2011 Annual Report

Desert AIDS Project meets the evolving medical and social service needs of people living with HIV/AIDS by providing direct services and advocacy, while working to prevent new infections through education and outreach.

2011

ANNUAL

REPORT For the year ended June 30, 2011

2011 ANNUAL REPORT

Board of Directors Curtis Ringness Jr., Chair Hon. Steve Lachs, Vice Chair Tammy Fox, Secretary Fred Drewette, Treasurer Ted Briggs Kathie Browne Jim Casey Robert Karl Jr. DDS Steve Kaufer Barbara Keller Bruce Purdy Gary Riley Russ Russell, Chair Emeritus Lanny Seese, MD Gregory Seller Karolee Sowle Stephen Winters

D.A.P. Directors

David Brinkman, MBA CEO Barry Dayton Director of Marketing and Communications Joy Hamilton, MD, MBA Director of Clinical Services Robin Johnson Director of Social Services Sue Knollenberg, CFRE Director of Resource Development Brande Orr, MBA Interim Director of Programs Mary Park, CPA Chief Financial Officer Sheri Saenz Director of Human Resources Mike Scarff Director of Retail

What have we learned after

30 years of AIDS? I returned from the USCA (U.S. Conference on AIDS) with a renewed sense of hope but an even deeper appreciation for how much lies ahead of us, particularly after joining a caucus of 90 CEOs of AIDS service organizations from around the U.S. One of the topics most discussed in this eight-hour meeting was HIV prevention and the challenges surrounding it.

It was clear that USCA attendees felt that the “medical home” model of HIV prevention in the U.S. is providing the greatest return. I am proud to say that it’s been implemented at Desert AIDS Project, along with some other significant improvements that you will find on pages 10-11 of this Progress Report, which also takes a look back at our fiscal year ending June 30, 2011.

I hope that you will take a few minutes to read through these pages – be sure to click on any links for greater detail.

In the near future, we’ll be bringing you more on our vision for a Coachella Valley-wide HIV prevention campaign. We’ll encourage all health care facilities -2-

DESERT AIDS PROJECT

L etter from the CEO to help us get “HIV-positive unawares” into care while pushing to bring the local infection rate below, rather than three times over, the national average as it is currently.

We know that expanded access to HIV care, as promised under the National HIV/AIDS Strategy and the Patient Protection and Affordable Care Act, is essential. In keeping with a paper released in October 2011 by the Infectious Diseases Society of America (IDSA,) D.A.P. has built an HIV Care Model with these essential components:

1.

2.

3.

4.

“T

here’s a new generation who have never known a world without AIDS … If we step up our work, young people in this country can live to see a world without AIDS.”

HIV testing and linkage to care Providing a “medical home” for those with HIV/AIDS Medical providers with specific HIV expertise Holistic care and social services

David Furnish Elton John AIDS Foundation U.S. Conference on AIDS October 2011

Thanks to your support and that of so many others, we have been able to provide essential HIV/AIDS care and prevention services to those in our community for more than 27 years. But I really hope that one day Desert AIDS Project will be rendered useless because everyone with AIDS is cured – or at least has complete access to the medical care, medication, and support services they need – and that no one ever needs to worry about becoming infected with HIV. Until we no longer have to say “AIDS is not over,” Desert AIDS Project remains at the intersection of Vista Chino and Sunrise where we will continue providing life-sustaining services to those with HIV and AIDS as long as they need us.

Until there’s a cure …

David Brinkman, MBA CEO, Desert AIDS Project -3-

2011 ANNUAL REPORT

World AIDS Day

Desert AIDS Project commemorated World AIDS Day on Thursday, December 1, by hosting a variety of events throughout the day, beginning with a four-hour live radio broadcast on EZ-103 FM radio with Dan McGrath and Vicki Steele who encouraged pledges and donations from listeners.

Slightly before sunset, a crowd assembled outside D.A.P.’s main entrance for the lighting of the building ceremony despite the chilly weather. International AIDS Activist and D.A.P. client Nicholas Snow gave the first live performance of his HIV testing anthem, “The Power to be Strong”.

The program featured CEO David Brinkman, a heartfelt message by longtime D.A.P. client Teri, and a sampling of songs from Caballeros: The Gay Men’s Chorus of Palm Springs.

Attendees were treated to a free dinner and a screening of “Still Around: 30 Years of AIDS, 15 Stories of Hope”, a compilation of short films documenting the lives of people living with HIV/AIDS. Following the film, a short panel featured D.A.P. volunteer and director of one of the short films, Daniel Cardone.

For the entire month, a red memorial wall in the lobby features D.A.P.’s latest PSA campaign and clips from CBS news anchor Hank Plante’s piece on HIV/AIDS. The memorial wall also gives the public a space to write a message honoring loved ones who have passed from the disease.

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DESERT AIDS PROJECT

Brande Orr, Interim Director of Programs, represents us on this important group which serves as the policy-making body for Ryan White HIV/AIDS Part A Program in San Bernardino and Riverside Counties.

OUR ADVOCACY

The Client Advocacy Committee helps our clients to engage in the issues that affect them directly, both within the agency and in the greater political landscape.

This past year saw the success of our awardwinning PSA campaign, “AIDS is not over”. You can watch our latest round of PSAs, including “Make a difference - save a life” and “Faces of Hope” online right now.

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2011 ANNUAL REPORT

REVENUES

With a struggling economy and threatened government funding, we have continued to evolve and adapt to the ongoing challenge of meeting the needs of those we serve.

Revenues of $11.8 million during the fiscal year ended June 30, 2011 reflect a decrease of more than $1.3 million from the prior year. This included a loss of federal awards of almost $600,000 as compared to the previous year.

33%

Grants and Contracts: $3,975,248

Grants and contracts awarded by public and private funders provide support for free and confidential HIV testing, food, mental health, and more. This includes funds awarded from the Ryan White HIV/AIDS Program.

Thrift Shops: $3,643,299

New merchandise, in addition to gently-used donated and consigned items, are sold through our chain of five Revivals stores, almost completely staffed by volunteers.

24%

31%

Donor Support: $2,822,295

Individual contributions, bequests through estate plans, a donated art collection, and other non-cash contributions. Fundraising events provided more than $1.7 million gross.

Fees for Service: $913,693

Private insurance, Medicare, MediCal, and MISP (Medically Indigent Support Services) help defray medical care costs.

4%

8%

Investments, Interest, and Other Income: $483,368

Income on bequests helps D.A.P. to fund the desired “nest egg” of several months of operating expenses for especially difficult financial times.

A summary of the year’s revenues and expenses is shown above. Please see the Independent Auditors’ Report, Financial Statements, and Supplementary Information on the “Supporting D.A.P.” tab of our website for more information. D.A.P. received a clean opinion from the auditing firm of Lund & Guttry.

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DESERT AIDS PROJECT

Program Services: $5,031,881

Thrift Shops: $2,960,078

Net excess of $683,221 from Revivals helps provide HIV/AIDS medical care and social services to primarily low-income clients, most residing in eastern Riverside County.

Management and General: $1,749,966

EXPENSES

43%

Direct client services including case management, HIV-specialty and primary medical care, oral health care, home health care, pharmaceutical assistance, Community Center activities such as psychosocial support, substance abuse counseling, psychiatric care and mental health therapy as well as support services such as food, transportation, and housing.

25%

Providing comprehensive, compassionate HIV/AIDS care and other essential client services is intensely people-driven. We strive to manage overhead expenses while paying sufficiently competitive salaries to attract the best staff.

15%

Special Event and Other Fundraising: $1,492,702

Events like the 23rd Palm Springs AIDS Walk and 17th Annual Steve Chase Humanitarian Awards are key advocacy tools in helping to increase awareness and funding.

Education/Prevention: $225,797

2%

13%

Presentations on HIV prevention, treatment, and services to an estimated 6,000 children and adults each year. Free and confidential HIV testing – with results in about 20 minutes with no blood draw – at 21 locations selected for their access to high-risk populations.

Public Policy and Marketing: $201,552

Advocating for those living with HIV/AIDS, through work with organizations like the CAEAR Coalition, is essential to assure ongoing government funding. Enlisting public awareness and 2% support through our award-winning “AIDS is not over” public service campaign and online activity through Facebook, Twitter, YouTube, and elsewhere helps make this possible.

We are grateful to our board of directors for their vigilant oversight and guidance, our staff for their compassionate care and careful expense management, our 400+ volunteers for their dedication, and a generous local philanthropic community that allowed us to close our fiscal year with a slight increase in net assets.

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2011 ANNUAL REPORT

standards of care Always improving our

Our Wells Fargo HIV Health Center at our main campus in Palm Springs is the center of the services we offer to those in our local communities who are living with HIV or AIDS. Desert AIDS Project also provides medical care at a clinic in San Bernardino. And our Indio office, opened in 1995, offers case management services and free and confidential HIV testing.

Creating a“medical home” D.A.P.’s Palm Springs medical clinic is co-located with 16 other programs providing clients with convenient, one-stop access to a comprehensive continuum of care. It has now been certified as a Medical Home by the Accreditation Association for Ambulatory Healthcare. The certification recognizes Desert AIDS Project as meeting specific standards of care that are patient-centered, physiciandirected, comprehensive, accessible, and providing for ongoing continuity of care.

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DESERT AIDS PROJECT

SUCCESSES

New Specialty Services: Telemedicine As part of our medical clinic at D.A.P.’s Palm Springs campus, we offer speciality services to meet the emerging needs of clients. In addition to HIV-specialty care, specialty services include physiatry, gynecology, anoscopies, and ultrasounds.

Because HIV/AIDS is often accompanied by neurological concerns and risk for cancer, we are now able to refer clients to specialists at the University of California, San Diego (UCSD) School of Medicine – without having to travel there – through a “telemedicine” partnership with UCSD. Our nurses facilitate these consultations by means of equipment that includes a high-resolution camera and sound system, allowing the UCSD medical provider and the D.A.P. client to communicate in real time.

We are hoping to expand these services soon to include oncology consultations as well.

Electronic Health Records

Although D.A.P. has had an electronic medical record system for years, we knew that technological advances could significantly improve it. Now thanks to funding from Desert Healthcare District and a capacity-building grant from the Ryan White HIV/AIDS Program Part C, we are implementing a new Electronic Health Records (EHR) system. The new EHR will improve clinic flow time, allow for a faster exchange of internal and external information, and increase our capacity to implement clinical preventive services.

Apart from improved client care, the new EHR will also raise our charge-capture rate from all insurance carriers, allowing us to release general operating funds to other D.A.P. programs benefiting clients.

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2011 ANNUAL REPORT

Les Dames du Soleil

Palm Springs AIDS Walk

We put the FUN in fundraising throughout the year!

EVENTS - 12 -

Steve Chase Humanitarian Awards

DESERT AIDS PROJECT

Dining Out for Life

Thanks also to our friends who benefit client services with events like Celebrity Doodles, Dancing with the Desert Stars, SPARKLE!, Tour de Palm Springs, and more!

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2011 ANNUAL REPORT

Even as Desert AIDS Project adds 20-30 new clients each month, funding for essential needs like medications and treatment remains flat or even decreases. That’s why our donors are so important in helping us serve any client who needs our help.

PLEASE

Ways to Give

SUPPORT OUR WORK You can keep HIV testing free and confidential for just $45, which buys three test kits

When you become an annual giving member of either program, you’ll receive benefits including tickets to our annual Steve Chase Humanitarian Awards gala.

As a member of our legacy program, you help us continue offering essential HIV/AIDS programs and services, during your lifetime or in your estate plan. Whether you want to eliminate taxes or benefit from an increased income stream, there is a gift to fit every objective: Outright gift Gift of life insurance Charitable remainder trust Living trust Retirement plan gift Charitable gift annuity Bequest in a will Gift of real estate Charitable lead trust

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Helping us build a more DESERT AIDS PROJECT

secure future Rick Hutcheson and Rob Kincaid have been members of Partners for Life for many years. But they knew they wanted to do even more for the clients of Desert AIDS Project and its HIV prevention education efforts.

“A charitable gift annuity seemed to offer benefits on many fronts,” said Rick. “First, we get to support an organization that is providing critically important health services for the community where we live. But since it’s a charitable contribution, our gift provides us a tax benefit in the year we make it - and it will make annual payments over our lifetimes. That stands to make a better return than nearly any other investment I know of today.”

In addition, their gift will provide assured annuity payments - not affected by the economy’s ups and downs that are partially income tax-free during their estimated life expectancy. Generally, the older anyone is when they begin to receive payments from a gift annuity, the higher those payments will be.

Learn more about a broad variety of planned giving and estate planning topics.

Special tax incentive before 12/31/11 If you are age 70-½ or older, the Charitable IRA Rollover provision of the Tax Relief Act allows you to make a direct transfer of up to $100,000 from your Individual Retirement Account to Desert AIDS Project without income tax. Read more about it here from Reuters Money.

This might make sense if you’re required to take a minimum distribution but don’t need the income right now. Directing your IRA distribution to Desert AIDS Project instead might be a way for you to avoid having to add the amount of the distribution to your 2011 adjusted gross income.

Contact Sue Knollenberg, Certified Fund Raising Executive at 760-323-9641.

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APPRECIATION

Many thanks to our volunteers who donate their time and skills to help our clients each and every day. We couldn’t do our work without them.

Thanks to the Renaissance Palm Springs Hotel for their generous support of the 2011 Desert AIDS Project Volunteer Appreciation Dinner, as well as Icon Presentations, Rick Draughon, Trio Restaurant, Studio M, LULU, and the evening’s hostess, Bella da Ball, with performances by Allison Annalora, Carol Kamenis, Sassy Ross, Fleet Easton, Melissa Startman, and Pinkie Meringue Shimmer.