CharityWatch is unable to provide a complete rating of Plan International USA (Plan USA) due to how the organization is structured. Plan USA is the United States member organization of Plan International, Inc. (PII), which is a non-profit, international organization comprised of about 20 member national organizations (NOs) around the world. PII's Global Hub is primarily located in the United Kingdom, and the organization's combined financial statements (which include the financial activities of PII and its member NOs) are presented in Euros and are based on International Financial Reporting Standards (IFRS). For this reason, PII's financial statements are not comparable to those of U.S. based organizations whose statements are based on U.S. Generally Accepted Accounting Principles (GAAP).
Plan USA essentially functions as a fundraising arm for Plan International, Inc. For this reason, CharityWatch is able to provide a Cost to Raise $100 fundraising ratio for Plan USA, but not a Program %.
Plan USA spent a reasonable $14 to raise each $100 in public support during its fiscal year ended 06/30/2021.
Plan USA's tax filing (IRS Form 990) for the fiscal year ended 06/30/2021 reports that the organization spent approximately $45.2 million, or about 75%, of its $60.1 million budget on programs that year. However, approximately $33.7 million, or about 74%, of that program spending consisted of program support granted to Plan International, Inc., according to IRS Form 990, Schedule R, Part V and Plan's fiscal 2021 audited Statement of Functional Expenses.
CharityWatch's methodology is not designed to measure how efficiently one entity of a charity grants funds to one of its related organizations. For this reason, CharityWatch does not believe it is fair to publish a Program % for Plan USA alongside those of other charities that conduct their own programs and/or primarily make grants to other, independent charities. CharityWatch's inability to provide a complete rating of Plan USA is strictly due to how the organization is structured, and not due to its unwillingness to provide information or answer our questions. Plan USA's interest in transparency has been apparent in its past communications with CharityWatch about its finances. In order for CharityWatch to be able to rate Plan International in the future, we would require consolidated or combined financial statements, expressed in U.S. dollars and based on U.S. GAAP, that include all of Plan International's related entities. Such statements would eliminate inter-organizational related party transactions, as well as provide a comprehensive view of how the organization both raises and spends public dollars on the whole. This information may not currently be practicable for Plan International to provide given that its national headquarters is based in the U.K., not in the U.S. Additionally, CharityWatch has calculated that Plan USA received cash grants or contributions from government sources within the range of 25% to 49% of its total cash revenue in fiscal year 2021. (This calculation of government funding is done for informational purposes for donors. Donors should keep in mind that funding from the government does not automatically signal that a charity is well-governed and/or more efficient than other charities.)
|
According to the Plan International USA (Plan) audit of June 30, 2021 (Note 1 re: Gifts-in-kind), Plan received in-kind contributions in fiscal 2021 on which it placed a total value of $3,492,544. [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 on the Our Process page.] |
According to the Plan International USA (Plan) audit of June 30, 2021 (Note 1 re: Revenue Recognition): "On April 21, 2020, Plan received loan proceeds in the amount of $2,441,075 under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Stability Act ('CARES Act'). The loan and accrued interest are forgivable after twenty-four weeks if the borrower uses loan proceeds for eligible expenses. Plan has determined to account for this loan as a conditional contribution, similar to other cost reimbursable U.S. government grants and record revenue as conditions are met by incurring qualified expenses. Plan recorded revenue of $500,357 and $1,940,718 at June 30, 2021 and 2020, respectively, on the [audited] statements of activities based on the amount of qualified expenses incurred. As of June 11, 2021, Plan was notified that the Small Business Administration approved Plan's forgiveness application and that the loan was paid in full on Plan's behalf. "Under the provisions of the CARES Act, Plan is eligible for a refundable employee retention credit subject to certain criteria. Plan determined to account for the credit as a conditional contribution, similar to other cost reimbursable U.S. government grants and record revenue as conditions are met by incurring qualified expenses. As of June 30, 2021, Plan recorded $1,749,755 of revenue on the [audited] statements of activities based on the amount of qualified expenses incurred." |