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 an October 25, 2016 press release, Grameen Foundation and Freedom from Hunger announced that they are "joining forces to form a single unified global organization." The mission of the combined organization is to "Enable the poor, especially women, to create a world without poverty and hunger."|
The press release states: "Under the banner of Grameen Foundation the combined organization will be able to reach more people across the spectrum of poverty, while deepening the focus on the very poor, especially women..." The press release also notes: "As part of the integrated Grameen Foundation, the new Board of Trustees draws half of its members from each organization."
CharityWatch's rating of Grameen Foundation will not include the financial activities of Freedom from Hunger until at least the fiscal year-ended March 31, 2017 financial statements of Grameen Foundation become available to CharityWatch. Currently, Freedom from Hunger is rated separately by CharityWatch.
[See the "Donor Alerts & Articles / Media" Tab for a link to the full press release dated 10/25/16 announcing the merger.]
|According to the Grameen Foundation USA consolidated audit of March 31, 2016 (Note 9, In-Kind Contributions), the Foundation received total in-kind contributions valued at $3,748,849 in fiscal 2016, which included $370,548 of donated advertising; $434,466 of donated legal services; and $2,943,835 of donated 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 consolidated audit of March 31, 2016 (Note 15, Refund of Unspent Grant Funds):|
"In 2013, Grameen Foundation USA entered into a $97,375 agreement with a family foundation to support the opening of an office in Nigeria. Due to changes in funding priorities and results of initial pilot projects, Grameen Foundation USA decided not to open an office and returned $73,284 in unspent funds to the donor."
"In 2011, Grameen Foundation USA entered into a $4.2M agreement with a foundation to develop mobile financial tools in Uganda. At the end of the project, Grameen Foundation USA had $106,277 in funds remaining on the grant and agreed to return the unspent funds to the donor."
"In 2011, Grameen Foundation USA entered into a $67,900 agreement with a global weather organization to develop mobile weather alert tools. Grameen Foundation USA had $16,031 in funds remaining on the grant and agreed to return the unspent funds to the donor."
|According to the Grameen Foundation USA consolidated audit of March 31, 2016 (Note 14, Related Party Transactions):|
"During the years ended March 31, 2016 and 2015, Grameen Foundation USA received several payments from Grameen-Jameel Pan-Arab Microfinance Limited, a joint-venture providing microfinance services in the Middle East, in which Grameen Foundation USA owns 50%. For the years ended March 31, 2016 and 2015, the transactions totaled $200,000 under a Management and Technical Assistance Agreement (M&TA), and $3,150 and $38,601, respectively, under other arms-length agreements for technical services..."
"In August 2010, Grameen Foundation USA incorporated a wholly-owned subsidiary in India, with an initial investment of $100,000. Grameen Foundation India Private Limited is a for-profit entity that operates as a social business to improve the lives of the poor and poorest. During the years ended March 31, 2016 and 2015, additional investments of $80,000 and $650,000, respectively, were made by Grameen Foundation USA. During the years end[ed] March 31, 2016 and 2015, the investment totaled $2,607,569 and $2,527,569, respectively. During the years ended March 31, 2016 and 2015, Grameen Foundation USA also paid fees to Grameen Foundation India for professional services in India totaling $398,077 and $92,530, respectively..."
"In April 2015, Grameen Foundation USA incorporated TaroWorks LLC, a wholly-owned subsidiary in the U.S., with an initial investment of $701,075. TaroWorks mission is to provide social enterprises an non-governmental organizations working in the developing world tools to manage their field operations, staff, and business in real time."
Also according to the fiscal 2016 Grameen Foundation USA consolidated audit (Note 8, Future Funding of the Affiliate):
"As of March 31, 2016 and 2015, Grameen Foundation India Private Limited (the Affiliate) has a cumulative deficit in the reserves and surplus totaling $1,904,271 and $1,807,696, respectively. Failure to obtain additional unrestricted revenue may affect the Affiliate's future activities."
"Grameen Foundation USA is committed to continuing to invest resources in the Affiliate because of its social mission to ensure it can meet its obligations..."
Additionally, according to the Independent Auditor's Report, dated August 8, 2016 (Emphasis of Matter): "The accompanying consolidated financial statements have been prepared assuming that Grameen Foundation India Private Limited (the Affiliate) will continue as a going concern. ...[T]he Affiliate has suffered a substantial loss from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern..."
[Note: As referenced in the audit Note 14 cited above, 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 2016, given its status as a for-profit entity, Grameen Foundation India's financial activities are not included in CharityWatch's rating of Grameen Foundation USA.]