FINCA International does not meet the following 3 Standards for Charity Accountability:
Standard 4 (Compensated Board Members)
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.
FINCA International does not meet this Standard because:
- Three members out of the 15 member board of directors (20%) are compensated either directly or indirectly.
- The chair of the board is compensated directly.
Standard 6 (Board Policy on Effectiveness)
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
FINCA International does not meet this Standard because:
- The organization's effectiveness assessment policy does not specify that this assessment will take place at least once every two years.
Standard 11 (Financial Statements)
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.
FINCA International does not meet this Standard because:
- The organization's 2019 audited financial statements were not prepared in accordance with Generally Accepted Accounting Principles (GAAP).
According to the organization's auditors, the preparation and presentation of the audit were conducted in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). BBB WGA notes that IASB and the Financial Accounting Standards Board (FASB) are separate accounting bodies with differences in their guidelines, and FINCA International was unable to provide BBB WGA with a statement from their auditors that the audit report shared does not differ materially from a GAAP presentation based on FASB standards.
The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability:
1
FINCA International meets the remaining 16 Standards for Charity Accountability.
FINCA International reports that it has microfinance operations in 20 developing countries through subsidiaries in Latin America, Africa, Eurasia, and the Middle East and South Asia. The subsidiaries principally provide loans to individuals and groups that lack access to traditional financial institutions, and consist of agricultural loans, education loans, and other microfinance loans. FINCA International provides other financial services needed by the working poor, including savings deposits, remittances, and micro insurance. According to FINCA International, approximately half of the organization's clients worldwide are women. Additionally, the organization states that it has implemented two programs aimed at solutions to poverty striving to bring basic services to low-income families and their communities. One program is in the the area of distribution and financing of energy products to the bottom of the pyramid (BOP) customers in Uganda. The second program, based in the United States and Uganda, provides early-stage capital, and pre- and post-investment support to launch and scale social enterprises and promote products and services for people at the BOP.
For the year ended December 31, 2019, FINCA International's program expenses were:
| Program services |
$306,520,939 |
| Total Program Expenses: |
$306,520,939 |
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Chief Executive
Rupert Scofield, President and Chief Executive Officer
-
Compensation*
$442,713
-
Chair of the Board
Rupert Scofield
-
Chair's Profession / Business Affiliation
President and Chief Executive Officer, FINCA International
-
Board Size
15
-
Paid Staff Size
37
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Membership appeals, Planned giving arrangements, Telephone appeals
Fundraising costs were 17% of related contributions. (Related contributions, which totaled $23,211,268, are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on FINCA International's audited financial statements - consolidated for the year ended December 31, 2019.
| Source of Funds |
| Interest income |
$293,905,083 |
| Grants and donations |
$23,211,268 |
| Other operating income |
$22,295,807 |
| Non-operating income |
$1,122,195 |
| Total Income |
$340,534,353 |
- Programs: 98%
- Fundraising: 2%
- Administrative: Less than 1%
| Total Income |
$340,534,353 |
| Program expenses |
$306,520,939 |
| Fundraising expenses |
$3,980,230 |
| Administrative expenses |
$2,332,429 |
| Other expenses |
$0 |
| Total expenses: |
$312,833,598 |
| Income in Excess of Expenses |
$27,700,755 |
| Beginning Net Assets |
$243,115,434 |
| Other Changes In Net Assets |
$-19,517,246 |
| Ending Net Assets |
$251,298,943 |
| Total Liabilities |
$911,134,358 |
| Total Assets |
$1,162,433,301 |
Note 1: According to FINCA, in 2019, the organization received in-kind contributions totaling $1,052,224 in the form of software licensing ($452,030), legal services ($317,443), consulting ($152,804), and advertising services ($129,947).
Note 2: In the financial section above, "other changes in net assets" refers to movement in investment revaluation reserve ($193,703), benefit plan fair value adjustment (-$206,210), loss on financial assets and liabilities at FVTPL (-$1,010,115), foreign exchange loss (-$1,056,758), exchange differences on translation of foreign operations (-$5,583,350), and income tax expense (-$11,854,516).