Mission: ORPHANetwork equips vulnerable and orphaned children to fully realize their God-given potential. We work through local church partners in Nicaragua to accomplish eac ... (More)

ORPHANetwork is a 501(c)(3) organization, with an IRS ruling year of 2002, and donations are tax-deductible.

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Contact Information

  http://www.orphanetwork.org/

 2624 Southern Blvd., Suite 202
Virginia Beach VA 23452 

  757-333-7200


You are viewing this organization's new Charity Navigator profile page. To view the legacy version, click here.

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.




Exceptional

This charity's score is 91.45, earning it a 4-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 2019, the latest year published by the IRS.

View this organization’s historical ratings.


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Star Rated Report

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Program Expense

Program Expense Ratio

84.9%


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

10.4%


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

4.5%


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

3.4%


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

$0.04


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

0.43 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

5.45%


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 have expressed extreme concern about the use of their personal information by charities and the desire to have this information kept confidential. The exchanging and sale of lists for telemarketing and the mass distribution of "junk mail," among other things, can be minimized if the charity assures the privacy of its donors. 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 W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



Richard Anderson, Executive Director

$206,271 (3.25% of Total Expenses)


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:

Activity data not reported from the IRS


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.


ORPHANetwork reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity

  • Revenue

  • Staffing

  • Administrative Capacity


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

We could not achieve our fundraising goals due to the following : Our Gift-in-Kind (GIK) food partners were unable to provide $1M in donated food. We raised $250,000 for 2020 local food purchases to meet our commitment to feeding 23,000 children and make up for the loss in GIK. Our ability to meet with donors and potential donors in person in the US was eliminated and just started to return in Q2 of 2021. Our ability to meet with and share with churches on Sunday mornings during services was eliminated and has just now started to return in Q2 of 2021. Our largest source of new donors - taking them to visit our work in Nicaragua in person - was stopped and has not yet returned. We had the expense of a COO position that was added to help reach more/new donors which was impossible due to the pandemic.


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

Early on churches sent uncooked meals home, later they prepared take-out meals and many of our churches are still working from this model. Our 8 nurses and nutritionists that are normally deployed bi-monthly in 55 communities could not personally visit for many months. The Healthy Beginnings Program serves more than 1,000 women of child-bearing age and infants. Since these groups could not gather and staff could not visit, we created a database of contacts for WhatsApp groups where staff distributed educational videos and we empowered local community leaders to ensure women continued to receive the education, support and interventions of the program. Staff visited the community once a month to deliver additional food and medicines. The After School Education Program served 1,322 children in 2020. When classes could not gather, teachers distributed weekly materials to the students and worked with parents via WhatsApp to support. The Job Training Program was put on hold in Q2 of 2020.


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

Our U.S. Gift-in-Kind (GIK) partners could only fulfill 15 of the 31 containers of donated food. In Q2, we created a strategy for a new initiative of purchasing locally-sourced rice, beans and dehydrated eggs to reach the nutritional equivalency of the donated meals. In Q3, we made our first local food purchase of 43 tons of food. To-date (June 2021) we have purchased 585 tons of food from local farmers for $581,000. In 2021, we expect to receive 18 containers of donated meals; local food purchase has been crucial to our commitment to the children. We developed processes for virtual meetings with new and existing donors and added a new online giving processor to encourage online gifts. Q1 of 2021, our staff delivered leadership training via the Global Leadership Summit virtually to 1,363 Nicaraguans. The economic strains of the pandemic has created a need to feed 10,000 new children this year. In Q2 of 2021, we added virtual trips to enable new and existing donors to visit Nicaragua.


Innovations the organization intends to continue permanently after the pandemic:

We will continue meeting with new and existing donors via video conference and virtual trips. Purchasing locally sourced food because of the financial help it is for local farming co-ops. Empowerment of local leaders through our Healthy Beginnings Program and creating deeper engagement with parents through our After School Education Program. In Q3 of 2021, the new wave of COVID cases has shifted some of our After School Education Program locations back to a temporary model of teachers creating and distributing weekly materials to the students, working with parents via WhatsApp to help reinforce concepts and support at home learning. At this point, we are doing this on a case-by-case basis rather than program-wide. Finally we will continue to promote ease of online giving with our new processors.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
12/1/20202019 91.45
8/1/20192018 91.59
2/1/20192017 95.47
2/1/20182016 96.66
5/1/20172015 96.46
4/1/20172015 93.91

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

7/1/20162014 91.45
6/1/20162014 86.10
Rating Version: 2.0
12/1/20152014 85.66
6/1/20152013 85.89
9/1/20142012 81.09

...   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

ORPHANetwork 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.


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Additional Information

Unscored

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Largest Programs

Largest Programs



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


$2,880,794

Spent in most recent FY

67%

Percent of program expenses


Platform of Health:Our Platform of Health includes Phase 1 Life Saving and Phase 2 Life Changing Local Church Initiatives (LCIs) and Health & Nutrition Programs. The Phase 1 Life Saving LCI provides b ... (More)


$1,046,514

Spent in most recent FY

24%

Percent of program expenses


Orphan Care:Our Orphan Care segment includes Child Protection Centers (CPCs), Transition and Missions programs. Within our Child Protection Centers (which we support, but do not own), we serve around  ... (More)


$365,357

Spent in most recent FY

8%

Percent of program expenses


Preparing for Jobs:Our Job Preparedness segment includes Job Training and the After-School Education Program (ASEP). The Job Training program empowers young adults from our partner LCIs to learn a tra ... (More)


...   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 ORPHANetwork is a passing score.

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


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Leadership & Adaptability Report

100

of 100 points

Mission

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


ORPHANetwork works through local church partners in Nicaragua to accomplish each of our four missional targets: to rescue abandoned, abused, and orphaned children, to prevent vulnerable children from becoming abandoned, to create opportunities for new life, and to share Christ with everyone.


Source: Nonprofit submitted responses

Vision

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


For each vulnerable and orphaned child to reach their God-given potential.


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: Establish a platform of health by reducing chronic and acute malnutrition in children under 5 years old and pregnant/nursing mothers.

Goal Type: Focus on core programs to achieve mission and scale back on programs not seen as core.


Goal Two: Educate for future jobs by scaling our After School Education Program to reach 55 communities of abject poverty.

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


Goal Three: Feed 10,000 new children through the local Nicaraguan church in 2021.

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


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

In February of 2021, our Nicaraguan staff delivered leadership development virtual training via the Global Leadership Summit to 1,363 pastors, community leaders, teachers, students and medical and business professionals in Nicaragua. Organizationally, we implemented strategic leadership development topics for each Leadership Team meeting in 2021, and we have benefitted from organizationally-focused training from the Eagle Brook Association.

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

  • Thought Leadership

  • Raising Awareness

  • Community Building

What are this organization’s external mobilizaton efforts?

We collaborate with multiple NGOs working in Nicaragua and the United States. Here are a few examples: Mission 14, a sewing skills training center located in Managua who we partner with in job skills training classes for young adults from our local church partnerships. Another example is Feed My Starving Children's Coalition of Relief Organizations Promoting Practical Solutions (CROPPS) which helps food distribution partners work together to develop close working relationships with other ministries and organizations in their areas to enhance food relief and sustainable development efforts. Our Health and Nutrition and After School Education Programs build community through training and involvement with parents of the children we serve. Annually our Nicaraguan staff hosts the Global Leadership Summit in 4 regional sites across the country, equipping pastors, leaders, students and business professionals with leadership development. We have an active social media engagement strategy.

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.


The local food purchase has been crucial to keeping our commitment to feeding the children their best and often, only meal of the day. To keep our commitment to nourishing 23,000 children, we created a strategy to support purchasing locally-sourced rice, beans and dehydrated eggs to reach the nutritional equivalency of the donated soy-fortified rice meals that our Gift-in-Kind partners were unable to fulfill due to the pandemic. We made our first local food purchase of 43 tons of food in September of 2020 and to-date (June 2021), have purchased 585 tons of food from local Nicaraguan farmers for a cost of $581,000. The local churches that serve the children adapted their model from large group meal service to take home meals. Early on churches sent uncooked meals home, later they prepared take-out meals and many of our churches are still working from this model. Our 8 nurses and nutritionists that are normally deployed bi-monthly in 55 communities could not personally visit for many months. The Healthy Beginnings Program serves more than 1,000 women of child-bearing age and infants. Since these groups could not gather and staff could not visit, we created a database of contacts for WhatsApp groups where staff distributed educational videos and we empowered local community leaders to ensure women continued to receive the education, support and interventions of the program. Staff visited the community once a month to deliver additional food and medicines. The After School Education Program served 1,322 children in 2020. When classes could not gather, teachers distributed weekly materials to the students and worked with parents via WhatsApp to support. Additionally, we developed processes for meeting with new and existing donors via video conference and virtual trips to Nicaragua to support program fundraising.

Source: Nonprofit submitted responses

...   Culture & Community


This score provides an assessment of the organization's engagement with the constituents it serves, a practice we term Constituent Feedback. When organizations listen to constituents, they are able to better deliver on programs and meet the needs of stakeholders. A future version of this Beacon will also assess an organization's people operations and its Diversity, Equity and Inclusion (DEI) metrics.


Culture & Community Score

Not Currently Scored

ORPHANetwork is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback data. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.

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.


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Culture & Community Report

Unscored

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Constituent Feedback

Constituent Feedback


Constituent Feedback and Listening Practice data are not available for this organization. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.


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. We award every nonprofit that completes the Candid survey full credit for this Beacon, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. Although the data is not evaluated for quality at this time, future iterations of this Beacon will include third party or other data that will serve to validate the information provided by the nonprofit.

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. Our partnership with Feedback Labs and Guidestar by Candid, and other partners including Fund for Shared Insight, GlobalGiving, and Keystone Accountability, enables us to launch the first version of this beacon with Constituent Feedback information collected on Candid's site.


Feedback practices have been shown to support better Diversity, Equity, and Inclusion outcomes, an essential area of assessment that we intend to further expand and develop in the future. Feedback Labs has documented several studies which indicate that beyond achieving organizational goals, nonprofits that are attentive and responsive to concerns and ideas raised by beneficiaries establish stronger relationships with the people they serve, promote greater equity, and empower constituents in ways that can help to ensure better long-term outcomes. You can find resources to help nonprofits improve their feedback practices here.

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