When people think of St. Jude’s, they often associate the organization with the children’s research hospital but St Jude’s is actually two organizations:

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• St. Jude Children’s Research Hospital (St Jude): the 77-bed children’s hospital that provides research and medical care; and
• American Lebanese Syrian Associated Charities (ALSAC): the fundraising arm; an organization that exists to raise funds for St. Jude’s

Although most non-profits do not separate fundraising from services, St. Jude’s does, so both organizations need to be analyzed because St. Jude’s relies on ALSAC for the majority of it’s revenue and has a beneficial interest in the organization.

The following information is based on the most recent Form 990’s (2020 for the year ending June 30, 2021) submitted by ALSAC and St. Jude to the IRS.

ALSAC

ALSAC is managed by 41 voting members (directors) of the governing body (board of directors) of whom 38 are independent; 28 of the 41 (68%) are male while 13 of the 41 (32%) are female (note: gender identification is not reported on the Form 990 so the numbers are based on names and a google search).

ALSAC reported total revenue of $2.4 billion (compared to $1.9 million the prior year). They spent $625 million (26% of revenue) on fundraising expenses, gave St Jude’s $997 million (42% of revenue) and put the remaining unspent revenue – $781 revenue – in the fund assets (think savings).

Of the $625 million in fundraising expenses, $182 million was spent on compensation for the 1,939 employees who received an average compensation of $94,000. 469 employees received more than $100,000 with the 10 most highly compensated employees reported to be:

• $1,558,983: James R Downing, Ex-Officio Director (compensation from St Jude)
• $1,068,828: Richard C Shadyac, CEO and Ex-Officio Director
• $ 693,285: Emily S Greer, Chief Admin Officer
• $ 666,106: Anurag Pandit, Chief Investment Officer
• $ 657,794: Emily Callahan, Chief Marketing and Experience Officer
• $ 645,450: Robert Machen, COO
• $ 603,398: Sara Hall, Chief Legal Officer
• $ 597,641: George Shadroui, Chief Strategy Officer
• $ 492,867: Abed Abdo, CFO
• $ 451,521: Jeffrey Pearson, Former CFO

7 of the 10 most highly compensated employees are male while 3 of the 10 are female.

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The most highly compensated employee was James Downing, who received more than $7 million in compensation over the past 5 years:

• 2021: $1,558,983
• 2020: $2,324,885
• 2019: $1,278,550
• 2018: $1,202,948
• 2017: $1,087,044

ALSAC paid for health or social club dues or initiation fees. For more information see Schedule J, Part III, Supplemental Information on the Form 990.

ALSAC established a non-qualified deferred compensation plan. Payments made during the year were made to:

• Richard C Shadyac: $64,529
• Jeffrey T Pearson: $8,028
• Emily S Greer: $56,229
• George Shadroui: $38,017
• Emily Callahan: $30,466
• Sara Hall: $31,808
• Anurag Pandit: $21,732
• Robert Machen: $11,523

172 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated independent contractors were reported to be:

• $6.8 million: Infocision Management Corp, of Akron, OH for call center
• $6.0 million: Innerworkings, Inc, of Chicago, IL, for print materials production
• $5.6 million: Eaglecom, Inc. of Toronto, Ontario, Canada for media purchasing
• $3.6 million: Infogroup, of Omaha, NE for marketing and data
• $3.5 million: Vaco Memphis, LLC of Brentwood, TN for IT contract labor

ALSAC conducted 153 fundraising events that generated $17 million. After deducting contributions (an IRS requirement) of $8 million, gross income was $9 million. ALSAC spent $1.4 million on food, beverages, prizes, rent facilities, and other costs, leaving $7.6 million in net income to the organization.

It is important to note that Infocision Management Corp, a phone solicitor who operates the call center, was responsible for raising $4.8 million, but charged ALSAC $4.7 million for their services.

To read the ALSAC IRS Form 990 (2020 for the year ending June 30, 2021), click here.

ST JUDE

The governing body for St Jude is the same as ALSAC: made up of 41 voting members (directors), 38 of whom are independent. Of the 41 voting members listed on the Form 990, 28 (68%) are male while 13 (32%) are female (note: the Form 990 does not report gender identification so the numbers are based on names and google searches).

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St. Jude reported total revenue of $1.2 billion, of which $975 million came from ALSAC. Expenses totaled $1.1 billion (including $93 million in depreciation) leaving approximately $100 million put into fund assets (think savings).

Of the $1.2 billion in expenses, $628 million was used to compensate 5,693 employees who received an average compensation of $110,000. 1,509 employees received more than $100,000 in compensation. The 12 most highly compensated employees were reported to be:

• $1,558,983: James R Downing, President, CEO
• $1,496,461: Charles M Roberts, EVP, Director, Cancer Center
• $1,273,466: Matthew J Krasin
• $1,068,828: Richard C Shadyac, Ex-Officio Director (from ALSAC)
• $1,013,178: Thomas E Merchant, Chair
• $1,006,524: Ellis Neufeld, EVP, Clinical Director
• $ 992,591: Andrew Davidoff, Chair
• $ 926,569: Douglas R Green, Chair
• $ 869,393: Ching-Hon Pui, Chair
• $ 862,285: James I Morgan, EVP, Scientific Director
• $ 852,538: Patricia A Keel, SVP, CFO
• $ 809,803: Carlos Rodriquez-Galindo, EVP, Chair

10 of the 12 (83%) most highly compensated employees are male while 2 (17%) are female.

Employee listed above who are also listed as highly compensated employees on the ALSAC list did not receive compensation from both affiliate organizations; they are simply listed on both lists because the organizations are related.

St. Jude’s paid for first class or charter travel. See Schedule J, Part III, Supplemental Information for more detail.

St Jude’s made gross up payments and tax indemnifications. See Schedule J, Part III, Supplemental Information for more detail.

Mary Anna Quinn, the former EVP and Chief Admin Officer received severance payments and compensation totaling $222,662 (and $277,400 the prior year).

297 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated employees were reported to be:

• $139 million: Flintco, LLC, of Memphis, TN for construction contractor
• $ 6 million. G4S Secure Solutions, of Jupiter, FL for security services
• $ 6 million: Cerner Corp, of Kansas City, MO for software support
• $ 6 million. Methodist Healthcare Memphis, of Memphis, TN for medical services
• $ 5 million: Dynamix Group, of Atlanta, GA for software support

To read the IRS Form 990 for St Jude (for the year ending June 30, 2021), click here

To read the IRS Form 990 for ALSAC (for the year ending June 30, 2021), click here.

Source: https://t-tees.com
Category: WHY