2011-05-13T12:59:36-04:00 2010-06-30 KPMG LLP 440 Monticello Ave Suite 1900 Norfolk VA 235103310 990 2009-07-01 541460147 Operation Smile Inc OPER 7573217645 6435 Tidewater Drive Norfolk VA 23509 Teresa M Kraus 7573217645 2011-05-13 true 7576167000 2009 2016-02-24 21:20:13Z William P Magee Jr MD 6435 Tidewater Drive Norfolk VA 23509 45763413 false X http://www.operationsmile.org X 1987 VA OPERATION SMILE PROVIDES FREE SURGERIES AND TRAINS LOCAL DOCTORS AROUND THE WORLD TO TREAT BOTH CHILDREN AND ADULTS BORN WITH FACIAL DEFORMITIES, SUCH AS CLEFT LIP AND CLEFT PALATE. 13 10 137 5000 0 0 33081817 40497601 408292 476362 28803 927 -357263 -406333 33161649 40568557 2711177 3149653 0 0 6481631 6537499 2644250 3759508 15759894 22216119 24726446 34053177 38173106 -891528 2395451 20900806 25259253 3014413 4970950 17886393 20288303 Operation Smile is a children's medical charity with a presence in more than 60 countries dedicated to providing free treatment and surgery for those who suffer from facial deformities such as cleft lips and cleft palates. The organization works to build a sustainable healthcare infrastructure in our partner countries by training doctors to treat children in their own local communities, donating crucial medical equipment, building public-private partnerships, and creating in-country foundations to increase capacity. Operation Smile is committed to raising awareness, educating, and serving as an advocate for the cleft issue. Through partnerships, Operation Smile is conducting research to ultimately help identify the causes of clefting. By inspiring action and leadership, the organization has mobilized more than 5,000 medical volunteers in more than 75 countries and more than 700 Student Clubs around the world. Operation Smile also educates and encourages communities to spread awareness false false 13489767 938361 347801 Treatment: Operation Smile provides free, reconstructive surgery for children and young adults suffering from clefts. Treatment is delivered in some of the most remote regions of the world by international medical volunteers during medical missions. In our almost 30 year history, the organization has performed nearly 200,000 surgeries. In the last fiscal year, inclusive of activity performed in our Comprehensive Care Centers as noted in Part 4B, Operation Smile hosted 152 medical missions across 33 countries, and provided free surgery for 16,113 children and young adults and 26,611 physical examinations. Nearly 60% of those surgeries were performed by in-country local medical volunteers. Operation Smile held inaugural medical missions in 21 locations - from Tashkent, Uzbekistan and Kigali, Rwanda to Jakarta, Indonesia and Santo Domingo, Dominican Republic - during which we treated 1,969 children. For families residing within the U.S., Operation Smile offers a range of consultancy services through its U.S. Care Network. Last year, Operation Smile worked with and provided guidance for 154 U.S. Care Network cases. In addition, Operation Smile provided free surgeries for 7 children through our World Care program, which helps patients who have much more complicated disfigurements than can be treated during medical missions. Finally, while not traditionally a disaster response organization, Operation Smile's medical volunteers quickly responded when the earthquake hit Haiti in January 2010. We sent teams of plastic and orthopedic surgeons, anesthesiologists, critical care nurses and technicians to provide life-saving care. In total, Operation Smile deployed 11 teams - over 130 medical volunteers - and 25 tons of medical supplies and equipment to Haiti. Our ability to mobilize highly-trained medical professionals, equipment and supplies is a core competency as is our ability to provide high quality medical relief and surgical services. 3758731 1495105 0 Training and Building Sustainability: Operation Smile continually advances its mission to build a self-sufficient global health network for the treatment of clefts. We do this by training local doctors around the world to give them the highly-specialized skills needed to provide treatment for the back-log of children already suffering from clefts, and for those babies who are born every day with this tragic facial deformity. In addition, the organization donates crucial medical equipment; develops public/private partnerships; and creates global, in-country Foundations that strengthen local development, raise funds and awareness as well as coordinate medical missions. Operation Smile has also, via grants to our foundations, established 12 global Comprehensive Care Centers designed to provide year-round patient care and train medical volunteers to help increase in-country capacity. In addition to surgical care, the services offered in these Care Centers includes post-operative care, counseling, speech therapy, dentistry, orthodontics, nutrition as well as ongoing training and education. At the Care Centers, 5,400 patients were screened for surgery last fiscal year, and over 3,800 patients received reconstructive surgery for their facial deformities. Through partnerships with the American Heart Association, as well as leading medical and teaching institutions, medical professionals from developing countries receive medical education and training through Operation Smile-sponsored conferences, seminars, workshops and exchanges. To ensure that surgeries are performed under the safest conditions, Operation Smile certifies and trains international medical personnel in the American Heart Association's (AHA) Life Support program. As an International Training Organization (ITO) of the AHA, last fiscal year, Operation Smile awarded 4,037 AHA Life Support certifications - nearly doubling the amount awarded the previous year. Operation Smile was the first organization authorized by the AHA to function as a global and mobile ITO. In a 2010 survey of previous life support training participants, more than 85% of respondents said they had saved a life with their newfound knowledge. In addition, Operation Smile was also the first cleft organization to support the World Health Organization's Safe Surgery Saves Lives initiative which is an integral part of the organization's Global Standards of Care. Operation Smile works closely with Regional Medical Officers around the world to ensure the highest standards of care are provided to patients regardless of where treatment is delivered. Operation Smile's model and worldwide programs have seen significant growth, and as a result, the organization expanded its Medical Oversight Board this past year to increase the resources and training available for our medical volunteers, partner countries and in-country hospitals. 3599289 189455 128561 Public Education and Research: Operation Smile is dedicated to raising awareness of the life-threatening issue of clefts, as well as providing lasting solutions that allow children to be healed regardless of financial standing. Operation Smile advocates for safe surgery as a global health priority through partnerships with leading medical institutions and other non-profit organizations around the world. To research the cause of clefting, Operation Smile engages in partnerships, so we can work toward reducing the incidence of clefts. For example, Operation Smile piloted the International Family Study to examine genetic characteristics of clefts. To educate the public and global communities about the issues surrounding clefts, Operation Smile conducts ongoing communications to create a greater awareness for the global need, as well as delivers messages that provide information and guidance for families on how to prevent clefts and what steps to take when a child is born with a cleft. Operation Smile has mobilized hundreds of thousands of medical, community and student volunteers worldwide to help us educate the public about the cleft cause. More than 700 Student Clubs in over 30 countries channel their compassion and energies to help educate others while building core values of leadership and volunteerism, learning firsthand how they can create an impact in the world and help heal humanity. Going one step further, students providing educational support to children and families on nearly every Operation Smile medical mission, gaining a better understanding of global cultures and the impact one person can make in the world. 20847787 true true false false false false false false false true true false false true true true true true true false false false true true false false false false false false true false true false false false true true false false false true 39 0 true 137 true false true ET VM IT false false false true true false false false false false false 13 10 true false false false false false false true true false true true true true true true true true true true false AL AK AZ AR CA CO CT DE DC FL GA HI IL KS KY ME MD MA MI MN MS MO NH NJ NM NY ND OH OK OR PA RI SC TN UT WA WV WI X TERESA KRAUS 7573217645 6435 TIDEWATER DRIVE Norfolk VA 23509 William P Magee Jr DDS MD 40.0 X X 54247 0 90 Kathleen S Magee MSW MEd 40.0 X X 0 0 0 Felipe Encinales 1.0 X 0 0 0 Jeremy Greenhalgh 1.0 X 0 0 0 Joseph Kainz 1.0 X 0 0 0 Cindy Hensley McCain 1.0 X 0 0 0 William R Fox 25.0 X 0 0 0 Randy Sherman MD 30.0 X X 0 0 0 Donald Trump Jr 1.0 X 0 0 0 Robert James Boyd III 1.0 X 0 0 0 Gary Loh 1.0 X 0 0 0 Chai Patel MD 1.0 X 0 0 0 Alberto Motta 1.0 X 0 0 0 Melanie Tyler 40.0 X 98170 0 9357 Howard Unger 40.0 X 183769 0 12999 Jillian Stanley 40.0 X 81873 0 11742 Richard Vander Burg 40.0 X 138576 0 17597 Ellen Agler 40.0 X 276491 0 16183 Lisa Jardanhazy 40.0 X 122677 0 15651 Kyla Shawyer 40.0 X 127301 0 16711 Kristie Magee Porcaro 40.0 X 100426 0 13844 Yvonne Wray 40.0 X 96830 0 13174 Teresa Sides 40.0 X 89250 0 12643 1369610 0 139991 6 false true false Russ Reid 14384 Collections Center Drive CHICAGO IL 60693 Fundraising Counsel 2322956 Community Counseling Service 461 Fifth Avenue 3rd Floor NEW YORK NY 10017 Fundraising Counsel 196446 Mafco Italia SRL SEDE LEGALE VIA NERA N 4/8 ROME 0 IT 00199 Program Management 173134 Strategic Fundraising 2325 Momentum Place CHICAGO IL 60689 Fundraising Counsel 161580 4 232554 2746042 37519005 6729804 40497601 YOUTH CONFERENCES 611600 128561 128561 MISSION ADMISSION 624200 347801 347801 476362 37721 37721 0 0 4356997 4393791 -36794 -36794 -36794 394732 2746042 801065 -406333 -406333 0 0 0 40568557 476362 -405406 0 38172 38172 3111481 3111481 0 1083078 713939 185352 183787 193574 99276 94298 4196777 2406490 362678 1427609 277982 170392 13935 93655 386439 244319 29909 112211 399649 234504 36140 129005 0 136020 49943 63500 22577 71199 21853 36930 12416 0 3759508 3759508 6457 2066 3100 1291 1721684 1242655 82841 396188 847408 523328 29619 294461 7130645 6624537 221731 284377 81668 50868 12086 18714 0 406471 331722 24408 50341 4007695 3786268 39977 181450 0 349700 325121 9360 15219 12865 9455 989 2421 0 400439 267700 93355 39384 77636 55343 13223 9070 FUNDRAISING EXPENSES 8904133 294921 8609212 PUBLIC EDUCATION 345578 345578 OTHER MISSION EXPENSES 146699 146699 MISCELLANEOUS 80149 46078 11371 22700 38173106 20847787 1565425 15759894 X 2855900 256981 291649 2308823 7096228 7947761 5044980 5259316 2562629 3461969 191404 349574 4347114 6548582 59522 90707 4846666 3332042 1518206 1514624 72290 83048 8433 3672 20900806 25259253 3005980 4815720 0 151558 8433 3672 3014413 4970950 X 14090666 15924564 3795727 4363739 17886393 20288303 20900806 25259253 X false true true X false X 12036543 21809994 31381451 33081817 40497601 138807406 12036543 21809994 31381451 33081817 40497601 138807406 9623343 129184063 121744 234419 264909 131302 37721 790095 139597501 1892968 0.92540 0.91231 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 240555 80444 160111 362448 145594 216854 4243663 3106004 1137659 1514624 0 CHARITABLE REMAINDER ANNUITY TRUST 3672 3672 40568557 38173106 2395451 6459 -2957 3502 2398953 66955686 6459 26380670 26387129 40568557 40568557 64556733 26380670 2957 26383627 38173106 38173106 Other Reconciling Items Form 990, Schedule D, Part XI, Line 8 & Part XII, Line 2d The Operation Smile, Inc. and Affiliate Financial Statements are presented on a combined basis. The Financial Statements include the activity for Operation Smile, Inc and Operation Smile Foundation, Inc. The other reconciling item of $2,957 is the total loss reported on the Combined Statements for Operation Smile Foundation, Inc. The loss will be reported on Operation Smile Foundation, Inc's tax return. Fin 48 Audit Report Footnote Schedule D, Part XIV Effective July 1, 2009, the Company adopted the provisions of FASB ASC Topic 740, Income Taxes as it relates to uncertainties in income taxes. FASB ASC Topic 740 requires that a liability be recorded for the Company's estimate of uncertain tax positions, including a determination that income is nontaxable under the tax law. The adoption of FASB ASC Topic 740 had no impact on the financial statements. The Company has no liabilities recorded at June 30, 2010 and July 1, 2009 for unrecognized tax benefits. true Central America and the Caribbean 0 5 Program Services Medical Missions 1426372 East Asia and the Pacific 1 21 Program Services Medical Missions 3575358 Europe (Including Iceland and Greenland) 1 7 Fundraising 507057 Middle East and North Africa 0 2 Program Services Medical Missions 923077 North America 0 0 Grantmaking 137716 Russia and the Newly Independent States 0 1 Program Services Medical Missions 158856 South America 0 5 Program Services Medical Missions 1707734 South Asia 0 2 Program Services Medical Missions 2254144 Sub-Saharan Africa 1 2 Program Services Medical Missions 1355102 3 45 12045416 Cent. America/Caribbean Med Missions 183478 Wire 929 Med Supplies FMV East Asia/Pacific Med Missions 555889 Wire 959 Med Supplies FMV Europe/Iceland/Greenland Sustainability 685038 Wire none N/a Middle East/North Africa Med Missions 164924 Wire 127 none n/a North America Med Missions 73055 Wire 182 Med Supplies FMV Russia Med Missions 49896 Wire 337 Med Supplies FMV South America Med Missions 686068 Wire 1072 Med Supplies FMV South Asia Med Missions 407950 Wire none n/a Sub-Saharan Africa Med missions 254987 Wire none n/a 28 2 Fellowship Cent. America/Caribbean 1 89 Wire 0 none n/a Fellowship East Asia/Pacific 2 22000 Wire 0 none n/a Fellowship Europe/Iceland/Greenland 1 1560 Wire 0 none n/a Medical Care Cent. America/Caribbean 2 165 Wire 0 None N/A Medical Care East Asia/Pacific 1 5190 Wire 0 none n/a Medical Care South Asia 1 16311 Wire 0 None N/A Medical Care Sub-Saharan Africa 1 1275 Wire 0 None N/A Monitoring Form 990, Schedule F, Part I, Line 2 Operation Smile monitors and reviews grant requests for alignment with our programmatic goals and adherence to eligibility requirements. All grant recipients submit reports detailing the use of the grant funds. These reports are examined by Operation Smile and reviewed for timeliness, content, accuracy, and appropriate supporting documentation to substantiate the use of funds. We have ongoing communication and frequent onsite visits with our partner foundations to ensure grant requirements are being met, appropriate documentation is maintained, and to provide assistance as needed. Method Used to Account for Expenditures Form 990, Schedule F, Part I, Line 3 Accrual Method Used to Estimate Number of Recipients Form 990, Schedule F, Part III, Column (c) The majority of the grants noted on Part III related to fellowship stipends. Operation Smile reviewed the number of fellows receiving grants during the fiscal year. The remaining population was determined by reviewing the detail of assistance payments and determining each beneficiary. X X X X X X true Russ Reid Company Consults Direct Resp false 18556298 3085842 15470456 Community Counseling Service Strategic Planning false 590000 93446 496554 Strategic Fundraising Telephone Fundraising false 907325 557220 350105 Rich Fox Associates Inc Planned Giving false 0 23000 -23000 20053623 3759508 16294115 AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY NY Smile Gala 1176025 1014825 161200 88046 161850 45387 9526 LA Gala 631564 548416 83148 29352 89840 91426 3534 25 1333185 1182801 150384 4905 96213 101929 63220 15837 3140774 2746042 394732 4905 213611 353619 200033 28897 801065 -406333 true Fellowship 1 6318 0 N/A NONE Med care/therapy to children w/facial deformities 2 31854 0 N/A NONE Monitoring Form 990, Schedule I, Part 1, Line 2 Operation Smile monitors and reviews grant requests for alignment with our programmatic goals and adherence to eligibility requirements. All grant recipients submit reports detailing the use of the grant funds. These reports are examined by Operation Smile and reviewed for content, accuracy, and supporting documentation to substantiate the use of the funds. We have ongoing communication with grant recipients to ensure grant requirements are being met and appropriate documentation is maintained. Number of Recipients Form 990, Schedule I, Part III(b) Operation smile determined the number of recipients by reviewing the detail of assistance payments and determining each beneficiary. X X true true X X false false false false false false false true false Richard Vander Burg 138576 0 0 0 0 0 13095 0 4501 0 156172 0 0 0 Ellen Agler 128273 0 148218 0 0 0 11681 0 4501 0 292673 0 0 0 Howard Unger 183769 0 0 0 0 0 9000 0 3999 0 196768 0 0 0 Personal Residence Form 990, Schedule J, Part I, Line 1a Payments for business use of personal residence include payments to vendors for the business use of home office related expenses for William P. Magee, Jr., Director and CEO. These expenses were included as part of an accountable plan. This was not treated as taxable compensation to William P. Magee, Jr. Non-fixed Payments Schedule J, Part I, Line 7 Operation Smile, Inc. paid an employee for housing expenses related to relocation. This was reported on Part II, in column (B)(ii). First Class Travel Schedule J, Part I, Question 1a Operation Smile, Inc. policy allows for upgrades to business or first class air travel for CEO, President, COO, CMO, Board of Director's Chairman, and Board of Director's President. Upgradeable fares may only be purchased if travel is more than 5 hours domestically, business class fares for more than 8 hours internationally for these positions only. When possible, upgrades are paid for with airline points. These upgrades were not treated as taxable compensation to the recipients. James Fox Son of Director 12102 Employment false Kristie Magee Porcaro Daughter of CEO/President 116540 Employment false Suzanne Unger Daughter of COO 64932 Employment false X 16 196349 Fair Market Value X 87 6533456 Cost 2 false true false Officer Relationships FORM 990, Part VI, Line 2 WILLIAM P. MAGEE, JR., DIRECTOR AND CEO, IS THE SPOUSE OF KATHLEEN S. MAGEE, DIRECTOR and President. KRISTIE MAGEE PORCARO, THE MAGEE'S DAUGHTER, IS AN EMPLOYEE OF OPERATION SMILE, INC. 990 Review Form 990, Part VI, Line 11A After completion of the 990 by Operation Smile Finance Department, with assistance from KPMG, the completed 990 will be forwarded to the Audit Committee and the Board of Directors. Carl Treleaven, Chairman of the Audit Committee, will review the 990 and supporting documentation. All comments will be addressed by the Finance Department prior to final submission to the IRS. Conflict of Interest Form 990, Part VI, Line 12c Annually, the conflict of interest reporting is reviewed by the Board. Additionally, routinely, the Board requests all conflicts of interest to be disclosed and/or updated. The organization has an extensive Conflict of Interest policy that requires any officer, director, or employee with a conflict or potential conflict of interest to disclose all relevant information. Compensation Review Form 990, Part VI, Line 15 During the current tax year, some of the Officers were working with Operation Smile as Volunteers. Compensation for top management officials and other key employees was determined by comparing similar positions with comparable duties at other organizations and reviewing the history of compensation for that position at Operation Smile. There was independent Board approval for the compensation of these employees, as noted in the minutes of the directors meetings. Document Availability Form 990, Part VI, Line 19 Governing documents, conflict of interest policy and financial statements are made available at Operation Smile International Headquarters, 6435 Tidewater Drive, Norfolk, VA 23509. Additionally, financial statements are also available on our website and the GuideStar website: www.operationsmile.org and www2.guidestar.org. Fundraising Form 990, Schedule G, Part I Operation Smile has an agreement with Russ Reid Company related to consultation services for our Direct Response fundraising campaign. For the fiscal year ending 6/30/2010 payments for amounts paid and retained by fundraiser were $3,085,842. Operation Smile had an agreement with Strategic Fundraising to provide telefundraising services and donor development for existing donor cultivation, donor acquisition and lapsed donor reactivation. For the fiscal year ending 6/30/2010 payments for amounts paid and retained by fundraiser were $557,220. Operation Smile had an agreement with Community Counseling Service to provide strategic planning services for an in-house fundraising campaign. For the fiscal year ending 6/30/2010 payments for amounts paid and retained by fundraiser were $93,446. Operation Smile had an agreement with Rich Fox & Associates, Inc. related to consultation services for our planned giving donor cultivation campaign. For the fiscal year ending 6/30/2010 payments for amounts paid and retained by fundraiser were $23,000. Statement of Functional Expenses Part IX, Line 26 Operation Smile completed a line count of direct mail pieces from the current year. The percentage that related to education and management and general expenses was applied to the cost of the direct mail piece to determine the related dollar value. Student Programs Part III, Other Operation Smile worked to provide education and leadership development opportunities throughout our student programs. As these students grow and study, they carry with then the commitment to help others. They also know, and have seen firsthand, that they have the power to change the world. In additional to supporting thousands of international students from more than 600 student clubs, Operation Smile hosts an annual International Student Leadership Conference at a different university around the world. In 2009, more than 400 students representing 15 countries came to Christopher Newport University in Virginia. This four-day annual conference helps students develop and strengthen leadership skills and character, receive training on how to help those in developing countries, as well as learn cultural awareness, share experiences, and discover the importance of "giving back." Further, Operation Smile sends two volunteer student leaders and a student sponsor on each international medical mission to help education children and families about burn care prevention, oral rehydration therapy, nutrition and dental hygiene. These experiences impart a firsthand appreciation for our work in the field and forge lifelong commitment to our cause. 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