World Help says they overstated revenue by half of the audited amount

That is according to an article by William Barrett in Forbes – Big Charity Admits Wildly Overstating Donated Goods

World Help disclosed to Mr. Barrett that revenue for 2011 was overstated by about $135M of the reported $239M.

The core issue is that for one transaction, a donation of medical goods from a California-based NPO, World Help alleges that the amounts on the paperwork were altered when provided to World Help. Check out the full article for more details.

The organization is planning to release a revised 990 and financial statements in the next few days.

There are issues that involve a restatement other than just that one transaction.  Here is my comment on the Forbes article:

It looks like there are some other transactions that the ministry considers problematic.

Here’s my calculation from your article – Total revenue will drop about $135M (from 239.3M on the 990 and audited financial statements to the above mentioned $104M). The mentioned transaction will reduce revenue about $103M (from $106M as reported to now claimed amount of $3M).

That means there is an additional $32M of adjustments that will be made to reported 2011 revenue.

Like I said, check out the full article. And stay tuned.

Update:

2 Responses to World Help says they overstated revenue by half of the audited amount

  1. […] World Help says they overstated revenue by half of the audited amount […]

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