The July 23 issue of Automotive News reports the Carroll Shelby Children’s Foundation is not quite living up to the Better Business Bureau guidelines regarding expenses vs. grants. The BBB watchdog group says grants should equal at least 65% of a charity organization’s total expenses. The Carroll Shelby Children’s Foundation has hovered between 6.2% and 13% over the past several years.

For example, total expenses in 2005 were $286,375 (including $68,618 for the only full-time employee at the time). That year the foundation provided grants totaling $24,944. Net assets of the foundation in 2005 were $2,877,900. Guidelines state that non-profits endowed by private individuals are required to give at least 5% of their total assets to charities annually. The 2005 numbers put the Shelby foundation in the less than 1% bracket.

While all this sounds like a scandal in the making, it does not appear any impropriety has taken place. The sum of the article is that the foundation simply isn’t doling out the money at the rate it should be. Plans are in place to make the foundation outlive Carroll Shelby and to move the foundation toward a direction that is in-line with nonprofit industry standards of giving. Two additional full-time employees have been hired, and a new board of directors will meet this month for the first time.

Read more at Automotive News (subscription required).