Books for Africa Rating Summary

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Books for Africa Rating Summary

  1. 1. NPI Evaluation of Books for Africa NPI Rating: Neutral Evaluation as of 10/4/2011 Analyst: Kent Chao www.nonprofitinvestor.org
  2. 2. NPI Rating: NEUTRALAs the largest shipper of donated books to the Africancontinent, BFA enjoys scale benefits of distribution.However, material inconsistencies in key metrics suchas cost per book shipped and shipping cost per bookdiminish the credibility of reported information.Project-specific donations may be the best way todonate and track results. www.nonprofitinvestor.org
  3. 3. Books for Africa: Cautions▼ Based upon the estimated value indicated by BFA, cost per book shipped has increased from $7.38 to $10.90 per book. This could potentially indicate that more valuable books are being shipped but is inconsistent with the “$7.50 per book” valuation methodology indicated by BFA.▼ Additionally, BFA indicates that it costs approximately 50 cents to ship each book to Africa. However, it appears that this figure has moved from $0.63 to $0.93 between 2008 and 2010.● Revenue and expense figures presented in BFA annual reports do not provide a holistic view of negative trends in the organization. Examination of the Form 990 indicates that the organization’s shipments have declined from 2.7MM books in fiscal 2008 to 1.6MM books in fiscal 2010, representing a 42% decline.● BFA has filed a Form 990 for FY2010 but FY2010 audited financials have not yet been released (fiscal year ended June 30).● BFA has significant donor concentration, as it receives approximately a quarter of its annual support from Better World Books. www.nonprofitinvestor.org
  4. 4. Books for Africa: Strengths▲With an annual cash budget of less than $2MM, BFA is able to distribute ~$17MM of books to Africa each year.▲BFA’s newer programs such as the Jack Mason Law & Democracy Initiative address additional causes beyond literacy. www.nonprofitinvestor.org
  5. 5. More Information• Access the full research report for free here: nonprofitinvestor.org/BooksForAfrica• To provide feedback on the report, please either comment directly on our website or contact us directly: nonprofitinvestor.org/contact www.nonprofitinvestor.org
  6. 6. About NPI• Nonprofit Investor publishes detailed, peer-reviewed evaluations of charities written by business leaders with due diligence expertise. All research reports are free to download: nonprofitinvestor.org/research• Follow NPI: – Twitter: @nonprofitinvest – Quora Blog: nonprofitinvestor.quora.com – Facebook: facebook.com/nonprofitinvestor• NPI is a 501(c)(3) charity (EIN: 45‐3627609) www.nonprofitinvestor.org

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