Planned Parenthood is a not for profit organization formed in 1961 by Margaret Sanger. The main areas of operation include provision of reproductive and complementary health care services, advocating of public policies which guarantee their rights and access to such services, education on sexuality and promote research and technologies on reproductive healthcare. It has about 107 affiliates which run 860 local healthcare centers in the USA. Apart from this, Planned Parenthood federation has worldwide operations in Latin America, Asia, and Africa. The company’s head office is in New York City and Washington DC.
Sources of funds. Planned Parenthood is a not profit organization and therefore cannot engage in any profit oriented activities. The organization therefore relies on contributions to fund its operations. These contributions come from corporations, foundation grants as well as individuals. Some of the donations received by Planned Parenthood Federation include annual gifts by individuals. This can be made to a specific purpose to the federation or the Planned Parenthood Action Fund which is the advocacy and political arm of the federation. Their gifts can also be unrestricted.
The other source of the revenue to the federation is through bequests and planned gifts. These types of donations can be in form of charitable gifts annuities, pooled income fund gifts and charitable trusts. Bequests and planned gifts ensure that the federation provides reproductive services for future generations as well providing life time payments. Direct monthly debits on the donor’s bank account or credit card also provide another source of the revenue to the federation. The donor will enjoy sustained membership on the federation. A donor can also give out stock gifts.
The donor will benefit from tax reduction because such donations are tax deductible as well as capital gains tax exempt. All these are only possible if the donor has held stock for more than one year. The deductions are subject to the prevailing legal units. The other way that the federation receives revenues is through honorary or memorial donations. These are normally done in memory and celebrations of the lives and achievements of exemplary individuals. Planned Parenthood Federation of America also receives work place donations. This is done through the combined federal campaign, united way or any other workplace program in place.
One of these programs is the matching gifts program in which the employer of the donor may double or triple the value of the donation made. The other source of revenue for the federation is through its dedicated group of committed supporters called the Planned Parenthood Leadership Council. This council is a select group of committed donors bound by their desire to see the federations’ programs succeed in the future. This group of committed supporters represent different interests, professions and expertise apart the key supporters of the national organization and affiliates.
The member of the leadership council meet once in a year apart from communicating regularly through phone calls, newsletters, emails e. t. c. They also advice the federation president and affiliates CEOs. The annual meeting serves as a learning experience on various issues as well as exchange of ideas. The minimum guaranteed contribution by members of the leadership council is $100,000 which can be made over a four year period to an affiliate, the federation or the Action Fund or combination of any of the above. Reliability of sources of funds
Since the Planned Parenthood Federation of America is a non profit organization, its main motive is to provide services without an aim of making profits. Therefore it relies on donations and gifts from members, cooperates or individuals. All these sources of revenue to the organization does not guarantee regular donations except the Planned Parenthood Leadership Council program set up by the federation. The Planned Parenthood leadership council program guarantees $100,000 minimum by each member of the council receivable up to four years to any affiliate, Planned Parenthood Federation or Planned Parenthood Action Fund.
The tax incentives offered to the charitable contributions may also tempt some individuals to contribute to the federation. Charitable contributions by way of stock to the federation are tax deductible in full at the fair market value. Any capital gains for shares held for over one year is also exempt from capital gains tax. The workplace donation received by the organizations could also guarantee regular reliable revenues. This is done through the combined federal campaign, united way e. t. c.
The employers may also double or triple match any contribution made by their employees to the federation. This provides an avenue for extra revenues to the organization. The direct debits from the accounts or credit cards of donors also provides another reliable source of funds as long as the donor is willing to contribute . The Federation is able to access regular donation in this way. The diverse nature in which the Planned Parenthood Federation of America organization seeks revenues also ensures that they can get funding from any sources.
The effect of this is that the organization is in a position to continue with its operations with minimal disruptions. There has been controversies generated by the federation contributions and cooperate contributions. Some individuals or groups not interested with the operations of the federation have been calling for the stoppage of such donations to the federation. Financial Accountability. The company has about 107 affiliates operating 860 local health centers apart from operations and corporations worldwide.
Managing the funding of such a large number of operations requires sound financial accountability. The company makes a list of all the contributions all it has made. These contributions can be to affiliates or its worldwide partners. The list of the contributions made is available to the public on request for scrutiny. Despite its status as a not for profit organization which is exempt from tax ,the Internal Revenue Service (IRS) requires that such companies file their annual returns detailing the various revenues and how those revenues are utilized.
This requirement also provides action as required to deter fraudulent expenses or distributions by the company. The fact that the organization is required to prepare its annual report is enough evidence that there is financial accountability. Although the financial reports are not that detailed, the various donors can be able to understand where there monies are being put into. Questions donor would ask As a donor to any charitable organization, it is wise that donors seek answers on some of the issues about how their contributions are being utilized.
Some of these questions include the following; I would want to know how the money will be spent in terms of specific programs that would be funded, and how funding that project will change the life of the beneficiar4y. The donations made to the company can be in specific or unrestricted forms. If unrestricted, the organization would have to explain what are the possible ways that the donations could be used? The importance of the project to be funded is also critical. The projects viability in terms of benefits to the intended beficiaries would also part of my questions.
The resources should only be used for beneficial projects. Apart from these questions, I would also ask about the past success of similar projects i. e. what similar past projects have been successfully undertaken and if they fail, what were the causes of the failures? Conclusion The organizations should be able to expand its revenue base because it is not profit oriented hence ensure consistence service provision. The sources of funds should also be reliable to enable constant revenue inflows thus minimal disruptions of the operations.
The organization should also set up accountability measures to ensure funds are not misused but spent on the appropriate projects which will lead to better services. References. About Planned Parenthood Federation (2008) Annual Report for 2007. Available, Accessed on 30th November 2008. http://www. plannedparenthood. org/files/AR_2007_vFinal. pdf Planned Parenthood donors & Grants to other Pro-Abortion Groups. Available, Retrieved on 30th November 2008 http://www. dianedew. com/PPfundg. htm