Where Does $100 to the V Foundation Go (2023)?

The V Foundation was founded by Jim Valvano, the legendary basketball coach who died in 1993 when he was 47 years old. Based in Cary, North Carolina, the V Foundation was established to raise funds for cancer research so the organization engages in primarily two functions:  fundraising and awarding grants.  However, it is also important to note that an affiliate organization – Don’t Ever Give Up, Inc. – a non-profit 501 (c) (3) – that operates out of the same office – exists to raise funds for the V Foundation.

It is unclear why Don’t Ever Give Up, Inc. was established (in 2015) to raise funds when one of the two purposes of the V Foundation is to raise funds.  Sometimes non-profits form an affiliate organization to focus solely on fundraising so that the primary organization’s fundraising costs appear lower than what they actually are.  To fully understand the V Foundation, it is necessary to look at the IRS Form 990’s of BOTH organizations. If both organizations were considered collectively (since Don’t Ever Give Up, Inc. exists to support the V Foundation), then a more accurate picture of revenue and expenses are revealed.

The key financial points based on the 2022 Form 990 (covering the year beginning October 1, 2022 and ending September 30, 2023) are summarized as follows:

The V Foundation raised $48 million (of which $20 million came from Don’t Ever Give Up, Inc) while Don’t Ever Give Up, Inc. raised $29 million. $20 million of the $29 million from Don’t Ever Give Up, Inc. was given to the V Foundation so collectively, the two organizations reported $57 million ($48 million – $20 million + $29 million) in total revenue.

The V Foundation reported $50 million in expenses while Don’t Ever Give Up, Inc. reported $26 million in expenses  (of which $20 million was a grant to the V Foundation) so the total expenses of both organizations were $56 million ($50 million + $6 million (($29 million – $20 million)) reported in the following categories:

• $6 million (or 10% of revenue):  Fundraising Costs ($4 million from the V Foundation and $2 million from Don’t Ever Give Up, Inc.)
• $8 million (or 14% of revenue):  Management Costs ($4 million from the V Foundation and $4 million from Don’t Ever Give Up, Inc.)
• $1 million (or 2% of revenue):  Program Expenses ($1 million from the V Foundation)
• $41 million (or 72% of revenue):  Grants ($41 million from the V Foundation)

As illustrated above, the two organizations spent $6 million (or 10% of revenue) on fundraising costs, $8 million (or 14% of revenue) on management costs, $1 million (or 2% of revenue) on program expenses, and $41 million (or 72% of revenue) on grants.

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

$100:  Revenue

-$ 10:  Fundraising Costs

-$ 14:  Management Expenses

-$  2:  Program Expenses 

-$ 26:  Total Fundraising, Management, and Program Expenses

 $ 74:  Revenue Remaining

-$ 72:  Grants

 $  2:  Amount Remaining:  To Fund Balance

As illustrated above, $26 out of every $100 in revenue raised went to pay fundraising, management and program expenses. $72 out of every $100 raised was awarded in grants.  $2 out of evert $100 was allocated to savings.  At year-end, the V Foundation had $51 million in net assets while Don’t Ever Give Up, Inc had $16 million in net assets for a total of $67 million.

The $41 million in grants included 59 grants greater than $5,000 to other non-profits with the largest grants awarded for cancer research to Dana Farber ($2.2 million), Sloan Kettering ($2 million), and ($1.8 million to St Jude – although St Jude has more than $10 billion in net assets).

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In summary, the V Foundation was formed in 1993 to raise funds and award grants for cancer research. In 2015, Don’t Ever Give Up, Inc. was formed to raise funds for the V Foundation which appears to make the fundraising and management costs of the V Foundation appear lower than what they actually are. Don’t Ever Give Up, Inc. exists to raise funds for the V Foundation, reports no employees (they use the employees from the V Foundation and reimburse the organization) so both organizations have to be considered to fully understand how revenue is used.

Collectively, the two organizations raised $57 million in 2023 and spent $15 million (about 26% of revenue) on fundraising, management, and program service expenses. About $41 million (about 72% of revenue) was awarded in grants for cancer research.

At year-end, the V Foundation reported $51 million in net assets while Don’t Ever Give Up, Inc reported $16 million in net assets, which means V Foundation (established 30 years ago) has allocated an average of nearly $2 million annually (or did not spend nearly $2 million of revenue annually) while the Don’t Ever Give Up, Inc (established 8 years ago) has allocated an average of $2 million annually (or did not spend $2 million of revenue annually).

To read the IRS Form 990 (2022 for the year ending Sept 30, 2023) for the V Foundation, click here.

To read the IRS Form 990 (2022 for the year ending Sept 30, 2023) for Don’t Ever Give Up, Inc, click here.