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Mercy Corps

Rating
Sector:

Relief and Development

Total
Revenue:

$244,942,000

Total
Expenses:

$242,559,000

Net
Assets:

$74,366,000
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Profile Contents

Research Analysis
Financial Information

Ministry Pie Chart

Database Avg This Ministry
Program 79.7% 87.2%
General & Admin 12.6% 8.1%
Fundraising 6.8% 3.6%
Savings .4% .9%


Ministry Pie Chart

Ministry Pie Chart

Age Size Box:

>50
Yr(s)25-50
<25
<$1m$1m-
$5m
>$5m

Summary

Mercy Corps helps people in the world’s toughest places turn the crises of natural disaster, poverty and conflict into opportunities for progress. Driven by local needs, our programs provide communities with the tools and support they need to transform their own lives. Mercy Corps has a worldwide team of 3,700 professionals improving the lives of 16.7 million people in more than 40 countries. Mercy Corps was founded in 1979 by Dan O'Neill.

Mercy Corps’ 30 years of experience shows that turmoil and tragedy often create opportunities for lasting, positive change. We support these opportunities with community-led and market-driven action. To endure, such change requires that communities, government and businesses solve problems in a spirit of accountability and full participation. We help key players cooperate to create secure, productive and just communities.

This organization is a nonprofit. Contributions to it are fully tax deductible to the extent allowed by law.

Contact Information: [ Back to top ]

Mailing Address:45 SW Ankeny Street
Portland, OR
97204-7204
Website: www.mercycorps.org
Phone:(503) 896-5000, (800) 256-1900
Email:You need to enable javascript to see the email

Organization Details [ Back to top ]

EIN: 911148123
CEO/President: Mr. Neal Keny-Guyer Tax Deductible: Yes
Chairman: Ms. Linda A. Mason Fiscal Year End: June 30
Board Size: 18 Financial info from: 990
Founder: Mr. Dan O'Neill Member of ECFA: No
Year Founded: 1979 Member of ECFA since:

Purpose [ Back to top ]

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).

Mission Statement [ Back to top ]

Mercy Corps’ Mission is to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities across the globe.

Program Accomplishments [ Back to top ]

Since 1979, Mercy Corps has provided $1.95 billion in assistance to people in 107 nations. In fiscal 2009 (July 1, 2008 to June 30, 2009), the resources of our global operations totaled $277 million. Our global operating budget for fiscal 2010 (July 1, 2009 to June 30, 2010) is $278 million.
Better Business Bureau

Mercy Corps meets all 20 of the Better Business Bureau’s standards for charity accountability.

American Institute of Philanthropy
The American Institute of Philanthropy, a leading charity watchdog agency, awarded Mercy Corps an “A-” for financial efficiency in its December 2009 rating guide.

Charity Navigator
Mercy Corps received the highest rating in organizational efficiency from Charity Navigator, the premier American charity evaluator, based on how we allocate money among programs, administration and fundraising, and how efficiently we use our fundraising resources. Our overall rating is three stars, which "exceeds or meets industry standards and performs as well as or better than most charities in its Cause."

Fast Company

Mercy Corps was selected as a winner of the 2008 Fast Company/Monitor Group Social Capitalist Award. Fast Company identified Mercy Corps as a “top-performing nonprofit” that “insist[s] on serving up smart, bold solutions to seemingly intractable problems.” Mercy Corps also was named a recipient of the magazine’s 2009 “Social Enterprises of the Year” award for starting a bold banking initiative that could pull millions of people out of poverty in Indonesia.

InterAction

Mercy Corps is a member of InterAction, the largest coalition of America’s most reputable international NGOs. We adhere to InterAction’s financial and ethical standards in our fundraising and program operations.

Bill and Melinda Gates Foundation

Mercy Corps is one of just a handful of partner organizations featured in the Global Development section of the 2008 Bill &amp; Melinda Gates Foundation Annual Report. The report notes that "in emergencies, there is often a gap between immediate relief and longer-term recovery" and says that "...Mercy Corps exemplifies how our response is helping to bridge that gap." Although the Foundation made $18.9 million in grants for the Global Food Crisis, they chose to highlight Mercy Corps' projects.

Statement of Faith [ Back to top ]

Mercy Corps uses the following to express its Statement of  Values:

We believe in the intrinsic value and dignity of human life.

We are awed by human resilience, and believe in the ability of all people to thrive, not just exist.

Our spiritual and humanitarian values compel us to act.

We believe that all people have the right to live in peaceful communities and participate fully in the decisions that affect their lives.

We believe that human imagination and energy can inspire innovations solutions to any problem, no matter how intractable.

We believe that it is our duty to be effective stewards of the financial resources entrusted to us.

History [ Back to top ]

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."

Ministry Needs [ Back to top ]

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.

Monthly Giving Change takes commitment. Put your beliefs into action and become a monthly donor through the Partners in Mercy program. A dollar a day is all it takes to make a difference in a child's life!

Mercy Corps Gifts Mercy Corps Gifts 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 forty unique gifts including:

1. Women’s Small Business - Often, all that stands between the dream of a small business and the reality are a few resources and a little encouragement.  (Purchase for $50)
2. Feed a Child - The first few years have a critical influence on how a child grows up. With plentiful, nutritious food, their bodies grow strong and healthy, and their minds develop quickly for a lifetime of learning. (Purchase for $25)
3. Outfit a Classroom - A well-equipped classroom invites exploration and discovery. Given the right tools, a teacher can engage her students to learn about each other and the world around them. (Purchase for $125)

Research Analysis

Transparency Grade [ Back to top ]

Transparency Grade of : B
Criteria categoryGradeOther Comments
Timeliness:7010/28/2011 7:37:00 PM: Organization made financial information available greater than 7 ½ months.
Financial Information:80
Foundational Clarity:10010/28/2011 7:36:53 PM: Descriptive information was abundant and thorough.
Level of Cooperation:
Click here to compare ministries on transparency and other stats
Click here to learn more about how ministries are graded

MinistryWatch.com 5 Star Financial Efficiency Ratings [ Back to top ]

Ranking CategoryRatingOverall RankRelief and Development Sector
Overall Efficiency RatingStarStarStarStar64 of 347    25 of 52
Fund Acquisition DecisionStarStarStarStar86 of 347      24 of 52
Resource Allocation DecisionStarStarStarStar70 of 347      25 of 52
Asset Utilization DecisionStarStarStar143 of 347      34 of 52
Learn how the ratings are calculated for this ministry
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Supporters Say
  • Received a MinistryWatch.com 4 Star Financial Efficiency Rating.
  • Financially open and transparent; received an “A” Transparency Grade from MinistryWatch.com.
  • Experienced at applying for and receiving significantly large amounts of government grants.
  • Mercy Corps addresses issues and causes that are “Christian” and that some Christian supporters feel very good about supporting.


Critics Say
  • There is no overt “Christian” emphasis. Mercy Corps may have started with founders with a Christian worldview and continues to have Christians in various roles; however, the organization is run as a professional, secular nonprofit.
  • Some consider the receipt of large amounts of gifts-in-kind and government grants as inflating financial efficiency over organizations that rely on individual donor dollars. Mercy Corps fits into this category, and some would see Mercy Corps as not as efficient, despite the outcome of its ratios.
  • The complicated structure makes it difficult to understand its operations. It is not a simple “one-horse” operation, but multifaceted and complex.


Theological Considerations
  • Mercy Corps is founded on faith principles, but its operations are not faith-driven, nor do they directly link a “statement of faith” or creed to their ventures.
  • Mercy Corps was established by Christian leaders who incorporated their faith values into an agency that has now broadened its vision. Among the faith values most influential were Catholic social teaching and Quaker-Mennonite peace philosophies.
  • Mercy Corps provides assistance exclusively based on need, without regard to religion or politics.


Analyst Comments [ Back to top ]

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:

Financial Ratios[ Back to top ]

Funding RatiosDatabase Average20102009200820072006
Return on FR Efforts10%4%4%5%6%4%
Fundraising Cost Ratio7%4%4%5%5%4%
Contributions Reliance83%97%99%98%97%98%
Fundraising Expense Ratio7%4%4%5%5%5%
Other Revenue Reliance17%3%1%2%3%2%
Operating RatiosDatabase Average20102009200820072006
Program Expense Ratio80%88%87%86%86%88%
Spending Ratio100%99%100%93%101%93%
Program Output Ratio80%87%87%80%88%82%
Savings Ratio0%1%0%7%-1%7%
Reserve Accumulation Rate11%3%-1%25%-6%32%
General & Admin Ratio13%8%9%8%8%7%
Investing RatiosDatabase Average20102009200820072006
Total Asset Turnover2.8x1.86x1.64x1.71x1.73x1.96x
Degree of L-T Investment2.85x1.36x1.48x1.47x1.14x1.11x
Current Asset Turnover5.26x2.52x2.42x2.51x1.98x2.18x
Age of Assets9.7yr(s)7.5yr(s)5.1yr(s)5.9yr(s)6.7yr(s)12.3yr(s)
Liquidity RatiosDatabase Average20102009200820072006
Current Ratio2964.81x1.87x2.22x2.43x2.57x2.91x
Current Liabilities Ratio.31x.54x.45x.41x.39x.34x
Liquid Reserve Level4.96x2.22x2.73x2.82x3.7x3.62x
Solvency RatiosDatabase Average20102009200820072006
Liabilities Ratio.23x.43x.51x.5x.58x.55x
Debt Ratio.06x.03x.03x.01x.01x.01x
Reserve Coverage Ratio80%31%30%29%24%23%

Financials[ Back to top ]

Balance Sheet
Assets20102009200820072006
Cash$48,658,000$38,290,000$49,151,000$33,340,000$35,454,000
Receivables, Inventories & Prepaids$47,226,000$42,600,000$29,276,000$42,488,000$36,833,000
Short-Term Investments$512,000$164,000$2,693,000$17,629,000$15,292,000
Total Current Assets$96,398,000$81,056,000$81,121,000$93,458,000$87,580,000
Long-Term Investments$17,995,000$26,701,000$30,852,000$614,000$599,000
Fixed Assets$6,280,000$8,099,000$5,867,000$4,705,000$3,425,000
Other Long-Term Assets$10,011,000$4,079,000$1,448,000$8,127,000$5,999,000
Total Long-Term Assets$34,286,000$38,880,000$38,168,000$13,446,000$10,024,000
TOTAL ASSETS$130,684,000$119,936,000$119,289,000$106,904,000$97,604,000
Liabilities20102009200820072006
Payables & Accrued Expenses$19,291,000$11,490,000$11,702,000$11,019,000$7,364,000
Other Current Liabilities$32,294,000$24,958,000$21,668,000$25,370,000$22,704,000
Total Current Liabilities$51,586,000$36,448,000$33,370,000$36,389,000$30,069,000
Debt$4,412,000$3,550,000$1,562,000$587,000$611,000
Other Long-Term Liabilities$320,000$20,909,000$24,445,000$25,059,000$22,573,000
Total Long-Term Liabilities$4,732,000$24,459,000$26,007,000$25,647,000$23,184,000
TOTAL LIABILITIES$56,318,000$60,908,000$59,378,000$62,037,000$53,253,000
Assets20102009200820072006
Unrestricted$39,180,000$19,478,000$20,962,000$15,826,000$15,700,000
Temporarily Restricted$35,186,000$39,549,000$38,948,000$29,040,000$28,650,000
Permanently Restricted$0$0$0$0$0
NET ASSETS$74,366,000$59,028,000$59,910,000$44,867,000$44,350,000
Revenue and Expenses
Revenue20102009200820072006
Total Contributions$237,872,000$193,289,000$212,987,000$176,478,000$200,872,000
Program Service Revenue$2,208,000$1,446,000$2,782,000$3,062,000$1,937,000
Membership Dues$0$0$0$0$0
Investment Income$73,000$534,000$1,048,000$2,209,000$1,694,000
Other Revenue$4,787,000$341,000$1,618,000$703,000$398,000
Total Other Revenue$7,069,000$2,323,000$5,448,000$5,974,000$4,031,000
TOTAL REVENUE$244,942,000$195,613,000$218,436,000$182,452,000$204,903,000
Expenses20102009200820072006
Program Services$213,731,000$170,631,000$175,657,000$159,656,000$168,139,000
Management & General$19,766,000$17,187,000$17,049,000$15,583,000$13,829,000
Fundraising$9,061,000$8,316,000$10,685,000$9,888,000$8,860,000
TOTAL EXPENSES$242,559,000$196,135,000$203,392,000$185,128,000$190,830,000
Change in Net Assets20102009200820072006
SURPLUS (DEFICIT)$2,383,000($522,000)$15,043,000($2,675,000)$14,073,000
Other Changes in Net Assets$0$0$0$3,192,000$0
TOTAL CHANGE IN NET ASSETS$2,383,000($522,000)$15,043,000$516,000$14,073,000