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Alzheimer's Association

CharityWatch report issued
June 2020

Top-Rated Charity
B+
CharityWatch Grade
Our independent grade based
on a number of factors.
 
74%
Program Percentage
Amount spent on programs
relative to overhead.
 
$24
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Alzheimer's Association
225 N. Michigan Ave.
17th Floor
Chicago, IL 60601-7633

Other Names

Alzheimer's Disease and Related Disorders Association

Tax Status

501(c)3

Website

www.alz.org

Stated Mission

To eliminate Alzheimer's disease through the advancement of research; provide & enhance care & support for all affected; & reduce the risk of dementia through the promotion of brain health.

View similar charities
Data based on Fiscal Year Ended 06/30/2019

Program Percentage: 74%

The percentage of Alzheimer's Association's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$386,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $24

How many dollars Alzheimer's Association spends on fundraising to raise each $100 of contributions.

$340,000,000

Calculated Total Contributions

(rounded)

Joint Costs

Alzheimer's Association's rating was adjusted for Joint Costs. If you are a donor who considers direct mail, telemarketing, and other Joint Cost solicitations to be true charitable programs, the below efficiency ratios, which were not adjusted for joint costs, may better reflect your goals.

Program % Cost to Raise $100
76% $21
Accounting rules allow charities to report some telemarketing, direct mail, and other solicitation costs as Program expenses. CharityWatch believes that most donors do not consider a charity's solicitation activities to be the Programs they are intending to support with their donations. We therefore adjust such expenses out of a charity's reported Program expense and add it to Fundraising expense prior to calculating its rating.

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
Alzheimer's Association Consolidated Audited Financial Statements Multiple
Alzheimer's Disease & Related Disorders Association IRS Form 990 13-3039601
Entity: Alzheimer's Association
Document Type: Consolidated Audited Financial Statements
Tax ID: Multiple
Entity: Alzheimer's Disease & Related Disorders Association
Document Type: IRS Form 990
Tax ID: 13-3039601

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
Alzheimer's Association
meets governance benchmarks.
 
Alzheimer's Association
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy

  Name Title Compensation
1 Harry Johns President/CEO $1,015,015
2 Richard Hovland COO/CFO $650,856
3 Robert Egge Chief Public Policy Officer $574,617
1
Name: Harry Johns
Title: President/CEO
Compensation: $1,015,015
2
Name: Richard Hovland
Title: COO/CFO
Compensation: $650,856
3
Name: Robert Egge
Title: Chief Public Policy Officer
Compensation: $574,617

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.

CharityWatch's rating of the Alzheimer's Association for the fiscal year ended 6/30/2019 is for the 501(c)(3) public charity, Alzheimer's Disease and Related Disorders Association (tax ID #13-3039601).

According to the Alzheimer's Association consolidated audit of June 30, 2019 (Note A, Organization and Basis of Consolidation), "The Association oversees the operations and activities for 77 chapters to facilitate strategic alignment, deliver on the overarching Association-wide strategic objectives and priority activities, and to ensure coverage for all geographic territories."


According to the Alzheimer's Association consolidated audit of June 30, 2018 (Note A, Organization and Basis of Consolidation):

"Effective July 1, 2016, one chapter dissolved and 46 chapters merged with the Association to create a united Alzheimer's Association. Total assets acquired from the 47 chapters were approximately $152,004,000 and net assets acquired were approximately $130,859,000..."

According to the Alzheimer's Association consolidated audit of June 30, 2019 (Note L, Gifts-In-Kind and Contributed Services):

"...During 2019, the Association received approximately $4,675,000 in gifts-in-kind and contributed services. Of these non-monetary transactions, the Association recorded services valued at approximately $3,070,000 as program expense for the medical science research grants review process and the Alzheimer's Association International Conference and gifts-in-kind of approximately $1,605,000 as fundraising expenses..."


[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 on the Our Process page.]

According to the Alzheimer's Association tax filing for the fiscal year-ended June 30, 2019, the Association reports for Business Transactions Involving Interested Persons, a transaction in the amount of $132,276. The reported description of the transaction is: "Alzheimer's Association had a business transaction with Tandem Solutions, which Joseph McCafferty, a former board member of Alzheimer's Association has a business relationship. Joseph McCafferty resigned from the Alzheimer's Association board on July 7, 2016. Following his resignation, Mr. McCafferty's company, Tandem Solutions, was engaged as an independent contractor by the Association. The business transaction between the Association and Tandem Solutions was an arm's length transaction" (IRS Form 990, Schedule L, Parts IV & V).

According to the Alzheimer's Association tax filing for the fiscal year-ended June 30, 2019, the Association reports re: Supplemental Compensation Information: Bonus and Incentive Compensation (IRS Form 990, Schedule J, Part III):

"Harry Johns received performance based incentive compensation of $181,748 based on his successful achievement of specific goals, which were developed, reviewed, and approved by the compensation committee of the board of directors in consultation with the board's independent third-party compensation consultants. This performance based incentive compensation was earned for performance in fiscal year 2018 and was paid in calendar year 2018.

"Richard Hovland, Robert Egge, Maria Carrillo, Donna McCullough, Glenda Berry, Kenann Cassidy, and Christine Foh received performance based incentives earned in fiscal year 2018 and paid in calendar year 2018."


The Association reports Harry Johns as President & CEO, with total compensation in calendar year 2018 of $1,015,015 (IRS Form 990, Schedule J, Part II). [His compensation of $1,015,015 ranked #19 on CharityWatch's Top 25 Compensation Packages list (as of June 2020).]

The "Bonus & incentive compensation" amounts for the other seven individuals cited by the Association in Schedule J, Part III ranged from $125,078 to $32,310, with associated reported total compensation in calendar year 2018 ranging from $650,856 to $294,045 (IRS Form 990, Schedule J, Part II).


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