Aga Khan Foundation USA does not meet the following 3 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.
AKF 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.
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.
AKF does not meet this Standard because:
- Its effectiveness assessment policy does not specify that this assessment will take place at least once every two years.
Standard 10 (Ending Net Assets)
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.
Aga Khan Foundation USA does not meet this Standard because:
- According to its audited financial statements for the fiscal year ending 12/31/2018, the organization's total unrestricted net assets were $176,578,932, or 5.10 times the charity's expenses of $34,621,712.
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:
7
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Aga Khan Foundation USA meets the remaining 15 Standards for Charity Accountability.
Aga Khan Foundation USA (AKF) is an international development organization that works in some of the most remote and hard to reach areas of Africa and Asia. The organization reports that it partners with communities, governments, businesses, and local organizations to build better futures together. As part of the Aga Khan Development Network, AKF seeks to break the cycle of poverty by making long-term investments, building permanent institutions, and cultivating an active civil society. The organization creates change through partnerships with people, businesses, local organizations, and governments.
For the year ended December 31, 2018, Aga Khan Foundation USA's program expenses were:
| International programs |
$25,814,632 |
| Community centers development program |
$4,972,376 |
| Total Program Expenses: |
$30,787,008 |
*2018 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, Membership appeals, Planned giving arrangements, Print advertisements (newspapers, magazines, etc.), Cause- related marketing (affinity credit cards, consumer product sales, etc.)
Fundraising costs were 4% of related contributions. (Related contributions, which totaled $76,411,630, 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 Aga Khan Foundation USA's audited financial statements for the year ended December 31, 2018.
| Source of Funds |
| Contributions |
$69,579,500 |
| Federal grants |
$7,112,824 |
| Investment return, net |
$1,423,372 |
| Non federal grants and contracts |
$659,576 |
| Total Income |
$78,775,272 |
- Programs: 89%
- Fundraising: 8%
- Administrative: 3%
| Total Income |
$78,775,272 |
| Program expenses |
$30,787,008 |
| Fundraising expenses |
$2,711,793 |
| Administrative expenses |
$1,122,911 |
| Other expenses |
$0 |
| Total expenses: |
$34,621,712 |
| Income in Excess of Expenses |
$44,153,560 |
| Beginning Net Assets |
$353,629,561 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$397,783,121 |
| Total Liabilities |
$4,729,783 |
| Total Assets |
$402,512,904 |