Third Quarter 2020 Financial Report
Third Quarter Financial Results
For the first three quarters of the fiscal year (October 1, 2019-June 30, 2020) the DignityUSA (DUSA) Operating Fund reported a net operating loss of $14,765 compared to a budgeted loss of $33,853. This somewhat better financial result from budget is attributed to lower expenses than planned at this point. Total income, excluding chapter “flow-through” monies and “gifts in kind”, in fact was about $6,300 or 3.6% under budget due to shortfalls in the Guardian Angels Gift Plan (almost $6,000), Special Events ($3,750) and Unrestricted Contributions ($3,300). Conversely, income results benefitted from a $10,000 restricted contribution from the Dignity/Denver chapter in the memory of Alana Chen for the benefit of work to combat the negative impact of conversion therapy on LGBTQI persons and their families. The Advent Appeal from last December also produced a sum of $23,667 versus a budget of $20,000.
Total expenses, excluding “flow-through” monies and “non-cash gifts”, were about $24,400 or 11.75% under budget. The delay in hiring the Digital Marketing Specialist (while the Board awaited the report and recommendations from our consultant) and lower travel expenses related to the COVID-19 pandemic accounted for the majority of the positive variance.
During this period $13,000 was spent on Jubilee Initiatives from the monies raised during our Jubilee campaign in 2019. These included amounts for our Digital Engagement Strategy ($8,600) and the Rebranding Initiative ($4,500).
As previously reported, we received a $20,000 donation to support DUSA’s elected and informal leadership recruitment, preparation and support, as well as for support of DUSA’s continued leadership among other justice-oriented groups nationally and internationally. This donation is being treated as a restricted fund and no monies have yet been incurred from this fund.
Based on the above fund results, the overall net operating loss for the period was about $7,700.
The net income results, however, include an unrealized loss of $14,982 from our portfolio of investments. This occurrence has been driven primarily from the financial market shocks precipitated most recently by the COVID-19’s “forced recession”. Strong market performance subsequent to June 30 has reduced this unrealized depreciation to about $9,000.
Total equity at June 30, 2020 totaled $387,000, of which about $187,000 was unrestricted , equivalent to approximately 8 months’ operating expenses (excluding “pass-through” and “non-cash” expenses) based on the current year’s budget. This position is reasonably healthy. Restricted funds amounted to $200,000, of which the Jubilee Initiatives Fund was the largest component at $120,000. Other restricted funds include a portion of bequests, the recent Leadership Fund mentioned above, the Pax Nidorf and Eileen DeLong funds, and the Dignity/Denver donation also described above.
Due to some recent developments, it is now expected that the Operating Fund will end the fiscal year with close to a breakeven net operating result. Specifically, we have recently been informed of two additional unbudgeted bequests totaling $29,000 and a grant from the Carpenter Foundation, also for leadership training initiatives and general operating expenses, in the amount of $20,000. Conversely, it is expected that we will be required to forfeit our deposit of $15,000 for the Westin Hotel in San Diego as liquidated damages for cancelling our National Conference planned for 2021.
As with our chapters and members, this has been a very challenging fiscal year. We have experienced some positive developments such as the Carpenter grant, unbudgeted bequests (which are always acknowledged with a sense of sadness over the loss of long-time dedicated members), the Leadership Fund donation and the Dignity/Denver donation to confront the evils of conversion therapy. On the negative side, the COVID-19 pandemic has reduced some of our ongoing income and the unfortunate decision to cancel our in-person National Conference in 2021 in the best interest of our members has been accompanied by a financial cost to the organization. We have roughly sketched out our fiscal year 2021 budget and it points to another projected net operating loss for the Operating Fund of over $50,000. Losses of this magnitude are not sustainable for an organization of our size and we have been developing plans for a fund raising campaign to stabilize our financial position for the near future. DUSA continues to occupy a key position in countering the directives and actions of Catholic dioceses across the country which have continued to discriminate against the LGBTQI Catholic community. We have also been very active in responding to potential legislative actions put forth by the current administration that also may result in de facto discriminatory behavior against the LGBTQI community. Your continued support of our organization is never more important than now and we appreciate your faithful and generous contributions to our movement.
August 11, 2020