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.
|Cancer Fund of America (CFA) and its affiliate, Cancer Support Services (CSS), will be permanently dissolved under the orders of an agreement settling claims related to the May 2015 action that alleged CFA, CSS, and two other "sham cancer charities" bilked donors out of more than $187 million, according to an FTC release issued March 30, 2016.|
Click on the "Donor Alerts & Articles / Media" Tab for a link to the full news release by the FTC and more information.
|According to the Cancer Fund of America & Affiliate consolidated audit of December 31, 2013 (Note 7):|
"The Organization has been asked by regulatory agencies to provide information and it has done so. No claims have been made as of the date on which the financial statements were issued [August 4, 2014]. The outcome of this matter is not currently determinable."
[Note: On May 19, 2015, the FTC and 58 law enforcement partners from every state and the District of Columbia announced that they have charged the Cancer Fund of America, Cancer Support Services, and two other "sham cancer charities and their operators with bilking more than $187 million from consumers." Click on the "Donor Alerts & Articles / Media" Tab for a link to the full news release by the FTC.]
|According to the Cancer Fund of America & Affiliate consolidated audit of December 31, 2013 (Note 8), the Organization recorded $1,489,922 in contributions for gifts in-kind received during the year ended December 31, 2013. The 2013 tax filing for Cancer Fund of America reports that all of the gifts in-kind received consist of personal care items (IRS Form 990 Schedule M).|
[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 Cancer Fund of America & Affiliate consolidated audit of December 31, 2013 (Note 6):|
"During 2010, the Organization entered into a note agreement as the lender with an officer. The original amount of the loan to the officer was $90,000. The officer subsequently made a lump sum payment of $51,400 ... It is to be paid back to the Organization in monthly installments of $746 including interest at 6.00%. The balance of the note as of December 31, 2013 is $20,475."
"The officer's intent was to borrow money from the life insurance policy referenced in Note 3 [of the audit]. Because the Organization is the owner and beneficiary of the policy, the loan had to be made to the Organization. The Organization then entered into the note with the officer described in the previous paragraph."