BBB Wise Giving Report for
Aga Khan Foundation USA

BBB Wise Giving Report issued September 2010
BBB Wise Giving Report expires April 2012


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Aga Khan Foundation USA
Address: 1825 K Street, NW
  Washington, DC 20006
Phone: 202-293-2537
Web Address: www.akdn.org and www.partnershipwalk.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1981, District of Columbia
Affiliates: Aga Khan Foundation USA is an affiliate of the Aga Khan Foundation, an agency of the Aga Khan Development Network (AKDN). Other agencies of the AKDN include the Aga Khan Agency for Microfinance, Aga Khan Education Services, Aga Khan Fund for Economic Development, Aga Khan Health Services, Aga Khan Trust for Culture, Aga Khan University, and the University of Central Asia

Stated Purpose: "to promote social development, primarily in low-income countries of Asia and Africa, by funding programs in health, education, rural development and civil society strengthening."

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Evaluation Conclusions

              

Aga Khan Foundation USA (AKF USA) does not meet the following 4 Standards for Charity Accountability.

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

AKF USA does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7: Board Approval of Written Report on Effectiveness - Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

AKF USA does not meet this Standard because:

  • It has not completed an effectiveness assessment in the past two years.

Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

AKF USA does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses did not include:

  • A breakdown of major program expenses.
  • A breakdown of fundraising expenses.

Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

AKF USA does not meet this Standard because:

  • In the Alliance's opinion, the amount reported as fund raising expenses in the organization's 2008 audited financial statements is understated.  Although the organization reports fundraising activities including office expense, fundraising event, and resource development, according to its financial statements, the charity does not allocate a portion of common expense items such as salaries and occupancy to the fund raising category. 
AKF USA meets the remaining 16 Standards for Charity Accountability.
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Programs

              

AKF USA forms intellectual and financial partnerships with organizations sharing its objectives regarding specific development problems. Grants are primarily to grassroots organizations testing innovative approaches in the field. AKF USA has health, education, rural development, civil society and humanitarian assistance projects in Afghanistan, Bangladesh, India, Kenya, the Kyrgyz Republic, Mali, Mozambique, Pakistan, Portugal, Syria, Tajikistan, Tanzania, Uganda, and the United States.

For the year ended December 31, 2008, AKF USA's program expenses were:

  
Program grants 19,058,674
Total Program Expenses: $19,058,674
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Governance

              

Chief Executive : Mirza Jahani, CEO
Compensation*:

Chair of the Board: His Highness Shah Karim, Al-Husseini Aga Khan
Chair's Profession / Business Affiliation: Spiritual Leader of the Shia Ismaili Muslims

Board Size: 4

Paid Staff Size: 30

*2008 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. The CEO assumed office in October 2009 and prior to his appointment, the CEO was Iqbal Noor Ali and he was compensated $236,074 in 2008.
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Fund Raising

              

Method(s) Used:

Direct mail, telemarketing, special events, print advertisements, grant proposals, Internet appeals, planned giving, and cause-related marketing
Fund raising costs were 2% of related contributions. (Related contributions, which totaled $50,569,932, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on AKF's audited financial statements for the year ended December 31, 2008.

Source of Funds  
Contributions 37,070,014
Federal grants 11,442,795
Other grants 2,057,123
Investment income 1,863,315
Total Income $52,433,247


chart



Uses of Funds as a % of Total Expenses

Programs: 72%  Fund Raising: 4%  Administrative: 20%  Other Expenses: 4%

Total income   $52,433,247
  Program expenses $19,058,674
  Fund raising expenses 1,123,796
  Administrative expenses 5,310,539
  Other Expenses 1,056,876
Total expenses   $26,549,885
Income in Excess of Expenses   25,883,362
Beginning net assets   178,792,825
Ending net assets   204,676,187
Total liabilities   5,399,449
Total assets   $210,075,636

Note: In the above financial summary, "other expenses" represents depreciation and amortization expenses.

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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