CharityWatch's rating of Planned Parenthood Federation of America (PPFA) is for the 501(c)(3) public charity entity (tax ID #13-1644147). The rating does not include PPFA's related 501(c)(4) tax-exempt, social welfare organization, Planned Parenthood Action Fund, Inc. (tax ID #13-3539048), which is rated separately by CharityWatch.
The rating also does not include the financial activities of Planned Parenthood Global, Inc. (tax ID #47-5312115), the international arm of Planned Parenthood Federation of America, nor of the separately incorporated PPFA affiliated independent medical and related or ancillary entities. (See the PPFA consolidated audit Note 1(b) citation, below.)
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 PPFA consolidated audit of June 30, 2020 (Note 1(b), Organizational Structure):
"PPFA...maintains primary domestic offices in New York City, Washington, DC and San Francisco, CA. The Organization is also affiliated with 49 independent medical and related entities, the Planned Parenthood Affiliates (PP Affiliates), all of which are separately incorporated in their respective states and which along with PPFA directors collectively constitute PPFA's membership. The PP Affiliates in turn control 113 ancillary entities (including 59 Political Action Committees and 50 501(c)(4) organizations). The Organization, PP Affiliates and the ancillary organizations together comprise Planned Parenthood. The accompanying [audited] consolidated financial statements do not include the financial position or the changes in net assets and cash flows of these independent PP Affiliates or their ancillary organizations.
"The [Planned Parenthood] Action Fund was incorporated in 1989 to encourage and protect informed individual choice regarding reproductive healthcare, to advocate public policies, which guarantee the right, as well as full and nondiscriminatory access, to such care, and to foster and preserve a social and political climate favorable to the exercise of reproductive choice.
"On September 30, 2015, PP Global was incorporated to consolidate oversight and management of PPFA's international programs, maintain several international offices and to further its mission to support efforts to ensure that women, men, and young people in some of the world's most neglected areas have access to reproductive and sexual healthcare. PP Global operations commenced in July 2016.
"The individual entities have interrelated directors/trustees and share common facilities and personnel. Various expenses, including occupancy costs and salaries, have been allocated among PPFA, the Action Fund, and PP Global based upon services rendered by common personnel and usage of common facilities."
According to the PPFA tax filing for the fiscal year ended June 30, 2020 (IRS Form 990, Schedules I & R), PPFA made a grant in the amount of $18,450,228 to Planned Parenthood Global in fiscal 2020.
According to the Planned Parenthood Federation of America consolidated audit of June 30, 2020 (Note 5, Related-Party Transactions):
"For the years ended June 30, 2020 and 2019, $151,984,404 and $111,123,109 of total awards and grants expense related to PP Affiliates and ancillary organizations.
"In July 2020, PPFA entered into an agreement with a financial institution to pledge up to $21,000,000 of collateral on loans to the Affiliates. As of December 21, 2020, there were no outstanding loans."
According to the Planned Parenthood Federation of America (PPFA) tax filing for the fiscal year ended June 30, 2020 (IRS Form 990, Schedule O re: Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors), PPFA reports:
"During the reporting year, PPFA underwent several leadership transitions. Dr. Leana Wen was hired as President and CEO of the Planned Parenthood Federation of America, Inc. on November 12, 2018, taking over for transition chair Joe Solmonese. Dr. Wen's employment as President and CEO ended on July 16, 2019. Former board member Alexis McGill-Johnson was appointed the acting President and CEO on July 16, 2019. On June 26, 2020 she was officially hired as President and CEO."
According to the Planned Parenthood Federation of America (PPFA) tax filing for the fiscal year ended June 30, 2020, PPFA includes in its reporting for Compensation Information re: Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees, "Bonus & incentive compensation" paid to 10 individuals in calendar year 2019. The reported bonus & incentive compensation includes: (1) $212,700 paid to Jethro Miller, Chief Development Officer; (2) $137,100 paid to Kimberly Custer, Executive VP Health Care; (3) $131,200 paid to Melvin Galloway, Chief Operating Officer; (4) $125,000 paid to Dawn Laguens, Senior Advisor; and (5) $110,300 paid to Dannette S. Hill, Chief H.R. Officer. Their reported total compensation in 2019 is: (1) Miller: $648,812; (2) Custer: $535,128; (3) Galloway: $537,969; (4) Laguens: $1,003,490; and (5) Hill: $438,858. The reported "Bonus & incentive compensation" and total compensation amounts also include compensation received from related organizations for some individuals (IRS Form 990, Schedule J, Part II).
According to the Planned Parenthood Federation of America (PPFA) tax filing for the fiscal year ended June 30, 2020, PPFA 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):
"During the reporting year, PPFA underwent several leadership transitions. Dr. Leana Wen's employment as President and CEO ended on 07/16/2019 and during calendar year 2019 she received a severance payment of $655,000.
"Dawn Laguens' employment as Executive Vice President and Chief Brand and Experience Officer (EVP) ended on 01/03/2019 and during calendar year 2019 she received a severance payment of $600,000.
"Lyric Chen's employment [as Sr. Strategic Adv.] ended on 08/02/2019 and during calendar year 2019 she received a severance payment of $131,154.
"Abigail Smith's employment [as interim CFO] ended on 06/04/2019 and during calendar year 2019 she received a severance payment of $23,175.
"Kristin Rzeczkowski's employment [as Chief of Staff] ended on 08/03/2019 and during calendar year 2019 she received a severance payment of $139,616."
PPFA reports the total compensation in calendar year 2019 for the above referenced individuals that received severance payments to be: (1) Wen: $1,284,459; (2) Laguens: $1,003,490; (3) Chen: $393,881; (4) Smith: $177,970; and (5) Rzeczkowski: $404,957. The reported total compensation also includes amounts received from related organizations for some individuals (IRS Form 990, Schedule J, Part II).