<p style=text-align: center;><span style=text-decoration: underline;>Financial Report for the Nine Months Ended June 30 2021</span></p><p style=text-align: left;><span style=text-decoration: underline;><span style=text-decoration: underline;>Financial Results v. Budget</span></span></p><p></p><p>For the nine months ended June 30 2021 the DignityUSA (DUSA) <strong>Operating Fund</strong> reported a <strong>net operating loss</strong> (excluding the Leadership Stabilization Fund - LSF) of <span style=color: #ff0000;>$6577</span> versus a budgeted <span style=color: #ff0000;>loss</span> of <span style=color: #ff0000;>$44381.</span> Total <strong>income</strong> (excluding the LSF) of <strong>$206006</strong> was <strong>$18153</strong> over budget. The positive variance is primarily attributed to higher bequest income than budgeted ($20000 versus $10000) in addition to smaller favorable variances for the Advent Appeal ($2754) Investment Income ($2683) and Grant income ($2000).</p><p></p><p>Total <strong>expenses</strong> of <strong>$212582</strong> were <strong>$19651</strong> <strong>under</strong> budget. This result reflected slightly lower compensation costs for staff and contractors (<strong>$4366</strong>). Spending on the Leadership Academy has not begun as the start of the program was delayed due to the COVID pandemic and has been re-scheduled for FY 2022 (savings of <strong>$7938</strong>). Caucus and Committee initiatives have also been deferred for a similar reason (<strong>$6111</strong> unspent). Finally travel costs for staff and the Board of Directors have not been incurred as the May 2021 Board meeting was conducted virtually and other staff travel has not occurred because of COVID restrictions (savings of <strong>$6700</strong>).</p><p></p><p>Offsetting the <strong>net operating loss</strong> of <span style=color: #ff0000;>$6577</span> were<strong> unrealized gains</strong> of <strong>$29700</strong> from DUSAs equity/bond portfolio due to the strong rebound in the securities markets which began in the fourth quarter of calendar 2020 as the economy began its recovery from the COVID-related shutdowns.</p><p></p><p>During the nine-month period spending on <strong>Jubilee Initiatives</strong> totaled <strong>$8645</strong> which was in-line with the budget. These costs relate to the Digital Engagement Strategy and Website Resource Development.</p><p></p><p>Apart from the <strong>Operating Fund</strong> budget DUSA recorded collections of <strong>$114705</strong> against pledges to the <strong>Leadership Stabilization Fund (LSF)</strong>. This amount has been <strong>included</strong> in <strong>total net operating income</strong> but was not part of the original budget.</p><p></p><p>Total equity at June 30 2021 stands at <strong>$537360</strong>. Of this sum <strong>$195767</strong> is <strong>unrestricted</strong> <strong>$114705</strong> represents the <strong>LSF</strong> collections and <strong>$30000</strong> represents funds received to specifically support the <strong>Leadership Academy</strong> (deferred to FY 2022) and the<strong> Anti-Conversion Therapy</strong> project (which will be completed before the close of FY 2021). <strong>Restricted</strong> equity totals <strong>$196887</strong>. The largest components are the <strong>Jubilee Initiatives ($110945) Bequests ($39513)</strong> and the <strong>Leadership Fund ($20327)</strong>.</p><p></p><p><strong>Cash and Investments</strong> total <strong>$538299</strong>. This amount was held as follows:</p><p></p><ul><li>Operating cash - <strong>$120988</strong></li><li>Equity/bond portfolio -<strong> $266805</strong> (Note that the Board in July authorized the investment of an additional sum of <strong>$100000</strong> into this account)</li><li>Broker Insured Bank Deposit Program - <strong>$150507</strong></li></ul><p></p><p>It is appropriate to note that the dividend/interest yield on the equity/bond portfolio is currently <strong>4.5%</strong> (versus a goal of 3%) and the overall time-weighted annual return on the portfolio since inception in October 2017 is <strong>7.02%</strong> (versus a goal of <strong>5%</strong>).</p><p></p><p><span style=text-decoration: underline;>Leadership Stabilization Fund</span></p><p></p><p>The organization launched a multi-year fund raising campaign in October 2020 to support the funding of the Executive Director position over the next four years due to the <strong>loss</strong> of <strong>Arcus Foundation</strong> grant funding and recurrent<strong> Operating Fund losses</strong> as a result thereof. The goal is to raise <strong>$500000</strong> from chapters and members to bridge the gap in income until it can be replaced by a combination of broader donor support new grant sources planned giving and other income.</p><p></p><p>We are very pleased to report that DUSA has received pledges to date of <strong>$371100</strong> or over <strong>74%</strong> of our goal. We have received collections toward these pledges amounting to <strong>$114705</strong> to date. Of the pledge &nbsp;total <strong>$213000</strong> has been committed from chapters and <strong>$158100</strong> from member/donors.</p><p></p><p>Later this year we will reach out to remaining chapters and members to consider joining in this campaign to the extent financially feasible to bring us closer to the initial goal.</p><p></p><p><span style=text-decoration: underline;>Other Matters</span></p><p></p><p>Our auditors have completed their <strong>review</strong> for FY 2020 and have issued their report. In addition our Federal Form 990 has been filed with the IRS. The latter should soon be available on sites such as Charity Navigator. This source has also given DUSA a 100 Encompass Rating through FY 2019.</p><p></p><p>Linda Roberts</p><p>Treasurer</p><p>July 24 2021</p><p></p>