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Humanity & Inclusion

CharityWatch report issued
April 2019

 
NOT
RATABLE
CharityWatch Grade
 

Contact Information

Humanity & Inclusion
8757 Georgia Avenue
Suite 420
Silver Spring, MD 20910

Other Names

Handicap International--(formerly known as)

Tax Status

501(c)3

Website

www.hi-us.org

Stated Mission

Works with people with disabilities & other vulnerable populations living in situations of poverty, exclusion, conflict, and disaster. Takes action & bears witness to respond to their essential needs, improve their living conditions, and promote respect for their dignity & rights.

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Data based on Fiscal Year Ended 12/31/2017

*Why Not Ratable?

CharityWatch is unable to rate this organization due to how it is structured. This does not imply a negative or positive evaluation.

Some charities engage in significant financial transactions with a related organization outside of the U.S. for which sufficient audited financial information is either not available, is not presented in combined form, and/or is not based on U.S. reporting standards. CharityWatch's methodology is not designed to measure how efficiently one entity of a charity grants funds to its affiliates, partners, or related organization(s) outside of the U.S. In many of these cases, the charity is essentially functioning as a U.S. based fundraising arm. Therefore, when applicable, CharityWatch has calculated a Cost to Raise $100 fundraising ratio for such charities.

Please see the Analysts' Notes section for a more detailed explanation and for this organization's Cost to Raise $100, if applicable.


Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
Humanity & Inclusion
meets governance benchmarks.
 
Humanity & Inclusion
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy Opt-Out Policy  

  Name Title Compensation
1 Jeffrey Meer Executive Director $170,651
1
Name: Jeffrey Meer
Title: Executive Director
Compensation: $170,651

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
On January 24, 2018, Handicap International announced a name change to Humanity & Inclusion.

For more information, please click on the "Articles & Alerts" tab (above) for a link to the related press release.

[Note: Humanity & Inclusion is reported as the "Doing business as" (dba) name on Handicap International's 2017 IRS Form 990 filing. (Its tax ID is #55-0914744.)]
CharityWatch is currently unable to provide a letter grade rating of Humanity & Inclusion (HI-US) due to how the organization is structured and funded. HI-US receives the vast majority of its funding from the U.S. government and an associated organization, Humanity & Inclusion Federation (HI-Federation). In addition, the vast majority of HI-US program and total expenses consist of grants to HI-Federation and HI-Federation Affiliated Organizations.

According to the Humanity & Inclusion (HI-US) audit of December 31, 2017 (Note 7, Related Party Transactions):

"HI-US is a part of the Handicap International DBA Humanity & Inclusion Federation (HI-Federation), comprised of eight national associations, which is headquartered in Lyon, France. HI-US solicits private and public funds, as well as provides program management through technical expertise, training, monitoring and evaluation, and grants administration."

"HI-US provides 80% of unrestricted contributions to the HI-Federation and HI-Federation Affiliated Organizations. For the year ended December 31, 2017, they contributed $286,802 to HI-Federation. HI-US also contributed $65,000 to HI-Federation Affiliated Organizations."

[...]

"Additionally, HI-US expended $16,142,750 in sub-grants to the HI-Federation and $6,929,873 for the HI-Federation Affiliated Organizations (both of which include the 80% of unrestricted contributions). HI-Federation and the HI-Federation Affiliated Organizations implement the programs. HI-US and the HI-Federation also share two Board members..."


The majority of HI-US's program and total expenses are expended in sub-grants to the HI-Federation and HI-Federation Affiliated Organizations. For 2017, HI-US reports cash program expenses of $23,808,938, of which $23,072,623 consists of sub-grants to the France-based HI-Federation and the HI-Federation Affiliated Organizations, according to the HI-US 2017 audit. These grants to affiliated organizations represent nearly 97% of reported total program expenses and nearly 93% of reported total cash expenses for fiscal 2017.

According to the 2017 Humanity & Inclusion tax filing and audited financial statements, of the $24.8 million in contributions received in 2017, approximately $22.5 million consisted of government grants. In addition, the majority of the organization's non-government contributions were received from a related, non-U.S. entity (HI-Federation) for which financial documents either do not exist, are not publicly available, or are not based on U.S. accounting standards. According to the HI-US audit (Note 7), "For the year ended December 31, 2017, operational support to HI-US [from HI-Federation] totaled $1,659,368."

CharityWatch's methodology is not designed to measure how efficiently one entity of a charity grants funds to its associated organizations. For this reason, CharityWatch does not believe it is fair to publish a program efficiency ratio for HI-US alongside those of other charities that conduct their own programs and/or primarily make grants to unaffiliated charities. In addition, because such a small percentage of HI-US contributions come from non-government or non-affiliated organizations, CharityWatch is unable to provide a meaningful ratio of fundraising efficiency for HI-US.

CharityWatch's inability to provide a complete rating of HI-US is strictly due to how the organization is structured and funded. In order for CharityWatch to be able to provide a complete rating for HI-US in the future, we would require consolidated / combined audited financial statements, expressed in U.S. dollars and based on U.S. GAAP reporting standards, that include all of HI-Federation's related entities. Such statements would eliminate transactions among related organizations, as well as provide a comprehensive view of how the organization both raises and spends public dollars on the whole. This information may not currently be practicable for HI-US or HI-Federation to provide given that the organization's headquarters is based in Europe and not the U.S.

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