Special Olympics

CharityWatch's rating of Special Olympics also includes the financial activities of its affiliated organizations, SO Europe Eurasia Foundation (the Foundation), Special Olympics Asia Pacific, Ltd. (SOAP Ltd), Special Olympics Entertainment Corporation (SOEC), and Special Olympics Community Services, Ltd. (SOCS). 

According to the Special Olympics, Inc. (SOI) combined audit of December 31, 2022 (Note 2 re: Principles of Combination):

"The principal activities of these three entities [the Foundation, SOAP Ltd, and SOCS] are to benefit their local communities through the provision of financial assistance to support the Special Olympics mission. SOEC was formed February 15, 2019, as a tax-exempt organization...for the purpose of managing the production of a film featuring Special Olympics athletes. SOI controls the Board of Directors of all four organizations and exerts significant influence over their activities. All intercompany accounts and transactions have been eliminated in [the audit] combination."


Also according to the Special Olympics, Inc. (SOI) combined audit of December 31, 2022 (Note 1, Nature of Activities):

"...SOI accomplishes its mission through its approximately 207 independent accredited programs worldwide, plus independent games organizing committees responsible for organizing, financing and conducting world and regional games. SOI does not have a controlling financial interest in its accredited programs or the games organizing committees, and the accompanying [audited] combined financial statements do not include the accounts of these accredited programs and games organizing committees (see Note 5) [cited in a separate Analysts' Note, below]."

According to the Special Olympics, Inc. (SOI) combined audit of December 31, 2022 (Note 5, Affiliated Organizations and Related Party Transactions, Accredited programs and games organizing committees):

"SOI biennially accredits organizations as Programs at state and national levels for the purpose of conducting Special Olympics activities in their respective territorial jurisdictions. SOI accredits a Program if it meets specific organizational, programmatic and legal requirements. Accredited Programs are authorized to use the Special Olympics name and logo, raise funds in the name of Special Olympics, receive grant support and participate in conferences and international sporting events sanctioned by SOI. Currently, there are accredited Programs in 50 U.S. states, the District of Columbia, Puerto Rico and in approximately 157 countries outside the United States. SOI contracts with local games organizing committees to conduct various international and regional Special Olympics games. 

During 2022 and 2021, SOI made awards and grants of $50,660,725 and $47,614,167, respectively, to accredited Programs, which are allocated to functional expenses in the accompanying combined statements of activities."

According to the Special Olympics, Inc. (SOI) tax filing for the fiscal year ended December 31, 2022, SOI reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"Alicia Bazzano [Past Chief Medical Officer] - severance pay of $16,506."

SOI reports providing "bonus & incentive compensation" during 2022 to eleven individuals. David Evangelista, Regional President & Managing Director - SOEE, received $27,500 of bonus and incentive compensation, with a total reported compensation of $295,652. The remaining ten individuals received $5,000 to $25,000 with total compensation ranging from $203,835 to $552,476. 

According to the Special Olympics, Inc. (SOI) audit of December 31, 2022 (Note 14, Paycheck Protection Program (PPP) Promissory Note):

"On May 1, 2020, SOI applied for and received a loan of $3,549,950 pursuant to the PPP under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), which was enacted March 27, 2020. The interest rate was 1.0% per annum, payable monthly commencing after a decision on forgiveness is received, if necessary. The loan was guaranteed by the Small Business Administration and was due to mature on May 3, 2022. There were no application or other fees associated with this loan. Qualifying uses of proceeds included payment of compensation and benefit costs in order to retain workers, and to make lease payments and utility payments. SOI used the entire loan amount for qualifying expenses. Under the terms of the loan, some or all of the loan may be forgiven if the funds are used for qualifying expenses as described in the CARES Act. The loan may be prepaid at any time without penalty. SOI applied for and received forgiveness on August 14, 2021. Under the guidance of ASC 958-605. SOI recognized non-exchange revenue (i.e., grant income) in other income once the loan agreement was considered unconditional (i.e., forgiveness of the loan received in 2021 and other barriers previously met). The outstanding balance on the loan at December 31, 2021, was $0."

According to the Special Olympics, Inc. (SOI) audit of December 31, 2022 (Note 2, Summary of Significant Accounting Policies, Individual and corporate contributions and sponsorships):

SOI reports receiving contributed nonfinancial assets on which it placed a total value of $7,943,661. Of this amount, $4,546,932 is related to "Medical supplies," and $1,258,215 is related to "Marketing, digital and content creation."

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]