Third Quarter Financial Report
Financial Report for the Nine Months Ended June 30, 2021
Financial Results v. Budget
For the nine months ended June 30, 2021 the DignityUSA (DUSA) Operating Fund reported a net operating loss (excluding the Leadership Stabilization Fund - LSF) of $6,577 versus a budgeted loss of $44,381. Total income (excluding the LSF) of $206,006 was $18,153 over budget. The 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), Investment Income ($2,683) and Grant income ($2,000).
Total expenses of $212,582 were $19,651 under budget. This result reflected slightly lower compensation costs for staff and contractors ($4,366). Spending on the Leadership Academy has not begun as the start of the program was delayed due to the COVID pandemic and has been re-scheduled for FY 2022 (savings of $7,938). Caucus and Committee initiatives have also been deferred for a similar reason ($6,111 unspent). Finally travel costs for staff and the Board of Directors have not been incurred as the May 2021 Board meeting was conducted virtually and other staff travel has not occurred because of COVID restrictions (savings of $6,700).
Offsetting the net operating loss of $6,577 were unrealized gains of $29,700 from DUSA’s equity/bond portfolio due to the strong rebound in the securities markets which began in the fourth quarter of calendar 2020 as the economy began its recovery from the COVID-related shutdowns.
During the nine-month period spending on Jubilee Initiatives totaled $8,645, which was in-line with the budget. These costs relate to the Digital Engagement Strategy and Website Resource Development.
Apart from the Operating Fund budget, DUSA recorded collections of $114,705 against pledges to the Leadership Stabilization Fund (LSF). This amount has been included in total net operating income but was not part of the original budget.
Total equity at June 30, 2021 stands at $537,360. Of this sum $195,767 is unrestricted, $114,705 represents the LSF collections, and $30,000 represents funds received to specifically support the Leadership Academy (deferred to FY 2022) and the Anti-Conversion Therapy project (which will be completed before the close of FY 2021). Restricted equity totals $196,887. The largest components are the Jubilee Initiatives ($110,945), Bequests ($39,513) and the Leadership Fund ($20,327).
Cash and Investments total $538,299. This amount was held as follows:
- Operating cash - $120,988
- Equity/bond portfolio - $266,805 (Note that the Board in July authorized the investment of an additional sum of $100,000 into this account)
- Broker Insured Bank Deposit Program - $150,507
It is appropriate to note that the dividend/interest yield on the equity/bond portfolio is currently 4.5% (versus a goal of 3%) and the overall time-weighted annual return on the portfolio since inception in October 2017 is 7.02% (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 $371,100 or over 74% of our goal. We have received collections toward these pledges amounting to $114,705 to date. Of the pledge total $213,000 has been committed from chapters and $158,100 from member/donors.
Later this year we will reach out to remaining chapters and members to consider joining in this campaign to the extent financially feasible to bring us closer to the initial goal.
Our auditors have completed their review for FY 2020 and have issued their report. In addition, our Federal Form 990 has been filed with the IRS. The latter should soon be available on sites such as Charity Navigator. This source has also given DUSA a 100 Encompass Rating through FY 2019.
July 24, 2021