STATEMENTS (UNAUDITED)

Transcription

1 FINANCIAL STATEMENTS (UNAUDITED)

2 C O N T E N T S FINANCIAL STATEMENTS Page Statement of Financial Position 1 Statement of Activities 2 Statement of Functional Expenses 3 Notes to Financial Statements 4 7

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4 Statements of Financial Position ASSETS CURRENT ASSETS Cash and cash equivalents $ 74,165 Inventory, net - TOTAL CURRENT ASSETS 74,165 PROPERTY AND EQUIPMENT, net 2,460 TOTAL ASSETS $ 76,625 LIABILITIES AND NET ASSETS TOTAL LIABILITIES $ - NET ASSETS Permanently Restricted 58,127 Unrestricted 18,498 TOTAL NET ASSETS 76,625 TOTAL LIABILITIES AND NET ASSETS $ 76,625 See Accompanying Notes to Financial Statements -1-

5 Statements of Activities SUPPORT AND REVENUES: Contributions $ 127,533 Gross receipts 5,032 Interest Income 4 SUBTOTAL Donated use of event facilities 16,000 Donated use of management facilities 12,000 Donated event transportation services 10,500 Donated legal services 6,000 Donated information technology services 4,800 Donated event lodging 500 TOTAL SUPPORT AND REVENUES 182,369 EXPENSES: Program services 39,902 Management and general 34,592 Fundraising 50,792 TOTAL EXPENSES 125,286 INCREASE IN NET ASSETS 57,083 NET ASSETS, BEGINNING OF YEAR 20,137 Other changes in net assets or fund balances (535) Cost of Goods Sold (60) NET ASSETS, END OF YEAR $ 76,625 See Accompanying Notes to Financial Statements -2-

6 Statements of Functional Expenses Program Services Management and General Fundraising TOTAL EXPENSES Event facilities $ - $ - $ 23,574 $ 23,574 Assistance to individuals 22, ,796 Assistance to organizations 14, ,715 Professional fees - 10,800 2,637 13,437 Rent - 12,000-12,000 Event transportation ,500 10,500 Event equipment - - 5,682 5,682 Event food & beverage - - 4,500 4,500 Project and office administration 1,868 1, ,591 Travel 428 2, ,380 Advertising - 2,907-2,907 Event lodging - - 2,101 2,101 Information technology - 1,994-1,994 Bank/merchant fees 95 1, ,600 Depreciation - 1,123-1,123 Membership/registration fees Meals & entertainment State/local fees TOTAL EXPENSES $ 39,902 $ 34,592 $ 50,792 $ 125,286 The statement of functional expenses reflected above includes non-cash expenses for donated event facilities ($16,000), donated rent ($12,000), donated event transportation ($10,500), donated legal services ($6,000), donated IT consulting services ($4,800), donated event food & beverage ($4,500), and donated event lodging ($500). These non-cash expenses comprise approximately 43% of total expenses during the year. See Accompanying Notes to Financial Statements -3-

7 Notes to Financial Statements NOTE 1 ORGANIZATION AND NATURE OF ACTIVITIES Cops 4 Causes, a California non-profit public benefit corporation (the Organization), is the first, standalone 501(c)(3) organization to collectively highlight the philanthropic efforts of law enforcement. The Organization is comprised of all levels of peace officers, public safety officials, and friends & family of law enforcement who seek to raise funds and awareness to give back to their communities, support military troops & veterans, and to aid families of law enforcement officers killed or gravely disabled in the line of duty. Cops 4 Causes is headquartered in Hollywood, California, and strives to expand nationally. The Organization has four major program services: Fallen Heroes Program Supports families of peace officers who have been killed or disabled in the line of duty. This fund is primarily subsidized by an annual Fallen Heroes Benefit Concert, fundraisers and the following programs: a. LASD Initiative: Partnership with the Los Angeles County Sheriff s Department (LASD) to create a holistic approach of long-term support to families of law enforcement officers killed in the line of duty. b. Law Enforcement Agency/Peace Officer Association (POA) Account Initiative: Encourages law enforcement agencies and POAs who have had fellow peace officer(s) killed or seriously injured in the line of duty to establish accounts with Cops 4 Causes for purposes of long term care and support. Additionally, the funds raised have supported employment, mental health and counseling services, rehabilitation, financial restructuring/assistance, and support for families of law enforcement killed, injured, or disabled in the performance of their duties. R.J. Cottle Returning Heroes Veterans Program Aims at raising funds and awareness for programs supporting returning Gulf War II veterans. This fund is primarily subsidized by an annual Heroes Helping Heroes Benefit and the following programs: a. Heroes Helping Heroes Program: enlists the help of the public safety community to do its part to support the troops. In addition to establishing the R.J. Cottle Returning Heroes Veterans fund, in honor of LAPD swat officer and USMC Sergeant Major Robert James Cottle, Cops 4 Causes has endeavored to inspire all 800,000 sworn members of law enforcement (law enforcement heroes) throughout America to lend a hand to help returning veterans (military heroes). In addition to direct outreach via veterans stand downs and law enforcement participation with partner organizations, Cops 4 Causes has embarked on a mission to help archive the verbal histories of military service men and women via the: i. Veterans History Project This project allows law enforcement members to record the oral history of those who have served in our nation s military for the Library of Congress. Hand Up Program Seeks to help people who are homeless transition from the streets to stable living conditions by partnering law enforcement, businesses, waste management providers, and residents in the communities served through a compassionate and comprehensive approach of support. This fund is primarily subsidized by the recent launch of the Hand Up Program in West Hollywood through events and sponsorship initiatives that activate local residents and businesses. General Program An unmarked community initiative and operational fund. This fund is primarily subsidized by general donations, organization memberships, and the following program: Project 12 No matter where donors are in their journey, Cops 4 Causes encourages them to give and make a difference...for as little as $1 a month ($12/year) via automatic debit. Additionally, the funds raised have allowed the Organization to show law enforcement's support of community-based programs, and provide assistance to children and adults with cancer, TB, HIV/AIDS, Down Syndrome, MS, diabetes and other life-altering disabilities. -4-

8 NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Notes to Financial Statements Basis of Presentation The financial statements have been prepared on the cash basis of accounting, which does not follow accounting principles generally accepted in the United States of America (GAAP). Net Assets The Organization recognizes contributions as revenue in the period received. Revenues, and expenses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets - represent the portion of expendable funds that are available to support the operations and are not subject to donor-imposed restrictions Temporarily restricted net assets - consist of contributions that are restricted for use in specific programs or whose restrictions expire with the passage of time. The Organization records temporarily restricted cash contributions that are received and expended in the same year as temporarily restricted revenue. As the donor restrictions are satisfied, net assets are released from restrictions. Permanently restricted net assets - comprise funds that are subject to restrictions that the principal may be maintained in perpetuity and invested for the purpose of producing present and future income that may be expended by the Organization. Approximately 76% of net assets are permanently restricted at. Contributed Facilities Cops 4 Causes would not be able to operate without the major support received from private corporations and individuals, especially with regards to facilities. The Organization received rent-free use of the venue for the Heroes Helping Heroes Benefit at Pink Taco in West Hollywood, California, in addition to nearby lodging to assist with hosting celebrities and honorees. The Organization also receives rent-free use of its management facilities, which is used to maintain an administrative office, as well as conduct Board and other operational meetings. Management estimates the value of contributed event facilities at $16,000, event lodging at $500, and contributed rent at $12,000 for the year ended. Contributed Services Some services provided to Cops 4 Causes are donated. Contributed services are recognized by the Organization if the services received (a) are quantifiable and necessary to increase program or fundraising revenue or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. The Organization received free limousine and cab company transportation to assist with hosting celebrities and honorees for the Heroes Helping Heroes Benefit. Without these contributed services, the Organization could not facilitate a major fundraising event. Management estimates the fair value of such services to be $10,500 for the year ended. The Organization also receives donated legal and web management services valued at $10,800 for the year ended. -5-

9 Notes to Financial Statements NOTE 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Additionally, the Organization receives a significant amount of contributed time from volunteers that does not meet the two recognition criteria described above. Accordingly, the value of this contributed time is not reflected in the accompanying financial statements. Management estimates that approximately 2,000 volunteer hours for solicitation, letter writing, and event preparation and production were received last year by a support network of volunteers around Southern California. The purpose of the Organization could not be fulfilled without these contributions. Contributed Goods Cops 4 Causes also received donated goods from private corporations, which covered most event-related food & beverage expenses. Donated event goods are recorded as permanently restricted net assets, and valued at management's estimate of fair value at the time they are received. Upon use or consumption, the goods are recorded as a decrease in permanently restricted net assets. Management estimates the value of contributed goods at $4,500 for the year ended December 31, Functional Allocation of Expenses The costs of providing the programs and other activities have been summarized on a functional basis in the statement of activities and detailed in the statement of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited based on management's estimates. Inventory Inventory is valued based on management's estimate of fair value (a Level 3 fair value measure) for each item received or actual cost for items that are purchased. Inventory consists primarily of promotional products or merchandise used to further the Organization s brand. All inventories are warehoused at the Hollywood headquarters. At year-end, management estimates the book value is $0, as the Organization does not plan to use the promotional merchandise held due to obsolete branding. Cost basis: $420 (beginning inventory) - $60 (Cost of Goods Sold) = $360 (ending inventory). $360 was added to the obsolete inventory allowance account, and expensed under depreciation at year-end leaving a $0 book value as the inventory book value is reduced by the allowance amount). Income Tax The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, as amended. The Organization is also exempt from California Franchise taxes under Section 23701(d) of the State Revenue and Taxation Code. Therefore, no provision for federal or state income taxes is reflected in the accompanying financial statements. The Organization s federal income tax and informational returns for tax years 2009 and subsequent remain subject to examination by the Internal Revenue Service. The returns for California remain subject to examination by the California Franchise Tax Board for years 2009 and subsequent. Property and Equipment Property and equipment consists of 2 laptop computers (and portable mouse each), 1 Mobile Hotspot, 1 generic step & repeat, and office equipment/furniture, including: 2 leather armchairs, 2 desks (including shelves with drawers), area rug, lamps, and trashcans. All items are depreciated using MACRS over a period of five to seven years, except for the Mobile Hotspot that was a section 179 deduction in Other changes in net assets or fund balances For the purposes of matching the Organization s 2012 IRS Form 990, $(535) in refunded contributions were not removed from Contributions on the Statements of Activities, but instead placed under Other changes in net assets or fund balance. -6-

10 NOTE 3 USE OF ESTIMATES Notes to Financial Statements Management has made estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As the operations of the Organization are centrally located and primarily functioning for the purpose of fundraising through events and other campaigns, the most significant estimates related to the valuation of contributed facilities, contributed labor and other services, and contributed goods. Contributed facilities, services, and goods account for 30% of total revenues for the year ended. The valuation of all contributed items is based on fair values and numerous other factors. Donated management facilities are primarily considered using comparative research of surrounding commercial facilities, including dedicated and shared square footage, amenities provided, location, etc. Event facility estimates are based upon (a) amounts specified by the donor as the typical rental/usage fee(s), (b) rental/usage fee(s) of similar venues, if known, and/or (c) management's own subjective appraisals based on comparative research. Contributed services are estimated based on prevailing labor or service rates determined by comparative research. Contributed goods valuation may include (a) amounts specified by the donor as being the wholesale selling price, (b) current retail or selling price of similar items, if known, and/or (c) management's own subjective appraisals based on research. NOTE 4 PROPERTY AND EQUIPMENT Property and equipment consists of the following: Technology Equip. & Peripherals $ 1,965 Office Furniture & Equipment 1,309 Step & Repeat 300 3,574 Less accumulated depreciation (1,114) Total property and equipment $ 2,460-7-