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Grameen America Inc. - Massachusetts

 150 West 30th Street, Floor 8
 New York, NY 10001
[P] (718) 704-0443
[F] (718) 306-9678
www.grameenamerica.org
[email protected]
Daniel Delehanty
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INCORPORATED: 2008
 Printable Profile (Summary / Full)
EIN 20-8497991

LAST UPDATED: 07/26/2016
Organization DBA --
Former Names --
Organization received a competitive grant from the Boston Foundation in the past five years No

Summary

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Mission StatementMORE »

Founded by Nobel Peace Prize recipient Muhammed Yunus, Grameen America (GAI) is a not-for-profit 501 (c) 3, dedicated to helping women who live in poverty build small businesses to create better lives for their families. We offer microloans, training, and support to transform communities and fight poverty in the United States.

Mission Statement

Founded by Nobel Peace Prize recipient Muhammed Yunus, Grameen America (GAI) is a not-for-profit 501 (c) 3, dedicated to helping women who live in poverty build small businesses to create better lives for their families. We offer microloans, training, and support to transform communities and fight poverty in the United States.

FinancialsMORE »

Fiscal Year Jan 01, 2016 to Dec 31, 2016
Projected Income $7,818,000.00
Projected Expense $15,806,000.00

ProgramsMORE »

  • 1. Microloans
  • Financial Education
  • Financial Inclusion
  • Peer Network
  • Savings & Credit Building

Revenue vs. Expense ($000s)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

Expense Breakdown 2012 (%)

For more details regarding the organization's financial information, select the financial tab and review available comments.


Overview

Mission Statement

Founded by Nobel Peace Prize recipient Muhammed Yunus, Grameen America (GAI) is a not-for-profit 501 (c) 3, dedicated to helping women who live in poverty build small businesses to create better lives for their families. We offer microloans, training, and support to transform communities and fight poverty in the United States.

Background Statement

Nicole lost her job in New York in 2008 due to the plummeting economy. Rather than supporting her family on a low-wage job, she turned her passion for cooking into a small business with help from Grameen America. Nicole used her first loan of $1,500 to buy equipment needed to prepare and sell her Southern-inspired cuisine at festivals and street fairs in Brooklyn, Queens and the Bronx. Today, she has built her own catering business, employs a staff of 16 and enlists the help of her family for larger events. With the support she received from her Grameen America peers, the microloan, savings, and credit-building programs, Nicole has transformed herself into a small business owner and employer.

Founded in 2008 by Nobel Peace Prize recipient, Muhammad Yunus, Grameen America is dedicated to helping women who live in poverty build small businesses to create better lives for their families. Grameen America is a CDFI providing job creation, poverty alleviation and financial inclusion programs to low-income entrepreneurs in 11 U.S. cities. Grameen America provides microloans and financial services through a unique group-lending model targeted at to female entrepreneurs living in poverty. Grameen America’s program results in measurable outcomes that include access to savings accounts, job creation, small business expansion and increased household income for women and families within low-income neighborhoods.

Grameen America has grown from one operational branch in New York City to operations eleven throughout in the United States: Oakland, San Jose, Omaha, Indianapolis, Los Angeles, Charlotte, San Juan (PR), Austin, Boston and Hudson County (NJ). To date, Grameen America has disbursed nearly $480 MM to more than 75,000 women in these cities to invest in their small businesses. Grameen America is consistently experiencing experiences increased demand for our services. The current focus is on deepening impact in existing locations while engaging in expansion efforts to provide more microloans and program services specifically targeted at to underserved communities in Boston and nationwide.

While traditional financial institutions continue to limit options available for the poor and minimum wage jobs keep workers living in poverty, Grameen America’s program continues to grow in response to escalating demand for jobs, upward economic mobility and higher family incomes.


Impact Statement

GAI operates in 11 cities across the United States and as of June 30, 2016, GAI has provided over 220,000 microloans totaling $479 million to more than 75,000 low-income women across the country. These accomplishments can be attributed to:

•Reaching a low-income population: GAI was founded in order to serve and lend to very low-income people not served by other organizations and who have little exposure to the financial system. No other organization offers a $500-$1,500 first time loan to women living below the poverty line with adverse or no credit history and no collateral.

• Achieving sustainability: Professor Yunus envisioned GAI as a business to serve the poor. After an initial philanthropic investment, the business would become a self-sustaining operation. GAI’s first branch in Queens achieved sustainability in 2013, with all branch expenditures fully covered by interest income from member repayments.

• Scalability in a new market: GAI moved the group-lending model developed in the villages of Bangladesh to the U.S., first in New York, the organization then expanded to a scale large enough to impact income, jobs and financial inclusion for families in a material way across major cities. In 2014, we expanded our reach into new key markets including: San Jose, CA; Boston, MA; Austin, TX; San Juan, PR; and Union City, NJ.
 
This year, we are focusing on deepening our impact. Our goal for the year is to reach 81,000 women served. As our uptake numbers have continued to boom, we are focusing on technology pilots and impact initiatives to improve our work on the ground. These priorities include: 1) introducing online payment processing in convenient locations in order to move to cashless loan repayments for our members; 2) shifting to online forms for data collection at the beginning and end of each loan cycle to improve data quality; and 3) creating custom online apps aimed at introducing our members to online banking.

Needs Statement

  • Financing a growing loan portfolio: The most pressing need for GAI is the liquidity need of our program. Our program grows rapidly yearly, requiring a large amount of loan capital to keep up with the microloan need in our communities. We are investing in new ways to keep up with this growing demand, especially as we continue to scale into new cities.
  • Diversifying our funding base: We have a need to continue to build a more robust pipeline. A diverse fundraising base will help drive scale in newer markets.
  • Technological advancements: We will continue to need to make advancements to our service delivery in order to make the loan process easier for our members and operations staff.
  • Impact data capabilities: To-date, challenges in data quality have revolved around processing timeliness and data accuracy, making it a major strategic priority of the organization over the next two years to integrate outcome data with our MIS, and further enhance impact data capabilites.
  • Financial systems: A key area of need is our treasury management system. As GAI’s treasury management function has grown and become more complex, GAI has identified Kyriba Enterprise, a leading treasury technology provider, as the best solution for our requirements.

CEO Statement

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Board Chair Statement

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Geographic Area Served

NATIONAL
GREATER BOSTON REGION, MA

We are a national organization serving 11 U.S. Cities: New York, NY; Union City, NJ; Omaha, NE; Charlotte, NC; Los Angeles, CA; Oakland, CA; San Jose, CA; Indianapolis, IN; San Juan, PR; Austin, TX; and Boston, MA.
 
Within the Greater Boston Area, we serve primarily: Mattapan, Four Corners/Geneva Avenue, South Boston, Blue Hill Avenue, Upham’s Corner, South End, Chelsea, Roxbury, Fairmount, Readville, Dudley Square, Jamaica Plain, Everett, Revere, and Lynn. 
 
 

Organization Categories

  1. Community Improvement, Capacity Building - Urban & Community Economic Development
  2. Community Improvement, Capacity Building - Community & Neighbourhood Development
  3. Human Services - Financial Counseling

Independent research has been conducted on this organization's theory of change or on the effectiveness of this organization's program(s)

Under Development

Programs

1. Microloans

Grameen America provides affordable microloans to help our members start or expand a variety of small businesses. We require neither a credit score nor collateral from our members to receive a loan. Terms are 6- or 12-months; our maximum first-time loan is $1,500. Interest rates are 15% on a declining balance (ex. $38 interest on a $1,000 loan).
 
Grameen America does not require any collateral or credit scores to qualify for the program. Our requirements are simple: a woman must form a group with four other women who are committed to starting or building a microbusiness and each woman can must commit to attending one center meeting per week at a regular location and time.
 
As of June 2016, Grameen America has served over 1,600 women in the Greater Boston Area. Our average loan size is $2,000 with the majority of our members starting or growing businesses in Clothing and Fashion Accessories or Beauty and Cosmetics. Grameen America has disbursed 3,192 loans amounting to over $5.7M with a 99.9% repayment rate. 
Budget  $964,000.00
Category  Community Development, General/Other Small & Minority Business Development Programs
Population Served Females Poor,Economically Disadvantaged,Indigent Immigrant, Newcomers, Refugees
Program Short-Term Success 
  • Member income boost: average of $1,500 income boost per member per loan cycle.
  • Number of members who use loan to start business for the first time: On average, 70% of first time loan recipients are starting a business for the first time. 
  • Number of paid employees hired: On average, 5% of members report hiring a paid employee. 
  • Credit scores: Credit scores increase to an average of 670 after one loan cycle for someone who had limited or no credit history.
  • Member retention/growth in size of loan: On average, 81% of our members take out an additional loan. Our members qualify for larger loans the longer they have been with the program, and most continue to utilize the program to scale their businesses.
Program Long-Term Success  Grameen America is dedicated to helping women who live in poverty build small businesses to create better lives for their families. We are providing job creation, poverty alleviation and financial inclusion programs to low-income entrepreneurs. Our long-term vision is to continue to scale our microlending program to significantly impact low-income women across the country break out of the cycle of poverty and become empowered entrepreneurs. 
Program Success Monitored By 

In order to measure the success of our key microlending program, we track outputs against our Key Performance Indicators that reflect organizational growth and success:

  • Number of microloans disbursed
  • Number of women served
  • Number of hours of financial education provided each month
  • Amount of microloans disbursed
  • Repayment rate
  • Percent sustainability
  • Write-offs
Additionally, we track programmatic outcomes to measure the impact of our program. We survey our members at the beginning and end of each loan cycle in order to observe how our program is impacting their lives. We measure:
  • Member income boost
  • Number of members who use loan to start business for the first time
  • Number of paid employees hired
  • Credit scores
  • Growth in size of loan
Examples of Program Success 

When Susana came to Queens, New York, from Mexico City, she rented a chair in a salon for work. After a few years, she decided to open her own salon. Susana’s business is not the only part of her life that has improved. She gained the confidence and financial independence to leave a violent relationship and remarry a supportive husband. Susana heard about Grameen America through a friend. She liked the affordable interest rates and manageable weekly repayments and used her first loan to enhance her new salon location in Queens: She replaced the floors and installed an awning to attract new clients. With her additional subsequent loans, she added a manicure and pedicure station, hired four employees, and launched a website.With this significant business growth and stable lifestyle, Susana was able to take out a larger loans from Grameen America. Susana’s membership with Grameen America has enabled her to significantly scale her business and build assets. 


Financial Education

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Financial Inclusion

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Peer Network

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Examples of Program Success  --

Savings & Credit Building

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Budget  --
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Program Short-Term Success  --
Program Long-Term Success  --
Program Success Monitored By  --
Examples of Program Success  --

CEO/Executive Director/Board Comments

Over the course of the program, we provide the following services to every member:

Microloans: Grameen America provides affordable microloans to help our members start or expand a variety of small businesses. We require neither a credit score nor collateral from our members to receive a loan. Terms are 6- or 12-months; our maximum first-time loan is $1,500. 

Savings: We assist members in opening free savings accounts to foster the habit of saving and building assets. For most of our members, this is the first their first link to the traditional banking system. 

Credit Building: Grameen America helps members build their credit scores by reporting their microloan repayments to the credit agency Experian. Improved credit history reduces barriers to economic mobility by lowering premiums for outside credit, rent, and utilities, among other expenses. Our members have an average credit score of 670 after their first loan cycle.

Financial Education: Every new member receives five days of financial training on interest rates, savings and credit building before receiving a loan. This is vital to understanding the financial products and benefits offered by Grameen America. Ongoing peer conversation/education is facilitated through weekly Center Meetings. 

Peer Networks: Creating peer networks within low-income communities is an integral part of our group lending model. Women and families who live in poverty share many challenges, including access to affordable healthcare, child care and housing assistance. Like all entrepreneurs, low-income entrepreneurs need a trusted group of advisors: at weekly Center Meetings, members ask for advice, engage in collective problem solving, exchange best practices and often discuss challenges beyond their businesses.

Leadership: Grameen America’s model has a leadership development component with a process of electing and empowering both Group and Center leaders, supporting financial discipline and facilitating voluntary mutual support efforts. Each group of 5 women elects a Group Leader and each Center elects a Treasurer, Secretary and Center Chief. These women become important community leaders that who help support financial discipline and facilitate voluntary mutual support efforts. 

Management


CEO/Executive Director Ms. Andrea Jung
CEO Term Start Apr 2014
CEO Email [email protected]
CEO Experience Andrea Jung is the President and CEO of Grameen America. Ms. Jung joins Grameen America in April 2014 with the goal of scaling the organization to solve economic issues for women and their families across the country. She is the former Chairman and Chief Executive Officer of Avon Products, Inc., where she served as CEO from 1999 through April 2012, and as Chairman from 2011 through December 2012. Throughout her professional career, Ms. Jung ranked consistently among the top leaders on lists including Fortune magazine's "Most Powerful Women in Business," Forbes magazine's "Most Powerful Women in the World," and Financial Times' "Top Women in World Business." Ms. Jung is a graduate of Princeton University. She is a member of the Board of Directors of the General Electric Company, Apple, Inc., and Daimler AG. She also serves on the Committee for Economic Development, an independent, nonprofit, nonpartisan American think tank.
Co-CEO --
Co-CEO Term Start --
Co-CEO Email --
Co-CEO Experience --

Former CEOs and Terms

Name Start End
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Senior Staff

Name Title Experience/Biography
Marcus Berkowitz Senior Director, Technology and Innovation Mr. Berkowitz joined Grameen America after serving as a Kiva Fellow in Chimbo, Ecuador where he focused on streamlining and improving the flow of client data between Kiva and its intermediary. His background is in Latin American development and focuses on cross-cultural collaboration. Mr. Berkowitz holds a B.A. from Pitzer College and speaks Spanish and Portuguese.
Daniel Delehanty Chief Program and Strategy Officer Mr. Delehanty joined Grameen America from Capital One, where he worked for nine years and most recently served as Senior Director of Community Development Banking. Prior to his career at Capital One, Mr. Delehanty focused on economic development in the nonprofit and public sectors at the New York State Banking Department, the Staten Island Economic Development Corporation, and Trickle Up. He holds a Bachelor’s degree from the State University of New York at Stony Brook, and a Master’s Degree from Columbia University's School of International and Public Affairs.
David Gough Chief Financial Officer Mr. Gough joined Grameen America from Pro Mujer, an international microfinance and women's development organization with operations in 5 Latin American countries, where he served as CFO. He is a finance and investment professional with a 15 year record in finance and investment banking with Credit Suisse in NYC and London. David’s initial experience was in accounting and corporate tax planning for Credit Suisse in London and NYC. He switched industries a decade ago to work in microfinance, eager to find ways to solve social issues through market based solutions. Mr. Gough speaks Spanish fluently and holds an MBA from NYU’s Stern School of Business and an LL.B from the University of London King’s College School of Law.
Mary Majewski Senior Legal Counsel Ms. Majewski joins Grameen America with 25 years of legal experience specializing in transactional matters. She has negotiated and closed loan transactions ranging from small loans to $95M. She previously served as the compliance officer for a Fortune 400 consumer loan company, handling all compliance matters with banking departments throughout the United States. She holds a B.F.A. from New York University and a J.D. from Brooklyn Law School.
Shah Newaz Chief Advisor Mr. Newaz is responsible for advising the President and CEO on key Operations issues, best practices and Grameen Microfinance methodology. Selected by Professor Muhammad Yunus to replicate the Grameen Program in the United States, Mr. Newaz launched Grameen America’s first branch in 2008. He scaled and ran Grameen America's Operations from 2008 through 2014. During his three decade tenure at Grameen Bank, Mr. Newaz worked with each department of the Senior Management Team and managed over 200,000 borrowers. Prior to joining Grameen America, Mr. Newaz successfully replicated the Grameen program in the Dominican Republic. Mr. Newaz holds a M.S. from Chittagong University in Bangladesh.

Awards

Award Awarding Organization Year
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Affiliations

Affiliation Year
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Member of state association of nonprofits? No
Name of state association --

External Assessments and Accreditations

External Assessment or Accreditation Year
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Collaborations

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CEO/Executive Director/Board Comments

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Foundation Comments

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Staff Information

Number of Full Time Staff 180
Number of Part Time Staff 0
Number of Volunteers 5
Number of Contract Staff 3
Staff Retention Rate % --

Staff Demographics

Ethnicity African American/Black: 0
Asian American/Pacific Islander: 0
Caucasian: 0
Hispanic/Latino: 0
Native American/American Indian: 0
Other: 184
Other (if specified): 0
Gender Female: 0
Male: 0
Not Specified 184

Plans & Policies

Organization has Fundraising Plan? Under Development
Organization has Strategic Plan? Yes
Years Strategic Plan Considers 3
Management Succession Plan Under Development
Business Continuity of Operations Plan No
Organization Policies And Procedures Under Development
Nondiscrimination Policy Yes
Whistle Blower Policy No
Document Destruction Policy --
Directors and Officers Insurance Policy --
State Charitable Solicitations Permit --
State Registration --

Risk Management Provisions

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Reporting and Evaluations

Management Reports to Board? Yes
CEO Formal Evaluation and Frequency Yes Annually
Senior Management Formal Evaluation and Frequency Yes Semi-Annually
Non Management Formal Evaluation and Frequency Yes Semi-Annually

Governance


Board Chair Professor Muhammad Yunus
Board Chair Company Affiliation Grameen Bank
Board Chair Term Jan 2008 -
Board Co-Chair --
Board Co-Chair Company Affiliation --
Board Co-Chair Term -

Board Members

Name Company Affiliations Status
Raymond Dalio Bridgewater Associates, L.P. --
Michael Granoff Pomona Capital, L.P. --
Antonia Hernandez California Community Foundation --
Vidar Jorgensen Primacare, World Health Care Congress Voting
Andrea Jung Grameen America --
Hope Knight Upper Manhattan Empowerment Zone --
H.I. Latifee Grameen Trust Voting
Mahmoud Mamdani Morgan Stanley --
John Megrue Apax Partner, L.P. --
Karen Pritzker Seedling Foundation --
Muhammad Yunus Grameen America Voting

Constituent Board Members

Name Company Affiliations Status
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Youth Board Members

Name Company Affiliations Status
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Advisory Board Members

Name Company Affiliations Status
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Board Demographics

Ethnicity African American/Black: 1
Asian American/Pacific Islander: 2
Caucasian: 5
Hispanic/Latino: 2
Native American/American Indian: 0
Other: --
Other (if specified): --
Gender Female: 5
Male: 7
Not Specified 0

Board Information

Board Term Lengths --
Board Term Limits --
Board Meeting Attendance % 90%
Written Board Selection Criteria No
Written Conflict Of Interest Policy No
Percentage of Monetary Contributions 90%
Percentage of In-Kind Contributions --
Constituency Includes Client Representation No

Standing Committees

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CEO/Executive Director/Board Comments

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Foundation Comments

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Financials


Revenue vs. Expense ($000s)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

Expense Breakdown 2012 (%)

Fiscal Year Jan 01, 2016 to Dec 31, 2016
Projected Income $7,818,000.00
Projected Expense $15,806,000.00
Form 990s

2014 Form 990

2013 Form 990

2012 Form 990

Audit Documents

2015 Audited Financials

2014 Audited Financials

2013 Audited Financials

2012 Audited Financials

IRS Letter of Exemption

IRS Letter of Determination

Prior Three Years Total Revenue and Expense Totals

Fiscal Year 2014 2013 2012
Total Revenue $17,214,744 $14,652,824 $5,957,943
Total Expenses $10,900,759 $7,778,565 $5,108,646

Prior Three Years Revenue Sources

Fiscal Year 2014 2013 2012
Foundation and
Corporation Contributions
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Government Contributions $461,012 $467,749 $941,340
    Federal -- -- --
    State -- -- --
    Local -- -- --
    Unspecified $461,012 $467,749 $941,340
Individual Contributions $12,850,869 $11,972,221 $3,677,945
Indirect Public Support -- -- --
Earned Revenue $3,868,660 $2,166,298 $1,310,740
Investment Income, Net of Losses $2,596 $22,556 $27,918
Membership Dues -- -- --
Special Events -- -- --
Revenue In-Kind -- -- --
Other $31,607 $24,000 --

Prior Three Years Expense Allocations

Fiscal Year 2014 2013 2012
Program Expense $9,152,386 $6,468,026 $4,158,689
Administration Expense $1,131,619 $937,709 $599,884
Fundraising Expense $616,754 $372,831 $350,073
Payments to Affiliates -- -- --
Total Revenue/Total Expenses 1.58 1.88 1.17
Program Expense/Total Expenses 84% 83% 81%
Fundraising Expense/Contributed Revenue 5% 3% 8%

Prior Three Years Assets and Liabilities

Fiscal Year 2014 2013 2012
Total Assets $45,538,889 $40,470,068 $27,163,012
Current Assets $12,736,395 $20,530,232 $16,044,745
Long-Term Liabilities $17,072,978 $12,715,167 $7,185,489
Current Liabilities $605,062 $541,919 $324,435
Total Net Assets $27,860,849 $27,212,982 $19,653,088

Prior Three Years Top Three Funding Sources

Fiscal Year 2014 2013 2012
1st (Source and Amount) -- --
-- --
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2nd (Source and Amount) -- --
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3rd (Source and Amount) -- --
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Financial Planning

Endowment Value --
Spending Policy N/A
Percentage(If selected) --
Credit Line Yes
Reserve Fund Yes
How many months does reserve cover? 3.00

Capital Campaign

Are you currently in a Capital Campaign? No
Capital Campaign Purpose --
Campaign Goal --
Capital Campaign Dates -
Capital Campaign Raised-to-Date Amount --
Capital Campaign Anticipated in Next 5 Years? --

Short Term Solvency

Fiscal Year 2014 2013 2012
Current Ratio: Current Assets/Current Liabilities 21.05 37.88 49.45

Long Term Solvency

Fiscal Year 2014 2013 2012
Long-term Liabilities/Total Assets 37% 31% 26%

CEO/Executive Director/Board Comments

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Foundation Comments

Financial summary data in charts and graphs are per the organization's IRS Form 990s. Contributions from foundations and corporations are listed under individuals when the breakout was not available.

Documents


Other Documents

No Other Documents currently available.

Impact

The Impact tab is a section on the Giving Common added in October 2013; as such the majority of nonprofits have not yet had the chance to complete this voluntary section. The purpose of the Impact section is to ask five deceptively simple questions that require reflection and promote communication about what really matters – results. The goal is to encourage strategic thinking about how a nonprofit will achieve its goals. The following Impact questions are being completed by nonprofits slowly, thoughtfully and at the right time for their respective organizations to ensure the most accurate information possible.


1. What is your organization aiming to accomplish?

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2. What are your strategies for making this happen?

 

3. What are your organization’s capabilities for doing this?

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4. How will your organization know if you are making progress?

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5. What have and haven’t you accomplished so far?

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