National Rosacea Society
an editorial by Brady Barrows
Please note: In my book, Rosacea 101, (published in October 2007) in Appendix F, National Rosacea Society, page 173, you can read an updated version of what I wrote below which is the basis for Appendix F. My new book is a comprehensive basic rosacea 101 knowledge for rosacea newbies who want to learn about the conventional and alternative treatments for rosacea. There is also a chapter on Rosacea Research and Non Profit Organizations on page 72.
There are few non profit organizations for rosacea that are as popular as the National Rosacea Society is among rosaceans which has done some good to help rosaceans. For instance, they have a Rosacea Hotline (1-888-NO-BLUSH), a web site, email, publications for rosaceans, a Newsletter, Information for Physicians, and last but not least some research. Probably one of the best things the NRS has done is to classify rosacea which has become the standard promoted to dermatologists, even if there is at least one critic of this classification system. And who cannot appreciate the prestigious medical advisory board that oversees recommendations on what rosacea research the NRS should fund?
Over the years 1998 thru 2006 a total of $4,239,706 of the total funds donated ($6,980,285) to the NRS have been spent on one independent contractor, Glendale Communcations Group, Inc., of Barrington, Illoinois which is owned by Sam Huff. In 2006, another independent contractor was used by the NRS, Park Mailing and Fulfillment, Inc., which is an affiliate of Glendale.
Sam Huff is also the Director of the NRS. That means that the NRS is spending over 60% of the funds of the NRS on one private contractor which the director of the NRS owns! [source] How can a rosacean find out how the NRS spends its funds?
Report Form 990
What most rosaceans do not know (as well as the general public) is that since the NRS is recognized by the Internal Revenue Service (IRS) of the U.S. government as a non profit organization. Form 990, the report sent to the IRS by non profit organizations is available to the public for inspection. That means anyone can find out how the NRS (or any public non profit organization) spends donated money. Form 990 does not report where the money comes from since this is not required by the law. It is required by law to state whether the funds come from the general public or from private groups but not the identity of either. The report also must state any salaries and their amounts, as well as the top five independent contractors used and the amounts.
It is public knowledge that the NRS is funded by a grant from Galderma. "The National Rosacea Society, which is funded by a grant from Galderma..." source > http://www.postgradmed.com/issues/1999/02_99/millikan.htm [see bottom of article last paragraph]
Candela Corporation, Galderma Laboratories, Intendis, Stiefel Laboratories, Inc., Berlix and other pharmaceutical companies have been known to donate to the NRS
For the past years (1998 thru 2006) the NRS has received in donations a total of $6,980,285 and spent a total of $685,746 on rosacea research. That means that about 9% of total donations was spent on research. That means that of every dollar donated to the NRS about nine cents is spent on research and the rest is used to run the organization and provide the services mentioned above in the first paragraph. An interesting expense is mentioned in Part II - Compensation Paid to the Five highest paid independent contractors for professional services to Glendale Communications Group, Inc. owned by Samuel B. Huff, the Director of the National Rosacea Society. The total amount given to Glendale Communications Group, Inc. for the last nine years amounted to $4,239,457, which is over 60% of the total funding.
In the last two years (2005 and 2006) Form 990 has reported the salaries of Glendale and Park employees and the total for both of those years was reported to be $462,986. The employees for these two corporations sit on he board of directors of the NRS.
This statement appears on the NRS website:
"The National Rosacea Society is a nonprofit organization that is tax exempt pursuant to Section 501(c)(3) of the Internal Revenue Code. Only 16 percent of our budget covers administration and fundraising, leaving the remaining 84 percent for program services including research grants, public awareness, public education and medical scientific education. Contributors may designate the use of their donations for specific programs, such as research grants, by noting so on their check." [source]
However, the facts show otherwise when one checks Form 990. Form 990 is public knowledge since the NRS is a non-profit organization. You can request a copy of this report from the NRS and if you do not receive a copy of this report within thirty days the NRS may be in violation of the law. However, if you read below there is also a way to obtain this report on the internet and for your convenience the Form 990 pdfs are provided below to download yourself and check the figures >
This is a breakdown of the report from 2006 thru 1998:
Year
Form 990, line 12, Total Revenue
Line 17, Total Expenses
Total Spent on Rosacea Research Grants
Schedule A, Part II - Compensation Paid to the Five highest paid independent contractors for professional services
1 Years1998, 1999, 2000 Form 990, Schedule A, Part II, paid to independent contractor:
Sam Huff & Associates, Inc.
800 S. NW Hwy, #200
Barrington, IL 60010 for "Public Relations"
2 1998 and 1999 Form 990, Part III, Line A, Statement 4, Page 3, Statement of Program Service Accomplishments, Grant Program
3 Years 2000, 2001, 2002, 2003 Form 990, Part II, Line 22, Grants and Allocations
4 Years 2001, 2002, 2003, 2004, 2005 Form 990, Schedule A, Part II, paid to independent contractor:
Glendale Communications Group, Inc.
800 S. Northwest Highway #200
Barrington, IL 60010 for "Communications Services"
5 2006 Form 990, Schedule A, Part II, paid to independent contractors:
Glendale Cmmunications Group, Inc.
800 S. Northwest Highway #200
Barrington, IL 60010 for Communication Services - $38,7912
and
Park Mailing and Fulfillment, Inc.
120 Lagaschuulte St
Barrington, IL 60010for Mailing and Fufullment - $89,744
6 Federal Footnotes Statement 4 reports that Park is an affiliate of Glendale and also reports the salaries of Glendale employees:
Name
Glendale & Park Position
2005 Salary
2006 Salary
Samuel B. Huff
President
$202,948
$152,388
Datha J Olney
Technical Support
8,221
$16,726
Mary F. Erhard
Medical Editor (only Glendale)
42,587
$40,116
Total Salaries
$253,756
$209,230
Download report
Fiscal Year 2006 -
Fiscal Year 2005 -
Fiscal Year 2004 -
Fiscal Year 2003
Fiscal Year 2002
Fiscal Year 2001
Fiscal Year 2000
Fiscal Year 1999
Fiscal Year 1998
You will need to download Adobe Acrobat to read or print Form 990 and you can download FOR FREE by clicking
I have written the IRS a letter about this which you can read by clicking here.
As I point out in my letter to the IRS that it is odd that board of directors receive no salary at all, yet the director receives over $3.7 million through owning corporations that are independent contractors hired by the NRS for over nine years by owning the corporation that receives 60% of the NRS funds as in independent contractor seems to be somewhat irregular. The Form 990 for 2005 a new item has been reported which was never done in any of the previous reports to the IRS. In Part V-A - Line 75C, Statement 4, it says, and I quote:
"Three of the seven directors of the National Rsacea Society (NRS), Samuel B. Huff, Datha J. Olney and Mary F. Erhard, are employed by Glendale Communications Grup (Glendale). Glendale provides the personnel and infrastructure, and carries certain outside expenses, needed to support and implement the program services and administration of the NRS, and also provides services to other clients unrelated to the NRS. The postiions of these NRS directors with Glendale and their total salaries from Glendale in 2005 are as follows:
Because of their relationship, NRS directors associated with Glendale abstain from all board of director votes affecting Glendale, and only the NRS directors not associated with Glendale (The "Independent NRS Directors") review and approve activities and budgets affecting Glendale. Each year, the Independent NRS Directors review the continuation of the NRS's relationship with Glendale, and must approve retention of Glendale by the NRS annually. In additin, at least one of the Independent NRS Directors reviews monthly invoices from Glendale to the NRS. Glendale's fees to the NRS are determined on the same basis as for other Glendale Clients, and the Independent NRS Directors are provided with competitive cost estimates for specific projects undertaken by Glendale on behalf of the NRS." [Source Form 990 - Year 2005]
You may see a breakdown of the NRS expenses for 2004 by clicking here. I encourage others to do their own homework and read the Form 990s that are available and see for yourself what I have found. Correct me if I am wrong. From the above you can see what per cent of the total money received goes to rosacea research, which about fifty per cent or more goes to Glendale Communciations owned by Samuel B. Huff, President of the NRS. Way to go Sam! This gives new meaning to the business, 'Sam's Club.' So if you donate to the NRS, of every dollar received usually less than ten cents will be spent on research while ninty cents goes to the organization's expenses. What is the solution to this? Most rosaceans could care less and do not want to do anything about this. I have tried to do something and you can too. Just click here if you want to help. If you want to read more details you should simply request Form 990 yourself and the NRS will mail it to you which is part of their expenses.
Here is an interesting Newsletter which contains an article, 'NRS - Rosaceans Deserve Better' which you can read by clicking here.
For a breakdown of the NRS expenses year by year from 1998 through 2002 click here.
What percentage of donations come from rosaceans (more info)?
At least one rosacea research grant was awarded to one of the medical advisory board members and there may be other research grants that need to be investigated (more info).
Geoffrey Nase, Ph.D., says that the NRS, "has chosen the top five board members to fund studies. These board members are paid by Galderma, have published many articles on rosacea for galderma and the metroproducts, and MOST important, fund each other's grants.....which are related to reinforcing why metronidazole is so great. There are 6 huge problems in that sentence. Any one of those infractions would get you kicked off a nonprofit organization. Period...." source
Dr. Nase also reports this notable conflict of interest:
"...Dr. Dahl is on the Medical Advisory Committee/board of the NRS responsible for funding grants that we (the rosacea sufferers) have donated money to. No one on the Medical Advisory Committee or the board can ever receive or apply for a grant in any formal organization. This is never done. Ever. Yet, Dr. Dahl submitted a grant and received money for the study and also approved two grants by two other board members on that same committee. This is unheard of..." source
There is at least one other critic of the NRS about its privacy policy.
If you want more information read below with emails I have exchanged with rosaceans about the NRS.
Someone helped me (Michelle) find a way to get the Form 990 Report on the NRS and a copy of this is available online.
In 2000 the NRS received over $954,000 of which over $12,000 was interest and spent over a million bucks for 'grants, program services, management and fund raising.' By the way, the total expenditure on grants was only a little over $94,000 which is less than 10% of the expenditures. At the end of 2000 the net assets of the NRS was $537,497.
The NRS spent $18,038 for online services, $155,046 for 'program services expenses' (with regard to the $94,564 grants given out), $75,219 for the physician referral service, $42,819 for a 'rosacea hotline,' $174,422 for the Rosacea Review Newsletter, $386,429 for Awareness and Education, and $148,772 for 'Fulfillment Services.' This totals over a million bucks.
The NRS has three listed names, Samuel B Huff, President, Dathy J Olney, Treasurer, and Mary A Earhard, Secretary. It is of note that the only listed expenditure for "Part II - Compensation of the Five Highest Paid Independent Contractors for Professional Services" was paid to Sam Huff & Associates, Inc. of Barrington, IL, for 'Public Relations' in the amount of $744,075.
You have to be a certified public accountant or maybe one of Arthur Anderson's men to figure out some of this, but it sure looks like if you donate to the NRS you can see where your money is going by reading FORM 990 which is public knowledge available for free.
Maybe there should be another organization for rosacea with a better expenditure approach?
You can get all this information in a pdf at this url >
A copy of the 2001 Form 990 from the NRS to the IRS showed a decrease in receipts and a reduction in research grant expentirures which I have a personal copy of. Total receipts were $248,554 and total research grant expenditures were $72,230. Total expenses were $451,894 and the net assets at the end of year 2001 were $202,637.
The Report for 2001 under Part IV-A has an interesting item on line 26 which goes like this:
b. Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental unit or publicly supported organization) whose total gifts for 1997 through 2000 exceed the amont shown in line 26a ($64,749). Enter the total of all these excess amonts = $2,656,127.
c. Total support for Section 509(a) (1): enter line 24, column (e) = $3,237,446
d Add: Amonts from column (e) for lines 18 = $33,917 (Interest received from 1997 through 2000) line 26b = $2,656,127
line 26d $2,690,044
e Public support (line 26c minus line 26d) total = $547,402
f. Public support percentage (line 26e numerator) divided by line 26c (denominator) = 16.91%
To obtain a copy of the 2001 Form 990 sent to the IRS by the NRS you will need to request a copy from the NRS or click here for a comment on this report.
My comment on this report is available by clicking here.
From: Brady Barrows <brady.barrows@verizon.net>
Date: Wed Sep 11, 2002 09:41:29 PM US/Eastern
To: rosaceans@yahoogroups.com, rosacea-diet-users-support-group@yahoogroups.com, rosacea-support@yahoogroups.com
Subject: National Rosacea Society, Sam Huff and Glendale Communications
Someone informed me who requested to be nameless that Glendale Communications Group, Inc. of Barrington, IL. is owned by Sam Huff.
Sam Huff is the President of the National Rosacea Society of Barrington, IL.
$288,626 was paid to Glendale Communications Group, Inc, listed as a contractor by the
National Rosacea Society on the 2001 Form 990 to the Internal Revenue Service.
You may request a copy of the 2001 Form 990 from the National Rosacea Society which will
be mailed to you for free by sending an email to this address or using their toll free number >
If they do not send you a copy in thirty days the NRS may be in violation of the law.
Brady Barrows
On Wednesday, September 11, 2002, at 10:23 PM, Adam wrote:
What does this mean? Has he been pocketing all our donation $$ or
something? That would be just great. Not only is NOBODY out there even
trying to work on an improved treatment for Rosacea, but the NRS is stealing
the $$ we donate? Or am I reading this wrong. (Which is totally possible,
I don't really understand this stuff)
Adam
From: Brady Barrows <brady.barrows@verizon.net>
Date: Thu Sep 12, 2002 07:03:34 AM US/Eastern
To: rosacea-diet-users-support-group@yahoogroups.com
Subject: Re: [rosacea-diet-users-support-group] National Rosacea Society,
Sam Huff and Glendale Communications
Adam,
Glad you are still in the group. Have you ever tried the Rosacea Diet yet?
As for whether Sam Huff is pocketing all the donations, I would not come
to that conclusion hastily. On the 2001 Form 990, the NRS received
$248,554 from public support and interest on savings
and investments plus $46,744 for donated services and use of facilities
making a total revenue of $295,298.
The total expenses for the NRS for 2001 came to $451,894 of which
$72,230 was for research grants. The program service expenses incurred
to award these research grants is where the rest of the money was spent.
Public awareness cost the NRS $97,180 and patient information cost the
NRS $142,269 are a couple of examples.
You may ask how the NRS can spend more money than it receives?
The NRS had net assets at the end of 2000 of $405,977 leaving at
the end of 2001 a total of $202,637 left in net assets.
However, of the total amount spent, Glendale Communications Group, Inc.
received $288,626 which Sam Huff is owner. So the NRS did spend some
money on research.
You can read more on this at this url >
http://www.rosacea-diet.com/html/nrs.html
Brady Barrows
Another post on this subject can be found at this url >
