Grameen Foundation USA

CharityWatch's rating of Grameen Foundation USA also includes the financial activities of Freedom from Hunger, Grameen Foundation for Social Impact, and TaroWorks, LLC, which are consolidated in the audited financial statements of Grameen Foundation USA for the fiscal year ended June 30, 2019.

According to Grameen Foundation USA consolidated audit of June 30, 2019 (Note 1 re: Organization):

"Grameen Foundation for Social Impact (GFSI), is a non-profit corporation registered in India...whose mission is to undertake activities and services that impact the lives of the poor, especially women...

"TaroWorks, LLC...is a U.S. corporation that provides an advanced mobile data platform to enhance data collection, monitoring, sales and inventory management in the field. The mission is to improve product and service delivery to the poor by bringing real-time data to any organization, anywhere. It is wholly owned by Grameen Foundation USA.

"Freedom from Hunger is a U.S. [501(c)(3)] non-profit organization...[that] brings self-help solutions to combat chronic hunger and poverty globally by offering microfinance, education and health protection services to millions of women and their families. On October 21, 2016, Freedom from Hunger entered into an Asset Transfer Agreement with Grameen Foundation USA in order to advance the organizations' shared missions. On November 1, 2016, the organizations came under common control. After this date Freedom from Hunger became a Type I supporting organization of Grameen Foundation USA within the meaning of Section 509(a)(3) of the Internal Revenue Code of 1986. Freedom from Hunger's supporting organization status was approved by the Internal Revenue Service on March, 1, 2017. As a supporting organization, Freedom from Hunger is organized and operated exclusively for the benefit of, to perform the functions of, and to carry out the purposes of Grameen Foundation USA and designates."

[See the "Articles & Alerts" section, below, for a link to the October 25, 2016 press release announcing Grameen Foundation USA's merger with Freedom from Hunger.]

The accounts of Grameen Foundation India Private Limited (GFI) are also consolidated in the Grameen Foundation USA fiscal 2019 audited financial statements, according to audit Note 1. GFI is a for-profit corporation registered in India and a wholly-owned subsidiary of Grameen Foundation USA. The financial activities of GFI, a for-profit entity, are not included in CharityWatch's rating of Grameen Foundation USA.

According to the Grameen Foundation USA consolidated audit of June 30, 2019 (Note 10, In-Kind Contributions), Grameen received in-kind contributions in fiscal 2019 on which it placed a total value of $704,893. The in-kind contributions "include professional services from Grameen's Bankers without Borders program and other advertising and professional 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 on the Our Process page.]

According to the Grameen Foundation USA consolidated audit of June 30, 2019 (Note 9, Future Funding of the Affiliates):

"As of June 30, 2019, GFI [Grameen Foundation India Private Limited] has a net assets without donor restrictions balance of $107,230, comprised of ($2,297,139) in cumulative losses from operations offset by $2,404,369 in capital investments by Grameen Foundation USA. Failure to obtain additional revenue without restrictions may affect GFI's future activities. Grameen Foundation USA is committed to continuing to invest resources in GFI because of its social mission to ensure it can meet its obligations. The [audited] consolidated financial statements do not include any adjustment that might be necessary if GFI is unable to continue operations.

"As of June 30, 2019, TaroWorks has a deficit in net assets totaling $202,770. Failure to obtain additional revenue may affect its future activities. However, Grameen Foundation USA is committed to investing resources in TaroWorks to support its social mission. The [audited] consolidated financial statements do not include any adjustment that might be necessary if TaroWorks is unable to continue operations."

[Note: As referenced above in a separate Analysts' Note, Grameen Foundation India Private Limited (GFI) is a for-profit entity. Although its accounts are consolidated in the Grameen Foundation USA fiscal 2019 audited financial statements, GFI's financial activities are not included in CharityWatch's rating of Grameen Foundation USA.]

According to the Grameen Foundation USA consolidated audit of June 30, 2019 (Note 16, Subsequent Events):

"In preparing these consolidated financial statements, Grameen Foundation has evaluated events and transactions for potential recognition or disclosure through March 30, 2020, the date the [audited] consolidated financial statements were issued.

"The COVID-19 outbreak in the United States has caused business disruption and a reduction in economic activity. While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration. While the global financial markets have declined, the related financial impact on Grameen's investment portfolio at the time of the auditor's report has been minimal."