CARE USA

CharityWatch's rating of CARE USA is based on the financial activities of the 501(c)(3) public charity entity (tax ID #13-1685039).

According to the CARE USA consolidated audit of June 30, 2019 (Note 1 re: Structure and Related Parties):

"CARE USA is a member of CARE International, an organization that coordinates various agreed upon functions and activities common across the membership, including program activities in certain cases. In the regular course of its operations, CARE USA receives and provides funding through grants and other contributions to and from CARE International and member organizations..."


CharityWatch's rating of CARE USA does not include the financial activities of CARE Action Now, "a related but separate 501(c)4 organization operating exclusively for the purpose of educating the public and influencing legislative, executive, and judiciary policy-makers on the appropriate and sustainable provision of development and humanitarian assistance to underprivileged people," according to the CARE USA fiscal 2019 consolidated audit (Note 16). Also not included in the rating are CARE USA's non-exempt subsidiaries, Access Africa Fund, LLC and CARE Enterprises, Inc. "CARE USA makes up more than 99% of the net assets in the accompanying [audited] consolidated balance sheets," according to the CARE USA fiscal 2019 consolidated audit (Note 2).

CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when they are included together in a consolidated audit, due to their differing tax treatments by the IRS. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page.

According to the Cooperative for Assistance and Relief Everywhere (CARE) tax filing for the fiscal year ended June 30, 2019, CARE received donated in-kind goods on which it placed a value of approximately $23.0 million, including approximately $22.0 million in donated food inventory (IRS Form 990, Schedule M).

In addition, according to the CARE USA consolidated audit of June 30, 2019 (Note 2 re: Nonfood Gifts-in-Kind): "CARE USA recognized contributions totaling $6.0 million...for public service announcements and donated professional services..." in fiscal 2019.

[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 CARE USA consolidated audit of June 30, 2019 (Note 14, Commitments and Other Matters):

"CARE USA maintained performance guarantees totaling $7.0 million and $8.5 million for the years ended June 30, 2019 and 2018, respectively, on behalf of CARE Country offices, other CI [CARE International] members or various restricted grants. All guarantees are foreign currency denominated and therefore subject to fluctuations in USD equivalent value. Expiration or cancellation of each guarantee is contingent upon fulfilment [sic] of the underlying terms associated with the guarantee.

"CARE USA has committed to provide funding to CARE Peru in the aggregate amount of $24 million. This commitment was to be paid from fiscal years 2012 through 2034 in accordance with CARE USA and CARE Peru framework agreement payment terms. The commitment is conditional upon CARE Peru meeting agreed-upon program expenditures, which has not occurred to date. CARE USA made cumulative contributions to CARE Peru of $9.0 million and $8.0 million respectively, as of June 30, 2019 and 2018.

"CARE USA provided a loan to the CARE International Revolving Fund in the amount of $1.5 million and $1.6 million as of June 30, 2019 and 2018, respectively. It is used by CARE International to advance money to other members."

According to the CARE USA consolidated audit of June 30, 2019 (Note 15, Contingencies):

"The Government of Bolivia has served CARE USA with tax claims of approximately $21.8 million for the commercial sale and distribution of commodities during the calendar years 2002 – 2007. CARE USA has filed lawsuits in Bolivia contesting the validity of these claims. A lower court ruled in CARE USA's favor on two lawsuits. The Supreme Court in Bolivia, the highest court, affirmed one of the lower court decisions in July 2016 and sent the other case back to the lower court. Although CARE USA no longer has operations in Bolivia, the outcome of this matter is currently not determinable, and management is monitoring the situation closely. No definitive estimate can be made of the potential liability."

According to the Cooperative for Assistance and Relief Everywhere (CARE) tax filing for the fiscal year ended June 30, 2019, CARE reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"The following staff received a separation payment in calendar year 2018:

– Lee T Love, Vice President Fundraising and Marketing – $116,759."

The $116,759 is also reported as the amount of total compensation for Lee T. Love in calendar year 2018 (IRS Form 990, Schedule J, Part II).