According to the Church World Service (CWS) tax filing for the fiscal year-ended June 30, 2020, CWS reports receiving donated in-kind goods on which it placed a total value of $1,096,181. The in-kind goods are reported as consisting of: $490,194 in "Hygiene Kits"; $331,540 in "Emergency Clean Up Kit[s]"; and $274,447 in "School Kits" (IRS Form 990, Schedule M).
[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 Church World Service (CWS) audit of June 30, 2020 (Note 9, Debt Obligations):
"On April 21, 2020, the CWS was approved for the Paycheck Protection Program ('PPP') loan which it applied for in response to the economic impact from the COVID-19 pandemic (see footnote 19 [cited below]). CWS received funding for the PPP loan in the amount of $3,323,192. Due to the government grants received for certain expenditures, CWS returned $2,157,035. The remaining $1,166,157 is subject to forgiveness if it is utilized for expenditures such as certain payroll, rent, and utility costs. No principal payments are due until November 2020 at which point CWS will begin making regular monthly payments of approximately $119,800 over an 18-month period. Interest accrues at a fixed rate of 1%. It is CWS's intent to utilize the loan proceeds for purposes that qualify the loan for forgiveness and management expects the loan to ultimately be forgiven. At June 30, 2020, the balance of the PPP loan, including accrued interest, was $1,166,157."
According to the Church World Service (CWS) audit of June 30, 2020 (Note 19, Risks and Uncertainties):
"On January 30, 2020, the World Health Organization ('WHO') announced a global health emergency because of a new strain of coronavirus (the 'COVID-19 outbreak'). In March 2020, the WHO classified the COVID-19 outbreak as a pandemic...
"The full impact of the pandemic continues to evolve as of the date of this report [October 16, 2020] and has affected CWS's operational and financial performance due to the impact on its program services, which is the result of various restrictions put in place by governments to curtail the spread of the coronavirus as well as due to developments such as social distancing and shelter-in-place directives. To mitigate the negative impact on its operational and financial performance, CWS received financing from the Small Business Administration (the 'SBA') totaling $1,166,157 through the Paycheck Protection Program (the 'Program'). ... [M]anagement expects the loan to ultimately be forgiven in fiscal year 2021. The final guidelines have not been issued; therefore, the amount of the forgiveness cannot be estimated at this time. See Note 9 [cited above] for details regarding this loan.
"While expected to be temporary, CWS cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time. If the pandemic continues, it may have an adverse effect on CWS's results of future operations, financial position, and liquidity in fiscal year 2021."