CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.
|CharityWatch's rating of the Alzheimer's Association for the fiscal year ended 6/30/16 includes the financial activities of 34 National Chapters; it does not include the financial activities of the 47 local chapters.|
As noted in the Alzheimer's Association consolidated audit of June 30, 2016 (Note A, Organization and Basis of Consolidation):
"...the Association oversees the operations and activities for 34 National Chapters to facilitate strategic alignment, deliver on the overarching Association-wide strategic objectives and priority activities, and to ensure coverage for all geographic territories. The National Chapters' activity is included in the consolidated financial statements..."
"There were 47 local chapters supported by the Association as of June 30, 2106. The accounts and operations of the local chapters are appropriately not included the Association's consolidated financial statements..."
Also according to the Alzheimer's Association consolidated audit of June 30, 2016 (Note V, Subsequent Events):
"Effective July 1, 2016, the Association combined with the remaining 47 local chapters to create a united Alzheimer's Association. Total assets from the 47 chapters are approximately $157,000,000 and net assets are approximately $135,000,000."
|According to the Alzheimer's Association consolidated audit of June 30, 2016 (Note L, Gifts-In-Kind and Contributed Services):|
"...During 2016, the Association received approximately $3,806,000 in gifts-in-kind and contributed services. Of these non-monetary transactions, the Association recorded services valued at approximately $3,306,000 as program expense for the medical science research grants review process and the Alzheimer's Association International Conference and gift-in-kind of approximately $500,000 as fundraising expenses..."
[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 by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
|According to the Alzheimer's Association tax filing for the fiscal year-ended June 30, 2016, the Association reports for Business Transactions Involving Interested Persons a transaction in the amount of $462,830, with the description: "Joseph McCafferty, board member of Alzheimer's Association, resigned on July 7th, 2016. Following his resignation, Mr. McCafferty's company, Tandem Solutions, was engaged as an independent contractor" (IRS Form 990, Schedule L, Parts IV & V).|
|According to the Alzheimer's Association tax filing for the fiscal year-ended June 30, 2016 (IRS Form 990, Schedule J, Part III, Supplemental Compensation Information):|
"Harry Johns received performance based incentive compensation of $139,260 based on his successful achievement of specific goals, which were developed, reviewed, and approved by the compensation committee of the board of directors in consultation with the board's independent third-party compensation consultants. This performance based incentive compensation was earned for performance in fiscal year 2015 and was paid in calendar year 2015."
Harry Johns is the President & CEO of Alzheimer's Association, and his total reported compensation, including the $139,260, for the calendar year 2015 was $1,119,540 (IRS Form 990, Schedule J, Part II). His compensation of $1,119,540 ranked #14 on CharityWatch's Top 25 Compensation Packages list (as of July 2017).