Intrepid Fallen Heroes Fund

As part of our financial analysis, CharityWatch makes certain adjustments to figures reported by a charity in its tax filing and/or audited financial statements to better reflect for donors how efficiently a charity is spending its donations.

Intrepid Fallen Heroes Fund provides services to severely injured military personnel, spending the vast majority of the funds it receives on the construction of research, diagnosis, treatment, and other medical facilities. Due to accounting rules, the millions of dollars the charity spends on constructing these facilities, typically over a multi-year period, are not reported by the charity as a program expense in the year the funds are spent on construction. Rather, the program and other expenses from construction costs are recognized in the year the charity conveys ownership of a completed medical facility to the U.S. Army, U.S. Navy, Department of Defense, or other agency charged with staffing and operating the facility. The result is that the charity appears to be spending very little on programs during years of construction, and a drastically large amount on programs in subsequent years when construction is complete.

CharityWatch understands that while these accounting rules are appropriate for audit and other financial reporting, taking them at face value when computing financial efficiency percentages for any single reporting year would produce volatile results that are not reflective of how efficiently or inefficiently this charity is operating. Therefore, we make adjustments to reported figures by including the charity's construction costs in its program percentage in the year the funds are spent. Similarly, we subtract from reported program spending the funds the charity spent on construction in prior years. These adjustments produce program efficiency and fundraising ratios that are more helpful for donors who want to know how efficiently the charity is raising and spending public dollars in a given year.

Please see the Our Process page for more information about other adjustments CharityWatch analysts make to a charity's reported financial figures during our evaluations.

According to The Intrepid Fallen Heroes Fund (IFHF) audit of April 30, 2022 (Note 6, Construction in Progress):

"Through April 30, 2022 and 2021, IFHF incurred $11,814,693 and $490,100 in construction costs related to the ninth Intrepid Spirit Center, and preliminary design costs for the tenth Intrepid Spirit Center..."

According to The Intrepid Fallen Heroes Fund (IFHF) audit of April 30, 2022 (Note 7, Transactions with Intrepid Museum Foundation (the "Museum")):

"An agreement between IFHF and the Museum provides for the exchange of certain services, including payroll and space between the two organizations. During the years ended April 30, 2022 and 2021, IFHF had transactions with the Museum as follows:

The Museum provided administrative and technical support to IFHF, free of charge. These costs, in the amount of $125,471 and $103,556, have been reported as in-kind contributions and are allocated among program, management and general and fundraising expenses."

According to The Intrepid Fallen Heroes Fund (IFHF) audit of April 30, 2022 (Note 9, Related Party Transactions):

"Revenue reflected in the accompanying statement of activities includes contributions from certain members of the Board and their affiliates totaling $1,033,113 and $1,105,638 in fiscal 2022 and fiscal 2021. There were no receivables due from Board members and their affiliates as of April 30, 2022 or 2021. 

IFHF occasionally incurs administrative expenses on behalf of an affiliated not-for-profit entity by virtue of common board membership. Additionally, during fiscal 2021, the affiliated entity donated $38,494 to IFHF, which is included within contributions and grants on the accompanying 2021 statement of activities. As of April 30, 2022 and 2021, $196 was due to IFHF from the affiliated entity and is included within prepaid expenses and other assets on the accompanying statement of financial position."

According to The Intrepid Fallen Heroes Fund (IFHF) audit of April 30, 2022 (Note 11, Commitments):

"In connection with the construction of Intrepid Spirit Centers nine and ten...as of April 30, 2022, IFHF has committed contracted spending on materials totaling $15,699,336."

According to The Intrepid Fallen Heroes Fund (IFHF) audit of April 30, 2022 (Note 14, Subsequent Events):

"The ninth spirit center in Fort Carson, Colorado was completed subsequent to year end and opened on July 13, 2022. It has since been donated to the U.S. government. The related activity will be recognized in fiscal year 2023."

According to The Intrepid Fallen Heroes Fund (IFHF) tax filing for the fiscal year ended April 30, 2022, IFHF reports re: Supplemental Information to Form 990 or 990-EZ (IRS Form 990, Schedule O):

Regarding Form 990, Part VI, Section A, Line 2:

"Winston Fisher, a Director of the Intrepid Fallen Heroes Fund, and Martin Edelman, a Director of the Intrepid Fallen Heroes Fund, have business relationships with one another."