HOPE 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.
HOPE International does not meet this Standard because:
- Two members (14%) out of the 14 member board of directors are compensated, one directly as a paid staff member, and one indirectly as the father of a paid staff member.
- The chair of the board of directors is indirectly compensated as the father of a paid staff member.
In response to this finding, the charity stated:
"The board chair's daughter was hired at HOPE as a qualfied, competent HR professional. She currently works only a few hours per week."
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.
HOPE International does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization?s performance and effectiveness and determining future actions required to achieve its mission.
Standard 16 (Annual Report)
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
HOPE International does not meet this Standard because the 2019 annual report did not include:
- Total expenses for each program in the same categories that appear in the organization’s financial statements (overseas entities and United States entitites).
HOPE International meets the remaining 17 Standards for Charity Accountability.
HOPE International is a Christian faith-based organization focused on alleviating physical and spiritual poverty through microenterprise development. The organization's vision is to enable sustainable economic development that results in change in the lives of people living in poverty. HOPE International accomplishes its vision by providing discipleship, biblically-based business training, savings services, and small loans to families in poverty and by actively partnering with local churches. The organization currently provides services in Burundi, the Dominican Republic, East Asia, Haiti, Malawi, Moldova, Paraguay, Peru, Philippines, the Republic of Congo, Romania, Russia, Rwanda, South Asia, Ukraine, Zambia and Zimbabwe.
For the year ended December 31, 2019, HOPE International's program expenses were:
Overseas entities |
$15,012,603 |
United States entities |
$7,404,129 |
Total Program Expenses: |
$22,416,732 |
-
Chief Executive
Peter Greer, President and Chief Executive Officer
-
Compensation*
$179,123
-
Chair of the Board
Jeffrey Rutt
-
Chair's Profession / Business Affiliation
President, Keystone Custom Homes and Founder, HOPE International
-
Board Size
14
-
Paid Staff Size
126
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements
Fundraising costs were 12% of related contributions. (Related contributions, which totaled $19,671,765, 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 HOPE International's audited financial statements - consolidated for the year ended December 31, 2019.
Source of Funds |
Contributions |
$16,207,183 |
Interest income |
$9,284,517 |
Special events, net |
$3,414,582 |
Investment return designated for current operations |
$666,528 |
Other income |
$187,241 |
Equity contribution from noncontrolling shareholder |
$50,000 |
Rental revenue, net |
$11,221 |
Total Income |
$29,821,272 |
- Programs: 84%
- Fundraising: 9%
- Administrative: 7%
Total Income |
$29,821,272 |
Program expenses |
$22,416,732 |
Fundraising expenses |
$2,307,803 |
Administrative expenses |
$2,016,267 |
Other expenses |
$0 |
Total expenses: |
$26,740,802 |
Income in Excess of Expenses |
$3,080,470 |
Beginning Net Assets |
$25,430,272 |
Other Changes In Net Assets |
$200,629 |
Ending Net Assets |
$28,711,371 |
Total Liabilities |
$21,734,290 |
Total Assets |
$50,445,661 |
Note: In the financial section above, "other changes in net assets" refers to a net realized gain on foreign currency transactions ($180,167) and a gain on foreign currency translation ($20,462).