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.
|CharityWatch's rating of Population Services International (PSI) includes "the accounts of PSI and its network members worldwide...where PSI has control in the form of majority voting interest in the Board of Directors, management of the leadership position or a majority source of funding," which are consolidated in the PSI audited financial statements for the fiscal year ended December 31, 2016, according to Note 2(b). The worldwide network members consolidated in the PSI audited financial statements operated in 48 countries in 2016, according to Note 2(b).|
Whenever practicable, CharityWatch obtains consolidated or combined audited financial statements that include all of the entities of a charity. Such an audit eliminates transactions among related entities 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 under "Criteria & Methodology" from the "About Us" navigation header.
|According to the Population Services International (PSI) 2016 tax filing re: Part VI, Section A, Line 5, which asks: "Did the organization become aware during the year of a significant diversion of the organization's assets?":|
"During 2016, PSI became aware of significant diversions of assets totaling $822,151 in different instances across various countries, which included $543,626 of theft by third parties and $278,525 of diversions involving PSI employees. PSI operates in challenging operating environments and while PSI implements necessary controls and security to secure the assets under our control in these instances conflicts in the operating countries meant we were unable to secure the assets against looting and theft. PSI also has established internal controls to guard against internal diversions of assets, but in 2016 there were instances where controls were overridden and losses occurred. For all instances reported, PSI performed investigations to determine the extent of the issue, reported the value to any funders whose activities were impacted by the diversions, ensured that funds were returned from other sources, and identified improvements to internal controls to reduce the risk of similar occurrences in the future" (IRS Form 990, Schedule O).
[Note: PSI also reported a significant diversion of assets on its tax filing for each year from 2012-2015.]
|According to the Population Services International (PSI) consolidated audit of December 31, 2016 (Note 2(t), In-Kind Contributions), PSI reports receiving "donated commodities, equipment, and services" on which it placed a total value of $58,121,949 in 2016.|
[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 Population Services International (PSI) 2016 tax filing, PSI reports for Compensation Information:|
"Incentive Compensation Policy:
The Organization maintains an incentive compensation policy as a means of rewarding employees in their achieving individual and organizational goals" (IRS Form 990, Schedule J, Part III).
PSI reports re: Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees compensated more than $100,000 in 2016, "Bonus & incentive compensation" paid to 15 employees. Of those 15 employees, nine are reported to have received "Bonus & incentive compensation" in the amount of $8,000 or less in 2016. The remaining six employees are reported to have received "Bonus & incentive compensation" in an amount ranging from $18,000 to $41,000, as part of reported total compensation amounts that range from $337,948 to $476,056 in 2016 (IRS Form 990, Schedule J, Part II).
PSI also reports for Compensation Information: "Peter Clancy received a severance payment of $221,888" (IRS Form 990, Schedule J, Part III). Peter Clancy is reported as the Executive Vice President & COO, and his reported total compensation in 2016 is $476,056 (IRS Form 990, Schedule J, Part II).