Charity Review

Issued: February 2020 Expires: February 2022

Houston Ballet Foundation

Accredited Charity
Meets Standards
 
601 Preston St, Houston TX 77002-1605
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
  8. BBB Comment
Conclusions

Houston Ballet Foundation meets the 20 Standards for Charity Accountability.

Purpose

 

To inspire a lasting love and appreciation for dance through artistic excellence, exhilarating performances, innovative choreography and superb educational programs.  

In furtherance of our mission, we are committed to maintaining and enhancing our status as:

•A classically trained company with a diverse repertory whose range includes the classics as well as contemporary works.

•A company that attracts the world’s best dancers and choreographers and provides them with an environment where they can thrive and further develop the art form.

•An international company that is accessible to broad and growing local, national, and international audiences.

•A company with a world-class Academy that provides first rate instruction for professional dancers and meaningful programs for non-professional dancers.

•A company with state of the art facilities for performances, rehearsals, and ongoing operations.


 

Incorporated: 1955 in TX

Programs

 

Houston Ballet has evolved into a company of 61 dancers with a budget of $34.6 million, making it the fifth largest ballet company in the United States. Moreover, Houston Ballet has the largest dancing facility in the nation- the $46.6 million Center for Dance, which opened in April 2011 and operates two major programs: The Houston Ballet Company and The Houston Ballet Ben Stevenson Academy.

During the 2018-2019 season, Houston Ballet's performances, education programs, volunteer efforts and special events impacted the lives of more than 360,000 individuals. During the 2018-2019 season, Houston Ballet gave a total of 112 performances—77 of those at the Wortham Theater Center, 35 on other stages including one performance at the Woodlands Pavilion, three performances at Miller Outdoor Theater and 31 performances on tour across various national and international stages.

In the 2018-2019 season, Houston Ballet's education and community engagement (ECE) programming reached 74,614 Houston-area students and adults through 18 different community-sponsored programs such as Adapted Dance, Chance to Dance, Dance for Parkinson's, Ballet Talks, Teacher Workshops, and many more. Moreover, ECE programs gave students from 389 schools, libraries, community centers, hospitals and detention centers an opportunity to see a full ballet production, hear from the dancers and experience their first dance class through free or heavily discounted programs.

The Houston Ballet Academy enrollment has soared and the school is firmly positioned as a top international training center providing instruction to more than 1,000 students year-round and in summer intensive programs. The Center for Dance has allowed the Houston Ballet to grow their academy by 60% since they opened the new facility.

Houston Ballet’s global presence is enhanced by dynamic online content on a variety of platforms. Houston Ballet has 136,436 Facebook followers, 190,833 Instagram followers and 30, 129 Twitter followers. Over 714,000 minutes of footage has been viewed globally on the Houston Ballet YouTube Channel and over 862,000 minutes of streamed Facebook videos have been viewed globally. 

Each season, more than 1,000 volunteers contribute in excess of 10,000 hours to assist Houston Ballet in delivering on its mission.

 

Governance & Staff

Board Chair: Ms. S. Shawn Stephens, Community Volunteer Business Affiliation: Community Volunteer

Board Chair/CEO: Mrs. Allison Thacker, Chief Investment Officer & President Business Affiliation: Rice Management Company

CEO: Mr. Stanton Welch, Artistic Director

CEO: Mr. James Nelson, Executive Director

Board Size: 109

Staff: 216

 
Board attendance and participation is tracked for all Board meetings and are reviewed annually by the Trustee Development Committee. The percentage of Trustees holding subscriptions is also tracked and reported to the Trustee Development Committee. Trustee giving is evaluated against annual goals and discussed with Houston Ballet Senior Leadership Team, the Executive Committee and the Trustee Development Committee.
 
 

Fund Raising
Method(s) used: Direct Mail Appeals Telephone Appeals Invitations to Fundraising Events Print Advertisements (Newspapers, Magazines, etc.) Television Appeals Radio Appeals Grant Proposals Internet Appeals Planned Giving Arrangements Cause-Related Marketing Membership Appeals Appeals via Social Media (Facebook, etc.) Other

% of Related Contributions on Fundraising: 22.82%

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on Houston Ballet Foundation's Audited Financial Statements for the fiscal year ending Sunday, June 30, 2019.

Source of Funds
Performance $9,469,351
Tuition $4,365,764
Special events $11,987,882
Investments $1,732,533
Other $1,371,974
Public and Private Support Contributions $7,720,774
Total Income: $36,648,278
 
Fusion Chart
 
Program Expenses: $28,549,544
Fundraising Expenses: $7,653,498
Administrative Expenses: $2,147,688
Total Expenses: $38,350,730
 
Income in Excess of Expenses: ($1,702,452)
 
Beginning Net Assets: $134,725,048
Ending Net Assets: $134,633,592
Total Liabilities: $7,643,239
Total Assets: $142,276,831

BBB Comment

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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This report is not to be used for fund raising or promotional purposes.

Standards Legend

  • Meets Standards IconMeets Standards
  • Standards Not Met IconStandards Not Met
  • Did Not Disclose IconDid Not Disclose
  • Review in Progress IconReview in Progress
  • Unable to Verify IconUnable to Verify
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Standard 1: Board Oversight


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, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

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Standard 2: Board Size


Description:

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

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Standard 3: Board Meetings


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.

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Standard 4: Board Compensation


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.

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Standard 5: Conflict of Interest


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.

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Standard 6: Effectiveness Policy


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.

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Standard 7: Effectiveness Report


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.

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Standard 8: Program Expenses


Description:

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

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Standard 9: Fund Raising Expenses


Description:

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

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Standard 10: Accumulating Funds


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.

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Standard 11: Audit Report


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 $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, 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.

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Standard 12: Detailed Expense Breakdown


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, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

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Standard 13: Accurate Expense Reporting


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 fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

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Standard 14: Budget Plan


Description:

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

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Standard 15: Truthful Materials


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.

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Standard 16: Annual Report


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, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

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Standard 17: Website Disclosures


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.

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Standard 18: Donor Privacy


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.

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Standard 19: Cause Marketing Disclosures


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).

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Standard 20: Complaints


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 fund raising practices, privacy policy violations and/or other issues.