AARP foundation is an affiliated charitable organisation of AARP and shares a common vision which states “A society in which everyone ages with dignity and purpose and in which the AARP Foundation helps people fulfil their goals and dreams. It was established in 1961 under Section 501(c)(3) of the Internal Revenue Code.
The foundation boasts a membership base of more than 35 million members and is one of the most powerful lobbying groups in Washington. The foundation is headed by Robin Talbert who is the managing director. Over the years the AARP foundation has grown from a small charitable organisation to one of the largest social service providers that serves the older population in America.
The foundation’s mission statement …show more content…
SWOT Analysis
Strengths:
AARP has successfully been able to run its charitable programmes and as a result obtained good reputation which has enable them garner grants from state entities, private companies and individuals. The foundation is able to account for the use of the funds that they receive which has been an assuring factor to donors on proper utilisation of funds.
AARP foundation has been a good employer as evidenced by the high employee satisfaction levels that have enable them achieve the Better Business Bureau’s Wise Giving Alliance’s certification criteria.
The foundation has a fund raising department that ensures that the foundation obtains adequate funds to run its programmes. They use various methods to obtain these funds such as direct solicitations to its members, maintaining close relationships with wealthy individuals, corporate and foundation grants and charitable …show more content…
Financial Analysis
Income Ratios Formula 2004 2003 Comments
Reliance ratio Largest time of income
Total income 58.88% 61.18% As much grant income increased from 2003, the increase in terms of the total revenue was lower in 2004 as compared to 2003. This ratio highlights the reliance on grant income which can pose a risk if this source of funding is stopped.
Earned income ratio Total earned income
Total income 1.2% 1.7% Organizations with high earned income have more autonomy and flexibility. As demonstrated by the figures AARP’s earned income is very low and has declined in 2004.
Self-sufficiency ratios Total earned income
Total expense 1.39% 1.87% This ratio shows the proportion of total expenses that are catered for by the earned income. This has declined from 2003.
Expense and management ratio
Admin cost ratio Total fundraising, admin and general expense
Total expense 12.06% 14.78%