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.
|According to the World Neighbors audit of June 30, 2016 (Note B, Divestiture from Feed the Children):|
"Effective March 1, 2013, World Neighbors and Feed the Children, Inc. ('Feed the Children') entered into an affiliation agreement with the goal of building on existing programs and organizations to enhance each organization's charitable mission. This agreement could be terminated at any time at the sole discretion of Feed the Children.
"Effective June 30, 2016, both parties acknowledged and agreed that Feed the Children terminate the affiliation. This action, and the resulting Separation Agreement, ended the affiliation between the two entities..."
On August 16, 2016, CharityWatch received from World Neighbors a copy of the executed Separation Agreement, "pursuant to which World Neighbors, Inc. will become a self-sufficient, independent organization apart from Feed The Children, Inc. once again." Effective June 30, 2016, the Agreement terminates the Memorandum of Understanding dated March 1, 2013 between World Neighbors and Feed The Children. The Agreement "thereby ends the affiliation between the two entities and ends the parent subsidiary relationship, with Feed The Children, Inc. serving as the parent and World Neighbors, Inc. as the subsidiary..."
|According to the World Neighbors (WN) tax filing for the fiscal year-ended June 30, 2017, WN reports receiving in-kind donated services and use of facilities on which it placed a value of $162,489 (IRS Form 990, Schedule D, Part XI).|
[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 World Neighbors audit of June 30, 2017 (Note M, Concentrations of Credit Risk):|
"Concentrations of operations located outside the United States represent 21% of the carrying amount of net unrestricted assets; consisting primarily of cash, property and equipment. Foreign field program expenses represent 71% of the total field program expenses reported [of $3,127,451]..."
"The Organization's operations in Latin American and the Caribbean (Bolivia, Guatemala, Haiti and Peru), Africa (Burkina Faso, Kenya, Mali, Tanzania and Uganda), South Asia (India and Nepal) and Southeast Asia (Indonesia and Timor-Leste) are subject to risks inherent in operating in these sovereign states that are not typically associated with operations in North America. Accordingly, the Organization's financial condition and activities may be influenced by the political, economic, and legal environments in these sovereign states. As a result, World Neighbors' activities in these states are subject to a variety of risks, including:
-- Social, political, and economic instability;
-- Unexpected changes in regulatory requirements; and,
-- Fluctuations in foreign exchange rates."
"Any of these developments, or others, could adversely affect World Neighbors' financial condition and activities."
"...Fifty four percent [54%] of total contribution revenues were provided by six donors for the year ended June 30, 2017."
|According to the World Neighbors audit of June 30, 2017 (Note O, Commitments):|
"The Organization has an employment agreement with its President and Chief Executive Officer, which extends through June 30, 2018. The aggregate commitment under this agreement was approximately $192,474 at June 30, 2017."