Food for the Hungry
Standards Not Met
- 1
- 14
Standards Not Met
- 1
- 14
Standards For Charity Accountability
Governance
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Board Oversight
Standard 1 (Oversight of Operations and Staff)
Description
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.FH does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years.
- Have an approved conflict of interest policy.
- Receive a copy of the organization’s IRS Form 990.
- Receive a copy of the organization’s financial statements.
- Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board’s treasurer helps provide independent oversight of the organization’s finances.
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Board Size
Standard 2 (Number of Board Members)
Description
Soliciting organizations shall have a board of directors with a minimum of five voting members.The organization meets this standard.
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Board Meetings
Standard 3 (Frequency and Attendance of Board Meetings)
Description
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.The BBB is unable to verify if this organization meets this standard.
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Board Compensation
Standard 4 (Compensated Board Members)
Description
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.The organization meets this standard.
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Conflict of Interest
Standard 5 (Conflict of Interest)
Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.The BBB is unable to verify if this organization meets this standard.
Measuring Effectiveness
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Effectiveness Policy
Standard 6 (Board Policy on Effectiveness)
Description
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.The organization meets this standard.
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Effectiveness Report
Standard 7 (Board Approval of Written Report on Effectiveness)
Description
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.The organization meets this standard.
Finances
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Program Expenses
Standard 8 (Program Service Expense Ratio)
Description
Spend at least 65% of its total expenses on program activities.The organization meets this standard.
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Fundraising Expenses
Standard 9 (Fund Raising Expense Ratio)
Description
Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.The organization meets this standard.
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Accumulating Funds
Standard 10 (Ending Net Assets)
Description
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.The organization meets this standard.
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Audit Report
Standard 11 (Financial Statements)
Description
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $1 million, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $1 million, 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.The organization meets this standard.
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Detailed Expense Breakdown
Standard 12 (Detailed Functional Breakdown of Expenses)
Description
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.The organization meets this standard.
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Accurate Expense Reporting
Standard 13 (Accuracy of Expenses in Financial Statements)
Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.The BBB is unable to verify if this organization meets this standard.
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Budget Plan
Standard 14 (Budget)
Description
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.FH does not meet this Standard because when the organization provided 2021 budget information, it indicated that the budget:
- Did not identify total program service expenses.
- Did not identify total fundraising expenses.
- Did not identify total administrative expenses.
Fundraising & Info
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Truthful Materials
Standard 15 (Misleading Appeals)
Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.The organization meets this standard.
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Annual Report
Standard 16 (Annual Report)
Description
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.The organization meets this standard.
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Website Disclosures
Standard 17 (Web Site Disclosures)
Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.The organization meets this standard.
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Donor Privacy
Standard 18 (Privacy for Written Appeals & Internet Privacy)
Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.The organization meets this standard.
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Cause Marketing Disclosures
Standard 19 (Cause Related Marketing)
Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).The organization meets this standard.
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Complaints
Standard 20 (Complaints)
Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.The organization meets this standard.
Conclusion
Food for the Hungry does not meet the following 2 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.
FH does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years.
- Have an approved conflict of interest policy.
- Receive a copy of the organization’s IRS Form 990.
- Receive a copy of the organization’s financial statements.
- Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board’s treasurer helps provide independent oversight of the organization’s finances.
Standard 14 (Budget)
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
FH does not meet this Standard because when the organization provided 2021 budget information, it indicated that the budget:
- Did not identify total program service expenses.
- Did not identify total fundraising expenses.
- Did not identify total administrative expenses.
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 5 13
Food for the Hungry meets the remaining 15 Standards for Charity Accountability.
Child Sponsorship
Food for the Hungry reports that one can sponsor a child for $38 per month. A sponsored child receives nutrition, access to clean water to drink, education, training for parents on how to care for their children, and community projects. Sponsors may communicated directly with their sponsored child, and receive updated photos of the child, prayer requests from the community, and a progress reports on the country where the child lives.
Purpose
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Year, State Incorporated
1971, CA
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Affiliates
Food for the Hungry Foundation, Inc.
FH Association
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Stated Purpose
"to help the poor."
Programs
Food for the Hungry (FH) conducts relief and development programs including: emergency relief and rehabilitation, clean water and sanitation projects, health education and intervention, agriculture development, income generation, and life-skills training. FH's integrates gifts-in-kind, including food, seeds, clothing, medical supplies and pharmaceuticals into its' relief, rehabilitation, and development programs. The organization also provides information and advocacy about issues and public policies surrounding poverty and implements educational programs. FH's child sponsorship program provides a child with access to food, clothing, medical care, educational supplies, and spiritual nourishment through community development programs.
For the year ended September 30, 2020, Food for the Hungry's program expenses were:
| Program ministries | $128,604,066 |
| Total Program Expenses: | $128,604,066 |
Governance & Staff
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Chief Executive
Mark Viso, President and Chief Executive Officer
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Compensation*
$0
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Chair of the Board
Larry Jones
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Chair's Profession / Business Affiliation
Academic Director
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Board Size
10
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Paid Staff Size
3514
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: Compensation information for Mr. Viso is not yet available. In 2019, the Interim Chief Executive Officer, Edward Hatch, received compensation totaling $179,649. The highest compensated employee was Scott Lout, Regional Director, Africa, who received $281,135.
Fundraising
Method(s) Used:
Direct mail appeals, Grant proposals, Planned giving arrangements, Cause- related marketing (affinity credit cards, consumer product sales, etc.)
Fundraising costs were 9% of related contributions. (Related contributions, which totaled $169,861,799, are donations received as a result of fundraising activities.)
Tax Status
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.
Financial
The following information is based on Food for the Hungry's audited financial statements - consolidated for the year ended September 30, 2020.
| Source of Funds | |
|---|---|
| Contributions | $88,739,320 |
| U.S. government grants | $58,713,988 |
| U.S. government commodities provided for distribution | $11,729,062 |
| Other donated commodities and services | $10,679,429 |
| Other income | $628,188 |
| Investment loss | ($600,717) |
| Total Income | $169,889,270 |
- Programs: 85%
- Fundraising: 10%
- Administrative: 5%
| Total Income | $169,889,270 |
| Program expenses | $128,604,066 |
| Fundraising expenses | $15,767,930 |
| Administrative expenses | $8,522,860 |
| Other expenses | $0 |
| Total expenses: | $152,894,856 |
| Income in Excess of Expenses | $16,994,414 |
| Beginning Net Assets | $30,245,924 |
| Other Changes In Net Assets | $153,570 |
| Ending Net Assets | $47,393,908 |
| Total Liabilities | $21,269,585 |
| Total Assets | $68,663,493 |
Note 1: According to FH's audited financial statements for the year ended September 30, 2020, the organization received in-kind contributions totaling $22,408,491.
Note 2: In the financial section above, "other changes in net assets" refers to a change in value of annuities ($223,778) and a foreign currency translation adjustment (-$70,208).
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