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 12/31/2020. According to the Crohn's & Colitis Foundation 2020 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 39 chapters across the United States.

According to the Crohn's & Colitis Foundation audit of December 31, 2020 (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 $2,936,025. Of this amount, $1,067,354 consisted of donated services from volunteers, "comprised principally of physicians and health professionals," and $1,868,671 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 2020 tax filing re: Political Campaign and Lobbying Activities (IRS Form 990, Schedule C, Part IV):

"In 2020, 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 2020, expenses incurred totalled $144,538. 

"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 2020 were $121,942.

"The Foundation holds a 'Day on the Hill' event every year, in which patients suffering with IBD volunteer to travel to Washington D.C. to discuss proposed healthcare bills with legislators. The 'Day on the Hill' event was conducted virtually during the calendar year 2020, for which expenses incurred were $40,500.

"...Included within the $40,500 are expenses incurred for mailings made to members, legislators or the public..."

According to the Crohn's & Colitis Foundation audit of December 31, 2020 (Note 8, Loan Payable):

"On April 22, 2020, the Foundation was granted a loan in the aggregate amount of $5,721,600, pursuant to the Small Business Administration Paycheck Protection Program (the 'PPP') under...the CARES Act, which was enacted March 27, 2020. The loan matures on April 22, 2022 and bears interest at a rate of one percent per annum. Principal payments of $322,157 were expected to commence on November 22, 2020. Under the terms of the PPP, the loan may be forgiven if the funds are used for qualifying expenses, consisting of payroll costs, rent, and utilities. On December 21, 2020, the Foundation applied for loan forgiveness. Until a decision is made by the Small Business Administration, no payments of principal or interest are due. Should the Foundation be legally released from the debt, or forgiveness is granted, the extinguishment will be recognized into income at that time.

"On February 6, 2021, the Foundation was granted a second PPP loan in the aggregate amount of $2,000,000. The loan matures on February 6, 2026 and bears an interest rate of one percent per annum. Principal payments of $43,478 are expected to commence on May 24, 2022. Under the terms of the PPP, the loan may be forgiven if the funds are used for qualifying expenses, consisting of payroll costs, rent, and utilities. Management anticipates that the full amount of the loan will be forgiven."

According to the Crohn's & Colitis Foundation audit of December 31, 2020 (Note 1 re: Pandemic Implications):

"In early 2020, an outbreak of the novel strain of coronavirus ('COVID-19') emerged on a global scale. In reaction to the outbreak, federal, state, and local governments issued mandates that disrupted normal business activity in every sector of the economy. Despite the operating challenges it presented, the Foundation remained focused on delivering its core mission. In early March, the pandemic caused the Foundation to close offices across the country and shift its operations, events and community-based programs to a virtual format, which remained in effect through the end of 2020 and into 2021. The Foundation continues to closely monitor the ongoing impacts of COVID-19 and is focused on ensuring a careful balance between delivering on its mission and maintaining a strong financial position. Accordingly, the extent to which COVID-19 may have a future impact on the Foundation's financial position is uncertain."

According to the Crohn's & Colitis Foundation 2020 tax filing, the Foundation 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 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 $25,000 paid to Michael Osso, President/CEO; his reported total compensation in 2020 is $547,733. Eleven additional individuals are reported to have received "Bonus & incentive compensation" in amounts that range from $7,000 to $2,000, with total compensation ranging from $387,323 to $180,871 in 2020 (IRS Form 990, Schedule J, Part II).