Mercy Corps
Summary
Mercy Corps ("MC") is the headquarters of an international family of humanitarian organizations. MC's goal is to build a global movement of organizations committed to alleviating poverty and finding peaceful solutions to social problems. The organization's purpose is to assist the world's poor through emergency relief, self-help development projects and development education. Additionally, the organization seeks to educate and motivate the public regarding the plight of the poor and to work for peace and justice. MC believes in innovation. They see themselves as a world leader in helping communities recover from emergencies, build stronger societies and find long-term solutions to poverty. MC understands that global poverty is a complex problem rooted in history, geography, economics and politics. MC was founded in 1979 by Dan O'Neill.
This organization is a nonprofit. Contributions to it are fully tax deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).
Contact Information: [ Back to top ]
| Mailing Address: | 3015 SW 1st Ave.
Portland, OR
97201-4708 |
| Website: | www.mercycorps.org |
| Phone: | (503) 796-6800, (800) 292-3355 |
| Email: | You need to enable javascript to see the email |
Organization Details [ Back to top ]
EIN: 911148123
| CEO/President: |
Ms. Nancy Lindborg |
Tax Deductible: |
Yes |
| Chairman: |
Ms. Linda A. Mason |
Fiscal Year End: |
June 30 |
| Board Size: |
21 |
Financial info from: |
990 |
| Founder: |
Mr. Dan O'Neill |
Member of ECFA: |
No |
| Year Founded: |
1979 |
Member of ECFA since: |
|
Mercy Corps ("MC") is the headquarters of an international family of humanitarian organizations. MC's goal is to build a global movement of organizations committed to alleviating poverty and finding peaceful solutions to social problems. The organization's purpose is to assist the world's poor through emergency relief, self-help development projects and development education. Additionally, the organization seeks to educate and motivate the public regarding the poor and to work for peace and justice. MC believes in innovation. They see themselves as a world leader in helping communities recover from emergencies, build stronger societies and find long-term solutions to poverty. MC understands that global poverty is a complex problem rooted in history, geography, economics and politics. MC was founded in 1979 by Dan O'Neill. It's headquarters are found in the United States and in Scotland.
This organization is a nonprofit. Contributions to it are fully tax deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).
Mercy Corps uses the following to express its vision:
Mercy Corps exists to help build a world in which God's transforming love overcomes hate, violence, poverty and despair; a world where children experience a caring family, a nurturing community, a sacred environment, love, and the opportunity to fulfill their God-given potential.
Program Accomplishments [ Back to top ]
Mercy Corps expresses the following accomplishments:
Since 1979, Mercy Corps has provided over $710 million in assistance to people in 76 nations. The agency's programs currently reach over 5 million people in more than 30 countries, including the United States. More than 92% of the agency's resources are allocated to programs that directly assist those in need.
With headquarters in the United States and Scotland, Mercy Corps is an international family of humanitarian agencies that reaches more five million people each year.
American Institute of Philanthropy
The American Institute of Philanthropy (AIP), a leading charity watchdog agency, awarded Mercy Corps an "A+" for financial efficiency in their April 2003 rating guide. Mercy Corps has received an "A" in every AIP guide since it was first rated in Winter 2000.
Worth Magazine
For the second year in a row, Worth Magazine named Mercy Corps one of America's best charities.
Arab American Institute Foundation
The Arab American Institute Foundation awarded Mercy Corps the 2003 Kahlil Gibran ' Spirit of Humanity' Award in recognition of its outstanding global efforts to combat poverty and human suffering.
Statement of Faith [ Back to top ]
Mercy Corps uses the following to express its Statement of Faith:
Mercy Corps believes in innovation, and has become a world leader in helping communities recover from emergencies, build stronger societies and find long-term solutions to poverty.
MC believes humanitarian aid should be an investment in empowering people rather than a one-time consumption of resources. Mercy Corps targets countries in transition to democracy or plagued by civil, religious and ethnic conflict.
MC believes humanitarian assistance must not only meet basic needs, but also help lay the foundation for building societies that are more peaceful, open, democratic and economically strong.
MC believes that no single organization can fully complete the task, so partnerships have been forged with other international and local organizations to build a broad coalition for humanitarian action.
Mercy Corps was founded in 1979 as Save the Refugees Fund, an autonomous task force called together by Dan O'Neill in response to the emergency relief needs of the Cambodian boat people.
With the support of First Lady Rosalynn Carter, singer Pat Boone, Cardinal Bernard Law and other prominent Americans, the Fund was successful in meeting relief needs in Cambodia, and later expanded its efforts to help vulnerable people in other nations. In 1981, the Fund was re-named Mercy Corps International to reflect its broadened humanitarian role.
In 1982, MC launched their first sustainable development program in Honduras. Over the years, MC programs have become models for quick-response and high-impact relief and development around the globe. In recent years, MC has become a leader in integrating civil society initiatives and human rights advocacy into humanitarian assistance. MC also formed strategic partnerships with Proyecto Aldea Global (1989), MerciPhil (1993), Scottish European Aid (1996) and Pax World Service (1997) to build a global humanitarian network.
In 2001 they changed their name by dropping the "International" and going with just "Mercy Corps."
Mercy Corps uses the following to express its Ministry needs:
Donate Now
Make your gift online to needy people around the world via our safe and secure web server. Giving online is easy and secure. People around the world need your help.
Give for Kids
Change takes commitment. Put your beliefs into action and become a monthly donor through the Give for Kids program. A dollar a day is all it takes to make a difference in a child's life!
Mercy Kits
Mercy Kits are a unique way to honor your friends, loved ones or business associates with a gift that makes a positive difference for vulnerable families and children worldwide. Choose from three kits:
1. Health Kit-Purchase of a Child Health Kit provides critical health care assistance to children and mothers in rural southeastern Azerbaijan. (Purchase for $30)
2. Food Kit-Purchase of a Food Kit provides lifesaving food assistance for 17 children in Eritrea for a month. (Purchase for $35)
3. Animal Kit-Purchase of an Animal Kit enables a family to purchase a sheep and increase household income. (Purchase for $70)
Research Analysis
Transparency Grade [ Back to top ]
| Transparency Grade of : A |
| Criteria category | Grade | Other Comments |
| Timeliness: | 100 | |
| Financial Information: | 100 | |
| Foundational Clarity: | | |
| Level of Cooperation: | | |
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MinistryWatch.com 5 Star Financial Efficiency Ratings [ Back to top ]
| Ranking Category | Rating | Overall Rank | Relief and Development Sector |
|---|
| Overall Efficiency Rating |  | 100 of 353 | 32 of 54 |
| Fund Acquisition Decision |  | 125 of 353 | 30 of 54 |
| Resource Allocation Decision | | 103 of 353 | 34 of 54 |
| Asset Utilization Decision | | 160 of 353 | 34 of 54 |
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Mercy Corps is a humanitarian and relief organization, operating around the world from multiple offices and affiliate organizations, in a professional secular approved manner. The organization operates in a particularly resourceful manner as evidenced by its MinistryWatch.com 4 Star Financial Efficiency rating and with a great deal of openness and transparency.
Mercy Corps organizational structure is multifaceted and their humanitarian scope is large. Mercy Corps works in more than 30 countries, with headquarters offices in Portland (Oregon), Seattle (Washington), Washington (DC) and Edinburgh (Scotland). Mercy Corps responds with practical compassion in ways that help heal torn social fabrics, foster democratic values and structures, and uphold human rights. They link emergency relief and self-help development efforts with strong civil society strategies for long-term solutions. Humanitarian relief aid has been in the form of powdered milk, food, non-food emergency commodities, blankets, clothing, book supplies, shelter and infrastructure, health, educational services, microlending and business development programs, agribusiness, and agricultural supplies (like seeds). Mercy Corps has been committed to providing humanitarian relief that is appropriate, timely and respectful of people’s dignity, empowering recipients to move beyond crises and regain control of their futures.
Mercy Corps values are not directly linked to Bible verses or to overt Christianity. Mercy Corps has had various Christian support and supporters; however, this support and association does not equate into an evangelistic or Christian discipleship type organization. Mercy Corps does not embrace a statement of faith or creed, but they do value such things as:
- Service to others by sharing compassion and mercy, and promoting peace and justice.
- Human life in the conviction that all people possess intrinsic worth and dignity.
- Alleviation of suffering and poverty through programs that promote community-based, self-help solutions.
- Promotion of peace and social justice through programs that strengthen civil society, human rights, the rule of law, and conflict management.
- Innovative, entrepreneurial solutions that achieve scale with measurable results.
- Collaborative partnerships with individuals and organizations in fulfilling their global mission.
- Stewardship, pledging to accountably and efficiently manage the earth's and their resources.
- Inclusiveness and tolerance, respecting diversity of expression while maintaining unity of purpose.
Using the most recently filed financial reports from Mercy Corps (6/30/2001), Mercy Corps received an overall financial efficiency rating of 4 stars, out of a possible 5 stars, from MinistryWatch.com and ranked 21 out of 46 in the Relief and Development sector. This shows that Mercy Corps is able to direct a larger portion of its financial resources directly toward its programs relative to other ministries. In 2001, Mercy Corps spent 60% of it resources on project expenditures, 31% on material aid, 6% on general administration and 3% on fundraising.
Foreign activities are considered to be an extension of the U.S. operations, and are for the most part already included; however, considering all global income sources, an additional 13% un-audited amount of revenue came in from affiliate revenue with about the same amount going out as expenditures. It appears the additional global income and expenditures would have a negligible factor on any change in the financial efficiency ratings.
The organization spends significantly less of its total income on fundraising, general and administrative efforts than the average organization. The primary reason for lower expense ratios is due to its receipt of large government grants and noncash items. In 2001, Mercy Corps raised 73% of its revenue as government grants. Part of the government grants was in the form of government commodities, with 31% of its revenue as gifts-in-kind. On average, with experienced people at the helm, there is less effort raising large noncash contributions and government grants, compared to the same value in pure dollars. The large increase in noncash items and government grants inflates revenue with the fair market value of noncash gifts. This inflation of its revenue, decreases, or minimizes its fundraising, general and administrative ratios. About 74% of the noncash gifts are from the government.
The organization’s operations are carried out in a financially open and transparent manner as indicated in Mercy Corps receiving the highest possible Transparency Grade, “A”, from MinistryWatch.com. Another area that demonstrates openness has to do with their web site. Mercy Corps contains an extensive amount of information on their website, including good explanations about where they are located (in more than 37 locations) and the programs and activities associated with the various settings.
Mercy Corps provided humanitarian relief aid to more than 30 countries, with government grants driving the resource allocation. Material aid shipments comprised a large portion of its program services in the form of food, construction supplies and emergency relief. Mercy Corps operates a very large encompassing organization that has many offices and affiliate type organizations. MinistryWatch.com is able to conclude that Mercy Corps directs its financial resources directly toward its programs in an efficient manner and it exhibits a great deal of financial openness, but not in an overt Christian fashion.
Ministry Statement or Response [ Back to top ]
Financial Information:
| Balance Sheet |
| Assets | 2008 | 2007 | 2006 | 2005 | 2004 |
| Cash | $49,151,000 | $33,340,000 | $35,454,000 | $46,840,000 | $20,197,000 |
| Receivables, Inventories & Prepaids | $29,276,000 | $42,488,000 | $36,833,000 | $31,455,000 | $20,120,000 |
| Short-Term Investments | $2,693,000 | $17,629,000 | $15,292,000 | $0 | $0 |
| Total Current Assets | $81,121,000 | $93,458,000 | $87,580,000 | $78,295,000 | $40,317,000 |
| Long-Term Investments | $30,852,000 | $614,000 | $599,000 | $200,000 | $407,000 |
| Fixed Assets | $5,867,000 | $4,705,000 | $3,425,000 | $2,784,000 | $359,000 |
| Other Long-Term Assets | $1,448,000 | $8,127,000 | $5,999,000 | $5,723,000 | $6,791,000 |
| Total Long-Term Assets | $38,168,000 | $13,446,000 | $10,024,000 | $8,708,000 | $7,559,000 |
| TOTAL ASSETS | $119,289,000 | $106,904,000 | $97,604,000 | $87,004,000 | $47,876,000 |
| Liabilities | 2008 | 2007 | 2006 | 2005 | 2004 |
| Payables & Accrued Expenses | $11,702,000 | $11,019,000 | $7,364,000 | $6,767,000 | $5,245,000 |
| Other Current Liabilities | $21,668,000 | $25,370,000 | $22,704,000 | $30,550,000 | $23,306,000 |
| Total Current Liabilities | $33,370,000 | $36,389,000 | $30,069,000 | $37,317,000 | $28,551,000 |
| Debt | $1,562,000 | $587,000 | $611,000 | $634,000 | $0 |
| Other Long-Term Liabilities | $24,445,000 | $25,059,000 | $22,573,000 | $18,775,000 | $11,473,000 |
| Total Long-Term Liabilities | $26,007,000 | $25,647,000 | $23,184,000 | $19,409,000 | $11,473,000 |
| TOTAL LIABILITIES | $59,378,000 | $62,037,000 | $53,253,000 | $56,727,000 | $40,024,000 |
| Assets | 2008 | 2007 | 2006 | 2005 | 2004 |
| Unrestricted | $20,962,000 | $15,826,000 | $15,700,000 | $9,790,000 | $4,928,000 |
| Temporarily Restricted | $38,948,000 | $29,040,000 | $28,650,000 | $20,486,000 | $2,923,000 |
| Permanently Restricted | $0 | $0 | $0 | $0 | $0 |
| NET ASSETS | $59,910,000 | $44,867,000 | $44,350,000 | $30,277,000 | $7,852,000 |
| Revenue and Expenses |
| Revenue | 2008 | 2007 | 2006 | 2005 | 2004 |
| Total Contributions | $212,987,000 | $176,478,000 | $200,872,000 | $181,978,000 | $138,512,000 |
| Program Service Revenue | $2,782,000 | $3,062,000 | $1,937,000 | $2,015,000 | $1,011,000 |
| Membership Dues | $0 | $0 | $0 | $0 | $0 |
| Investment Income | $1,048,000 | $2,209,000 | $1,694,000 | $575,000 | $274,000 |
| Other Revenue | $1,618,000 | $703,000 | $398,000 | $579,000 | $38,000 |
| Total Other Revenue | $5,448,000 | $5,974,000 | $4,031,000 | $3,171,000 | $1,324,000 |
| TOTAL REVENUE | $218,436,000 | $182,452,000 | $204,903,000 | $185,149,000 | $139,836,000 |
| Expenses | 2008 | 2007 | 2006 | 2005 | 2004 |
| Program Services | $175,657,000 | $159,656,000 | $168,139,000 | $146,903,000 | $127,653,000 |
| Management & General | $17,049,000 | $15,583,000 | $13,829,000 | $11,043,000 | $7,305,000 |
| Fundraising | $10,685,000 | $9,888,000 | $8,860,000 | $7,250,000 | $3,718,000 |
| TOTAL EXPENSES | $203,392,000 | $185,128,000 | $190,830,000 | $165,196,000 | $138,678,000 |
| Change in Net Assets | 2008 | 2007 | 2006 | 2005 | 2004 |
| SURPLUS (DEFICIT) | $15,043,000 | ($2,675,000) | $14,073,000 | $19,952,000 | $1,158,000 |
| Other Changes in Net Assets | $0 | $3,192,000 | $0 | $2,472,000 | $0 |
| TOTAL CHANGE IN NET ASSETS | $15,043,000 | $516,000 | $14,073,000 | $22,425,000 | $1,158,000 |
Functional Expenses [ Back to top ]
| Funding Ratios | 2008 | 2007 | 2006 | 2005 | 2004 |
| Grants & Allocations | $74,277,000 | $64,006,000 | $75,266,000 | $72,901,000 | $60,503,000 |
| Specific Assistance to Individuals | $0 | $0 | $0 | $0 | $0 |
| Benefits Paid To or For Members | $0 | $0 | $0 | $0 | $0 |
| Compensation of Officers, Directors | $1,226,000 | $1,041,000 | $751,000 | $627,000 | $556,000 |
| Other Salaries, Wages | $34,924,000 | $30,525,000 | $26,784,000 | $20,508,000 | $16,772,000 |
| Pension Plan Contributions | $1,313,000 | $1,115,000 | $818,000 | $773,000 | $620,000 |
| Other Employee Benefits | $10,942,000 | $9,925,000 | $7,658,000 | $5,774,000 | $4,643,000 |
| Payroll Taxes | $1,863,000 | $1,795,000 | $1,424,000 | $1,153,000 | $1,064,000 |
| Professional Fundraising Fees | $791,000 | $1,035,000 | $972,000 | $339,000 | $174,000 |
| Accounting Fees | $264,000 | $203,000 | $205,000 | $179,000 | $250,000 |
| Legal Fees | $351,000 | $229,000 | $188,000 | $128,000 | $90,000 |
| Supplies | $819,000 | $740,000 | $685,000 | $598,000 | $498,000 |
| Telephone | $1,892,000 | $1,629,000 | $1,484,000 | $1,291,000 | $1,050,000 |
| Postage & Shipping | $1,166,000 | $1,477,000 | $1,267,000 | $1,009,000 | $517,000 |
| Occupancy | $3,866,000 | $3,448,000 | $3,046,000 | $2,465,000 | $2,176,000 |
| Equipment Rental & Maintenance | $2,025,000 | $2,002,000 | $2,215,000 | $1,766,000 | $1,383,000 |
| Printing & Publications | $1,368,000 | $1,573,000 | $1,447,000 | $1,249,000 | $580,000 |
| Travel | $10,314,000 | $8,975,000 | $8,874,000 | $6,822,000 | $4,481,000 |
| Conferences, Conventions & Meetings | $0 | $0 | $0 | $0 | $0 |
| Interest | $401,000 | $198,000 | $84,000 | $70,000 | $0 |
| Depreciation, Depletion etc. | $559,000 | $499,000 | $201,000 | $301,000 | $174,000 |
| Other Expenses | $55,021,000 | $54,704,000 | $57,452,000 | $47,236,000 | $43,139,000 |
| Total Functional Expenses | $203,392,000 | $185,128,000 | $190,830,000 | $165,196,000 | $138,678,000 |