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December 29, 2022

Where Does $100 to the March of Dimes Go (2021)?

by Anne Paddock

2021 was a better year than 2020 for the March of Dimes with the benchmark being the organization went into a positive net asset position (from a negative $20 million at the end of 2020).  Just eight years ago, the March of Dimes had $75 million in net fund assets and was raising nearly $200 million annually but they were spending more than they raised.  Since then, revenue has declined and the organization went into a negative net fund position because they were spending $8-$27 million more than they raised annually, had to fund a pension/post retirement fund for employees, and had losses on investments. Things were not looking good by 2016 so the organization brought in a new president in 2017 following the retirement of the longtime president.

But revenue continued to decline (from $169 million in 2016 to $164 million in 2017 to $141 million in 2018 to $130 million in 2019 to $101 million in 2020).  Staff cuts were made (the organization had 1,513 employees in 2016 compared 683 in 2021), first class travel finally appeared to be eliminated (the IRS Form 990 in 2017, 2018, 2019, 2020, and 2021 shows staff did not fly first class, as in previous years), and the organization cut expenses and did not spend more than they raised in 2018, 2019, and 2020. In 2021, the March of Dimes spent what they raised but were able to end the year with $1 million in net assets because of the fair value of assets held in trust were increased by $18 million.

In 2021, revenue was $103 million (compared to $101 million in 2020) nearly all of which came from contributions, gifts, and grants), despite the use of multiple professional fundraisers and heavy advertising in the Wall Street Journal.

Expenses totaled $103 million and were categorized as follows:

  • $51 million (50% of revenue):  Compensation
  • $23 million (22% of revenue):  Office-Related Expenses
  • $17 million (16% of revenue):  Fees for Services (primarily other with no detail provided)
  • $ 3 million (3% of revenue):  Advertising and Promotion
  • $ 6  million (6% of revenue):  Grants
  • $ 2  million (2% of revenue):  Other Expenses
  • $ 1   million (1% of revenue):  Travel and Conferences

As illustrated above, compensation is the single largest expense for March of Dimes. 683 (50 less than the prior year) were compensated $51 million, which equates to an average compensation of $75,000.  The most highly compensated employee was Stacey  D Stewart, the President and CEO who received $621,494. Office-related expenses (i.e. office expenses, occupancy, equipment and furniture, telecommunications) used up 22% of revenue followed by fees for services which totaled $17 million, of which $4 million was for “other services” described as contracted services for programs and management.

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 50:  Compensation

-$ 22:  Office-Related Expenses

-$ 16:  Fees for Services

-$  3:  Advertising and Promotion

-$  2:  Other Expenses

-$  1:  Travel and Conferences

-$ 94: Subtotal: Compensation, Office, Services, Travel, and Other Expenses

  $  6:  Revenue Remaining

-$  6: Grants

 $  0:  Revenue Remaining: 

As illustrated above, $94 out of every $100 was used to pay staff, cover office expenses, pay for contract services for programs and management, cover other expenses (no detail provided), advertising and promotion, and pay for travel and conferences. $6 out of evert $100 was awarded in grants.

So, if you donated $100 to the March of Dimes in 2019, most ($94) of your donation went to pay staff, office, advertising and promotion, and outside vendors for program and management services.

And, finally it is important to note the single largest liability ($71 million) is accrued pension/retirement benefits for employees, which is notable for a non-profit.  In other words, the March of Dimes has not adequately funded the accrued pension/retirement funds for its employees and is digging out of a self-inflicted hole.

When a non-profit is not doing well, the board and management are typically scrutinized.  The March of Dimes is governed by a board of trustees with 19 independent trustees. The 2021 Form 990 reports 23 trustees (due to timing differences). 11 trustees are male while 12 are female (note:  The Form 990 does not reported gender. Determinations were made based on name and google searches).  In 2017, the board brought in a new President and CEO, Stacey D Stewart who has not yet succeeded in turning the organization around with the biggest issues appearing to be raising funds and spending less.

To read the IRS Form 990 (2021), click here.

Read more from Non-Profits

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