CharityWatch REPORT
Issued January 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.

In April 2017, CharityWatch revised our rating of Human Rights First (HRF) based on its fiscal year-ended 12/31/15, which was originally issued in January 2017. The revision is based on HRF's communication with CharityWatch and the HRF amended IRS Form 990 filing, dated 3/28/17, which reports on Schedule O:

"Amended Form 990 reports a correction to joint costs erroneously reported on Form 990 as originally filed. Upon subsequent review, Human Rights First determined that the joint costs were reported in error, as the Organization did not engage in activity (e.g., direct mail, telemarketing, etc.) during the year that both solicited contributions and included a call for a specific action by the audience to help accomplish the Organization's mission."

[The April 2017 revision changes CharityWatch's original rating for Human Rights First based on 12/31/15 from a "B" to an "A" Grade and removes the adjustment for Joint Costs.]
According to the Human Rights First audit of December 31, 2015 (Note 1(b), Nature of Organization):

"...the Organization has a deficit in unrestricted net assets in the amount of $3,387,773 at December 31, 2015 and recurring losses of $2,636,357 and $4,027,108 for the years ended December, 2015 and 2014, respectively. The Organization funded these losses with its cash reserves. Management has formulated plans to strengthen the financial position of the Organization going forward by pursuing new or expanded funding initiatives, implementing various reductions in operating costs and capital expenditures, and streamlining activities."
According to the Human Rights First audit of December 31, 2015 (Note 12), HRF reports receiving in-kind contributed services valued at $46,517,621 in 2015.

[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 Human Rights First (HRF) 2015 tax filing, HRF reports for Business Transactions Involving Interested Persons a transaction in the amount of $124,440 involving a Vice Chair on the Board of Directors, with the description: "Facilities cost at Pier Sixty for annual fundraiser" (IRS Form 990 Schedule L, Part IV).

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