Celebrating 25+ years of helping you give wisely
America's most independent,
assertive charity watchdog
Top Rated

City of Hope & Affiliates

CharityWatch report issued
May 2019

Top-Rated Charity
A-
CharityWatch Grade
Our independent grade based
on a number of factors.
 
78%
Program Percentage
Amount spent on programs
relative to overhead.
 
$18
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

City of Hope & Affiliates
1500 East Duarte Road
Duarte, CA 91010

Other Names

Beckman Research Institute of City of Hope
City of Hope Medical Foundation
City of Hope National Medical Center
Translational Genomics Research Institute

Tax Status

501(c)3

Stated Mission

To raise funds to support and transform the future of health care by turning science into practical benefit, and hope for cures into reality; provides support for advancement of treatments to persons suffering from cancer, diabetes, and other life-threatening diseases.

View similar charities
Charity  
ALS Association (National Office)  
American Brain Tumor Association  
American Diabetes Association  
American Heart Association  
American Kidney Fund  
American Leprosy Missions  
American Liver Foundation  
American Lung Association (National Office)  
American Parkinson Disease Association  
Arthritis Foundation  
BrightFocus Foundation  
Crohn's & Colitis Foundation  
Cystic Fibrosis Foundation  
Defeat Diabetes Foundation  
Diabetes Action Research and Education Foundation  
Diabetes Research & Wellness Foundation  
Diabetes Research Institute Foundation  
Easterseals (National Office)  
Epilepsy Foundation & Epilepsy Research Foundation  
Hearing Health Foundation  
Heart Center of America  
Huntington's Disease Society of America  
JDRF International  
Lupus Foundation of America (National Office)  
Lupus Research Alliance  
March of Dimes  
MedicAlert Foundation United States  
Mercy Ships & Affiliates  
Michael J. Fox Foundation for Parkinson's Research  
Miracle Flights  
MiracleFeet  
Movember Foundation  
Multiple Sclerosis Association of America & Affiliates  
Multiple Sclerosis Foundation  
Muscular Dystrophy Association  
National Caregiving Foundation  
National Emergency Medicine Association (DISSOLVED)  
National Hemophilia Foundation (National Office)  
National Jewish Health  
National Kidney Foundation  
National Multiple Sclerosis Society (National Office)  
National Osteoporosis Foundation  
National Psoriasis Foundation  
Operation Smile  
Parkinson Research Foundation  
Parkinson's Foundation  
Partnership for a Healthier America  
PKD Foundation  
Project Cure  
Salk Institute for Biological Studies  
Shriners Hospitals for Children  
Smile Train  
United Cerebral Palsy (National Office)  
Will Rogers Motion Picture Pioneers Foundation  
WonderWork  
Data based on Fiscal Year Ended 09/30/2017

Program Percentage: 78%

The percentage of City of Hope & Affiliates's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$1,761,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $18

How many dollars City of Hope & Affiliates spends on fundraising to raise each $100 of contributions.

$176,000,000

Calculated Total Contributions

(rounded)

Joint Costs

City of Hope & Affiliates' 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
79% $17
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

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
Beckman Research Institute of the City of Hope IRS Form 990 95-3432210
City of Hope National Medical Center IRS Form 990 95-1683875
City of Hope Medical Foundation IRS Form 990 27-4803222
The Translational Genomics Research Institute IRS Form 990 75-3065445
City of Hope Group Return IRS Form 990 02-0765554
City of Hope IRS Form 990 95-3435919
City of Hope & Affiliates Audited Consolidated Financial Statements Multiple
Entity: Beckman Research Institute of the City of Hope
Document Type: IRS Form 990
Tax ID: 95-3432210
Entity: City of Hope National Medical Center
Document Type: IRS Form 990
Tax ID: 95-1683875
Entity: City of Hope Medical Foundation
Document Type: IRS Form 990
Tax ID: 27-4803222
Entity: The Translational Genomics Research Institute
Document Type: IRS Form 990
Tax ID: 75-3065445
Entity: City of Hope Group Return
Document Type: IRS Form 990
Tax ID: 02-0765554
Entity: City of Hope
Document Type: IRS Form 990
Tax ID: 95-3435919
Entity: City of Hope & Affiliates
Document Type: Audited Consolidated Financial Statements
Tax ID: Multiple

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?
 
City of Hope & Affiliates
meets governance benchmarks.
 
City of Hope & Affiliates
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 Robert W. Stone President/CEO $2,246,069
  Note: Includes $1,039,014 bonus & incentive compensation.
2 Steven Terry Rosen Provost, Cancer Center Director $1,530,510
3 Harlan Levine CEO, COH Medical Foundation $1,495,529
1
Name: Robert W. Stone
Title: President/CEO
Compensation: $2,246,069
Note: Includes $1,039,014 bonus & incentive compensation.
2
Name: Steven Terry Rosen
Title: Provost, Cancer Center Director
Compensation: $1,530,510
3
Name: Harlan Levine
Title: CEO, COH Medical Foundation
Compensation: $1,495,529

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.
CharityWatch's rating of City of Hope & Affiliates includes the financial activities of the legal entities included in its audited consolidated financial statements for the fiscal year-ended 9/30/2017. These include the following public charities: (1) City of Hope (tax ID #95-3435919); (2) City of Hope National Medical Center (tax ID #95-1683875); (3) City of Hope Medical Foundation (tax ID #27-4803222); (4) Beckman Research Institute of the City of Hope (tax ID #95-3432210); (5) The Translational Genomics Research Institute (tax ID #75-3065445); and (6) the City of Hope Auxiliaries (tax ID #02-0765554). All significant intercompany accounts and transactions have been eliminated in the audited consolidated financial statements.
According to the City of Hope & Affiliates consolidated audit of September 30, 2017 (Note 7, Acquistions and Affiliations):

"Effective November 17, 2016, City of Hope and TGen [The Translational Genomics Research Institute] entered into an Affiliation Agreement (Agreement), pursuant to which City of Hope became the sole corporate member of TGen. ... [T]he Affiliation is classified as an acquisition...

"The Affiliation did not involve consideration and resulted in an excess of assets acquired over liabilities assumed which has been recorded as a contribution to City of Hope of $46,419,000..."
According to the City of Hope & Affiliates consolidated audit of September 30, 2017 (Note 9, Commitments and Contingencies, Capital Commitments (Unaudited)):

"As of September 30, 2017, the [City of Hope] Affiliates have committed to spend approximately $39,989,000 through 2018 for building renovations, multiple campus facility renovations, and various information technology projects, including a clinical information system."
According to the City of Hope & Affiliates consolidated audit of September 30, 2017 (Note 2, Royalty and Licensing Revenue):

"City of Hope and Affiliates receive royalties from Genentech based on Genentech's revenues in the previous quarter from sales of its own drugs, as well as from royalties and other amounts paid by its licensees. ... During 2017 and 2016, City of Hope and Affiliates received and recognized royalty and licensing revenue totaling $398,096,000 and $333,704,000, respectively, primarily from sales of drugs by Genentech and other licensees of monoclonal antibodies, including Rituxan, Herceptin, Avastin, Humira, and others using technology developed at the [Beckman Research] Institute..."


According to the City of Hope & Affiliates consolidated audit of September 30, 2017 (Note 9, Commitments and Contingencies, Litigation and Administrative Actions):

"City of Hope has been engaged in various proceedings involving challenges to the validity of U.S. Patent No. 6,331,415...(the Cabilly II patent) and U.S. Patent No. 7,923,221...(the Cabilly III patent...). Both Cabilly patents are co-owned by City of Hope and Genentech, and are set to expire in 2018.

"On March 3, 2016, Mylan Pharmaceuticals Inc. (Mylan) filed a petition for inter parties review (IPR) of Cabilly II.

"On July 7, 2016, Merck Sharp & Dohme Corp. (Merck) filed a lawsuit against City of Hope and Genentech in the United States District Court (USDC) challenging the validity of the Cabilly III patent and seeking a declaratory judgment that its antibody drug Keytruda...and/or its bezlotoxumab product do not infringe the patent. On the same date, Merck also challenged the patentability of the Cabilly II patent in a petition for IPR filed in the Patent Trademark Office (PTO)."

[...]

"In March 2017, a settlement was reached with Mylan, ending its challenge to the Cabilly II patent in the PTO. ... In May 2017, a settlement was reached with Merck ending Mercks' [sic] challenges to the Cabilly II patent in the PTO and to the Cabilly III patent in the USDC. City of Hope made no payment in connection with any of the settlements.

"In May 2017, a settlement was reached with Merck ending its challenges to the Cabilly II patent in the PTO and to the Cabilly III patent in the USDC. City of Hope made no payment in connection with the settlement."
According to the City of Hope & Affiliates consolidated audit of September 30, 2017 (Note 14, Subsequent Events):

"On October 6, 2017, Amgen Inc. filed a lawsuit against Genentech, Inc. and City of Hope in the USDC, seeking a declaratory judgment of patent non-infringement, invalidity and unforceability with respect to certain specified patents related to Genentech's antibody drug Avastin (collectively, the patents-in-suit). City of Hope co-owns with Genentech two of the patents-in-suit: the Cabilly II and Cabilly III patents. ... On the same date, Genentech and City of Hope filed a lawsuit against Amgen in the USDC for the District of Delaware for patent infringement, declaratory judgment and additional relief relating to the patents-in-suit. On October 18, 2017, Genentech and City of Hope filed a second lawsuit in the USDC for the District of Delaware against Amgen... The claims in the second lawsuit are in addition to those brought in the first. ... The proceedings are at a very early stage and the final outcome of the litigation cannot be determined at this time. If either the Cabilly II or Cabilly III patents is ultimately declared invalid, royalties under the two Cabilly patents could be significantly reduced or eliminated in the future, which could have a material adverse impact on the financial condition of City of Hope.

"Effective December 15, 2017, the [City of Hope Medical] Foundation entered into definitive agreements pursuant to which the Foundation will own certain freestanding radiation therapy centers in Southern California and will form a new joint venture company to manage the centers, with an expected capital commitment of approximately $45,000,000. Management expects the transaction to close by the end of the...second fiscal quarter."
According to the City of Hope (COH) tax filing for the fiscal year ended September 30, 2017, COH reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"The City of Hope's executives and some key employees are eligible to receive incentive compensation under an annual incentive plan (AIP) tied to two (2) key indicators and two or more individual objectives. The key indicators reflect key areas of strategic focus and the exempt healthcare mission of the City of Hope and Affiliates and are both financial and non-financial. The potential incentive compensation is based on a weighted average among all indicators and is paid as a percentage of each individual participant's base compensation. The key indicators are weighted at 30%, while the individual objectives are weighted at 70%. The AIP is under the control of and administered by the independent directors serving on the executive compensation and governance committee...

"The City of Hope has an executive long term incentive plan (LTI) that is designed to drive long-term organizational performance and transformation by aligning executives with the multi-year strategic plan and incentivizing them for achieving key organizational and strategic objectives and goals with three-year vesting periods. The LTI also provides a means for retaining key executive talent..."


COH reports "Bonus & incentive compensation" payments to 14 individuals in calendar year 2016 (IRS Form 990, Schedule J, Part II). The top three reported "Bonus & incentive compensation" payments, including payments from COH's related organizations, are:

(1) $1,039,014 paid to Robert W. Stone, President & CEO;
(2) $621,744 paid to Harlan Levine, Chief Executive, COH Medical Foundation; and
(3) $588,692 paid to Steven Terry Rosen, Provost, Cancer Center Director.
[See the "Salaries" section of the City of Hope & Affiliates rating for the reported total compensation paid to Robert Stone, Harlan Levine, and Steven Rosen.]

The reported "Bonus & incentive compensation" payments from COH and its related organizations to the remaining 11 individuals in calendar year 2016 ranged from $489,514 to $57,986, with associated reported total compensation ranging from $1,187,903 to $350,619.