Alight

CharityWatch's rating of Alight also includes the financial activities of its related entities, which are consolidated in the Alight audited financial statements for the fiscal year ended March 31, 2020. The related entities include: Questscope, LTD. (U.S.) and Questscope (UK); Organization for Refuge, Asylum and Migration (ORAM); Eastern Congo Initiative and Affiliate (ECI); and Upwardly Global. All material intercompany accounts and transactions have been eliminated in the audit consolidation.

According to the Alight consolidated audit of March 31, 2020 (Note 1 re: Organization):

"The [audited] consolidated financial statements include the operations of Alight...and several other non-profit organization (collectively, related entities) in which Alight's Board of Directors maintain control through governance arrangements with each organization. The agreements with the related entities allow each of the organizations to retain their unique identities, values and leadership, while leveraging each entities [sic] strengths and unique qualities...

"Questscope, LTD. is a non-profit organization with registration in the United States. Questscope is a UK registered charity under the United Kingdom Articles of Charitable Companies. Questscope is also legally registered to conduct business in the Hashimite Kingdom of Jordan (Jordan). Both Questscope, LTD. and Questscope receive grants and contributions to manage educational refugee programs in Jordan and Syria.

"ORAM – Organization for Refuge, Asylum and Migration (ORAM), is a non-profit organization incorporated in 2008 in the state of California and registered in Germany. ORAM advocates for the protection and well-being of extremely vulnerable LGBTIQ asylum seekers and refugees globally and is recognized as the first international non-profit to assist people fleeing persecution based on their sexual orientation or gender identity and has since become a thought leader in LGBTIQ migration...

"ECI – Eastern Congo Initiative and Affiliate (ECI) is a public charity incorporated in 2011 in the state of Washington and registered in the Democratic Republic of Congo (DRC). ECI is the first U.S. based advocacy and grant making initiative wholly focused on working with and for the people of the DRC.

"...ECI joined the Alight organization on September 30th, 2019 with Alight established as the sole voting member. By this agreement, Alight moved the Asili project into the ECI organization. Asili is a social enterprise organization in the DRC that supports water, medical care, and agricultural services to local communities. ECI's mission is to increase the quality and quantity of investments into DRC through Congolese led solutions, collaborative partnerships, and by promoting public policy changes through grassroots advocacy.

"Upwardly Global is a registered non-profit benefit corporation in the state of California. Upwardly Global provides immigrants, refugees, and political asylees the tools and training they need to rebuild their professional careers in the USA and promotes immigrant inclusion in the workplace... Upwardly Global was a consolidated entity for part of each of the two years ending March 31, 2020 and 2019 [for the period July 1, 2018 through September 30, 2019]..."

According to the Alight consolidated audit of March 31, 2020 (Note 1 re: Economic uncertainties):

"On March 11, 2020, the World Health Organization declared the Coronavirus disease (COVID-19) a global pandemic. As a result of the spread of COVID-19, economic uncertainties have arisen which negatively impacted Alight and related entities' operations. The overall potential impact is unknown at this time."

According to the Alight consolidated audit of March 31, 2020 (Note 14, Subsequent Events):

"In preparing these [audited] consolidated financial statements, Alight and related entities have evaluated events and transactions for potential recognition or disclosure through September 10, 2020, the date the consolidated financial statements were issued.

"On April 15, 2020, Alight entered into a five-year promissory note agreement in the amount of $972,700 with a 1% fixed interest rate under the Paycheck Protection Program. The promissory note calls for monthly principal and interest payments amortized over the term of the promissory note, unless otherwise forgiven. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the promissory note may be forgiven by the Small Business Administration in whole or in part.

"On March 25, 2020, the Alight Board of Directors approved the formation and capitalization of Kuja Kuja, Inc., as a Delaware corporation to operate as a for-profit social enterprise. The formation of Kuja Kuja, Inc. was completed effective April 1, 2020 whereby Alight transferred its Kuja Kuja business unit to Kuja Kuja, Inc. and received Kuja Kuja, Inc. stock in exchange. As the formation and transfer occurred after March 31, 2020, Kuja Kuja, Inc. is not included in these [audited] consolidated financial statements."

According to the Alight consolidated audit of March 31, 2020 (Note 10, Contingencies, Foreign operations):

"Alight and related entities provide capital assistance, technical assistance and training in numerous developing countries through its field offices in each of those countries. The future results of those programs could be adversely affected by a number of potential factors, such as currency devaluations or changes in the political climate.

"As of March 31, 2020 and 2019, Alight and related entities had cash, property, furniture, equipment and software and prepaid expenses in various countries in Africa, Middle East and Asia, totaling approximately $9,400,000 and $13,000,000, which represented approximately 23% and 37%, respectively, of Alight and related entities' total assets."

According to the Alight tax filing for the fiscal year ended March 31, 2020, Alight reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"See Part II, Column B (ii) for bonus amounts."

The "Bonus & incentive compensation" reported by Alight on Schedule J, Part II is $40,000 paid to Daniel Wordsworth, President; his reported total compensation in calendar year 2019 is $339,708. No other bonus amounts are reported.