Fiscal Year 2018 Audited Financial Statements
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350.ORG FINANCIAL STATEMENTS SEPTEMBER 30, 2018 350.ORG TABLE OF CONTENTS SEPTEMBER 30, 2018 Pages Independent Auditors’ Report ................................................................................................ 3-4 Financial Statements Statement of Financial Position ......................................................................................... 5 Statement of Activities ...................................................................................................... 6 Statement of Cash Flows ................................................................................................... 7 Notes to Financial Statements ............................................................................................ 8-13 7910 WOODMONT AVENUE 1150 18TH STREET, NW SUITE 500 SUITE 550 BETHESDA, MD 20814 WASHINGTON, DC 20036 (T) 301.986.0600 (T) 202.822.0717 Independent Auditors’ Report Board of Directors 350.Org Washington, D.C. We have audited the accompanying financial statements of 350.Org (the Organization) (a nonprofit organization), which comprise the statement of financial position as of September 30, 2018, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of 350.Org as of September 30, 2018, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. COUNCILOR, BUCHANAN & MITCHELL, P.C. – CPAs AND BUSINESS ADVISORS www.cbmcpa.com | (F) 301.986.0432 Board of Directors 350.Org Report on Summarized Comparative Information We have previously audited the Organization’s September 30, 2017, financial statements, and we expressed an unmodified audit opinion on those financial statements in our report dated March 13, 2018. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2017, is consistent, in all material respects, with the audited financial statements from which it has been derived. Washington, D.C. Certified Public Accountants December 3, 2019 - 4 - 350.ORG STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2018 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2017) 2018 2017 Assets Current Assets Cash and Cash Equivalents $ 11,836,712 $ 11,026,169 Grants and Contributions Receivable 1,862,079 742,666 Receivable from Employee 58,660 - Due from 350.Org Action Fund 247,238 56,677 Prepaid Expenses and Other Current Assets 398,413 149,545 Total Current Assets 14,403,102 11,975,057 Grants and Contributions Receivable, Net of Current Portion 1,202,185 246,378 Investments 67,133 62,707 Deposits 368,125 32,506 Property and Equipment, Net 107,692 70,913 Total Assets $ 16,148,237 $ 12,387,561 Liabilities and Net Assets Current Liabilities Accounts Payable and Accrued Expenses $ 931,539 $ 575,495 Accrued Vacation 501,501 222,429 Grants Payable 803,272 340,000 Total Current Liabilities 2,236,312 1,137,924 Net Assets Unrestricted 10,357,530 10,240,799 Temporarily Restricted 3,554,395 1,008,838 Total Net Assets 13,911,925 11,249,637 Total Liabilities and Net Assets $ 16,148,237 $ 12,387,561 See accompanying Notes to Financial Statements. - 5 - 350.ORG STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2018 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 2017) Temporarily 2018 2017 Unrestricted Restricted Total Total Revenue Grants and Contributions $ 14,308,453 $ 4,719,704 $ 19,028,157 $ 16,784,979 Donated Services 600 - 600 30,521 Investment Income 23,342 - 23,342 5,364 Other Income 39,777 - 39,777 20,387 Releases from Restriction 2,174,147 (2,174,147) - - Total Revenue 16,546,319 2,545,557 19,091,876 16,841,251 Expenses Program Services Field 10,534,512 - 10,534,512 8,665,999 Communications 1,417,717 - 1,417,717 788,925 Digital 1,265,988 - 1,265,988 1,007,423 Total Program Services 13,218,217 - 13,218,217 10,462,347 Supporting Services Management and General 2,548,536 - 2,548,536 1,955,557 Fundraising 662,835 - 662,835 490,882 Total Supporting Services 3,211,371 - 3,211,371 2,446,439 Total Expenses 16,429,588 - 16,429,588 12,908,786 Change in Net Assets 116,731 2,545,557 2,662,288 3,932,465 Net Assets, Beginning of Year 10,240,799 1,008,838 11,249,637 7,317,172 Net Assets, End of Year $ 10,357,530 $ 3,554,395 $ 13,911,925 $ 11,249,637 See accompanying Notes to Financial Statements. - 6 - 350.ORG STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2018 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 2017) 2018 2017 Cash Flows from Operating Activities Change in Net Assets $ 2,662,288 $ 3,932,465 Adjustments to Reconcile Change in Net Assets to to Net Cash Provided by Operating Activities Depreciation and Amortization 47,943 38,431 Donated Securities Received (397,141) (684,711) Proceeds from Sales of Donated Securities 392,715 691,790 (Increase) Decrease in Grants and Contributions Receivable (2,075,220) 385,263 Increase in Receivable from Employee (58,660) - (Increase) in Prepaid Expenses and Other Current Assets (248,868) (125,174) Increase in Deposits (335,619) (5,683) Increase in Accounts Payable and Accrued Expenses 356,044 101,992 (Increase) Decrease in Due from 350.Org Action Fund (190,561) 81,190 Increase (Decrease) in Accrued Vacation 279,072 (21,199) Increase in Grants Payable 463,272 340,000 Net Cash Provided by Operating Activities 895,265 4,734,364 Cash Flows from Investing Activities Purchases of Property and Equipment (84,722) (54,285) Net Cash Used in Investing Activities (84,722) (54,285) Net Increase in Cash and Cash Equivalents 810,543 4,680,079 Cash and Cash Equivalents, Beginning of Year 11,026,169 6,346,090 Cash and Cash Equivalents, End of Year $ 11,836,712 $ 11,026,169 See accompanying Notes to Financial Statements. - 7 - 350.ORG NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 350.Org (the Organization) is a dynamic and highly collaborative climate change campaign, building a global grassroots movement to solve the climate crisis. The Organization works with volunteers in countries around the world, using online tools to facilitate strategic campaigns, grassroots organizing, and public engagement actions in order to communicate both the realities of science and principles of justice and help realize the solutions that will ensure a better future for all. The Organization is supported primarily by grants and contributions. The major programs of the Organization are as follows: Field: The Field program works to bring international and national policy more in line with the scientific necessities of tackling the climate crisis. This work is accomplished by building broad and deep connections to support an international network of climate activists, as well as identifying key moments to elevate an issue and advocate for social change. Communications: The Communications program works to shape the terms of debate on climate change internationally and domestically through a creative and incisive narrative, and a sophisticated media strategy encompassing both traditional and new media. Digital: The Digital program works to facilitate dialogue and organizing amongst individuals, organizers, and organizations in the global climate movement around the world. This work is accomplished through online media such as emails, blogs, and social networks, multimedia such as photo galleries and videos, and