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CHARITY REVIEW
Issued: August 2024 Expires: August 2026

Penny Appeal USA

Standards Not Met
Standards Not Met
7
2461 Eisenhower Avenue, 2nd Floor
Alexandria, VA, 22314

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

Penny Appeal USA does not meet the following 1 Standards for Charity Accountability:

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.

PAUSA does not meet this Standard because:

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

Penny Appeal USA meets the remaining 19 Standards for Charity Accountability.

Child Sponsorship


PAUSA reports that one can sponsor an orphaned child for $30 per month. The organization's sponsorship program helps provide nutrious meals, clothes, healthcare, and an education to orphaned children in over eight countries. PAUSA also states that the sponsorship will enable the guardian, often a family member, to provide a higher level of care. Sponsors will receive a welcome pack and after a year, a Feedback Report, to show how the sponsorship is improving the child's life. 

Stated Purpose:
"to bring about an equitable world by tackling the root causes of poverty."

Year, State Incorporated:
2015, VA

Penny Appeal USA (PAUSA) works with its international affiliate, Penny Appeal, to alleviate poverty. The organization's Thirst Relief program provides access to safe water and electricity to communities in need. Penny Appeal USA at Home provides resources such as shelter for victims of domestic violence, disaster relief kits, and digital literacy training in low-income school districts. The Emergency Response program provides disaster relief assistance around the world in the form of food, water, medical kits, and shelter. Feed Our World delivers meals across the world to families in need. Education First offers tools and resources to schools and students to increase the accessibility and quality of education. Heal Humanity provides healthcare equipment, facilities and medical aid for patients that lack access to these necessities. Income Generation promotes sustainability by offering rural communities overseas the tools and skills they need to be self-sufficient. OrphanKind supports orphan children through sponsorship and community nurturing programs, which are designed to provide orphan children with education, access to quality healthcare, and a foster parent.

For the year ended December 31, 2022, Penny Appeal USA's program expenses were:

Penny Appeal at Home: $3,120

Education First: $5,845

Emergency response: $1,462,938

Feed Our World: $749,333

Heal Humanity: $339,599

Income generation: $553,145

OrphanKind: $624,855

Religious giving: $813,379

Thirst Relief: $971,822

Advocacy: $8,350

Other programs: $2,801

Total Program Expenses: $5,535,187

Chief Executive
Rehan Dawer, Interim Executive Director

Compensation*
$155,770

Chair of the Board
Rehan Dawer

Chair's Profession / Business Affiliation
Interim Executive Director, Penny Appeal USA

Board Size
5

Paid Staff Size
17

*2024 compensation, as reported by the organization, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Direct mail appeals, Telemarketing

Fundraising costs were 26% of related contributions. (Related contributions, which totaled $7,539,292, 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 Penny Appeal USA's audited financial statements for the year ended December 31, 2022.

Source of Funds
Interest income $1,316
Special events $24,221
Other income $61,589
Contributions $6,820,814
In-kind contributions $694,257
Merchandise $87,012
Total Income $7,689,209

Programs: 69% Fundraising: 25% Administrative: 6%

Total Income $7,689,209
Total expenses: $8,009,823
  Program expenses $5,535,187
  Fundraising expenses $1,992,083
  Administrative expenses $482,553
  Other expenses $0
Income in Excess of Expenses $-320,614
Beginning Net Assets $3,467,867
Other Changes In Net Assets $0
Ending Net Assets $3,147,253
Total Liabilities $1,509,854
Total Assets $4,657,107

Note: According to the organization's 2022 audited financial statements, PAUSA received in-kind contributions totaling $694,257 in the form of food and supplies.

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