CharityWatch's rating of NARAL Pro-Choice America Foundation is for the 501(c)(3) public charity entity (tax ID #52-1100361). CharityWatch provides a separate rating for the related 501(c)(4) tax-exempt, social welfare organization, NARAL Pro-Choice America (tax ID #13-2630359).
CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when they are included together in a consolidated audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page. For more information about things to consider when donating to organizations that have related public charity and social welfare entities, read "Sorting Out Nonprofit Pairs" in the Articles & Alerts section, below.
According to the NARAL Pro-Choice America Foundation audit of September 30, 2020 (Note 7, Note Payable, Paycheck Protection Program Loan):
"In May 2020, the Foundation received loan proceeds in the amount of $936,350 from a financial institution under the Paycheck Protection Program (PPP), established as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loan requires monthly payments of principal and interest at 1.00% starting in December 2020 and due in May 2022. The CARES Act loan includes a feature that allows for forgiveness of the loan if funds are used for eligible purposes, including payroll and benefits, and if the Foundation maintains its payroll levels. The Foundation intends to seek loan forgiveness of the full loan amount in accordance with Small Business Administration (SBA) guidelines pursuant to the CARES Act. While the Foundation believe[s] that its use of the loan meets the conditions for forgiveness, there is no assurance that the loan will be forgiven, in whole or in part. Repayment terms will be adjusted once the lending institution has processed the loan forgiveness application and determined the final loan amount."
According to the NARAL Pro-Choice America Foundation audit of September 30, 2020 (Note 10, COVID-19 and CARES Act):
"On January 30, 2020, the World Health Organization (WHO) announced a new strain of coronavirus. ...[O]n March 11, 2020, the WHO declared the novel coronavirus a global pandemic.
"In order to further limit health risks associated with the COVID-19 virus, the Foundation has required staff at its Washington DC office to work remotely and program activities have been transitioned to a virtual environment. The Foundation is complying with State health officials, WHO recommendations, to do its part in reducing the impact on its employees.
"The Foundation's operations are heavily dependent on private and public donations from individuals, foundations, and corporations. At this stage, the impact on operations and results of the Foundation have not been significant as donations have remained steady throughout the pandemic. Despite the downturn in the markets caused by the pandemic, the Foundation did not experience a significant decline in its investment values and, as of the date of this report [January 29, 2021], the performance of the investment portfolio was up 9%.
"At the date of issuance of the [audited] financial statements [January 29, 2021], this public health emergency stands to substantially impact the global economy, including significant volatility in the financial markets, triggering a period of global economic slowdown which may depress donations from the Foundation's institutional and individual contributors during fiscal year 2021. As such, this may impact the Foundation's ability to advance its mission. Our financial condition and liquidity may be negatively impacted for the fiscal year 2021.
"On March 27, 2020, the President of the Untied States, signed into law the 'Coronavirus Aid, Relief, and Economic Security (CARES) Act.' The CARES Act, among other things, includes provisions relating to refundable payroll tax credits... It also appropriated funds for the Small Business Administration (SBA) Paycheck Protection Program loans that are forgivable in certain circumstances to promote continued employment, as well as Economic Injury Disaster Loans to provide liquidity to small business harmed by COVID-19. As discussed in Note 7 [cited in a separate Analysts' Note, above], the Foundation received loan proceeds in the amount of $936,350 from a financial institution under the Paycheck Protection Program.
"The Foundation continues to examine the impact that COVID-19 and the CARES Act may have on its business. Currently, the Foundation is unable to determine the impact that COVID-19 and the CARES Act will have on its financial condition, results of operations, or liquidity."