<p class=rteindent1><span style=font-size:16px;><u>DignityUSA Financial Report</u></span></p> <p class=rteindent1><span style=font-size:16px;><u>Seven Months Ended April 30 2019</u></span></p> <p class=rteindent1><span style=font-size:16px;>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.</span></p> <p class=rteindent1><span style=font-size:16px;>The organization posted overall net income for the period of $135500 however the Operating Fund incurred a net operating loss of $(5850). 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.</span></p> <p class=rteindent1><span style=font-size:16px;>For the full year the forecast calls for overall net income of $67000 including a significant loss in the Operating Fund of $(58000). This result varies from the original budget of a minor shortfall for the Operating Fund of $(1600). This revised outlook is attributed to a significant shortfall in grant income $(140000) 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.</span></p> <p class=rteindent1><span style=font-size:16px;>This shortfall has been partially offset by a large legacy bequest of $57000 as well as the adoption of a cost reduction plan resulting in savings of over $32000. Future implications of this development are being discussed by the Board and will be further presented at the Membership meeting at the NC.</span></p> <p class=rteindent1><span style=font-size:16px;>At April 30 </span><span style=font-size:16px;>2019</span><span style=font-size:16px;> the organization had total working capital of $456500 which is expected to decline to $398000 </span><span style=font-size:16px;>at</span><span style=font-size:16px;> September 30. Unrestricted funds (excluding Jubilee contributions) were $285000 but forecast to decline to $248000 by year-end. This would equate to about nine months operating expenses. Working capital assets are invested in certificates of deposit stocks bond funds </span><span style=font-size:16px;>and</span><span style=font-size:16px;> money market funds.</span></p> <p class=rteindent1><span style=font-size:16px;>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.</span></p> <p class=rteindent1><span style=font-size:16px;>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!</span></p>