Mennonite Central Committee U.S. is not required to file an annual return (Form 990) with the IRS or state charity regulators because it is a religious organization. CharityWatch is therefore unable to provide salary information for this group. |
CharityWatch's rating of Mennonite Central Committee U.S. (MCC U.S.) includes the financial activities of the entities consolidated in the MCC U.S. and Subsidiaries audit for the fiscal year ended March 31, 2022. This includes the accounts of MCC U.S., as well as the following: Mennonite Central Committee East Coast; Mennonite Central Committee Central States, Inc.; Mennonite Central Committee Great Lakes, Inc.; and West Coast Mennonite Central Committee, Inc. The audited consolidated financial statements "also include the Organization's share of assets, liabilities and activities of the international operations as outlined by the covenant between MCC U.S. and Mennonite Central Committee Canada (MCCC)," according to Note 1. All material interorganizational transactions and balances have been eliminated in the audit consolidation.
"MCCC [MCC Canada] and MCC U.S. entered into a covenant to share the operations and all related assets including property, relationships, reputation, knowledge, experience and supporting systems of the MCC international programs (internally referred to as Shared Program). It is intended that the share that each national entity owns under this arrangement in each country program will be an undivided share. "Both MCCC and MCC U.S. have agreed to collaborate and work together in the operation of the Shared Program so that it will be seen as one integrated MCC Shared Program. This commitment does not preclude either entity from agreeing occasionally to fund and manage on its own an entire project or an entire country program. In addition to the international program, MCCC and MCC U.S. agreed to resource and manage other programs on a shared basis." |
According to the Mennonite Central Committee U.S. (MCC U.S.) and Subsidiaries audited Consolidated Statement of Activities for the year ended March 31, 2022, the Organization received "Material resources donated in-kind" on which it placed a total value of $4,546,198. According to the MCC U.S. and Subsidiaries fiscal 2022 consolidated audit (Note 1 re: Nature of the Organization): "Gifts-in-kind include donations of items such as school, relief and health kits, blankets and other material aid." [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 Mennonite Central Committee U.S. and Subsidiaries consolidated audit of March 31, 2022 (Note 9, Paycheck Protection Program loan): "In April 2020, the Organization secured and received funding totaling $1,480,018 from the Paycheck Protection Program, a government program authorizing loans to small businesses to cover payroll costs, rent and utility costs over an eight-week period. The loan might have become due if the Organization used funds for anything besides these costs or did not incur enough of the qualified costs. The Organization received forgiveness for the full balance of the funding received and, as such, has recorded $1,480,018 as grant income in the March 31, 2022 [audited] consolidated statement of activities." |
According to the Mennonite Central Committee U.S. (MCC U.S.) and Subsidiaries consolidated audit of March 31, 2022 (Note 1 re: Nature of the Organization): "Much of the Organization's support comes from a variety of generous individuals and churches. MCC U.S. is strongly supported by Mennonite, Brethren in Christ and Amish communities of faith, as well as by many churches and individuals who are not Anabaptist. MCC U.S. thrift shops and relief sales...together provided approximately 20% ($9,897,715) and 15% ($7,014,725) of the Organization's total revenue for the years ended March 31, 2022 and 2021, respectively. Volunteer-initiated events from bike rides to bake sales provide consistent ongoing financial support..." |
According to the Mennonite Central Committee U.S. (MCC U.S.) and Subsidiaries consolidated audit of March 31, 2022 (Note 15, Related parties): "The Organization is named in Ten Thousand Villages' (TTV) adopted restated bylaws effective October 29, 2016, whereby the number of MCC U.S. appointed representatives shall at all times be one (1) less than a majority of the then current number of directors of TTV. "TTV has entered into an agreement with the Organization, whereby the Organization guarantees TTV's bank line of credit and mortgage loans, which were entered into in January 2017. The Organization is committed to the sustainable livelihoods of artisans who produce the TTV's products, as well as the long-term stewardship of their constituency's investment in significant amounts of volunteer and financial resources in support of the ministries of the Organization and TTV. "As of March 31, 2022, MCC U.S. is contingently liable, as guarantor, with respect to $7,781,052 of indebtedness of TTV. At any time, should TTV fail to pay debt payments when due, MCC U.S. will be obligated to perform under the guarantee by primarily making the required payments, including late fees and penalties. The maximum potential amount of future payments that the Company is required to make under the guarantee is $10,372,332. The Organization's guarantee is secured by two properties that were appraised at a combined value of $8,800,000 during the most recent appraisal, as well as being secured by the inventory and personal property of TTV. The Company feels that the guarantee on the loan is substantially secure with these properties. TTV is current with their debt payments at March 31, 2022. As of February 2018, TTV has consented to the execution of a contingent mortgage to secure its obligation to MCC U.S. arising from MCC U.S.'s guarantee of payment or performance of TTV's obligations to Fulton Bank." |
According to the Mennonite Central Committee U.S. and Subsidiaries consolidated audit of March 31, 2022 (Note 18, Impact of COVID-19 pandemic): "In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China. The World Health Organization has...characterized COVID-19 as a pandemic. ... The spread of this virus caused business disruption to the Organization beginning March 2020, due to state government-imposed shutdowns of business and other results of the illness. The Organization implemented cost reduction measures during 2020 and made use of federal stimulus funds. Although COVID-19 has been a major interruption of the Organization's international programs, it has found ways to continue implementation of programs and also focus on those made most vulnerable by COVID-19. While the Organization expects this matter may continue to negatively impact its results, the extent of the impact of COVID-19 on the Organization's operational and financial performance will depend on future developments, including the duration and spread of the outbreak and related travel advisories and restrictions and the impact of COVID-19 on overall demand for the Trust's [sic] services, all of which are highly uncertain and cannot be predicted." |
