Mid-Year Financial Report, FY 2021
Financial Report for the Six Months Ended March 31, 2021
Financial Results v. Budget
For the six months ended March 31, 2021 the DignityUSA (DUSA) Operating Fund reported a net operating income (excluding the Leadership Stabilization Fund) of $2,645 versus a budgeted loss of $18,961. Total income of $147,691 was $17,456 over budget. This positive variance is primarily attributed to higher bequest income than budgeted ($20,000 versus $10,000), in addition to smaller favorable variances for the Advent Appeal ($2,754) and Grant Income ($2,000).
Total expenses of $145,046 were $4,150 under budget. This result reflected slightly lower compensation costs for staff and contractors ($3,587). Spending on the Leadership Academy has not begun as the start of the program was delayed due to the continuing impact of the COVID pandemic. Caucus and Committee initiatives have also been deferred for a similar reason.
In addition to the net operating income of $2,645 DUSA had unrealized gains of $25,796 on its equity/bond portfolio due to the strong rebound in the markets which began in the fourth quarter of calendar 2020.
During this six-month time period spending on Jubilee Initiatives totaled $4,989 versus budgeted costs of $6,150. These costs relate to the Digital Engagement Strategy and Website Resource Development.
Apart from the Operating Fund budget, DUSA recorded collections of $67,600 against pledges to the Leadership Stabilization Fund (LSF). This income will be included in the net operating income for the year but was not part of the original budget.
Total equity at March 31, 2021 stands at $498,078. Of this sum $201,545 is unrestricted, $67,600 represents the LSF collections, and $30,000 represents funds received to specifically support the Leadership Academy and the Anti-Conversion Therapy project. Restricted equity totals $198,933. The largest components are the Jubilee Initiatives ($114,141), Bequests ($39,513) and the Leadership Fund ($20,327).
Total Working capital amounts to $493,950. This amount was held as follows:
- Operating cash - $108,702
- Equity/bond portfolio - $237,930 (Note that the Board authorized the investment of an additional sum of $100,000 into this account in January 2021)
- Broker Insured Bank Deposit Program - $150,279
It is important to note that the dividend/interest yield on the equity/bond portfolio is currently 4.61% (versus a goal of 3%) and the overall time-weighted annual return on the portfolio since inception in October 2017 is 6.69% (versus a goal of 5%).
Leadership Stabilization Fund
The organization launched a multi-year fund raising campaign in October 2020 to support the funding of the Executive Director position over the next four years due to the loss of Arcus Foundation grant funding and recurrent Operating Fund losses as a result thereof. The goal is to raise $500,000 from chapters and members to bridge the gap in income until it can be replaced by a combination of broader donor support, new grant sources, planned giving and other income.
We are very pleased to report that DUSA has received pledges to date of $332,100 or approximately two-thirds of our goal. As mentioned above we have received collections toward these pledges amounting to $67,600 to date. These generous pledges have come from seven (7) chapters and twenty (20) member donors. Leading the responses has been Dignity/San Francisco ($100,000) followed by Dignity Washington ($40,000). Commitments have also been made by chapters in Dayton, Los Angeles, Boston, Denver and Chicago, each community making a significant pledge according to their financial situation. Several other chapters are in the process of considering their participation. In total these chapters have pledged $180,000.
Member donors have pledged between $500 and $25,000 each over the four-year period, with the majority in the range of $1,000 - $5,000. Total member commitments amount to $152,100.
We are asking all chapters and members to consider joining in this campaign to the extent financially feasible. We fully recognize that the pandemic has, in many cases, had serious financial consequences to certain chapters and members and understand if it makes it difficult to make a commitment at this time. Look for details on how to make a gift or pledge in an upcoming issue of Dateline.