| IMPACT OF THE COVID-19 PANDEMIC ON THE CROHN'S & COLITIS FOUNDATION INC. |
IN EARLY 2020, AN OUTBREAK OF THE NOVEL STRAIN OF CORONAVIRUS ("COVID-19") EMERGED ON A GLOBAL SCALE. IN REACTION TO THE OUTBREAK, FEDERAL, STATE, AND LOCAL GOVERNMENTS ISSUED MANDATES THAT DISRUPTED NORMAL BUSINESS ACTIVITY IN EVERY SECTOR OF THE ECONOMY. THE PANDEMIC CAUSED THE FOUNDATION TO CLOSE OFFICES ACROSS THE COUNTRY AND SHIFT ITS OPERATIONS, EVENTS AND COMMUNITY-BASED PROGRAMS TO A VIRTUAL FORMAT, WHICH REMAINED IN EFFECT THROUGH 2021. DESPITE THE OPERATING CHALLENGES IT PRESENTED, THE FOUNDATION REMAINED FOCUSED ON DELIVERING ITS CORE MISSION. TOWARDS THE END OF THE 2021 FISCAL YEAR, OFFICES REOPENED AND THE FOUNDATION BEGAN TO HOLD SOME IN PERSON EVENTS WHEN STRICT SAFETY PROTOCOLS COULD BE FOLLOWED. THE FOUNDATION CONTINUES TO CLOSELY MONITOR THE ONGOING IMPACTS OF COVID-19 AND IS FOCUSED ON ENSURING A CAREFUL BALANCE BETWEEN DELIVERING ON ITS MISSION AND MAINTAINING A STRONG FINANCIAL POSITION. ACCORDINGLY, THE EXTENT TO WHICH COVID-19 MAY HAVE A FUTURE IMPACT ON THE FOUNDATION'S FINANCIAL POSITION IS UNCERTAIN. TO HELP SUSTAIN ITSELF DURING THE ECONOMIC DISRUPTION WROUGHT BY THE PANDEMIC, THE FOUNDATION SOUGHT ECONOMIC ASSISTANCE FROM THE GOVERNMENT. THE PAYCHECK PROTECTION PROGRAM ESTABLISHED BY THE CARES ACT PROVIDES SMALL BUSINESSES WITH FUNDS TO PAY UP TO 24 WEEKS OF CERTAIN NECESSARY EXPENDITURES, INCLUDING PAYROLL COSTS, RENT, AND UTILITIES. THE FOUNDATION RECEIVED A PAYCHECK PROTECTION PROGRAM FORGIVABLE LOAN OF $5,721,600 AND REPORTED THIS LOAN ON ITS BALANCE SHEET. THE ORGANIZATION APPLIED FOR FULL FORGIVENESS OF THE LOAN AS IT MET ALL OF THE CRITERIA REQUIRED BY THE SMALL BUSINESS ADMINISTRATION TO OBTAIN FORGIVENESS. THE LOAN WAS FULLY FORGIVEN IN JUNE OF 2021. THE FOUNDATION SOUGHT AND OBTAINED A SECOND PPP LOAN IN THE AMOUNT OF $2 MILLION IN FEBRUARY 2021; THIS LOAN IS CURRENTLY REPORTED AS A LIABILITY ON THE FOUNDATION'S BALANCE SHEET. THE FOUNDATION MET ALL THE CRITERIA REQUIRED FOR FORGIVENESS AND OBTAINED FORGIVENESS IN FEBRUARY 2022. THE FOUNDATION WILL RECORD THIS AS GOVERNMENTAL GRANT REVENUE ON THE SUCCEEDING YEAR'S FORM 990. |
| FORM 990, PART I, LINE 1 |
ORGANIZATION'S MISSION (CONTINUED) AND TO IMPROVE THE QUALITY OF LIFE AND CHILDREN AND ADULTS AFFECTED BY THESE DISEASES. |
| FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: |
THE FOUNDATION HAS DEFINED ITSELF BY SPONSORING THE BEST AND BRIGHTEST RESEARCHERS RESULTING IN GROUNDBREAKING STUDIES AND RESEARCH INITIATIVES TO ADVANCE THE UNDERSTANDING AND TREATMENT OF INFLAMMATORY BOWEL DISEASES ("IBD"). |
| FORM 990, PART VI, SECTION B, LINE 11B |
THE FORM 990 WAS PREPARED BY A NATIONAL ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S FINANCE DEPARTMENT. A COPY OF THE DRAFT FORM 990 WAS CIRCULATED AND REVIEWED WITH THE AUDIT COMMITTEE FOR DISCUSSION AND COMMENT. A COPY OF THE 990 IS DISTRIBUTED TO ALL BOARD OF TRUSTEES PRIOR TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C |
ALL OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES OF THE CROHN'S & COLITIS FOUNDATION ARE REQUIRED TO ANNUALLY DISCLOSE ANY CONFLICTS OF INTEREST THAT ARISE BY VIRTUE OF EMPLOYMENT, BOARD SERVICE, OR POSITION WITH THE FOUNDATION. THE FOUNDATION MONITORS COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH AN ANNUAL QUESTIONNAIRE/DISCLOSURE STATEMENT THAT IS DISTRIBUTED TO THESE INDIVIDUALS. POTENTIAL CONFLICTS ARE INVESTIGATED IMMEDIATELY. |
| FORM 990, PART VI, SECTION B, LINE 15 |
THE CROHN'S & COLITIS FOUNDATION IS DEPENDENT ON EXPERIENCED AND QUALIFIED LEADERSHIP TO ACHIEVE ITS GOALS. FACTORS SUCH AS ANNUAL GROSS REVENUES, MISSION EXPENDITURES, GEOGRAPHIC LOCATION, TENURE, AND INDIVIDUAL PERFORMANCE HELP DETERMINE SENIOR LEADERSHIP COMPENSATION. THE PRESIDENT'S COMPENSATION IS DETERMINED ON AN ANNUAL BASIS BY THE CHAIRMAN OF THE BOARD WITH APPROVAL BY THE COMPENSATION AND BENEFITS COMMITTEE USING GUIDELINES AND COMPARABLE DATA PROVIDED IN NATIONAL COMPENSATION STUDIES OF EXECUTIVES. THE FOUNDATION HAS AN INDEPENDENT COMPENSATION CONSULTANT TO REVIEW AND VALIDATE THE COMPENSATION IT PAYS ITS EMPLOYEES. THE FOUNDATION'S PRACTICE WILL BE TO CONTINUE TO RELY ON THE MOST RECENT SURVEY AND OTHER INDUSTRY DATA COMPARING THE COMPENSATION THE FOUNDATION PAYS TO ITS EMPLOYEES WITH COMPENSATION PAID TO EMPLOYEES OF OTHER NOT FOR PROFIT ORGANIZATIONS OF SIMILAR SIZE. THE ORGANIZATION COMMISSIONED ITS LAST STUDY IN 2021. |
| FORM 990, PART VI, SECTION C, LINE 19 |
THE FOUNDATION MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS AND ON ITS WEBSITE AT WWW.CROHNSCOLITISFOUNDATION.ORG. THE ORGANIZATION'S FINANCIAL STATEMENTS ARE POSTED ON ITS WEBSITE. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY WILL BE PROVIDED UPON REQUEST AT MANAGEMENT'S DISCRETION. |
| PART VIII - DONATED SERVICES |
THE FOUNDATION RECEIVES CONSIDERABLE IN-KIND CONTRIBUTIONS IN THE FORM OF DONATED PUBLIC SERVICE ANNOUNCEMENTS ON TELEVISION AND RADIO STATEMENTS AND SERVICES RECEIVED FROM PHYSICIANS AND HEALTH PROFESSIONALS THAT HAVE MADE SIGNIFICANT CONTRIBUTIONS OF THEIR TIME IN FURTHERANCE OF THE FOUNDATION'S MISSION. THE FAIR VALUE OF SUCH IN-KIND CONTRIBUTIONS IS REFLECTED IN THE STATEMENT OF ACTIVITIES AS CONTRIBUTED SERVICES AND AIRTIME REVENUE AND HEALTH PROFESSIONAL EDUCATION AND PUBLIC INFORMATION PROGRAM SERVICE EXPENSE. SINCE DONATED SERVICES ARE NOT REPORTED ON THE FORM 990, THE FOUNDATION HAS NOT REPORTED THE CONTRIBUTED SERVICES AND AIRTIME ON SCHEDULE M OR PART VIII, LINE 1(G). FOR THE YEAR ENDING DECEMBER 31, 2021, CONTRIBUTED SERVICES AND AIRTIME AMOUNTED TO $5,158,533. |
| FORM 990, PART IX, LINE 11G |
MARKETING: PROGRAM SERVICE EXPENSES 2,539,899. MANAGEMENT AND GENERAL EXPENSES 1,028,826. FUNDRAISING EXPENSES 292,081. TOTAL EXPENSES 3,860,806. TECHNOLOGY DEPARTMENT: PROGRAM SERVICE EXPENSES 2,929,608. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,929,608. EDUCATIONAL DEPARTMENT: PROGRAM SERVICE EXPENSES 1,474,276. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,474,276. |
| FORM 990, PART XI, LINE 9: |
CHANGES IN REMAINDER TRUST VALUATIONS -1,818. UNCOLLECTIBLE PLEDGES -329,933. |
Attach to Form 990 or 990-EZ.