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.
|According to the Elizabeth Glaser Pediatric AIDS Foundation 2016 tax filing, the Foundation reports that it became aware during the year of a significant diversion of its assets (IRS Form 990, Part VI, Section A & Schedule O):|
"In 2016, the Foundation discovered that one of its international assignees working in the Foundation's Mozambique country program misappropriated approximately $240,000 in Foundation assets. The Foundation was subsequently able to recover approximately $60,000 in misappropriated funds. The employee was immediately terminated and the Foundation is pursuing all legal means to recover the remaining funds. The fraud, which entailed falsifying vendor invoices related to employee allowances, inflating their value and then personally retaining the excess amount, was discovered by accounting staff in the Washington, DC office and was thoroughly investigated by the Foundation's certified fraud examiner and senior fraud investigation team. Immediately after the discovery and investigation of the malfeasance, the Foundation bolstered internal controls to include independent verification of the costs of the services rendered to international assignees and by compelling all international assignees to allow the Foundation to independently contact all service providers for which the assignee receives reimbursement."