According to the GiveDirectly audit of December 31, 2023 (Note 11, Related Party Transactions): "Segovia Technology Co. (Segovia) was formed by two common Board members and co-founders of GiveDirectly. Segovia builds software to manage the logistics of payments distribution in the developing world, so that governments, non-profits and others can more effectively implement cash transfers and other social protection programs.
Effective March 16, 2015, GiveDirectly purchased 921,500 shares of Segovia common stock at $0.0001 par value per share, leading to an aggregate purchase price of $92.15. GiveDirectly acquired the shares for a nominal cash contribution, as is standard practice for the distribution of initial shares of a new company. GiveDirectly transferred voting rights in these shares back to two proxyholders who are founders of Segovia, as part of an arrangement in which those founders donated economic interest in those shares to GiveDirectly but retained voting rights. On March 26, 2019, Segovia and Crown Agents Bank (CAB) agreed to merge, forming CTHL [CAB Tech HoldCo Limited] and spinning out of a part of Segovia as a separate company, TTS (the payment system continued to be referred to as Segovia). As part of the merger and spin off, GiveDirectly's shares in Segovia were exchanged for 202,681 shares in CTHL and 921,500 shares in TTS. Independent valuations were performed on each of these entities. For the years ended December 31, 2023 and 2022, the CTHL/TTS investment was valued at $2,563,980. During the year ended December 31, 2023, all shares were sold. TTS charges GiveDirectly a fixed percentage of grant transfers for software services. TTS also charges GiveDirectly a sending fee for each transfer distributed to each recipient through their payment gateway. For the years ended December 31, 2023 and 2022, TTS sending fees totaled $559,589 and $741,096, respectively and have been reflected in program services on the statement of activities. During 2023 and 2022, TTS also shared one employee with GiveDirectly, who provided administrative support. For the years ended December 31, 2023 and 2022, a salary allocation for this employee of $27,563 and $36,750, respectively was billed to TTS by GiveDirectly, of which $0 and $3,063 was unpaid as of December 31, 2023 and 2022, respectively... ...In 2017, GiveDirectly began using TTS's payment gateway for delivery of cash transfers to the recipients in East Africa. For the years ended December 31, 2023 and 2022, the amount of funds that GiveDirectly held with TTS that had not yet been disbursed by TTS to the recipients totaled $3,146,267 and $4,483,516, respectively... ...Effective October 28, 2015, an entity was established in the United Kingdom (GiveDirectly UK) for the purpose of fundraising in the United Kingdom for the prevention or relief of poverty anywhere in the world. GiveDirectly does not control or direct any of the activities of GiveDirectly UK. However, the co-founder of GiveDirectly is one of three members of the Board of Directors of GiveDirectly UK. During 2023 and 2022, GiveDirectly received $4,162,671 and $2,900,790, respectively, from GiveDirectly UK.
On December 21, 2016, GiveDirectly was registered under the Companies Act 2006 as having established a UK establishment in the United Kingdom. This is a branch of GiveDirectly and a separate entity from GiveDirectly UK, and consists of five UK employees involved primarily in fundraising and programmatic operational work. The assets, liabilities, revenue, and expenses associated with the UK entity are included in these [audited] financial statements." |
According to the GiveDirectly 2023 tax filing, GiveDirectly reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III): Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, line 7):
"For the year ended December 31, 2023, individuals listed on Part VII [Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors] received non-fixed payments which were based on a pre-established index according to the individuals' levels and meeting organization's mission which is based on enrolling recipients in the cash transfer programs."
GiveDirectly reports "Bonus & incentive compensation" payments for eight individuals in 2023, including $152,079 paid to Joseph Huston, Past Managing Director, and $121,207 paid to Jason Watters, Past Chief Financial Officer & Data Protection Officer. The reported total compensation in 2023 for Huston and Watters was $384,234 and $358,727, respectively. The reported "Bonus & incentive compensation" payments for the other six individuals ranged from $17,233 to $43,550, with total reported compensation ranging from $188,618 to $293,413 (IRS Form 990, Schedule J, Part II).
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