Undue Medical Debt (R.I.P. Medical Debt) Charity Rating
Jan 8, 2025
The legal name of Undue Medical Debt, formerly known as R.I.P. Medical Debt, is Medical Debt Resolution. The mission of the charity, founded in 2014, is simply “to end medical debt.” It achieves this by buying medical debt from healthcare providers and debt collectors then forgiving the debt. However, not everyone is qualified to receive help. To generally qualify an individual must earn four times (or below) the federal poverty line, and the medical debt must be greater than or equal to one’s annual income.
CharityWatch analyzed the audited financial statements and IRS tax Form 990 of Undue Medical Debt and determined that in fiscal 2023 the charity spent 81% of its cash expenses on programmatic activities and 19% on overhead, and that it cost the charity $8 to raise each $100 in cash support.
While Undue Medical Debt earned an “A” rating from CharityWatch for financial efficiency, its final grade was downgraded to a “C+” due to its years of available assets exceeding 3 years’ worth its annual budget. Based on our analysis of its fiscal 2023 financial reporting, CharityWatch determined that Undue Medical Debt could continue to operate for 4.1 years at 2023 spending levels without raising another penny in revenue.
Undue Medical Debt has been the recipient of large grants which may require time to spend down, such as a $50 million grant in 2020 and $30 million grant in 2022, respectively, from MacKenzie Scott. Subsequent to the fiscal year on which CharityWatch’s most recent rating of Undue Medical Debt is based, the charity announced that it received a rare third gift from the billionaire philanthropist totaling $50 million.
According to the Undue Medical Debt (UMD) audit of December 31, 2023 (Note 18, Subsequent Events, Change of Name):
“Since filing a certificate of assumed name with the state of New York on April 9, 2024, the Organization has been doing business as Undue Medical Debt.”
According to the Undue Medical Debt (UMD) audit of December 31, 2023 (Note 14, Concentrations):
“…During the year ended December 31, 2023, one single contributor accounted for more than 5% of the Organization’s total revenue (excluding contributed nonfinancial assets)…”
“During December 2022, one single contributor accounted for more than 70% of the Organization’s total revenue (excluding contributed nonfinancial assets).”
According to the Undue Medical Debt (UMD) audit of December 31, 2023 (Note 16, Related Party Transactions):
“…During the years ended December 31, 2023 and 2022, the Organization paid consulting fees totaling $99,000 to a consulting firm, the founder and CEO of which is an immediate family member of an individual on the Organization’s board of directors.”
According to the Undue Medical Debt (UMD) tax filing of December 31, 2023, IRS Form 990, Schedule L, Part IV, Business Transactions Involving Interested Persons:
The “Name of interested person” is reported as “Dini Von Mueffling Consulting.”
The “Relationship between interested person and the organization” is reported as “Family member of Chairman.”
The “Amount of transaction” is reported as “99,000.”
The “Description of transaction” is reported as “Consultant.”
According to the Undue Medical Debt (UMD) tax filing of December 31, 2023, IRS Form 990, Schedule L, Part V, Supplemental Information:
“The owner of Dini Von Mueffling Consulting is a family member of the Board Chairman and the Board Secretary.”
According to the Undue Medical Debt (UMD) tax filing for the fiscal year ended December 31, 2023, UMD reports re: Supplemental Information to Form 990 or 990-EZ (IRS Form 990, Schedule O):
Regarding family or business relationships among officers, directors, trustees, or key employees (IRS Form 990, Part VI, Section A, Line 2):
“Ted Sann, Director and Secretary, is the brother-in-law of William Von Mueffling, Director and Board Chair.”