Mission: World Neighbors is an international development organization striving to eliminate hunger, poverty and disease in the poorest, most isolated rural villages in Asia,  ... (More)

World Neighbors is a 501(c)(3) organization, with an IRS ruling year of 1957, and donations are tax-deductible.

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Contact Information

  http://www.wn.org

  5600 N. May Avenue
Suite 160
Oklahoma City OK 73112 

  800-242-6387


 Important note on the timeliness of ratings

The IRS is significantly delayed in processing nonprofits' annual tax filings (Forms 990). As a result, the Financial and Accountability & Transparency score for World Neighbors is outdated and the overall rating may not be representative of its current operations. Please check with the charity directly for any questions you may have.

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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.




Exceptional

This charity's score is 92.88, 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.


Back to Overall

Star Rated Report

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Program Expense

Program Expense Ratio

84.8%


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

5.2%


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

9.9%


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

4.1%


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

$0.08


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

2.15 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

-7.74%


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



Kate Schecter, President & CEO

$189,050 (6.20% 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:

Foreign organization (BMF activity code: 911)

Pacifism and peace (BMF activity code: 520)


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.


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

  • Fundraising Capacity

  • Revenue


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

World Neighbors' fundraising strategy is three-fold: i) direct mail to a large donor base, ii) face-to-face donor cultivation/solicitation of major gifts from a select donor base and iii) face-to-face planned giving discussions/gifts with a small base of long-term donors. Due to the pandemic, strategies ii and iii were severely curtailed.


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

World Neighbors is an international, non-governmental organization. We work in very poor countries in Latin America and the Caribbean (Bolivia, Guatemala, Haiti and Peru), West Africa (Burkina Faso and Mali), East Africa (Kenya, Tanzania and Uganda), South Asia (India and Nepal) and in Southeast Asia (Indonesia and Timor-Leste). Although World Neighbors' response to the pandemic in those countries was quick, the countries' overall responses to preventative measures varied. As a result, borders were closed intermittently and lockdowns have occurred. Because World Neighbors employs local staff to conduct all local programmatic work, we were able to deliver our programs (which are heavily focused on trainings/workshops) using technologies such as WhatsApp and Zoom.


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

Staff were advised to remain at home and observe preventative measures as prescribed by the Centers for Disease Control. In the USA, all but one staff member has been working from home throughout the pandemic. One staff member has worked at headquarters, observing social distancing, to manage daily office routines such as receipt of mail/parcels, accounting and banking/treasury functions. There has been limited cross-border travel in the regions; no international travel to/from the USA; and very limited travel within the USA. Working from home, to a significant extent, has become the "new norm" during the pandemic. The majority of our staff are fully vaccinated and we are working steadfastly to have all World Neighbors' staff vaccinated as quickly as possible.


Innovations the organization intends to continue permanently after the pandemic:

Zoom meetings have become institutionalized throughout the fabric of World Neighbors - from Lima, Peru to Kathmandu, Nepal to Oecusse, Timor-Leste - and many places in-between. Zoom meetings not only allow us to meet internally with all our colleagues around the world, they also provide a no-cost professional forum for meetings with funders and government agencies.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
5/1/20202019 92.88
4/1/20192018 90.97
5/1/20182017 93.97
6/1/20172016 91.74
10/1/20162015 87.79
6/1/20162014 81.05
Rating Version: 2.0
12/1/20152014 80.10
9/1/20152014 79.90

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.

7/1/20142013 73.55
4/1/20142012 70.53
11/1/20132012 72.40
5/1/20122011 83.32
9/20/20112010 77.16
Rating Version: 1.0
3/1/20112010 68.47
8/1/20102009 68.60
6/1/20092008 91.42
6/1/20082007 92.44
4/1/20072006 91.14
4/1/20062005 81.72
3/1/20052004 72.10
2/1/20042003 77.85
2/5/20032002 91.00
10/15/20022001 93.81

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

100

out of 100

World Neighbors is highly cost-effective, earning a passing score. This score has no effect on the organization's Star Rating.


Impact

$240 offsets one year of personal carbon emissions for a typical American.



Back to Overall

Impact & Results Report

100

of 100 points


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Rated Program

Rated Program


Program

KINGA program, Rorya District in Tanzania

Activities

The program plants trees to reforest or afforest land in order to sequester carbon to avert greenhouse gas emissions.

Program Type

Afforestation and Reforestation

Beneficiaries Served

Program Geography

Time Period of Data

1/1/19 to 12/31/19


Learn how we assess the impact of nonprofits

Outcomes and Cost

Outcomes: Changes in the lives of those served by a nonprofit. They can be caused by the nonprofit.

Costs: The money spent by a nonprofit and its partners and beneficiaries.

Impact: Outcome caused by a nonprofit relative to its cost.

Cost-effectiveness: A judgment as to whether the cost was a good use of resources to cause the outcome.


Outcome Metric

Years of personal carbon emissions offset


Outcome Data Source

Ratings are based on data the nonprofit itself collects on its work. We use the most recent year with sufficient data. Typically, this data allows us to calculate direct changes in participants' lives, such as increased income.


The nonprofit submitted data on how many hectares of land it reforested or afforested, as well as general information on the type of land on which the nonprofit planted.


Method for Attributing Outcomes

We don't know if the observed changes were caused by the nonprofit's program or something else happening at the same time (e.g., a participant got a raise). To determine causation, we take the outcomes we observe and subtract an estimate of the outcomes that would have happened even without the program (i.e., counterfactual outcomes).


We estimate the carbon stored by reforestation and afforestation programs based on the carbon that we would expect to be sequestered on the type of land on which the nonprofit plants, if the nonprofit did not run its programs. For organizations planting on cropland, we also estimate the leakage: the carbon emitted as a result of changes in land use on other land in order to meet demand for crops.


Cost Data Source

After estimating the program's outcomes, we need to determine how much it cost to achieve those outcomes. All monetary costs are counted, whether they are borne by a nonprofit service deliverer or by the nonprofit’s public and private partners.


Program cost data reported by the nonprofit. Partner and beneficiary costs reported by the nonprofit or estimated by Charity Navigator.


Cost Calculation

$2,000 program costs + $0 partner costs + $0 beneficiary costs = $2,000 total costs


Impact and Determination

We calculate impact, defined as the change in outcomes attributable to a program divided by the cost to achieve those outcomes.

Impact Calculation

$2,000 total costs / 8 years of personal carbon emissions offset = roughly $240 offsets one year of personal carbon emissions for a typical American.

Benchmark for Rating

Impact & Results scores of reforestation and afforestation programs are based on a comparison to the social cost of carbon. The social cost of carbon represents the cost to society of emitting a metric ton of carbon dioxide equivalent greenhouse gasses into the atmosphere. If carbon was efficiently priced in a carbon market, our benchmark of $3888 is approximately what the typical American would pay each year to maintain their current level of emissions, in 2021 USD. Nonprofits score 100 points if they can offset the carbon emissions of a typical American for less than $2916 in 2021 USD. They score 75 points if they can do so for between $2916 (i.e. 75% of the benchmark) and $4860 (i.e. 125% of the benchmark). If a nonprofit reports impact but doesn't meet the benchmark for cost-effectiveness, it earns a score of 50.

Determination

Highly cost-effective

Analysis Details


Analysis conducted in 2022 by Charity Navigator using data submitted by the nonprofit, theory and evidence from scientific research studies, and public datasets.

Additional Information

Unscored

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Largest Programs

Largest Programs



World Neighbors reported its largest program on its FY 2020 Form 990 as:


$2,583,882

Spent in most recent FY

100%

Percent of program expenses


PROGRAM SERVICE ACCOMPLISHMENTS INCLUDE INTERNATIONAL PROGRAMS, PUBLIC EDUCATION, OVERSEAS PROGRAM SERVICES AND PROGRAM FAMILIARIZATION.OUR RATIO OF PROGRAM/ADMINISTRATIVE EXPENSES IS APPROXIMATELY 83 ... (More)


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 World Neighbors 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


World Neighbors (WN) inspires people and strengthens communities to find lasting solutions to hunger, poverty and disease, and to promote a healthy environment.


Source: Nonprofit submitted responses

Vision

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


WN's purpose is to strengthen the capacity of marginalized communities to meet their needs and to sustain an equitable and inclusive development process.


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: To continue advocating for marginalized populations, women’s equity, rights and health.

Goal Type: This goal reflects our commitment to further our advocacy work for our organization and or cause area.


Goal Two: To increase the number of communities/individuals served in the geographic areas where WN has programs and explore possibilities for expansion into other areas in existing countries and new countries.

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


Goal Three: To work with field staff to ensure consistent monitoring and evaluation (M&E) of all programs, using uniform definitions of terms and outcomes, and to continually refine and improve processes for M&E.

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

1. Over the past year our field leadership team, consisting of five Regional Directors (in Latin America and the Caribbean, West Africa, East Africa, South Asia and Southeast Asia) all received individual media relations training. Working one-on-one with a specialized consultant, the staff learned about speaking with journalists, developing story ideas and editorials and honing their public speaking skills. 2. We nominated one of younger staff in Oklahoma to a year-long course with the United States Global Leadership Coalition and she was accepted to the 2021 inaugural class of “Next Gen Global Leaders.” She is meeting with other young leaders from around the country and leading professionals in the field of international development throughout this calendar year.

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

  • Policy Advocacy

What are this organization’s external mobilizaton efforts?

Empowering community members as program leaders and working in collaboration with government and NGO partners is key to the WN mission of creating lasting change. WN typically works in communities for eight to 10 years, beginning by helping community members set their own priorities and continuing through years of progressive training and technical support. Our goal is that when WN graduates a community, its leaders will continue implementing program initiatives through savings and credit groups, farmer-to-farmer exchanges, and agricultural/entrepreneurship cooperatives. By collaborating with government and NGO entities throughout the process, WN maximizes the effectiveness of its programming and policy advocacy, frequently engages as a thought leader, and helps communities develop enduring support networks. WN actively promotes its programs through robust traditional marketing and communications such as a quarterly newsletter and through social media.

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.


COVID-19 restrictions on travel and gatherings presented significant obstacles in fiscal year 2021 (the year ending June 30, 2021), but by utilizing technology and creatively adapting to the new circumstances, WN was able to keep programs moving forward in more than 700 communities in 13 countries worldwide. WN’s commitment to hiring local trainers and empowering community members as program mobilizers and volunteers served us well during this crisis. WN adapted during the pandemic by: • Restrictions kept WN’s regional and national staff from traveling to our remote and rural communities, but they were able to utilize virtual communication tools to stay in contact with local trainers and community mobilizers who, in turn, continued to implement program activities. • Because travel restrictions limited access to agricultural supplies and markets, WN helped farmers adapt their crop strategies. For example: planting crops that could be consumed locally, making organic fertilizers and pesticides utilizing animal waste, and growing native crops using locally-sourced seeds. Farmers in our communities improved post-harvest storage conditions and converted crops to valued-added products, for example groundnuts to peanut butter. • Rather than traditional trainings that drew all adults of a village and large-scale multi-community events like health fairs, we held smaller trainings and events, strictly adhering to safety protocols. • We incorporated COVID-19 education and precautions into established water, sanitation and hygiene programs and trainings conducted by community and reproductive health volunteers. • Within our rural livelihoods focus area, WN encouraged the launching of small businesses such as mask or soap production, that capitalized on market demands. • Recognizing the pandemic’s mental toll on WN’s regional staff, our President and CEO increased the frequency and scope of Zoom calls with Regional Directors and their teams.

Source: Nonprofit submitted responses

Additional Information

Unscored

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Organization Leadership

Organization Leadership


Kate Schecter, Ph.D.

President and CEO

Dr. Susan Chambers

Board 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

90

out of 100

World Neighbors has earned a passing score. This score has no effect on the organization's Star Rating. The organization provided data about its Diversity, Equity, & Inclusion (DEI) practices (see report below).

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

  • Constituent Feedback: Not Scored

  • Diversity, Equity, & Inclusion: 90/100 (100% of beacon score)


Back to Overall

Culture & Community Report

90

of 100 points

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Constituent Feedback

Diversity, Equity, & Inclusion

90/100 points

100% of beacon score


This organization's score of 90 is a passing score. The organization reported that it is implementing 7 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


Constituent Feedback and Listening Practice data are not available for this organization. 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.



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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