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 Grameen Foundation USA also includes the financial activities of TaroWorks, LLC, as well as the financial activities from November 1, 2016 through March 31, 2017 of Freedom from Hunger.|
The accounts of TaroWorks and Freedom from Hunger are included the audited consolidated financial statements of Grameen Foundation USA for the fiscal year ended March 31, 2017. According to Note 1 of the consolidated audit:
"TaroWorks, LLC...is a U.S. corporation that provides an advanced mobile data platform to enhance data collection, monitoring, sales and inventory management in the field. The mission is to improve product and service delivery to the poor by bringing real-time data to any organization, anywhere. It is wholly owned by Grameen Foundation USA."
"Freedom from Hunger is a U.S. non-profit organization. ...[I]t brings self-help solutions to combat chronic hunger and poverty globally by offering microfinance, education and health protection services to millions of women and their families. On October 21, 2016, Freedom from Hunger entered into an Asset Transfer Agreement with Grameen Foundation USA in order to advance the organizations' shared missions. On November 1, 2016, the organizations came under common control. The value of net assets transferred to Grameen Foundation USA totaled $2,879,987 out of a total net assets of $2,936,414. ...Freedom from Hunger's [IRC Section 509(a)(3)] supporting organization status was approved by the Internal Revenue Service on March, 1, 2017. As a supporting organization, Freedom from Hunger is organized and operated exclusively for the benefit of, to perform the functions of, and to carry out the purposes of Grameen Foundation USA and designates."
[See the "Donor Alerts & Articles / Media" tab (above) for a link to the October 25, 2016 press release announcing Grameen Foundation USA's merger with Freedom from Hunger.]
Although the accounts of Grameen Foundation India Private Limited (GFI) are consolidated in the Grameen Foundation USA fiscal year-end 2017 audited financial statements, the financial activities of GFI are not included in CharityWatch's rating of Grameen Foundation USA. GFI is registered in India and is a for-profit, wholly-owned subsidiary of Grameen Foundation USA.
|According to the Grameen Foundation USA consolidated audit of March 31, 2017 (Note 10, In-Kind Contributions):|
In fiscal 2017, Grameen received total in-kind contributions on which it placed a value of $2,583,697, and which included "professional services from Grameen's Bankers without Borders program and other advertising and professional services."
[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
|According to the Grameen Foundation USA (GFUSA) tax filing for the fiscal year ended March 31, 2017, GFUSA reports for Supplemental Information re: Compensation (IRS Form 990, Schedule J, Part III):|
"Patricia Devereux received a severance payment of $11,536" in the calendar year 2016.
GFUSA reports that Patrica Devereux was "VP External Affairs" until September 2016, and she received total compensation of $126,431 in 2016 (IRS Form 990, Part VII).
|According to the Grameen Foundation USA consolidated audit of March 31, 2017 (Note 9, Future Funding of the Affiliates):|
"As of March 31, 2017, GFI [Grameen Foundation India Private Limited] has an unrestricted net asset balance of $148,912, comprised of ($2,041,260) in cumulative losses from operations offset by $2,190,172 in capital investments by Grameen Foundation USA. Failure to obtain additional unrestricted revenue may affect GFI's future activities. Grameen Foundation USA is committed to continuing to invest resources in GFI because of its social mission to ensure it can meet its obligations. The [audited] consolidated financial statements do not include any adjustment that might be necessary if GFI is unable to continue as a going concern."
"As of March 31, 2017, TaroWorks has a deficit in net assets totaling $142,824. Failure to obtain additional revenue may affect its future activities. However, Grameen Foundation USA is committed to investing resources in TaroWorks to support its social mission. The [audited] consolidated financial statements do not include any adjustment that might be necessary if TaroWorks is unable to continue as a going concern."
[Note: As referenced above in a separate Analysts' Note, Grameen Foundation India Private Limited is a for-profit entity. Although its accounts are consolidated in the Grameen Foundation USA audited financial statements for fiscal 2017, Grameen Foundation India's financial activities are not included in CharityWatch's rating of Grameen Foundation USA.]
|According to the Grameen Foundation USA consolidated audit of March 31, 2017 (Note 15, Related Party Transactions):|
"During the year ended March 31, 2017, Grameen Foundation USA received $125,000 from Grameen-Jameel Pan-Arab Microfinance Limited, a joint-venture providing microfinance services in the Middle East, in which Grameen Foundation USA owns 50%. As of March 31, 2017, receivables totaled $175,000 with allowances for uncollectible account balances of $175,000. As of October 2, 2017, Grameen Foundation USA and Grameen Jameel terminated the joint venture."
"In August 2010, Grameen Foundation USA incorporated GFI [Grameen Foundation India Private Limited], a for profit wholly-owned subsidiary in India. As of March 31, 2017, the investment totaled $2,190,044. During the year ended March 31, 2017, Grameen Foundation USA paid fees to GFI for professional services in India totaling $491,667."
|According to the Grameen Foundation USA consolidated audit of March 31, 2017 (Note 16, Return of Unspent Grant Funds):|
"In 2011, Grameen Foundation USA entered into an agreement with the Bill and Melinda Gates Foundation, for support of the MoTech project. During 2017, Grameen Foundation USA agreed to transfer $224,504 of unspent funds to a project partner, Dimagi, Inc, for completion of the project..."