CharityWatch reviewed the IRS Form 990 of the United States entity of Partners In Health (PIH), as well as the audited consolidated financial statements of PIH for the fiscal year-ended June 30, 2018, which include the following organizations (Note 1, Organization):
Partners In Health (United States)
Socios En Salud (Peru)
Partners In Health Russia (ceased operations during 2018)
Partners In Health Kazakhstan
Partners In Health Liberia
Partners In Health Sierra Leone
Inshuti Mu Buzima (Rwanda)
Bo Mphato Litsebeletsong tsa Bophelo (Lesotho)
Abwenzi Pa Za Umoyo (Malawi)
Companeros En Salud (Mexico)
Partners In Health Ethiopia
The University of Global Health Equity (Rwanda)
Partners In Health Canada
CharityWatch's rating of PIH is based on the fiscal 2018 audited consolidated financial statements of the organization, which better reflect how efficiently the organization operates on the whole than does the IRS Form 990 of the U.S. entity, taken alone.
The rating does not include PIH's Partner Organizations whose financial activities are not included in PIH's consolidated audit.
According to the Partners In Health (PIH) consolidated audit of June 30, 2018 (Note 8, Gifts in Kind and Contributed Services):
"PIH receives donations of medicines and other goods, as well as contributed legal services without charge. PIH also has relationships with various hospitals that provide healthcare and pathology services for PIH patients for minimal fees or free of charge."
For fiscal 2018, PIH reports receiving gifts in kind and contributed services on which it placed a total value of $8,042,935, including $6,865,423 in "Donated medicines and goods."
[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]
According to the Partners In Health (PIH) tax filing for the fiscal year-ended June 30, 2018, PIH reports for Business Transactions Involving Interested Persons (IRS Form 990, Schedule L, Parts IV & V):
(1) A transaction in the amount of $51,250 involving Didi Bertrand, Dr. Paul Farmer's spouse, described as: "Compensation for Services." (Dr. Paul Farmer is reported as a Director of PIH, according to Form 990, Part VII.)
(2) A transaction in the amount of $723,432 involving Boathouse Group, described as: "Boathouse is majority owned by a relative of a PIH Board Member. PIH paid Boathouse for their advertising and marketing services."
According to the Partners In Health (PIH) IRS Form 990 tax filing for the fiscal year-ended June 30, 2018, in response to Part VI, Section B, Line 11a, PIH answers "No" to the question: "Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?"
According to Schedule O of the Form 990 filing, PIH reports the following with respect to the above "No" response:
"The Form 990 is prepared by the finance staff and is reviewed carefully by the PIH Chief Financial Officer and General Counsel. The Form 990 is then reviewed by CBIZ MHM, LLC, PIH's tax adviser. A complete draft of the Form 990 is then reviewed by the PIH Chief Executive Officer. This draft is then provided to the Audit Committee for their review with the exception of Schedule B [Schedule of Contributors]. Finally, the Form 990 is provided to the full Board of Directors prior to filing, with the exception of Schedule B [Schedule of Contributors]. Any and all questions and comments are addressed by the PIH Chief Financial Officer, who engages CBIZ & MHM in the discussion whenever relevant or necessary."
According to the Partners In Health (PIH) tax filing for the fiscal year-ended June 30, 2018, PIH reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):
Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):
"From time to time, at the recommendation of senior management and HR, the CEO will approve performance-based bonuses to key employees."
PIH reports "Bonus & incentive compensation" in the amount of $10,500 paid to John Urschel, Director, Partnership Development, in calendar year 2017; his reported total compensation is $165,884 (IRS Form 990, Schedule J, Part II).