Adventist Development and Relief Agency International does not meet the following 4 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.
ADRA 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 a voting member of the board who is assigned the responsibility of serving as the treasurer.
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.
ADRA does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two 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.
ADRA does not meet this Standard because:
- The organization has not completed an effectiveness assessment in the last two years.
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.
ADRA does not meet this Standard because its 2019 annual report does not include:
- Total income.
- Total program service expenses.
- Total fundraising expenses.
- 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:
13
15
19
Adventist Development and Relief Agency International meets the remaining 13 Standards for Charity Accountability.
Adventist Development and Relief Agency International (ADRA) reports that it is the international humanitarian arm of the Seventh-day Adventist Church that delivers relief and development assistance to more than 118 countries. The organization partners with local communities, organizations, and governments to provide culturally relevant programs and build local capability for sustainable operation. ADRA's community development initiatives target food security, economic development, health, education, emergency response and preparedness, and WASH (water, sanitation, and hygiene). Food security grants address the causes of food insecurity to vulnerable groups in targeted countries. Economic development projects provide agricultural assistance and offer individuals vocational training. Health projects focus on child health, HIV/AIDS, family planning, and tobacco. Together, the projects aim to improve the quality of life for recipients in a holistic manner. In 2019, the organization states that it benefitted nearly fourteen million individuals through its 1,182 projects. In addition, ADRA reports that it supplied sixty containers of food packets to seven countries.
For the year ended December 31, 2019, Adventist Development and Relief Agency International's program expenses were:
| Program services |
$80,641,203 |
| Total Program Expenses: |
$80,641,203 |
-
Chief Executive
Michael Kruger, President
-
Compensation*
$206,476
-
Chair of the Board
Geoffrey Mbwana
-
Chair's Profession / Business Affiliation
General Vice President, Seventh-day Adventist Church World Headquarters
-
Board Size
43
-
Paid Staff Size
128
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: Korey Dowling, Vice President for People and Culture, was the highest compensated employee, receiving $233,860.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Planned giving arrangements, Telephone appeals
Note 2: According to ADRA's 2019 audited financial statements, the organization received $4,903,251 in donated food ($4,880,753) and hygiene kits ($22,499).
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 Adventist Development and Relief Agency International's audited financial statements for the year ended December 31, 2019.
| Source of Funds |
| Government grants |
$56,558,922 |
| Contributions |
$17,867,766 |
| Seventh-day Adventist Church |
$5,741,348 |
| Realized and unrealized gains on investments, net |
$4,952,617 |
| In-kind contributions |
$4,903,251 |
| Other grants |
$2,165,579 |
| Investment income, net |
$1,242,615 |
| Other income |
$475,496 |
| Fees reimbursement |
$1,253 |
| Total Income |
$93,908,847 |
- Programs: 94%
- Administrative: 5%
- Fundraising: Less than 1%
| Total Income |
$93,908,847 |
| Program expenses |
$80,641,203 |
| Fundraising expenses |
$1,670,318 |
| Administrative expenses |
$4,396,021 |
| Other expenses |
$0 |
| Total expenses: |
$86,707,542 |
| Income in Excess of Expenses |
$7,201,305 |
| Beginning Net Assets |
$47,935,285 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$55,136,590 |
| Total Liabilities |
$16,802,864 |
| Total Assets |
$71,939,454 |