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 HealthRight International Consolidated Audit of December 31 2014 (Note 11, "Affiliation Agreement"):|
"The Organization entered into an affiliation agreement (the "Agreement") with New York University ("NYU"), an unrelated not-for-profit education corporation in February, 2014.
The Agreement creates an affiliation between the Organization and NYU faculty and students' opportunities for applied research, expanded curriculum, and enhanced in-service learning in the field of global public health. The Organization will benefit from the Affiliation by securing its U.S. operations, and gaining the involvement of specialists and researchers in its programs, with the Organization's belief that the presence of an operating global non-governmental, non-profit organization on a university campus is an innovative, exciting and cost-effective approach which offers both parties to this agreement expanded opportunities to accomplish their independent but complementary missions...
The Affiliation revolves around seven (7) key elements, all working toward a common goal of building lasting access to health for excluded communities. These elements are based on the foundational element that both NYU and the Organization will remain as separate, independent organizations. Those elements include:
a) Co-location (includes a one year lease commitment for the Organization to pay NYU $10,000 for use of certain of its facilities for office space and other administrative services. The agreement allows for the option to renew these arrangements through 2017 at annual rentals of $7,500, $5,000 and $2,500 (respectively)
b) Shared expertise among NYU faculty and HealthRight staff
c) Student Engagement
d) Curricular opportunities
g) HealthRight Executive Director"
|According to the HealthRight International Consolidated Audit of December 31, 2014 (Note 8, Notes Payable to Related Parties):|
"In 2011, the Organization obtained unsecured non-interest bearing loans from members of the Board. During 2014 and 2013, the members agreed to contribute 25% of the existing loan balance, and amend the repayment schedule of each member's note, with the remaining principal balance to be paid equally on December 31, 2015 and 2016."
|CharityWatch's rating of HealthRight International includes the financial activities of the organizations included in its Consolidated Audit of December 31, 2014. Per Note 1 of the Organization's audit:|
"Ukrainian Foundation for Public Health ("Ukrainian Foundation"), a wholly owned subsidiary [of Healthright International], facilitates related efforts to improve health and support services for vulnerable populations for the purpose of resource mobilization for developing, supporting, and providing charitable care and support to vulnerable and at-risk population groups, including, but not limited to, women, children, youth, and families in a difficult life situation through access to social, psychological, pedagogical and other types of services in order to enhance their medical, psychosocial, or material condition and to gain equal opportunities for development and participation in society. Ukrainian Foundation is a charitable organization incorporated by HealthRight in Ukraine and is regulated by the Constitution of Ukraine and the Law of Ukraine on charity and charitable organizations."
Per Note 2 of the Consolidated Audit:
"The consolidated financial statements include the accounts of HealthRight International, Inc. and Ukrainian Foundation...All significant intercompany balances and transactions are eliminated."
Whenever practicable, CharityWatch obtains consolidated audited financial statements that include all of the entities of a charity. Such an audit eliminates related party transactions among related groups, 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 on the Criteria & Methodology tab under the "About Us" navigation header.