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 HelpMeSee audit of December 31, 2015 (Note 9, Contingency):|
"On August 31, 2011, the Organization entered into an Agreement with WonderWork, Inc. (f/k/a Surgery for The Poor, Inc., hereafter 'WonderWork'), pursuant to which WonderWork agreed to provide the Organization with fundraising services. On August 17, 2012, the Organization terminated the Agreement. On March 21, 2013, WonderWork filed a demand for arbitration claiming that the Organization owed WonderWork certain unpaid fees. The Organization filed an answer and counterclaims on May 9, 2013, in which the Organization alleged that WonderWork fraudulently induced the Organization to enter into the Agreement, breached multiple provisions of the Agreement, and violated its fiduciary duties to the Organization. Arbitration hearings are currently in process. In connection with this arbitration action, for the years ended December 31, 2015 and 2014, the Organization incurred $1,129,666 and $2,591,776 of legal fees, respectively, which are included in 'Management and General' expenses..."
|According to the HelpMeSee audit of December 31, 2015 (Note 6, Contributions):|
"For the years ended December 31, 2015 and 2014, the Organization received contributions, including outstanding pledges of $5,000,000 at December 31, 2014, from two foundations in the amount of $16,881,676 and $15,833,500, respectively, which represents 84% and 81% of the Organization's total revenue. These two foundations also have provided the Organization with a line-of-credit (See Note 3) [cited below]."
"The Organization has embarked on a campaign with HelpAge India for elimination of blindness due to cataracts in India. The Organization provides funds for the cost of the campaign. The campaign raised total contributions and pledges of $285,658, net of [currency] exchange losses of $47,983, and $1,219,770 in 2015 and 2014, respectively...The funds raised are disbursed to partners in India to perform cataract surgeries."
According to the HelpMeSee audit of December 31, 2015 (Note 3, Line-of-Credit):
"The Organization has lines-of-credit from two Foundations towards start-up costs, including the design and development of the simulator. The total amount of funds available under the lines-of-credit is $5,000,000. The lines-of-credit have an interest rate equal to .41%...As of December 31, 2015 and 2014, the Organization had drawn down $610,000, respectively of the funds available.
"The Organization incurred interest expense of $2,500 for the years ended December 31, 2015 and 2014, respectively."
|According to the HelpMeSee audit of December 31, 2015 (Note 2, Furniture, Equipment and Capital Expenses):|
"The Organization is developing a virtual reality simulator and courseware to train cataract specialist[s] in Manual Small Incision Cataract Surgery (MSICS). The design calls to achieve a level of realism that is virtually indistinguishable from live surgery performed by an experienced surgeon..."
"Research and development costs related to the design, development and production of the prototype model [of the simulator] are being expensed as incurred. Research and development costs of $5,563,489 and $4,779,579 were expensed in 2015 and 2014, respectively."