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Miracle Flights

CharityWatch report issued
April 2019

CharityWatch Grade
This rating has been downgraded from D due to the charity having 15.4 years worth of available assets in reserve.
Program Percentage
Amount spent on programs
relative to overhead.
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Large Asset Reserves

CharityWatch reduces the grade of any charity that has available assets equal to three to five years of operating expenses. Charities with "years of available assets" of more than five years receive an "F" grade regardless of other measurements. In CharityWatch's view, a reserve of less than three years is reasonable and does not affect a charity's grade. These reductions in grades are based solely on the charities' asset reserves as compared to budget. The CharityWatch definition of "years of available assets" includes funds currently available for the charity's use, including investments that the charity has set aside as a reserve but could choose to spend if it wanted to do so. Miracle Flights' letter grade rating has been downgraded because it has 3 or more years of available assets.

See Our Process to learn more about how CharityWatch considers a charity’s asset reserves and the High Asset List for a list of charities whose ratings have been reduced due to high assets.

Contact Information

Miracle Flights
5740 S Eastern Ave
Suite 240
Las Vegas, NV 89119

Other Names

Miracle Flights for Kids

Tax Status


Stated Mission

Provides free commercial airline tickets for sick children needing treatments & second opinions not available in their own communities; improves access to health care for low income, ill children; promotes nationwide awareness of its services.

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Data based on Fiscal Year Ended 04/30/2018

Program Percentage: 47%

The percentage of Miracle Flights's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).


Calculated Total Expenses



Cost to Raise $100: $32

How many dollars Miracle Flights spends on fundraising to raise each $100 of contributions.


Calculated Total Contributions


Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources


Financial Documents

Entity Document Type Tax ID
Miracle Flights IRS Form 990 88-0209952
Miracle Flights & Affiliate Audited Consolidated Financial Statements Multiple
Entity: Miracle Flights
Document Type: IRS Form 990
Tax ID: 88-0209952
Entity: Miracle Flights & Affiliate
Document Type: Audited Consolidated Financial Statements
Tax ID: Multiple

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.
Miracle Flights
does not meet governance benchmarks.
Miracle Flights
does not meet transparency benchmarks.
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
Reports having a written Whistleblower Policy
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

  Name Title Compensation
1 Mark Brown CEO $362,865
Name: Mark Brown
Title: CEO
Compensation: $362,865

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 Miracle Flights consolidated audit of April 30, 2018 (Note 4, In-kind Contributions):

"As of April 30, 2018, the Organization received $793,865 of in-kind donations, which consist primarily of donated flights and flight resources..."

[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 Miracle Flights consolidated audit of April 30, 2018 (Note 8, Legal Matters):

"On June 26, 2015, MFFK [Miracle Flights for Kids] filed suit against Med Lien Management, Inc., ('Med Lien') and its two principals, Brad Esposito and Lincoln Lee, as a result of their default on a 2.2 million dollar loan obligation. Pursuant to a Lending Agreement dated April 30, 2013, MFFK agreed to loan Med Lien $2,200,000 in exchange for Med Lien's repayment of the money plus interest, for a total repayment obligation of $3,520,000. The Lending Agreement was secured by a Promissory Note and Assignment of Liens. Both principals, Lee and Esposito expressly agreed to personally guaranty Med Lien's obligations under the Lending Agreement and Promissory Note. Med Lien borrowed funds from MFFK with the express written understanding that it would make six interest only payments of $220,000 each, at six month intervals beginning October 30, 2013, with the final repayment of the principal amount of $2,200,000 due on April 30, 2016. As collateral for the Lending Agreement, Med Lien executed a written agreement providing for the assignment of numerous medical liens in the event of a default. Med Lien made its first three interest payments but failed to remit the $220,000 due on April 30, 2015.

"During the course of Christiansen Law Office's ('CLO') prosecution of the state court breach of contract action against Med Lien, Esposito and Lee, discovery revealed that the original $2.2 million dollar loan was induced by fraud and further involved self-dealing and breaches of fiduciary duties by MFFK former Board Member, Michael McDonald. Additionally, the named Defendants had co-mingled funds with various sham alter ego entities. Accordingly, MFFK filed an Amended Complaint to add causes of action against McDonald, Southern Nevada Medical Associates ('SNMA'), Critical Care Medical Consultants ('CCMC') and Quality Care Medical ('QCM').

"On May 19, 2016, the district court issued an order striking the answers of Esposito and Med Lien and subsequently held an evidentiary hearing to determine the amount of damages. On May 19, 2016, the court entered its Findings of Fact, Conclusions of Law and Order, holding the Defendants jointly and severally [sic]

"Concealment, and Fraudulent Conveyance/Transfer [sic]. On June 22, 2016, a Judgment was entered in favor of MFFK and against Defendants for each and every cause of action (independently and severally), resulting in an award of $2,782,096 in compensatory damages. Each of the Defendants was also assessed $100,000 in punitive damages for a total award to MFFK in the amount of $2,982,096. The financial solvency of both debtors however, is questionable at best and thus, CLO cannot determine the likely amount of total recovery based upon the judgment.

"MFFK also brought claims under its Directors and Officer's Liability insurance policy to recoup the losses it sustained as a result of McDonald's misconduct and self-dealing but the insurance carrier initially denied coverage. On September 7, 2016, the parties stipulated to allow McDonald to amend his Answer to assert third-party claims against the Federal Insurance Company -- Chubb Group of Insurance Companies ('Federal' and/or 'Chubb') regarding its denial of insurance coverage to MFFK and McDonald. Thereafter, MFFK went to mediation with McDonald and Chubb on September 20, 2016, and again on December 8, 2016. The parties were able to reach a confidential global settlement agreement to resolve this matter, wherein Chubb paid MFFK a total of $387,500 and McDonald's benefactors made a charitable donation of $262,500 to MFFK on his behalf. Based upon Defendants satisfaction of their settlement obligations, MFFK's claims against McDonald were dismissed with prejudice.

"MFFK further learned of an approximately $350,000 breach of contract action that Med Lien filed against third party lien and medical services entities, Solution Providers Associates, its principal, Dr. John Nelson, and Centenniel Medical Imaging. MFFK intervened as a Plaintiff in that action and Med Lien concedes MFFK would be entitled to any proceeds recovered as a result of that litigation. On or about June 20, 2017, the parties agreed to resolve the matter for the sum of $460,000, with $68,000 to be paid on or before September 1, 2017, monthly payments of no less than $5,500 for October, November and December 2017, and an additional balloon payment to bring the total paid to $100,000 on or before January 1, 2018. Thereafter, the Defendants will make $5,500 monthly payments for an additional thirty-one (31) months with a final balloon payment of $235,400 due on or before September 1, 2020. This agreement has yet to be formalized in writing, but will include confessions of judgment, a 30-day cure period and credit for amounts paid to be applied to any judgment that may ultimately be taken in the event that the Defendants fail to meet their payment obligations.

"Additionally, MFFK, as a lienholder, was served with two separate interpleader actions, wherein the total amount of the liens for medical treatment and services exceeds the amount of the settlement funds available. Accordingly, it is up to the court to determine how the proceeds should be divided based on the number of parties that answer the complaint. Accordingly, on March 21, 2017, MFFK filed its Answer in Glen Lerner Injury Attorneys v. Cleveland Powe, et al., Case No. A-16-745663-C, and on April 6, 2017, MFFK filed its answer in Glen Lerner Injury Attorneys v. William Woods, Sr. et al, Case No. A-17-751653-C, in order to protect its right, interest, entitlement and/or benefit to the settlement funds based upon its existing lien. While MFFK is zealously pursuing all avenues of financial recovery with respect to losses sustained as a result of the Med Lien loan, the likelihood of success in collecting on the full amount owed is subject to a number of unresolved variables. Thus, the timing and full extent of collection remains unknown at this point and all balances have been written off."
According to the Miracle Flights for Kids consolidated audit of April 30, 2015 (Note 13, Subsequent events):

"In November 2015, the founders of the Organization have retired. The Board of Directors agreed on a pension amount for Ann McGee to be funded by the purchase of annuities totaling approximately $6,047,935 which will provide annual annuity payments to Mrs. McGee totaling an amount not to exceed 75% of her final salary during her lifetime. The Organization is the beneficiary of the annuities. Therefore, upon her passing, the annuities will be transferred back to the Organization in the form of a contribution from Mrs. McGee's estate.

"The Board of Directors also agreed on a pension amount for Bill McGee to be funded by the purchase of annuities totaling approximately $1,209,485 which will provide annual annuity payments to Mr. McGee totaling an amount not to exceed 75% of his final salary during his lifetime. The Organization is the beneficiary of the annuities. Therefore, upon his passing, the annuities will be transferred back to the Organization in the form of a contribution from Mr. McGee's estate."
According to the Miracle Flights for Kids consolidated audit of April 30, 2014 (Note 1, Nature of Operations):

"On May 14, 2013, the Organization formed MFFK Holdings, Inc., under the laws of the state of Nevada and is a qualified tax exempt organization under Section 501(c)(2) of the IRC ('Holdings'). The sole purpose is to hold commercial real estate property located in Las Vegas, Nevada. On June 28, 2013 Holdings purchased, for cash, two commercial properties for the total sum of $10.9 million with the intent of leasing out office space. MFFK relocated to these facilities in January of 2014."
According to the Miracle Flights for Kids audit of April 30, 2013 (Note 7):

"For the year ended April 30, 2013, the Organization received $40,871,405 from British Airways PLC, which represented 94% of total revenue. The Organization was selected as the recipient of the U.S. Cy Pres Payment in a U.S. class-action lawsuit."

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