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.

Note(s)
CharityWatch's rating of Covenant House & Affiliates includes the financial activities of the entities included in the Covenant House audited consolidated financial statements for the fiscal year ended June 30, 2017.

According to the Covenant House fiscal 2017 consolidated audit (Note 1, Organization and Tax Status):

"Covenant House (Parent) is the sole member of the following not-for-profit affiliates:"

(1) Covenant House Alaska; (2) Covenant House California; (3) Covenant House Chicago; (4) Covenant House Connecticut; (5) Covenant House Florida; (6) Covenant House Georgia; (7) Covenant House Holdings, LLC; (8) Covenant House Illinois; (9) Covenant House Michigan; (10) Covenant House Missouri; (11) Covenant House New Jersey; (12) Covenant House New Orleans; (13) Covenant House Pennsylvania/Under 21; (14) Covenant House Testamentum; (15) Covenant House Texas; (16) Covenant House Washington D.C.; (17) Covenant House Western Avenue; (18) Rights of Passage, Inc.; (19) Under 21 Boston, Inc.; (20) Under 21 Covenant House New York; (21) 268 West 44th Corporation.

"Covenant House (Parent) is also the sole member of Covenant International Foundation ('CIF'), a not-for-profit corporation. Covenant House (Parent), together with CIF, represent the controlling interest of the following active international not-for-profit affiliates:"

(1) Casa Alianza de Honduras; (2) Asociacion La Alianza (Guatemala); (3) Casa Alianza Internacional; (4) Casa Alianza Nicaragua; (5) Covenant House Toronto; (6) Covenant House Vancouver; (7) Fundacion Casa Alianza Mexico, I.A.P.

"Covenant House (Parent) is the founder of Fundacion Casa Alianza Mexico, I.A.P."

[...]

"On March 19, 2016, the California Affiliate's Board of Directors authorized the affiliate to enter into a Letter of Intent to merge Covenant House California 'CHCA' with another not-for-profit organization, YEAH!. YEAH!'s mission is consistent with that of CHCA... YEAH! is a lower barrier access point for youth to transition from the street into the affiliate's Oakland program. On June 26, 2017, the merger was finalized and all of YEAH!'s assets were transferred to CHCA."


Whenever practicable, CharityWatch obtains audited consolidated financial statements that include all of the entities of a charitable organization. Such an audit eliminates transactions among related entities, and allows us to determine how efficiently an organization is operating on the whole.

For more information on this topic, please see our section on Treatment of Related Organizations, which can be found by clicking on "Criteria & Methodology" from the "About Us" navigation header.
According to the Covenant House International (CHI) tax filing for the fiscal year ended June 30, 2017, CHI reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

"Pursuant to the term[s] and conditions stipulated in Joan Smyth's separation agreement, CHI paid severance payment in the amount of $45,400 in 2016. This payment was treated as taxable compensation to the recipient."


CHI reports Joan Smyth as "Former SVP of Direct Marketing," with total compensation of $197,485 in calendar year 2016 (IRS Form 990, Schedule J, Part II).

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