MedGlobal

CharityWatch is unable to provide a letter grade rating of MedGlobal at this time due to our specific concerns about the charity's financial reporting. For this reason we have assigned it a "?" rating for its fiscal 2022 financial year based on our analysis of its IRS Tax Form 990 and audited financial statements for that period. 

CharityWatch contacted MedGlobal on February 27th, 2024 via email with questions about its financial reporting for its fiscal year ended 12/31/2022, as reflected in its IRS tax Form 990 and audited financial statements. We followed up on March 7th and 8th 2024 via mail and email, respectively. While the charity did respond to our inquiry, as of September 3rd, 2024, it has not yet provided responses to our questions that include enough detail for purposes of judging how efficiently or responsibly the charity is operating. 

During our analysis of MedGlobal's audited financial statements we noted that approximately $5.9 million worth of donated "Drugs and medical supplies" were received and distributed during the fiscal year. However, we also noted that the charity reports in its tax filing for the same year that it gave out $0 in "grants and other assistance," per its IRS Form 990, Part IX, Statement of Functional Expenses, lines 1 through 3. 

When a charity reports grants on lines 1 through 3 of its tax filing this triggers additional disclosures requiring the charity to provide more details about grant recipients, the nature and amount of each grant, and/or the region(s) to which grants were distributed. If a charity makes grants but fails to report them on the lines of the tax form designated for this purpose, additional disclosures on Schedule I and Schedule F may be inappropriately avoided, creating a problematic lack of public transparency. 

In its 2022 tax filing MedGlobal reports on Part IX, line 24a, "Other expenses" of $8,354,836, of which it claims $8,174,447 and $180,389 consisted of program-related and management-related "Medical Supplies & Expenses," respectively. On line 24b, "Other expenses," the charity reports $542,986 of "Grants." However, MedGlobal did not include either Schedule I or Schedule F in its 2022 tax filing. When CharityWatch inquired with MedGlobal about its unusual reporting choice, a member of the charity's accounting department supplied the following response that did not include an adequate explanation:

"We reported grants on line 24b as we receive grants from numerous domestic and foreign organizations, and through the scrutiny of our previous auditors we allocated this amount under 'Other Expenses.'" 

CharityWatch also asked MedGlobal if it intended to file an amended Form 990 for the fiscal period. A member of the charity's accounting department responded saying that they do not intend to file an amended Form 990 as they "did not report our grants expense in lines 1-3 of the 990 Part IX." 

CharityWatch asked MedGlobal if all or a portion of reported "Medical Supplies & Expenses" in the amount of $8,354,836 was given out in the form of grants (versus being used directly by the charity in its operations). A member of the charity's accounting department responded, saying simply that "This amount was specifically designated for supplies and equipment only, none of it was provided as grants." In its Statement of Program Service Accomplishments (IRS Form 990, Part III), MedGlobal reports that it "has helped build resilience for refugees, IDP, & vulnerable communities in disaster regions, low resource countries and fragile states through partnering with local NGOs, providing training, donating medical technology & supplies and providing direct medical care around the world." Given this description and the lack of detail in MedGlobal's response to CharityWatch's inquiry, it is unclear if all or a portion of the $8,354,836 in reported "Medical Supplies & Expenses" consisted of grants for which the IRS requires additional disclosures on Schedules I and F. 

During our analysis of MedGlobal's fiscal 2022 IRS Form 990 we also noted that the charity reported $1,801,140 in "Fees for Services - Other" (Part IX, line 11g), of which it allocated $921,430 to program expense. This amount accounts for 21% of MedGlobal's total cash program spending for 2022. CharityWatch communicated to MedGlobal that because this expense accounts for a significant portion of its cash program spending for the year it is essential that we understand what types of expenses are included in this line and the reasoning behind how they were allocated. 

CharityWatch also noted that in Form 990, Part VII, Section B, one independent contractor is listed but the required compensation reporting was omitted. "Grant Writer," which would be a fundraising expense, was listed in the description of services given. CharityWatch asked MedGlobal to provide the missing information and asked the charity if it intended to file an amended Form 990 with the IRS. We also asked what comprises the $921,430 in "Fees for Services - Other" cited above. Specifically, we asked if this amount included any joint costs, grant writing expenses, professional fundraising fees, professional fundraiser or consulting fees, or other expenses related to raising contributions. 

A member of MedGlobal's accounting department provided the following responses:

"Our grants writer, Diana Sufian, was paid $154,635.90 in 2022 for her assistance in procuring grants in multiple different countries. She was paid via paper check through our online banking systems..."

The $921,430 "amount mainly covers expenses linked to our partner services and their operations. This amount does not incorporate any costs linked to fundraising efforts or related charges."

The charity communicated that it does not intend to file an amended 2022 Form 990 with the IRS. 

According to the MedGlobal audit of December 31, 2022 (Note 1, Nature of Activities and Summary of Significant Accounting Policies, Donated Services):

"During the current year ended December 31, 2022, the Organization recorded $457,978 of donated time by medical professionals for work performed in developing countries."

According to the MedGlobal audit of December 31, 2022 (Note 1, Nature of Activities and Summary of Significant Accounting Policies, In-Kind Contributions):

"...For the year ended December 31, 2022, the Organization received donated medical supplies and equipment for its mission programs valued at $5,912,431."

In total, the Organization received donated services and in-kind contributions on which it placed a value of $6,370,409 during 2022. 

[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 MedGlobal audit of December 31, 2022 (Note 1, Nature of Activities and Summary of Significant Accounting Policies, Certain Vulnerabilities and Concentrations):

"The Organization's total public support and revenue for the year ended December 31, 2022 amounted to $13,090,970, of which $6,370,409 or 48% were donated goods and services. In addition, $2,274,099 or 28% of revenues was contributed by one donor. Decreased funding from [this] donor could have significant negative impact on the Organization's program and operations."

According to the MedGlobal 2022 tax filing re: Schedule O, Supplemental Information to Form 990 or 990-EZ:

Regarding Part VI, Section C, Line 19 (Availability of governing documents, conflict of interest policy, and financial statements available to the public during the tax year):

"No documents made available to the public."