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Humanity & Inclusion

CharityWatch report issued
June 2022

 
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 and people living in situations of vulnerability, including poverty, exclusion, conflict, and disaster.

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Data based on Fiscal Year Ended 12/31/2020

*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 Jeff Meer Executive Director $172,203
1
Name: Jeff Meer
Title: Executive Director
Compensation: $172,203

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.

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, 2020 (Note 8, 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 70% of unrestricted contributions to the HI Federation and the HI Federation Affiliated Organizations. For the year ended December 31, 2020, they contributed $347,702 to the HI-Federation. HI US also contributed $94,614 to the HI Federation Affiliated Organizations."

[...]

"Additionally, HI US expended $26,789,295 in sub-grants to the HI Federation and $8,034,736 for the HI Federation Affiliated Organizations (both of which include the 70% of unrestricted contributions). The 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 2020, HI US reports cash program expenses of $35,731,071 of which $34,824,031 consists of sub-grants to the France-based HI Federation and the HI Federation Affiliated Organizations, according to the HI US 2020 audit. These grants to affiliated organizations represent approximately 97% and 95% of HI US's cash-based total program expenses and total expenses, respectively, for fiscal 2020.

According to the 2020 Humanity & Inclusion tax filing and audited financial statements, of the approximately $36.6 million in contributions received in 2020, approximately $34.3 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 8): "For the year ended December 31, 2020, operational support to HI US [from HI Federation] totaled $1,404,326."

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 or combined audited financial statements, expressed in U.S. dollars and based on U.S. GAAP, that include all of HI Federation's related entities. Such statements would eliminate inter-organizational related party transactions, 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.

According to the Humanity & Inclusion (HI US) audit of December 31, 2020 (Note 9, In Kind Contributions), HI US received donated in-kind services in fiscal 2020 on which it placed a total value of $3,313,505. Of this amount, $3,215,972 consisted of "Donated air time for public service announcement."

[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 Humanity & Inclusion (HI US) audit of December 31, 2020 (Note 5, Paycheck Protection Program):

"On May 4, 2020, HI US received loan proceeds in the amount of $233,722 under the Paycheck Protection Program (PPP). Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the promissory note must be used for certain expenditures within a 24-week period to ultimately be forgiven by the Small Business Administration. During the year ended December 31, 2020, HI US expended and tracked the PPP funds for purposes outlined in the CARES Act guidance and HI US received notification May 12, 2021 that they qualified for full forgiveness. Accordingly...HI US has recognized the PPP funding as a conditional grant by which all conditions have been met.

"For the year ended December 31, 2020, HI US deemed the forgiveness by the SBA to be an administrative task only, and not a barrier to recognition. Grant income in the amount of $233,722 is included in government grants and contracts in the accompanying [audited] Statement of Activities and Change in Net Assets."

According to the Humanity & Inclusion (HI US) audit of December 31, 2020 (Note 1 re: Economic uncertainties):

"On March 11, 2020, the World Health Organization declared the Coronavirus disease (COVID-19) a global pandemic. As a result of the spread of COVID-19, economic uncertainties have arisen which may negatively impact HI US' operations. The overall potential impact is unknown at this time."


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