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Alzheimer's Association (National Office)

CharityWatch report issued
July 2017

Top-Rated Charity
B+
CharityWatch Grade
Our independent grade based
on a number of factors.
 
73%
Program Percentage
Amount spent on programs
relative to overhead.
 
$22
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Alzheimer's Association (National Office)
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 06/30/2016

Program Percentage: 73%

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

$165,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $22

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

$156,000,000

Calculated Total Contributions

(rounded)

Joint Costs

Alzheimer's Association (National Office)'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
78% $16
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 IRS Form 990 13-3039601
Alzheimer's Association Audited Consolidated Financial Statements Multiple
Entity: Alzheimer's Association
Document Type: IRS Form 990
Tax ID: 13-3039601
Entity: Alzheimer's Association
Document Type: Audited Consolidated Financial Statements
Tax ID: Multiple

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 (National Office)
meets governance benchmarks.
 
Alzheimer's Association (National Office)
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 $1,119,540
2 Angela Geiger Past Chief Strategy Officer $651,623
3 Richard Hovland COO/CFO $578,739
1
Name: Harry Johns
Title: President/CEO
Compensation: $1,119,540
2
Name: Angela Geiger
Title: Past Chief Strategy Officer
Compensation: $651,623
3
Name: Richard Hovland
Title: COO/CFO
Compensation: $578,739

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 6/30/16 includes the financial activities of 34 National Chapters; it does not include the financial activities of the 47 local chapters.

As noted in the Alzheimer's Association consolidated audit of June 30, 2016 (Note A, Organization and Basis of Consolidation):

"...the Association oversees the operations and activities for 34 National Chapters to facilitate strategic alignment, deliver on the overarching Association-wide strategic objectives and priority activities, and to ensure coverage for all geographic territories. The National Chapters' activity is included in the consolidated financial statements..."

"There were 47 local chapters supported by the Association as of June 30, 2106. The accounts and operations of the local chapters are appropriately not included the Association's consolidated financial statements..."


Also according to the Alzheimer's Association consolidated audit of June 30, 2016 (Note V, Subsequent Events):

"Effective July 1, 2016, the Association combined with the remaining 47 local chapters to create a united Alzheimer's Association. Total assets from the 47 chapters are approximately $157,000,000 and net assets are approximately $135,000,000."
According to the Alzheimer's Association consolidated audit of June 30, 2016 (Note L, Gifts-In-Kind and Contributed Services):

"...During 2016, the Association received approximately $3,806,000 in gifts-in-kind and contributed services. Of these non-monetary transactions, the Association recorded services valued at approximately $3,306,000 as program expense for the medical science research grants review process and the Alzheimer's Association International Conference and gift-in-kind of approximately $500,000 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, 2016, the Association reports for Business Transactions Involving Interested Persons a transaction in the amount of $462,830, with the description: "Joseph McCafferty, board member of Alzheimer's Association, resigned on July 7th, 2016. Following his resignation, Mr. McCafferty's company, Tandem Solutions, was engaged as an independent contractor" (IRS Form 990, Schedule L, Parts IV & V).
According to the Alzheimer's Association tax filing for the fiscal year-ended June 30, 2016 (IRS Form 990, Schedule J, Part III, Supplemental Compensation Information):

"Harry Johns received performance based incentive compensation of $139,260 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 2015 and was paid in calendar year 2015."

Harry Johns is the President & CEO of Alzheimer's Association, and his total reported compensation, including the $139,260, for the calendar year 2015 was $1,119,540 (IRS Form 990, Schedule J, Part II). His compensation of $1,119,540 ranked #14 on CharityWatch's Top 25 Compensation Packages list (as of July 2017).

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