In recent days the Union Rescue Mission – Little Rock, AR was reported by www.mainstreet.com to be one of the worst charities in America based on the 2007-2008 IRS 990 filing. Their report reflected 62% of the expenses for the mission to be Administrative according to the 990 filing. While this percentage is correctly stated by GuideStar.org, it is important to understand what that percentage reflects.
The Union Rescue Mission purchased two properties between 5-9 years ago and booked the properties on our balance sheet based on certified appraisals at the time of purchase. Years later prudent management of the mission saw the need to sell these facilities to re-focus our attention on our mission statement to create an environment where the love and compassion of Jesus Christ can help people overcome and prevent life’s adversities. Both of these facilities sold in 2008 at a down turn in the commercial real estate here in Central Arkansas. The difference between the booked assets and the sale of these assets had to be declared on the IRS 990 filing as a loss and reported as “depreciation, depletion, etc” on line 42 of the filing. These costs are considered according to generally accepted accounting principles as an “administrative expenses.”
While it is most disturbing to have reported the write down in asset loss for the 2007-08 IRS 990 filing year, we are committed to accurately reporting our financial position according to generally accepted accounting principles and maintaining integrity in all areas of our mission operation. Though URM posted a significant loss for that fiscal year, the mission programming did not suffer as we sought to reach the last, least and loss in Central Arkansas.
When I came to the Union Rescue Mission as Executive Director four years ago, I did so because I strongly believe in the ministry of the Mission and desired to see the Mission serve her community with integrity. I am most committed to the stewardship of all resources given by God’s people in the support of this ministry. In the 2007-08 IRS 990 filing year 9.27% of our expenses were salary and benefit related. If one were to factor out the asset write down due to the charging market values of the properties that were sold 31% of our expenses were salary and benefit related.
The Union Rescue Mission – Little Rock, AR has experienced some of her strongest years of ministry operation over the past two years serving in excess of 173,000 meals and averaging 189 men, women and children per night in our facilities. Our 2008-09 IRS 990 filing which has yet to be posted on GUDIESTAR is summarized below and open for public inspection:
Total Revenue: $782,552.00
Total Expenses: $695,349.00
Net Revenue: $ 87,203.00
The Union Rescue Mission today stands stronger than she has in her 64 year history. As the needs of our community continue to seep to the surface, we are committed to addressing the many faces of those hungry, hurting and homeless for whom desperation is a day-to-day experience. We acknowledge our gratefulness of those who sacrificially give to the ministry and are committed to utilize those resources with the deepest integrity practicing Godly biblical stewardship.
Changing Lives…Strengthening Communities,
Dr. William D. Tollett
Executive Director
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