On July 30, 2025, CharityWatch sent an inquiry to WE Charity USA, Tax ID#16-1533544, via U.S. mail requesting updated financial and governance information in order to reassess the nonprofit’s current “?” rating. The organization’s rating has remained incomplete due to past controversies involving entities associated with WE Charity USA, though CharityWatch notes that several years have passed since those events and it is seeking to base its assessment on more recent data. Request for Key Financial Documents
CharityWatch asked WE Charity USA to provide:
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A complete copy of its IRS Form 990 for the fiscal year ended August 31, 2024, including all schedules and attachments.
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A complete, signed copy of its audited financial statements, including notes, for the same fiscal year.
Questions on Affiliations with Me to We CharityWatch also requested clarification on whether WE Charity USA maintains any current affiliation with the for-profit entity Me to We. Specifically, it inquired about shared staff or resources, financial transactions between the two organizations during fiscal years 2023 or 2024, and any overlapping governance. Concerns Over Declining Contributions and Future Plans
WE Charity USA’s reported contributions dropped sharply from $8.7 million in fiscal 2022 to $1.73 million in fiscal 2023. CharityWatch asked whether the organization plans to continue operations or has any intention of winding down. Program Spending and Staffing Questions
In fiscal 2023, WE Charity USA reported no paid officers or key employees, yet claimed $3.66 million in domestic program spending. CharityWatch requested details about the nature of these programs and how they are managed without paid leadership. The letter also asked whether the organization engages in any reimbursement arrangements related to officer or director compensation. State Compliance Issues
CharityWatch cited potential state regulatory compliance concerns:
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New Mexico – Registration listed as “delinquent” as of July 1, 2025.
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New York – The most recent tax filing for FY 2022 was reportedly not received until July 11, 2025, and the latest available audit dates back to FY 2021.
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California – Listed as “Current – Awaiting Reporting” as of January 15, 2025, suggesting overdue documentation.
CharityWatch asked WE Charity USA to clarify the status of these filings, confirm current compliance in all states where it operates or solicits donations, and outline any steps being taken to address delinquencies.
WE Charity USA was asked to respond by August 14, 2025, or to contact CharityWatch to request more time. As of this date we have not yet received a response. Should We Charity USA respond in the future, we may update the organization's rating at that time.
As previously reported by CharityWatch: CharityWatch analyzed WE Charity's 2020 audited financial statements and IRS Form 990 tax filing for its U.S.-based legal entity (tax ID #16-1533544). CharityWatch is unable to rate WE Charity at this time in consideration of concerns raised about the charity by various media outlets related to the organization's governance, transparency, and accounting of claimed program accomplishments. These concerns may impact the reliability of WE Charity's financial reporting for purposes of determining how efficiently and effectively it uses donors' contributions.
Concerns Raised By Journalists:
According to an investigation conducted by journalists at the CBC program, The Fifth Estate: "WE Charity told a [Canadian] parliamentary ethics committee it had built hundreds of schools in Kenya with donors' money, but an unhappy donor told MPs [members of Parliament] he felt defrauded because another donor funded the same school he was told he had paid for."
"Recent news: WE Charity announces closure: September 9, 2020. Co-founders Craig and Marc Kielburger announce WE Charity’s Canadian operations will close down, with net proceeds from the asset sales transferred to a new foundation as an endowment for WE Charity’s programs in Kenya, Ecuador and China. At this time, the closure is only WE Charity’s Canadian operations not affecting WE Charity US, WE Charity UK, ME to WE social enterprise, or other WE entities." "DONOR ADVISORY: July 17, 2020, WE Charity has a nearly completely new board. Six of last year’s directors were replaced with four new directors, with Greg Rogers as the new board chair. In June 2020, one new director resigned."
"On June 25, 2020 for the COVID-19 pandemic response, the Canadian government awarded a $912m [million] contract to WE Charity to recruit, manage, and fund student volunteers. On July 3, WE Charity withdrew from this contract." Additional articles and media may be viewed here.
CharityWatch's Findings: In addition to WE Charity’s affiliation with other nonprofit organizations in the U.S. and elsewhere, WE Charity is also associated with the for-profit B Corporation, ME to WE Social Enterprises, Inc., through which WE’s co-founders receive employment income, according to an "independent assessment of certain topics related to WE Charity and ME to WE Social Enterprises, Inc.," dated May 23, 2019, posted on we.org. The financial statements of B Corporations are not a matter of public record. For this reason, CharityWatch is unable to verify the accuracy of the reported employment income amounts.
Charities are, however, required to report transactions among their related organizations on IRS Form 990, Schedule R, Related Organizations and Unrelated Partnerships, of their annual tax filing if they respond "Yes" to the following question: "Was the organization related to any tax-exempt or taxable entity? If 'Yes,' complete Schedule R, Part II, III, or IV, and Part V, line 1" (IRS Form 990, Part IV, line 34). WE Charity responded "No" to this question on its fiscal year 2020 and 2019 tax filings.
For purposes of Form 990, Schedule R, the IRS defines a related organization as "[a]n organization, including a nonprofit organization, a stock corporation, a partnership or limited liability company (LLC), a trust, and a governmental unit or other governmental entity...[that] stands, at any time during the tax year, in one or more of the following relationships to the filing organization (among others, as detailed at irs.gov):
- Parent – An organization that controls the filing organization.
- Subsidiary – An organization controlled by the filing organization.
- Brother/Sister – An organization controlled by the same person or persons that control the filing organization.
- Supporting Organization – An organization that carries out its exempt purpose by supporting other exempt organizations, usually other public charities, within the IRS's definitions of Type I, Type II, or Type III.
Whether or not transactions among WE Charity's related organizations meet the IRS's definitions of "control" and "related organizations" for the purposes of Form 990, Schedule R, it is clear that significant transactions did occur among them. WE Charity's audited financial statements for fiscal years 2020 and 2019 each report significant related party transactions between WE Charity and Me to We Foundation. The U.S. tax filings of WE Charity (tax ID #16-1533544) and ME to WE Foundation (tax ID #27-3338929) for fiscal years 2020 and 2019 analyzed by CharityWatch do not include a Form 990, Schedule R. On this schedule, charities are required to report the nature and amounts of certain financial transactions with related organizations, including transactions with related for-profit companies, if any.
WE Charity’s fiscal 2020 audited financial statements (Note 11, Related Party Transactions) disclose that the U.S. entity of WE Charity made payments to WE Charity – Canada in fiscal 2020 that amounted to $15,744,490. This $15.7 million is allocated to WE Charity’s program services expenses, at approximately $6.3 million and $9.4 million to international projects and domestic projects, respectively, according to the audited Statement of Functional Expenses. Other than the general descriptions of its international and domestic program services provided in audit Note 9 (Program Services), no additional details are reported about how the $15.7 million was expended.
WE Charity’s fiscal 2019 audited financial statements (Note 11, Related Party Transactions) disclose that the U.S. entity of WE Charity made payments to WE Charity – Canada in fiscal 2019 that amounted to $18,789,912. The $18.8 million is allocated to WE Charity’s program services expenses, at approximately $8.0 million and $10.8 million to international projects and domestic projects, respectively, according to the audited Statement of Functional Expenses. Other than the general descriptions of its international and domestic program services provided in audit Note 9 (Program Services), no additional details are reported about how the $18.8 million was expended.
"?" Rating of WE Charity by CharityWatch:
CharityWatch has assigned WE Charity a "?" rating for its fiscal year ended 8/31/2020 due to the above-cited concerns related to its governance, transparency, and accounting of program accomplishments. If additional information becomes available in the future that would allow us to provide a meaningful rating of WE Charity, we will update our information as we are able to assess that information. |