CharityWatch's rating of Center for Biological Diversity (the Center) is for the 501(c)(3) public charity (tax ID #27-3943866). The rating does not include the financial activities of the Center Action Fund (CAF), the Center's commonly managed affiliate, which is organized as a 501(c)(4) tax-exempt, social welfare organization. CAF is not rated separately by CharityWatch at this time given its small size, with total contributions of less than $200,000 in 2020, including a $75,000 grant from the Center, according to the Center's audited Combining Statement of Activities for the year ended December 31, 2020 and 2020 IRS Form 990 tax filing.
CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when they are included together in a combined audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page.
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According to the Center for Biological Diversity combined audit of December 31, 2020 (Note 13, Forgivable Loan – Paycheck Protection Program):
"On April 29, 2020, the Center was granted a loan from Beneficial State Bank ('Lender') in the amount of $2,907,079 pursuant to the Paycheck Protection Program ('PPP') under the federal Cares [sic] Act. The PPP loan, which is in the form of a note dated April 29, 2020, matures on April 29, 2022, bears interest at a rate of 1.0% per annum, and is payable monthly beginning on November 29, 2020. ... The Company may be eligible for forgiveness of all or a portion of the loan amount, including accrued interest on the forgiven portion, by providing evidence that the loan proceeds were used to fund eligible costs, during either an eight or twenty-four week period, and that additional criteria for forgiveness have been met... "The Center is accounting for the proceeds as a conditional contribution... Under this guidance, the loan forgiveness is recognized as contribution revenue as the conditions of forgiveness are substantially met. As of December 31, 2020, the Center has expended 100% of the proceeds for eligible expenses during the covered period of the loan and fulfilled the additional forgiveness criteria under the Program... The Center submitted the loan forgiveness application to the Lender on March 22, 2020. As a result, the Center has recognized grant revenue in the amount of $2,907,079 for the year ended December 31, 2020." |
