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Top Rated

American Lung Association

CharityWatch rating issued
August 2024

Top-Rated Charity
B+
CharityWatch Rating
Our independent rating based
on a number of factors.
 
79%
Program Percentage
Amount spent on programs
relative to overhead.
 
$29
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

American Lung Association
55 W Wacker Drive
Suite 1150
Chicago, IL 60601

Other Names

None

Tax Status

501(c)3

Website

www.lung.org

Stated Mission

To save lives by improving lung health and preventing lung disease, through research, education and advocacy.

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Data based on Fiscal Year Ended 06/30/2023

Program Percentage: 79%

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

$113,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $29

How many dollars American Lung Association spends on fundraising to raise each $100 of contributions.

$68,000,000

Calculated Total Contributions

(rounded)

Joint Costs

American Lung 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
86% $18
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

25% to 49%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
American Lung Association IRS Form 990 13-1632524
American Lung Association Audited Financial Statements 13-1632524
Entity: American Lung Association
Document Type: IRS Form 990
Tax ID: 13-1632524
Entity: American Lung Association
Document Type: Audited Financial Statements
Tax ID: 13-1632524

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?
 
American Lung Association
meets governance benchmarks.
 
American Lung 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 Harold Wimmer President / CEO $655,327
2 Laura Scott Chief Financial Officer $328,349
3 Jeff Seyler Chief Field Officer $325,779
1
Name: Harold Wimmer
Title: President / CEO
Compensation: $655,327
2
Name: Laura Scott
Title: Chief Financial Officer
Compensation: $328,349
3
Name: Jeff Seyler
Title: Chief Field Officer
Compensation: $325,779

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.

According to the American Lung Association audit of June 30, 2023 (Note 2 re: Contributed Media, Services and Materials), the Association reports receiving in-kind contributions in fiscal 2023 on which it placed a total value of $68,379,479, including $68,080,550 in in-kind "billboard, print, and TV and radio advertisement space."

[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 American Lung Association audit of June 30, 2023 (Note 15, Commitments and Contingencies):

"During fiscal year 2019, the Association was notified that Breathe California of Los Angeles County (a California not-for-profit organization) appealed a prior court ruling and Consent Judgment regarding ownership of bequests and gifts. As a result of the appeal, the First Appellate District court reversed the trial court's order as to the interpretation of the Consent Judgment and remanded for a determination as to whether this reversal has any effect on the initial Consent Judgment ruling regarding payment and ownership of bequests and gifts.

Breathe California of Los Angeles County is seeking $1,500,000 of bequests and gift income, including interest, from the Association related to prior year bequests and gifts received by the Association and determined by the Consent Judgment to belong to the Association. Breathe California of Los Angeles County is also seeking collection of pro bono attorney fees from the Association.

On August 7, 2019, a three-day trial commenced to determine the issue. As of June 30, 2022, the matter was being appealed by Breathe California of Los Angeles. The Association had accrued a liability for the $1,500,000 claim for bequest and gift income and interest, which was included in the Accounts payable - general line on the Statement of Financial Position. The Association has not accrued for potential attorney fees as the amount was unknown. 

During 2023, the appeal was settled in favor of Breathe California of Los Angeles County and the Association was ordered to pay an additional $609,003 as part of the settlement, which increased the outstanding payable on the Statement of Financial Position. The settlement of $2,109,003 was paid subsequent to year end. As a result of this settlement, prior year donor restricted endowment gifts of $406,270 were released to be transferred to Breathe California of Los Angeles County."


According to the American Lung Association audit of June 30, 2023 (Note 16, Paycheck Protection Program):

"The Association applied for and was approved on March 31, 2021 for a second round loan under the Paycheck Protection Program (PPP) of the Consolidated Appropriations Act. The PPP Round 2 was a low-interest Small Business Administration (SBA) loan, which could be used to fund payroll costs, including benefits, mortgage interest, rent, worker protection costs related to COVID-19 and certain other specified expenses for operations. The Association was approved for a loan under this program in the amount of $8,028,215 with an interest rate of 1% and a maturity date of March 31, 2026. 

As of June 30, 2021, loan forgiveness requirements had not been met; however, management anticipated meeting the requirements of forgiveness within the eligible timeframe and under the requirements of the program. Therefore, the Association considered the loan to be substantively a conditional contribution by the SBA. Under the provisions of ASC 958-605, a conditional contribution is recognized as revenue when the condition or conditions are substantially met. 

As of June 30, 2021, the conditions of the program had not been met and the Association had classified the amount as a refundable grant advance on the Statement of Financial Position. 

During 2022, the Association received notification of full forgiveness from the SBA and thus has recognized this conditional contribution within government grants on the Statement of Activities."

According to the American Lung Association (ALA) tax filing for the fiscal year ended June 30, 2023, ALA reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding supplemental nonqualified retirement plans to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4b):

"Harold Wimmer received $33,045 from a 457(f) plan."


ALA reports providing "bonus & incentive compensation" during 2022 to fifteen individuals. Harold Wimmer, President & CEO, received $50,000 of bonus and incentive compensation, with a total reported compensation of $655,327. The remaining fourteen individuals received $3,947 to $24,000 with total compensation ranging from $204,326 to $328,349. 


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