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West Jordan UT | IRS ruling year: 1988 | EIN: 74-2494806
REAL LIVES. REAL COMMUNITIES. REAL CHANGE: For over 30 years, CHOICE Humanitarian has worked with rural community members who face the many dimensions of poverty. We ... (More)
REAL LIVES. REAL COMMUNITIES. REAL CHANGE: For over 30 years, CHOICE Humanitarian has worked with rural community members who face the many dimensions of poverty. We identify root-level opportunities and execute on poverty solutions that help unlock choice, build capacity, and cultivate resilience for community members. VISION: We envision a world in which people everywhere have the choice and the means to live in peace, prosperity and freedom. MISSION: CHOICE Humanitarian supports the efforts of people around the world to reduce global poverty and build self-reliant, resilient communities. VALUES: COLLABORATIVE, PROBLEM-DRIVEN AND SOLUTION-FOCUSED, UNIFYING, INNOVATIVE, TRANSPARENT, INCLUSIVE, IMPACTFUL (Less)
Good
This charity's score is 86%, earning it a Three-Star rating. If this organization aligns with your passions and values, you can give with confidence.
This overall score is calculated from multiple beacon scores: 90% Accountability & Finance, 10% Leadership & Adaptability. Learn more about our criteria and methodology.
We recognize that not all metrics and beacons equally predict a charity’s success. The percentage each beacon contributes to the organization’s overall rating depends on the number of beacons an organization has earned.
Use the tool below to select different beacons to see how the weighting shifts when only one, two, or three beacons are earned.
| Date Published | Form 990 FYE | Overall Score | Overall Rating |
| Rating Version: 2.1 | |||
| 5/1/2022 | 2020 | 84.13 | |
| 2/1/2022 | 2019 | 79.04 |  |
| 9/1/2021 | 2019 | 77.65 | |
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. | |||
| 5/1/2020 | 2018 | 88.94 | |
| 9/3/2019 | 2017 | 90.87 |  |
| 8/1/2019 | 2017 | 88.01 | |
| 5/1/2018 | 2016 | 90.58 | |
| 7/1/2017 | 2015 | 93.98 | |
| 6/1/2016 | 2014 | 92.24 | |
| Rating Version: 2.0 | |||
| 2/1/2016 | 2014 | 92.86 | |
| 2/1/2015 | 2013 | 93.25 | |
| 2/1/2014 | 2012 | 95.54 | |
| 12/20/2012 | 2011 | 93.74 | |
| 8/1/2012 | 2010 | 93.32 | |
| 4/1/2012 | 2010 | 88.48 | |
| 12/23/2011 | 2010 | 75.54 | |
| 9/20/2011 | 2009 | 67.64 |  |
| Rating Version: 1.0 | |||
| 3/1/2011 | 2009 | 91.73 | |
| 4/1/2010 | 2008 | 84.08 | |
| 12/17/2008 | 2007 | 81.74 | |
| 6/1/2008 | 2006 | 70.09 | |
| 11/1/2006 | 2005 | 73.56 | |
| 4/1/2006 | 2004 | 65.22 | |
| 2/1/2005 | 2003 | 67.59 | |
| 11/1/2003 | 2002 | 78.76 | |
| 10/15/2002 | 2001 | 93.79 | |
The IRS is significantly delayed in processing nonprofits' annual tax filings (Forms 990). As a result, the Accountability & Finance score for CHOICE Humanitarian 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.
CHOICE Humanitarian has earned a 84% for the Accountability & Finance beacon. See the metrics below for more information.
This beacon provides an assessment of a charity's financial health (financial efficiency, sustainability, and trustworthiness) and its commitment to governance practices and policies.
This Accountability & Finance score represents IRS Form 990 data up until FY 2020, which is the most recent Form 990 currently available to us.
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Full Credit
Partial Credit
No Credit
Not Applicable
Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.
Sources Include: IRS Form 990
| Independent Voting Board Members ... (More) The presence of an independent governing body is strongly recommended by many industry professionals to allow for full deliberation and diversity of thinking on governance and other organizational matters. Our analysts check the Form 990 to determine if the independent Board members are a voting majority and also at least five in number. (Less) | |
| 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:
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| 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.
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| Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More) Making loans to related parties such as key officers, staff, or Board members, is not standard practice in the sector as it may divert the charity's funds away from its charitable mission and can lead to real and perceived conflict-of-interest problems. This practice is discouraged by sector trade groups which point to the Sarbanes-Oxley Act when they call for charities to refrain from making loans to directors and executives. And the IRS is concerned enough with the practice that it requires charities to disclose on their Form 990 any loans to or from current and former officers, directors, trustees, key employees, and other "disqualified persons." Furthermore, some state laws go so far as to prohibit loans to board members and officers. And although employees and trustees are permitted to make loans to charities, this practice can also result in real and/or perceived conflict of interest problems for the charity. Furthermore, it is problematic because it is an indicator that the organization is not financially secure. (Less) | |
| Documents Board Meeting Minutes ... (More) An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference. Charities are not required to make their Board meeting minutes available to the public. As such, we are not able to review and critique their minutes. For this performance metric, we are checking to see if the charity reports on its Form 990 that it does keep those minutes. In the future, we will also track and rate whether or not a charity keeps minutes for its committee meetings. (Less) | |
| Distributes 990 to Board Before Filing ... (More) Providing copies of the Form to the governing body in advance of filing is considered a best practice, as it allows for thorough review by the individuals charged with overseeing the organization. The Form 990 asks the charity to disclose whether or not it has followed this best practice. If the charity has not distributed its Form 990 to the board before filing, then we deduct 4 points from its Accountability and Transparency score. (Less) | |
| Does not Compensate Board Members ... (More) The IRS requires that any compensation paid to members of the charity's governing body be listed on the Form 990. Furthermore, all members of the governing body need to be listed whether or not they are compensated. It is not unusual for some members of the board to have compensation listed. The executive director of the organization frequently has a seat on the board, for instance, and is compensated for being a full time staff member. However, it is rare for a charity to compensate individuals only for serving on its Board of Directors. Although this sort of board compensation is not illegal, it is not considered a best practice. (Less) | |
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
| Conflict of Interest ... (More) Such a policy protects the organization, and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer or director of the organization. Charities are not required to share their conflict of interest policies with the public. Although we can not evaluate the substance of its policy, we can tell you if the charity has one in place based on the information it reports on its Form 990. If the charity does not have a Conflict of Interest policy, then we deduct 4 points from its Accountability and Transparency score. (Less) | |
| Whistleblower ... (More) This policy outlines procedures for handling employee complaints, as well as a confidential way for employees to report any financial mismanagement. Here we are reporting on the existence of a policy as reported by the charity on its Form 990. (Less) | |
| Records Retention and Destruction ... (More) Such a policy establishes guidelines for handling, backing up, archiving and destruction of documents. These guidelines foster good record keeping procedures that promotes data integrity. Here we are reporting on the existence of a policy as reported by the charity on its Form 990. If the charity does not have a Records Retention and Destruction Policy, then we deduct 4 points from its Accountability and Transparency score. (Less) | |
| CEO Compensation Process ... (More) This process indicates that the organization has a documented policy that it follows year after year. The policy should indicate that an objective and independent review process of the CEO's compensation has been conducted which includes benchmarking against comparable organizations. We check to be sure that the charity has reported on its Form 990 its process for determining its CEO pay. (Less) | |
| 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:
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) | |
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
| CEO Salary Listed on 990 ... (More) Charities are required to list their CEO's name and compensation on the Form 990. Our analysts check to be sure that the charities complied with the Form 990 instructions and included this information in their filing. (Less) | |
| Board of Directors Listed on Website ... (More) Our analysts check to see if the charity lists Board members on its website. Publishing this information enables donors and other stakeholders to ascertain the make up of the charity's governing body. This enables stakeholders to report concerns to the Board. Charity Navigator does not cross-check the Board members listed on the website with that reported on the Form 990, because the latter often isn't available until more than a year after the charity's fiscal year ends. In that time, the charity's Board members may have changed, and the charity typically reflects those more recent changes on the website. (Less) | |
| Key Staff Listed on Website ... (More) It is important for donors and other stakeholders to know who runs the organization day-to-day. Charity Navigator does not cross-check the leadership listed on the website with that reported on the Form 990 because the latter often isn't available until more than a year after the charity's fiscal year ends. In that time, the charity's leadership may have changed and the charity typically reflects those more recent changes on the website. In other words, since the Form 990 isn't especially timely, it can not be used to verify the leadership information published on the charity's site. (Less) | |
| Audited Financial Statements Listed on Website ... (More) We check the charity's website to see if it has published its audited financial statements for the fiscal year represented by the most recently filed IRS Form 990. It is important for donors to have easy access to this financial report to help determine if the organization is managing its financial resources well. We currently rate charities on whether or not they publish their audit on their website. (Less) | |
| Form 990 Available on Website ... (More) We check the charity's website to see if it has published its most recently filed IRS Form 990 (a direct link to the charity's 990 on an external site is sufficient). It is important for donors to have easy access to this financial report to help determine if the organization is managing its financial resources well. (Less) | |
Full CreditPartial CreditNo CreditNot ApplicableLiabilities to Assets Ratio - 34.50% - 5/10 ptsLiabilities to Assets Ratio - 34.50% - 5/10 pts
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
Working Capital Ratio - 0.33 years - 5/10 ptsWorking Capital Ratio - 0.33 years - 5/10 pts
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
Fundraising Efficiency - $0.08 - 10/10 ptsFundraising Efficiency - $0.08 - 10/10 pts
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
Administrative Expense Ratio - 13.90% - 10/10 ptsAdministrative Expense Ratio - 13.90% - 10/10 pts
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 Expense Ratio - 9.40% - 10/10 ptsFundraising Expense Ratio - 9.40% - 10/10 pts
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
Program Expense Ratio - 76.50% - 7.57/10 ptsProgram Expense Ratio - 76.50% - 7.57/10 pts
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
Program Expense Growth - -17.59% - 0/10 ptsProgram Expense Growth - -17.59% - 0/10 pts
Organizations that demonstrate consistent annual growth in program expenses are able to outpace inflation and thus sustain their programs year to year. These organizations also supply givers with greater confidence by maintaining broad public support for their programs. 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
This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.
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
Stephen Pierce, CEO
$118,583 (4.65% 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 2019
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:
Supplying money, goods or services to the poor (BMF activity code: 560)
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)
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 search for this organization's Forms 990 on the IRS website (if any are available). Simply enter the organization's name (CHOICE Humanitarian) or EIN (742494806) in the 'Search Term' field.
This organization was impacted by COVID-19 in a way that effected their financial health in 2020. This normally would have reduced their star rating. 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, and doing this pauses our revision of their rating. Charities may submit their own pandemic responses through their nonprofit portal.
CHOICE Humanitarian reported being impacted by COVID-19 in the following ways:
Program Delivery
Fundraising Capacity
Revenue
Staffing
Administrative Capacity
Grants Received
Balance Sheet
How COVID-19 impacted the organization's operations financially:
2020 was an unprecedented year. The whole world reeled from the unpredictable and prolonged blows of a novel virus. As fear, shortages, and sickness spread from continent to continent, a fear for the welfare of CHOICE Humanitarian's rural communities was felt perhaps more keenly than ever before. In response, CHOICE spearheaded the CHOICE Cares Campaign where generous donors raised $250,000 which went directly toward COVID relief.
How COVID-19 impacted the organization's delivery of programs:
CHOICE’S ability to provide immediate pandemic relief from the CHOICE Cares donations was based on valuable experience and strong working relationships cultivated over many years. In 2020, the CHOICE in-country teams worked tirelessly to provide remote villages with healthcare resources, nutritious food, and social and economic support, all of which are in even greater need since the pandemic started.
How this organization adapted to changing conditions caused by COVID-19:
In many underdeveloped countries, healthcare is inadequate and even nonexistent. CHOICE increased access to personal protective equipment in all 8 countries, along with other need-based resources. The CHOICE Humanitarian Nepal team, for example, worked with the local government to convert the recently completed Rural Municipality Hospital to a quarantine facility for COVID-19 patients. This preventative measure helped control the spread of the disease in rural areas and continues to be a significant resource in the fight against the virus.
Innovations the organization intends to continue permanently after the pandemic:
For countries dependent on agriculture, the pandemic began when agriculture was off-season and food shortages were already abundant, exacerbating the issue of food security. In Guatemala, the country CHOICE team partnered with a local Rotary Club and community leaders to provide food kits, thereby preventing malnutrition and starvation for 200 families. Meanwhile, long-term solutions, such as water purification systems, began construction.
Not Currently Scored
CHOICE Humanitarian cannot currently be evaluated by our 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.
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CHOICE Humanitarian reported its three largest programs on its FY 2020 Form 990 as:
Spent in most recent FY
Percent of program expenses
Environmental Programs
Spent in most recent FY
Percent of program expenses
Education and Health Programs
Spent in most recent FY
Percent of program expenses
Economic Development
CHOICE Humanitarian cannot currently be evaluated by our Culture & Community methodology because we have not received data from the charity regarding its Constituent Feedback or Equity Practices strategies.
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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CHOICE Humanitarian has earned a 100% for the Leadership & Adaptability beacon. See the metrics below for more information.
This beacon 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.
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Full CreditPartial CreditNo CreditNot ApplicableMission - 10/10 ptsMission - 10/10 pts
The nonprofit organization presents evidence of strategic thinking through articulating the organization's mission
REAL LIVES. REAL COMMUNITIES. REAL CHANGE: For over 30 years, CHOICE Humanitarian has worked with rural community members who face the many dimensions of poverty. We identify root-level opportunities and execute on poverty solutions that help unlock choice, build capacity, and cultivate resilience for community members. VISION: We envision a world in which people everywhere have the choice and the means to live in peace, prosperity and freedom. MISSION: CHOICE Humanitarian supports the efforts of people around the world to reduce global poverty and build self-reliant, resilient communities. VALUES: COLLABORATIVE, PROBLEM-DRIVEN AND SOLUTION-FOCUSED, UNIFYING, INNOVATIVE, TRANSPARENT, INCLUSIVE, IMPACTFUL
Vision - 10/10 ptsVision - 10/10 pts
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.
We believe the path out of poverty starts with choice. When you give a rural community living in poverty more choice, you open up possibilities for a better future.
Source: Nonprofit submitted responses
Goals - 20/20 ptsGoals - 20/20 pts
The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.
Goal One: CHOICE Humanitarian is increasing our emphasis on best-in-class international development practices, which includes a “systems thinking” approach to all our existing and new programs and projects.
Goal Type: New program(s) based on observed changes in needs among our constituencies/communities served.
Goal Two: Through utilization of appropriate technology and collaboration with tech professionals, CHOICE will connect communities to technological infrastructure and resources to accelerate progress.
Goal Type: Grow, expand, scale or increase access to the existing programs and services.
Goal Three: Using our new Human Capital Investment Program, CHOICE will Increase our capacity and ensure our teams are “fit-for-purpose” with all the tools and competencies they need to achieve excellence.
Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).
Leadership Development - 15/15 ptsLeadership Development - 15/15 pts
The nonprofit provides evidence of investment in leadership development
Last year CHOICE undertook the most far-reaching institutional strengthening initiatives in our history. CHOICE will invest in our most valuable assets—our people. These are the men and women of our CHOICE teams around the world who work hard to help rural communities achieve a better life. These high-performing, dedicated professionals deal with difficult government requirements, stagnant economies, supply chain interruptions, high rates of unemployment, harsh climatic conditions, poor communication and transportation capabilities, and impossible logistics, all while operating on lean budgets. Now is the time to radically change, invest, and improve so that CHOICE’s utilization of generous donations can be translated into multiplied impact in the field. We will launch a comprehensive program to ensure our teams are “fit-for-purpose” with all the tools and competencies they need to achieve excellence. We have titled this the Human Capital Investment Program (HCIP).
Mobilizing for Mission - 15/15 ptsMobilizing for Mission - 15/15 pts
The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.
Strategic Partnerships
Networks of Collective Impact Efforts
Thought Leadership
Raising Awareness
Community Building
Policy Advocacy
Everything CHOICE does is with and through the communities. This starts with outstanding country directors and teams. These staff members are local to the area—they know the communities we serve, and they often speak indigenous languages like Q'eqchi' in Guatemala or Aymara in Bolivia. Our country teams ensure projects are culturally appropriate, will develop the capacity of local community members, and are sustainable well past CHOICE's involvement. Local directors work hand in hand with local government, charitable organizations and community leaders to ensure collaboration and success.
Adaptability Story - 30/30 ptsAdaptability Story - 30/30 pts
The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.
If the last two years have taught us anything, it’s that for most of the world’s poor, the pandemic is one more crisis in a life filled with daily struggles. With this understanding, CHOICE programs and projects focused to help communities disrupt the effects of the pandemic and build the resilience they need to weather the crises. Our problem-driven, local systems approach sought to address the main drivers of poverty and introduce at least one new option into environments lacking in opportunities. We built adaptability into this approach, varying it by country and local context. For example, when the pandemic hit the Navajo Nation in full force, CHOICE Humanitarian worked with local leaders to identify the most vulnerable and delivered food directly to their homes, bringing much-needed nutritious food to families who would did not have access. This project began a long term relationship between CHOICE and the Nation. Plans were made to build five Hoophouses on the Former Bennett Freeze Area (FBFA) as part of a food security initiative. These plans helped farmers build resilience in planting by utilizing innovative ways to extend their planting season and create enterprise opportunities. CHOICE now has a local directer and team members on the Nation and work is moving forward to create a path out of poverty for communities in the Navajo Nation. Additionally, In 2021 we placed a huge emphasis on using technology in smarter ways to accelerate progress and multiply the results of our programs. With generous support from one of our donors, we began the process to improve our IT systems across the organization, which allowed us to streamline our work and increase our impact at the same time. This effort is ongoing as we assess our use of technology across all our projects.
Impact & Results
Accountability & Finance
Culture & Community
Leadership & Adaptability
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