The National Rosacea Society has reported the required Form 990 for 2009 which is late this year. The report stated that “additional time is required to compile all data necessary to file a complete and accurate return.”  This is understandable when you review the Form 990 for 2009 and compare it with previous returns, especially the one for 2008.  More information is included in the Form 990 for 2009, such as, the salaries for Glendale and Park Employees are included in the report for 2009 which amounted to a total of $183,491 while these salaries were not reported in Form 990 for 2008 by comparison.  What do the salaries of Glendale and Park have to do with the NRS?  These are private corporations that are reported on Form 990 used by the NRS as independent contractors which three of the board of directors of the NRS are employees of. [1] The Form 990 reports for 2005, 2006, and 2007 also reported these salaries, while reports previous to 2005 never mention these salaries (the report for 2008 also omits these salaries). The Internal Revenue Service obviously wants the NRS to report these salaries so the public can know how a non profit spends its donated funds.

The economy may have affected the NRS as the rest of us since revenues are down 20% from the previous year. The total revenue received by the NRS for 2009 is reported to be $633,576.  Of this total received the NRS spent $69,725 on rosacea research grants. This means that for every dollar donated to the NRS eleven cents was spent on rosacea research grants. Where did the rest of the donated funds go?  $449,824 of the total funds received which amounts to 74% went to the two independent contractors, Glendale and Park, both of which are owned by the director of the NRS (three of the board members of the NRS are also employees of Glendale and Park including the director of the NRS).  [1]

I have been following the NRS reports to the IRS by reading their Form 990 reports since 1998.  Over this period the NRS has received $9,177,103 in revenue and of this revenue $942,971 has been spent on rosacea research which is a twelve year run.  That means over the past twelve years for every dollar donated to the NRS a little over ten cents is spent on rosacea research. Where did all the rest go?  Basically over this same period 62.5% went to independent contractors that are owned by Sam Huff, Director of the NRS.  [2]

The NRS reports on Form 990 for 2009 that 22.73% of the donated funds are from public support, meaning not from private corporations, i.e., pharmaceutical companies. In 2008 this public support is reported to be 35.1% which shows that in 2009 this public support has dropped probably due to the economy. [3] The NRS web site reports $88,150 in ‘individual donations.’ [4] Rosaceans continue to support the NRS with substantial donations and usually have no clue about what the NRS reports on Form 990 which is public knowledge. If those who donate from the public would see how the NRS spends its funds for themselves and actually take a look at what the NRS reports to the Internal Revenue Service each year on Form 990, they might have some questions about how these donated funds are spent. It takes about ten minutes to take a cursory look at Form 990 to get an overall review of revenues and expenses but if you want a nut shell version of how the NRS has been doing for a twelve year period you can click here for a report.

If you want to do something about this click here.

References

[1] Sam Huff, Glendale & the NRS

[2] For a complete breakdown of revenue and expenses of the NRS from 1998 thru 2009 click here.

[3] Form 990 Report - Schedule A, page 2, Section C, 14, 15

[4] http://www.rosacea.org/about/financial.php

Copyright 2010 Brady Barrows

Glendale Communications Group, Inc. has as one of its clients the National Rosacea Society according to this page along with a long list of impressive clients if  you will notice in the category, non profit organizations:

If you click on this search and type in Glendale Communications Group you will see the following results:

You will note above the name Sam Huff as the president of Glendale Communications Group, Inc.  Notice who is the president of the NRS at this link, yes it is Sam Huff.  Here is a screen shot of the page that mentions Sam as the president of the NRS on the NRS web site:

Now notice the following information shown below (if you care to do the search yourself, go to this link and type in Park Mailing and Fulfillment:

You will note that Sam Huff is the president of Park Mailing and Fulfillment, Inc.

Now, if you take the time to scroll down this Form 990 from the NRS:

Please scroll down to the section entitled, Form 990EZ, Section VI, Five Highest Paid Independent Contractors, you will note the names of these two contractors and the compensation given to these two private contractors:

Compensation Paid to the following:

Glendale Communications Group, Inc. —– $400,291
Park Mailing & Fulfillment, Inc. —————-$118,477

Total———————————————–$518,768

Here is a snapshot of the pdf:

NRS Form 990 - Five Highest Paid Private Contractors

The total amount received by the NRS in 2008 in revenue (including donations) is noted on the first page of Form 990 and is shown to be $757,817. So of the total in revenue 68% went to two private contractors owned by the president of the NRS, Sam Huff.

68% of the total donations received by the NRS

were spent on two private contractors owned by

Sam Huff, President of the NRS.

How much did the NRS spend on rosacea research in 2008?

Here is a snapshot of

Form 990EZ, Part I, Grants and Similar Amounts Paid in Excess of $5000:

If you scroll down till you find the above page the total research grants came to $87,500.

That means that of the total donations received in 2008 the NRS spent 11.5% on rosacea research. That means that for every dollar donated to the NRS 11 and half cents went to rosacea research.

11 and half cents spent on rosacea research

for every dollar donated to the NRS.

For more info click here.