*Why Not Ratable?CharityWatch is currently unable to rate this organization. This does not imply a negative or positive evaluation. Please see the Analysts' Notes section for a more detailed explanation. |
CharityWatch is unable to provide a range of Top Three Salaries for this charity for the above fiscal reporting year because we lack complete salary data for the organization. Except for officers, directors, and trustees, the IRS does not require breakouts of salaries totaling less than $100,000.
For example, XYZ charity would be required to provide a breakout in its tax form of compensation to its president of $55,000, but would not be required to provide a breakout of $99,000 in compensation to its top medical researcher if that person is not also an officer, director, or trustee of the organization.
This charity reports that compensation to its officers, directors, and trustees is under $100,000 per individual. Donors who would like to view limited salary data for this organization should refer to its tax form, which may be available on the charity's web site or from a number of third-party sources. See CharityWatch's Links page for information on obtaining copies of charity tax forms.
CharityWatch is unable to provide a rating for FEED Foundation based on its fiscal year ended 12/31/2022 due to the charity's small size. CharityWatch's inability to provide a rating for FEED Foundation at this time does not imply a negative or positive evaluation. FEED Foundation does not meet CharityWatch's benchmarks for Governance at this time due to limitations in the Form 990-EZ reporting which omits certain governance questions used by CharityWatch to gauge these metrics. The charity does not meet our Transparency benchmarks because it did not have an independent audit of its finances conducted for fiscal 2022, which is not unusual for a charity of this small size. However, it should be noted that on March 7th, 2024 FEED Foundation did provide helpful responses to CharityWatch's requests for information about its fundraising activities. According to its 2022 IRS tax Form 990-EZ, FEED Foundation raised only $83,050 in contributions and reported $15,450 in total expenses in 2022. Of those total expenses, the charity reports spending $1,691 on grants "to provide funding for meals for children in schools in the US." FEED Foundation reports raising just $373,409 in total contributions during the five-year period of 2018 through 2022, which averages to less than $75,000 annually (IRS Form 990, Schedule A, Part II, Section A). FEED Foundation reports a total of four "Officers, Directors, Trustees, and Key Employees" in its 2022 IRS Tax Form 990-EZ, with each officer or director working an average of between .25 and 2.00 hours per week. Zero compensation is reported for these four individuals. Lack of Independent Audited Financial Statements Most charities forego hiring external auditors to produce annual audited financial statements until they reach a size that subjects them to regulations requiring them to do so, such as to satisfy state fundraising regulations, to obtain credit, or for insurance purposes. Audits conducted by Certified Public Accountants (CPAs) can cost thousands of dollars, which is relatively expensive for small charities. The lack of an audit, however, means that a qualified outside party has not subjected the charity's financial reporting to auditing standards that would test the effectiveness of its internal controls and assess whether or not the charity's financial information is fairly presented and free of material misstatements. As of March 4th, 2024, CharityWatch has been unable to locate fiscal 2022 audited financial statements for FEED Foundation in public databases. Economies of Scale Economies of scale occur when the size of an organization's operations allow it to operate more efficiently. As an organization grows it costs it less (per unit) to produce its goods or services due to its overhead and other fixed costs being spread over a larger volume of output. For example, a small charity that serves 500 poor people per year may need to pay $8,000 for its annual financial audit. A larger charity that serves 3,000 poor people per year may need to pay $10,000 for its annual financial audit. The first charity spent $16 per person served for the overhead cost of its audit, while the second spent far less at only $3.33 per person served. Charity rating methods suitable for larger organizations often cannot be fairly applied to much smaller charities given that the latter lack the economies of scale necessary to operate at the same level of efficiency. Small charities that assist underserved populations, that are fulfilling an unmet need, or that are new or in the process of scaling up to a larger size may still be worthy of donors' support despite CharityWatch's inability to rate them due to this comparability issue. |