency when it comes to donor dollars but also to offer the highest level of transparency in how those dollars are used.
How does Realities For Children Charities realize 100% of donations?
The only way to do this would be to have no overhead or administrative costs. This is highly unusual for a sustainable organization as there will always be overhead expenses to maintain and run a nonprofit organization. Realities For Children Charities, however, is both sustainable and has no administrative expenses taken from donor contributions. This is what makes this organization unique and has gained national attention and awards for fiscal responsibility.
How is it possible for a sustainable charity to have no expenses?
Imagine if a local business leader decided he really liked a particular charity and said “I want to see more of every donation going directly to the services they provide.” He contacts the director of the charity and said, “I have the ability to take from the dollars my company earns and cover all the administrative costs of your nonprofit.” In doing so all administrative and overhead costs would be covered privately. So that this charity could then put 100% of donor dollars directly toward its mission and services because of this private partnership with a local business owner.
This is the simplified story of how Realities For Children Charities is able to cover all administrative expenses. The difference is that the business that underwrites all administrative costs was actually created specifically for that purpose and is called Realities For Children, Inc.- which is a cooperative of local business leaders in Larimer County that come together specifically to provide underwriting support to Realities For Children Charities.
Is Realities For Children two different organizations?
Yes! The first entity is Realities For Children Inc., a cause marketing membership organization comprised of approximately 270 local businesses. These Business Members pay monthly membership dues, and it is understood that these fees underwrite the administrative expenses for Realities For Children Charities. Our Business Members do receive marketing support from us, so these membership fees are not tax-deductible donations but tax-deductible advertising expenses.
The second entity is Realities For Children Charities, a charitable organization where all tax-deductible donations and fundraising returns are directed. Realities For Children Charities is designed to provide: Emergency Services, Monthly Youth Activities, Private Facilities Space for youth programs, needed Item Distributions and special programs focused on breaking the cycle of abuse.
What is the tax status of Realities For Children Charities?
Realities For Children Charities is a 501(c)3 charitable organization as determined by the Internal Revenue Service. Contributions to Realities For Children Charities are deductible, and RFCC is also qualified to receive tax-deductible bequests, devices, transfers, or gifts. Click here to view our IRS Tax Determination Letter.
Your donation is tax-deductible, and every penny provides direct services for children in need. Furthermore, your donations do not simply serve one agency’s mission but are accessible to all of our Partner Youth Agencies in Northern Colorado.
What is the tax status of Realities For Children, Inc.?
Realities For Children Inc. is a Colorado nonprofit corporation, however, it is not an IRC Section 501(c)3 organization. As a result, membership fees are considered a deductible advertising business expense and cannot be claimed as a charitable donation. Furthermore, to honor the intent of the entity’s purpose, RFC has voluntarily legally subjected itself to the limitation of not allowing any private party to benefit from the net income or assets upon dissolution.
These Business Members cover all of the charity's administrative costs through their advertising dollars. This support allows us to realize that 100% of donor dollars directly benefit children and families in need.
Click Here to view our 2023 Annual Report
Click Here to view the 2023 Secretary of State Charitable Organization Summary
Click Here to view our 2023 990 Summary and Statement of Functional Expense
Transparency:
Just as important as efficiency, is transparency- so that whether you are a donor, a business member, an event attendee or community donor all information is accessible and clear. The entire design of Realities For Children is about collaboration and can only exist and serve effectively with community support.
Thank you for your interest in helping us to see a community united so that no child in need is forgotten. If you have further questions we welcome your call anytime. Please call 970-484-9090 x 104 to speak with or set a personal meeting with Executive Director - Craig Secher.