Project HOPE

According to the Project HOPE (the Foundation) consolidated audit of December 31, 2021 (Note 5, Inventory), the Foundation "received donated inventory of health-related publications, pharmaceuticals, medical equipment, and supplies" on which it placed an estimated value of approximately $47,500,000. "During the same year, donated supplies, publications, pharmaceuticals, and medical equipment totaling approximately $51,100,000 were used in the Foundation's operations..."

In addition, according to the Project HOPE audited Consolidated Statement of Activities and Changes in Net Assets for the year ended December 31, 2021, Project HOPE received in-kind "Donated services" on which it placed a value of approximately $937,000.

[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 Project HOPE (the Foundation) consolidated audit of December 31, 2021 (Note 8, Paycheck Protection Program Promissory Note):

"During the year ended December 31, 2020, the Foundation received a PPP [Paycheck Protection Program] loan in the amount of $2,662,500. The PPP loan program was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is administered by the Small Business Administration (SBA). Under the terms of this program, the loan may be fully or partially forgiven if the loan proceeds are spent on qualifying expenses and if staffing level and salary maintenance requirements are met. The Foundation may use the funds on qualifying expenses over a covered period of up to 24 weeks. At the conclusion of the covered period, any balance that is not forgiven by the SBA will be repaid over a period of two years from the date of disbursement, with interest accruing at a rate of 1 percent and monthly payments of principal and interest beginning 10 months after the conclusion of the covered period.

"Any request for forgiveness is subject to review and approval by the lender and the SBA... The Foundation received notification from the SBA of forgiveness of the entire loan amount on June 9, 2021. Accordingly, the Foundation has recognized $2,662,500 received under the PPP loan program as gain on debt forgiveness on the [audited] consolidated statement of activities and changes in net assets.

"Although management considers it probable that the Foundation was initially eligible for the loan and subsequent forgiveness, the SBA has the ability to review the Foundation's loan file for a period subsequent to the date the loan was forgiven and could request additional documentation to support the Foundation's initial eligibility for the loan and the request for forgiveness. In the event the SBA subsequently determines the Foundation did not meet the initial eligibility requirements for the PPP loan or did not qualify for forgiveness, the SBA may pursue legal remedies at its discretion."

According to the Project HOPE (the Foundation) consolidated audit of December 31, 2021 (Note 2 re: Investments):

"Investments are reported at management's estimate of fair value in the [audited] consolidated statement of financial position. Fair value is determined by using quoted market prices on marketable securities.

"The Foundation's investments, in general, are exposed to various risks, such as interest risk, credit risk and overall market volatility risks. In addition, due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near-term and those changes could materially affect the amounts reported in the statement of financial position."

According to the Project HOPE consolidated audit of December 31, 2021 (Note 2 re: Subsequent Events):

"Subsequent to year end, the Foundation's investment portfolio, including pension plan assets, has incurred a significant decline in fair value, consistent with the general decline in financial markets. However, because the values of individual investments fluctuate with market conditions, the amount of losses that will be recognized in subsequent periods, if any, cannot be determined."

According to the Project HOPE 2021 tax filing, Project HOPE reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, line 7):  "Performance based bonuses were paid during 2021."

Project HOPE reports "Bonus & incentive compensation" payments to four individuals in 2021 in the amount of either $1,500 (two individuals) or $1,000 (two individuals), respectively. The associated reported total compensation for the four individuals in 2021 ranges from $263,885 to $179,258 (IRS Form 990, Schedule J, Part II).