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Important Response from BGCA National Regarding Recent Press Statements

Posted March 12, 2010

Statement from Boys & Girls Clubs of America

In relation to a Congressional review of a proposed federal appropriation for Boys & Girls Clubs of America, a request was received by BGCA for information about BGCA's operational policies and expenditures. The organization will, with full transparency, comply with this request.

Following are the facts on several issues raised in news articles that have appeared today (March 12).

1. CEO Compensation

The article erroneously refers to our CEO's "$1 million" salary. Roxanne Spillett has served on the professional staff of Boys & Girls Clubs of America for 32 years. For 2008, Roxanne's W-2 base salary totaled $360,774. (Her base salary has not changed since 2006). In addition, she received a non-guaranteed (at-risk), board-authorized incentive based on performance of $150,000; this incentive is not guaranteed each year, as it is contingent on overall performance achievements of the President/CEO. Her employment package also included benefits, expenses and contributions to deferred retirement plans (not current income -- to be paid in the future) which totaled $477,817. The total compensation is determined by BGCA's Board of Governors, through the Human Resources Committee, which works with an independent firm, Mercer, to assess the marketplace thoroughly to determine comparable salary practices, "peer comparison" compensation data, and other related trends in the not-for-profit sector. Mercer has reviewed the total cash compensation and executive benefits for Roxanne and found that it was consistent with prevailing and current market practices of similarly-situated national nonprofit organizations, and therefore, reasonable. None of her compensation or expenses are charged to any federal awards.

2. Travel and Meeting Expenses

The travel expense figures cited in the article state that they apply to organization "officials," when in fact this figure applies to travel of the more than 350 national staff, who make thousands of visits to local Clubs, providing consulting and technical support year-round. This number also includes any travel expenses Boys & Girls Clubs of America incurs for local organizations to participate in Advanced Leadership Programs and other trainings/conferences.

Similarly, the article quotes figures for conferences, conventions and meetings, but fails to explain that these figures cover all BGCA-sponsored events, which include all staff training and development activities, as well as the National Conference, Keystone Conference, youth development conferences, regional conferences, area councils and state alliance meetings which provide critical tools and resources to local organizations.

3. Lobbying Fees

The lobbying expense cited includes fees for outside consultants for state and federal lobbying and are well within established guidelines for non-profit organizations.

4. Use of Federal Funds

Since the advent of federal funds coming to BGCA in 1996, we have fully complied with all government rules, regulations and requirements pertaining to this funding, including the annual A-133 Audit for Use of Federal Funds. During those years, we have passed through millions to local Clubs to open thousands of new Clubs and serve more children in need. All budgets are fully vetted, reviewed and approved by the respective federal agencies. For example, for the grant awarded to Boys & Girls Clubs of America from Office of Justice Prevention in 2008, almost 92 percent of the funds awarded were passed through to local Clubs.

Background on BGCA

For more than 100 years, Boys & Girls Clubs of America ( www.bgca.org ) has enabled young people, especially those who need Clubs most, to reach their full potential as productive, caring, responsible citizens. Today, more than 4,000 Boys & Girls Clubs serve more than 4 million young people through Club membership and community outreach. The number of Clubs and the breadth of youth served, as well as the revenue generated in support of Boys & Girls Clubs, has doubled in scope during Roxanne Spillett's 14-year tenure as President/CEO.

Boys & Girls Clubs are found throughout the country and on U.S. military installations worldwide, providing young people 6-18 years old with guidance-oriented character development programs conducted by some 54,000 trained, professional staff. Some 200,000 board and youth development volunteers provide vital financial and program support. Key programs emphasize leadership development; education and career exploration; community service; technology training; financial literacy; health and life skills; the arts; sports, fitness and recreation; and family outreach. In a Harris Survey of alumni, 57 percent said the Club saved their lives. National headquarters are located in Atlanta.