One Acre Fund

CharityWatch's rating of One Acre Fund also includes the financial activities of the One Acre Fund subsidiaries that are consolidated in its audited financial statements for the fiscal year ended December 31, 2020.

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 2, Principles of Consolidation):

"The consolidated financial statements include One Acre Fund and Subsidiaries that are required to be consolidated and are related through shared management and directors. For the years ended December 31, 2020 and 2019, One Acre Fund and Subsidiaries includes One Acre Stichting (Netherlands); One Acre UK Limited (United Kingdom); One Acre Fund, a trust/charity in Malawi; One Acre Farmers Organization, a trust/nongovernment organization (NGO) in Nigeria; and One Acre Fund Private Limited, a private company incorporated India... All significant intercompany transactions are eliminated in consolidation."

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 7, Related-Party Transactions):

"The Organization grants permanent staff and staff members on fixed-term contracts of more than 12 months in good standing the ability to take out a cash loan, salary advance or non-cash loans of input or equipment. One Board member of the Organization is also an Executive Director at an entity that deals with the Organization. The Board member recluses himself from decision making discussions related to his employer and the Organization. Management believes these transactions are conducted at arm's length."

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 15, Concentration of Foreign Operations Risk):

"Contributions are raised globally, with a majority within the U.S. The nature of the Organization's program activities is to supply agricultural inputs, training and other services on credit in foreign countries. While foreign operations risk is somewhat diversified across countries, and is actively managed by the Organization, it remains reasonably possible that operations outside the U.S. could be disrupted due to political, economic or natural events, impacting the normal functioning of these programs. As of December 31, 2020 and 2019, the Organization has assets outside the U.S. with a carrying value of $99,513,779 and $86,978,829, respectively, primarily across four countries in East Africa, with the largest concentration in Kenya, which contains $40,911,342 and $41,321,910 of the Organization's assets as of December 31, 2020 and 2019, respectively."

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 21, Risks and Uncertainties – COVID-19):

"On January 30, 2020, the World Health Organization (WHO) announced a global health emergency because of a new strain of coronavirus (the COVID-19 outbreak) and the risks to the international community as the virus spreads globally... In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. 

"The Organization's operations are heavily dependent on grants from government and contributions from individuals and foundations to provide service to the farmers. Additionally, funding from governmental sources may be subject to budget modifications depending on appropriations by the source. The Organization has incurred, and is expected to incur for the foreseeable future, incremental and other COVID-19 pandemic-related expenses. 

"The full impact of the COVID-19 outbreak continues to evolve as of the date of this report [April 29, 2021]. As such, it is uncertain as to the full impact that the pandemic will have on the Organization's consolidated financial condition, liquidity and future results of operations. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry and workforce. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the COVID-19 outbreak. Nevertheless, the COVID-19 outbreak presents material uncertainty and risk with respect to the Organization, its performance and its financial results.

"Although the Organization cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, it may have an adverse effect on the Organization's results of future operations, financial position and liquidity in fiscal year 2021."

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 21, Risks and Uncertainties – CARES Act):

"On March 27, 2020, the President signed into law the CARES Act. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments...

"On December 27, 2020, the President signed the Consolidated Appropriations Act, 2021 (the Act), which includes $900 billion in stimulus relief as a result of the COVID-19 pandemic.

"On April 16, 2020, the Organization received funds under the PPP loan program in the amount of $1,710,600. The application for these funds requires the Organization to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Organization. This certification further requires the Organization to take into account the current business activity and the ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan funds, is dependent on the Organization having initially qualified for the loan and qualifying for the forgiveness of such loan based on its future adherence to the forgiveness criteria. The Organization has received the forgiveness of the full loan under the PPP during 2020. PPP loan forgiveness is reported as contributions within the [audited] consolidated statement of activities. 

"The Organization did not defer or delay any timely payment of payroll taxes during the quarter October 1, 2020 through December 31, 2020. Management continues to examine the impact that the COVID-19 outbreak and CARES Act may have on its business."

According to the One Acre Fund consolidated audit of December 31, 2020 (Note 22, Subsequent Events):

"The Organization's management has performed subsequent events procedures through April 29, 2021, which is the date the [audited] consolidated financial statements were available to be issued...

"On March 10, 2021, the President signed the $1.9 trillion American Rescue Plan Act into law. The Organization is currently evaluating the impact of this new regulation."

According to the One Acre Fund 2020 tax filing, One Acre Fund reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

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

"Ayanda Mngadi, Chief Financial Officer, received a change-of-control payment totaling $10,000..."

[The reported total compensation in 2020 for Ayanda Mngadi, Chief Financial Officer, is $96,037 (IRS Form 990, Part VII).]