Answering questions live on Reddit - Monday, 5/13: http://redd.it/1e91xx $6 Million of Hair Donations Unaccounted for by Locks of Love Each Year Read the full report: http://nonprofitinvestor.org/locksoflove Independent Evaluation firm Nonprofit Investor Rates Locks of Love a "SELL" for Disclosure Inadequacies. Locks of Love is the first "SELL"-rated Organization Amongst 62 Nonprofits Evaluated. Nonprofit Investor ("NPI") analysis indicates that approximately $6.0 million hair donations are unaccounted for by the charity Locks of Love ("LoL") annually. Each year, Locks of Love makes approximately 300 wigs with the 100,000 hair donations it receives. NPI is a nonprofit organization with the mission of improving philanthropic capital allocation and nonprofit effectiveness through research and analysis. Of the 62 nonprofits independently reviewed by NPI to date, 35 have received a "BUY" rating, demonstrating clear impact with a high degree of transparency. 26 nonprofits have been rated "NEUTRAL", receiving suggestions on how to improve operations or transparency. NPI's first "SELL" rating raises serious questions about Locks of Love's operations and finances.

1. SOURCES & NOTES
“According to Susan Stone, executive director of Locks of Love, the organization gets 2,000-3,000 donations a week" USA Today 12/14/2004
Because program service expenses (not including research donations) have increased 79% from 2004 to 2011, it is conservatively estimated that
Locks of Love currently receives as many donations as it received in 2004
"As much as 80 percent of the hair donated to Locks of Love ... is unusable for its wigs, the group says" New York Times, 9/6/2007
"6-10 ponytails go into one hairpiece" http://www.locksoflove.org/faq.html, accessed 5/10/13
Natural hairpieces produced in 2011 (317) provided by Locks of Love to Nonprofit Investor via email 2/8/11. This number is not publicly disclosed
in LOL annual reports or IRS filings
Retail cost of hairpiece is "between $3,500 to $6,000" http://www.locksoflove.org/faq.html, accessed 5/10/13
"Mr. Taylor sells the wigs wholesale to Locks of Love for less than $1,000" New York Times, 9/6/07
$572,997 of hair sold in 2011 indicated in IRS Form 990
Each year, Locks of Love receives...
= 1,000 hair donations
LOCKS OF
DONATED HAIR.104,000
ONLY
20%of donations
are usable
80%can’t be used:
they’re too short, too gray,
too wet, bleached, or untied.
That should still be enough to make...
2,080 HAIRPIECES
EVERY YEAR
= 40 hairpieces
ONLY 317HAIRPIECES
WERE MADE IN 2011
BUT...
THE HAIR IN EACH NATURAL
HAIRPIECE
IS WORTH $3,750
$6,038,253
...since they disclosed $573K of hair sales in 2011, there's
worth of hair donations
UNACCOUNTED FOR by LOCKS OF LOVE
THERE ARE
HAIRPIECES’ WORTH OF
HAIR DONATIONS, SO...
1,763
& X
How much is the difference worth?
Compared to the 2nd
largest organization?
If Locks of Love only needed 19
donations to make a hairpiece,
they could provide an additional
5,157more hairpieces per year.
Read the full report at
nonprofitinvestor.org
19
VS
328
DONATIONS
PER HAIRPIECE
COMPARISON
= 5 hair donations
WHAT HAPPENS TO HAIR DONATED TO LOCKS OF LOVE?
LOST LOCKS??