The investigative team for AC360 at CNN is working on a series of reports discussing charities. The series appears to have been focusing on some unpleasant things going on in the world of fundraisers.
Last week Anderson Cooper’s team started looking at the valuation issue of GIKs. Their report can be found here: Charities accused of overvaluing donations.
Check out the report if you are interested in GIK valuation issues.
They have invoices used by SPCA International for a large volume of medicines that were sent to an animal welfare organization in Nepal. They also have the invoice used for customs clearance. The income recognized on the books is $816,324 and the customs value is $2,500.
Since I have minimal actual transaction data, I was interested because they showed the invoices on the screen. I paused the video and jotted down what I could read.
Here’s what I could read at the 5:25 mark:
I plugged the total value for the third item, which doesn’t mess up the rest of my analysis since I couldn’t read the name of the med anyway. The Cipro dose looks like 200mg, but since that isn’t listed in the IDPIG, I’m guessing the actual dose is 250mg.
Most of the value is in the Cipro.
Here is what I could read at the 5:43 mark for the customs info:
|my calculated amount||2,415|
I misread something since I came up with a total of 2,415, but the numbers are close.
Then I looked up the values in the IDPIG to see how the above data compares. Also calculated the per pill amounts.
Here is what I found:
|Albendazole||1.58||0.0082||median 0.0166 for 7 vendors|
|ampicillin||0.21||0.0010||median 0.0174 for 4 vendors|
|ciprofloxacin||4.58||0.0120||median 0.0166 for 7 vendors|
Values used on the customs invoice are very close to what multiple vendors offer. The amounts used to record GIK income are large multiples of the IDPIG amount.
Three significant items to me from the CNN report:
- I have an actual transaction to analyze.
- The South Carolina Secretary of State wants to see a list of Charity Services International’s clients. That obviously means the Secretary is interested.
- I previously thought mebendazole was the main issue in GIK valuation. It looks like Cipro and Ampecillin are an issue as well.
One final observation. The text accompanying the CNN report discussed Operation Blessing International. I’ll comment on their audited financial statements soon. My point is that the CNN team is now looking at organizations in the faith-based community. It looks to me like they’ve focused on the secular community up ’till now.