Financial Report for first Seven Months of FY 2019
DignityUSA Financial Report
Seven Months Ended April 30, 2019
This is the first in a series of reports to inform the membership periodically regarding the financial results and position of the organization. This report covers the first seven months of the current fiscal year which ends on September 30. The Board of Directors authorized the adoption of fund accounting for FY 2019 to increase overall financial accountability and transparency, thus the results are reflected among four funds: Operating, Jubilee Initiatives, National Conference (NC) and the Joint Forum with the Global Network of Rainbow Catholics (GNRC) being held adjacent to the NC.
The organization posted overall net income for the period of $135,500, however the Operating Fund incurred a net operating loss of $(5,850). All other funds had net income, as related expenses were expected to be incurred later in the year (NC and GNRC) or in future years (Jubilee) based on initiatives gained during the National Conference and the 2020-2023 strategic plan.
For the full year the forecast calls for overall net income of $67,000, including a significant loss in the Operating Fund of $(58,000). This result varies from the original budget of a minor shortfall for the Operating Fund of $(1,600). This revised outlook is attributed to a significant shortfall in grant income $(140,000) as grants we anticipated from the Arcus Foundation and new targeted foundations and corporations have not materialized. We are learning that the funding universe is quite dynamic and changeable in terms of its interest areas, and our niche continues to shrink due to a number of factors not wholly in our control.
This shortfall has been partially offset by a large legacy bequest of $57,000 as well as the adoption of a cost reduction plan resulting in savings of over $32,000. Future implications of this development are being discussed by the Board and will be further presented at the Membership meeting at the NC.
At April 30, 2019 the organization had total working capital of $456,500, which is expected to decline to $398,000 at September 30. Unrestricted funds (excluding Jubilee contributions) were $285,000 but forecast to decline to $248,000 by year-end. This would equate to about nine month’s operating expenses. Working capital assets are invested in certificates of deposit, stocks, bond funds and money market funds.
While we fully expect an Operating Fund deficit this fiscal year, we are still financially healthy and recognize that reserves serve the purpose of covering short-term or unanticipated deficits. Our challenge going forward is to re-engage Arcus, who has invited us to do so later this year, and to continue to identify new funding sources for fiscal year 2020 and beyond. We are also encouraged by the response to our Jubilee 50 and Forward campaign, and interest we are getting from communities of religious women who greatly support our mission and work.
The ongoing sustainability of our mission and work belongs to all of us. The Board of Directors is committed to open, thoughtful and responsible stewardship of our resources, and would be grateful for any donations to reduce the expected Operating Fund deficit for the year!