FHI, formerly known as Family Health International, is acquiring AED, a troubled Washington, D.C.-based nonprofit that focuses on health, education, and social and economic development.
The two organizations announced an agreement Wednesday, and FHI plans to take over AED in the coming weeks.
FHI operates internationally and focuses on health and development issues. It is based in RTP.
AED operates in more than 50 countries and across the United States with more than 100 programs.
However, the group has been in financial trouble and in March announced it would close, according to a report in the Chronicle for Higher Education.
“The move came after the U.S. Agency for International Development suspended the charity from receiving new government awards after the agency’s inspector general accused AED of ‘misconduct”’ in programs in Afghanistan and Pakistan,” the Chronicle reported about the FHI acquisition.
“The new arrangement will allow former AED programs to receive new financing from the federal government,” the publication added.
FHI did not say anything about AED’s troubles in its acquisition announcement.
FHI had revenues, gains and support totaling nearly $327.6 million and expenses totaling $324.6 million in the fiscal year ended Sept. 30, 2009, according to its 2009 annual report, The Philanthropy Journal in Raleigh reported Thursday.
AED, or the Academy for Educational Development, had revenue totaling $440.7 million and expenses totaling nearly $437 million in the fiscal year ended Dec. 31, 2009, PJ added.
“FHI and AED share similar missions, strong mutual histories of partnership at every level, and a commitment to foster sustainable development in communities in greatest need,” said FHI Chairman and Chief Executive Officer Gregory Niblett. “Creating lasting change in the communities we serve is at the center of our work.
“The opportunity to leverage our collective expertise, programs, and partnerships will amplify our efforts to implement solutions to critical social problems around the globe,” he added.
FHI said it planned “to employ substantially all AED staff.”
Read here for the full announcement.
Read the Chronicle report here.
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