2015-12-04T13:37:20-06:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP 9365 COUNSELORS ROW STE 200 INDIANAPOLIS IN 46240 990 2014-01-01 611462062 CHRONIC DISEASE FUND INC CHRO 9726087200 6900 NORTH DALLAS PARKWAY NO 200 PLANO TX 75024 CLORINDA D WALLEY EXECUTIVE DIRECTOR 9727120201 2015-12-03 1 KAREN A GRIES P00078514 3175749100 2014 2016-03-07 17:11:31Z GOOD DAYS FROM CDF CLORINDA D WALLEY 6900 NORTH DALLAS PARKWAY NO 200 PLANO TX 75024 84114222 0 X WWW.GOODDAYSFROMCDF.ORG X 2003 TX THROUGH ITS OPERATION OF A CO-PAY ASSISTANCE PROGRAM, THE CHRONIC DISEASE FUND PROVIDES FINANCIAL ASSISTANCE TO INDIVIDUALS WITH LOW OR MODERATE INCOME WHO ARE SUFFERING FROM CHRONIC DISEASES, CANCER, OR OTHER LIFE-ALTERING CONDITIONS SO THAT SUCH INDIVIDUALS CAN AFFORD AND OBTAIN THE FDA-APPROVED DRUGS NECESSARY FOR THE TREATMENT OF THEIR CONDITION. 4 4 70 3 23903 -3752 249868305 78320491 0 164032 363801 159062 17657 5470637 250249763 84114222 194448004 170628203 0 0 2924209 2923215 258745 387887 1308524 16889330 18508006 214520288 192447311 35729475 -108333089 356410298 232621843 32314544 14593366 324095754 218028477 X THROUGH ITS OPERATION OF A CO-PAY ASSISTANCE PROGRAM, THE CHRONIC DISEASE FUND PROVIDES FINANCIAL ASSISTANCE TO INDIVIDUALS WITH LOW OR MODERATE INCOME WHO ARE SUFFERING FROM CHRONIC DISEASES, CANCER, OR OTHER LIFE-ALTERING CONDITIONS SO THAT SUCH INDIVIDUALS CAN AFFORD AND OBTAIN THE FDA-APPROVED DRUGS NECESSARY FOR THE TREATMENT OF THEIR CONDITION. 0 0 187674703 170628203 434501 PROVIDING ASSISTANCE TO UNDER-INSURED PATIENTS WITH CHRONIC DISEASE, CANCER OR OTHER LIFE-ALTERING CONDITIONS TO HELP THEM OBTAIN THE FDA-APPROVED MEDICATIONS THEY NEED. WE ASSIST PATIENTS THROUGHOUT THE UNITED STATES WHO MEET INCOME QUALIFICATION GUIDELINES AND HAVE PRIVATE INSURANCE OR A MEDICARE PART D PLAN, BUT CANNOT AFFORD THE CO-PAYMENTS FOR THEIR FDA-APPROVED DRUGS. WHENEVER ADMINISTRATIVELY FEASIBLE (AND IN MOST CASES), WE PAY THE PATIENTS OUT-OF-POCKET COSTS FOR THEIR FDA-APPROVED DRUGS DIRECTLY TO THE APPLICABLE PHARMACIES OR PHYSICIANS. THE ORGANIZATION PROVIDED FINANCIAL ASSISTANCE TO 99,269 PATIENTS AND SERVICES 115,116 INDIVIDUALS. 187674703 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 1 36 0 70 1 1 1 0 0 0 0 0 0 0 0 0 X 4 4 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 0 0 AL AK AR CA CT DC FL GA HI IL KS KY MD MA MI MN MS NC NH NJ NM NY OR PA RI SC TN UT VA WV WI X DAWN DRENTHE 9726087200 6900 DALLAS PARKWAY STE 200 PLANO TX 75024 HON GLEN M ASHWORTH BOARD CHAIRMAN 2.00 X X 17250 0 0 TRICIA FREELS PHR SECRETARY & TREASURER 2.00 X X 14750 0 0 SETH KAMBER TRUSTEE 2.00 X 14750 0 0 DAVID LEVINE MD FACEP TRUSTEE 2.00 X 14750 0 0 CLORINDA WALLEY EXECUTIVE DIRECTOR, EX-OFF 40.00 X 240250 0 24120 CHARLES MOORMAN IT DIRECTOR 40.00 X 139798 0 15453 ROBERT SMITH SOFTWARE ENGINEER 40.00 X 108048 0 1412 MARGARET FOLEY MARKETING DIRECTOR 40.00 X 120538 0 24530 670134 0 65515 4 0 1 0 VENABLE LLP PO BOX 62727 BALTIMORE MD 21264 LEGAL SERVICES 2574000 LEVICK STRATEGIC COMMUNICATIONS 1900 M STREET NW WASHINGTON DC 20036 PUBLIC RELATIONS 523813 DIMACO PRINTING 1100 VALWOOD PKWY CARROLLTON TX 75006 PRINTING 320608 PURSUANT GROUP 5151 BELT LINE ROAD DALLAS TX 75254 MARKETING 226540 AMS PICTURES 16988 NORTH DALLAS PARKWAY DALLAS TX 75248 MARKETING 189651 8 78320491 78320491 SYMPOSIUM 900099 164032 164032 164032 159062 159062 5470469 246566 23903 5200000 MISCELLANEOUS INCOME 900099 168 168 168 84114222 410598 23903 5359230 170628203 170628203 325870 48050 205745 72075 13846 13846 1967880 1485859 357101 124920 421529 281447 104673 35409 194090 129590 48196 16304 2316327 926531 1042347 347449 95384 28615 66769 120409 120409 387887 387887 611858 78300 533558 45528 45528 35907 35907 142098 113678 21315 7105 366890 146756 146756 73378 105554 15833 42222 47499 523475 78521 314085 130869 800052 800052 12438045 12155594 282451 50796 45716 5080 PRINTING,PROCESSING AND 441034 396931 44103 PHONE & INTERNET EXPENS 300418 240334 45063 15021 MISCELLANEOUS/OTHER EXP 57444 57444 ADMINISTRATIVE SUPPORT 56787 56787 192447311 187674703 3464084 1308524 X 523475 78521 314085 130869 X 306427158 165064581 3000000 500000 1202214 34834 66144 62855600 37653633 46246092 25201967 33664151 2500000 5125000 356410298 232621843 7270077 2514791 25044467 11956162 0 122413 32314544 14593366 X 42387592 26244302 281708162 191784175 324095754 218028477 356410298 232621843 -108333089 2265812 0 X 0 1 X 1 0 X 189547300 215071925 210101801 249868305 78320491 942909822 189547300 215071925 210101801 249868305 78320491 942909822 724148573 218761249 2188517 304318 928822 363801 159062 3944520 946854342 434501 0.23100 0.21410 X SCHEDULE A PART II LINE 17A THIS STATEMENT IS ATTACHED IN ACCORDANCE WITH THE INSTRUCTIONS FOR SCHEDULE A (FORM 990)REGARDING AN ORGANIZATION THAT BELIEVES IT IS PUBLICLY SUPPORTED ACCORDING TO APPLICABLE REGULATIONS. TREAS. REG. SEC. 1.170A-9(E)(3) PROVIDES THAT AN ORGANIZATIONS WILL BE TREATED AS "PUBLICLY SUPPORTED" UNDER THE FACTS AND CIRCUMSTANCES TEST EVEN IF IT FAILS TO MEET THE 33 1/3 PERCENT MECHANICAL TEST. UNDER THE FACTS AND CIRCUMSTANCES TEST, AN ORGANIZATION WILL BE TREATED AS PUBLICLY SUPPORTED IF IT NORMALLY RECEIVES A SUBSTANTIAL PART OF ITS SUPPORT FROM GOVERNMENTAL UNITS, FROM DIRECT OR INDIRECT CONTRIBUTIONS FROM THE GENERAL PUBLIC, OR FROM A COMBINATION OF THESE SOURCES, AND MEETS CERTAIN OTHER REQUIREMENTS. THE PERTINENT FACTORS SET FORTH IN THE REGULATIONS ARE DISCUSSED BELOW: I) TEN PERCENT-OF-SUPPORT LIMITATION: THE PUBLIC SUPPORT RECEIVED BY THE ORGANIZATION EQUALS AT LEAST 10% OF THE TOTAL SUPPORT RECEIVED BY THE ORGANIZATION. II) ATTRACTION OF PUBLIC SUPPORT: THE ORGANIZATION IS ORGANIZED AND OPERATED TO APPEAL TO A VARIETY OF PUBLIC SUPPORTERS, BOTH NEW AND EXISTING ON AN ON-GOING BASIS. THE ORGANIZATION MAINTAINS A CONTINUOUS AND BONA FIDE PROGRAM FOR SOLICITATION OF FUNDS FROM THE GENERAL PUBLIC. III) PERCENT OF FINANCIAL SUPPORT: UNDER THE REGULATIONS, THE HIGHER THE PERCENTAGE OF SUPPORT ABOVE THE 10% REQUIREMENT FROM PUBLIC SOURCES THE LESSER WILL BE THE BURDEN OF ESTABLISHING THE PUBLICLY SUPPORTED NATURE OF THE ORGANIZATION THROUGH OTHER FACTORS. THE PUBLIC SUPPORT % FOR 2014 IS IN EXCESS OF 20%. IV) SOURCES OF SUPPORT: THE ORGANIZATION'S PURPOSE IS TO PROVIDE COPAY ASSISTANCE FOR THE UNDERINSURED, WHICH APPEALS TO A BROAD CROSS-SECTION OF THE POPULATION, AND THE ORGANIZATION RECEIVES SUPPORT FROM A VAST NUMBER OF UNRELATED DONORS. V) REPRESENTATIVE GOVERNING BODY: THE ORGANIZATION'S GOVERNING BODY REPRESENTS THE BROAD INTERESTS OF THE PUBLIC, RATHER THAN THE PERSONAL OR PRIVATE INTERESTS OF A LIMITED NUMBER OF DONORS. VI) AVAILABILITY OF PUBLIC FACILITIES OR SERVICES; PUBLIC PARTICIPATION IN PROGRAMS OR POLICIES: THE ORGANIZATION PROVIDES SERVICES DIRECTLY FOR THE BENEFIT OF THE GENERAL PUBLIC ON A CONTINUING BASIS AND MAINTAINS A DEFINITIVE PROGRAM FOR ACCOMPLISHING THAT WORK NATIONWIDE. VII) ADDITIONAL FACTORS PERTINENT TO MEMBERSHIP ORGANIZATIONS: THIS FACTOR IS NOT APPLICABLE TO THE ORGANIZATION BECAUSE IT IS NOT A MEMBERSHIP ORGANIZATION. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 120409 120409 191018378 191138787 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 97255 144462 98663 120409 460789 250000 250000 250000 250000 1000000 1500000 247822 55620 192202 62607778 37598013 25009765 25201967 DEFERRED RENT 122413 122413 X 84114222 0 84114222 0 84114222 192447311 0 192447311 0 192447311 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501 OF THE INTERNAL REVENUE CODE AND A SIMILAR PROVISION OF STATE LAW. HOWEVER, THE ORGANIZATION IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. THE ORGANIZATION FILES TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH A FEW EXCEPTIONS, THE ORGANIZATION IS NO LONGER SUBJECT TO U.S. FEDERAL EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2011. THE INTERNAL REVENUE SERVICE IS CURRENTLY AUDITING THE ORGANIZATION'S 2011 TAX YEAR. X X X X X 1 PURSUANT GROUP 5151 BELT LINE ROAD DALLAS TX 75254 DIRECT MARKETING 0 0 226540 -226540 NUMANTRA 2900 GATEWAY DRIVE SUITE 620 IRVING TX 75063 DIRECT MARKETING 0 0 48489 -48489 AGENCY ENTOURAGE PO BOX 36146 DALLAS TX 75235 DIRECT MARKETING 0 0 84024 -84024 359053 -359053 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC SCHEDULE G, PART I, LINE 2B, COLUMN (V) TO INCREASE PUBLIC SUPPORT, CHRONIC DISEASE FUND DEVELOPED MARKETING PROGRAMS SUCH AS THE STRATEGIC PARTNERSHIP WITH WALGREENS. OTHER MARKETING PROGRAMS INCLUDED THE GOOD DAY'S CAMPAIGN, SOCIAL MEDIA MARKETING, AND MAIL AND INTERNET SOLICITATIONS. 1 CO-PAYMENTS OF FDA-APPROVED DRUGS 70058 170628203 N/A PART I, LINE 2: THE PROCESS BY WHICH THE CHRONIC DISEASE FUND APPROVES AND PROVIDES INDIVIDUALS WITH GRANTS AND OTHER FINANCIAL ASSISTANCE ENSURES THAT ALL FUNDS ARE BEING USED ONLY FOR THE PURPOSE OF OBTAINING FDA-APPROVED DRUGS NECESSARY FOR THE TREATMENT OF A CHRONIC OR FATAL DISEASE. THE PROCESS BY WHICH THE CHRONIC DISEASE FUND APPROVES GRANTS AND FINANCIAL ASSISTANCE IS AS FOLLOWS: (1) AN INDIVIDUAL IS DIAGNOSED WITH A CHRONIC OR LIFE-THREATENING DISEASE BY A DOCTOR OF THEIR OWN CHOOSING; (2) THE INDIVIDUAL RECEIVES A PRESCRIPTION FROM THEIR DOCTOR FOR AN FDA-APPROVED DRUG FOR TREATMENT OF THE DISEASE; (3) THE INDIVIDUAL CONTACTS THE CHRONIC DISEASE FUND SEEKING FINANCIAL ASSISTANCE FOR THE PURPOSE OF PAYING THE CO-PAY FOR THE MEDICATION PRESCRIBED BY THEIR DOCTOR; AND (4) THE CHRONIC DISEASE FUND VERIFIES THE THAT INDIVIDUAL'S INCOME IS LOW ENOUGH TO QUALIFY FOR FINANCIAL ASSISTANCE, THAT THE DIAGNOSED CONDITION IS COVERED BY THE ORGANIZATION'S CO-PAY ASSISTANCE PROGRAM, AND THAT THE MEDICATION PRESCRIBED FOR THE TREATMENT OF THE CONDITION IS AN FDA-APPROVED DRUG FOR TREATMENT OF THE INDIVIDUAL'S DIAGNOSED CONDITION. IN MOST CASES, AFTER DETERMINING THAT AN INDIVIDUAL QUALIFIES FOR CO-PAY ASSISTANCE, THE ORGANIZATION ENSURES THAT ALL GRANTS AND OTHER ASSISTANCE ARE ONLY USED TO PAY FOR THE PRESCRIBED TREATMENT BY MAKING ALL PAYMENTS DIRECTLY TO THE PHARMACY OR PHYSICIAN THAT DISPENSES THE MEDICATIONS TO QUALIFYING INDIVIDUALS. IN SITUATIONS WHERE THE CHRONIC DISEASE FUND IS UNABLE TO PAY THE PHARMACY OR PHYSICIAN DIRECTLY, THE ORGANIZATION ENSURES THAT ALL GRANTS AND OTHER ASSISTANCE ARE ONLY USED TO PAY FOR THE PRESCRIBED TREATMENT BY REIMBURSING QUALIFYING INDIVIDUALS UPON DOCUMENTATION OF THE PURCHASE AND COST OF THE PRESCRIBED MEDICATION. THIS PROCESS IS REFLECTED IN A POLICY, ADOPTED BY THE CHRONIC DISEASE FUND'S BOARD OF DIRECTORS, THAT DESCRIBES HOW THE ORGANIZATION OPERATES ITS PATIENT ASSISTANCE PROGRAMS. FOR EXAMPLE, THE POLICY REQUIRES EACH APPLICANT TO SUBMIT AN APPLICATION THAT DESCRIBES, AMONG OTHER ITEMS, THE APPLICANT'S DIAGNOSIS AND THE PRESCRIPTION DRUG PRODUCT THAT HE OR SHE HAS BEEN PRESCRIBED. ADDITIONALLY, GOOD DAYS MUST ENROLL APPLICANTS FOR FUNDING ON A FIRST-COME, FIRST-SERVED BASIS (TO THE EXTENT THAT FUNDING IS AVAILABLE) IF SEVERAL CRITERIA ARE MET, INCLUDING THE FOLLOWING: (1) THE APPLICANT QUALIFIES FOR FINANCIAL NEED IN ACCORDANCE WITH ESTABLISHED CRITERIA; (2) THE APPLICANT IS DIAGNOSED WITH A DISEASE OR CONDITION SUPPORTED BY THE ORGANIZATION; AND (3) AN FDA-APPROVED PRESCRIPTION DRUG THAT TREATS SUCH DISEASE OR CONDITION ALREADY HAS BEEN PRESCRIBED FOR THE APPLICANT BY A PROVIDER OF HIS OR HER CHOICE. THE POLICY ALSO REQUIRES THE CHRONIC DISEASE FUND TO PAY AN INDIVIDUAL'S FINANCIAL ASSISTANCE DIRECTLY TO THE APPLICABLE PHARMACY OR PHYSICIAN WHENEVER ADMINISTRATIVELY FEASIBLE. HOWEVER, WHEN DIRECT PAYMENT TO SUCH PROVIDER IS NOT ADMINISTRATIVELY FEASIBLE, THE POLICY PERMITS THE CHRONIC DISEASE FUND TO REIMBURSE THE INDIVIDUAL UPON SUBMISSION OF ACCEPTABLE DOCUMENTATION THAT HE OR SHE HAS PAID THE PROVIDER DIRECTLY. 1 X X X X X 0 0 0 0 0 0 0 0 0 CLORINDA WALLEY EXECUTIVE DIRECTOR, EX-OFF 225000 0 15250 0 0 0 0 0 24120 0 264370 0 0 0 CHARLES MOORMAN IT DIRECTOR 139798 0 0 0 0 0 0 0 15453 0 155251 0 0 0 SCHEDULE J PART III THE PROCESS BY WHICH THE CHRONIC DISEASE FUND APPROVES THE AMOUNT OF COMPENSATION PROVIDED TO ITS EXECUTIVE DIRECTOR, CLORINDA WALLEY, FOLLOWS THE GUIDANCE PROVIDED IN TREASURY REGULATIONS SECTION 53.4958-6, RELATED TO THE REBUTTABLE PRESUMPTION OF REASONABLENESS. AS SUCH, THE PROCESS BY WHICH THE CHRONIC DISEASE FUND BOARD OF DIRECTORS DETERMINES AND APPROVES THE APPROPRIATE AMOUNT OF COMPENSATION TO PROVIDE TO ITS EXECUTIVE DIRECTOR INCLUDES: (1) APPROVAL BY INDEPENDENT MEMBERS OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS PRIOR TO PAYMENT; (2) THE CONSIDERATION OF APPROPRIATE COMPARABILITY DATA IN DETERMINING THE TOTAL AMOUNT OF COMPENSATION TO BE PROVIDED TO THE EXECUTIVE DIRECTOR; AND (3) THE DOCUMENTATION OF ITS DECISION AND THE BASIS FOR ITS DECISION REGARDING THE AMOUNT OF COMPENSATION PROVIDED TO THE CHRONIC DISEASE FUND EXECUTIVE DIRECTOR. THE 2008 MICHAEL H BANIGAN FAMILY DELAWARE TRUST SEE SCHEDULE O SEE SCHEDULE O X 47250000 11956162 0 1 1 11956162 FOURTH FLOOR REALTY SEE SCHEDULE O 99666 SEE SCHEDULE O 0 SONEXUS (FORMERLY CDF SERVICES) SEE SCHEDULE O 19592461 SEE SCHEDULE O 0 THE 2008 MICHAEL H BANIGAN FAMILY DELAWARE TRUST SEE SCHEDULE O 12000000 SEE SCHEDULE O 0 MICHAEL BANIGAN SEE SCHEDULE O 11483 SEE SCHEDULE O 0 FORM 990, PART VI, SECTION B, LINE 11 THE CHRONIC DISEASE FUND FORM 990 IS PREPARED BY THE ORGANIZATION'S OUTSIDE ACCOUNTANT BASED ON DATA PROVIDED BY THE ORGANIZATION. THE PREPARED FORM 990 IS THEN REVIEWED THE ORGANIZATION'S LEADERSHIP AND THE ORGANIZATION'S LEGAL COUNSEL, VENABLE LLP. THEN A COPY OF THE PREPARED FORM 990 IS PROVIDED TO EACH MEMBER OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THE CHRONIC DISEASE FUND HAS A CONFLICT OF INTEREST POLICY ("POLICY") COVERING MEMBER OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS, OFFICERS, AND KEY EMPLOYEES ("COVERED INDIVIDUALS"). PURSUANT TO THE POLICY, EACH COVERED INDIVIDUAL SHALL FILE WITH THE BOARD OF DIRECTORS A STATEMENT OF DISCLOSURE ON A FORM PROVIDED BY THE ORGANIZATION PRIOR TO THE COVERED INDIVIDUAL'S INITIAL ELECTION, APPOINTMENT, OR HIRING. ADDITIONALLY, EACH COVERED INDIVIDUAL IS REQUIRED TO FILE AN ANNUAL STATEMENT OF DISCLOSURE ANNUALLY. THE INITIAL AND ANNUAL STATEMENT OF DISCLOSURE REQUIRES COVERED INDIVIDUALS TO DISCLOSE ALL MATERIAL FACTS RELATING TO: (1) ALL ENTITIES IN WHICH THE COVERED INDIVIDUAL IS AN OFFICER, DIRECTOR, TRUSTEE, MEMBER, OR OWNER; (2) ANY CHRONIC DISEASE FUND TRANSACTIONS IN WHICH THE COVERED INDIVIDUAL MAY HAVE A CONFLICTING INTEREST; AND (3) ANY OTHER FACTS OR CIRCUMSTANCES THAT MIGHT CONSTITUTE A CONFLICT OF INTEREST, INCLUDING BUT NOT LIMITED TO: (A) ANY OUTSIDE EMPLOYMENT OR CONSULTING ACTIVITIES WHICH MAY RESULT IN A CONFLICT OF INTEREST; AND (B) ANY AFFILIATION WITH OTHER ENTITIES WHICH MAY CONSTITUTE A CONFLICT OF INTEREST. UPON DISCLOSURE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS WILL MAKE A DETERMINATION AS TO WHETHER A CONFLICT OF INTERESTS EXISTS. IN SITUATIONS WHERE THE BOARD OF DIRECTORS DETERMINES THAT A CONFLICT OF INTEREST EXISTS WITH RESPECT TO A TRANSACTION, THE BOARD WILL DOCUMENT ITS DETERMINATION REGARDING THE EXISTENCE OF A CONFLICT OF INTEREST IN ITS MEETING MINUTES AND THE CONFLICTED INDIVIDUAL WILL BE REQUIRED TO RECUSE THEMSELVES FROM ALL DISCUSSIONS AND DECISIONS RELATED TO THE TRANSACTION. SUCH RECUSAL PROHIBITS THE PRESENCE AND PARTICIPATION OF THE CONFLICTED INDIVIDUAL IN ANY BOARD OR COMMITTEE DELIBERATIONS THE MATTER GIVING RISE TO THE CONFLICT OF INTEREST, PROHIBITS THE PRESENCE AND PARTICIPATION OF THE CONFLICTED INDIVIDUAL IN ANY VOTE ON THE MATTER GIVING RISE TO THE CONFLICT OF INTEREST, AND PROHIBITS THE CONFLICTED INDIVIDUAL FROM MAKING ANY OTHER ATTEMPT TO INFLUENCE THE DELIBERATION OR VOTE ON THE MATTER GIVING RISE TO THE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15A THE PROCESS BY WHICH THE CHRONIC DISEASE FUND APPROVES THE AMOUNT OF COMPENSATION PROVIDED TO ITS EXECUTIVE DIRECTOR, CLORINDA WALLEY, FOLLOWS THE GUIDANCE PROVIDED IN TREASURY REGULATIONS SECTION 53.4958-6, RELATED TO THE REBUTTABLE PRESUMPTION OF REASONABLENESS. AS SUCH, THE PROCESS BY WHICH THE CHRONIC DISEASE FUND BOARD OF DIRECTORS DETERMINES AND APPROVES THE APPROPRIATE AMOUNT OF COMPENSATION TO PROVIDE TO ITS EXECUTIVE DIRECTOR INCLUDES: (1) APPROVAL BY INDEPENDENT MEMBERS OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS PRIOR TO PAYMENT; (2) THE CONSIDERATION OF APPROPRIATE COMPARABILITY DATA IN DETERMINING THE TOTAL AMOUNT OF COMPENSATION TO BE PROVIDED TO THE EXECUTIVE DIRECTOR; AND (3) THE DOCUMENTATION OF ITS DECISION AND THE BASIS FOR ITS DECISION REGARDING THE AMOUNT OF COMPENSATION PROVIDED TO THE CHRONIC DISEASE FUND EXECUTIVE DIRECTOR. FORM 990, PART VI, SECTION C, LINE 19 THE CHRONIC DISEASE FUND COMPLIES WITH THE PUBLIC INSPECTION REQUIREMENTS OF INTERNAL REVENUE CODE SECTION 6104 BY MAKING ITS FORM 1023, APPLICATION FOR RECOGNITION OF EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, DETERMINATION LETTER FROM THE IRS, AND ITS FORMS 990 FOR ITS THREE MOST RECENTLY COMPLETED TAX PERIODS AVAILABLE TO THE PUBLIC. HOWEVER, AS SECTION 6104 DOES NOT REQUIRE AN ORGANIZATION EXEMPT UNDER SECTION 501(C)(3) TO DISCLOSE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICIES, OR FINANCIAL STATEMENTS, THE CHRONIC DISEASE FUND HAS CHOSEN NOT TO MAKE SUCH INFORMATION AVAILABLE FOR PUBLIC INSPECTION. FORM 990, PART X, LINE 34 THE INFORMATION REPORTED IN PART X, LINE 34 DEMONSTRATES THAT IN 2014, THE CHRONIC DISEASE FUND NET ASSETS DECREASED BY MORE THAN 25%. ALTHOUGH THERE WAS A SIGNIFICANT REDUCTION IN THE ORGANIZATION'S NET ASSETS IN 2014, THE ORGANIZATION IS NOT REQUIRED TO COMPLETE SCHEDULE N BECAUSE THE DECREASED VALUE OF THE CHRONIC DISEASE FUND'S NET ASSETS WAS THE RESULT OF GRANTS AND OTHER ASSISTANCE MADE IN THE ORDINARY COURSE OF THE ORGANIZATION'S EXEMPT ACTIVITIES TO ACCOMPLISH ITS EXEMPT MISSION OF PROVIDING CO-PAY ASSISTANCE TO LOW AND MODERATE INCOME INDIVIDUALS SUFFERING FROM CHRONIC DISEASES. SPECIFICALLY, THE REDUCTION IN THE VALUE OF THE CHRONIC DISEASE FUND'S NET ASSETS WAS THE RESULT OF A SUBSTANTIAL DECREASE IN THE AMOUNT OF CHARITABLE CONTRIBUTIONS RECEIVED BY THE ORGANIZATION IN 2014 WITHOUT A CORRESPONDING REDUCTION IN THE AMOUNT OF GRANTS AND FINANCIAL ASSISTANCE THE THAT ORGANIZATION PROVIDED TO INDIVIDUALS SUFFERING FROM CHRONIC DISEASES, CANCER, OR OTHER LIFE-ALTERING CONDITIONS SO THAT SUCH INDIVIDUALS COULD AFFORD AND OBTAIN THE LIFE-SAVING OR LIFE-SUSTAINING FDA-APPROVED DRUGS NECESSARY FOR THE TREATMENT OF THEIR CONDITION. SCHEDULE L PART II ADDITIONAL EXPLANATION NAME OF PERSON: THE MICHAEL H. BANIGAN FAMILY DELAWARE TRUST RELATIONSHIP: THE 2008 MICHAEL H. BANIGAN FAMILY DELAWARE TRUST IS AN INTERESTED PERSON BECAUSE IT IS CONTROLLED BY MICHAEL BANIGAN WHO FORMERLY SERVED AS THE CHAIR AND SECRETARY OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS. AS OF DECEMBER 2013, MICHAEL BANIGAN HAS NOT HELD ANY POSITION WITHIN CHRONIC DISEASE FUND AND HAS RECEIVED NO COMPENSATION FOR THE PERFORMANCE OF SERVICES TO THE ORGANIZATION. DESCRIPTION OF TRANSACTION: THE CHRONIC DISEASE FUND'S TRANSACTION WITH THE 2008 MICHAEL H. BANIGAN FAMILY DELAWARE TRUST RELATES TO A NOTE PAYABLE RESULTING FROM THE CHRONIC DISEASE FUND'S PURCHASE OF DISEASETRAK, A CORPORATION FORMERLY OWNED BY MICHAEL BANIGAN. AS NOTED IN THE BOARD OF DIRECTOR MEETING MINUTES, THE PURCHASE OF DISEASETRAK WAS APPROVED BY INDEPENDENT MEMBERS OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS PRIOR TO THE TRANSACTION AND THE AMOUNT OF THE PURCHASE PRICE OF DISEASETRAK WAS DETERMINED AFTER OBTAINING AND REVIEWING APPROPRIATE DATA REGARDING THE VALUE OF DISEASETRAK. SCHEDULE L PART IV ADDITIONAL EXPLANATION NAME OF PERSON: FOURTH FLOOR REALTY RELATIONSHIP: FOURTH FLOOR REALTY IS AN INTERESTED PERSON BECAUSE IT IS CONTROLLED BY MICHAEL BANIGAN WHO FORMERLY SERVED AS THE CHAIR AND SECRETARY OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS. AS OF DECEMBER 2013, MICHAEL BANIGAN HAS NOT HELD ANY POSITION WITHIN CHRONIC DISEASE FUND AND HAS RECEIVED NO COMPENSATION FOR THE PERFORMANCE OF SERVICES TO THE ORGANIZATION. DESCRIPTION OF THE TRANSACTION: THIS TRANSACTION RELATES TO AMOUNTS PAID TO FOURTH FLOOR REALTY FOR RENT, UTILITIES, ADMINISTRATIVE SUPPORT, AND SHARED SERVICES. SCHEDULE L PART IV ADDITIONAL EXPLANATION NAME OF PERSON: SONEXUS (FORMERLY CDF SERVICES) RELATIONSHIP: SONEXUS WAS AN INTERESTED PERSON BECAUSE IT WAS CONTROLLED BY MICHAEL BANIGAN WHO FORMERLY SERVED AS THE CHAIR AND SECRETARY OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS. AS OF DECEMBER 2013, MICHAEL BANIGAN HAS NOT HELD ANY POSITION WITHIN CHRONIC DISEASE FUND AND HAS RECEIVED NO COMPENSATION FOR THE PERFORMANCE OF SERVICES TO THE ORGANIZATION. DESCRIPTION OF THE TRANSACTION: THIS TRANSACTION RELATES PASS THROUGH PAYMENTS RELATED TO CO-PAY ASSISTANCE. SCHEDULE L PART IV ADDITIONAL EXPLANATION NAME OF PERSON: THE MICHAEL H. BANIGAN FAMILY DELAWARE TRUST RELATIONSHIP: THE 2008 MICHAEL H. BANIGAN FAMILY DELAWARE TRUST IS AN INTERESTED PERSON BECAUSE IT IS CONTROLLED BY MICHAEL BANIGAN WHO FORMERLY SERVED AS THE CHAIR AND SECRETARY OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS. AS OF DECEMBER 2013, MICHAEL BANIGAN HAS NOT HELD ANY POSITION WITHIN CHRONIC DISEASE FUND AND HAS RECEIVED NO COMPENSATION FOR THE PERFORMANCE OF SERVICES TO THE ORGANIZATION. DESCRIPTION OF THE TRANSACTION: THE CHRONIC DISEASE FUND'S TRANSACTION WITH THE 2008 MICHAEL H. BANIGAN FAMILY DELAWARE TRUST RELATES TO A NOTE PAYABLE RESULTING FROM THE CHRONIC DISEASE FUND'S PURCHASE OF DISEASETRAK, A CORPORATION FORMERLY OWNED BY MICHAEL BANIGAN. AS NOTED IN THE BOARD OF DIRECTOR MEETING MINUTES, THE PURCHASE OF DISEASETRAK WAS APPROVED BY INDEPENDENT MEMBERS OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS PRIOR TO THE TRANSACTION AND THE AMOUNT OF THE PURCHASE PRICE OF DISEASETRAK WAS DETERMINED AFTER OBTAINING AND REVIEWING APPROPRIATE DATA REGARDING THE VALUE OF DISEASETRAK. SCHEDULE L PART IV ADDITIONAL EXPLANATION NAME OF PERSON: MICHAEL BANIGAN RELATIONSHIP: MICHAEL BANIGAN IS AN INTERESTED PERSON BECAUSE HE FORMERLY SERVED AS THE CHAIR AND SECRETARY OF THE CHRONIC DISEASE FUND BOARD OF DIRECTORS. AS OF DECEMBER 2013, MICHAEL BANIGAN HAS NOT HELD ANY POSITION WITHIN CHRONIC DISEASE FUND AND HAS RECEIVED NO COMPENSATION FOR THE PERFORMANCE OF SERVICES TO THE ORGANIZATION. DESCRIPTION OF THE TRANSACTION: THIS TRANSACTION RELATES TO AMOUNTS PAID AS THE REIMBURSEMENT OF EXPENSES INCURRED BY MICHAEL BANIGAN WHILE SERVING AS AN OFFICER AND DIRECTOR OF THE CHRONIC DISEASE FUND. CDFRX 6900 N DALLAS PARKWAY STE 125 PLANO TX 75024 273307023 PASS-THRU PAYMENTS RELATED TO CO-PAYMENT ASSISTANCE TX C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0