FINANCIAL REPORT, ACCOUNTING YEAR ENDING JUNE 30, 2019

TYPE 1 DIABETES DEFENSE FOUNDATION

August 15, 2019

Board of Directors
Type 1 Diabetes Defense Foundation
Eugene, Oregon

Report on Financial Statements

The accompanying unaudited financial statements of the Type 1 Diabetes Defense Foundation
(“T1DF”) include the statement of financial position as of June 30, 2019, and the related statements of
activities, functional expense and cash flow for the year then ended, with related notes to the financial
statements. T1DF’s revenues for the accounting year beginning July 1, 2018, including donated
services, amounted to $35,077 and expenses to $33,065:

REVENUE/EXPENSES SOURCES OF CASH REVENUE

35,077
35,000 0%
33,065
37%
0%

Total Revenues
30,000 Government
Expenses
Corporations
Individuals - Public Support
Individuals - Other

25,000
2018
63%

FOR EVERY $1.00 SPENT ALLOCATION OF EXPENSES

6.3%

0.4%

93.3 ¢ 6.3 ¢ 0.4¢ Programs

Operations
goes to goes to goes to
Development
programs operations development

93.3%

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 FINANCIAL REPORT, ACCOUNTING YEAR ENDING JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Thanks to the generosity of more than 200 new 40,000 $35,077

individual donors, T1DF met the IRS’s “public support” $34,005

test for public charities, with 63% of cash revenues

received from the general public (total revenues
include donated ). $17,849
20,000

T1DF’s fundraising remains below target due in large

part to an unfavorable media and political $6,815

environment that resulted in reduced media access $525

$0 $0
during the past year. T1DF’s fundraising performance 0
should rebound in 2020 as we expect to resume active 2015 2016 2017 2018

litigation and to benefit from renewed public and Total Revenues

Public Support
media interest in practical and equitable solutions.

T1DF’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America.

To the best of my knowledge, the financial statements referred to above present fairly, in all material
respects, the financial position of the Type 1 Diabetes Defense Foundation as of June 30, 2019, and the
results of its operations and its cash flows for the year then ended.

Julia Boss
President

Attachments
A. Statement of Financial Position as of June 30, 2019
B. Statement of Activities
C. Statement of Functional Expense
D. Cash Flow Statement
E. Notes to Financial Statements

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 FINANCIAL REPORT, ACCOUNTING YEAR ENDING JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

About T1DF. The Type 1 Diabetes Defense Foundation is a nonpartisan Oregon-based 501(c)(3) nonprofit
dedicated to advancing equal rights and opportunities for all people with type 1 and other forms of insulin-
dependent diabetes. We focus on the significant social impact of living with a condition that requires patients to
make constant dosing decisions with a drug that, without careful management and constant monitoring, can kill
them. T1DF strives to improve the regulatory, legal and social ecosystem essential to development and adoption
of new technologies and therapies, with an explicit commitment to inclusive policies that will deliver for all
Americans with diabetes, insured and uninsured, equal access to standard-of-care pharmaceuticals and
equipment. T1DF accepts no funding from the pharmaceutical, pharmacy benefit management, or insurance
industries or from related pass-through organizations, projects, coalitions or foundations.


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 FINANCIAL REPORT – ACCOUNTING YEAR ENDED JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Attachment A

Statement of

Financial

Position as of

June 30, 2019


STATEMENT OF FINANCIAL POSITION
FOR YEAR ENDED JUNE 30, 2019

ASSETS Total
Current Assets
Cash
SELCO Business Checking Account 2,866
SELCO Membership Share Account 5
Total Cash 2,871
Accounts Receivables (Pledged Contributions) 1,600
Total Current Assets 4,471

Total Assets $ 4,471

LIABILITIES AND NET ASSETS

Liabilities
Accounts Payable 0
Deferred Revenue 0
Total Current Liabilities 0
Net Assets
Temporary Restricted 790
Unrestricted 3,681

Total Net Assets 4,471

Total Liabilities and Net Assets $ 4,471

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 FINANCIAL REPORT – ACCOUNTING YEAR ENDED JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Attachment B

Statement of

Activities
 STATEMENT OF ACTIVITIES
FOR YEAR ENDED JUNE 30, 2019

Temporarily
Unrestricted Total
Restricted
Revenue
Contributions 34,287 790 35,077
Miscellaneous 2 0 2
Total Revenue 34,289 790 35,079

Expenses

Program Expenses
Consumer Rights 30,943 0 30,943
Civil Rights 432 0 432
Total Program Expenses 31,375 0 31,375
Management and General 2,099 0 2,099
Fundraising 131 0 131

Total Expenses 33,605 0 33,605

Change in Net Assets 875 790 1,665

Net Assets, Beginning 2,806 0 2,806

Net Assets, End $ 3,681 $ 790 $ 4,471

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 FINANCIAL REPORT – ACCOUNTING YEAR ENDED JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Attachment C

Statement of

Functional

Expense
 STATEMENT OF FUNCTIONAL EXPENSE
FOR YEAR ENDED JUNE 30, 2019

Management
Program Fundraising Total
and General

Consumer Civil
Rights Rights
Advertising 315 50 365
Books, journal subscriptions 132 132
Conference registrations 282 82 364
Corporate and charitable registrations 50 60 110
Court records 1,392 1,392
Financial service fees 20 61 81
Insurance 224 224
Meals and entertainment 936 40 107 1,083
Memberships 0 0
Miscellaneous 132 132
Postage and shipping 443 8 59 510
Printing services 130 10 140
Public Records Request fees 59 59
Promotional items 0 0
Software subscriptions 352 352
Supplies 244 244
Technical research and paralegal
18,000 18,000
services
Telephone and email 542 542
Travel 3,089 243 3,332
Website and IT servicees 543 543
Writing and editorial services 6,000 6,000

Totals $ 30,943 $ 432 $ 2,099 $ 131 $ 33,605

93% 7% 100%

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 FINANCIAL REPORT – ACCOUNTING YEAR ENDED JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Attachment D

Cash Flow

Statement
 CASH FLOW STATEMENT
FOR YEAR ENDED JUNE 30, 2019

Total

Cash Flow from Operating Activities

Receipts 11,979
Contributions 11,077
Pledged Contributions Received 900
Miscellaneous Income 2
Total Receipts 11,979
Cash Disbursements 9,605
Net Cash Provided by Operating Activities 2,374

Net Increase in Cash 2,374

Cash and Cash Equivalents, Start of Year 497

Cash and Cash Equivalents, End of Year $ 2,871

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 FINANCIAL REPORT – ACCOUNTING YEAR ENDED JUNE 30, 2019
TYPE 1 DIABETES DEFENSE FOUNDATION

Attachment E

Notes to

Financial

Statements
 NOTES TO FINANCIAL STATEMENTS
FOR YEAR ENDED JUNE 30, 2019

Summary of Accounting Policies

For this reporting period, we have accounted for operating expenses on a cash basis.

No fixed assets. In the future we will record asset values at historical cost, use straight-line
method of depreciation for most assets and double-declining method for computer
equipment and software.

Details Regarding Financial Statements

Publicly supported charity. T1DF met the IRS’s “public support test” in this fiscal year. With
contributions from more than 200 new individual donors, general public support amounted
to 63% of T1DF’s cash revenues. The balance of cash revenues was comprised of individual
contributions from board members or relatives of board members. T1DF’s Articles of
Incorporation (Article V) bar T1DF from accepting any donations from the pharmaceutical,
medical device, pharmacy benefit management, and insurance industries.

No salaried employees. General organization management performed without compensation

by T1DF’s officers. T1DF uses borrowed office space and equipment.

Program activities were accomplished via donated services. Although T1DF officers donated
hundreds of hours during the past fiscal year, for financial reporting purposes we have limited
donated services to a maximum of 100 hours per board member. Donated services were
received from:

• Charles Fournier, JD. Charles Fournier is a professional claims consultant with a French
engineering degree and a JD from The George Washington University Law School. He
has past professional experience with nonprofit management and compliance. His usual
professional billing range is $250 – $450 per hour. He donated research and analysis
services to T1DF during the fiscal year ending June 30, 2019. For accounting purposes,
Charles’s donated services have been valued at a discounted rate of $180 per hour

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 (maximum of 100 donated service hours x $180 = $18,000). All donated services were for
the Consumer Rights Program.

• Julia Boss. Julia Boss provides consulting services as co-founder of FBA Consult, an
Oregon-based construction consulting and litigation support firm, and has 20 years
experience as an editor, commercial writer and translator. Her usual professional billing
range is $60 – $100 per hour. During the reporting period ending June 30, 2019, she
donated the following services to T1DF: writing and editing T1DF research reports, press
releases, website content, media correspondence and other T1DF-produced documents;
managing T1DF social media. For accounting purposes, Julia’s donated services have
been valued at $60 per hour (maximum of 100 donated service hours x $60 = $6,000). All
donated service hours were for the Consumer Rights Program.

No Contingent Liabilities

T1DF is no longer a party in active litigation (withdrew, without prejudice, from the three
diabetes product cases in January 2019, pending termination of a tolling agreement signed
by plaintiffs’ counsel in In Re Insulin Pricing Litigation). T1DF faces no contingent liability
associated with litigation, nor any other contingent liability.

Record Keeping, Reporting, and Banking

T1DF primarily uses three applications to track and record outlays:

• Digital records are safeguarded in a dedicated Dropbox Business account. Dropbox

Business provides secure file sharing, storage and collaboration services (https://
www.dropbox.com/business). Physical records are kept in a secured office location.

• Expenses are tracked using Harvest (www.getharvest.com). Harvest is a best-in-class time

tracking and invoicing web-based application.

• For general accounting and reporting, we use QuickBooks Online (https://

quickbooks.intuit.com/industry/nonprofit-organizations/).

T1DF’s dedicated business banking facilities are provided by SELCO Community Credit
Union. SELCO is a Eugene-based, member-owned, not-for-profit financial cooperative. All
SELCO deposits up to $250,000 are federally insured by the National Credit Union Share
Insurance Fund of the National Credit Union Association (https://www.selco.org/media-
center).

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For Accounting Year Ended: EIN: Corporate Documents:
June 30, 2019 61-1811400 www.t1df.org/corporate/

IRS 501(c)(3) DLN: Contact:

26053438001837 Communications Director
media@t1df.org
Oregon Registry: www.t1df.org
1277418-90

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