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CHARITY REVIEW
Issued: February 2025 Expires: February 2027

Diabetes Research Institute Foundation

Standards Not Met
Standards Not Met
6 8 9
(800) 321-3437
200 South Park Road, Suite 100
Hollywood, FL, 33021
https://diabetesresearch.org
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Standards For Charity Accountability

Governance

  1. Board Oversight
  2. Board Size
  3. Board Meetings
  4. Board Compensation
  5. Conflict of Interest

Measuring Effectiveness

  1. Effectiveness Policy
  2. Effectiveness Report

Finances

  1. Program Expenses
  2. Fundraising Expenses
  3. Accumulating Funds
  4. Audit Report
  5. Detailed Expense Breakdown
  6. Accurate Expense Reporting
  7. Budget Plan

Fundraising & Info

  1. Truthful Materials
  2. Annual Report
  3. Website Disclosures
  4. Donor Privacy
  5. Cause Marketing Disclosures
  6. Complaints

Diabetes Research Institute Foundation does not meet the following 3 Standards for Charity Accountability:

Standard 6 (Board Policy on Effectiveness)
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

DRIF does not meet this Standard because:

  • The organization's effectiveness assessment policy does not specify that this assessment will take place at least once every two years.

Standard 8 (Program Service Expense Ratio)
Spend at least 65% of its total expenses on program activities.

DRIF does not meet this Standard because:

  • According to the organization's audited financial statements - consolidated - for the year ended June 30, 2023, it spent $6,722,326 or 58% of its total expenses on programs.

In response to the finding, the charity stated:

"The DRIF is a direct support organization to the Diabetes Research Institute (DRI). Like many health care fundraising organizations that support clinical trials, during the year ended June 30, 2023, DRIF continued to recover from the financial impact of the COVID-19 pandemic. During this time, we were conservative in categorizing our expenses. Rising operational costs compounded by significant leadership changes pushed program expense ratios (percentage of total expenses spent on programs) slightly below 65%. We are diligently working to improve our ratios going forward."

Standard 9 (Fund Raising Expense Ratio)
Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

DRIF does not meet this Standard because:

  • According to the organization's audited financial statements - consolidated - for the year ended June 30, 2023, its fundraising costs were 56% ($3,591,259) of related contributions, which totaled $6,395,847.

In response to the finding, the charity stated:

"The DRIF supports the Diabetes Research Institute (DRI). For the period ended June 30, 2023, like many health care fundraising organizations that support clinical trials, DRIF continued to recover from the financial impact of the COVID-19 pandemic. During this time, the organization had significant leadership changes which coupled with an event-based fundraising model had an impact on our ratios. The Foundation is striking a better balance between event-based fundraising, which is relatively expensive to execute, and other fundraising channels that will prove more cost effective. This pivot has required investment in personnel, infrastructure and training, however it will allow the DRIF to spend less on fundraising over time. As we invest in our future, we remain fully committed to fiscal prudence, expert stewardship of donor funds and significant improvements in our ratios."

Diabetes Research Institute Foundation meets the remaining 17 Standards for Charity Accountability.

Stated Purpose:
"to provide the Diabetes Research Institute with the funding to cure diabetes now."

Year, State Incorporated:
1974, FL

The Diabetes Research Institute Foundation (DRIF) provides funding to the Diabetes Research Institute (DRI) at the University of Miami, for research aimed at discovering a biological cure for diabetes. The organization funds studies in every phase of DRI's multidisciplinary research strategy, including patient-based trials where new therapies, like islet transplantation, are tested in people. Other funded research areas include cell-based therapies for islet replacement, immune tolerance, immune regulation, regenerative medicine, and stem cell research to restore biological insulin in people living with diabetes.

For the year ended June 30, 2023, Diabetes Research Institute Foundation's program expenses were:

Research $6,255,837
Community diabetes education $466,489
Total Program Expenses $6,722,326

Chief Executive
Michael J. Burton, Chief Executive Officer

Compensation*
$380,429

Chair of the Board
William J. Fishlinger

Chair's Profession / Business Affiliation
Chairman and Chief Executive Officer, Gramercy Risk Holdings, LLC

Board Size
22

Paid Staff Size
18

*2023 compensation, as reported by the organization, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Direct mail appeals, Radio, Special events, Print advertisements

Fundraising costs were 56% of related contributions. (Related contributions, which totaled $6,395,847, are donations received as a result of fundraising activities.)

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.

The following information is based on Diabetes Research Institute Foundation's audited financial statements for the year ended June 30, 2023.

Source of Funds
Contributions, net $3,478,520
Special events, net $2,818,999
Investment income, net $2,109,793
Other income $104,281
In-kind contributions $98,328
Total Income $8,609,921

Programs: 58% Fundraising: 31% Administrative: 11%

Total Income $8,609,921
Total expenses: $11,640,223
  Program expenses $6,722,326
  Fundraising expenses $3,591,259
  Administrative expenses $1,326,638
  Other expenses $0
Income in Excess of Expenses $-3,030,302
Beginning Net Assets $29,980,454
Other Changes In Net Assets $0
Ending Net Assets $26,950,152
Total Liabilities $1,233,220
Total Assets $28,183,372

Note: According to DRIF's audited financial statements - consolidated - for the year ended June 30, 2023, the organization received in-kind contributions totaling $98,328 in the form of advertising ($92,767) and auction items ($5,561).

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 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 International Association of Better Business Bureaus.

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

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Report completed by:
BBB Wise Giving Alliance