A Review of the AKC's 2005 Financial Statement

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).