Lutheran World Relief & IMA World Health

CharityWatch's rating of Lutheran World Relief & IMA World Health includes the financial activities of the entities consolidated in the Corus International & Affiliates audited financial statements for the fiscal year ended September 30, 2021. These entities include the 501(c)(3) public charities: Lutheran World Relief, Interchurch Medical Assistance (IMA World Health), Corus International, and IMA Innovations. (See below for more details.) All material intercompany transactions and balances have been eliminated in the audit consolidation.

[More information on CharityWatch's Treatment of Related Organizations can be found on the Our Process page.]

According to the Corus International & Affiliates consolidated audit of September 30, 2021 (Note 1, Corus International, Inc., Organization):

"On October 1, 2019, Corus International, Inc. (Corus) was formed as the parent company of Lutheran World Relief (LWR) and IMA World Health (IMA) and their subsidiaries. ... At Corus, we believe poverty and health are intrinsically linked...

"Corus is an ensemble of faith-based organizations working in concert to deliver the holistic, lasting solutions needed to overcome these interrelated challenges. Together with our local partners, we reduce poverty at the same time as improving communities' health.

"On October 15, 2018, LWR signed a master agreement with Interchurch Medical Assistance, Inc. (d/b/a IMA World Health) (IMA), a Washington D.C. based international church membership non-profit organization that provides health services and build[s] health communities around the world..."

[...]

"The joining of LWR and IMA was a natural fit of both organizations [sic] missions and values to work in partnership to reach more of the world's most vulnerable."

According to the Corus International & Affiliates audited Consolidating Statements of Activities for the year ended September 30, 2021, Lutheran World Relief (LWR) received donated goods and services on which it placed a total value of $11,807,580.

[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 Corus International & Affiliates consolidated audit of September 30, 2021 (Note 9, Paycheck Protection Program):

"In April 2020, both LWR [Lutheran World Relief] and IMA [Interchurch Medical Assistance] applied for, and received funds under the Paycheck Protection Program (PPP) of the CARES Act amounting to $1,264,000 and $2,270,500, respectively. The IMA portion of the PPP loan was forgiven in December 2020, while the LWR portion of the loan was forgiven in June 2021.

"The SBA [Small Business Administration] has stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to potential audit by the SBA for compliance with PPP requirements for a period up to ten years from the date the loan is provided. If the SBA determines in the course of its audit that Corus lacked an adequate basis for the required certification concerning the necessity of the loan request or the subsequent use of loan proceeds, the SBA will seek repayment of the PPP loan, including interest and potential penalties. While Corus believes the PPP loan was properly obtained, there can be no assurance regarding the outcome of an SBA review and related forgiveness of the PPP loan should an audit of the loan process occur."

According to the Corus International & Affiliates consolidated audit of September 30, 2021 (Note 18, Risks and Uncertainties, COVID-19):

"On January 30, 2020, the World Health Organization (WHO) announced a new strain of coronavirus. As a result of the risks to the international community as the virus has spread globally...on March 11, 2020 the WHO declared the novel coronavirus a global pandemic.

"The extent of the impact of the COVID-19 pandemic on the operational and financial performance of the Organization will depend on certain developments, including the duration and spread of the pandemic. COVID-19 presents potential material uncertainty and risk with respect to the Organization, its performance, and its financial results."

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

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"Nancy Griffith received severance in the amount of $97,500."

[Nancy Griffith is reported as "VP, Human Resources (former)," with total compensation of $250,353 in calendar year 2020 (Schedule J, Part II).]