Employment: Archives 2014 & Earlier

AED Finds Single Buyer, U.S. Programs Expected to Continue

The Academy for Educational Development is close to being acquired by major North Carolina nonprofit Family Health International (FHI), and, if the deal is finalized, AED’s U.S. youth programs likely would continue.  

“They’re very excited” about the U.S. programs, said Bonnie Politz, vice president and senior technical expert for the AED Social Change program.

The two nonprofits, both among the largest in the United States in terms of revenue, signed an asset purchase agreement on Wednesday. A joint statement on both organizations’ websites says that the two will work to complete a deal within a month.

In December 2010, AED was notified that the U.S. Agency for International Development (USAID) was suspending it from receiving any federal funds pending an ongoing investigation by the USAID inspector general.

The agency canceled AED’s $150 million contract in Pakistan, as well as another contract for educating citizens in Afghanistan. The freeze-out by USAID also prevented AED from pursuing funding from other federal agencies.

AED announced in March that it would sell off its assets, preferably to a single buyer.

“We believe FHI provides the right fit for the continuity of our work in health, education, civil society, environment, and social and economic development in the U.S. and around the world,” said AED President Gregory Niblett in the statement. “We are confident that AED’s diverse programs and staff, and our reputation for service to society built over the last 50 years, will continue to flourish under the leadership, management, and fiscal stewardship of FHI.”

FHI specializes in health care services, and operates almost entirely in other countries. But Politz said she has “100 percent certainty” that AED’s U.S. programs, although “maybe not each and every one,” will continue if the acquisition is completed.

The U.S. youth program has three divisions: the Center for School and Community Services, the Center for Youth Development and Engagement, and the National Institute for Work and Learning.

AED brought in $433.9 million in revenue during fiscal 2009, according to its tax returns. Of that, $394.1 million was government funding. FHI had $328 million in revenue during 2009 and $370 million in 2008, according to tax returns.


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