2021-11-15T19:11:37-06:00 2020-12-31 271728945 PKF O'CONNOR DAVIES LLP 500 MAMARONECK AVENUE HARRISON NY 105281633 990 2020-01-01 132877912 FREEDOM INSTITUTE INC FREE 2128380044 515 MADISON AVENUE 13TH FLOOR NEW YORK NY 10022 RACHEL J RUSSELL PRESIDENT & CHIEF CLINICAL OFFICER 2128380044 2021-11-15 1 RACHEL RUSSELL XXX-XX-XXXX GARRETT M HIGGINS P00543209 9143818900 2021-11-15 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z RACHEL J RUSSELL 515 MADISON AVENUE 13TH FLOOR NEW YORK NY 10022 3291410 0 X WWW.FREEDOMINSTITUTE.ORG X 1976 NY ASSIST AND COUNSEL THE CHEMICALLY DEPENDENT AND THEIR FAMILIES THROUGH EDUCATION, TREATMENT, AND PREVENTION. 6 6 32 6 0 0 412157 318788 2389876 2287810 543695 202045 -55572 11704 3290156 2820347 0 3934 0 0 2260173 1799990 44000 0 60707 1834471 1467423 4138644 3271347 -848488 -451000 1926149 1412979 345306 487705 1580843 925274 X FREEDOM INSTITUTE IS A RESOURCE CENTER FOR INDIVIDUALS AND FAMILIES COPING WITH ADDICTION AND CO-OCCURRING ISSUES SUCH AS DEPRESSION AND ANXIETY. WE OFFER PERSONALIZED COUNSEL AND CARE TO THOSE SEEKING TO PREVENT, UNDERSTAND OR RECOVER FROM SUBSTANCE ABUSE AND ADDICTION. 1 1 2531687 3934 2287810 THE CORONAVIRUS PANDEMIC OBVIOUSLY PLAYED A CENTRAL ROLE IN 2020 ACTIVITIES AND FINANCIAL CIRCUMSTANCES. THE CLINICAL PROGRAMS WERE HEAVILY IMPACTED BY THE PANDEMIC AND RESULTING QUARANTINE, ALTHOUGH IN MORE MIXED WAYS. WE PIVOTED TO REMOTE SERVICES RAPIDLY IN MID-MARCH. THIS REQUIRED SIGNIFICANT EFFORT TO ENSURE ADEQUATE TECHNOLOGY AND TECHNICAL SUPPORT FOR STAFF, LEARN TELEHEALTH PRACTICES AND PROTOCOLS, ADAPT GROUP TECHNIQUES FOR REMOTE PARTICIPATION, AND CREATE NEW PROCEDURES TO COMPLY WITH HIPAA AND OTHER REGULATORY GUIDELINES. INITIALLY WE BELIEVED THAT THE STATE ORDER TO QUARANTINE AND UTILIZE TELEHEALTH AS THE DELIVERY METHOD WOULD BE SHORT-TERM, AND ONLY A MATTER OF WEEKS. AS IT BECAME CLEAR THAT IT WOULD BE MUCH LONGER, THE CLINICAL TEAM DID ADDITIONAL WORK TO ADAPT TREATMENT MODALITIES AND ENRICH OUR CLINICAL PRACTICE, PARTICULARLY IN GROUPS, AND WE SURVEYED CLIENTS AND TOOK ADDITIONAL MEASURES TO IMPROVE CLIENT EXPERIENCE. THE PROLONGED TELEHEALTH SETTING ALSO REQUIRED US TO IMPLEMENT NEW SOFTWARE FOR CLIENT PAPERWORK, NEW METHODS FOR REVIEWING DOCUMENTATION AND OBTAINING SIGNATURES, PER OUR REGULATORY REQUIREMENTS. MOREOVER, WE IMPLEMENTED A REMOTE DRUG TESTING SERVICE SO THAT WE COULD CONTINUE TO MONITOR CLIENTS FOR RELAPSES, PARTICULARLY FOR OPIOIDS. THIS ADDRESSES A SIGNIFICANT SAFETY CONCERN PRESENTED BY THE ISOLATION OF QUARANTINE. WE HAVE ENGAGED IN SEVERAL PLANNING PHASES FOR A RETURN TO IN-PERSON SERVICES, BUT DO NOT YET KNOW WHEN NEW YORK STATE OFFICE OF ADDICTION SERVICES AND SUPPORTS WILL ALLOW THAT TO HAPPEN. WE FORESEE MAINTAINING A HYBRID MODEL GOING FORWARD. THE PANDEMIC HAS HAD NOTABLE IMPACTS ON OUR GROUP WORK IN PARTICULAR: ATTENDANCE HAS IMPROVED AS PEOPLE HAVE THE FLEXIBILITY TO JOIN GROUP REGARDLESS OF LOCATION, BUT OUR CENSUS HAS DECREASED. THIS HAS BEEN THE EXPERIENCE OF MANY OTHER TREATMENT PROGRAMS AS WELL, PARTICULARLY AS THINGS HAVE BEGUN TO OPEN UP IN THE WORLD AND SUMMER WEATHER HAS DRAWN PEOPLE INTO OUTSIDE ACTIVITIES AND TRAVEL. WE PLAN TO HIRE A MARKETING PERSON TO REPRESENT US AT EVENTS AND CONFERENCES ETC. NOW THAT THOSE ARE BEGINNING TO TAKE PLACE AGAIN. HOPEFULLY THIS WILL BEGIN TO INCREASE OUR REFERRAL VOLUME, ALTHOUGH THE TELEHEALTH WORLD HAS CERTAINLY CHANGED THE MARKET. DURING THIS TIME, WE ALSO HAD SOME SIGNIFICANT STAFF CHANGES. FIRST, SEVERAL STAFF MEMBERS WERE INFECTED WITH COVID THEMSELVES. ALL RECOVERED WELL, BUT WE HAD TO PROVIDE COVERAGE DURING THEIR ABSENCE. WE ALSO HAD SEVERAL STAFF MEMBERS ON FAMILY/MEDICAL LEAVE, AND TWO SENIOR CLINICIANS WHO DECIDED TO LEAVE THE ORGANIZATION FOR REASONS HIGHLIGHTED BY THE PANDEMIC. THIS PRESENTED VARIOUS CHALLENGES FOR BOTH CLINICAL AND LEADERSHIP TEAMS. AN EXCITING DEVELOPMENT IN 2020 WAS THE LAUNCH OF OUR VERITUS PROGRAM, A TELEHEALTH-BASED TREATMENT PROGRAM FOR HEALTHCARE PROFESSIONALS. ALTHOUGH THIS PROGRAM WAS CONCEIVED AHEAD OF THE PANDEMIC AND THUS LOST A BIT OF ITS UNIQUENESS ONCE THE ENTIRE INDUSTRY FLIPPED TO REMOTE TREATMENT IN THE SPRING, IT ALSO PRESENTS A NOVEL OPPORTUNITY IN THE TREATMENT MARKET THAT ADDRESSES A SIGNIFICANT NEED. THE TARGET CLIENT POPULATION FOR THE FIRST ROUND OF THE PROGRAM IS HEALTHCARE PROFESSIONALS, PRIMARILY PHYSICIANS, WHO HAVE BEEN REFERRED TO THEIR STATE'S PROFESSIONAL MONITORING PROGRAMS DUE TO THEIR SUBSTANCE USE AND NEED ASSESSMENT AND TREATMENT IN ORDER TO MAINTAIN THEIR LICENSES TO PRACTICE. WE'VE LAUNCHED WITH A TELEHEALTH IOP COMBINED WITH PROFESSION-SPECIFIC RECOVERY COACHING AND ARE WORKING CLOSELY WITH THE PHYSICIAN HEALTH PROGRAMS. THE PLAN IS TO EXPAND THE WORK TO INCLUDE A PROGRAM FOR LAWYERS, AND WE ARE OPTIMISTIC ABOUT THE POTENTIAL FOR BOTH. 2531687 1 1 0 0 0 0 0 0 0 1 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 36 0 32 1 0 0 0 0 0 0 0 0 0 0 0 0 X 6 6 1 0 0 0 0 0 0 1 0 0 0 1 0 1 1 1 1 0 NY X X DANA SACHER-ROLLINS 2128380044 515 MADISON AVENUE 13TH FLOOR NEW YORK NY 10022 ROBERT L MILLER CHAIRMAN 5.00 X X 0 0 0 JACQUELINE R WILLIAMS SECRETARY 0.20 X X 0 0 0 JESSICA AMBROSE TRUSTEE 0.20 X 0 0 0 ANSON BARRETT FRELINGHUYSEN TRUSTEE 0.20 X 0 0 0 JOHN LOEFFLER TRUSTEE 0.20 X 0 0 0 PATRICK ROBINSON TRUSTEE 0.20 X 0 0 0 RACHEL J RUSSELL PRESIDENT & CHIEF CLINICAL OFFICER 35.00 X 204829 0 31862 DANA SACHER-ROLLINS VP & GENERAL MANAGER 28.00 X 111262 0 43784 316091 0 75646 2 0 1 0 STEVEN J WOLT 2500 BROADWAY SUITE F-125 SANTA MONICA CA 90404 CONSULTING SERVICES 112000 1 78710 240078 38183 318788 COUNSELING FEES 621400 2287810 2287810 2287810 23127 23127 649981 471063 178918 178918 178918 TAX REFUND 900099 11704 11704 11704 2820347 2287810 0 213749 X 3934 3934 391737 293803 97934 1188160 925547 234333 28280 26679 20858 5124 697 71989 57133 12276 2580 121425 93848 25294 2283 390 326 58 6 91445 91445 11736 11736 573262 473107 99721 434 27830 6427 4139 17264 118426 109413 8161 852 98844 86568 11092 1184 373309 311979 55404 5926 367 336 28 3 15738 4733 11005 39902 33347 5922 633 27991 23393 4154 444 DRUG TESTING SUPPLIES 80594 80594 OTHER PROGRAM EXPENSES 7589 6341 1127 121 3271347 2531687 678953 60707 248584 161579 14308 20391 15114 95551 220761 150578 8829 0 3190 128266 824370 787994 76277 36376 1339086 723585 95953 0 700 1926149 1412979 194680 146482 70200 0 80426 341223 345306 487705 X 1463335 803489 117508 121785 1580843 925274 1926149 1412979 X -451000 -150522 -54047 X 0 1 X 0 0 X 555297 502216 476136 412157 318788 2264594 2394468 2796250 2709280 2389876 2287810 12577684 2949765 3298466 3185416 2802033 2606598 14842278 119100 151404 84935 38077 35157 428673 0 119100 151404 84935 38077 35157 428673 14413605 235456 105228 76943 42247 23127 483001 235456 105228 76943 42247 23127 483001 11704 11704 3185221 3403694 3262359 2844280 2641429 15336983 0.93980 0.92720 0.03150 0.04210 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: TAX REFUND - 2020 AMOUNT: $ 11,704. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1353392 52320 650000 11736 743976 2381140 395442 1400000 23190 1353392 4016629 -24101 1575000 36388 2381140 4913205 519861 1375000 41437 4016629 5901951 439161 1375000 52907 4913205 0.83630 0.09040 0.07327 0 0 360859 352271 8588 463511 435723 27788 36376 INVESTMENT IN VERITUS 95953 C 95953 DEFERRED RENT 5248 PAYCHECK PROTECTION PROGRAM LOAN 335975 341223 X 2604042 -150522 -150522 2754564 11736 54047 65783 2820347 3259611 0 3259611 11736 11736 3271347 PART V, LINE 4: THE ENDOWMENT FUND WAS CREATED THROUGH A 1980 BOARD OF DIRECTORS RESOLUTION WITH THE PURPOSE OF ESTABLISHING A PERMANENT FUNDING BASIS. THE BOARD OF DIRECTORS, AT ITS DISCRETION, AND BASED ON THE NEEDS OF THE INSTITUTE, CAN DECIDE WHETHER TO REINVEST ENDOWMENT INCOME OR USE IT FOR OPERATING PURPOSES. PART X, LINE 2: THE INSTITUTE RECOGNIZES THE EFFECT OF TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE INSTITUTE HAS NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. THE INSTITUTE IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO 2017. PART XI, LINE 4B - OTHER ADJUSTMENTS: EQUITY INTEREST IN OPERARTING LOSS OF VERITUS, LLC 54,047. X X 0 0 0 0 0 0 0 1 0 RACHEL J RUSSELL PRESIDENT & CHIEF CLINICAL OFFICER 199829 0 5000 0 0 0 6463 0 25399 0 236691 0 0 0 DANA SACHER-ROLLINS VP & GENERAL MANAGER 108262 0 3000 0 0 0 3930 0 39854 0 155046 0 0 0 PART I, LINE 7 THE FOLLOWING INDIVIDUALS RECEIVED TAXABLE DISCRETIONARY BONUSES WHICH WERE APPROVED BY THE CHAIRMAN OF THE BOARD. THESE AMOUNTS ARE INCLUDED IN THEIR REPORTABLE COMPENSATION AND REFLECTED ON THEIR 2020 FORM W-2. RACHEL J. RUSSELL - PRESIDENT - $5,000 DANA SACHER-ROLLINS - VICE PRESIDENT & GENERAL MANAGER - $3,000 X 4 38183 AVG. SELLING PRICE 0 0 0 0 PART I, COLUMN (B): THE NUMBER OF CONTRIBUTORS IS LISTED IN COLUMN (B). FORM 990, PART III, LINE 2 IN 2020 THE ORGANIZATION LAUNCHED THEIR VERITUS PROGRAM, A TELEHEALTH-BASED TREATMENT PROGRAM FOR HEALTHCARE PROFESSIONALS. THE TARGET CLIENT POPULATION FOR THE FIRST ROUND OF THE PROGRAM IS HEALTHCARE PROFESSIONALS, PRIMARILY PHYSICIANS, WHO HAVE BEEN REFERRED TO THEIR STATE'S PROFESSIONAL MONITORING PROGRAMS DUE TO THEIR SUBSTANCE USE AND NEED ASSESSMENT AND TREATMENT IN ORDER TO MAINTAIN THEIR LICENSES TO PRACTICE. WE'VE LAUNCHED WITH A TELEHEALTH IOP COMBINED WITH PROFESSION-SPECIFIC RECOVERY COACHING AND ARE WORKING CLOSELY WITH THE PHYSICIAN HEALTH PROGRAMS. THE PLAN IS TO EXPAND THE WORK TO INCLUDE A PROGRAM FOR LAWYERS, AND WE ARE OPTIMISTIC ABOUT THE POTENTIAL FOR BOTH. FORM 990, PART III, LINE 3 DUE TO A VARIETY OF REASONS, INCLUDING THE IMPACTS THAT THE CORONAVIRUS PANDEMIC, AS WELL AS A LACK OF FUNDING, FREEDOM INSTITUTE MADE THE DECISION TO DISCONTINUE ITS SCHOOL-BASED PROGRAM, HALLWAYS, AND THE END OF THE ACADEMIC SCHOOL YEAR. DISCONTINUING THE HALLWAYS PROGRAM WILL ALLOW THE ORGANIZATION TO FOCUS ITS FINANCIAL AND PROFESSIONAL RESOURCES ON THE OTHER TREATMENT INITIATIVES THAT IS OFFERS. FORM 990, PART VI, SECTION A, LINE 2 ROBERT L. MILLER AND JESSICA AMBROSE HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B FREEDOM INSTITUTE, INC. HAS ITS FORM 990 PREPARED BY AN OUTSIDE ACCOUNTING FIRM AND HAS ESTABLISHED THE FOLLOWING REVIEW PROCESS TO ENSURE THAT THE INFORMATION REPORTED IS COMPLETE AND ACCURATE. THE CHAIRMAN OF THE BOARD AND GENERAL MANAGER MEET WITH THE OUTSIDE ACCOUNTANT AND REVIEW THE FORM 990 IN DETAIL TO ENSURE THAT IT CORRECTLY REFLECTS ALL ACTIVITIES AND POLICIES AT FREEDOM INSTITUTE. THE FINAL VERSION IS ELECTRONICALLY SENT TO THE BOARD OF TRUSTEES PRIOR TO SUBMISSION TO THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12 WHILE THE CURRENT CONFLICT OF INTEREST POLICY OF THE ORGANIZATION DOES NOT CONFORM WITH ALL OF THE REQUIREMENTS OF THE NYS NONPROFIT REVITALIZATION ACT OF 2013, THE POLICY DOES REQUIRE ANNUAL DISCLOSURE STATEMENTS FOR POTENTIAL CONFLICTS OF INTEREST. FURTHERMORE, BOARD MEMBERS AND EMPLOYEES, IN THE COURSE OF MEETING OR ACTIVITIES, ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST AS WELL AS RECUSE THEMSELVES FROM DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT AND VP/GENERAL MANAGER IS REVIEWED ANNUALLY BY THE CHAIRMAN OF THE BOARD IN THE CONTEXT OF PERFORMANCE, THE ECONOMIC ENVIRONMENT, COST-OF-LIVING CHANGES, AND OTHER COMPARABLE POSITIONS AT SIMILAR FOR-PROFIT AND NOT-FOR-PROFIT ORGANIZATIONS. A RECOMMENDATION IS MADE TO THE BOARD OF DIRECTORS FOR REVIEW AND APPROVAL. THE RECOMMENDATION AND PROCESS ARE DOCUMENTED. THIS PROCESS IS DONE ON AN ANNUAL BASIS AND AS PART OF THE ORGANIZATION'S BUDGETARY PROCESS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AND FORM 1023 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE. THE RETURN IS POSTED ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST OR BY CALLING THE ORGANIZATION DIRECTLY. FORM 990, PART IX, LINE 11G SCHOOL PROGRAM CONSULTANTS: PROGRAM SERVICE EXPENSES 449,878. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 449,878. TEMPORARY HELP: PROGRAM SERVICE EXPENSES 368. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 368. PAYROLL PROCESSING: PROGRAM SERVICE EXPENSES 22,861. MANAGEMENT AND GENERAL EXPENSES 4,060. FUNDRAISING EXPENSES 434. TOTAL EXPENSES 27,355. CONSULTING: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 95,661. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 95,661. FORM 990, PART XI, LINE 9: EQUITY INTEREST IN OPERARTING LOSS OF VERITUS, LLC -54,047.