CharityWatch REPORT
Issued October 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 Samaritan's Purse includes the financial activities of the "interrelated organizations" consolidated in the Samaritan's Purse audited financial statements for the year ended December 31, 2017.

According to the Samaritan's Purse (the Ministry) 2017 consolidated audit (Note 1, Principles of Consolidation):

"The consolidated financial statements include the accounts of the Ministry and its interrelated organizations, Samaritan's Purse (Kenya), Samaritan's Purse (Sri Lanka), and Ippan Shadan Houjin Samaritan's Purse (Japan). ... All interorganization transactions and account balances are eliminated [in the audit] upon consolidation."
According to the Samaritan's Purse (the Ministry) consolidated audit of December 31, 2017, the Ministry received contributed in-kind services from volunteers on which it placed a value of approximately $13,900,000 (Note 1, Contributed Services). The Ministry also received contributed in-kind goods on which it placed a value of approximately $225,000,000 (Note 1, Contributed Goods).

In addition, Note 1 of the Samaritan's Purse 2017 consolidated audit states re: Contributed Goods:

"The Ministry receives donations of medical equipment, supplies and other materials for use in its programs. ... These donations include the receipt of individual gift boxes through the Operation Christmas Child project. This project collected approximately 8,800,000 and 9,100,000 gift boxes from individuals for the years ended December 31, 2017 and 2016, respectively. The estimated value per gift box was $22.37 for 2017 and $23.14 for 2016...

"Gifts-in-kind distributed through the Ministry amounted to approximately $215,600,000 and $230,500,000 for the years ended December 31, 2017 and 2016, respectively."


According to the Ministry's 2017 tax filing, the Ministry placed a value of approximately $207.9 million on donated "Shoebox Gifts," which represents about 92% of the total value of donated goods received by the Ministry in 2017 (IRS Form 990, Schedule M).

[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 Samaritan's Purse (the Ministry) consolidated audit of December 31, 2017 (Note 7, Related-Party Transactions):

"The Chief Executive Officer, President, and Chairman of the Ministry serves as Chief Executive Officer, President, and Chairman of Billy Graham Evangelistic Association. Billy Graham Evangelistic Association is controlled by an independent Board of Directors, though the two ministries share certain board members. The Ministry and Association are engaged in related party transactions including a shared services agreement to gain efficiencies over administrative services supporting their individual ministries, receive and forward contributions intended for the other Ministry, transfer assets that align with the other Ministry's projects and activities, and staff and financially support joint ministry activities and disaster responses..."

[...]

"The Ministry maintains license agreements with the following unconsolidated organizations: Samaritan's Purse-Australia, The Samaritan's Purse-Canada, Samaritan's Purse International-United Kingdom, and Gifts of Hope-Germany. The agreements outline how the affiliate organizations coordinate program activities and the terms and conditions of their use of the Ministry's registered name and trademarks..."
According to the Samaritan's Purse (SP) 2017 tax filing, SP reports for Business Transactions Involving Interested Persons, transactions described as "Comp/benefits" in the amounts shown below, related to 10 individuals who share a family relationship with an SP officer, director, or key employee (IRS Form 990 Schedule L, Part IV):

(1) Corey Lynch, Son-in-law of Director: $76,541
(2) Marty Cottrell, Son-in-law of Director: $74,255
(3) John Payne, Spouse of Director: $48,593
(4) Jessica Zerkle, Daughter of Key Employee: $47,276
(5) William Furman, Son of Officer: $45,855
(6) Jane Graham, Spouse of Director: $44,693
(7) Jane Lynch, Daughter of Director: $35,756
(8) Phakjira Isaacs, Daughter-in-law of Key Employee: $32,983
(9) Ann Littlejohn, Daughter of Officer: $24,723
(10) Allison Idol, Daughter of Director: $10,690
According to the Samaritan's Purse (the Ministry) consolidated audit of December 31, 2017 (Note 2, Property and Equipment):

"The Ministry has entered into agreements for property and asset acquisitions, capital improvements, and inventory of approximately $17,152,000 as of December 31, 2017."

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