According to the Cancer Recovery Foundation International audit of December 31, 2020 (Note L, Going Concern): "During 2019, the primary fundraiser of the Organization discontinued operations. During the fourth quarter of 2019, the Organization executed a contract with a new fundraising company with which management had prior business dealings and a level of trust. "...[T]he Organization showed a decrease in net assets of $145,134 and $300,708 during the years ended December 31, 2020 and 2019, respectively. As of that date, the Organization's current liabilities exceeded its current assets and its total liabilities exceeded its total assets by $158,959 and $13,825, respectively. Those factors, as well as the uncertain conditions that the Organization faces regarding its fundraising capabilities create uncertainty about the Organization's ability to continue as a going concern. "The board of the Organization evaluated these conditions in 2019 and again in 2020 and has developed a plan to reverse the negative cash flow experienced in 2019. In 2020, the Organization implemented the plan which called for significant reductions in costs including wages, rent and other operating expenses. Most importantly, the plan, developed in conjunction with the new fundraising company, outlines a plan to generate income at a level that will allow the Organization to continue to fund its programs in the future. Management believes this pan will successfully lead the Organization back to financial stability." |
According to the Cancer Recovery Foundation International audit of December 31, 2020 (Note A re: Nature of Activities): "Effective January 1, 2016, Cancer Recovery Foundation International, Inc. (CRFI), the 'Organization', was acquired by the Cancer Recovery Foundation of America (CRFA), with operations continuing under the name the Cancer Recovery Foundation International, Inc. The Organization is a 501(c)(3) non-profit organization." [...] "In May 2009, CRFI entered into various affiliation agreements with organizations to provide certain program, administrative, and fundraising support. Prior to January 1, 2019, all affiliation agreements had been cancelled. However, Cancer Recovery et Resilience (CRF – France) and Stiftung Krebsbekaempfung (CRF – Germany) required additional time to complete the liquidation process. As of December 31, 2020, CRF France had been liquidated and CRF Germany was in the final stages of liquidation." |
According to the Cancer Recovery Foundation International audit of December 31, 2020 (Note H, Concentrations): "The Organization received 99% of cash contributions for the years ended December 31, 2020 and 2019, from four fundraising agencies. Total cash contributions received from these agencies was $961,205 and $2,591,792, respectively. Two of these relationships ended in 2019 and one in 2020. One fundraiser is still active. Management believes new fundraisers can be found to replace this support if needed."
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According to the Cancer Recovery Foundation International audit of December 31, 2020 (Note G, Note Payable): "On April 25, 2020, the Organization received loan proceeds of $55,140 (the 'PPP Loan') under the Paycheck Protection Program ('PPP' under the Coronavirus Aid, Relief and Economic Security Act). The PPP Loan is evidenced by a promissory note (the 'Note'), between the Organization and Small Business Administration (the 'Lender') through a local bank. The Note has a twenty-four month term, bears interest at the rate of 1% per annum, and may be prepaid at any time without payment of any premium. Per the terms of the loan agreement, principal or interest were deferred during the year ended December 30, 2020. "The principal and accrued interest under the Note is forgivable after twenty-four weeks if the Organization uses the PPP Loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and otherwise complies with PPP requirements. In order to obtain forgiveness of the PPP Loan, the Organization must submit a request and provide satisfactory documentation regarding its compliance with applicable requirements. "In the subsequent year, $50,954 on the Note and the associated interest expense was forgiven and the Organization recognized a gain on forgiveness of the loan. The Organization must repay any unforgiven principal of the Note ($4,186), with interest, on a monthly basis following the deferral Period." |
According to the Cancer Recovery Foundation International audit of December 31, 2020 (Note K, Risk and Uncertainties): "On January 30, 2020, the World Health Organization declared the coronavirus outbreak a 'Public Health Emergency of International Con[cern]' and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Organization operates. The long-term effects of this global pandemic are unknown but may have significant consequences to the Organization's fundraising efforts and the ability to fund its programs in the future." |
