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Top Rated

City of Hope & Affiliates

CharityWatch report issued
May 2022

Top-Rated Charity
A-
CharityWatch Grade
Our independent grade based
on a number of factors.
 
77%
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.

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Data based on Fiscal Year Ended 09/30/2020

Program Percentage: 77%

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

$2,354,000,000

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.

$194,000,000

Calculated Total Contributions

(rounded)

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
City of Hope Audited Consolidated Financial Statements multiple
City of Hope Medical Foundation IRS Form 990 27-4803222
Translational Genomics Research Institute Foundation IRS Form 990 33-1092191
Translational Genomics Research Institute IRS Form 990 75-3065445
City of Hope IRS Form 990 95-3435919
Entity: City of Hope
Document Type: Audited Consolidated Financial Statements
Tax ID: multiple
Entity: City of Hope Medical Foundation
Document Type: IRS Form 990
Tax ID: 27-4803222
Entity: Translational Genomics Research Institute Foundation
Document Type: IRS Form 990
Tax ID: 33-1092191
Entity: Translational Genomics Research Institute
Document Type: IRS Form 990
Tax ID: 75-3065445
Entity: City of Hope
Document Type: IRS Form 990
Tax ID: 95-3435919

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 $3,827,671
  Note: Includes $2,116,992 bonus & incentive compensation.
2 Harlan Levine, M.D. President, Strategy & Business Ventures $1,977,253
3 Steven T. Rosen, M.D. Provost, Cancer Center Director $1,845,308
1
Name: Robert W. Stone
Title: President/CEO
Compensation: $3,827,671
Note: Includes $2,116,992 bonus & incentive compensation.
2
Name: Harlan Levine, M.D.
Title: President, Strategy & Business Ventures
Compensation: $1,977,253
3
Name: Steven T. Rosen, M.D.
Title: Provost, Cancer Center Director
Compensation: $1,845,308

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 entities consolidated in the City of Hope audited financial statements for the fiscal year ended September 30, 2020. Included among the consolidated entities are City of Hope National Medical Center, City of Hope Medical Foundation, Beckman Research Institute of the City of Hope, The Translational Genomics Research Institute & its Affiliates, and City of Hope Auxiliaries. All significant intercompany accounts and transactions have been eliminated in the audited consolidated financial statements.


On February 2, 2022, City of Hope announced the completion of its acquisition of Cancer Treatment Centers of America (CTCA), a network of oncology hospitals and outpatient care centers across the United States. According to the press release, "With the completion of this acquisition, City of Hope intends to begin the process of converting CTCA to a nonprofit organization."

CharityWatch's rating of City of Hope & Affiliates is based on the fiscal year ended September 30, 2020, which predates the acquisition of Cancer Treatment Centers of America. Therefore, the rating does not include the financial activity of Cancer Treatment Centers of America.

According to the City of Hope consolidated audit of September 30, 2020 (Note 11, Commitments and Contingencies, Capital Commitments (Unaudited)):

"As of September 30, 2020, City of Hope has committed to spend approximately $183,871,000 through 2021 and beyond for building renovations, multiple campus facility renovations, and various information technology projects."

According to the City of Hope consolidated audit of September 30, 2020 (Note 2 re: Royalty and Licensing Revenue):

"City of Hope receives royalties from Genentech based on sales of its own drugs, as well as from royalties and other amounts paid by its licensees. During the years ended September 30, 2020 and 2019, City of Hope recognized royalty and licensing revenue totaling $165,523,000 and $384,514,000, 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 and covered by the Cabilly patents. The Cabilly patents...expired during the first quarter of fiscal year 2019, with some royalty revenue anticipated to continue into fiscal year 2021."

[...]

"Royalty revenues are expected to continue to decline over the coming year due to the expiration of the Cabilly patents in December 2018, however the ultimate date of when the royalties from the Cabilly patents will completely cease cannot be determined at this time."

According to the City of Hope consolidated audit of September 30, 2020 (Note 12, COVID-19 Pandemic):

"In March 2020, the World Health Organization declared the global novel coronavirus disease (COVID-19) a pandemic. Following guidelines from federal, state and local governments, City of Hope decided to postpone elective procedures, however, as a medical center primarily treating cancer, City of Hope has relatively fewer medical procedures that could be deferred. City of Hope continued to provide services for those patients whose treatment protocol could not be interrupted.

"On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted in response to the COVID-19 emergency.

"From April 2020 through June 2020 City of Hope received $29,187,000 from the Department of Health and Human Services from the provider relief funds created under the CARES Act. The payments are not subject to repayment, provided City of Hope is able to comply with the terms and conditions of the funding, including demonstrating that the distributions received have been used for healthcare-related expenses attributable to coronavirus and funds not fully expended on healthcare-related expenses are then applied to lost revenues, represented as a negative change in year-over-year net patient care operating income, net of healthcare-related expenses attributed to coronavirus. ...City of Hope believes the applicable terms and conditions have been met to retain certain of the funds as of September 30, 2020, and therefore, payments of $23,639,000 have been recognized as other revenue in the [audited] consolidated statements of activities. The remaining $5,548,000 of funds has been record in contract liabilities in the accompanying consolidated statements of financial position as of September 30, 2020. City of Hope will continue to monitor the terms and conditions of the CARES Act funding and the impact of COVID-19 on revenues and expenses. If City of Hope is unable to comply with future terms and conditions, the ability to retain some or all of the distributions received may be impacted.

"The Center's for Medicare and Medicaid Services (CMS) expanded its Accelerated and Advance Payment Program to provide financial relief to Medicare providers that treat patients during the pandemic. The expansion of this program is limited to the duration of the pandemic and provides City of Hope with advance funding for future Medicare claims. As of September 30, 2020, City of Hope has received $86,173,000 in advance payments that will be applied toward future Medicare claims, all of which has been recorded as contract liabilities in the [audited] consolidated statements of financial position pending future Medicare claim submissions as of September 30, 2020. The advance payments were expected to be recouped by Medicare from remittances starting 120 days after receipt of the payments. ... As of October 1, 2020, the terms and conditions have been revised, whereby recoupment is extended to 29 months from the date of receipt, at which time the remaining unpaid amounts are subject to interest of 4%.

"City of Hope has also availed itself of the payroll tax deferral of the employer's share of Social Security tax which represents 6.2% of wages up to the current social security wage base... The deferral is in effect for employer payroll taxes incurred between March 27, 2020 (the date of the enactment) and December 31, 2020. City of Hope has until December 31, 2021, to pay 50% of the deferred amount and the remainder is due by December 31, 2022. This deferral provides additional current liquidity to City of Hope. As of September 30, 2020, City of Hope has deferred $17,300,000 of payroll taxes...

"City of Hope began experiencing gradual improvement in patient volumes in May and June as the State eased stay -at-home restrictions and announced plans to resume delayed health care services that could be deferred while City of Hope prepared for the COVID-19 surge. COVID-19 could still negatively affect the operations and financial results of City of Hope, as the duration and extent of the pandemic is unknown."

According to the City of Hope consolidated audit of September 30, 2020 (Note 13, Subsequent Events):

"On October 16, 2020, City of Hope received additional Accelerated and Advance Payment Program funds of $65,500,000.

"On October 22, 2020 and November 2, 2020, CMS [Centers for Medicare and Medicaid Services] provided further revisions to its criteria for how the provider relief funds will be applied. Under the most current November 2, 2020 guidance, provider relief funds are applied first to healthcare-related expenses attributable to coronavirus, with any funding that remains being applied to lost patient care revenues up to the amount of the difference between the calendar year ended 2019 and 2020 actual patient care revenue. Based on this current November 2, 2020 guidance, City of Hope's ability to qualify for provider relief funds may be limited and these constraints may negatively impact the financial performance for fiscal year 2021.

"[I]n December 2020, City of Hope received additional provider relief funds from Phase 3 of the program totaling $18,784,000. City of Hope will assess its ability to comply with the terms and conditions under the November 2, 2020 guidance described above.

"City of Hope has evaluated subsequent events occurring between September 30, 2020 and December 18, 2020, the date these [audited] consolidated financial statements were issued."

According to The Translational Genomics Research Institute (TGen) tax filing for the fiscal year ended September 30, 2020, TGen reports for Transactions with Interested Persons a loan in the amount of $250,000 from the organization to Kendall Jensen, employee. The reported purpose of the loan is "relocation assist."; there is a written agreement for the loan, it was approved "by board or committee," and it is not in default. The reported balance due on the loan at fiscal year-end is $125,000 (IRS Form 990, Schedule L, Part II).

Also according to the TGen tax filing for the fiscal year ended September 30, 2020, TGen reports for Business Transactions Involving Interested Persons a transaction with "Tech66 LLC William Burleson," spouse of officer, in the amount of $200,852. The reported description of the transaction is "consulting fees" (IRS Form 990, Schedule L, Part IV).

According to the City of Hope (COH) tax filing for the fiscal year ended September 30, 2020, 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 three (3) 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 50% and the individual objectives are weighted at 50%. The AIP is under the control of and administered by the independent directors serving on the executive compensation and governance committee...

"The AIP incentive compensation earned for fiscal year 2019 was paid in calendar year 2019 and these amounts have been reported in Schedule J, Part II, column B(ii) ['Bonus & incentive compensation'].

"The City of Hope also has an executive long-term incentive plan (LTI) for certain executives 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 2019, including $2,116,992 paid to Robert W. Stone, President & CEO. His reported total compensation in 2019 is $3,827,671. The reported "Bonus & incentive compensation" payments to the remaining 13 individuals in calendar year 2019 ranged from $867,889 to $105,128, with associated reported total compensation ranging from $1,977,253 to $503,806. The "Bonus & incentive compensation" payments and other compensation totals reported by COH on Schedule J, Part II also include amounts from related organizations (IRS Form 990, Schedule J, Part II).


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