CharityWatch REPORT
Issued September 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.

Note(s)
CharityWatch's rating of Environmental Defense Fund (EDF) includes the financial activities of the 501(c)(3) public charity (tax ID #11-6107128).

The rating does not include the financial activities of the related 501(c)(4) tax-exempt, social welfare organization, Environmental Defense Action Fund (tax ID #90-0080500), for which CharityWatch issues a separate rating.

According to the EDF consolidated audit of September 30, 2017 (Note 11, Wholly-Controlled Entity Transactions), EDF made a $4,570,238 grant to the Environmental Defense Action Fund in fiscal 2017.


CharityWatch issues separate ratings for 501(c)(3) & 501(c)(4) organizations, even if their financial activities are included together in a consolidated audit, due to their different treatment under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found in "Criteria & Methodology" under the "About Us" 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 Environmental Defense Fund (EDF) tax filing for the fiscal year-ended 9/30/2017 re: Compensation Information (IRS Form 990, Schedule J, Part II), EDF reports paying the following in "Bonus & incentive compensation" to these individuals in calendar year 2016:

(1) Frederic D. Krupp, President: $105,000, with reported total compensation of $712,456;
(2) Eric Pooley, Sr VP Strategy & Communication: $100,000, with reported total compensation of $489,893;
(3) Diane Regas, Executive Director: $15,000, with reported total compensation of $422,376;
(4) Dr. Daniel Dudek, VP of Asia: $50,000, with reported total compensation of $382,492; and
(5) Paula Hayes, Senior VP, Global Strategy: $10,000, with reported total compensation of $347,757.


In addition, EDF reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

"David H. Festa, Vice President of Eco Systems, receives a reportable housing allowance of $70,000 which is reflected on Part II, Column B(iii) ['Other reportable compensation']." This allowance is included in his reported total compensation of $354,075 in calendar year 2016, according to Part II.

"Cynthia Hallenbeck, CFO thru June 30, 2016, received a severance payment of $124,787[,] which is reported on Part II, Column B(iii) ['Other reportable compensation']." This severance is included in her reported total compensation of $247,529 in calendar year 2016, according to Part II.

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