CharityWatch's rating of Save the Children is for the U.S. based Save the Children Federation, a 501(c)(3) public charity (tax ID #06-0726487). Although they are related entities and are included in the Save the Children 2020 consolidated audit, CharityWatch's rating of Save the Children does not include the financial activities of either the Save the Children Action Network, Inc. (SCAN) (tax ID #46-5465189) or the SCUS Head Start Programs, Inc. (Head Start) (tax ID #45-3672468). SCAN is a 501(c)(4) tax-exempt organization that was established in 2014 and operates exclusively for purposes related to the social welfare of children. Head Start is a 501(c)(3) public charity that began operations in 2012 and delivers early childhood development programming.
According to the Save the Children 2020 tax filing, Save the Children reports making a cash grant in the amount of $4,392,978 to Save the Children Action Network (SCAN), its related 501(c)(4) social welfare entity (IRS Form 990, Schedules I & R). [Neither Save the Children Action Network nor SCUS Head Start Programs are rated separately by CharityWatch at this time.]
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According to the Save the Children (SCUS) consolidated audit of December 31, 2020 (Note 1, Organization and Purpose): "SCUS is a member of Save the Children Association (SCA), a Swiss membership organization. SCA currently has 29 independent, autonomous, nonprofit, private voluntary membership organizations that bear the name Save the Children or a related designation (the Members). SCA created Save the Children International (SCI), a United Kingdom based charitable entity, of which SCA is the sole member, and therefore, SCI is a wholly owned subsidiary of SCA. "In 2011, SCUS, in concert with the 29 other independent Members, entered into a series of agreements to create a single global program delivery platform through SCI. Under these agreements, SCUS works with other Members through the SCI platform to deliver nondomestic programs to benefit children. ... The costs of implementing programs through the SCI structure are covered by program funds raised by SCUS (and other Members) and the allocation of administrative expenses among the Members. "In addition to the program delivery platform and cost-sharing, SCUS and other Members agreed to transfer certain in-country program assets to SCI to facilitate the delivery of programs overseas. SCUS started to transition country offices in 2011. As of December 31, 2020, one country office had not yet transitioned to SCI. SCUS is continuing to work towards transitioning this office to SCI and currently is operating under a pre-transition agreement."
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According to the Save the Children (SCUS) 2020 tax filing (IRS Form 990, Schedule M), SCUS reports receiving donated in-kind goods on which it placed a value of approximately $71.95 million, including approximately $45.16 million in donated food inventory. SCUS also reports receiving in-kind donated services and use of facilities in 2020 on which it placed a value of approximately $55.11 million (IRS Form 990, Schedule D, Part XI). According to the SCUS 2020 consolidated audit (Note 2(d)), approximately $54.43 million of the value consisted of "in-kind media and broadcast time...in the form of public service announcements." [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.]
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According to the Save the Children (SCUS) consolidated audit of December 31, 2020 (Note 14, Commitments and Contingencies, Government of Bolivia versus Save the Children (Bolivia)):
"SCUS is a cooperating sponsor with the USAID [United States Agency for International Development] in connection with USAID's Food for Peace (USAID/FFP) commodity distribution and monetization program in Bolivia. Due to a long unresolved disagreement between the Government of Bolivia and the Government of the United States and in contravention of bilateral agreements between the two governments, the Government of Bolivia began asserting claims in December 2008 of past due taxes on shipments imported by SCUS and other NGOs working with the USAID/FFP program. As of December 31, 2020, approximately 60 separate claims related to shipments between 2002 and 2009, with a value of approximately $16 [million] are pending before Bolivian courts. SCUS has filed objections and is defending each claim. Additionally, SCUS maintains no material assets in country. As of December 31, 2020, no amounts have been accrued relating to this matter due to the uncertainty of the outcome."
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According to the Save the Children consolidated audit of December 31, 2020 (Note 2(r), COVID-19): "The spread of coronavirus (COVID-19) around the world caused significant volatility in the U.S. and international markets. There continues to be significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies. The Organization has continued to operate in this volatile environment, without material impact to financial position and changes in net assets in 2020. "In July 2020, the Organization signed a commitment letter to SCI [Save the Children International] in response to potential financial impacts of COVID-19. Upon SCI board determination and pursuant to the Save the Children Member Contribution Agreement, if SCI requests a top-up of the reserves for continuity of programming, the Organization would fulfill the commitment up to an amount not to exceed $15 [million]. There were no such requests in 2020." |
According to the Save the Children 2020 tax filing, Save the Children reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III): Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a): "The following individual received a severance payment during 2020: Philip DiSanto: [$]102,745." [Philip DiSanto is reported as "VP, IT & Build Ops thru 6/1/2020," with total compensation of $288,119 in 2020 (Schedule J, Part II).]
Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7): "Lump-sum payments (as a percentage of base salary) based on a combination of individual performance and organizational performance were made to eligible individuals. Schedule J, Part II, Column B(ii) ['Bonus & incentive compensation'] reflects these payments to Soeripto, Shriver, Roberti, Barth, Klosson, Pollock-Berry, Seam, Bonifacio, DiSanto, Milne, White, Zorio, Williamson, Gamache, Christian, Ramm, Cartlidge and O'Connell."
Save the Children reports "Bonus & incentive compensation" payments to 21 individuals in 2020 (three more than the number of individuals listed above). Eighteen individuals received "Bonus & incentive compensation" in amounts ranging from $26,010 to $10,148; three individuals received $300 each. The reported total compensation in 2020 for these 21 individuals ranged from $521,332 to $158,187 (IRS Form 990, Schedule J, Part II). |