National Center for Missing & Exploited Children

According to The National Center for Missing & Exploited Children (NCMEC) audit of December 31, 2020 (Note A, Organization, Donated Equipment, Materials and Services), NCMEC reports receiving donated in-kind goods and services in 2020 on which it placed a total value of $6,723,415. Of this amount, $5,626,545 is reported as donated "Software, licenses, and equipment."

[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 National Center for Missing & Exploited Children (NCMEC) audit of December 31, 2020 (Note A, Organization, Contributions, Grants and Contracts Revenue):

"NCMEC's outstanding conditional contributions, which are to be recognized as revenue as conditions are met, totaled approximately $37.7 million and $34.8 million at December 31, 2020 and 2019, respectively. Of the $37.7 million in conditional contributions existing as of December 31, 2020, $0.3M of this amount is a conditional contribution from the Paycheck Protection Program for which funds have already been received and are being accounted for as deferred revenue within the accounts payable and accrued expenses financial statement line."

According to The National Center for Missing & Exploited Children (NCMEC) 2020 tax filing, NCMEC reports re: Business Transactions with Interested Persons a transaction in the amount of $87,046 involving Callahan Walsh. Callahan Walsh is reported as being "related to founders," and the transaction is described as compensation (IRS Form 990, Schedule L, Part IV).

In connection with the transaction, NCMEC also reports: "The employment relationship between the organization and the employee listed is independent of the family relationship with the interested person of the organization. All transactions are deemed arm's length" (IRS Form 990, Schedule L, Part V).

According to The National Center for Missing & Exploited Children (NCMEC) audit of December 31, 2020 (Note Q, Building Held for Sale):

"On October 8, 2020, NCMEC sold its California building for $1,278,888, which resulted in a gain on the building in the amount of $1,101,023. Further, following adjustments, commission, title charges, escrow charges, and taxes, NCMEC received $1,239,810 from the buyer on October 8, 2020."

According to The National Center for Missing & Exploited Children (NCMEC) audit of December 31, 2020 (Note I, Commitments, Risks and Contingencies, COVID-19 Pandemic):

"In March 2020, the World Health Organization declared the outbreak of a novel coronavirus ('COVID-19') as a pandemic... The COVID-19 pandemic is having a broad impact on commerce and financial markets around the world. The extent of the impact of COVID-19 on NCMEC's operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, which at present cannot be determined. Accordingly, the extent to which COVID-19 may impact NCMEC's financial position, changes in net assets and cash flows is uncertain and the accompanying [audited] financial statements include no adjustments relating to the effects of this pandemic. NCMEC has and will continue to make every effort to mitigate the current and future financial impacts of COVID-19."