Children's Health Fund

According to its IRS tax Form 990 for its fiscal year ended December 31, 2023, The Children's Health Fund reported on its balance sheet a negative net fund balance of $(994,551). It reported that its total expenses exceeded its total revenue by $1,931,327 and $2,671,343 in 2023 and 2022, respectively. (IRS Form 990, Part I, Summary)

According to The Children's Health Fund audit of December 31, 2023 (Independent Auditors' Report, Report on the Audit of the Financial Statements, Substantial Doubt about the Organization's Ability to Continue as a Going Concern):

"The accompanying financial statements have been prepared assuming that The Children's Health Fund will continue as a going concern. As discussed in Note 3 to the financial statements, The Children's Health Fund has experienced declining contributions and excesses of expenses over revenues in recent years and there is substantial doubt about The Children's Health Fund's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding those matters are also described in Note 3..."

According to The Children's Health Fund audit of December 31, 2023 (Audit Note 3, Management's Plans):

"Management of CHF recognized systemic finance concerns within the organization and has taken the following significant steps:

• Change in executive and finance leadership. CHF's current president and CEO joined the organization in September 2021. The controller and accounting consultants were relieved from duty in April 2023; new finance staff and consultants have been engaged.

• Conducted an analysis of CHF's accounting practices and reconciled financial records to address inconsistencies and set standards. 

• Management is in the process of negotiating or re-negotiating grant payment terms and expects to pay grants out over the next 6 years.

• Implemented new policies to ensure timely subgrant payment moving forward.

• Refocused fundraising strategies to seek more unrestricted funding for CHF's central office work and general operating support. Diversified revenue streams, including identifying earned income opportunities that will go into effect in 2024.

• Reduced CHF's overhead and central office expenses by nearly 36% since 2021. This was achieved through several efforts:

• Moved office space and reduced rent and utility expenses from $708K in 2020 to $147K in 2023.

• Conducted reductions in force (RIF) in 2022 and 2023 to meet budget goals.

• Reduced spending across the organization. 

Of additional note, CHF received payment from the IRS in 2024 of $520,908 for the Employee Retention Tax Credits recognized in 2021 and included in contribution[s] receivable at December 31, 2023."

According to The Children's Health Fund audit of December 31, 2023 (Note 9, Concentrations):

"In 2023, approximately 14% of total contributions was from one donor..." 

According to the Children's Health Fund (CHF) tax filing for the fiscal year ended December 31, 2023, CHF reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"Hudu Ahmed, Controller, received a $24,482 severance payment."

[Hudu Ahmed had reported total compensation of $82,428 in 2023 (IRS Form 990, Part VII, Section A)]. 

CHF reports providing "bonus & incentive compensation" during 2023 to two individuals. Arturo Brito, President & CEO, received $35,000 of bonus and incentive compensation, with a total reported compensation of $422,605, and Shay Gines, Chief of Staff, received $8,233 of bonus and incentive compensation, with a total reported compensation of $191,994. 

According to The Children's Health Fund 2023 tax filing, the Fund reports re: the existence of a family relationship among officers, directors, trustees, or key employees, a "familial relationship" between Jane Pauley and Garry Trudeau (IRS Form 990, Schedule O re: Form 990, Part VI, line 2).

Jane Pauley is reported as Advisory Board Chair and Garry Trudeau is reported as Board Member (IRS Form 990, Part VII, Section A). The Fund reports having 10 voting members on its governing body at the end of 2023, with all voting members reported as independent (IRS Form 990, Part VI, lines 1a & 1b).