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.

Note(s)
CharityWatch's rating of One Acre Fund includes the financial activities of its U.S. entity based in Illinois. It also includes the financial activities of its foreign entities that are consolidated in its audited financial statements for the year-ended December 31, 2015. These entities are: One Acre Stichting (Netherlands); One Acre UK Limited (United Kingdom); One Acre Uganda, Ltd.; and One Acre Fund, a trust/charity in Malawi.
According to the One Acre Fund consolidated audit of December 31, 2015 (Note 12, Concentration of Funding Sources):

"The Organization receives a major portion of its revenues from private foundation grants. The level of services available in the future could be substantially impacted if the Organization were to lose a major grant."
According to the One Acre Fund consolidated audit of December 31, 2015 (Note 13, Concentration of Foreign Operations Risk):

"Contributions are raised globally, with a majority within the U.S. The nature of the Organizations' [sic] program activities is to supply agricultural inputs, training, and credit in foreign countries. While foreign operations risk is somewhat diversified across countries, and is actively managed by the Organization, it remains reasonably possible that operations outside the U.S. could be disrupted due to political, economic, or natural events, impacting the normal functioning of these programs. The Organization has assets outside the U.S. with a carrying value of $28,583,049 primarily across four countries in East Africa, with the largest concentration in Kenya which contains $12,305,054 of the Organization's assets."
According to the One Acre Fund consolidated audit of December 31, 2015 (Note 7, Conditional Grants Receivable):

"The Organization has grant agreements with several donors and foundations that consist of providing conditional funding in future years. A corresponding grants receivable has not been recorded on the consolidated statements of financial position as the conditional grants are contingent upon incurring qualifying expenditures and fulfilling milestones. Conditional promises to give are recognized when the conditions on which they depend upon are substantially met. Conditional grants receivable amount to $45,456,729 and $13,259,092 as of December 31, 2015 and 2014, respectively."

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