Where Does Aspca Money Go? At money-central.com, we’re dedicated to providing clear, insightful information about financial matters, and that includes understanding how charitable donations are utilized. The American Society for the Prevention of Cruelty to Animals (ASPCA) is a prominent animal welfare organization, and it’s natural to wonder how they allocate the funds they receive to maximize their impact. We’ll examine the ASPCA’s financial reports, programs, and initiatives to uncover where your donations are truly making a difference. Understanding how the ASPCA uses its funds can help donors make informed decisions and ensure their contributions are used effectively to support animal welfare with animal rescue, animal protection, and animal care.
1. What Is the ASPCA’s Mission and How Is It Funded?
The ASPCA, founded in 1866, has a clear mission: to prevent animal cruelty throughout the United States. According to their mission statement, the ASPCA aims “to provide effective means for the prevention of cruelty to animals throughout the United States.” This involves a wide range of activities, from rescuing animals to advocating for stronger animal protection laws.
Funding Sources for the ASPCA
The ASPCA’s funding primarily comes from individual donations, grants, and corporate sponsorships. These funds enable the ASPCA to carry out its various programs and initiatives.
- Individual Donations: A significant portion of the ASPCA’s funding comes from individual donors who are moved by their campaigns and outreach efforts.
- Grants: The ASPCA also receives grants from various foundations and organizations that support animal welfare.
- Corporate Sponsorships: Some corporations partner with the ASPCA to support their mission through sponsorships and other forms of financial assistance.
How the ASPCA Raises Funds
The ASPCA employs several fundraising strategies, including direct mail campaigns, telemarketing, online advertising, and partnerships with celebrities. Their emotive commercials, often featuring images of animals in distress, are particularly effective at generating donations.
- Direct Mail Campaigns: Sending out letters and brochures to potential donors.
- Telemarketing: Making phone calls to solicit donations.
- Online Advertising: Using digital platforms to reach a broader audience and encourage online donations.
- Celebrity Endorsements: Partnering with well-known figures to raise awareness and donations.
The ASPCA’s iconic commercials featuring Sarah McLachlan have been instrumental in driving donations.
Growth in Revenue
Following the debut of these commercials more than a decade ago, the ASPCA’s revenues tripled, climbing from $85 million in 2007 to nearly $280 million in 2019, solidifying its position as one of the nation’s leading animal welfare charities.
2. How Does the ASPCA Allocate Its Funds?
The ASPCA allocates its funds across various programs and services aimed at fulfilling its mission. According to their 2019 tax forms, a significant portion of each donation goes directly toward helping animals in need.
Breakdown of Spending
According to the ASPCA’s 2019 tax forms, here’s how each $19 donation was allocated:
- $7.75 went toward hands-on help with animals across the country.
- $6.88 was spent on public education, communication, policy, response, and engagement.
- $3.65 went toward membership development and other kinds of fundraising.
- $0.75 was spent on management.
Key Program Areas
The ASPCA focuses on several key program areas, including:
- Animal Relocation: Transporting animals from areas with overcrowded shelters to locations where they have a better chance of being adopted.
- Advocacy: Lobbying for stronger animal protection laws and policies.
- Training: Providing training and resources to local animal shelters and rescue organizations.
- Legislative Services: Working to pass legislation that protects animals.
- Veterinary Services: Offering medical care and spay/neuter services to animals in need.
Spending on Fundraising vs. Programs
While the ASPCA dedicates a significant portion of its funds to programs, a substantial amount is also spent on fundraising activities. This has raised questions about whether the balance between program spending and fundraising is optimal. Since 2008, the ASPCA has raised more than $2 billion for animal welfare, spending $146 million (about 7% of the total) in grants to local animal welfare groups. However, during that same period, it spent at least $421 million on fundraising.
3. What Criticisms Has the ASPCA Faced Regarding Its Spending?
Despite its significant contributions to animal welfare, the ASPCA has faced criticism regarding its spending practices. Concerns have been raised about the high salaries of top executives, the amount spent on fundraising, and the relatively small percentage of funds that go to local animal shelters.
Executive Compensation
In 2019, the ASPCA’s CEO, Matt Bershadker, made more than $840,000, which is higher than the CEOs of Feeding America and the American Red Cross, charities with budgets ten times the size of the ASPCA. While the ASPCA defends its executive compensation practices, some critics argue that these salaries are excessive and could be better used to support animal welfare programs.
Fundraising Costs
A significant portion of the ASPCA’s budget is allocated to fundraising activities. In some years, the amount spent on fundraising has exceeded the amount spent on direct animal care. Critics argue that these high fundraising costs reduce the amount of money available for programs that directly benefit animals.
Grants to Local Shelters
While the ASPCA provides grants to local animal shelters and rescue organizations, some argue that the amount is insufficient. Many local SPCAs across the country receive no funding from the national ASPCA, despite the perception that donations to the ASPCA support local efforts.
Gary Rogers, president of the Nassau County SPCA, notes that his organization receives no funding from the national ASPCA.
Building Net Assets
In 2019, more than $28 million of the total money raised was not reflected in spending that year. The ASPCA has been building up its net assets, going from just under $62 million in net assets in 2000 to over $340 million in 2019. While the ASPCA says $192 million of the current net assets is properly held in reserve for 9-months operating expenses, in case of emergencies, and the remaining $148 million is tied up in fixed assets, restricted donations, and multiyear pledges, some critics question the need for such large reserves.
4. What Is the Relationship Between the ASPCA and Local SPCAs?
It’s a common misconception that the ASPCA is an umbrella organization for local SPCAs across the country. In reality, the ASPCA is a national organization that operates independently of local SPCAs.
No Affiliation
Most local SPCAs are not affiliated with the national ASPCA. This means that donations to the ASPCA do not automatically go to support local animal shelters and rescue organizations.
Confusion Among Donors
The similar names and missions of the national ASPCA and local SPCAs often lead to confusion among donors. Many people assume that their donations to the ASPCA will benefit local animal welfare efforts, but this is not always the case.
Challenges for Local SPCAs
Local SPCAs often face challenges in raising funds because of the perception that the national ASPCA provides them with financial support. This can make it difficult for local organizations to provide essential services to animals in their communities.
Jo Sullivan, chief community and development officer at the Houston SPCA, notes that a bulk of their time is spent trying to explain the difference between national and local organizations.
5. What Does Charity Navigator Say About the ASPCA?
Charity Navigator, a nonprofit watchdog organization, provides ratings and information about charities to help donors make informed decisions.
Overall Rating
Charity Navigator gives the ASPCA three out of four stars overall, which is a “good” rating. This means that the ASPCA meets or exceeds industry standards and performs as well or better than most charities in that cause.
Financial Rating
However, Charity Navigator only gave the ASPCA two out of four stars for its financials based on efficiency of fundraising, the percentage of revenue spent on fundraising, and the practice of selling donor lists.
Donor List Sales
The ASPCA has been known to sell or rent its donor lists, which is a common practice among nonprofits. However, Charity Navigator deducts points for this practice, as it can be seen as a breach of donor privacy. Between 2009 and 2019, the ASPCA made more than $3.2 million selling donor lists.
6. What Are the ASPCA’s Responses to These Criticisms?
The ASPCA has responded to these criticisms by emphasizing its commitment to transparency and accountability. The organization maintains that it is dedicated to using its resources effectively to support animal welfare.
Statement from the ASPCA
The ASPCA provided the following statement in response to questions about its spending practices:
“For more than 155 years, the ASPCA has been steadfastly dedicated to our mission ‘to provide effective means for the prevention of cruelty to animals throughout the United States.’ All of our work, including collaborations with local animal welfare organizations, rescue groups, law enforcement agencies, policy makers, and many others, is aimed at rescuing, protecting, and caring for animals in need. The causes and effects of animal cruelty are complex, requiring us to employ a wide range of strategies to meet these multifaceted challenges. As documented in our latest available filings and audited financial statements, 77 cents of every dollar reported as an expenditure on the ASPCA’s 2019 Form 990 advances the ASPCA’s mission through lifesaving programs and services around the country. Any characterization that suggests all of our work is not in service of our mission is wrong and an injustice to our staff, donors, the organizations we partner with, and the animals we serve.”
Defense of Executive Compensation
The ASPCA defends its executive compensation practices by stating that its CEO’s salary is evaluated and benchmarked every year by an outside consultant. The organization maintains that its compensation policies are fully consistent with IRS regulations regarding “reasonable compensation” for nonprofits.
Explanation of Fundraising Costs
The ASPCA explains that its fundraising costs are necessary to reach a broad audience and generate the donations needed to support its programs. The organization argues that its fundraising efforts are effective at raising awareness and generating the funds needed to make a significant impact on animal welfare.
Justification of Net Assets
The ASPCA justifies its accumulation of net assets by stating that these funds are held in reserve for emergencies and to support long-term projects. The organization maintains that its reserves are necessary to ensure that it can continue to provide essential services to animals in need, even in times of financial uncertainty.
7. How Can Donors Ensure Their Money Is Used Effectively?
If you’re considering donating to the ASPCA or any other animal welfare organization, there are several steps you can take to ensure that your money is used effectively.
Research the Organization
Before making a donation, take the time to research the organization and understand its mission, programs, and financial practices. Look for information on the organization’s website, as well as on independent charity rating sites like Charity Navigator and GuideStar.
Understand the Allocation of Funds
Review the organization’s financial statements to see how it allocates its funds. Pay attention to the percentage of funds that go to program expenses, fundraising costs, and administrative expenses.
Consider Local Organizations
If you want to support animal welfare efforts in your local community, consider donating directly to local animal shelters and rescue organizations. These organizations often rely on local support to provide essential services to animals in need.
Ask Questions
Don’t hesitate to ask the organization questions about its programs and financial practices. A reputable organization should be transparent and willing to provide you with the information you need to make an informed decision.
Restrict Your Donation
When making a donation, you may be able to restrict its use to a specific program or purpose. This can help ensure that your money is used in a way that aligns with your values and priorities.
8. Case Studies of ASPCA Initiatives
To further illustrate where ASPCA money goes, let’s look at some specific initiatives and programs they support.
Animal Rescue and Disaster Relief
The ASPCA is often involved in large-scale animal rescue operations, particularly in response to natural disasters. They deploy teams to affected areas to rescue animals, provide medical care, and transport them to safety. For example, after Hurricane Harvey in 2017, the ASPCA assisted in rescuing and caring for thousands of animals in Texas.
The ASPCA’s Field Investigations and Response team is often deployed to assist in animal rescue operations during natural disasters.
Legislative Advocacy
The ASPCA actively lobbies for stronger animal protection laws at the local, state, and federal levels. They work to pass legislation that addresses issues such as animal fighting, puppy mills, and the humane treatment of farm animals. Their advocacy efforts have contributed to the passage of numerous animal protection laws across the country.
Spay/Neuter Programs
The ASPCA operates spay/neuter programs aimed at reducing pet overpopulation and preventing animal suffering. These programs provide low-cost or free spay/neuter services to pet owners, helping to control the number of unwanted animals that end up in shelters.
Adoption Services
The ASPCA facilitates animal adoptions through its adoption centers and partnerships with local shelters. They work to find loving homes for animals in need, providing adoption counseling and support to ensure successful placements.
9. Examining the ASPCA’s Financial Transparency
Financial transparency is crucial for any nonprofit organization. It allows donors and the public to understand how funds are being used and whether the organization is operating efficiently and ethically.
Annual Reports and Tax Filings
The ASPCA publishes annual reports and makes its tax filings (Form 990) available to the public. These documents provide detailed information about the organization’s finances, including its revenues, expenses, assets, and liabilities.
Audited Financial Statements
The ASPCA’s financial statements are audited by an independent accounting firm. This provides assurance that the financial information is accurate and reliable.
Transparency on the Website
The ASPCA’s website includes a section dedicated to financial information. This section provides access to annual reports, tax filings, and other relevant documents.
Areas for Improvement
While the ASPCA provides a good deal of financial information, there are areas where it could improve its transparency. For example, providing more detailed information about the allocation of fundraising expenses and the criteria used to determine executive compensation could enhance donor confidence.
10. Alternative Animal Welfare Organizations to Consider
If you’re looking to support animal welfare but have concerns about the ASPCA’s spending practices, there are many other reputable organizations to consider.
Local Animal Shelters and Rescue Groups
Donating to local animal shelters and rescue groups is a great way to support animal welfare efforts in your community. These organizations often rely on local support to provide essential services to animals in need.
American Humane
American Humane is another national animal welfare organization that focuses on protecting children and animals. They have a long history of working to prevent cruelty and promote humane treatment.
The Humane Society of the United States (HSUS)
The HSUS is a large animal protection organization that works to combat animal cruelty and promote animal welfare through advocacy, education, and direct care programs.
Best Friends Animal Society
Best Friends Animal Society operates the nation’s largest no-kill sanctuary for animals and works to end the killing of animals in shelters across the country.
World Animal Protection
World Animal Protection is an international organization that works to protect animals from cruelty and exploitation around the world.
FAQ About ASPCA Finances
Here are some frequently asked questions about the ASPCA’s finances:
1. How much of my donation actually goes to helping animals?
The ASPCA states that 77 cents of every dollar goes toward its mission of rescuing, protecting, and caring for animals.
2. Why does the ASPCA spend so much on fundraising?
Fundraising is necessary to reach a broad audience and generate the donations needed to support the ASPCA’s programs.
3. Does the ASPCA fund local animal shelters?
The ASPCA provides grants to some local animal shelters, but many local SPCAs do not receive funding from the national organization.
4. How is the ASPCA’s CEO compensated?
The ASPCA’s CEO compensation is evaluated and benchmarked every year by an outside consultant.
5. What are the ASPCA’s net assets used for?
The ASPCA’s net assets are held in reserve for emergencies and to support long-term projects.
6. Is the ASPCA affiliated with local SPCAs?
No, the ASPCA is a national organization that operates independently of local SPCAs.
7. How can I be sure my donation is used effectively?
Research the organization, understand the allocation of funds, consider local organizations, ask questions, and restrict your donation if possible.
8. What does Charity Navigator say about the ASPCA?
Charity Navigator gives the ASPCA three out of four stars overall, but only two out of four stars for its financials.
9. Does the ASPCA sell its donor lists?
Yes, the ASPCA has been known to sell or rent its donor lists.
10. Are there alternative animal welfare organizations I can support?
Yes, there are many other reputable animal welfare organizations to consider, including local animal shelters, American Humane, The Humane Society of the United States, Best Friends Animal Society, and World Animal Protection.
Understanding where ASPCA money goes involves looking at their mission, funding sources, and how they allocate funds. While the ASPCA faces criticisms regarding executive compensation and fundraising costs, they also engage in vital programs like animal rescue, legislative advocacy, and spay/neuter initiatives.
As a donor, it’s essential to research and understand how your contributions are used. By staying informed, you can make the best decisions to support animal welfare effectively. For more detailed insights and tools to help you manage your finances and charitable giving, visit money-central.com.
If you’re passionate about animal welfare, consider exploring resources and tools at money-central.com to make informed decisions about your donations and ensure your contributions are making a real impact. Visit our website or contact us at Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000. Website: money-central.com for personalized advice and comprehensive financial insights.
