CharityWatch has assigned American Breast Cancer Foundation (ABCF) a "?" rating for its fiscal year ended 03/31/2020 based on our analysis of its audited financial statements and IRS Form 990. The face value of ABCF's statement of functional expenses reporting (exclusive of 990 line 11f, Investment management fees) reflects a 66% program percentage. Based on CharityWatch's rating analyses for ABCF dating back to its fiscal year ended 03/31/2004, ABCF's annual program percentage has never exceeded 49%, and its letter grade ratings have either been a "D" or an "F" on our "A+" to "F" scale since that time for the fiscal years rated.
CharityWatch contacted ABCF via email on 06/7/2021 and via email and U.S. mail on 06/22/2021 to request an explanation for the significant variances in its reported financial efficiency. Specifically, we asked the following:
1. Please provide a description of changes in operations that resulted in the reported improvement in ABCF's financial efficiency for fiscal 2020 relative to its historical reporting.
2. In fiscal 2017, ABCF allocated 37% of its Form 990, Part IX, line 5 salary expenses to program. In fiscal 2020 the amount allocated to program was 80%. Please describe what caused these changes in how officers, directors, trustees, and key employees spent their time on program activities as compared to management and fundraising activities from fiscal 2017 to fiscal 2020.
3. We observed in ABCF's Form 990 reporting that the charity's board [of directors] has expanded significantly in 2020 as compared to many prior years. We invite you to provide additional details about what motivated this expansion and describe any improvements your organization has implemented related to its governance.
CharityWatch's motivation for asking these questions is to attempt to discern whether ABCF's reported financial efficiency improvement in fiscal 2020 is the result of significant operational changes or simply the result of changes to how it is estimating and reporting its financial activities. As of 07/15/2021, ABCF has not responded to CharityWatch's questions. Should ABCF respond in the future, CharityWatch will evaluate the information we receive and reassess our "?" rating of the charity at that time.
CharityWatch's most recent letter grade rating for American Breast Cancer Foundation was a "D" based on our determination that ABCF spent 41% of its cash budget on programs and approximately $33 to raise each $100 in cash support in the fiscal year ended 03/31/2017.