Oversight of Operations and Staff: Standard 1

Description
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fundraising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

The organization meets this standard.

Number of Board Members: Standard 2

Description
Soliciting organizations shall have a board of directors with a minimum of five voting members.

The organization meets this standard.

Frequency and Attendance of Board Meetings: Standard 3

Description
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

The organization meets this standard.

Compensated Board Members: Standard 4

Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

The organization meets this standard.

Conflict of Interest: Standard 5

Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

The organization meets this standard.

Board Policy on Effectiveness: Standard 6

Description
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

The organization meets this standard.

Board Approval of Written Report on Effectiveness: Standard 7

Description
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

The organization meets this standard.

Program Service Expense Ratio: Standard 8

Description
Spend at least 65% of its total expenses on program activities.

The organization meets this standard.

Fundraising Expense Ratio: Standard 9

Description
Spending should be no more than 35% of related contributions on fundraising. Related contributions include donations, legacies, and other gifts received as a result of fundraising efforts.

Hawaii Theatre Center does not meet this standard because:Its CPA Reviewed Financial Statements for the fiscal year ended May 31, 2020, indicate that the organization spent $440,749 or 88.25% of its related contributions, $499,426, on fundraising expenses. (A related contribution is income received as a result of fundraising efforts.)

Ending Net Assets: Standard 10

Description
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

The organization meets this standard.

Financial Statements: Standard 11

Description
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $1 million, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $1 million, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

Hawaii Theatre Center does not meet this standard because:The organization did not conduct an audit of its financial statements for the fiscal year ended May 31, 2020, which BBB Standards require for charities with revenues exceeding $1 million.The organization does, however, have financial statements that were reviewed by a certified public accountant (CPA) and did complete an audit for the fiscal year ended May 31, 2019. A review is an accounting service providing some assurance to interested parties as to the reliability of financial data without the CPA conducting an examination in accordance with Generally Accepted Auditing Standards (GAAS).

Detailed Functional Breakdown of Expenses: Standard 12

Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fundraising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

The organization meets this standard.

Accuracy of Expenses in Financial Statements: Standard 13

Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fundraising expenses or otherwise understate the amount a charity spends on fundraising, and/or overstate the amount it spends on programs will not meet this standard.

The organization meets this standard.

Budget: Standard 14

Description
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fundraising, and administration.

The organization meets this standard.

Misleading Appeals: Standard 15

Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

The organization meets this standard.

Annual Report: Standard 16

Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.

Hawaii Theatre Center does not meet this standard because:The organization did not produce an annual report for the past fiscal year.

Web Site Disclosures: Standard 17

Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

Hawaii Theatre Center does not meet this standard because:Its website,hawaiitheatre.com, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include a link to an annual report for the 2020 fiscal year.

Privacy for Written Appeals & Internet Privacy: Standard 18

Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

The organization meets this standard.

Cause Related Marketing: Standard 19

Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

The organization meets this standard.

Complaints: Standard 20

Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fundraising practices, privacy policy violations and/or other issues.

The organization meets this standard.