BUILDING GOODNESS FOUNDATION CHARLOTTESVILLE, VIRGINIA COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER

Transcription

1 CHARLOTTESVILLE, VIRGINIA COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 ROBINSON, FARMER, COX ASSOCIATES A PROFESSIONAL LIMITED LIABILITY COMPANY CERTIFIED PUBLIC ACCOUNTANTS CHARLOTTESVILLE RICHMOND FREDERICKSBURG STAUNTON BLACKSBURG LOUISA

2 CHARLOTTESVILLE, VIRGINIA COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 Table of Contents Page Independent Auditors Report Financial Statements: Combined Statement of Financial Position... 3 Combined Statement of Activities... 4 Combined Statement of Functional Expenses... 5 Combined Statement of Cash Flows... 6 Notes to the Combined Financial Statements Supplementary Information: Combining Schedule of Financial Position Combining Statement of Activities... 16

3 ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY INDEPENDENT AUDITORS REPORT BOARD OF DIRECTORS BUILDING GOODNESS FOUNDATION CHARLOTTESVILLE, VIRGINIA We have audited the accompanying combined financial statements of Building Goodness Foundation (a nonprofit organization) which comprise the combined statement of financial position, as of December 31, 2017, and the related combined statements of activities, functional expenses, 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 combined 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 combined 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 combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined 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 auditor considers internal control relevant to the entity s preparation and fair presentation of the combined 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 combined 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 combined financial statements referred to above present fairly, in all material respects, the financial position of Building Goodness Foundation as of December 31, 2017, 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. 1

4 Report on Summarized Comparative Information We have previously audited Building Goodness Foundation s 2016 combined financial statements, and we in our report dated August 7, 2017, expressed an unmodified audit opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2016, is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information on pages is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Charlottesville, Virginia August 15,

5 - Financial Statements -

6 Combined Statement of Financial Position At December 31, 2017 (With Comparative Totals for 2016) Assets Current assets: Cash and cash equivalents $ 618,765 $ 392,578 Accounts receivable 55,075 57,641 Unconditional promises to give, current 66,747 54,250 Prepaid expenses 5,562 12,586 Total current assets $ 746,149 $ 517,055 Property and equipment: Land $ 252,181 $ 171,331 Buildings 1,161,887 1,165,966 Office equipment 75,017 67,339 Accumulated depreciation (42,516) (5,288) Net property and equipment $ 1,446,569 $ 1,399,348 Other assets: Beneficial interest in agency fund held by third party $ 40,273 $ 34,485 Unconditional promises to give, noncurrent, net of discounts 43,082 16,500 Total other assets $ 83,355 $ 50,985 Total assets $ 2,276,073 $ 1,967,388 Liabilities and Net Assets Liabilities: Current liabilities: Accounts payable $ 5,798 $ 3,433 Payroll liabilities 5,842 - Deferred trip donations revenue 23,184 9,936 Mortgage payable, current portion 6,547 - Total current liabilities $ 41,371 $ 13,369 Noncurrent liabilities: Mortgage payable, noncurrent portion $ 191,419 $ - Total noncurrent liabilities $ 191,419 $ - Total liabilities $ 232,790 $ 13,369 Net assets: Unrestricted $ 1,192,049 $ 1,236,243 Temporarily restricted 831, ,693 Permanently restricted 20,083 20,083 Total net assets $ 2,043,283 $ 1,954,019 Total liabilities and net assets $ 2,276,073 $ 1,967,388 The accompanying notes to the financial statements are an integral part of this statement. 3

7 Combined Statement of Activities For the Year Ended December 31, 2017 (With Comparative Totals for 2016) Temporarily Permanently Total Unrestricted Restricted Restricted Revenues, gains and other support: Individual contributions $ 396,561 $ 159,903 $ - $ 556,464 $ 468,456 Trip participation donations - 28,948-28,948 29,580 Foundation grants 98,070 1,318,863-1,416, ,716 Corporate/business contributions 83, ,088 80,512 Religious and community contributions 9,444 62,758-72,202 9,361 Gifts in kind 160, , ,009 Project management fees 2, ,500 - Rental income 14, ,100 12,650 Auction ,309 Miscellaneous income 8,549 2,353-10,902 4,193 Investment income 5, ,772 3,696 Net assets released from restrictions 1,439,541 (1,439,541) Total revenues, gains and other support $ 2,218,071 $ 133,458 $ - $ 2,351,529 $ 1,573,482 Expenses: Program services $ 1,932,404 $ - $ - $ 1,932,404 $ 2,104,823 Supporting services: Management and general 162, ,449 75,468 Fundraising 167, , ,501 Total expenses $ 2,262,265 $ - $ - $ 2,262,265 $ 2,325,792 Change in net assets $ (44,194) $ 133,458 $ - $ 89,264 $ (752,310) Net assets at beginning of year 1,236, ,693 20,083 1,954,019 2,706,329 Net assets at end of year $ 1,192,049 $ 831,151 $ 20,083 $ 2,043,283 $ 1,954,019 The accompanying notes to the financial statements are an integral part of this statement. 4

8 Combined Statement of Functional Expenses For the Year Ended December 31, 2017 (With Comparative Totals for 2016) Supporting Services Management and Total Program General Fundraising Salaries and wages $ 344,796 $ 68,959 $ 78,810 $ 492,565 $ 440,048 Payroll taxes 23,885 4,777 5,460 34,122 31,344 Gifts in kind 160, , ,009 Depreciation 3,723 26,059 7,445 37,227 2,162 Discount on pledges Pledge write-off - 12,531-12,531 - Dues and fees 2,396 5,590-7,986 7,258 Equipment purchases and maintenance ,190 Interest expense 314 2, ,137 - Business insurance 17,686 3,317 1,105 22,108 15,788 Meetings and events 5,092-45,823 50,915 43,827 Miscellaneous expenses 2, , Occupancy expenses 9,939 1,242 1,242 12,423 9,796 Office supplies and expenses 3,351 1, ,586 10,391 Postage and shipping 2, ,615 4,614 4,600 Printing, copying and reproduction 9,818 2,182 9,818 21,818 20,346 Seminars and training 2,769 1, ,048 6,781 Professional services 22,435 20,191 2,243 44,869 33,553 Software - - 4,500 4,500 - Volunteer expenses and appreciation 2, ,026 5,462 3,964 Scholarships 45, ,380 38,550 Public education 2, ,415 5,350 Advertising 4, ,758 7,292 5,389 Real estate taxes 1,093 7,652 2,186 10,931 - Repairs and maintenance 161 1, ,606 - Telephone/internet 4, ,228 3,757 Travel 73, ,094 39,363 Direct project expenses 1,186, ,186,907 1,139,198 Total $ 1,932,404 $ 162,449 $ 167,412 $ 2,262,265 $ 2,325,792 The accompanying notes to the financial statements are an integral part of this statement. 5

9 Combined Statement of Cash Flows For the Year Ended December 31, 2017 (With Comparative Totals for 2016) Cash flows from operating activities: Change in net assets $ 89,264 $ (752,310) Adjustments to reconcile change in net assets to net cash provided by (used for) operating activities: Depreciation 37,228 2,162 Change in beneficial interest in agency fund (5,788) (1,067) (Increase) decrease in assets: Accounts receivable 2,566 (33,607) Unconditional promises to give (39,079) 924,632 Prepaid expenses 7,024 4,284 Increase (decrease) in liabilities: Accounts payable 2,365 (19,738) Payroll liabilities 5,842 - Deferred trip donations revenue 13,248 (2,216) Net cash provided by (used for) operating activities $ 112,670 $ 122,140 Cash flows from financing activities: Proceeds from issuance of debt $ 200,000 $ - Principal payments (2,034) - Net cash provided by (used for) financing activities $ 197,966 $ - Cash flows from investing activities: Purchase of property and equipment $ (84,449) $ (618,792) Net cash provided by (used for) investing activities $ (84,449) $ (618,792) Net increase (decrease) in cash and cash equivalents $ 226,187 $ (496,652) Cash and cash equivalents at beginning of year 392, ,230 Cash and cash equivalents at end of year $ 618,765 $ 392,578 Supplemental disclosure of cash flow information: Interest paid during the year $ 3,137 $ - The accompanying notes to the financial statements are an integral part of this statement. 6

10 Notes to the Combined Financial Statements At December 31, 2017 NOTE 1 - NATURE OF ACTIVITIES: Building Goodness Foundation (BGF, the Organization) is a not-for-profit organization powered by skilled volunteers from the construction trades. BGF builds clinics, schools, shelters, and other structures for communities in need. The Organization builds for the local community of Charlottesville, Virginia, for impoverished and disaster-stricken areas such as the Gulf Coast, and developing countries like Haiti and Guatemala. Programs are supported primarily through contributions received from individuals, foundations, businesses, and religious organizations. Description of Program Services: Through international projects, BGF connects U.S.-based construction volunteers with indigenous construction crews to build homes, medical clinics, and schools for non-governmental organizations in underdeveloped countries. Expenses attributable to this program service totaled $1,729,502 in BGF s local projects provide construction renovations to Charlottesville area nonprofit organizations and low-income homeowners. Through local projects, BGF connects construction professionals, who donate their time and expertise, to build projects that benefit the Charlottesville community and low-income neighbors. Expenses attributable to this program service totaled $202,902 in NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: The Organization s books are maintained and the accompanying financial statements are presented on the accrual basis of accounting. Financial Statement Presentation: The net assets of the Organization and changes therein are classified and reported as follows based on the existence or absence of donor-imposed restrictions. Unrestricted net assets - Net assets that are not subject to any donor-imposed stipulations. At December 31, 2017, the Organization had unrestricted net assets of $1,192,049. Temporarily restricted net assets - Net assets subject to donor-imposed restrictions on their use that may be met either by actions of the Organization or the passage of time. At December 31, 2017, the Organization had temporarily restricted net assets of $831,151. Permanently restricted net assets - Net assets subject to donor-imposed or other legal restrictions requiring that the principal be maintained permanently by the Organization. Generally, the donors permit the Organization to use all or part of the income earned for either general or donor-specific purposes. At December 31, 2017, the Organization had permanently restricted net assets of $20,083. 7

11 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Cash and Cash Equivalents: For the purposes of the statement of cash flows, the Organization considers demand deposits, money market funds held in banks, and all short-term investments purchased with an original maturity of three months or less to be cash and cash equivalents. Receivables: Receivables are stated at the amount management expects to collect from outstanding balances. Management s determination of the allowance for uncollectible accounts is based on an evaluation of the accounts receivable, past experience, current economic conditions, and other risks inherent in the accounts receivable portfolio. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Property and Equipment: The Organization follows the practice of capitalizing all expenditures for property and equipment with a cost of more than $2,000, if purchased. Donated property and equipment are capitalized at their fair market value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful lives of the property and equipment, which generally approximates five years for equipment and 39 years for property. Depreciation expense for the year ended December 31, 2017 was $37,227. Contributions and Grants: Contributions are recognized as revenues in the period received. Conditional contributions are recorded when the conditions have been met. Contributions are considered to be unrestricted unless specifically restricted by the donor. BGF reports contributions in the temporarily or permanently restricted net asset class if they are received with donor or grant stipulations as to their use. When a restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are released to unrestricted net assets in the statement of activities. Income Taxes: Building Goodness Foundation is a not-for-profit organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, and has been classified as an organization that is not a private foundation under Section 509(a)(3) of the Internal Revenue Code. Contributions to Building Goodness Foundation qualify as tax deductible charitable contributions to the extent provided by Section 170 of the Internal Revenue Code. 8

12 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Functional Allocation of Expenses: The costs of providing the various programs and supporting activities have been summarized on a functional basis in the combined statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Unconditional Promises to Give: Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Deferred Trip Donations Revenue: Deferred trip donations revenue is comprised of donations from volunteers that were received in the current year but relate to trips volunteers will participate in during Comparative Totals: Comparative totals are presented for informational purposes only. Certain prior year amounts have been reclassified to the current year presentation. Principles of Combined Financial Statements: The combined financial statements include Building Goodness Foundation, Building Goodness in April, and BGF Carlton, LLC. Relationships of these entities are described later in note 12. All significant intercompany transactions are eliminated for the combined financial statements. NOTE 3 - FUNDRAISING EXPENSE: Fundraising expense for fiscal year ending December 31, 2017 was $167,412. 9

13 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 4 - TEMPORARILY RESTRICTED NET ASSETS: Net assets were released from grantor restrictions by incurring expenditures satisfying the following restricted purposes: IK Scholarship $ 3,202 Other Restricted Funds - Haiti 22,556 Incentive Kay 7,330 Build Health 5,000 EIM 10,080 FDN Scholarship 2,000 Local Projects 21,735 Project Support 482,138 BGF Expansion 24,762 COHH School 163,594 COHH Scholarship 11,050 Ti Kay ,516 Hormiguero 64,814 Hormiguero Scholarship 16,044 Ti Kay Scholarship 1,300 Building Goodness in April 64,582 BGF Carlton, LLC 838 Total $ 1,439,541 At December 31, 2017, temporarily restricted net assets are available for the following purposes: BGF Expansion $ 55,926 BHI Scholarship 3,000 COHH Scholarship 3,050 EIM 12,750 Evergreen 20,133 Hormiguero 18,040 Hormiguero Scholarship 8,956 HP Scholarship 7,926 IK ,459 IK Scholarship 9,998 Local Projects 63,410 Puerto Rico 5,800 Stoner Scholarship Funds 70 Ti Kay ,582 Ti Kay 8 12,750 Ti Kay Scholarship 4,892 UVA GI Scholarship 2,100 Building Goodness in April 105,760 BGF Carlton, LLC 315,549 Total temporarily restricted net assets $ 831,151 10

14 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 5 - PERMANENTLY RESTRICTED NET ASSETS: In January 2004, the Building Goodness Foundation received a donation of $20,083 for the purpose of establishing a scholarship fund. The income from this contribution is to be used to provide scholarships to BGF skilled craftspeople and participants who might not otherwise be able to participate in BGF international work trips. If the Board of Directors of the Building Goodness Foundation determines that any portion of the earned income is not spent for scholarships within a reasonable amount of time after a fiscal year, the Board may add the income to the principal of the scholarship fund or continue to hold it for future scholarships. At December 31, 2017, the scholarship fund balance was $20,083. NOTE 6 - CONCENTRATION OF CREDIT RISK: All cash in banks are in federally insured accounts. FDIC coverage extends to $250,000 per entity. At December 31, 2017, the Organization had no uninsured bank balances. NOTE 7 - INVESTMENT INCOME: Included in investment income for the year ended December 31, 2017 are: Interest and dividends $ 5,296 Gain (loss) on beneficial interest in agency fund 476 Total investment income $ 5,772 NOTE 8 - BENEFICIAL INTEREST IN AGENCY FUND HELD BY THIRD PARTY: The Organization is the beneficiary under a Designated Agency Fund Agreement with the Charlottesville Area Community Foundation. The agency fund has been recorded in accordance with generally accepted accounting principles which state that if a community foundation receives assets from a nonprofit organization that specifies itself as the beneficiary, the transfer is not a contribution received by the community foundation even if the variance power is explicitly stated in the gift instrument. The assets of the fund are included in the Statement of Financial Position as a beneficial interest in agency fund held by third party. Distributions are to be paid as the two organizations agree upon. In addition, the fund is charged a quarterly administrative fee on the fund balance. The changes in the agency fund are as follows for the year ended December 31, 2017: Beneficial interest - Beginning of year $ 34,485 Change in value of beneficial interest: Investment returns 6,162 Administrative fees (374) Beneficial interest - End of year $ 40,273 11

15 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 9 - INVESTMENTS FAIR VALUE MEASUREMENTS: Fair value for investments is determined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The three-level fair value hierarchy prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: -- Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. -- Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. -- Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Building Goodness Foundation is providing the following information related to its investments: Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs December 31, 2017 (Level 3) Beneficial Interest in Community Foundation $ 40,273 $ 40,273 Total $ 40,273 $ 40,273 12

16 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 9 - INVESTMENTS FAIR VALUE MEASUREMENTS: (continued) The Level 3 assets represent the beneficial interest in the Charlottesville Area Community Foundation s (CACF) investment pool. The valuation of this investment is based upon the inputs used by CACF to value the underlying assets. The following table provides further details of the Level 3 fair value measurements. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Beneficial Interest in Community Foundation Beginning balance $ 34,485 Total gains or (losses) (realized/unrealized) Included in changes in net assets 5,788 Ending balance $ 40,273 Total amount of gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets still held at reporting date $ 4,502 NOTE 10 - DONATED MATERIALS AND SERVICES: Contributions of donated noncash assets are recorded at their fair market values in the period received. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, which are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation, are recorded at their fair values in the year received. Donated materials of $620 and services of $160,000 for a total of $160,620 were received during the year. Donated services consisted of architectural and engineering services, and project management. NOTE 11 - UNCONDITIONAL PROMISES TO GIVE: Unconditional promises to give at December 31, 2017 are as follows: Receivable in less than one year $ 66,747 Receivable in one to five years 43,912 Total unconditional promises to give $ 110,659 Less unamortized discounts (830) Net unconditional promises to give at December 31, 2017 $ 109,829 13

17 Notes to the Combined Financial Statements At December 31, 2017 (continued) NOTE 11 - UNCONDITIONAL PROMISES TO GIVE: (continued) Long-term promises to give are recorded at fair value, estimated using present value techniques and a discount rate of 1.89% in The discount rate utilized is the Constant Maturity Treasury rate, or CMT, of a 2 years fixed maturity bond at December 29, NOTE 12 - RELATED PARTIES: Building Goodness in April operates in cooperation with University of Virginia Darden School students to rehabilitate homes in the Charlottesville, Virginia community. Building Goodness in April maintains its own accounting records and reports activity to Building Goodness Foundation throughout the year. Current year activity of Building Goodness in April is included in the financial statements and breakout of Building Goodness in April separately can be found in the supplementary information. BGF Carlton, LLC. is a disregarded entity for Building Goodness Foundation that was incorporated on June 3, This entity has been established to assist with the construction development, and future management of the Carlton Avenue land as a future home of operations for Building Goodness Foundation. Current year activity of BGF Carlton, LLC. is included in the financial statements and breakout of BGF Carlton, LLC. separately can be found in the supplementary information. $80,740 was due from BGF Carlton, LLC to Building Goodness Foundation at December 31, NOTE 13 - LIABILITY FOR UNCERTAIN TAX POSITIONS: Organization management has analyzed the tax positions it has taken and has concluded that, as of December 31, 2017, there were no uncertain tax positions taken or are expected to be taken. Accordingly, no interest or penalties related to uncertain tax positions have been accrued in the accompanying financial statements. NOTE 14 - LINE OF CREDIT: The Organization established a $100,000 line of credit with Virginia National Bank on August 26, At year ended December 31, 2017, the line of credit was $0. NOTE 15 - SUBSEQUENT EVENTS: In preparing these financial statements, management of the Organization has evaluated events and transactions for potential recognition or disclosure through August 15, 2018, the date the financial statements were available to be issued. 14

18 - Supplementary Information -

19 Combining Schedule of Financial Position At December 31, 2017 Building Building Goodness Goodness BGF Combined Foundation in April Carlton, LLC Total Assets Current assets: Cash and cash equivalents $ 401,776 $ 105,760 $ 111,229 $ 618,765 Accounts receivable 55, ,075 Due to from Building Goodness Foundation 80,470 - (80,470) - Unconditional promises to give, current 66, ,747 Prepaid expenses 5, ,562 Total current assets $ 609,630 $ 105,760 $ 30,759 $ 746,149 Property and equipment: Land $ - $ - $ 252,181 $ 252,181 Buildings - - 1,161,887 1,161,887 Office equipment 10,307-64,710 75,017 Accumulated depreciation (5,540) - (36,976) (42,516) Net property and equipment $ 4,767 $ - $ 1,441,802 $ 1,446,569 Other assets: Beneficial interest in agency fund held by third party $ 40,273 $ - $ - $ 40,273 Unconditional promises to give, noncurrent, net of discounts 43, ,082 Total other assets $ 83,355 $ - $ - $ 83,355 Total assets $ 697,752 $ 105,760 $ 1,472,561 $ 2,276,073 Liabilities and Net Assets Liabilities: Current liabilities: Accounts payable $ 5,798 $ - $ - $ 5,798 Payroll liabilities 5, ,842 Deferred trip donations revenue 23, ,184 Mortgage payable, current portion - - 6,547 6,547 Total Current Liabilities $ 34,824 $ - $ 6,547 $ 41,371 Noncurrent liabilities: Mortgage payable, noncurrent portion $ - $ - $ 191,419 $ 191,419 Total Noncurrent Liabilities $ - $ - $ 191,419 $ 191,419 Total liabilities $ 34,824 $ - $ 197,966 $ 232,790 Net assets: Unrestricted $ 233,003 $ - $ 959,046 $ 1,192,049 Temporarily restricted 409, , , ,151 Permanently restricted 20, ,083 Total net assets $ 662,928 $ 105,760 $ 1,274,595 $ 2,043,283 Total liabilities and net assets $ 697,752 $ 105,760 $ 1,472,561 $ 2,276,073 15

20 Combining Statement of Activities For the Year Ended December 31, 2017 Building Building Goodness Goodness BGF Combined Foundation in April Carlton, LLC Total Unrestricted revenues, gains and other support: Individual contributions $ 396,561 $ - $ - $ 396,561 Foundation grants 98, ,070 Corporate/business contributions 83, ,088 Religious and community contributions 9, ,444 Gifts in kind 160, ,620 Project management fees 2, ,500 Miscellaneous income 8, ,549 Rental income ,100 14,100 Investment income 5, ,598 Net assets released from restrictions 1,374,121 64, ,439,541 Total unrestricted revenues, gains and other support $ 2,138,541 $ 64,582 $ 14,948 $ 2,218,071 Expenses: Salaries and wages $ 492,565 $ - $ - $ 492,565 Payroll taxes 34, ,122 Gifts in kind 160, ,620 Depreciation 1,661-35,566 37,227 Discount on pledges Pledge write-off 12, ,531 Dues and fees 7, ,986 Equipment purchases and maintenance Interest expense - - 3,137 3,137 Business insurance 21, ,108 Meetings and events 46,859 4,056-50,915 Miscellaneous expenses - 2, ,282 Occupancy expenses 12, ,424 Office supplies and expenses 5, ,585 Postage and shipping 4, ,614 Printing, copying and reproduction 19,292 2,526-21,818 Seminars and training 4, ,048 Professional services 39, ,346 44,869 Software 4, ,500 Volunteer expenses and appreciation 5, ,462 Scholarships 45, ,380 Public education 3, ,415 Advertising 7, ,292 Real estate taxes ,931 10,931 Repairs and maintenance - - 1,606 1,606 Telephone/internet 5, ,228 Travel 73, ,094 Direct project expenses 1,132,221 54,686-1,186,907 Total expenses $ 2,140,815 $ 64,582 $ 56,868 $ 2,262,265 Change in unrestricted net assets $ (2,274) $ - $ (41,920) $ (44,194) Temporarily restricted net assets: Individual contributions $ 109,610 $ 50,293 $ - $ 159,903 Trip participation donations 28, ,948 Religious and community contributions 62, ,758 Foundation grants 1,318, ,318,863 Investment income Miscellaneous income 94 2,259-2,353 Net assets released from restrictions (1,374,121) (64,582) (838) (1,439,541) Change in temporarily restricted net assets $ 146,152 $ (11,856) $ (838) $ 133,458 Net assets at beginning of year 519, ,616 1,317,353 1,954,019 Net assets at end of year $ 662,928 $ 105,760 $ 1,274,595 $ 2,043,283 16