Mission: Founded in 1979, Operation USA helps communities alleviate the effects of disasters, disease and endemic poverty throughout the world by providing privately-funded r ... (More)
Operation USA is a 501(c)(3) organization, with an IRS ruling year of 1980, and donations are tax-deductible.
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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 89.03, earning it a 3-Star rating. Donors can "Give with Confidence" to this charity.
This score is calculated from two sub-scores:
Finance: 84.50 View details
Accountability & Transparency: 100.00 View details
This score represents Form 990 data from 2019. More recent filing data is available, but it has not been factored into this score, due to COVID-19's effect on this organization.
View this organization’s historical ratings.
Rating update postponed due to COVID-19's impact on this organization. View Operation USA's response.
Star Rated Report
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Program Expense Ratio
89.9%
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
7.3%
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
2.7%
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
0.1%
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
$0.02
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
2.06 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
-24.81%
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:
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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) | |
| 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:
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
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
Richard M. Walden, President, CEO
$169,950 (7.67% 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 2021
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)
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)
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
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.
Operation USA reported being impacted by COVID-19 in the following ways:
Fundraising Capacity
Administrative Capacity
How COVID-19 impacted the organization's operations financially:
Fortunately, due to PPP loans, Operation USA was able to maintain staffing levels through the COVID-19 pandemic. However, due to an overall decline in engagement and donations, our ability to fundraise was decreased from previous years.
How COVID-19 impacted the organization's delivery of programs:
Because OpUSA works primarily in already overlooked and under-served areas, helping the world's most vulnerable families, we saw an exponential increase in needs among our the populations we service during the COVID-19 pandemic. As needs increased and fundraising declined, we were not as able to facilitate projects or deliver cash grants to the extent we would have hoped to.
How this organization adapted to changing conditions caused by COVID-19:
OpUSA adapted rapidly to reshape our material aid distribution programs. Whereas we had previously collected and shipped vital medical and relief materials internationally and to communities across the U.S., during the COVID-19 pandemic we pivoted to focus on masks and PPE distributions here in Southern California. As a result of rapid adaptation among all staff and our local partners, OpUSA was able to get millions of masks and other units of PPE to hospitals, clinics and directly to community members across Southern California. Further, masks became a key component in all our material aid relief efforts, and we delivered thousands of masks to partners in disaster-stricken areas across the U.S. in support of safe shelter sites for the displaced and as protection for front-line responders.
Innovations the organization intends to continue permanently after the pandemic:
OpUSA plans to maintain local public-private partnerships developed during the COVID-19 pandemic moving forward in order to procure material aid and funding more quickly in the wake of major disasters, and to rapidly deploy that aid to the hardest hit areas.
Historical Ratings
| Date Published | Form 990 FYE | Overall Score | Overall Rating |
| Rating Version: 2.1 | |||
| 4/1/2020 | 2019 | 89.03 | |
| 7/1/2019 | 2018 | 87.40 | |
| 7/1/2018 | 2017 | 92.92 |  |
| 8/1/2017 | 2016 | 92.92 | |
| 6/1/2016 | 2015 | 96.08 | |
| Rating Version: 2.0 | |||
| 8/1/2015 | 2014 | 88.37 | |
| 4/1/2014 | 2013 | 94.92 | |
| 7/1/2013 | 2012 | 83.94 | |
| 9/1/2012 | 2011 | 85.55 | |
| 11/1/2011 | 2010 | 87.50 | |
| 9/20/2011 | 2010 | 85.57 | |
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. | |||
| Rating Version: 1.0 | |||
| 2/1/2011 | 2010 | 84.90 | |
| 9/1/2010 | 2009 | 79.62 |  |
| 6/1/2009 | 2008 | 98.30 | |
| 9/1/2008 | 2007 | 99.83 | |
| 3/1/2007 | 2006 | 94.87 | |
| 4/1/2006 | 2005 | 94.86 | |
| 3/1/2005 | 2004 | 92.08 | |
| 2/1/2004 | 2003 | 92.22 | |
| 6/9/2003 | 2002 | 82.24 | |
| 10/15/2002 | 2001 | 94.10 | |
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
Operation 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.
Do you work at Operation USA? Join the waitlist for an updated Impact & Results score.
Additional Information
Unscored
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Largest Programs
Operation USA reported its two largest programs on its FY 2019 Form 990 as:
$1,367,429
Spent in most recent FY
70%
Percent of program expenses
Providing Medical Supplies
$568,705
Spent in most recent FY
29%
Percent of program expenses
Long-Term Recovery Support and Community Development
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 Operation 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.
Leadership & Adaptability Report
100
of 100 points
Mission
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission
Operation USA supports health and education programs in order to help children and families at home and abroad recover and thrive in the wake of disasters, disease, violence and endemic poverty.
Source: Nonprofit submitted responses
Vision
The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.
Every day, we strive to meet the needs of under-served and overlooked populations so that future generations may have the tools they need to create meaningful change in their own communities and lives. Working with partners around the world, we empower communities to recover, build resiliency and thrive in the face of pervasive obstacles during a time of unprecedented global need.
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: Support our nation and the world's most overlooked and under-served communities with the tools, services and supplies they need for children and families to thrive.
Goal Type: Grow, expand, scale or increase access to the existing programs and services.
Goal Two: Support marginalized youths with the resources they need to thrive into adulthood.
Goal Type: New program(s) based on observed changes in needs among our constituencies/communities served.
Goal Three: Develop/implement turn-key fundraising solutions in order to increase overall funding and scale all programs.
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
What has gotten in the way of your oganization pursuing this investment?
OpUSA operates with a small staff (only 5 full time employees), and prides itself on maintaining very low overhead costs, so as much as 95% of dollars donated are directly invested in the programs we operate and the communities we serve. As such, we have opted to minimize/eliminate spending on anything that is not directly necessary for the operation of our organization.
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
Thought Leadership
Raising Awareness
What are this organization’s external mobilizaton efforts?
Our leadership and board members are committed to amplifying Operation USA's mission through brand advocacy, awareness generation and the facilitation of public-private-civil partnerships that directly support OpUSA's efforts in responding to disasters, delivering material aid and making cash grants.
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.
In February 2020, as the COVID-19 pandemic began spreading, OpUSA mobilized quickly—planning to provide relief aid wherever it was needed. By April, it had become clear that the pandemic would sweep the world: decimating vulnerable communities, grinding supply chains to a halt, overwhelming our health care systems and creating many new challenges and needs in all corners of our country and the world. By Spring, an unprecedented response effort was underway. As the pandemic evolved, stopping the spread of, mitigating the impact of and recovering from the virus developed into long-haul, collaborative efforts across the health and humanitarian sectors. OpUSA is so proud to have a role in helping our community during this unfamiliar and scary time—leveraging our decades of experience in disaster response to get aid to those that needed it most. Thanks to major donations of masks and other PPE from generous partners, OpUSA distributed nearly one million masks and hundreds of gallons of hand sanitizer to community-partners in Los Angeles and New York. We also shipped masks to communities hard-hit by natural disasters in California and Louisiana, and to already-vulnerable groups in South Dakota and abroad. Alongside material aid programs, OpUSA also distributed several grants to community-based organizations across the US—aimed at bolstering food security, improving access to housing and health care, supporting programs for children and families and protecting vulnerable population groups—and signed on as fiscal sponsor for Fuel Them LA, delivering nutritious meals to frontline workers. All these relief efforts were made possible by the unwavering support of our donors and the tireless commitment of our staff. The COVID-19 pandemic reminded us that though we are small, with hard work, we can have great impact. And, though we are faced with new and unprecedented circumstances, we remain committed to combating some of the world's most pervasive challenges.
Source: Nonprofit submitted responses
Additional Information
Unscored
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Organization Leadership
Richard Walden
President, CEO
Michael Mahdesian
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
Not Currently Scored
Operation USA is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback or Diversity, Equity, & Inclusion data. Nonprofit organizations are encouraged to fill out the How We Listen and Equity Practices sections of their Candid profile.
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.
Culture & Community Report
Unscored
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Diversity, Equity, & Inclusion
This organization has not provided information regarding the diversity, equity and inclusion (DEI) practices it is presently implementing. As such, the organization has not earned a score on this metric. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.
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
