A Review of the AKC's 2005 Financial Statement

http://www.akc.org/about/annual_report/2005/financial.html

Interesting observations by John Van den Bergh

• The AKC is NOT a 501(c)(3) charity, but a "Social Welfare" organization under chapter 501(c)(4) of the IRS code, just like a volunteer fire department, airport or home owners association. A 501(c)(4) is a tax exempt non-profit organization.
• 46% of the AKC's expenses are in payroll and employee benefits (page 2). In other words, they don't pay profits to shareholders, but to their top employees.
• Employees have accumulated $61 million in future pension benefits (page 8).
• The AKC had a net profit of $14 million in 2005, down $5 million from 2004 (page 4).
• Only 2.6% of their revenue goes to the Canine Health Foundation (page 10).
• What is not provided in their annual report is how much is spent on Education. The "Education" costs are lumped in with "Public Relations" (page 10).