Make-A-Wish Foundation (National Office)

CharityWatch's rating of Make-A-Wish Foundation (the Foundation) is for the Foundation's National Office (tax ID #86-0481941). The rating does not include the financial activities of its 58 active chartered local chapters, which separately report their respective financial results.

According to the Make-A-Wish Foundation audit of August 31, 2023 (Note 1, Organization):

"...The Foundation charters local chapters throughout the United States, its territories, and possessions (Chapters) and provides financial support, guidance, and other assistance to such Chapters in performing the Foundation's Purpose. As of August 31, 2023 and 2022, the Foundation had 58 and 59 active chartered Chapters, respectively.

Chapter Agreements entered into between each Chapter and The Foundation provide for common purposes and policy direction. The Chapter Agreement also provides the Foundation with a security interest in the assets of the Chapters. The Foundation has elected not to consolidate the Chapters' financial results into the accompanying [audited] financial statements, except when the Foundation assumes control of a Chapter..."

According to the Make-A-Wish Foundation audit of August 31, 2023 (Note 2 re: Revenue Recognition), the Foundation received in-kind contributions of assets, services, and materials in fiscal 2023 on which it placed a total value of approximately $116 million. Of this amount, approximately $102 million was donated "Advertising and Media," and approximately $12 million was "Wish Related" in-kind donations.

[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 Make-A-Wish Foundation audit of August 31, 2023 (Note 16, Concentrations of Credit Risk):

"...In-kind contributions totaling $72,595,432 were received from one donor for the year ended August 31, 2022, which represents 40% of total public support. Should these contribution levels decrease, the Foundation may be adversely affected. There were no similar concentrations for the year ended August 31, 2023."

According to the Make-A-Wish Foundation audit of August 31, 2023 (Note 7, Transactions with Related Entities):

"Chapters pay annual dues to the Foundation, which were $23,460,461 and $20,607,527 for the years ended August 31, 2023 and 2022, respectively. The Foundation supports the Chapters by providing funding and other support for the granting of wishes.

The National Organization conducts national fundraising efforts for which cash and in-kind donations are received and, as determined by the Foundation, are shared with the Chapters. These funds represent revenues associated with: distributions from national partners, individual donation amounts collected via online and white mail donations, amounts for internal grants, travel, and training scholarships, amounts to fund the Adopt-A-Wish® program, and other miscellaneous revenues. During the years ended August 31, 2023 and 2022, the Foundation provided the Chapters with contributions which were $48,378,949 and $50,549,166, respectively, from these national revenue streams..."

According to the Make-A-Wish Foundation of America (MAWF) tax filing for the fiscal year ending August 31, 2023, MAWF reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"David Mulvihill, Past Chief Legal Officer, received a severance payment of $37,000 during calendar 2022."

[The reported total compensation for David Mulvihill in 2022 is $307,388 (IRS Form 990, Schedule J, Part II).]

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

"Management makes recommendations to the governance, compensation, culture & nominating committee of the Board of Directors of the organization ('the Committee'). After considering such recommendations, the Committee shall make each of the determinations required based on several factors, such as total potential award percentage and allocation of award percentage based on organization goals and individual goals, performance, etc. for each plan year. The committee shall have the sole discretion to make all such determinations and decisions."

MAWF reports "Bonus & incentive compensation" payments to 16 individuals in calendar year 2022. Richard Davis, Past President & CEO, received $115,830 with a total reported compensation of $577,076. The other 15 individuals received "Bonus & incentive compensation" ranging from $15,000 to $91,000, with associated reported total compensation in 2022 ranging from $177,418 to $503,704 (IRS Form 990, Schedule J, Part II).