Friends of UNFPA

CharityWatch is currently unable to assign a letter grade rating to Friends of UNFPA based on its fiscal year ended 12/31/2020 due to our specific concerns about the charity's financial reporting. For this reason, we have assigned it a "?" rating for fiscal 2020.

In certain past years, Friends of UNFPA has both granted funds to, and received funds from, the United Nations Population Fund (UNPF) in the same fiscal year. When this occurs, prior to computing Friends of UNFPA's program efficiency ratio, CharityWatch makes certain adjustments to the charity's reported program spending to avoid giving it credit for the same funds twice. For example, if Friends of UNFPA receives a $500,000 grant from UNPF in a given year, but in that same year grants UNPF $800,000, CharityWatch would adjust $500,000 out of Friends of UNFPA's reported program spending prior to computing its program efficiency ratio. If Friends of UNFPA grants funds to UNPF in a given year, but receives no grants from UNPF that same year, CharityWatch would not make an adjustment to Friends of UNFPA's reported program spending.

In addition, CharityWatch excludes from Friends of UNFPA's reported contributions any grants it receives from UNPF prior to computing its fundraising efficiency ratio, on the basis that Friends of UNFPA presumably does not expend more than a negligible amount of fundraising dollars to bring in grants from UNPF. This adjustment allows us to arrive at a fundraising ratio that better reflects how efficiently Friends of UNFPA is raising funds from independent sources.

In prior years, Friends of UNFPA has been responsive to CharityWatch's requests for information about grants it has made to or received from UNPF. CharityWatch contacted Friends of UNFPA via email and mail on December 30, 2021 and January 5, 2022, respectively, asking for information about any funds it granted to or received from UNPF in fiscal 2020. As of May 10, 2022, CharityWatch has not received a response. Should Friends of UNFPA provide information to CharityWatch in the future that allows us to complete a meaningful evaluation of its fiscal 2020 financial activities, we can update the rating at that time.

For more information on adjustments CharityWatch makes to charities' financial reporting during our evaluation process, please visit CharityWatch's Our Process page.

According to the Friends of UNFPA consolidated audit of December 31, 2020 (Note 9, Significant Contributions):

"During the years ended December 31, 2020 and 2019, approximately 45% and 54%, respectively, of the Organization's revenue (excluding in-kind services) was derived from contributions received from one donor."

According to the Friends of UNFPA consolidated audit of December 31, 2020 (Note 6, Paycheck Protection Program Loan):

"On May 28, 2020, the Organization obtained a loan from the SBA [Small Business Administration] through the Paycheck Protection Program. Terms of the loan indicate that if certain conditions are met, which include maintaining average work forces during periods subsequent to receipt of the loan funds that are greater than pre-determined historical periods, that the loan, or a portion thereof, will be forgiven. Portions that are not forgiven will be payable over a two-year period, with a ten-month deferral of payments and interest will accrue at 1%. The loan forgiveness amount has not been determined as of the date of these [audited] consolidated financial statements [July 22, 2021].

"The Organization has opted to treat the Paycheck Protection Program proceeds as a loan payable... Under this treatment, the proceeds from the loan will remain as a liability until either the loan is forgiven by the SBA, or the Organization pays it off."

[The amount of the "Paycheck Protection Program loan" liability reported on the Organization's audited Consolidated Statement of Financial Position at December 31, 2020 is $69,615.]