Compassionate Touch Inc.

“Directors Todd Whitley and Georgeann Whitley are husband and wife.”

“Our operations are focused in 4 major areas in Texas. Our team is disbursed to 2 locations within Texas but works closely together to make decisions and ensure all locations operated consistently.”

“This Form 990 has been prepared by the Organizations accountant a CPA who is a part-time employee not a third party accounting firm and reviewed by a member of the Organizations Board of Directors with active involvement with the Organization. The Accountant and Reviewing Board Member have reviewed and discussed the form with the Organizations Executive Director who signed the form. All other Board members can review the form upon request.”

“All documents are available to the public upon request.”

“We have checked "other" for accounting method as we are using a modified accrual basis for our revenue to match revenue to the year in which it is spent for patient funding our primary program objective. We have a significant contributor who typically contributes every two years for funds to be used for patient funding over the following two years. This can cause large swings in our income from year to year since on the accrual basis all the income is recorded in the year the grant is received a significant grant amount in one year and zero in the next. By matching the revenue to the year it is spent we minimize these large income differences. See further explanation of this adjustment related to Part XI Line 9 explained in Schedule O. This adjustment plus the elimination of donated services and matching of event expenses against event income required by the 990 are the only differences between our accrual basis GAAP basis audited financials and the amounts reported in this 990.”

“| Description:, Explanation:, Amount:| We are modifying accrual basis revenue when contributions are made for use in a future period to match income to the periods in which it will be used for patient funding our primary program objective. On 11 20 2022 we received $450K for use in 2023 and 2024 so it was deferred in 2022s 990 and the amounts used in 2023 $332K and 2024 $118K were included in each respective years 990. Similarly we received a $1M pledge in April 2024 for use in 2024-2025; of this $391K was used and is reflected in 2024s income with the remaining $609K deferred to be included in 2025s 990 when used for patient funding expenses. The net effect of these adjustments was a $491K decrease in accrual-basis revenue net assets for 2024., Modified Accrual Basis Adjustment matching revenue from major grant with patient funding expenses, $491316|”

“| Explanation:| For number of forms W-2 filed we answered 0 but we do have amounts reported for salaries and wages in Part IX Expenses. Compassionate Touch shares employees with a related organization Lifeline Chaplaincy LC. All employees are paid by LC but an estimate of payroll costs for Compassionate Touch is calculated based on employee time records and management estimates of staff time and roles. Compassionate Touch reimburses a portion of the personnel costs to LC. This reimbursed portion is reflected in Compassionate Touchs Form 990 as salaries and wages. However because ultimately LC is the underlying employer LC supplies the W-2 forms to these employees. The number of employees shown on an organizations 990 is based on the number of filed W-2 forms so this is why Compassionate Touchs 990 reflects 0 employees yet there are amounts reported for salaries and wages. The relationship between Compassionate Touch and LC is disclosed in Schedule R.”