CharityWatch REPORT
Issued August 2018

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 Rainforest Alliance (RA) includes the financial activities of the RA "branches and affiliates in various countries" included in the RA consolidated audit for the fiscal year-ended June 30, 2017.

According to the RA fiscal 2017 consolidated audit (Note 1, Organization and Nature of Activities):

"Rainforest Alliance...is an international non-profit organization, organized in 1987 in the State of New York with branches and affiliates in various countries. ... All the activities of its branches and affiliates are included in these [audited] consolidated financial statements. RA conducts the majority of its activities throughout North America, Central America, South America, Africa, Europe and Southeast Asia."
According to the Rainforest Alliance (RA) consolidated audit of June 30, 2017 (Note 12, Subsequent Events):

"In July 2017 RA and the Sustainable Agriculture Network ('SAN') entered into an agreement whereby SAN would transfer the operations of the RA-SAN certification scheme to RA, along with related intellectual property licenses, in exchange for a payment of $2,000,000 over two years."

"RA and UTZ [a leading certification program for coffee, cocoa, tea, and hazelnuts] entered into a letter of intent on June 1, 2017 whereby the parties set forth terms for the exploration of a potential business combination. RA and UTZ are currently completing due diligence and in negotiations on the final combination agreement and related closing documents..."


According to "Q&A On The Rainforest Alliance-UTZ Merger" from the Rainforest Alliance website:

"The Rainforest Alliance and UTZ (a leading certification program for coffee, cocoa, tea, and hazelnuts) formally merged on January 9, 2018! The new organization carries forward the Rainforest Alliance name."

[...]

"All the board members from both organizations have joined the new board, and there are two main offices, in Amsterdam and New York. The name of the organization is the Rainforest Alliance and the CEO is Han de Groot from UTZ."

[...]

"Han de Groot, the Executive Director of UTZ, has taken on the role of CEO of the Rainforest Alliance. Nigel Sizer, the President of the Rainforest Alliance, is now the Chief Program Officer, directing the new organization's advocacy, landscapes, and livelihood programs. The new Rainforest Alliance continues to operate as a nongovernmental organization and a not-for-profit."

[For links to the full Q&A article and additional news re: the Rainforest Alliance - UTZ merger, click on the "Donor Alerts & Articles / Media" tab (above).]
According to the Rainforest Alliance (RA) consolidated audit of June 30, 2017 (Note 5, In-Kind Contributions), RA received in-kind contributions during fiscal 2017 on which it placed a total value of $1,197,827. These in-kind contributions are described as consisting primarily of legal services, advertising, and annual gala services.

[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".]

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