Matthew 25: Ministries is committed to truthful and transparent communications and to strengthening donor trust by maintaining the highest level of accountability and transparency. The brief explanations on this page provide information on the standard calculations we use in our everyday operations, and demonstrate how conscientiously, efficiently and effectively we utilize your support to provide the most impact and help the most people. For more information, please contact email@example.com.
CONTAINERS & TRUCKLOADS | 40-foot containers are our standard unit of transportation measurement, since our international shipping is all done using containers and we used containers for the majority of our early work. We often use the word “truckload” to refer to this standard 40-foot size as well. Semi tractor/trailers are 53 feet and hold 1.44 times the amount of pallets/supplies of a container. Therefore, a trailer load is reported as 1.44 containers.
AVERAGE VALUE PER CONTAINER | We calculate the average value per container by dividing the total fair market value (FMV) shipped in a given year by the number of containers shipped in that same year. This is an average – a container with lots of paper products would have a significantly lower value than a container with lots of medical supplies.
SHIPMENT RECORDS | Matthew 25: Ministries maintains detailed records on all shipments including the type of shipping (40 foot container or 53 foot semi tractor/trailer), the number of pounds per shipment, the product categories included in the shipment, the number of pallets included in the shipment, and the fair market value of the shipment.
Product categories include:
- Building Materials
- Clothing Shipments
- Food Shipments
- Household & Cleaning Items Shipments
- Latex Paint
- Medical Supplies Shipments
- Personal Care Shipments
- School Supplies Shipments
- Sewing Supplies Shipments
Every pallet of supplies is assigned to one of these categories. Cumulative numbers at the end of the year represent the total number of pallet pounds in each category added up.
PALLET OVERVIEW | Every processed pallet is counted, weighed and barcoded prior to shipping. The content of a pallet are counted in several ways. Based on the type of product, items in a pallet of supplies could be
- Hand counted by volunteers
- Counted based on quantity per box or case information provided by the corporate donor
- Assigned a quantity based on an average number of items in similar hand-counted pallets
AVERAGE PALLETS PER CONTAINER | We estimate that the average number of pallets shipped on a forty-foot container is 27 pallets. Some containers may have slightly more or fewer pallets, depending on the type of product, its destination, its weight, and other factors. However, these increases and decreases typically average out to 27 pallets per container over the course of a year.
AVERAGE VALUE PER PALLET | The value of a pallet differs based on what type of product it holds. For example, a pallet of medical supplies would have a greater value than a pallet of paper products (see the Fair Market Value section for more information). However, when calculating an average value per pallet, we do so by dividing the total fair market value (FMV) shipped in a given year by the total number of pallets shipped in that same year.
Every pallet of products is weighed prior to shipping. This weight is then recorded and used to ensure we meet all Department of Transportation requirements and weight limit regulations when assembling a truckload of product. We also use these weights when reporting back to our supporters and the public about our work.
Since 1991, Matthew 25: Ministries has shipped to approximately 70 countries on 5 continents. Some of these were locations unique to a specific catastrophic disaster or humanitarian crisis. Many times, partnerships that were originally formed for a specific event-related purpose have gone on to become valued ongoing relationships.
For catastrophic disaster deployments or for extraordinary disasters such as the COVID-19 pandemic, Mathew 25: Ministries tracks every item distributed, including disaster relief supplies such as batteries, personal care kits, cleaning supplies, detergent pods, baby products, paper products, safety kits, and other supplies. For COVID-19, Matthew 25 tracked supplies including masks, face shields, gloves, sanitizer, soap, cleaner, PPE kits and more.
Matthew 25 documents every load of laundry washed, dried, folded and returned to a participant during a disaster response deployment.
100% of designated funds are used for the purpose intended.
NUMBER OF PEOPLE HELPED PER CONTAINER | We estimate that approximately 25,000 people are helped per container. This number was carefully calculated based on a detailed analysis of a representative number of shipments and is based on the average number of “acts of assistance” on a container – or the average number of people helped by the items on the container.
NUMBER OF PEOPLE HELPED PER PALLET | We calculate the number of people helped per pallet by dividing the average number of people helped per container by the average number of pallets on a container.
VOLUNTEERS | Every volunteer signs into Matthew 25: Ministries upon arrival and signs out when they leave. As a result, Matthew 25 is able to calculate the number of volunteers who work at the building on a daily, weekly or monthly basis as well as the number of hours donated by these volunteers who evaluate, sort and process products. A “volunteer” is defined by a volunteer shift.
Recycling numbers are tracked by weighing a bale or pallet of recycled items (ex: cardboard is baled, unsanitized pill bottles are shredded and the chips are put into a pallet).
FINANCES AND VALUES
Fair market value is defined as the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. In other words, it’s the price an item would typically sell for under normal market conditions.
The Fair Market Value of donated inventory is calculated in accordance with IRS guidelines and recorded as revenue at estimated wholesale value on the date of the receipt and recorded as an expense when they are shipped. An independent audit confirms the accuracy of the pricing Matthew 25 uses for valuation purposes on a yearly basis.
TOTAL PROGRAM EXPENSES | Total Program Expenses are calculated using IRS guidelines as defined in the IRS Form 990 (Return of Organization Exempt from Income Tax) that Matthew 25: Ministries files on a yearly basis.
PROGRAM EXPENSES | Program expenses are the costs incurred when nonprofits carry out their exempt purpose. In other words, these are costs specifically related to fulfilling our mission.
In alignment with IRS regulations, the methods used to calculate these costs must be reasonable, based on the nature of the expense being allocated, and should be applied on a consistent basis across all programs.
Fundraising Expenses are calculated using IRS guidelines as defined in the IRS Form 990 (Return of Organization Exempt from Income Tax) that Matthew 25: Ministries files on a yearly basis.
As defined by the IRS, fundraising expenses are the total expenses incurred in soliciting contributions, gifts, grants, etc. Fundraising is generally defined as the process of soliciting financial support. This could include attracting individual support and donations, soliciting gifts from major donors, holding a capital campaign, promoting legacy gifts, or planned giving.
Management Expenses are calculated using IRS guidelines as defined in the IRS Form 990 (Return of Organization Exempt from Income Tax) that Matthew 25: Ministries files on a yearly basis.
As defined by the IRS, management expenses are those that relate to the organization’s overall operations and management, rather than to fundraising activities or program services.
Overall management usually includes the salaries and expenses of the organization’s executive team, unless a part of their time is spent directly supervising program services or fundraising activities. In that case, their salaries and expenses should be allocated among management, fundraising, and program services.
Compensation for all Matthew 25’s positions are commensurate with the compensation structures of other nonprofits of similar mission, vision, and size.