CharityWatch's rating of All Hands and Hearts (AHAH) also includes the financial activities of All Hands and Hearts (UK) Trust, which are consolidated in the AHAH audited financial statements for the fiscal year ended August 31, 2021.
According to the All Hands and Hearts Smart Response consolidated audit of August 31, 2021 (Note 1 re: Principles of Consolidation):
"The consolidated financial statements include the accounts of All Hands and Hearts Smart Response, Inc. ('AHAH') and its affiliate, All Hands and Hearts (UK) Trust (the 'Trust'). The Trust is a non-profit organization formed in the United Kingdom, whose purpose is to solicit funds on behalf of AHAH. Amounts received by the Trust are distributed periodically to AHAH at the discretion of the Trust's Board of Trustees. Additionally, the majority of the voting members of the Trust are also voting members of AHAH. All intercompany accounts and transactions have been eliminated in [the audit] consolidation."
According to the All Hands and Hearts Smart Response (AHAH) consolidated audit of August 31, 2021 (Note 1 re: Donated Services), AHAH received in-kind donations in fiscal 2021 on which it placed a value of approximately $1,620,000.
[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 All Hands and Hearts Smart Response consolidated audit of August 31, 2021 (Note 10, COVID-19 Pandemic):
"In March 2020, the COVID-19 pandemic outbreak started to affect the region in which the Organization operates. In connection with this outbreak, the Governor of the State of Massachusetts ordered all non-essential businesses be shut down immediately. Under this order, the Organization suspended all programs in March 2020 and utilized subcontractors on limited, essential work that had to be completed for the benefit of certain beneficiaries.
"On May 1, 2020, the Organization received a First Draw Loan in the amount of $220,000, at a fixed interest rate of 1.00% payable over two years, pursuant to the Paycheck Protection Program ('PPP') under...the Coronavirus Aid, Relief, and Economic Security Act ('CARES Act'), enacted on March 27, 2020. Under the terms of the PPP, if the proceeds were used for eligible costs, the loan could be forgiven in its entirety. The Organization used the proceeds from the loan for eligible costs, consisting of payroll costs, retirement and health benefits, and other eligible costs during the covered period.
"On March 31, 2021, the Organization was approved for full forgiveness by the Small Business Administration. Debt forgiveness income in the amount of $220,000 has been recorded on the accompanying [audited] consolidated statement of activities and changes in net assets for the year ended August 31, 2021.
"On May 4, 2021, the Organization received a Second Draw PPP Loan in the amount of $700,000. The loan matures in approximately five years, and bears interest at a rate of 1.00% per annum... The funds from the loan have been used for eligible costs, consisting of payroll costs, retirement and health benefits, and other eligible costs during the covered period. Under the terms of the PPP, the loan can be forgiven if the funds are used for qualifying expenses as described in the CARES Act. Management anticipates that the full amount of the loan will be forgiven.
"It is currently uncertain what the long-term effect of the pandemic will have on the Organization's operations. No provision for losses has been made in the accompanying [audited] consolidated financial statements."