CharityWatch REPORT
Issued September 2017

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)
According to the Habitat for Humanity International (Habitat) consolidated audit of June 30, 2016 (Note 16, Affiliate Programs):

"International and U.S. national organizations and affiliates are independent, not-for-profit groups that are approved by regional, area, or national offices of Habitat and operate under an affiliation agreement with Habitat. All affiliates are encouraged to be self-supporting in their fund-raising efforts; however, Habitat also solicits contributions, both cash and in-kind, on behalf of its affiliates. While Habitat retains variance power in these contributions, the organization has transferred cash and donated assets totaling $104,154,637 and $120,050,959 in 2016 and 2015, respectively, to international and U.S. national organizations and affiliates.

"Some affiliates in developing countries, where severely limited resources constrain local fund-raising, receive the majority of their funding from Habitat. All U.S. affiliates are expected to contribute a portion of their unrestricted cash contributions to support Habitat work outside their own country. These contributions totaled $13,799,339 and $13,626,112 in 2016 and 2015, respectively."
According to the Habitat for Humanity International tax filing for the fiscal year-ended June 30, 2016, Habitat received contributed in-kind goods during fiscal 2016 on which it placed a value of $35,391,901, of which $32,100,092 is described as "housing building material" (IRS Form 990 Schedule M).

According to the Habitat for Humanity International consolidated audit of June 30, 2016, Habitat received contributed Public Service Announcements (PSAs) during fiscal 2016 on which it placed a value of $1,344,474. In addition, Habitat reports receiving $813,005 worth of "...certain other contributed services that require specialized skills..." (Note 2, Contributed Goods and 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 Habitat for Humanity International consolidated audit of June 30, 2016 (Note 19, Subsidiary and Related Entities' Statements of Financial Position and Statements of Activities):

"On July 15, 2011, MicroBuild was formed. Habitat is a 51% owner of MicroBuild. The purpose of MicroBuild is to make loans to qualified micro-finance institutions for the purpose of lending to housing projects in impoverished communities.

"On March 25, 2011, MicroBuild India was formed. Habitat is a 50.97% owner of MicroBuild India. The purpose of MicroBuild India is to make loans to qualified micro-finance institutions for the purpose of lending to housing projects in impoverished communities."


Also according to the Habitat fiscal 2016 consolidated audit (Note 9, Notes Payable):

"On June 22, 2012, MicroBuild...entered into a $45,000,000 limited liability loan agreement with OPIC, an agency of the United States. MicroBuild's three equity investors must match the remaining $5,000,000 for this $50,000,000 project. Additionally, Habitat must provide $5,000,000 in guarantor letters of credit. These funds are then lent to microfinance institutions in various countries around the world. At June 30, 2016, all of these commitments had been met by the three equity members, and the full amount had been drawn down from OPIC.

"Additionally, on May 18, 2016, MicroBuild entered into a second $45,000,000 loan agreement with OPIC. One new investor was added. MicroBuild's equity members have committed to contribute the remaining $5,000,000 for this $50,000,000 project. As of June 30, 2016, no contributed capital had been provided under this agreement and no loan amounts had been advanced by OPIC."

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