Executive Compensation at the American Red Cross
The American Red Cross (ARC) provides a link on their website to the 2016 American Red Cross Tax Form 990 but the link is actually to the 2015 IRS Form 990 that covers the year beginning July 1, 2015 and ending June 30, 2016 – a year that was not one of ARC’s better years financially.
First, revenue was down by $100 million from $2.7 billion the year before to $2.6 billion in the most recent year. Second, overall net assets decreased by $600 million from $1.6 billion at the beginning of the year to $1 billion because the organization spent more ($61 million) than they raised, there was an unrealized loss ($146 million) on investments, and because there was a loss ($400 million) in the employee retirement pension and post retirement benefits fund (note: the organization’s largest liability – $1.1 billion – is to pension and post retirement benefits for its employees). Read more 
Executive Compensation at the March of Dimes
The March of Dimes has experienced tough times for the past few years. At the beginning of 2014, the March of Dimes had $75 million in net fund assets which was reduced to $24.6 million at year-end after spending $8 million more than they raised, recognizing an unrealized loss ($1.6 million) on investments, and a $41 million pension/post-retirement liability.
In 2015, the deterioration continued when the March of Dimes spent $26.8 million more than they raised and recognized a $3.4 million unrealized loss on investments. A $19 million pension post-retirement credit resulted in the March of Dimes ending 2015 in a positive position with $13.4 million in net fund assets.
But, in 2016, the March of Dimes went into a negative net asset position. Starting with $13.4 million in net fund assets at the beginning of the year, the organization then spent $8.7 million more than they raised. Although the March of Dimes was able to post a $2.8 million unrealized gain on investments, a $20.4 million million change in pension and post retirement benefits resulted in the organization showing a negative asset balance of -$12.9 million at year-end. In other words, for 3 years the March of Dimes spent more than they raised and faced increasing pension and post retirement benefit liabilities for its employees contributing to the organization going into a financial position where their liabilities exceed their assets in 2016. Read more
Where Does $100 to the Nature Conservancy Go?
The Nature Conservancy raises nearly a billion dollars a year and has close to $6 billion in their net fund assets, making the organization one of the most well capitalized non-profits in the country. If you’ve ever wondered how a donation is spent but don’t feel inclined to read the dozens and dozens of pages of the IRS Form 990 (the tax return submitted to the IRS annually), then continue reading. Read more
Executive Compensation at United Way
United Way may refer to a number of charitable organizations throughout the world but in the United States, United Way generally refers to United Way Worldwide (formerly United Way of America) and/or one of the 1,400 offices in 40 countries and territories.
United Way Worldwide is the leadership and support organization for the whole network which includes approximately 1,200 local offices (approximately 85% of the total number of offices) in the United States (including DC, Puerto Rico, and the Virgin Islands). A non-profit 501 (c) (3), United Way Worldwide is required to submit an IRS Form 990 (a tax return that provides details on revenue, expenses, assets, liabilities, and more) annually, as does each of the local offices. Read more
Executive Salaries at the Nature Conservancy
The Nature Conservancy – a 501 (c) (3) based in Arlington, Virginia – whose mission is “to conserve land and waters on which all life depends” has been around since 1951 and is one of the most popular and wealthy non-profits in the country.
The most recent financial information (the 2015 IRS Form 990 for the year ending June 30, 2016) reports the organization raised $914 million and spent $810 million. Although it appears the organization could have added $104 million to their net fund assets, these unspent funds were used to offset unrealized losses on investments. Consequently, the Nature Conservancy’s net fund assets remained virtually unchanged at year-end at $5.9 billion. Read more
Where Does $100 to the Clinton Foundation Go?
The Clinton Foundation – also known as the “Bill, Hillary, and Chelsea Clinton Foundation” (BHCCF) – is based out of Little Rock, Arkansas although there are offices in other locations including New York City. Established in 1997, the organization is a 501 (c) (3) engaged primarily in maintaining and operating the Presidential Library and Museum in Little Rock, and addressing “the world’s most pressing problems.”
BHCCF is not a large grant provider; nor does the organization specialize in implementing projects. Instead, BHCCF appears to be focused on pubic awareness, establishing partnerships with other organizations, and finding solutions (referred to as initiatives) to a variety of global issues including third world problems, climate change, and health-related issues. Read more
Where Does $100 to Compassion International Go?
Compassion International, Inc. (CI) is a Colorado Springs, Colorado based 501 (c) (3) engaged in Christian ministry to “release children from their economic, social, physical, and spiritual poverty.” With 1,181 employees, CI is one of the largest US charities (although the organization primarily operates internationally) raising $800 million annually and spending most funds on grants to foreign organizations and individuals. Read more
Cars Helping Veterans (Others First, Inc): Donor Beware
A few days ago the postman delivered an envelope called the Money Mailer whose back cover was covered with an advertisement (pictured below) for an organization called Cars Helping Veterans (www.carshelpingveterans.org) – an organization asking for car donations “to help our veterans” along with the statement “Your car donations support purple heart recipients, wounded warriors, homeless veterans, disabled veterans, paralyzed veterans, veterans and their families.” Read more
Where Does $100 to the Alliance Defending Freedom Go?
The Alliance Defending Freedom (ADF) “is committed to transforming law and culture so true freedom can flourish” although there are many people who would disagree with this statement because the ADF advocates for religious freedom to uphold their idea of justice and preserve the right of certain people to freely live out their faith.
That this freedom results in the discrimination of others and infringes on the rights of women to choose what they want to do with their bodies doesn’t appear to matter to the ADF. It’s their religion, their faith and their definition of justice that trumps the rights of others. How ironic is it that ADF (a non-profit that relies on public donations) calls itself an alliance defending freedom but only defends the freedom of those who believe what they believe? Read more
“Aetna CEO in Line for $500 Million Payout”
Those were the headlines on the front page of the Business & Finance section of the Wall Street Journal (WSJ) yesterday. Mark T. Bertolini – the CEO of Aetna since 2010 – stands to make a half billion dollars if Aetna successfully merges with CVS and he leaves his job. According to the WSJ, about $230 million will come from already vested stock appreciation rights while another $190 million would come from the common stock he already owns. An additional $60-$85 million is estimated to be his payout if he is terminated when the company sells itself. Read more
