Food for the Hungry

CharityWatch's rating of Food for the Hungry is for the 501(c)(3) public charity entity (tax ID #95-2680390). The rating does not include the financial activities of the related 501(c)(4) tax-exempt, social welfare organization, FH Association (tax ID #20-8424918).

According to the Food for the Hungry consolidated audit of September 30, 2021 (Note 1, Nature of Organization): "FH Association is a not-for-profit international association chartered in Switzerland on November 23, 2006. FH Association operates in Bangladesh, Bolivia, Burundi, Cambodia, Democratic Republic of Congo, Dominican Republic, Ethiopia, Guatemala, Haiti, Indonesia, Kenya, Mozambique, Nicaragua, Peru, Philippines, Rwanda, South Sudan, Uganda, and other countries with smaller field operations."

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 treatments under the IRS tax code. 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 Food for the Hungry (FFTH) tax filing for the fiscal year ended September 30, 2021, FFTH received donated in-kind goods on which it placed a total value of $18,086,497, including $10,543,907 in donated "Commodities" and $5,768,339 in donated drugs & medical supplies (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 Food for the Hungry (FH) consolidated audit of September 30, 2021 (Note 9, Loan Payable):

"Loan payable consists of a Paycheck Protection Program loan. The loan was fully forgiven during the year ended September 30, 2021 as FH met certain spending and employment thresholds in line with the criteria of the program. As a result a gain on extinguishment of debt was recorded on the [audited] consolidated statement of activities for $3,244,718, in which $3,204,643 is related to the principal and $40,075 is related to accrued interest, for the year ended September 30, 2021..."

According to the Food for the Hungry (FH) consolidated audit of September 30, 2021 (Note 16, Related Party Transactions):

"...FH paid approximately $8,000 and $55,000 to one board member for legal services rendered during the years ended September 30, 2021 and 2020, respectively. These services were not related to their duties as board members."

According to the Food for the Hungry (FH) consolidated audit of September 30, 2021 (Note 17, Risks and Uncertainties):

"In March of 2020, the World Health Organization declared the outbreak of the coronavirus (COVID-19) as a pandemic... COVID-19 has caused a severe negative impact on the world economy and has contributed to significant volatility in financial markets. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of FH for future periods. Management is carefully monitoring the situation and evaluating its options as circumstances evolve."

According to the Food for the Hungry (FFTH) tax filing for the fiscal year ended September 30, 2021, FFTH reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance or change-of-control payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, line 4a):  "Peter Horward [sic], Former CIOO, received salary continuation payments totaling $53,624."

[Peter Howard is reported as "(CIOO thru 8/2020) Former HCE," with total compensation of $152,224 in calendar year 2020 (Schedule J, Part II).]

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

"Non-fixed payments in the form of small discretionary bonuses were awarded by supervisors for employee recognition and for Milestone events. These are included in the annual budget approved by the Board."

FFTH reports "Bonus & incentive compensation" payments to five individuals in calendar year 2020. The individual "Bonus & incentive compensation" amounts were either $200, $150, or $100; the reported total compensation in 2020 for the five individuals ranged from $250,121 to $164,491 (IRS Form 990, Schedule J, Part II).