BBB Wise Giving Report for
Chronic Disease Fund

BBB Wise Giving Report issued April 2011
BBB Wise Giving Report expires January 2013


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Chronic Disease Fund
Address: 6900 North Dallas Parkway, Suite 200
  Plano, TX 75024
Phone: 972-608-7141
Web Address: www.cdfund.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 2003, New Jersey
Affiliates: None
Stated Purpose: "to improve the health and quality of life of underinsured patients with chronic disease, cancer, or other life-altering conditions by helping them obtain the medications they so desperately need but cannot afford."

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Evaluation Conclusions

               

Chronic Disease Fund (CDF) does not meet the following 3 Standards for Charity Accountability.

Standard 4: Compensated Board Members - Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

CDF does not meet this Standard because:

  • All seven members out of the seven member board of directors are directly compensated.
  • The paid chief executive officer also serves as the chair of the board of directors. 
  • The treasurer of the board of directors is directly compensated.

Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

CDF does not meet this Standard because its audited financial statements for the year ended December 31, 2009:

  • Reports the organization had no fund raising expenses.

Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

CDF does not meet this standard because the most recent annual report did not include:

  • Total end of year net assets.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight, finances, and solicitation materials and is unable to verify the organization's compliance with the following 3 Standards for Charity Accountability: 5, 8, and 9.
Chronic Disease Fund (CDF) meets the remaining 14 Standards for Charity Accountability.
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Programs

               

CDF helps under-insured patients with chronic disease, cancer, or other life-altering conditions obtain medications they need. The organization assists patients throughout the United States who meet income qualification guidelines and have private insurance or a Medicare Part D plan but cannot afford the co-payments for their specialty therapeutics. CDF pays the patients' out-of-of pocket costs for their specialty therapeutics.

For the year ended December 31, 2008, CDF's program expenses were:

  
Program services 120,270,258
Total Program Expenses: $120,270,258
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Governance

               

Chief Executive : Michael Banigan , President and Founder
Compensation*:
 $301,539

Chair of the Board: Michael Banigan
Chair's Profession / Business Affiliation: President and Founder

Board Size: 7

Paid Staff Size: 26

*2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

               

Method(s) Used:

Direct mail, special events, print advertisements, grant proposals, Internet appeals, planned giving, cause-related marketing, and social media.
Since the organization does not recognize any fundraising expenses, the Alliance cannot determine what percentage of related contributions are generated through fundraising activities.
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Tax Status

               

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

               

The following information is based on CDF's audited financial statements for the year ended December 31, 2008.

Source of Funds  
Co-pay assistance program revenues 162,726,811
Investment 2,611,095
Interest income 574,091
Contributions 293,172
Special events 4,753
Total Income $166,209,922


chart



Uses of Funds as a % of Total Expenses

Programs: 96%    Administrative: 4% 

Total income   $166,209,922
  Program expenses $120,270,258
  Fund raising expenses
  Administrative expenses 4,666,936
 
Total expenses   $124,937,194
Income in Excess of Expenses   41,272,728
Beginning net assets   100,785,953
Ending net assets   142,058,681
Total liabilities   4,395,143
Total assets   $146,453,824

In the above financial section, the fundraising expense cateory is blank because the organization does not recognize any fundraising expenses. See the Evaluation Conclusions section for additional information.

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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