Diabetes Research Institute Foundation meets the 20 Standards for Charity Accountability.
BBB WGA Comment
In finding that The DRIF meets Standard 8, which calls for a minimum of 65% of the organization's total expenses be spent on program activities, BBB WGA considered the following:
According to The DRIF's audited financial statements for the year ended June 30, 2019, the organization spent $6,837,677 (64%) on program expenses. The organization reported the following:
"The DRIF is a direct support organization to the DRI (Diabetes Research Institute), which is the only organization that the Foundation raises funds for and supports in their mission to cure Type 1 Diabetes. While The DRIF raises these funds to support the DRI's mission, The DRIF, does not have any control over the institute's clinical trials, operations and outcomes, researchers, patients, doctors and management team, etc. In FY19 there were two, large multi-center FDA approved clinical trials that were delayed/on hold. FY19 actual vs. budget variance for the BIOHUB was $1,137,395 as a portion of program expenses.
1) Necessary drugs from various pharmaceuticals needed to carry out a trial were not made available to the DRI per prior agreements.
2) Patient specific health requirements per FDA have still not been met in order to carry out a trial.
3) The lead eye surgeon committed to the transplanting islet cells in the eye as part of a clinical trial departed the University of Miami."
BBB WGA found that if the organization had been able to distribute the grants, their program expense ratio would be 67%.
The Diabetes Research Institute Foundation (DRIF) is solely focused on curing diabetes. The organization provides funding to the Diabetes Research Institute (DRI) at the University of Miami, for research aimed at discovering a biological cure for diabetes. The DRIF funds studies in every phase of the DRI?s multidisciplinary research strategy, including patient-based trials where new therapies, like islet transplantation, are tested in people. Other key funded research areas include cell-based therapies for islet replacement, immune tolerance, immune regulation, regenerative medicine, and stem cell research, among others, to restore biological insulin production in people living with diabetes.
For the year ended June 30, 2019, Diabetes Research Institute Foundation's program expenses were:
Research |
$6,060,163 |
Community diabetes education |
$777,514 |
Total Program Expenses: |
$6,837,677 |
*Compensation, as reported by the charity, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note 1: Ms. O'Rourke started with the organization on January 28, 2019. As such, her compensation is only for five months of the year ended June 30, 2019.
Note 2: According to the organization's IRS Form 990 for the year ended June 30, 2019, the highest compensated employee was Lori Weintraub, Senior Vice President. Ms. Weintraub recieved compensation in the amount of $222,895.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements, Cause- related marketing (affinity credit cards, consumer product sales, etc.)
Fundraising costs were 26% of related contributions. (Related contributions, which totaled $7,770,131, 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 - consolidated for the year ended June 30, 2019.
Source of Funds |
Contributions, legacies and bequests, net |
$4,370,517 |
Special events, net |
$3,399,614 |
Realized and unrealized gains on investment securities, net |
$562,762 |
Interest and dividends, net |
$377,043 |
Grant contract and other revenue |
$222,516 |
Total Income |
$8,932,452 |
- Programs: 64%
- Fundraising: 19%
- Administrative: 17%
Total Income |
$8,932,452 |
Program expenses |
$6,837,677 |
Fundraising expenses |
$1,989,300 |
Administrative expenses |
$1,859,581 |
Other expenses |
$0 |
Total expenses: |
$10,686,558 |
Income in Excess of Expenses |
$-1,754,106 |
Beginning Net Assets |
$28,847,243 |
Other Changes In Net Assets |
$0 |
Ending Net Assets |
$27,093,317 |
Total Liabilities |
$1,961,414 |
Total Assets |
$29,054,731 |