Comments from others on World Help’s restatement

April 29, 2013, 12:26 pm

Aronson Nonprofit Report has a comment out today on the World Help restatement: Charity Overstate Revenue by $222 Million and You Thought Your Restatement Was Bad.

Middle paragraph:

Once again, we have an issue of claiming value for donated medicine which is an ongoing blight in the nonprofit community, but in this case, the donors say they never gave any donation. The finger-pointing is heated and people are no longer cooperating with the press.

Carol Barnard points out this creates an issue for other NPOs who have received donations from World Help.

If World Help’s GIK has been overstated by 99.3%, it seems like that could have an impact on the valuation used for those who received GIK from them.

World Help reduces 2011 revenue by 92.8%

April 28, 2013, 5:49 pm

World Help has released their 2012 audited financial statements which you can find on their website at this link.

The total revenue initially reported in the audited financial statements for the 2011 fiscal year was $239.3M (audit opinion dated 3/12/12). In the most recent financial statements, the total revenue for 2011 is $17.3M (audit opinion dated 4/10/13).

That is a reduction of $222.0M, or 92.8% of the amount initially reported.

Contributions of GIK were initially reported at $223.66M for 2011 (3/12/12) and currently reported at $1.62M (audit report date 4/10/13). That is a decline of $222.04M, or 99.3% of the initial amount.

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For a deeper education, try sketching out the relationships mentioned in the article about World Help’s GIK

December 19, 2012, 9:02 am

One technique used by auditors when trying to understand a complex situation is to get a piece of paper and draw all the components, cash flows, and relationships. Sometimes there is just too much going on to understand the words and you need a picture.

Try doing that with the Chronicle of Philanthropy’s article, A Consultant’s Revenue-Generating Tactics Draw Scrutiny.  I think you’ll get a superb education on the GIK issues in the NPO community.

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Revised 2009 revenue for World Help and graph of revenue for last 4 years

December 11, 2012, 8:41 am

Shortly after World Help posted revised financial statements for 2011 and 2010, it posted revised revenue numbers for 2009. After going over the revised numbers, I’ll show a graph tracing their total revenue over the last four years.

The revised 2009 information is visible in the audited financial statements for 2010/2009. You can find the page with World Help’s financial reports here. You can click directly to the 2010/2009 audited financial statements here.

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Major article on World Help and their GIK fundraiser

December 10, 2012, 6:04 pm

I just saw the article.

If you’ve been following the challenges World Help has been going through regarding their GIK revenue, you will definitively want to check out a major article from The Chronicle of PhilanthropyA Consultant’s Revenue-Generating Tactics Draw Scrutiny.

You might want to get a fresh cup of coffee before you start.  Don’t know the word count, but on my computer the article is 13 screens long.

I’ll need to read this a few more times to absorb the details. In the meantime, a few initial observations:

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Charity Navigators posts a ‘donor advisory’ for World Help

December 3, 2012, 2:20 pm

Today there is a donor advisory visible at Charity Navigators for World Help.  This replaces the rating information provided for the ministry.

You can see the advisory here.

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World Help posts statement on revision of their 2011 and 2010 financial information

December 1, 2012, 10:11 am

Last evening, World Help posted a statement on the revisions made this week to their 990 and audited financial statements.  You can find the statement here.

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