1. NPI Evaluation of Books for Africa
NPI Rating: Neutral
Evaluation as of 10/4/2011
Analyst: Kent Chao
www.nonprofitinvestor.org
2. NPI Rating: NEUTRAL
As the largest shipper of donated books to the African
continent, BFA enjoys scale benefits of distribution.
However, material inconsistencies in key metrics such
as cost per book shipped and shipping cost per book
diminish the credibility of reported information.
Project-specific donations may be the best way to
donate and track results.
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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.
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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.
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5. More Information
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