We Are the World Foundation

Nonprofit profile at a glance

EIN
271865560
IRS 990 coverage
2011–2017
Forms available
Form 990 2017
Location
Rancho Santa Fe, CA, USA
Phone
8584001308
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Public Foundations

Official website

Reported finances

Revenue
$49,106
Expenses
$81,156
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2017. Amounts in USD.

Leadership & pay

7 people listed

Executive titles in this filing

  • BRANDON PHILLIPS (DIRECTOR/PRESIDENT)

People named in this filing

  • BRANDON PHILLIPS (DIRECTOR/PRESIDENT)
  • QUINCY JONES (DIRECTOR)
  • PETER TORTORICI (DIRECTOR/TREASURER)

Selected names, not a complete roster or a statement of current roles. Open leadership details for the complete filed list.

Source: IRS Form 990. Selected filing: tax year 2017. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The foundation's mission is to use the distribution of the audio and visual recordings of the performance of "we are the world 25 for haiti" as an educational tool to raise consciousness about the ongoing needs in haiti and other parts of the developing world affected by natural disasters; to build a worldwide movement that furthers the spirit of philanthropic activism; and to raise funds for distribution to other charitable organizations with efficient relief and development programs in haiti.

What it reported doing in 2017

The foundation has made a substantial grant to artists for peace and justice ("apj"), a domestic tax-exempt organization described in section 501(c)(3) of the internal revenue code, for the purchase of land and development and operation of a college-level technical school to serve impoverished haitian youth. At its campus in jakmel, the we are the world school of music and audio engineering has already begun operating a two-year curriculum training students to be qualified for employment in the fields of audio engineering, music engineering and/or sound production. The school will also contain divisions of employment and professional support, providing graduates with access to tools and facilities needed for their careers. The inaugural class began its studies in october 2013. The school graduated its first class of 29 students in june 2015, and new classes of students have entered the program in october each year since then.

Operating model

Revenue model
Donor-supported. 60% of the money available for current operations came from contributions and gifts.
Distribution model
Grant intermediary. The nonprofit sent 100% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 93
  • Accountability: 76
  • Sustainability: 18
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 72.3%; rating input score 72
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 80th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
  • Governance controls: 3 of 7 controls in place; rating input score 43
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -65.3%; rating input score 22; 22nd percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 0%; rating input score 61; 61st percentile among comparable filings

Growth

  • Program expense growth: -41.2% per year; rating input score 0; 13th percentile among comparable filings
  • Revenue growth: -41.2% per year; rating input score 0; 11th percentile among comparable filings
  • Asset growth: -49.4% per year; rating input score 0; 3rd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 72.3% of spending went to programs
  • Governance: 6 of 6 board members independent · 3 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $59K in reported program spending
  • Leadership: top reported pay $0 · 7 people listed
  • Consistency: 20 of 20 current checks pass
  • Schedules: 5 filed schedules · includes grants
  • Filing history: 6 filing years from 2011 to 2017
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 3 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • Moderate — Accountability: Governance controls: 3 of 6 not reported.
  • High — Sustainability: Operating margin scored 22/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Grant Readiness: California registration: this organization is recorded as not currently operating in California.