This is a companion piece to the article We Care: GoodWeave – Care & Fair By Leslie Stroh, which appeared in the February 2014 issue of Rug News andDesign Magazine.
GoodWeave and Care & Fair seem to be the two organizations impacting the carpet making community. The Global Fund for Children, Project Mala, Social Accountability International and others impact rug weaving in different ways.
GoodWeave seems to be creating a brand and marketing the brand globally.
Care & Fair seems to be working in the rug weaving areas with direct services benefiting weavers.
Both are now describing their activities with numbers.
So we took a look at their numbers. Categories are only roughly comparable, but illustrative.
Goodweave 2013 year end Newsletter
Consumers reached 65 million
Companies joined 14
Supply Chain Inspections conducted 2,127
Children rescued 43*
Children educated 2,227
Adult workers benefited 33,500
Carpets certified 119,419
Dollars back to weaving communities $234,091**
Above data from their year end 2013 email newsletter.
Their estimate of their market share already 6%
IRS form 990 year 2011 (most recent)
From Pro Publica analysis of 990-2011
Exec. Comp, Salaries and Wages $600,498 -44.6%
Other Admin from Pro Publica 990-2011 $378,285
From the GoodWeave annual report-2011
Fund Raising $249,127
Or looked at another way in the 2011 Annual report (latest available on website)
Carpet Trade Outreach $587,211
International Programs $416,938
Total 2011 $1,672,021
There is a clear distinction between the reporting system employed by the IRS on form 990, and an annual report. I asked the Foundation Center what they suggested and they said go with the 990. The most recent GoodWeave 990 available appears to be for 2011, and is available from www.foundationcenter.org online.
Care & Fair Year end 2013 data as supplied.
Actual 11 numbers are through November. Final numbers are coming in from country organizations and going to audit, so they will not be available to later this year.
Expenditures for Care & Fair, according to a recent email are for 2013 (subject to audit) are expenditures Euro 102,660 or dollars at 1.35 per Euro $ 138,591
According to the email, that amount covers all costs: salaries, office rent, stationary, transportation in all four countries plus Europe, which they can break out after all the data is in and audited. Project income and expense is reported separately.
Disclosure: Dasha Morgan, editor of this publication, is an unpaid liaison of Care & Fair in the United States.
Projects supported 2013 11 months
In whole or sponsored
Schools children educated 4,443
Women’s adult education 252
Teachers or Doctors 155
Staff for projects 98
Subtotal for 11 months 4,948
Health Care Patients 92,004
Plus approximately Dec. 8,000 100,004
Above numbers are for 2013
Project income based on 1% contribution $128,100
Project expenditure both 2012 figures $147,540
Children Educated 2013
Care & Fair 4,443
Contribution from fees on sales
1.5% Goodweave assuming category is dollars back to weaving
countries by GoodWeave $234,091
1% Care & Fair $128,100
Value of carpets subject to fee
At 1.5% Goodweave $15,606,066
At 1% Care & Fair $12,810,000
To the best of my knowledge and research GoodWeave has not published their fee income so I am only guessing that fee income is being returned to the weaving community, but it is a logical guess from the language for the category.
We don’t need to analyze the cost of running the operation when the numbers are so disproportionate between the two organizations. There is an activist named Dan Pallota who argues that overhead is a necessity for not-for-profits as it is for corporations.
Rug News andDesign has talked to two people who believe that the right structure for a not-for-profit is to run a profitable business that supports a not-for-profit instead of relying on donations.
Since this is about children, look at the numbers. Care & Fair educates 4,443 children on approximately one tenth the budget of GoodWeave with 2,227 children being educated.
The bottom line: double the impact, for one tenth the money: Care & Fair.
* Children rescued 43—In GoodWeave financials we found (2011) the following statement “For each percent growth in market share (from 6% claimed) GoodWeave projects 1,000 children will be rescued from work on the looms.” As they claim 6% market share, that means with 100% market share they will rescue 94,000 children, of the 250,000 they claim are still in the labor force, about 40%, leaving 60% behind. At 50 children rescued per year, we are looking at a 2,000 year project for 100,000, and at 250,000 a 5,000 year project. (It should be clear by now that one of my pet peeves is sloppy hyperbole with numbers. – ed)
** “Dollars Back to weaving communities”, suggests to us that this is the fee income that GoodWeave receives for selling labels. We could be wrong, and can be corrected.
*** G&A of $85,000 in the annual report compared to the numbers in the IRS 990, (2011) can only be possible by allocating G&A to projects, especially when the Executive Director’s compensation exceeds this amount. Pro Publica’s analysis of the 990 puts salaries in excess of $600,000, and Guide Star has Admin costs approaching $1,000,000. No doubt the annual report numbers have passed the audit committee, but from the outside looking in, I think I am looking at the rabbit hole that Alice found.