Crohn's & Colitis Foundation

CharityWatch's rating of Crohn's & Colitis Foundation includes the financial activities of the legal entities included in its audited financial statements for the fiscal year ended 12/31/2023. According to the Crohn's & Colitis Foundation 2023 audit (Note 1 re: Organization), the audited financial statements include the financial activities of the Foundation's national office (headquartered in New York City) and its 35 chapters across the United States.

According to the Crohn's & Colitis Foundation audit of December 31, 2023 (Note 1 re: Contributed Services and Airtime), the Foundation received in-kind donated services and contributed airtime on which it placed a total value of $9,220,618. Of this amount, $1,634,669 consisted of donated services from volunteers, "comprised principally of physicians and health professionals," and $7,585,949 consisted of contributed airtime for donated public service announcements.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.]

According to the Crohn's & Colitis Foundation audit of December 31, 2023 (Note 6, Loan Payable):

"On February 6, 2021, the Foundation was granted a PPP loan totaling $2,000,000. The loan was set to mature on February 6, 2026 and bore interest at a rate of one percent per annum. Under the terms of the PPP, the loan may be forgiven if the funds were used for qualifying expenses, consisting of payroll costs, rent, and utilities. On January 31, 2022, the Foundation received notice that the SBA authorized the full forgiveness of the loan. As such, the bank applied the forgiveness to the Foundation's loan account and offset all interest accrued, and PPP loan forgiveness revenue totaling $2,019,342 has been reported in the accompanying statement of activities for the year ended December 31, 2022."

According to the Crohn's & Colitis Foundation audit of December 31, 2023 (Note 1, Organization and Significant Accounting Policies, Subsequent Events):

"Management has evaluated subsequent events through October 16, 2024, which is the date the financial statements were available to be issued. The Foundation is not aware of any material subsequent events which would require recognition or disclosure in the accompanying financial statements aside from the related-party loan discussed at Note 12."

According to the Crohn's & Colitis Foundation audit of December 31, 2023 (Note 12, Related Party Transactions):

"The Foundation receives contributions from members of its Board of Trustees. For the years ended December 31, 2023 and 2022, members of the Board of Trustees contributed financial gifts of $633,071 and $1,270,439, respectively.

Included in pledges receivable are $530,632 and $100,500 due from related parties as of December 31, 2023 and 2022, respectively.

Subsequent to year-end on July 18, 2024, the Foundation signed an agreement for a $1,000.000 promissory note (the 'Note') with a Board Member. The Note's interest rate is 5.06% per annum and it matures on December 31, 2025."

According to the Crohn's & Colitis Foundation audit of December 31, 2023 (Note 13, Employee Retention Credit):

"The CARES Act provides an employee retention credit, a refundable tax credit against employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages through December 31, 2020. Additional relief provisions were passed by the United States government, which extended and expanded the wage caps on these credits through December 31, 2021. Based on these additional provisions, the tax credit was increased to 70% of qualified wages paid to employees per quarter. The Foundation submitted an application for tax credits related to wages incurred during the first and second quarters of 2021. The application sufficiently met the criteria to receive the credit from the Internal Revenue Service during fiscal 2022, and therefore, the full amount of the credit totaling $3,581,000 was reported as other revenue in the accompanying statements of activities for the year ended December 31, 2022. The Foundation received payment of $3,581,084 plus related interest of $159,356 from the US Department of Treasury in August 2023."

According to the Crohn's & Colitis Foundation 2023 tax filing re: Political Campaign and Lobbying Activities (IRS Form 990, Schedule C, Part IV):

"In 2023, the Crohn's & Colitis Foundation ('the Foundation') employed the services of a professional consultant to keep the organization up-to-date on what is transpiring with federal legislation on Capitol Hill concerning health and medicine. During the year ended 2023, expenses incurred [totaled] $242,780. 

The Foundation engages in state-based advocacy campaigns ensuring that the needs of patients are addressed through legislation that targets the cost of health care and access to care. Total payments made in calendar year 2023 were $87,347.

The Foundation holds a 'Day on the Hill' event every year, in which patients suffering with IBD discuss proposed healthcare bills with legislators. The 'Day on the [Hill' event] was held virtually in calendar year 2023, for which expenses incurred were $59,712.

...Included within the $59,712 are expenses incurred for mailings made to members, legislators or the public..."

According to the Crohn's & Colitis Foundation 2023 tax filing, the Foundation reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding participating in or receiving payments from a supplemental nonqualified retirement plan for officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4b):

"In calendar year 2023, the President received a payout from the 457(f) plan in the amount of $125,000. This amount is reported in Schedule J, Part III and, likewise, in column (F) to reflect that it was reported as deferred compensation on prior year form 990's."

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

"The President/CEO's bonus and incentive compensation is predicated off of a set of objectives that are developed and updated each year. These objectives include raising revenues, management of expenses, development of regions and related performance, building of infrastructure and maximization of mission expenditures. Results are evaluated by the compensation and benefits committee and the incentive is ultimately determined based on ratings of performance of these objectives.

The Foundation acknowledges all of its other employees through annual lump-sum incentive awards based on meeting individual, departmental, and overall Foundation performance goals."

The Foundation reports "Bonus & incentive compensation" in the amount of $224,400 paid to Michael Osso, President/CEO; his reported total compensation in 2023 is $733,035, not including the above-mentioned $125,000 of deferred compensation. Twelve additional individuals are reported to have received "Bonus & incentive compensation" in amounts that range from $1,500 to $10,000, with total compensation ranging from $218,806 to $376,029 in 2020 (IRS Form 990, Schedule J, Part II).