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 Drug Policy Alliance (tax ID# 52-1516692) is for the 501(c)(3) public charity.|
CharityWatch issues a separate rating for Drug Policy Action (tax ID# 52-1951197), which is Drug Policy Alliance's related 501(c)(4) tax-exempt, social welfare organization.
For more information on why CharityWatch issues separate ratings of related 501(c)(3) and 501(c)(4) organizations, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found in the "Criteria & Methodology" section after clicking on "About Us" from the navigation header.
For more information about things to consider when donating to organizations that have related public charity and social welfare entities, click on the "Donor Alerts & Articles / Media" tab (above), and read "Sorting Out Non-Profit Pairs."
|According to the Drug Policy Alliance (DPA) audit of May 31, 2017 (Note 8, Note Payable-Related Party):|
"During 2015, DPA entered into a revolving note payable with Drug Policy Action to borrow up to $5,000,000. During 2016, the amount DPA can borrow was increased to $10,000,000. During 2017, the amount DPA can borrow was increased to $15,000,000. Interest on outstanding borrowings under the agreement is fixed at 2% per annum. As of May 31, 2017 and 2016, the outstanding balance is $7,000,000. The note has no maturity and is payable on demand. Interest expense in the [sic] amounted to $160,000 [and] $118,333 for the years ended May 31, 2017 and 2016."