2020-09-25T17:05:04-07:00 2019-12-31 990 2019-01-01 471442997 MEDICAL DEBT RESOLUTION INC MEDI 8446373328 80 THEODORE FREMD AVE RYE NY 10580 Allison Sesso Executive Director 8446373328 2020-09-22 151.205.180.161 2019 2021-01-29 14:40:06Z RIP MEDICAL DEBT ALLISON SESSO 80 THEODORE FREMD AVE RYE NY 10580 10067024 0 X WWW.RIPMEDICALDEBT.ORG X 2014 NY ACQUIRE AND ABOLISH, I.E. FORGIVE, MEDICAL DEBT OWED BY INDIVIDUALS EXPERIENCING POVERTY OR OTHER HARDSHIP (PLEASE SEE SCHEDULE O FOR A MORE COMPLETE DESCRIPTION OF THE ORGANIZATION'S MISSION) 9 7 9 0 0 0 5339832 9891080 120755 174791 0 1153 0 0 5460587 10067024 0 0 0 0 806827 1041977 242000 528000 699495 4196108 5514817 5244935 7084794 215652 2982230 1577897 4572339 293794 306006 1284103 4266333 X ACQUIRE AND ABOLISH, I.E. FORGIVE, MEDICAL DEBT OWED BY INDIVIDUALS EXPERIENCING POVERTY OR OTHER HARDSHIP (PLEASE SEE SCHEDULE O FOR A MORE COMPLETE DESCRIPTION OF THE ORGANIZATION'S MISSION) 0 0 4668837 0 MEDICAL DEBT RELIEF: LOCATE, ACQUIRE, AND ABOLISH, I.E. FORGIVE, MEDICAL DEBT FOR INDIVIDUALS WHO ARE EXPERIENCING POVERTY, GENERALLY DEFINED AS EARNING 200% OR LESS THAN THE FEDERAL POVERTY LEVEL, OR WHO ARE EXPERIENCING HARDSHIPS THAT MAKE PAYING OFF THE DEBT DIFFICULT OR IMPOSSIBLE. EXAMPLES OF HARDSHIPS INCLUDE EXCESSIVE MEDICAL DEBT (I.E. OUT OF POCKET MEDICAL EXPENSES AMOUNTING TO MORE THAN 5% OF GROSS INCOME), EXCESSIVE NON-MEDICAL DEBT, JOB LOSS, NUMEROUS OR SICK DEPENDENTS, ETC. 386723 174790 MEDICAL DEBT RESEARCH: ACQUIRE AND ABOLISH MEDICAL DEBT IN CONNECTION WITH RESEARCH CONDUCTED BY MAJOR UNIVERSITIES INTO THE ECONOMIC AND SOCIAL EFFECTS OF MEDICAL DEBT. 183780 0 EDUCATION & OUTREACH: CONDUCT CONFERENCES AND PUBLISH WEBSITES, BOOKS, AND ARTICLES TO RAISE PUBLIC AWARENESS OF THE ECONOMIC AND SOCIAL EFFECTS OF MEDICAL DEBT. 24000 0 ADDITIONAL DETAILS PROVIDED IN SCHEDULE O 24000 0 0 5263340 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 19 0 1 9 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 7 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VA VT WA WI WV WY X ALLISON SESSO 8446373328 80 THEORDORE FREMD AVE RYE NY 10580 X CRAIG ANTICO DIRECTOR & DEPT HEAD - DEBT OPERATIONS 40 0 X 304511 0 0 CHRISTOPHER SIMMONS TREASURER 40 0 X 167244 0 0 HAROLD JERRY ASHTON DIRECTOR & DEPT HEAD - EDUCATION & OUTREACH 40 0 X 132000 0 0 DAVID REYNOLDS DEPT HEAD - INFORMATION SYSTEMS 40 0 X 88038 0 0 WILLIAM VON MUEFFLING DIRECTOR & BOARD CHAIR 5 0 X X 0 0 0 MICHELE MASUCCI DIRECTOR & SECRETARY 1 0 X X 0 0 0 TED SANN DIRECTOR & EXECUTIVE DIRECTOR 30 0 X X 0 0 0 ROBERT GOFF DIRECTOR 1 0 X 0 0 0 JOSE PENABAD DIRECTOR 1 0 X 0 0 0 ELIZABETH MARINCOLA DIRECTOR 1 0 X 0 0 0 JEFF SMEDSRUD DIRECTOR 1 0 X 0 0 0 691793 0 0 4 0 1 0 SANDRA DAVIS LLC DBA DONORLY 1460 BROADWAY New York NY 10036 FUNDRAISING COUNSEL 528000 1 0 0 0 0 0 9891080 639457 9891080 PROGRAM SERVICE REVENUE 900099 174791 174791 0 0 0 0 0 0 174791 1153 0 0 1153 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10067024 174791 0 1153 X 694168 380901 226770 86497 291911 214122 56134 21655 3239 3239 52659 36442 8533 7684 134433 16514 117919 112690 112690 528000 528000 390711 126088 251122 13501 14579 14132 447 145986 22966 109519 13501 65587 3814 57685 4088 112040 112040 88201 30944 33135 24122 1123 398 725 8525 8525 9791 9791 COST OF DEBT ABOLISHED: SEE SCHEDULE O 4445361 4445361 0 0 CAPITALIZED LABOR - INTRNL USE SOFTWARE -14210 -14210 0 0 0 0 0 0 7084794 5263340 1121959 699495 1200703 2964945 890 510701 314136 167001 8912 179141 26746 682801 28973 18998 14646 9975 45911 11864 11864 1577897 4572339 293794 306006 293794 306006 X 298890 1014787 985213 3251546 1284103 4266333 1577897 4572339 2982230 0 0 0 0 0 X X 0 1 X 1 0 X 11416 259534 2163479 5339832 9891081 17665342 0 0 0 0 0 0 0 0 0 0 0 0 11416 259534 2163479 5339832 9891081 17665342 643650 17021692 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17665342 295545 0.96356 0.9384 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 0 0 0 0 27704 18215 9489 0 1269 783 486 9975 10259537 0 192513 0 0 192513 10067024 0 0 0 10067024 7277307 192513 0 0 0 192513 7084794 0 0 0 7084794 Schedule D, Part X INTANGIBLE ASSETS AS REPORTED ON FORM 990, PART X, LINE 14: CAPITALIZED PUBLIC WEBSITE COSTS NET OF AMORTIZATION...................$12,985 CAPITALIZED INTERNAL USE SOFTWARE NET OF AMORTIZATION................$32,926 TOTAL INTANGIBLE ASSETS PER FORM 990 PART X, LINE 14.........................$45,911 X X X X 1 DONORLY 1460 BROADWAY NEW YORK NY 10036 AS FUNDRAISING COUNSEL FOR THE ORGANIZATION, THE FIRM OF SANDRA DAVIS, LLC DBA "DONORLY", PROVIDES A TEAM OF SKILLED PERSONNEL WHO MANAGE SUBSTANTIALLY ALL BACK OFFICE ACTIVITIES ASSOCIATED WITH THE ORGANIZATION'S FUNDRAISING AND DEVELOPMENT FUNCTION, INCLUDING CAMPAIGN DEVELOPMENT AND EXECUTION, DONOR RESEARCH, GIFT ACKNOWLEDGMENT, GRANT APPLICATIONS, DONOR MANAGEMENT SYSTEMS MAINTENANCE, IN ADDITION TO PROVIDING ADVICE ON HIGH LEVEL FUNDRAISING AND DEVELOPMENT STRATEGY. IN PERFORMING THESE FUNCTIONS, DONORLY IS EITHER DIRECTLY OR INDIRECTLY RESPONSIBILITY FOR VIRTUALLY ALL REVENUE, EXCEPT IN-KIND REVENUE. 0 0 528000 -528000 0 528000 -528000 AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VA VT WA WI WV WY Schedule G, Part I, Line 2b LIST OF TEN HIGHEST PAID FUNDRAISERS: (I) NAME OF FUNDRAISER: DONORLY (II) ADDRESS OF FUNDRAISER: 1460 BROADWAY, NEW YORK, NY 10036 ................. PART I, LINE 2B, COLUMN (V): AS FUNDRAISING COUNSEL FOR THE ORGANIZATION, THE FIRM OF SANDRA DAVIS, LLC DBA "DONORLY", PROVIDES A TEAM OF SKILLED PERSONNEL WHO MANAGE SUBSTANTIALLY ALL BACK OFFICE ACTIVITIES ASSOCIATED WITH THE ORGANIZATION'S FUNDRAISING AND DEVELOPMENT FUNCTION, INCLUDING CAMPAIGN DEVELOPMENT AND EXECUTION, DONOR RESEARCH, GIFT ACKNOWLEDGMENT, GRANT APPLICATIONS, DONOR MANAGEMENT SYSTEMS MAINTENANCE, IN ADDITION TO PROVIDING ADVICE ON HIGH LEVEL FUNDRAISING AND DEVELOPMENT STRATEGY. IN PERFORMING THESE FUNCTIONS, DONORLY IS EITHER DIRECTLY OR INDIRECTLY RESPONSIBLE FOR VIRTUALLY ALL REVENUE, EXCEPT IN-KIND REVENUE. X X 0 0 0 0 0 0 0 0 0 CRAIG ANTICO DIRECTOR & DEPT HEAD - DEBT OPERATIONS 240000 0 36000 0 28511 0 0 0 0 0 304511 0 0 0 Schedule J, Part II IN 2019, THE ORGANIZATION ABOLISHED $1,673,250,259 OF MEDICAL DEBT, HELPING 1,260,529 INDIVIDUALS AND FAMILIES, COMPARED TO $505,577,211 OF DEBT AND 180,286 INDIVIDUALS AND FAMILIES IN THE PRIOR YEAR. IN RECOGNITION OF HIS ROLE, AS DIRECTOR OF DEBT OPERATIONS, IN ACHIEVING THESE RESULTS, THE BOARD OF DIRECTORS APPROVED A BONUS OF $36,000 FOR MR. ANTICO IN 2019. ALSO, THE BOARD APPROVED ADDITIONAL FULLY TAXABLE COMPENSATION OF $28,511 IN LIEU OF HIS PARTICIPATION IN A GROUP HEALTH INSURANCE PLAN. Form 990, Part I, Line 1 MISSION OF MEDICAL DEBT RESOLUTION, INC., DBA "RIP MEDICAL DEBT" RIP MEDICAL DEBT IS A 501(C)(3) NONPROFIT WHOSE MISSION IS TO LOCATE, PURCHASE AND THEN ABOLISH UNPAID AND UNPAYABLE MEDICAL DEBT AS A BENEFIT TO SOCIETY AS WELL AS THE DEBTOR. RIP WAS FOUNDED IN 2014 BY TWO FORMER COLLECTION INDUSTRY EXECUTIVES WHO DECIDED TO PUT THEIR EXPERTISE TO WORK TO FORGIVE DEBT RATHER THAN COLLECT IT. USING DEMOGRAPHIC AND CONSUMER CREDIT DATA, RIP ANALYZES BUNDLED DEBT PORTFOLIOS HELD BY HEALTHCARE PROVIDERS AND SECONDARY MARKET DEBT SELLERS TO IDENTIFY ACCOUNTS MEETING ITS CRITERIA FOR FINANCIAL RELIEF. RIP THEN NEGOTIATES TO BUY THESE PORTFOLIOS AT THEIR CURRENT INDUSTRY MARKET VALUE, OFTEN PAYING LESS THAN A PENNY ON THE DOLLAR. ONCE PURCHASED, RIP FORGIVES THE DEBT ON BEHALF OF THE DONOR, AT NO COST OR TAX CONSEQUENCE TO THE DEBTOR. THE DEBT IS ALSO REMOVED FROM THE CREDIT REPORTS OF THE DEBTOR. WHY MEDICAL DEBT? * UNLIKE OTHER DEBT, MEDICAL DEBT IS NOT A DEBT OF "CHOICE", I.E. PEOPLE DO NOT "CHOOSE" TO GET SICK * DEBTORS ARE THE "COLLATERAL DAMAGE" OF A FLAWED HEALTHCARE, PHARMA AND INSURANCE SYSTEM * 43 MILLION AMERICANS NOW OWE ABOUT $75 BILLION IN PAST-DUE MEDICAL DEBT * MORE THAN 1 IN 3 AMERICANS STRUGGLE TO AFFORD THE COST OF THEIR MEDICAL CARE * MEDICAL DEBT CONTRIBUTES TO MORE THAN 60 PERCENT OF ALL BANKRUPTCIES IN THE USA * 75 PERCENT OF ALL INDIVIDUALS IN MEDICAL BANKRUPTCY HAD HEALTH INSURANCE COVERAGE * MEDICAL DEBT LINGERS ON A PERSON'S CREDIT REPORT, MAKING IT HARDER TO PURCHASE OR RENT A HOME, BUY A VEHICLE, OBTAIN A CREDIT CARD, OR EVEN GAIN EMPLOYMENT. WHO QUALIFIES FOR RIP DEBT FORGIVENESS? * HOUSEHOLDS EARNING LESS THAN TWO TIMES THE FEDERAL POVERTY LEVEL * PERSONS FACING INSOLVENCY, DEFINED AS HAVING DEBTS GREATER THAN ASSETS * THOSE EXPERIENCING OTHER TYPES OF FINANCIAL HARDSHIP HOW IS A GIFT TO RIP DIFFERENT FROM A GIFT TO OTHER CHARITIES? BECAUSE RIP BUYS DEBT IN BULK, SPECIFICALLY TARGETING PEOPLE UNABLE TO PAY, IT IS ABLE TO BUY DEBT AT A LARGE DISCOUNT, OFTEN PAYING LESS THAN A PENNY ON THE DOLLAR. EVEN AFTER TAKING INTO ACCOUNT RIP'S OTHER PROGRAM AND ADMINISTRATIVE COSTS, A DONOR'S GIFT IS ABLE TO PROVIDE BENEFITS FAR GREATER THAN THE AMOUNT OF THE GIFT ITSELF. BECAUSE OF THIS LEVERAGE EFFECT, OVER ITS SHORT HISTORY RIP HAS BEEN ABLE TO FORGIVE MORE THAN $2.6 BILLION OF MEDICAL DEBT, PROVIDING MORE THAN $100 OF DEBT RELIEF FOR EACH DOLLAR DONATED. NO OTHER CHARITY WE ARE AWARE OF PROVIDES THIS KIND OF RETURN ON A DONOR'S INVESTMENT. Form 990, Part I, Line 3 CHANGES TO TOTAL NUMBER OF DIRECTORS FROM DECEMBER 31, 2019 TO FORM 990 FILING DATE: ON JANUARY 9, 2020, JONATHAN LINDSEY WAS ELECTED TO THE BOARD OF DIRECTORS. ON AUGUST 24, 2020, CRAIG ANTICO RESIGNED FROM THE BOARD OF DIRECTORS AND, IN A RESOLUTION PASSED BY THE BOARD OF DIRECTORS, WAS AWARDED THE TITLE, DIRECTOR EMERITUS, WHICH UNDER THE AMENDED BYLAWS OF THE CORPORATION IS NOT COUNTED AS A MEMBER OF THE BOARD FOR PURPOSES OF VOTING AND ESTABLISHING A QUORUM. AFTER TAKING INTO ACCOUNT THE CHANGES DESCRIBED ABOVE, THE TOTAL NUMBER OF DIRECTORS OF THE CORPORATION AS OF THE DATE OF THIS FILING IS 9. Form 990, Part I, Line 4 CHANGES TO NUMBER OF INDEPENDENT DIRECTORS FROM DECEMBER 31, 2019 TO FORM 990 FILING DATE: ON JANUARY 9, 2020, JONATHAN LINDSEY WAS ELECTED TO THE BOARD AS AN INDEPENDENT DIRECTOR. AFTER TAKING INTO ACCOUNT THIS CHANGE, THE NUMBER OF INDEPENDENT DIRECTORS OF THE CORPORATION AS OF THE DATE OF THIS FILING IS 8. Form 990, Part III, Line 4d DESCRIPTION OF TECHNOLOGY INFRASTRUCTURE DEVELOPMENT PROGRAM: RESEARCH, DESIGN, AND DEVELOP TECHNOLOGIES TO DIRECTLY SUPPORT THE ORGANIZATION'S CORE MISSION OF LOCATING, ACQUIRING, AND ABOLISHING MEDICAL DEBT. Form 990, Part VI, Section A, Line 2 FAMILY RELATIONSHIPS: TED SANN, DIRECTOR, IS THE BROTHER-IN-LAW OF WILLIAM VON MUEFFLING, DIRECTOR AND BOARD CHAIR. Form 990, Part VI, Section B, Line 11b FORM 990 REVIEW PROCESS: A COMPLETE COPY OF THIS FORM 990 HAS BEEN REVIEWED BY BOTH THE AUDIT COMMITTEE AND THE FULL BOARD OF DIRECTORS PRIOR TO FILING. THIS PROCESS IS PRESCRIBED IN THE CHARTER OF THE ORGANIZATION'S AUDIT COMMITTEE. Form 990, Part VI, Section B, Line 12c THE ORGANIZATION ENFORCES THE CONFLICT OF INTEREST POLICY BY MONITORING KNOWN RELATIONSHIPS, QUESTIONNAIRES, AND NOTING ANY CHANGES IN DISCLOSED INFORMATION. ANY CONFLICT IS REVIEWED BY THE BOARD BEFORE A DECISION IS MADE AS TO WHETHER TO APPROVE THE TRANSACTION. Form 990, Part VI, Section B, Line 15 PROCESS FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S EXECUTIVE DIRECTOR: IN 2019, THE ORGANIZATION'S EXECUTIVE DIRECTOR, TED SANN, SERVED WITHOUT COMPENSATION. IN JANUARY 2020, THE ORGANIZATION HIRED A NEW EXECUTIVE DIRECTOR, WHOSE COMPENSATION WAS DETERMINED BY THE INDEPENDENT MEMBERS OF THE BOARD IN ACCORDANCE WITH WRITTEN POLICY, AND INFORMED BY A REPORT OF INDEPENDENT COMPENSATION CONSULTANTS, INCLUDING MARKET SURVEYS, AND OTHER INDEPENDENT RESEARCH.PROCESS FOR DETERMINING COMPENSATION OF OFFICERS AND OTHER KEY EMPLOYEES: IN 2019, THE COMPENSATION OF OFFICERS AND KEY EMPLOYEES WAS DETERMINED BY THE INDEPENDENT MEMBERS OF THE BOARD IN ACCORDANCE WITH WRITTEN POLICY, INFORMED, WHERE APPROPRIATE BY A REPORT OF INDEPENDENT COMPENSATION CONSULTANTS AND OTHER INDEPENDENT RESEARCH, INCLUDING MARKET SURVEYS. COMPENSATION COMMITTEE: IN 2020, THE BOARD ESTABLISHED A NEW COMPENSATION COMMITTEE, COMPRISED OF AT LEAST THREE (3) INDEPENDENT DIRECTORS, WITH RESPONSIBILITY FOR ADVISING THE INDEPENDENT MEMBERS OF THE BOARD IN SETTING THE COMPENSATION OF THE ORGANIZATION'S EXECUTIVE DIRECTOR, OFFICERS, AND OTHER KEY EMPLOYEES. CURRENTLY THE NUMBER OF PERSONS SERVING ON THE COMPENSATION COMMITTEE IS FOUR (4). Form 990, Part VI, Section C, Line 17 STATES TO WHICH ORGANIZATION SUBMITS A COPY OF FORM 990: AL,AK,AZ,AR,CA,CO,CT,DC,FL,GA,HI,IL,KS,KY,LA,ME,MD,MA,MI,MN,MS,NV,NH,NJ,NM,NC,ND,OH,OK,OR,PA,RI,SC,TN,UT,VA,WA,WV,WI Form 990, Part VI, Section C, Line 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. WHERE REQUIRED, THE ORGANIZATION ALSO FURNISHES THESE DOCUMENTS TO STATE AUTHORITIES. Form 990, Part VII, Section A, Line 1a CHANGES TO TOTAL NUMBER OF DIRECTORS FROM DECEMBER 31, 2019 TO FORM 990 FILING DATE: ON JANUARY 9, 2020, JONATHAN LINDSEY WAS ELECTED TO THE BOARD OF DIRECTORS. ON AUGUST 24, 2020, CRAIG ANTICO RESIGNED FROM THE BOARD OF DIRECTORS AND, IN A RESOLUTION PASSED BY THE BOARD OF DIRECTORS, WAS AWARDED THE TITLE, DIRECTOR EMERITUS, WHICH UNDER THE AMENDED BYLAWS OF THE CORPORATION IS NOT COUNTED AS A MEMBER OF THE BOARD FOR PURPOSES OF VOTING AND ESTABLISHING A QUORUM. AFTER TAKING INTO ACCOUNT THE CHANGES DESCRIBED ABOVE, THE TOTAL NUMBER OF DIRECTORS OF THE CORPORATION AS OF THE DATE OF THIS FILING IS 9.CHANGES TO OFFICERS FROM DECEMBER 31, 2019 TO FORM 990 FILING DATE: AT A MEETING OF THE ORGANIZATION'S BOARD OF DIRECTORS ON DECEMBER 18, 2019, ALLISON SESSO WAS ELECTED TO THE POSITION OF EXECUTIVE DIRECTOR AS OF JANUARY 27, 2020, SUCCEEDING TED SANN. AT A MEETING OF THE ORGANIZATION'S BOARD OF DIRECTORS ON SEPTEMBER 16, 2020, JOSE PENABAD WAS ELECTED TO SERVE AS TREASURER, SUCCEEDING CHRISTOPHER SIMMONS. Form 990, Part IX, Line 24a - 24d DETAILS OF COST OF DEBT ABOLISHED........ PURCHASES - DEBT PORTFOLIOS: 3,845,633; PURCHASES - DONATED DEBT: 639,457; PURCHASES - DEBT ANALYSIS FEES: 48,700; PURCHASES - DEBT PLATFORM FEES: 42,147; PURCHASES - ANALYTICAL DATA: 199,567; DE/(IN)CREASE IN DEFERRED DEBT COSTS: (541,001); MAILING SERVICES: 210,858 ............... TOTAL COST OF DEBT ABOLISHED: 4,445,361 Form 990, Part XII, Line 2c DURING 2019, THE ORGANIZATION'S INDEPENDENT DIRECTORS HAD RESPONSIBILITY UNDER THE ORGANIZATION'S FINANCIAL REPORTING POLICY FOR OVERSIGHT OF THE ORGANIZATION'S AUDIT AND SELECTION OF AUDITOR. IN 2020, THE ORGANIZATION ESTABLISHED AN AUDIT COMMITTEE AND ASSIGNED IT RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT, SELECTION OF AUDITORS, REVIEW OF THE ORGANIZATION'S FORM 990, AND ASSESSMENT OF INTERNAL CONTROLS.