Community Services Report 2013-2014 YEAR IN REVIEW MUSICARES’ IMPACT EVENTS & FUNDRAISING INITIATIVES ™ FINANCES MUSICARES SUPPORTERS CONNECT AND CONTACT YEAR IN REVIEW ™ Over the last 25 years, MusiCares has continuously provided a wide range of services to the music community — from emergency financial assistance to addiction recovery resources — and the need for these programs has steadily grown. This Community Services Report is a look back at our 2014 Fiscal Year (Aug. 1 – July 31), a reflection on our achievements and an opportunity to thank our generous donors. Join us as we review our year, by the numbers … YEAR IN REVIEW ™ MORE THAN 7,922 3,743 11,000 Music people were Music people were served by MusiCares served through Clients received emergency Healthy Essentials programs. through a combination of financial assistance, financial assistance healthy essentials programs and addiction recovery aid. $3,658,265 The total amount of emergency financial assistance given to MusiCares clients in need in FY ‘14, which is the largest amount distributed in MusiCares’ 25-year history. 125 350 28% MusiCares of MusiCares’ total financial assistance Healthy Essentials programs Addiction support group meetings held throughout the country, including dental, serving more than 2,100 music people grants were put toward addiction medical and hearing clinics, and were held in cities around . recovery services health insurance workshops. the United States. $1,016,150 In addiction recovery resources were distributed on behalf of more than 231 clients. MUSICARES’ IMPACT “Words cannot ™ express the depth of my gratitude for your organization and the staff there that helped “Tonight, it’s not me through my recent really about me. It is, but it’s medical challenges. I will about MusiCares and it’s about always be thankful for the community of people we are. your kindness.” It’s about a community of people “How do you who care and I want to thank adequately thank an you all so, so much.” organization for giving you — Carole King, 2014 back your life? I don’t think MusiCares Person words can accurately convey of the Year my gratitude. MusiCares did for me what I couldn’t do for myself.” “Had my knee “We’re all here, surgery today and every person in this room, everything went smoothly. is here because we love I can’t even begin to thank music. Music is the center everyone at MusiCares for core of all of our lives. what you’ve all done for me. This is where we take care It’s truly amazing! of the people who Anything I can ever do make the music.” for you please — Jeff Greenberg, just ask!” Village Studios CEO EVENTS & FUNDRAISING INITIATIVES ™ MUSICARES PERSON OF THE YEAR MusiCares paid tribute to Carole King as the 24th MusiCares Person of the Year at a stellar evening on Jan 24, 2014, in Los Angeles. A live auction featuring a one-of-a-kind book of lyrics from the 1971 GRAMMY-winning album, Tapestry, all handwritten by King, kicked off the evening before the star- studded tribute concert. Hosted by Jimmy Kimmel, the concert featured performances by Zac Brown, Stuart Duncan, Jakob Dylan, Amy Grant, Alicia Keys, Lady Gaga, Jason VANS WARPED TOUR SAFE HARBOR ROOMS Mraz, Jennifer Nettles, For the fifth consecutive year, MusiCares provided Pink, LeAnn Rimes, general outreach and services to the Vans Warped Tom Scott, James Tour artists and crew during summer 2014. As in Taylor, Steven Tyler, past years, MusiCares Board Member and Vans will.i.am, Gloria Estefan, Warped Tour founder Kevin Lyman generously Jesse & Joy, Miranda provided financial support to MusiCares via ticket Lambert, Miguel, Train, Merry sales and booth/will call donations from each tour Clayton, Lisa Fischer, Judith Hill, date. To date, these efforts have resulted in raising Darlene Love, Mindi Abair, Sara Bareilles, a grand total of more than $900,000 for MusiCares Kacey Musgraves, Louise Goffin, Martina programs and services. Representatives who go McBride, Leah McFall, Raining Jane, and on the road with the Warped Tour do everything Trombone Shorty, among others. The from hosting a MusiCares booth during the day to evening generated $6.5 million in support running several of our Safe Harbor Room 12-step of MusiCares’ vital health and human meetings in the evening. services programs. EVENTS & FUNDRAISING INITIATIVES ™ MUSICARES MAP FUND GRAMMY CHARITY The 10th annual MusiCares MAP Fund benefit concert ONLINE AUCTIONS was held May 30, 2014, in Los Angeles and honored Throughout the year, MusiCares Ozzy Osbourne, singer/songwriter benefits from our GRAMMY and frontman for two-time Charity Online Auctions, GRAMMY-winning band which feature exclusive VIP Black Sabbath, and Jeff experiences and memorabilia. Greenberg, owner/ Highlights included the CEO of the Village launch of the first-ever studios. The annual Country Christmas auction, event was hosted in partnership with the CMA by actor/comedian Foundation (which went live Dax Shepard the day of the CMA Awards), and featured featuring memorabilia and performances by experiences from some of country Beth Hart with music’s brightest stars and living legends! Chad Smith, Keb’ MusiCares also brought one-of-a-kind Mo’, Metallica, and experiences such as a unique Grand Osbourne featuring Ole Opry experience with Carrie Billy Morrison, Dave Underwood and a meet-and- Navarro and Slash. greet with Paul McCartney! Our Mix Master Mike was the auctions also featured exclusive evening’s DJ during the dinner. music memorabilia signed Out of respect for our MusiCares by artists including Beyoncé, MAP Fund clients, the event was alcohol-free. More Daft Punk, Lady Gaga, Hunter than $300,000 was raised for MusiCares’ addiction Hayes, Bruno Mars, Blake recovery services. Shelton, Taylor Swift, Pharrell Williams, and many more! EVENTS & FUNDRAISING INITIATIVES ™ TEEN SUBSTANCE ABUSE AWARENESS THROUGH MUSIC CONTEST The GRAMMY Foundation, MusiCares and the Partnership at Drugfree.org invited the winners of the fourth annual Teens Make Music Contest to Los Angeles to attend a special backstage tour while artists rehearsed for the 56th Annual GRAMMY Awards, among other events and prizes. This year’s first, second, and third place winners hail from Massachusetts, California and Arkansas, respectively. FINANCIALS ™ ASSETS 2014 2013 FUNCTIONAL EXPENSES 2014 CURRENT ASSETS: Cash and Cash Equivalents $3,999,289 $2,924,167 Cash and Cash Equivalents – 20th Campaign $500,021 $2,875,604 Receivables from Affiliates 289,572 373,082 20th Campaign Pledges Receivable 461,684 569,984 Accounts Receivable 297,863 410,539 Board Designated Investments 14,711,579 10,625,725 Prepaids and Deposits 39,452 21,389 Merchandise and Barter 16,800 64,540 ____________ ____________ TOTAL CURRENT ASSETS $20,316,260 $17, 865,029 ____________ ____________ STATEMENT NON CURRENT ASSETS: OF ACTIVITIES Restricted Cash 2013 & 2014 20th Campaign Pledges Receivable, Net ____________ 349,634 ____________588,687 DEFERRED COMPENSATION ASSET ____________ 76,404 ____________ 59,324 TOTAL NONCURRENT ASSETS ____________ 426,038 ____________ 648,011 TOTAL ASSETS $20,742,298____________ ____________$18,513,040 LIABILITIES AND NET ASSETS FUNCTIONAL EXPENSES 2013 CURRENT LIABILITIES: Accounts Payables and Accrued Liabilities $436,395 $365,904 Deferred Revenue 86, 276 7,70 0 ____________ ____________ TOTAL CURRENT LIABILITIES ____________ 531,331 ____________ 373,604 DEFERRED COMPENSATION LIABILITY ____________ 76,404 ____________ 59,324 TOTAL LIABILITIES ____________ 607,735 ____________ 432,928 NET ASSETS: Unrestricted net assets: General 10,039,159 8,377,160 20th Campaign 9,284,086 8,544,281 ____________ ____________ TOTAL UNRESTRICTED NET ASSETS 19,323,245 16,921,441 Temporarily Restricted Purpose restricted 20th Campaign ____________811,318 ____________1,158,671 TOTAL TEMPORARILY RESTRICTED NET ASSETS ____________811,318 ____________1,158,671 TOTAL NET ASSETS ____________ 20,134,563 ____________ 18,080,112 TOTAL LIABILITIES AND NET ASSETS $20,742,298____________ ____________$18,513,040 FINANCIALS ™ REVENUES REVENUES 2014 2014 2013 Contributions/Sponsorships $6,073,596 $6,208,797 Support from The Recording Academy 2,341,879 2,084,539 Board Designated Campaign Fund 410,663 841,899 Grants 91,500 113,750 Project Income 2,083,226 1,971,790 STATEMENT Investment Income 1,029,854 637,592 Hurricane Relief / Flood 4,562 29,397 OF ACTIVITIES In Kind Donations 4,546,855 2,140,344 2013 & 2014 TOTAL REVENUE $16,582,135 $14,028,108 ____________ ____________ EXPENSES Program Services – Direct Client Assistance 3,699,079 3,397,806 Hurricane Relief / Music Rising/Flood 48,103 177,603 Program Services – Other 2,034,450 1,941,910 Management and General 659,957 627,215 REVENUES 2013 20th Campaign 18,211 117,222 Fundraising and Special Events 3,521,029 3,405,333 In Kind Expenses 4,546,855 2,140,344 ____________ ____________ TOTAL EXPENSES ____________14,527,684 ____________11,807,433 NET INCOME (LOSS) $2,054,451 $2,220,675 ____________ ____________ Financial information is excerpted from MusiCares audited reports. Functional Expenses information is as reported on the IRS 990 filings. SUPPORTERS ™ THE SUPPORT THAT MUSICARES RECEIVES FROM CORPORATIONS, FOUNDATIONS AND INDIVIDUALS IS INVALUABLE AND FUNDAMENTAL TO THE CONTINUED SUCCESS OF OUR MANY PROGRAMS. THE SUPPORT THATTHIS MUSICARES LIST ACKNOWLEDGES RECEIVES FROM AND CORPORATIONS, THANKS THESE FOUNDATIONS SUPPORTERS. AND INDIVIDUALS IS INVALUABLE AND FUNDAMENTAL TO THE CONTINUED SUCCESS OF OUR MANY PROGRAMS. THIS LIST ACKNOWLEDGES AND THANKS THESE SUPPORTERS. $1,000,000 AND ABOVE Creative Visions Foundation Berklee College of Music Cumberland Heights Allen Grubman * The National Academy Eric Church Band Golf Billboard Magazine Curtom Classics Guggenheim Partners of Recording Arts & Tournament Black Entertainment David Foster Foundation * Haber Corporation Sciences, Inc. Greenberg Traurig, LLP Television, Inc. Deloitte & Touche, LLP Daniel Hayes Interpublic Group Ron Bleiweiss Michael D’Errico Herb Alpert Foundation $100,000 TO $999,999 Red Light Management BMI Maureen Diamond Hilton Worldwide AEG Global Partnerships Mr.