Food for the Poor meets the 20 Standards for Charity Accountability.
Child Sponsorship
FFTP's Angels of Hope program reaches children who have been orphaned or abandoned in the Caribbean and Latin America. According to the organization, for slightly more than a dollar a day, you will receive a welcome kit that includes: a photo of the child you are sponsoring, a brief biography of the child, a fact sheet about the country your sponsored child lives in, and a membership book with details about the program, such as more specifics about writing to your sponsored child, sending gifts, etc.
BBB WGA Comment and Government Actions
BBB WGA Comment:
In finding that FFTP meets Standards 8 and 13, which address program expenses and the overall accuracy of expense reporting, BBB WGA notes the following:
After reviewing FFTP's 2018 audited financial statements, BBB WGA requested and received additional information from the organization regarding its valuation of its top three donated pharmaceuticals, including the purpose of the drugs, the value-per-pill for each drug, and specifics on how FFTP determined the value of each drug. BBB WGA's concern stemmed from the overall amount of in-kind pharmaceuticals and medical supplies donated ($536,286,862) and lawsuits that were pending at the time regarding valuation (explained below).
FFTP presently uses the Wholesale Acquisition Cost (WAC) valuation standard for its pharmaceuticals and has notified BBB WGA that they are implementing plans to change their valuation method to use Medicaid's National Average Drug Acquisition Cost (NADAC), in 2021.
Based on the above, BBB WGA is reporting that FFTP meets Standards 8 and 13, but will revisit the pharmaceutical valuation in its next evaluation of the organization to verify a change in practice.
Government Actions:
According to FFTP's 2018 audited financial statements, the organization has recently been party to two government actions. The audit stated, in part:
"On March 12, 2018, the Organization received a partial Cease and Desist Order (the "Order") from the Attorney General of California that still allows the Organization to fundraise and operate in the State but required the Organization, among other things, to remove certain specific language from its solicitations and provide a copy of the Order to parties specified in the Order. The Organization denied any wrongdoing and retained legal counsel to appeal this Order. A hearing was held from November 27 through December 12, 2018 and consisted of two phases; (1) alleged improper [gifts-in-kind] GIK valuation; and (2) alleged solicitation misrepresentations. A third allegation involving improper joint [cost] allocations was withdrawn by the attorney general.
At the end of the first phase, the Administrative Law Judge ("ALJ") issued a proposed ruling from the bench that California had not proven its case on GIK valuation and had not proven there was any violation of U.S. [Generally Accepted Accounting Principles] GAAP. At the end of phase two of the hearing, regarding the solicitations, the ALJ asked for briefs upon completion of witness testimony and both the State and the Organization have subsequently complied..."
On September 6, 2019, an Administrative Law Judge determined that FFTP was misleading in the language contained in certain solicitations that included references to its expense ratios based on the organization's current valuation of in-kind pharmaceuticals. The Judge allowed the State of California to assess a fine of $1 million, which is not due until after an appeal process is exhausted. FFTP has appealed this decision and filed a Petition for Writ of Mandate and Complaint for Declaratory Judgment in the California State Court. In finding that FFTP meets Standard 15 regarding the accuracy of fundraising appeals, BBB WGA considered that FFTP indicated that the organization has removed any mention of FFTP's expense ratios from current appeals. FFTP replaced the efficiency ratio with measurable outputs (e.g. number of containers shipped, meals provided, etc.) instead.
According to Michigan's Department of the Attorney General, in 2018:
"Michigan Attorney General Bill Schuette...announced his Charitable Trust Section has reached a settlement with Food for the Poor...
Schuette alleged that Food for the Poor's mailings overstated its efficiency when it told donors that 'more than 95% of all donations go directly to programs that help the poor.' While denying that its solicitations were deceptive, Food for the Poor has agreed to cease this and other allegedly deceptive language as well as pay $300,000. Of the settlement amount, $175,000 will go to the Food Bank Council of Michigan and $75,000 to the Capuchin Soup Kitchen; both charities distribute food to hungry Michigan families. The remaining $50,000 of the settlement will reimburse the State of Michigan for investigative costs."
Food for the Poor (FFTP) conducts relief and development programs primarily in the Caribbean, South America and Latin America by providing assistance in the form of cash and non-cash grants to churches and charitable organizations operating in these areas of need. FFTP ships trailer loads of medicine, medical supplies, and equipment that help maintain clinics, hospitals, and medical care centers to provide medical care to poverty-stricken children and families. The organization distributes aid to support the feeding, clothing, and sheltering of the poor. FFTP funded water wells, agricultural tools, seeds, training, aquaculture ponds, fishing villages, fruit tree nurseries and animal husbandry projects.
For the year ended December 31, 2018, Food for the Poor's program expenses were:
| Goods and aid supplied |
$897,871,890 |
| Total Program Expenses: |
$897,871,890 |
*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, Planned giving arrangements, Print advertisements (newspapers, magazines, etc.), Telephone appeals, Radio, Television
Fundraising costs were 5% of related contributions. (Related contributions, which totaled $942,410,000, 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 Poor's audited financial statements for the year ended December 31, 2018.
| Source of Funds |
| Donated goods |
$802,004,114 |
| Cash |
$137,897,654 |
| Promises to give |
$2,508,232 |
| Other income |
$149,658 |
| Investment earnings |
$76,606 |
| Total Income |
$942,636,264 |
- Programs: 95%
- Fundraising: 4%
- Administrative: Less than 1%
| Total Income |
$942,636,264 |
| Program expenses |
$897,871,890 |
| Fundraising expenses |
$44,134,680 |
| Administrative expenses |
$11,116,713 |
| Other expenses |
$0 |
| Total expenses: |
$953,123,283 |
| Income in Excess of Expenses |
$-10,487,019 |
| Beginning Net Assets |
$36,252,628 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$25,765,609 |
| Total Liabilities |
$6,238,116 |
| Total Assets |
$32,003,725 |
Note: According to FFTP's audited financial statements for the year ended December 31, 2018, the organization received in-kind contributions totaling $804,004,114 in the form of pharmaceuticals and medical supplies ($536,286,862), clothing and household goods ($159,907,556), food ($35,092,014), building supplies ($32,070,509), books and publications ($15,646,807), educational items ($11,284,400), general support ($9,647,108), agricultural tools and supplies ($2,025,357), and cars and other vehicles ($43,500).