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Diabetes Research & Wellness Foundation

CharityWatch report issued
January 2023

C-
CharityWatch Grade
Our independent grade based
on a number of factors.
 
69%
Program Percentage
Amount spent on programs
relative to overhead.
 
$119
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Diabetes Research & Wellness Foundation
1834 Connecticut Avenue, NW
Suite 420
Washington, DC 20009

Other Names

None

Tax Status

501(c)3

Stated Mission

To help find the cure for diabetes, and until that goal is achieved, to provide the care and self-management skills needed to combat the life-threatening complications of diabetes, and to promote public education about the causes, prevention, and treatment of the disease.

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Data based on Fiscal Year Ended 12/31/2021

Program Percentage: 69%

The percentage of Diabetes Research & Wellness Foundation's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$6,300,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $119

How many dollars Diabetes Research & Wellness Foundation spends on fundraising to raise each $100 of contributions.

$1,400,000

Calculated Total Contributions

(rounded)

Joint Costs

Diabetes Research & Wellness Foundation's 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
93% $15
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
Diabetes Research and Wellness Foundation IRS Form 990 52-1840230
Diabetes Research and Wellness Foundation Audited Financial Statements 52-1840230
Entity: Diabetes Research and Wellness Foundation
Document Type: IRS Form 990
Tax ID: 52-1840230
Entity: Diabetes Research and Wellness Foundation
Document Type: Audited Financial Statements
Tax ID: 52-1840230

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.
Diabetes Research & Wellness Foundation
meets governance benchmarks.
 
Diabetes Research & Wellness Foundation
does not meet 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
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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 Opt-Out Policy  

  Name Title Compensation
1 Andrea Stancik Executive Director $103,388
1
Name: Andrea Stancik
Title: Executive Director
Compensation: $103,388

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.

According to the Diabetes Research & Wellness Foundation audit of December 31, 2021 (Note 14, Financial Condition):

"During the years ended December 31, 2021 and 2020 the Foundation experienced a decrease [in net assets] of $854,133 and an increase in net assets of $881,866, respectively and cash flow from operations of $7,137 and $34,257, respectively. Additionally, the Foundation experienced decreases in net assets during the years ended December 31, 2019 and 2018 of $657,612 and $289,847, respectively, and cash flow from operations of $(166,344) and $81,073, respectively.

"Contributing to these decreases were continued declines of funding through grants and contributions and in the contributions from direct mail campaigns. Management, taking these factors into account, made a decision to continue funding core programs and also took steps to reduce operating expenditures to remain viable into the future. This included reducing staff through attrition and evaluating the direct mail campaign to retain only the most profitable campaigns. In addition, management renegotiated fee terms.

"In August 2022, the Foundation received repayment of a French receivable in the amount of $453,164. See Note 11 [cited separately, below].

"The Foundation's officers and directors are committed to the long-term viability of the organization and the Foundation can request support when needed from the Diabetes Wellness Network affiliates [see Note 11, cited separately, below] to ensure ongoing operations. Additionally, the Foundation has low overhead and is able to control mailing costs, including changing suppliers if necessary and all grant commitments are payable as funds are available. The Foundation is often the beneficiary of bequests. While the timing of these bequests is often not known in advance, the bequests provide a supplemental source of income in addition to normal fundraising activities.

"Management expects the Foundation to continue as a going concern. The [audited] financial statements do not include any adjustments that might be necessary should the Foundation be unable to continue as a going concern."

According to the Diabetes Research & Wellness Foundation audit of December 31, 2021 (Note 5, Paycheck Protection Program):

"Beginning around March 2020, COVID-19 has been declared a global pandemic as it continues to spread rapidly. Business continuity, including supply chains and consumer demand across a broad range of industries and countries were severely impacted for months as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. Management is carefully monitoring the situation and evaluating its options during this time. No adjustments have been made to these [audited] financial statements as a result of this uncertainty.

"On March 27, 2020, and as a result of COVID 19, the Coronavirus Aid, Relief and Economic Security Act (or CARES Act) became part of U.S. Law. One of the provisions of the CARES Act is the Paycheck Protection Program (PPP), which is intended to provide loans to businesses to guarantee payroll and other costs to help businesses remain viable and allow their workers to pay their bills. The Foundation applied for and on May 7, 2020 received a $81,100 PPP loan. The interest rate is 1% with maturity two years from the date of the loan. ... Payments are deferred until a determination of the amount of forgiveness is made by the SBA [Small Business Administration]. ... In May 2021, the loan was fully forgiven and recognized as revenue in the [audited] statement of activities for the year ended December 31, 2021."

According to the Diabetes Research & Wellness Foundation audit of December 31, 2021 (Note 11, Diabetes Wellness Network):

"The Foundation has agreements with other non-profit related organizations to which they provide technical and material assistance. The Foundation and these organizations serve a common purpose... Additionally, the Foundation provides accounting and administrative services to these organizations.

"Total receipts for these services were $3,764,984 and accounted for 77% of total revenues of the Foundation for the year ended December 31, 2021. These receipts consist of $537,000 in management fees and $3,227,984 for purchased materials for the other entities that are reimbursed with no mark-up or profit."

[...]

"As a result of a foreign court, the Foundation has experienced significant delays in receiving payments for the services and goods provided to a French nonprofit, Association Pour La Diabete (a related entity). In 2013, the French court released a partial payment of $749,465 on this receivable. While the Foundation will pursue all avenues to collect the remaining balance, the foreign court's lack of attention has added uncertainty as to the collectability of the balance. This uncertainty and the Foundation's inability to obtain information from the foreign court resulted in the Foundation providing for an allowance of $453,164 against this receivable. During late 2019, the French court started the final process to allow the French nonprofit to pay the Foundation $453,164. In October 2021, the French court ordered payment of the funds and the $453,164 allowance was reversed. In August 2022, the Foundation received payment of $453,164."

According to the Diabetes Research & Wellness Foundation audit of December 31, 2021 (Note 10, Concentrations, Revenues and Receivables):

"For the years ended December 31, 2021 and 2020, 23% and 28%, respectively, of the Foundation's total support was received from Diabetes Research and Wellness Foundation (Sweden). For the years ended December 31, 2021 and 2020, 31% and 20%, respectively, of the Foundation's total support was received from Diabetes Research and Wellness Foundation (Finland). For the years ended December 31, 2021 and 2020, 13% and 10%, respectively, of the Foundation's total support was received from Diabetes Research and Wellness Foundation (Norway)..."

According to the Diabetes Research & Wellness Foundation 2021 tax filing, the Foundation reports re: the existence of a family or business relationship among officers, directors, trustees, or key employees (IRS Form 990, Schedule O re: Part VI, Section A, line 2):

"W. Michael Gretschel (President) is the father of Christian Gretschel (Officer/Director) and of Andrea Stancik (Officer/Executive Director)."

[The Foundation reports having six voting members on its governing body at year-end 2021, with five voting members reported as being independent (IRS Form 990, Part VI, Section A, lines 1a & 1b).]



Also according to the Foundation's 2021 tax filing, the Foundation reports for Business Transactions Involving Interested Persons, a transaction in the amount of $103,388 involving Andrea Stancik, "Daughter of Officer." The transaction is described as: "Compensation as Executive Director" (IRS Form 990, Schedule L, Parts IV & V).

According to the Diabetes Research & Wellness Foundation audit of December 31, 2021 (Note 13, Commitments):

"In 2015, the Foundation made an unrestricted conditional cumulative grant of $2,000,000 to Spring Point Project, a separate 501(c)(3) non-profit organization that has shared board members with the Foundation. The commitment is payable in quarterly installments through 2021. The Foundation paid $175,000 on the commitment during the year ended December 31, 2021 and intends to pay the remaining amount as funds become available. During the years ended December 31, 2021 and 2020 the Foundation incurred grant expense of $3,336 and $200,000, respectively. As of December 31, 2021 the remaining obligation is $78,336. Spring Point Project expects to enter into discussions for the sale of the Source Animal Facility asset to the Foundation at below market price following satisfaction of its outstanding loan obligations with assistance of funding from this commitment. This commitment is not recorded in the accompanying [audited] financial statements as the grant is subject to an annual progress report, to the satisfaction of the directors of the Foundation, and that adequate funds are available within the Foundation."


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