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.
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 |
*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.
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.)
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 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).