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.
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|CharityWatch's rating of Drug Policy Alliance (DPA) includes the financial activities of the 501(c)3 public charity entity, Tax ID#52-1516692. CharityWatch issues a separate rating for DPA's related 501(c)4 organization, Drug Policy Action, Tax ID#52-1951197.|
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 on the Criteria & Methodology tab under the "About Us" navigation header.
On its website at www.drugpolicyaction.org, Drug Policy Action describes itself as "the advocacy and political arm of the Drug Policy Alliance."
According to the Drug Policy Alliance audit of May 31, 2015, Note 11, Rescinded Grant:
"In fiscal year 2012, [Drug Policy Alliance] received a $50,000,000 multi-year grant from the Open Society Institute. The funds were to be made available over ten years, at $5,000,000. In fiscal year 2014, following a series of discussions between [Drug Policy Alliance] and Open Society Institute, it was decided to rescind the grant for the remaining eight years of the pledge and re-grant the balance of the grant to Drug Policy Action, a 501(c)4 corporation, at an accelerated schedule. The $33,309,108...will not be received by [Drug Policy Alliance], but instead will be granted to Drug Policy Action to be used for that organization's primary purpose, as it aligns with and complements [Drug Policy Alliance's] mission, goals and objectives."
According to the Drug Policy Alliance audit, Note 9, Note Payable:
"During 2015, Drug Policy Alliance entered into a note payable with Drug Policy Action to borrow up to $5,000,000 per year for 8 years. Interest on outstanding borrowings under the agreement is fixed at 2% per annum. As of May 31, 2015, the outstanding balance is $3,000,000. The note has no maturity date and is payable on demand."
According to their respective tax filings for the fiscal year-ended 5/31/2015, Drug Policy Alliance and Drug Policy Action share the same physical address and phone number, the same president (IRA Glasser), and the same executive director (Ethan Nadelmann). In addition, according to audit Note 13, Related Party Transactions:
"As per an administrative services agreement between Drug Policy Alliance (DPA) and Drug Policy Action, Drug Policy Action reimburses DPA for all administrative, personnel and related expenses, and use of facilities. During the years ended May 31, 2015 and 2014, DPA received from Drug Policy Action approximately $146,000 and $114,000 for expenses paid by DPA..." (inactive note)