Mission: Fonkoze USA secures financial and technical support for its Haitian partners, Fonkoze Foundation and Fonkoze Financial Services. Fonkoze USA educates the American pu ... (More)

Fonkoze USA is a 501(c)(3) organization, with an IRS ruling year of 1997, and donations are tax-deductible.

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Contact Information

  http://www.fonkoze.org/

  1900 L Street, NW
Suite 304
Washington DC 20036 

  202-628-9033


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Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Good

This charity's score is 89.82, earning it a 3-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2020, the latest year published by the IRS. 

View this organization’s historical ratings.


Back to Overall

Star Rated Report

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Program Expense

Program Expense Ratio

78.4%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

11.6%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

9.8%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

67.7%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.09


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

0.67 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

13.73%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors can be reluctant to contribute to a charity when their name, address, or other basic information may become part of donor lists that are exchanged or sold, resulting in an influx of charitable solicitations from other organizations. Our analysts check the charity's website to see if the organization has a donor privacy policy in place and what it does and does not cover. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



Mabel Valdivia-Diaz, Executive Director

$168,000 (7.12% of Total Expenses)


Current CEO and Board Chair can be found in the Leadership & Adaptability report below.

Source: IRS Form 990 (page 7), filing year 2020

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Described in section 170(b)1)(a)(vi) of the Code (BMF activity code: 994)

Other loans to individuals (BMF activity code: 562)


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.


Fonkoze USA reported being impacted by COVID-19 in the following ways:
  • Fundraising Capacity

  • Revenue


How COVID-19 impacted the organization's operations financially:

Donations to our organization declined by more than 45% in Q1 of 2020. We also applied and received a PPP loan and thus were able to employ a full staff.


How COVID-19 impacted the organization's delivery of programs:

Due to social distancing, our program partners had to revamp direct service programs. We immediately pivoted to smaller in-person group training with masks and social distancing. In addition, we utilized sessions to incorporate critical Covid-19 prevention measures and established handwashing stations throughout our network in addition to providing masks for all program clients. To date, no program has shut down.


How this organization adapted to changing conditions caused by COVID-19:

Fonkoze USA continues to maintain Covid-19 protocols such as masks and social distancing. Our offices closed for the majority of 2020 and all staff worked remotely. We transitioned in-person meetings to Zoom yet still continued to communicate with donors and key stakeholders via social media, email, and other virtual platforms. Moreover, we ensured donors continued to engage with our mission and work by holding several virtual events, launching a virtual cafe, and sharing video stories from the field.


Innovations the organization intends to continue permanently after the pandemic:

A more virtual environment offered us the opportunity to allow easier in-person engagement between our Haiti partners and supporters in the US. this is an approach we will continue to use in the long-term. It is a cost-effective and meaningful tool for connecting our partners and their work with those who support it.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
11/1/20212020 89.82
10/1/20202019 82.44
10/1/20192018 77.06
5/1/20192017 77.87
4/1/20192017 77.69

This organization received multiple star ratings within this fiscal year, due to an update to its Accountability and Transparency data and/or the receipt of an amended Form 990.

12/1/20182016 80.26
2/1/20172015 87.30
6/1/20162014 90.71
Rating Version: 2.0
12/1/20152014 94.75
5/1/20152013 95.76
12/1/20132012 96.56
11/6/20122011 96.03
2/1/20122010 95.25
10/1/20112009 93.25
9/20/20112009 83.78
Rating Version: 1.0
11/1/20102009 93.51
3/1/20102008 93.06
3/1/20092007 84.96
12/1/20072006 87.64
5/1/20072005 67.17

Previous: Finance & Accountability  / Next: Leadership & Adaptability

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

Fonkoze USA cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.


Back to Overall

Additional Information

Unscored

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Largest Programs

Largest Programs



Fonkoze USA reported its three largest programs on its FY 2020 Form 990 as:


$1,216,276

Spent in most recent FY

62%

Percent of program expenses


Grants


$435,220

Spent in most recent FY

22%

Percent of program expenses


Technical Assistance Programs


$283,333

Spent in most recent FY

14%

Percent of program expenses


Education


Previous: Impact & Results  / Next: Culture & Community

...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by Fonkoze USA is a passing score. This score has no effect on the organization's Star Rating.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


Back to Overall

Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


Fonkoze USA secures financial and technical support for its Haitian partners, Fonkoze Foundation and Fonkoze Financial Services. Fonkoze USA educates the American public about its partners' work in Haiti, facilitates technical assistance, raises money to support their services and programs, and provides due diligence and reporting for donors. Fonkoze USA also acts as a channel for socially responsible investors who want to invest in Fonkoze Financial Service's loan fund by lending their money at subsidized interest rates. Our mission is to work together to provide financial and non-financial services to empower Haitians - primarily women - to lift their families out of poverty.


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


Fonkoze’s vision is for a Haiti where people, standing together, shoulder to shoulder, have pulled themselves out of poverty.


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Engage new partners in implementing sustainable programs like CLM.

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Goal Two: Secure funding to test new innovations that will lead to sustainable solutions for Foundation clients.

Goal Type: New program(s) based on observed changes in needs among our constituencies/communities served.


Goal Three: Strengthen Communication & Engagement within Fonkoze

Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

Fonkoze invests in its staff annually by allocating financial resources for individuals to engage in professional development opportunities. In addition, the organization encourages program directors to present at various conferences, lead learning sessions within the organization and has designed a succession plan that incorporates specific action steps for mentoring and promoting staff.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Raising Awareness

What are this organization’s external mobilizaton efforts?

Fonkoze has a robust social media presence. We provide facts and information regarding our programs and also the response to important events such as the 2021 earthquake. Additionally, Fonkoze participates in many working groups sponsored by public and private entities on issues/topics related to Haiti and our program focus areas. Finally, Fonkoze engages with numerous non-profits in coordinating program implementation and building the capacity of local groups to respond to local needs.

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


Fonkoze developed robust organization-wide prevention of sexual exploitation, abuse, and harassment (PSEAH) plan. This plan is in direct response to the need to ensure staff not only protect clients but also other staff. Haiti has in the last couple of years had prominent international organizations face scrutiny for its failure to prevent such behavior and Fonkoze wanted to be sure we were on record externally and internally on what is the behavior expectation by Fonkoze staff with clients, colleagues, and all other stakeholders.

Source: Nonprofit submitted responses

Additional Information

Unscored

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Organization Leadership

Organization Leadership


Sherry Todd-Green

Interim Executive Director

Laura Stephens

Chair

Previous: Leadership & Adaptability

...   Culture & Community


This score provides an assessment of the organization's culture and connectedness to the community it serves. Learn more about how and why we rate Culture & Community.


Culture & Community Score

88

out of 100

Fonkoze USA has earned a passing score. This score has no effect on the organization's Star Rating. The organization provided data about how it listens to constituents (Constituent Feedback) and its Diversity, Equity, & Inclusion (DEI) practices (see report below).

The Culture & Community Beacon is comprised of the following metrics:

  • Constituent Feedback: 100/100 (30% of beacon score)

  • Diversity, Equity, & Inclusion: 83/100 (70% of beacon score)


Back to Overall

Culture & Community Report

88

of 100 points

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Constituent Feedback

Diversity, Equity, & Inclusion

83/100 points

70% of beacon score


This organization's score of 83 is a passing score. The organization reported that it is implementing 4 diversity, equity and inclusion (DEI) practices. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.


View this organization's DEI Strategies


Methodology


We are utilizing data collected by Candid to document and assess the DEI practices implemented by the organization. Nonprofit organizations are encouraged to fill out the Equity Strategies section of their Candid profiles to receive a rating.


Learn more about the methodology.

Constituent Feedback

100/100 points

30% of beacon score


This organization reported that it is collecting feedback from the constituents and/or communities it serves. Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective.


View this organization's Constituent Feedback Practices




Methodology


We've partnered with Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.


Learn more about the methodology.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Below you can find more information about the metrics we currently evaluate in this beacon and their relevance to nonprofit performance.


Constituent Feedback


Diversity, Equity, and Inclusion

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