CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.
|CharityWatch's rating of American Refugee Committee (ARC) includes the financial activities of the ARC subsidiaries, WikiRelief, Questscope, LTD., and Questscope, which are included in the ARC audited consolidated financial statements for the fiscal year-ended 3/31/2017. (All material intercompany accounts and transactions are eliminated in consolidation.)|
According to Note 1 of the ARC consolidated audit:
"... The international headquarters [of ARC], based in Minneapolis, Minnesota, supports medical relief and settlement programs which, during the two years ending March 31, 2017 and 2016 operated in Liberia, Rwanda, Somalia, Uganda, Sudan, South Sudan, Pakistan, Thailand, Democratic Republic of Congo, Syria, Jordan and Myanmar.
"ARC became the sole member of Questscope, LTD. and Questscope (a UK charity) and entered into a parent/subsidiary relationship effective April 1, 2015... Questscope, LTD. is a nonprofit organization with registration in the United States. Questscope is a UK registered charity under the United Kingdom Articles of Charitable Companies. Questscope is also legally registered to conduct business in the Heshimite Kingdom of Jordan...
"Based upon the fact that ARC, as the sole member, has controlling interest of the boards of Questscope, LTD. and Questscope, the financial results for Questscope, LTD. and Questscope as of and for the years ending March 31, 2017 and 2016 are included in the accompanying [audited] consolidated financial statements...
"WikiRelief, LLC was established in April 2013 as a wholly owned subsidiary of ARC. The organization is developing a web-based emergency relief tool to enable coordination by worldwide relief organizations. Financial activity of WikiRelief, which is immaterial to these [audited] financial statements, is included with ARC."
|According to the American Refugee Committee (ARC) consolidated audit of March 31, 2017 (Note 10, Contingencies, Foreign operations):|
"ARC and subsidiaries provide capital assistance, technical assistance and training in numerous developing countries through its field offices in each of those countries. The future results of those programs could be adversely affected by a number of potential factors, such as currency devaluations or changes in the political climate. As of March 31, 2017 and 2016, ARC had cash, property and equipment and prepaid expenses in various countries in Africa, Middle East and Asia, totaling approximately $5,800,000 and $4,400,000 in each year, which represented approximately 17% and 18%, respectively, of ARC's total assets."