Opportunity International

CharityWatch's rating of Opportunity International (Opportunity) also includes the financial activities of the Opportunity affiliates consolidated in its audited financial statements for the fiscal year ended September 30, 2021, including Opportunity Transformation Investments. All intercompany transactions have been eliminated in the audit consolidation.

"Accounts of only the majority owned subsidiaries—banks and nongovernmental organizations—of Opportunity are included in the [audited] consolidated financial statements," according to Note 1 of the Opportunity International consolidated audit of September 30, 2021. Therefore, the financial activities of Opportunity's local "Implementing Partners" and "support member" organizations that operate independently and are not legal subsidiaries of Opportunity are not consolidated in the audited financial statements, nor are they included in CharityWatch's rating of Opportunity International.

According to the Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 7, Discontinued Operations):

"Because banking activities are a major part of OTI's [Opportunity Transformation Investments'] operations and financial results, OTI has determined that the decision to divest of majority ownership positions in banks represent a strategic shift. Accordingly, the assets and liabilities of the banking activities located in Ghana and Serbia have been segregated and reported as held for sale in the [audited] consolidated statement of financial position as of September 30, 2021... Furthermore, all banking activities have been reported as discontinued operations in the [audited] consolidated statement of activities for all periods presented. A decrease of net assets of $9,550,614 was recorded in 2021 on the sale of shares and deconsolidation of Opportunity Serbia."

[...]

"On November 10, 2020, the shareholders signed an agreement to sell 25% of the shares of Opportunity Bank Ghana to an unrelated third party. The agreement is subject to the approval of the Bank of Ghana, which is expected to occur within a reasonable timeframe.

"In accordance with mutually agreed revisions to the by-laws of Opportunity Nicaragua, Opportunity no longer controls Opportunity Nicaragua effective October 1, 2020 and the financial statements of Opportunity Nicaragua are not included in the 2021 [audited] consolidated financial statements of Opportunity. The deconsolidation of Opportunity Nicaragua resulted in a decrease of $1,590,508 in net assets."

As a result of its "discontinued operations for the year ended September 30, 2021", Opportunity reports a "Net gain (loss) attributable to OTI" in the amount of $(5,895,511).

According to the Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 2 re: Revenue and Expense), Opportunity received "in-kind support for contributed equipment and contributed professional services" in fiscal 2021 on which it placed a total value of $195,575.

[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 Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 8, Deferred Revenue and Notes Payable):

"In 2021 and 2020, Opportunity received $1,068,700 and $994,200 Paycheck Protection Program loans under the CARES [Coronavirus Aid, Relief, and Economic Security] act [sic]. The loans are classified as conditional grants. $1,068,700 and $994,200 is included in deferred revenue as of September 30, 2021 and 2020, respectively. The proceeds of the loans were used for payroll and eligible expenses per the loan agreements. The $994,200 loan amount forgiven on March 9, 2021 is included in 2021 government grant revenue..."

According to the Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 12, Related-Party Transactions):

"Included in program services in the [audited] consolidated statement of activities are grant expenses of $5,365,618 and $5,539,270 in 2021 and 2020, respectively, which relate to disbursements made by Opportunity to its affiliated member organizations."

[The $5,365,618 in grant disbursements made by Opportunity to its affiliated member organizations, noted above, represents approximately 25% and 20% of Opportunity's cash-based program expenses and total expenses, respectively, in fiscal 2021.]

According to the Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 14, Subsequent Events, Investment in Other Institutions):

"In January 2022, Opportunity converted a $100,000 note receivable and $500,000 of guarantee funds to equity in Opportunity Bank Uganda. The $600,000 plus an additional investment of $275,000 increased OTI's [Opportunity Transformation Investments'] ownership to 46.4% of outstanding shares of Opportunity Bank Uganda."

According to the Opportunity International and Affiliates consolidated audit of September 30, 2021 (Note 2 re: Risks and Uncertainties):

"The spread of COVID-19 is worldwide, dislocating the capital markets and affecting every industry. As of May 17, 2022, Opportunity has effectively responded to the pandemic by maintaining business continuity. Opportunity further believes that it is well-positioned to weather current market volatilities and business disruptions related to the pandemic. However, there is considerable uncertainty around both the severity and the duration of the COVID-19 outbreak, and for that reason the future financial and other impacts of the pandemic cannot reasonably be estimated at this time."

According to the Opportunity International (OIUS) tax filing for the fiscal year ended September 30, 2021, OIUS includes in its reporting for Compensation Information re: Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees, "Bonus & incentive compensation" paid to seven individuals, including $292,320 paid to Atul Tandon, CEO. The reported total compensation in calendar year 2020 for Atul Tandon is $710,716. The other six reported "Bonus & incentive compensation" payments range from $80,000 to $10,000, with associated total compensation ranging from $322,059 to $198,084 (IRS Form 990, Schedule J, Part II).