National Kidney Foundation

According to the National Kidney Foundation audit of March 31, 2021 (Note 1, Nature of Organization):

"...The Foundation has a chartered network of nine affiliated organizations (Affiliates) and 29 regional offices as of March 31, 2021 across the country to implement its mission... Under the provisions of a charter with the Foundation, each Affiliate must meet certain requirements regarding organizational structure, program services, and fundraising."

CharityWatch's rating of the National Kidney Foundation does not include the financial activities of its nine Affiliates.

As described in the National Kidney Foundation (NKF) fiscal 2021 tax filing: "...The Affiliates are separate legal entities (not controlled by NKF) which in tandem with the Foundation help implement its mission... NKF and its Affiliates have agreements under which a portion of contributions received by Affiliates is shared with NKF for the express purpose of fulfilling its mission" (IRS Form 990, Schedule O re: Form 990, Part III, line 4b).

According to the National Kidney Foundation audit of March 31, 2021 (Note 10, Loan Payable – Paycheck Protection Program):

"The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) appropriated funds for the Small Business Administration (SBA) Paycheck Protection Program (PPP) loans that are forgivable in certain situations to promote continued employment... In April 2020, the Foundation applied for and secured a PPP loan of approximately $3.6 million. The Foundation has reported the PPP Loan as a liability on its balance sheet as of March 31, 2021. Management has assessed and concluded that the funds were used in accordance with the SBA stipulations and are eligible for receiving full forgiveness from the SBA (see Note 18 [cited below] for related subsequent event updated disclosures)."

According to the National Kidney Foundation audit of March 31, 2021 (Note 18, Subsequent Events):

"In April 2021, the Foundation has applied for full forgiveness on the SBA PPP loan. On June 22, 2021, the Foundation received notice from its banker that the SBA has authorized the full forgiveness of the loan. As such, the bank will apply the forgiveness to the Foundation's loan account and offset all interest accrued. The forgiveness amount will be reported in the Foundation's results for fiscal year 2022."

According to the National Kidney Foundation audit of March 31, 2021 (Note 16, Related-Party Transactions):

"During the years ended March 31, 2021 and 2020, the Foundation had an arm's length transaction with a board member. The board member is a president of a marketing agency that has been engaged to work on the Foundation's Kidney Risk Campaign, known as the 'Are you the 33%' awareness campaign (Campaign). The marketing agency assisted the Foundation with the creative aspects of the Campaign, as well as the engagement and distribution channels for the Campaign.

"During the years ended March 31, 2021 and 2020, the amounts paid to the marketing agency for the various deliverables of the Campaign approximated $386,025 and $685,000, respectively. This amount includes both compensation for the marketing agency, as well as passthrough costs for the engagement and distribution aspects of the Campaign..."

According to the National Kidney Foundation audit of March 31, 2021 (Note 17, Risks and Uncertainties, Investments Risk):

"In the normal course of business, the Foundation enters into transactions in various financial instruments with off-balance sheet risk. Market risk represents the potential loss that can be caused by a change in the fair value of the financial instrument. Liquidity risk represents the possibility that the Foundation may not be able to rapidly adjust the size of its positions in times of high volatility and financial stress at a reasonable price. The Foundation is subject to credit risk if the investment managers are unable to repay balances due or deliver securities in their custody. Due to the level of risk associated with certain investments and the level of uncertainty related to the changes in fair value of these investments, it is at least reasonably possible that changes in market conditions in the near term could materially affect the value of investments reported in the [audited] financial statements."

According to the National Kidney Foundation audit of March 31, 2021 (Note 17, Risks and Uncertainties, COVID-19 Outbreak):

"On January 30, 2020, the World Health Organization (WHO) announced a global health emergency because of a new strain of coronavirus... In March 2020, the WHO classified the COVID-19 outbreak as a pandemic...

"Although the Centers for Disease Control (CDC) and most states have lifted most of the restrictions put in place to contain COVID-19 as of the report date [August 6, 2021], the full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude of the impact that the pandemic will have on the Foundation's future financial condition, liquidity, and results of operations. Management is actively monitoring the impact of the situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the evolution of new variants with the COVID-19 outbreak and the global responses to curb its spread, the Foundation is not able to accurately estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2022. The Foundation's operations are heavily dependent on private and public donations from individuals, foundations, and corporations for all its events around the United States. Apart from the Golf program and some of its other special events and programs that already began in-person activities, the Foundation is projecting that in-person Walks can safely resume in January 2022.

"On March 27, 2020, the CARES Act was signed into law. ... As detailed in Note 10 [cited separately, above], the Foundation obtained a PPP loan from the appropriations of the CARES Act, no other forms of assistance were utilized as of March 31, 2021."

According to the National Kidney Foundation (NKF) tax filing for the fiscal year ended March 31, 2021, NKF reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

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

"Schedule J, Part II, Column (B)(ii) ['Bonus & incentive compensation'] reports discretionary incentive amounts that were approved by the compensation committee based upon individual and organizational performance."

NKF reports "Bonus & incentive compensation" payments to 11 individuals in calendar year 2020, including $76,000 paid to Kevin Longino, Chief Executive Officer, whose reported total compensation in 2020 is $445,163. The reported "Bonus & incentive compensation" amounts for the other 10 individuals range between $19,594 and $3,800, with associated reported total compensation ranging from $349,362 to $198,473 (IRS Form 990, Schedule J, Part II).