UNITED WAY FOX CITIES, INC. FINANCIAL STATEMENTS YEAR ENDED MARCH 3'I, 2014 AND THREE MONTHS ENDED MARCH 31, 2013

Transcription

1 FINANCIAL STATEMENTS YEAR ENDED MARCH 3'I, 2014 AND THREE MONTHS ENDED MARCH 31, 2013

2 CONTENTS INDEPENDENT AUDITORS' REPORT 1 and 2 FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Activities 4 and 5 Statements of Functional Expenses 6 and 7 Statements of Cash Flows 8 Notes to Financial Statements 9-19 SUPPLEMENTARY INFORMATION Schedules of Partner Agency Program Expenses 20 and 21 Schedules of Community Investment Fund Grants 22 Page

3 INDEPENDENT AUDITORS' REPORT To the Board of Directors United Way Fox Cities, Inc. Menasha, Wisconsin We have audited the accompanying financial statements of United Way Fox Cities, Inc. (a nonprofit organization), which comprise the statements of financial position as of March 31, 2014 and 2013, and the related statements of activities, functional expenses and cash flows for the year and three months 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 Organization'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 Organization'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 United Way Fox Cities, Inc. as of March 31, 2014 and 2013, and the changes in its net assets and its cash flows for the year and three months then ended in accordance with accounting principles generally accepted in the United States of America. Appleton a Fond du Lac ~ Green Bay ~ Manitowoc ~ Milwaukee m Oshkosh A Sheboygan 9 Stevens Point a Wausau /4 G'~ a schencksc.com Ih lc Hfi 4TIOti.t L ~e µ~ ;v o~~ ei9~~~r ~~

4 Other Matter Supplementary Information Our audits were 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. Certified Public Accountants Green Bay, Wisconsin July 22, 2014 ~a

5 FINANCIAL STATEMENTS

6 STATEMENTS OF FINANCIAL POSITION March 31, 2014 and ASSETS Cash and cash equivalents $ 3,004,135 $ 2,550,103 Certificates of deposit 2,050,352 2,038,654 Promises receivable: Annual campaign, net of allowance 3,741,366 3,362,602 Endowment campaign 3,002 15,599 Other receivables 15,385 17,377 Prepaid expenses 19,598 15,670 Property and equipment, net 1,166,579 1,211,316 Beneficial interest in assets at Community Foundation 1,123, ,606 Other assets 143, ,646 Total assets 11.26E :573 LIABILITIES AND NET ASSETS Liabilities. Community investments payable $ 3,654,026 $ 3,601,710 Community investment fund grants payable 236, ,731 Payable to other communities/agencies 187, j627 Accounts payable 60, ,951 Accrued expenses 105, ,156 Other liabilities 118,502 94,656 Total liabilities 4, ,831 Net assets Unrestricted: Board designated 5,247,934 4,207,205 Undesignated 109, ,795 Net investment in property and equipment 1, ,211,316 Total unrestricted net assets ,316 Temporarily restricted: Endowment program expenses fi2,745 38,196 Subsequent year campaign 39,73 17,416 Subsequent year programs 67, Total temporarily restricted net assets ,186 Permanently restricted net assets 210, ,240 Total net assets 6, ,8~i6,742 Total liabilities and net assets See Notes to Financial Statements. K3

7 STATEMENTS OF ACTIVITIES For the Year Ended March 31, 2014 and Three Months Ended March 31, Unrestricted net assets Revenue Contributions: Gross current campaign results $ 8,007,012 $ 399,950 Gross past campaign results 14, Less: Donor designations to United Way partner agencies (403,811) (29,795) Donor designations to other communities/agencies (468,273) (76,981) Provision for uncollectible promises (95.238) 69,726 Net campaign revenue 7,054, ,218 Designations from other United Ways 55,162 9,887 In-kind contributions 124,008 24,049 Service fees 47, Return on beneficial interest in assets at Community Foundation 67,727 26,715 Investment income 25,426 6,315 Miscellaneous 65,335 8,300 Net assets released from restrictions: Restrictions satisfied by payments ,736 Total revenue 7.632, ,324 Expenses Program services: Community impact programs: Developing Children and Youth 1,610,829 Strengthening Families 938,894 - Promoting Health, Healing and Crisis Intervention 1,502,943 Providing Basic Needs and Self Sufficiency 834,643 - Less expenses funded through designations ( ) (29,795) Net partner agency program expenses 4,483,498 (29,795) Community investment fund grants 138,350 - Community services provided by United Way: Community development 550, , program 190,505 44,436 AFL-CIO labor program 65,727 19,853 Youth board 30,591 17,511 Weight of the Fox Valley 3,525 - FEMA 2,599 - Life needs 5, Total program services 5, See Notes to Financial Statements. 4

8 Expenses, continued Management and general: Office operations 364, ,298 Marketing Total management and general 478, ,496 Fund-raising -Campaign ,616 Total expenses 6.639, ,055 Change in unrestricted net assets 992,580 18,269 Unrestricted net assets, beginning 5, ,513,047 Unrestricted net assets, ending 6, , Temaorarily restricted net assets Subsequent year campaign results 39,723 17,416 Contributions 173,884 97,714 Return on beneficial interest in assets at Community Foundation 20,408 7,694 Investment income 4, Net assets released from restriction ( ) (99,736) Change in temporarily restricted net assets 44,596 23,753 Temporarily restricted net assets, beginning ,433 Temporarily restricted net assets, ending 169, ,186 Permanently restricted net assets Endowment campaign contributions 10,151 3,391 Permanently restricted net assets, beginning 200, ,849 Permanently restricted net assets, ending Total net assets Change in net assets 1,047,327 45,413 Net assets, beginning 5.856, Net assets, ending

9 STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended March 31, 2014 Community Services Management and General Fund-raising AFL-CIO Weight of the Community Labor Youth Fox Valley Life Office Marketing / Resource Investments Program Program Board (WOTFV) FEMA Needs Operations Communications Development Total Community investments Less donor designations $ 5,226,472 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,226, ( ) 4,822, ,822,661 Salaries Payroll taxes Health insurance Retirement Other benefits 210,686 93,832 39,299 9,337 17,110 8,302 3, , , ,108 7,704 3, (13,451) (1,026) (2,905) 23 2,876 1,907 3, ,633 59, , , ,059 4,826 23,922 74, ,512 12,534 53, , ,048 4,455 17,240 61, (7,475) (2,3021 6,519 (20,368) Total salaries and related expenses 249, ,410 53,906 10,420 3,525 2,431 5, ,777 79, ,612 1,180,161 p~ Outside printing Communication Promotion Occupancy Training/developmenUconferen ces Travel, meals and events Professional services Telephone Once supplies Diaper Bank project Postage Equipment repair and maintenance Licensing Insurance Dues and subscriptions Affiliation dues - UWWI and UWWW Depreciation Non-profit development Miscellaneous 1,121 1, ,680 39, ,420 83,976 86,255-4, ,715 1,224 11,329 7,360 5,257 1, ,267 1,928 11,916 35,305 2,366 1, ,239 1,522 5,015 16,364 2, , , ,083 63,994-22, ,744 10,578 1,076 67,655 3,433 10, ,473 1,788 5,887 27,481 1,952 1, , ,354 15,384 35, ,323 1,128 6,818 10,651 6,412 4,554 1, ,907 1,670 15,271 42,179-4, , ,376 1, , ,779 18,442 3, ,462-1,017 6,742 18,204 12,418 2, ,561 4,551 28,097 82,745 12,635 9,025 2, ,034 3,309 20,457 60,168 2, , , ,323 9, $ $ $ ~ $ ~ $ $ ~ See Notes to Financial Statements.

10 Community investments Less donor designations Salaries Payroll taxes Health insurance Retirement Other benefits Total salaries and related expenses v Outside printing Communication Promotion Occupancy Train i ng/developm ent/conferences Travel, meals and events Professional services Telephone Office supplies Postage Equipment repair and maintenance Insurance Dues and subscriptions Affiliation dues - UWWI and UWWW Depreciation Miscellaneous See Notes to Financial Statements. UNITED WAY FOX CITIES, INC. STATEMENT OF FUNCTIONAL EXPENSES For the Three Months Ended March 31, 2013 Community Services Management and General Fund-raising AFL-CIO Community Labor Youth Life Once Marketing / Resource Investments Program Program Board Needs Operations Communications Development Total $ 85,708 $ - $ - $ - $ - $ - $ - $ - $ 85,708 (29.795) (29,795) 55, ,913 52,462 22,607 9,760 2, ,087 12,159 77, ,121 4,782 2, ,160 1,141 6,801 20,256 3, , , ,573 23,125 4,375 1, ,005 1,103 4,453 15,838 1, , ,941 27,754 15,054 3,086 1,222 62,269 15, , , ,455 1,414 10, ,055 21,935-2, ,107 1,687 1, , ,731 8, , ,825 5, , ,500 6,602 25,351 1,201 4, ,581 3,900-25, , , 355 4, , , ,402 3,026 1,688 3, , ,733 11, , ,785 2, ,204 4,440 3, ,060 1,117 6,903 20, , , ,343-1, $ $ $ $ $ $ $ $ $

11 STATEMENTS OF CASH FLOWS For the Year Ended March 31, 2014 and Three Months Ended March 31, Operating activities Change in net assets $ 1,047,327 $ 45,413 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 60,168 15, 759 Change in allowance for uncollectibles (53,712) (69,726) Discount on promises receivable - (16) Return on beneficial interest in assets at Community Foundation (106,272) (37,378) Long-term contributions for endowment (10,151) (3,375) Changes in operating assets and liabilities: Promises receivable (325,052) 1,587,837 Other receivables 1,992 13,074 Prepaid expenses (3,928) (885) Other assets (3,675) (7,649) Community investments payable 52,316 (1,195,006) Community investment fund grants payable (81,171) 9,873 Payable to other communities/agencies (727) (61,715) Accounts payable (42,943) (72,248) Accrued expenses (53,452) 14,515 Other liabilities ,632 Net cash provided by operating activities 504, ,105 Investing activities Purchases of property and equipment (15,431) (7,592) Certificates of deposit, net (11,698) (2,069) Contribution to beneficial interest in assets at Community Foundation (51,153) (7,449) Distribution from beneficial interest in assets at Community Foundation 5,000 - Net cash used in investing activities (73,282) (17,110) Financing activities Proceeds from long-term contributions for endowment 22,748 3,525 Cash and cash equivalents Net increase in cash and cash equivalents 454, ,520 Beginning 2,550,103 2,318,583 Ending See Notes to Financial Statements. E:3

12 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 1 -Nature of activities and significant accounting policies A. Nature of activities United Way Fox Cities, Inc. (Organization) is a volunteer organization serving the Fox Cities communities of Wisconsin organized in 1993 under the laws of the State of Wisconsin. The Organization's revenue is derived primarily through fund-raising and contributions from the public. The mission of the Organization is to bring diverse people and resources together to build a stronger, more caring community for everyone. The Organization is governed by a volunteer board of directors. Through an extensive volunteer-driven process, funds are invested in partner agencies to fund programs fairly and impartially with the betterment of the broad community in mind. The distribution of funds is guided by boardapproved priorities through planning, needs assessment and policy decisions relating to the communities' changing needs and resources. B. Fiscal year change In January, 2013, the Organization's Board of Directors approved of changing the Organization's year end to a fiscal year ending March 31. The reason for the change is to capture significantly all annual campaign activity within the reporting period and to allow sufficient time for accurate reporting of final results for company campaigns and individual donations. The accompanying financial statements include the three-month transition period from January 1, 2013 through March 31, Activity reported for the transition period is not comparable to the twelve-month reporting period ended March 31, C. Basis of accounting The financial statements of the Organization have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables and other liabilities. D. Basis of presentation The Organization is required to report information regarding its net assets and its activities in the following three classes of net assets: E. Estimates Unrestricted net assets -net assets that are neither temporarily nor permanently restricted by donor-imposed stipulations. Temporarily restricted net assets -net assets that result from contributions whose use by the Organization is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently restricted net assets -net assets resulting from contributions whose use by the Organization is limited bydonor-imposed stipulations that neither expire by passage of time nor can be fulfilled and removed by actions of the Organization. Permanently restricted net assets consist entirely of donor-restricted contributions for endowment. Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. F. Cash and cash equivalents For purposes of the statements of cash flows, the Organization considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. E

13 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 1 -Nature of organization and significant accounting policies, continued G. Property and equipment All acquisitions and improvements of property and equipment in excess of $500 are capitalized while all expenditures for repairs and maintenance that do not materially prolong the useful lives of assets are expensed. Purchased property and equipment is carried at cost. Donated property and equipment is carried at the approximate fair value at the date of donation. Depreciation is computed using the straightline method. H. Contribution recognition Contributions are recognized as revenue when they are received or unconditionally promised. Donorrestricted 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 and reported in the statements of activities as net assets released from restrictions. Donated services are recognized as contributions if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, are performed by people with those skills and would otherwise be purchased by the Organization. I. Functional allocation of expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statements of activities and functional expenses. Accordingly, certain costs have been allocated on the basis of periodic time and expense studies among the program services and supporting activities benefited. In accordance with federal Form 990 and United Way Worldwide reporting requirements, dues to United Way Worldwide are allocated across program services and supporting activities. J. Income tax status United Way Fox Cities, Inc. is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to the Organization's taxexempt purpose is subject to taxation on unrelated business income. In addition, the Organization qualifies for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization that is not a private foundation under Section 509(a)(2). The Organization is also exempt from Wisconsin income taxes. Penalties and interest assessed by income taxing authorities are included in management and general expenses, if applicable. The Organization had no interest and penalties related to income taxes for the fiscal year ended March 31, The Organization's federal returns are subject to examination generally for three years after they are filed and its state returns are subject to examination generally for four years after they are filed. K. Subsequent events The Organization has evaluated events and transactions for potential recognition or disclosure in the financial statements through July 22, 2014, the date on which the financial statements were available to be issued. 10

14 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 2 -Concentrations of credit risk arising from cash deposits in excess of insured limits The Organization maintains its bank accounts and certificates of deposits at several financial institutions in the Fox Cities area. The balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per insured depository institution. In addition, deposits with credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000. The Organization's cash deposits may exceed these federally insured limits at times during the year. As of March 31, 2014 and 2013, balances in excess of FDIC coverage approximated $2,678,000 and $2,230,000, respectively. The Organization has not experienced any losses on these accounts. Management believes the Organization is not exposed to any significant credit risk on cash. Note 3 -Certificates of deposit Certificates of deposit totaling $2,050,352 and $2,038,654 at March 31, 2014 and 2013, respectively, are included in the accompanying financial statements. The certificates bear interest ranging from.10% to.90% at March 31, 2014 and 2013, and have maturities extending to eleven months, with penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements. Note 4 -Promises receivable Promises receivable are primarily due from individuals and organizations located in the Fox Valley region. Approximately 16.6% and 18.6% of the total promises to give were due from one organization and its employees at March 31, 2014 and 2013, respectively. Promises receivable as of March 31, 2014 and 2013 consist of the following: Annual campaign: 2014 campaign 2013 campaign 2012 campaign 2011 campaign Less provision for uncollectible amounts $ 10,058 $ - 3,948, ,209 3,544, ,575 4,118,104 3,793, , , Endowment campaign: Receivable in less than one year $ 3,002 $ 15,599 All annual campaign promises receivable are due within one year. Provision for uncollectible amounts is calculated based upon a three year historical average applied to gross campaign results including donor designated amounts and management's consideration of specific promises receivable that may be at risk. 11

15 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 5 -Property and equipment Property and equipment consists of the following: Land Buildings and improvements Office furnishings and equipment 2014 $ 15,000 1,259, , $ 15,000 1,259, ,604 Less accumulated depreciation Net property and equipment 1,621,599 1,606, , , Note 6 -Beneficial interest in assets at Community Foundation Beneficial interest in assets at Community Foundation consists of investments in pooled funds at Community Foundation for the Fox Valley Region, Inc. (CFFVR) which are carried at the fair value of the underlying securities in the fund. These funds are the legal assets of the Foundation with the restriction that the Foundation make distributions to the Organization as needed. The agreement governing the assets includes a variance power allowing the Foundation to modify the restrictions on distributions from the funds. The following is a description of each fund: Legacv of Caring Endowment Fund This fund was set up at CFFVR by the Organization's Board of Directors using a prior unrestricted donation and designating the net income to be used to support health and human service programs in the Fox Valley. Principal can be used in unusual circumstances. These amounts are presented in the financial statements as unrestricted, board designated net assets. Beginning in 2009, endowment campaign contributions may be permanently restricted by donors for this fund. These amounts are presented in the financial statements as permanently restricted net assets. $ 131,889 $ 119,547 Administrative Endowment Fund This fund was set up at CFFVR by the Organization's Board of Directors using a prior donation that had been restricted by the donor to provide for the long-term funding of the Organization's administrative and operating expenses. Net income of the fund and, in unusual circumstances, principal must be used for the aforementioned purpose. Donor-restricted gifts are presented in the financial statements as permanently restricted net assets. 231, ,123 12

16 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 6 -Beneficial interest in assets at Community Foundation, continued Reserve Investment Fund This fund was set up at CFFVR by the Organization's Board of Directors using a prior unrestricted donation and designating the net income to be used as a reserve in the event of campaign shortfalls and emergencies. Principal can be used in unusual circumstances. These funds are presented in the financial statements as unrestricted, board designated net assets. Impact Area Endowment Funds These funds were set up at CFFVR by the Organization's Board of Directors using a prior unrestricted donation and designating the net income to be used to provide funding for identified impact areas. These funds are presented in the financial statements as unrestricted, board designated net assets. Beginning in 2010, endowment campaign contributions may be permanently restricted by donors These amounts are presented in the financial statements as permanently restricted net assets , , ,155 91, $ Note 7 -Board-designations of net assets The Organization's Board of Directors has chosen to place the following limitations on unrestricted net assets: Operations Community development Reserve Managed Impact Solutions (MIS) Capital replacement Diaper bank LIFE/Needs assessment Vital Signs (LIFE in Motion) Providing Access to Healing (PATH) for Students Community early learning center Boys and Girls Club (Menasha) Weight of the Fox Valley Early teaming coalition Early teaming fund (with CFFVR) Hispanic chamber /workforce development The Connector Endowments: Legacy of Caring Impact Area Administrative $ - $ 2,443,177 1,040, ,127 55,000 50,000 15, , , , , , , ,000 50, , ,000 1,473,177 1,040, ,127 30,000 37,833 15, , ,917 97,418 50,774 45,

17 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 8 -Temporarily restricted net assets Net assets temporarily restricted for subsequent year programs consist of the following: Labor dinner Early childhood initiative Leading Indicators for Excellence (LIFE) in Motion Diaper bank Providing Access to Healing (PATH) for Students Youth worker coalition Weight of the Fox Valley ,000 11, , $ ,000 11,748 26, , $ $ Note 9 -Endowment net assets As of March 31, 2014 and 2013, the Organization's endowment funds consist of contributions permanently restricted by donors and funds internally designated by the Board of Directors for the purposes of the endowment funds described in Note 6. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Board of Directors of the Organization has interpreted the Wisconsin Uniform Prudent Management of Institutional Funds Act (WUPMIFA) as requiring the preservation of the fair value of original gifts as of the gift date to the donor-restricted portions of the endowment funds absent donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowments and (b) the original value of subsequent gifts to the permanent endowments. The remaining portion of the endowment funds that are not classified in permanently restricted net assets are classified as temporarily restricted endowment net assets until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by WUPMIFA. It is the Organization's policy to invest its funds consistent with the safeguards and diversity of a prudent investor, providing for the highest investment return with the maximum security, while meeting the daily cash flow demands of the Organization. Composition of endowment net assets as of March 31, 2014 and 2013 were as follows: Temporarily Permanently 2014 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ - $ 62,745 $ 210,391 $ 273,136 Board-designated endowment funds 199, ,630 Total funds, March 31, 2014 $ $ $ $ Temporarily Permanently 2013 Unrestricted Restricted Restricted Total Donor-restricted endowment funds $ - $ 38,196 $ 200,240 $ 238,436 Board-designated endowment funds 161, ,068 Total funds, March 31, 2013 $ ~ $ $ (Continued) 14

18 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 9 -Endowment net assets, continued Changes in endowment net assets were as follows: Balance, December 31, 2012 Contributions Investment return: Investment income Net appreciation Amounts appropriated for expenditure Balance, March 31, 2013 Contributions Investment return: Investment income Net appreciation Amounts appropriated for expenditure Balance, March 31, 2014 Temporarily Permanently Unrestricted Restricted Restricted $ 154,842 $ 495 5,731 Total 29,837 $ 196,849 $ 381,528-3, 391 3, ,160 7,694-13, , , , , , ,151 35,151 3,162 4,141-7, ,400 20,408-35,808 (5,000) - - (5,000) $ $ $

19 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 10 -Donated materials and services The value of donated materials and services included in the financial statements as in-kind contributions and the corresponding expenses for the year ended March 31, 2014 and for the three months ended March 31, 2013 are as follows: 2014 Office Program Operations Marketing Campaign Total Promotion $ - Supplies 1,653 Miscellaneous 4,236 Professional fees - Communications - Printing - Telephone 9,107 Travel - $ - $ 4,715 $ - $ 4, ,724 6, , ,501 1,076 7, ,163 65,163 3,813 4,150 6,308 14, , ,333 12,468 $ $ $ Office Program Operations Marketing Campaign Total Communications $ - $ 110 $ - $ 20,895 $ 21,005 Printing - - 2,500-2,500 Travel $ - $ 110 $ $ $ A significant amount of hours were volunteered by employees of local companies participating in the Organization's campaign. Volunteers also assisted the Organization in the review of allocations during the annual campaign. None of these contributed services are included in revenue on the statements of activities since they do not meet the criteria for recognition. Note 11 -Retirement plans The Organization sponsors a Section 403(b) retirement plan that covers substantially all employees. Employees may elect to contribute up to the annual deferral limitation as defined in IRC Section 402(8). The Organization may elect to make a discretionary contribution. For the year ended March 31, 2014 and for the three months ended March 31, 2013, the Organization made contributions of $50,416 and $13,071, respectively, to the Plan. The Organization has an eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code. The Organization's President/CEO was granted eligibility to participate in the plan. For the year ended March 31, 2014 and for the three months ended March 31, 2013, Organization contributions to the plan were $11,150 and $2,767, respectively. ii~

20 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 12 -Leases The Organization has two noncancelable operating leases, for a copier and postage meter, that expire within the next 3 to 4 years. Rental expenses for those leases consisted of $5,045 for the year ended March 31, Future minimum lease payments under operating leases that have remaining terms in excess of one year as of March 31, 2014, are: Years Ending March 31, 2015 $ 5, , , $ Note 13 -Functional overhead analysis Functional overhead expenses and overhead rate as determined according to the United Way ofamerica Functional and Overhead Reporting Guidelines for the year ended March 31, 2014 are as follows: Functional overhead expenses (excluding in-kind expenses) Management and general: Office operations $ 359,080 Marketing 99,038 Fund-raising: Campaign 602,981 Total functional overhead expenses (excluding in-kind expenses) Total revenue* (including designations/excluding in-kind donations) Overhead rate 12.6 Includes $10,151 of endowment campaign revenue for the year ended March 31, Functional overhead expenses and overhead rate for the three-month transition period ended March 31, 2013 are not presented above since the calculation is not comparable to the twelve-month calculation for year ended March 31, Note 14 -Pledge to comply with United Way of America Standard M The expenses associated with processing donor designated promises to give are recovered by an assessment for fundraising fees based on actual historical costs in accordance with United Way Worldwide Membership Standards as outlined in their publication titled United Way ofamerica Cost Reduction Requirements for Membership Standard M. 17

21 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 15 -Fair value measurements Accounting standards establish a framework for measuring fair value and expand the disclosures on fair value measurements in financial statements by specifying a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, whereas unobservable inputs reflect the Organization's market assumptions. The fair value hierarchy specified is as follows: Level 1 -Quoted prices in active markets for identical assets and liabilities. Level 2 -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. The following table presents, for each of the fair value hierarchy levels, the Organization's financial assets and liabilities that are measured at fair value on a recurring basis: 2014 Fair Value Measurements Using Level1 Level2 Level3 Total Assets Certificates of deposit $ Promises receivable: - $ 2,050,352 $ - $ 2,050,352 Endowment campaign - - 3,002 3,002 Beneficial interest - - 1,123,031 1,123,031 Section 457 Plan 118, ,502 Total assets at fair value $ 118,502 $ 2,050,352 $ 1,126,033 $ 3,294,887 Liability Section 457 Plan $ 118,502 $ - $ - $ 118, Fair Value Measurements Using Level1 Level2 Level3 Total Assets Certificates of deposit $ Promises receivable: - $ 2,038,654 $ - $ 2,038,654 Endowment campaign ,599 15,599 Beneficial interest , ,606 Section 457 Plan 94, ,656 Total assets at fair value $ 94,656 $ 2,038,654 $ 986,205 $ 3,119,515 Liability Section 457 Plan $ 94,656 $ - $ - $ 94,656 18

22 NOTES TO FINANCIAL STATEMENTS March 31, 2014 and 2013 Note 15 -Fair value measurements, continued Fair values for the Section 457 Plan are determined by reference to quoted market prices. Fair values for the certificates of deposit are determined to be comparable to similar financial assets not actively traded with values approximating cost. Fair values for promises receivable are determined by calculating the net present value of future cash flows using rates of similar risk-free monetary assets. Management has determined the risk of nonperformance for promises receivable is remote and has not adjusted the risk-free rates used. Fair values for the beneficial interest are determined from information provided by the Community Foundation on pooled investments in both marketable securities and other investments including private investment funds, hedge funds, real asset funds and private equity funds, that do not have readily determinable fair values. Valuations for these other investments involve estimates, appraisals, assumptions and other valuation methods. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth a summary of changes in the fair value of the Organization's assets valued on a recurring basis using Level 3 inputs for the year ending March 31, 2014 and for the three months ending March 31, 2013: Endowment campaign promises receivable Balance, beginning Promises received Payments received Change in present value Balance, ending $ 15,599 $ 15,733 10,151 3, 375 (22,748) - (3,525) 16 $ $ Beneficial interest in assets at Community Foundation Balance, beginning Contributions invested Distributions received Return on investment in beneficial interest Balance, ending $ 970,606 $ 925,779 51,153 7,449 (5,000) , $

23 SUPPLEMENTARY INFORMATION

24 SCHEDULES OF PARTNER AGENCY PROGRAM EXPENSES For the Year Ended March 31, 2014 and Three Months Ended March 31, Advocap $ 41,316 $ - AIDS Resource Center of Wisconsin 63,665 - American Red Cross in Northeast Wisconsin Chapter 102,335 - The ARC Fox Cities 250,055 - Best Friends of Neenah-Menasha 147,234 - Big Brothers/Big Sisters of the Fox Valley Region 161,100 - Boys' and Girls' Brigade Association 37,000 - Boys and Girls Club of the Fox Valley 284,479 - CAP Services, Inc. 91,652 - Catalpa Health 80,730 - Catholic Charities of the Diocese of Green Bay 135,740 - Cerebral Palsy Mideast Wisconsin 44,737 - Child Care Resource and Referral, Inc. 68,977 Christine Ann Domestic Abuse Services 110,750 - Community Family Resource Center 17,978 - Emergency Shelter of the Fox Valley 145,500 - Family Services of Northeast Wisconsin 318,276 - Financial Information and Service Center 191,846 - Fox Valley Literacy Coalition 80,868 - Friendship Place 101,800 - Girl Scouts of the Northwestern Great Lakes 146,315 - Harbor House Domestic Abuse Program 142,000 - Hmong-American Partnership 139,565 Housing Partnership of the Fox Cities 40,000 - Legal Services of Northeast Wisconsin 53,058 - Lutheran Social Services 246,024 - National Alliance on Mental Illness (NAMI) Fox Valley 65,346 - Neenah-Menasha Dental Clinic 35,166 - Neenah-Menasha Dial-A-Ride 8,500 - Non-Profit Affordable Housing Based Rental Services (NAHBRS) 9,240 - Partnership Community Health Center 100,000 - Project Bridges Day Care and Preschool 125,000 - Reach Counseling Services 150,656 20

25 SCHEDULES OF PARTNER AGENCY PROGRAM EXPENSES For the Year Ended March 31, 2014 and Three Months Ended March 31, 2013 (Continued) Sexual Assault Crisis Center of the Fox Cities 129,695 Valley Packaging Industries 238,141 Villa Hope 22,000 YMCA of the Fox Cities Youth-Go Less expenses funded through designations Net partner agency program expenses 567, ,843 4,887,309 - (403,811) (29,795) (

26 SCHEDULES OF COMMUNITY INVESTMENT FUND GRANTS For the Year Ended March 31, 2014 and Three Months Ended March 31, Casa of the Fox Cities Community Clothes Closet, Inc. Family Services of Northeast Wisconsin Fox Valley Veterans Council, Inc. Kathy's House National Alliance on Mental Illness (NAMI) Fox Valley Reach Counseling Services Rural Health Initiative St. Elizabeth Hospital Tri-County Community Dental Clinic Total community investment fund grants $ 24,850 $ - 10,000-9,500-10,000-10,000-19,000-10,000-5,000-15,000-25,000 - $ $ - 22