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CHARITY REVIEW
Issued: April 2026 Expires: April 2028

Pencils of Promise

Standards Not Met
Standards Not Met
1 6 7 12 16
1115 Broadway, 12th Floor
New York, NY, 10010

Standards For Charity Accountability

Governance

  1. Board Oversight
  2. Board Size
  3. Board Meetings
  4. Board Compensation
  5. Conflict of Interest

Measuring Effectiveness

  1. Effectiveness Policy
  2. Effectiveness Report

Finances

  1. Program Expenses
  2. Fundraising Expenses
  3. Accumulating Funds
  4. Audit Report
  5. Detailed Expense Breakdown
  6. Accurate Expense Reporting
  7. Budget Plan

Fundraising & Info

  1. Truthful Materials
  2. Annual Report
  3. Website Disclosures
  4. Donor Privacy
  5. Cause Marketing Disclosures
  6. Complaints

Pencils of Promise does not meet the following 5 Standards for Charity Accountability:

Standard 1 (Oversight of Operations and Staff)
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

PoP does not meet this Standard because its board of directors does not:

  • Review the performance of the Chief Executive Officer at least once Every 2 Years.

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.

PoP does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least Every 2 Years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

PoP does not meet this Standard because:

  • The organization has not completed an effectiveness assessment in the last two years.

Standard 12 (Detailed Functional Breakdown of Expenses)
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

PoP does not meet this Standard because, in the organization’s financial statements for the year ended December 31, 2024, the detailed functional breakdown of expenses:

  • Did not include a detailed breakdown of expenses for the organization's major program categories (School Builds, Teacher Support, and WASH).

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.

PoP does not meet this Standard because the organization's 2024 annual report did not include:

  • A roster of the board of directors.
  • The audited financial information from the organization's 2024 audited financial statements.

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: 3, 19

Pencils of Promise meets the remaining 13 Standards for Charity Accountability.

Stated Purpose:
"to create schools, programs and global communities around the common goal of access to quality education for all."

Year, State Incorporated:
2008, CT

Pencils of Promise (PoP) reports that the organization's programs are primarily to support public primary school teachers and students with learning in the classroom. PoP currently partners with local communities and governments in Ghana, Guatemala, and Laos to build safe classroom infrastructure and improve student attendance. The organization also provides primary school teachers with digital learning resources, workshop trainings, and coaching sessions. To monitor program effectiveness, PoP states that it periodically analyzes student test scores, and visits classrooms to take observations and interviews. Additionally, PoP reports that through its WASH program, the organization builds water filters, handwashing stations, and bathrooms for students and teachers. The organization states that staff members visit classrooms twice per month during the school year to teach lessons on water, sanitation, and hygiene for students, teachers, and school administrators.

For the year ended December 30, 2024, Pencils of Promise's program expenses were:

Program services $3,468,776
Total Program Expenses $3,468,776

Chief Executive
Leslie Engle, Chief Executive Officer

Compensation*
$176,800

Chair of the Board
Adam Braun

Chair's Profession / Business Affiliation
Co-Founder and Chief Executive Officer, Clarasight

Board Size
11

Paid Staff Size
63

*2025 compensation, as reported by the organization, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Note 1: Ms. Engle's compensation information does not cover the full fiscal year. Ms. Engle assumed the position of Chief Executive Officer in February 2025.

Note 2: As reported by the organization, Julie Baker, Chief Development Officer, was the highest paid employee, receiving $186,550 in compensation in 2025.

Method(s) Used:
Direct mail appeals, Invitations to fund raising events, Grant proposals, Internet, Planned giving arrangements, Cause-related marketing (affinity credit cards, consumer product sales, etc.), Membership appeals, Workplace Giving, Cryptocurrency

Fundraising costs were 12% of related contributions. (Related contributions, which totaled $2,824,002, 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 Pencils of Promise's audited financial statements for the year ended December 30, 2024.

Source of Funds
Contributions $2,472,834
Special events, net $333,704
In-kind contributions $17,464
Program income $1,096
Other income $283
Total Income $2,825,381

Programs: 88% Fundraising: 9% Administrative: 4%

Total Income $2,825,381
Total expenses: $3,963,122
  Program expenses $3,468,776
  Fundraising expenses $340,364
  Administrative expenses $153,982
  Other expenses $0
Income in Excess of Expenses $-1,137,741
Beginning Net Assets $1,783,928
Other Changes In Net Assets $-4,386
Ending Net Assets $641,801
Total Liabilities $583,963
Total Assets $1,225,764

Note 1: As noted in the above financial section, "other changes in net assets" refers to a loss on foreign currency exchange.

Note 2: According to the organization's 2024 audited financial statements, PoP received in-kind contributions totaling $17,464 in the form of donated water purifying equipment.

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the International Association of Better Business Bureaus.

This report is not to be used for fundraising or promotional purposes.

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Report completed by:
BBB Wise Giving Alliance