CharityWatch REPORT
Issued August 2018

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.

According to the American Kidney Fund (AKF) audit of December 31, 2017 (Note 11, In-Kind Contributions), AKF received donated in-kind contributions in 2017 on which it placed a total value of $8,213,659, including donated medical products valued at $7,754,611.

[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 American Kidney Fund (AKF) audit of December 31, 2017 (Note 9, Public Support):

"During 2017, AKF continued its tradition of broad-based public support with approximately 61,000 active contributors and almost 93,100 gifts. AKF received public support from two corporations in the amount of $246,324,334 and $242,191,792 for 2017 and 2016, respectively. These contributions represented 82% and 78% of the total support and revenue for 2017 and 2016, respectively. These two corporations are part of approximately 160 and 179 corporations which supported AKF patient grant programs during 2017 and 2016, respectively."
According to the American Kidney Fund (AKF) 2017 tax filing re: becoming aware during the year of "a significant diversion of the organization's assets" (IRS Form 990, Part VI, Section A, line 5), AKF reports:

"In 2017, the American Kidney Fund became aware of alleged diversion of assets by one of its employees. The alleged diversion related to payments for services not performed and billing for supplies, equipment and licenses that were not delivered. AKF engaged external legal counsel to conduct an immediate and thorough investigation, terminated the employee and reported the alleged diversion of assets to law enforcement authorities. As of filing the Form 990, the law enforcement investigation continues and charges have not been filed. The amount of the alleged diversion has not yet been verified.

"As a result of this alleged diversion, AKF has enacted enhanced internal controls related to vendor selection, procurement and payments. A special committee of AKF's board of trustees reviewed these enhanced controls and AKF's external auditors reviewed and provided a report on these enhancements' efficacy. In addition to the enhanced internal controls, AKF replaced its vendor who performed background screens for prospective employees and hired a new background screening firm with enhanced capabilities" (IRS Form 990, Schedule O).

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