Fiscal Year 2021 Financial Results & Fiscal Year 2022 Budget
For the fiscal year (FY) ended September 30, 2021 the DignityUSA (DUSA) Operating Fund reported a net operating income (before investment gains) of $76,798 compared to a budgeted loss of $50,900. Total income of $389,608 was $112,158 over budget. Specifically, recorded income from the Leadership Stabilization Fund (LSF) amounted to $98,038. This fund was not budgeted. The multi-year fund-raising campaign was initiated by the Board of Directors in October 2020 to address the budgeted deficit driven, in large part, by significantly reduced grant income in recent years. The income results were also boosted by bequests totaling $40,000 compared to the budgeted amount of $10,000. On the negative side targeted grant income of $20,000 was not achieved as grant-funding opportunities did not arise in this pandemic dominated period.
Total expenses of $312,810 ran $15,540 under budget. The driving factors for these savings were the Leadership Academy - $12,700 (postponed to FY 2022); Caucus and Committee Initiatives - $8,150; and Travel - $9,004. These activities were also canceled or postponed as a result of the COVID-19 restrictions.
The organization experienced unrealized gains of $19,516 on its investment portfolio resulting in final net income of $96,314. This was a consequence of securities markets boosted by a gradual economic recovery as the restrictions imposed from the pandemic began to ease.
During FY 2021 approximately $10,200 was spent from the Jubilee Initiatives Fund for the digital engagement strategy and website resource development.
During FY 2021 DUSA also received $4,650 in donations to the Nickie Valdez Scholarship Fund, which will be utilized to support attendance at DUSA’s National Conference.
Total equity at September 30, 2021 rose to $497,614, of which about $290,000 is unrestricted and $208,000 is restricted or designated. In addition, the entity has $285,500 in deferred income from the LSF that will be recorded as income over the next three years to support the Executive Director position.
The restricted or designated funds include the Jubilee Initiatives Fund at $111,600; the Bequest Fund at $45,400; the Leadership Fund at $20,800; the Pax Nidorf Fund at $14,500 and various scholarship funds totaling $15,700.
At year-end, total funds were invested as follows:
Operating cash - $103,000
Stock equities and bond funds - $356,600
Broker-held deposits - $50,500
The current dividend/interest yield on the equity/bond portfolio is 4.82% versus our policy goal of 3%. In addition, the overall time-weighted annual return on the portfolio since inception (four years) is 5.91% versus the goal of 5%. This includes realized and unrealized gains and losses.
The Leadership Stabilization Fund (LSF) that was launched a year ago to support the Executive Director position over a four-year period has been very successful. Pledges to date have totaled approximately $384,000 versus a goal of $400,000 (and a stretch goal of $500,000). Of the total pledged to date, $213,000 or 55.5% has been committed or collected from chapters and $170,600 or 44.5% from member/donors. We are in the process of reaching out to the remaining chapters and members to encourage them to join in this campaign to the extent financially feasible to bring us closer to our respective goals.
Fiscal Year 2022 Budget
The Operating Fund budget for FY 2022 projects a modest net income of $8,355 on total income of $388,100. Note that this result includes income of $103,500 from the LSF mentioned above. Although total income is comparable to FY 2021, there are several key differences. Specifically, in FY 2021 bequests totaled $40,000 but none are known nor budgeted for FY 2022. In addition, ongoing donations and dues are forecast to be about $7,000 lower than last year. Also the organization had $10,000 in registration income for the Virtual Gathering held in September that will not be held in FY 2022. For FY 2022 there will be a National Conference which will be the subject of a separate budget that was approved by the Board in November.
Offsetting some of these lower revenues are projected grants of $20,000; higher gifts-in-kind of $22,500 (as in-person Board meetings are resumed); higher investment income - $17,200 versus $9,000 in FY 2021; and special event income of $6,000 to be raised at the National Conference (e.g. raffle).
Budgeted expenses total approximately $380,000 compared to $313,000 in FY 2021. Staff and contractor compensation is forecast to total $241,000 or about $14,500 higher than FY 2021 based on a full staffing complement of two full-time and two part-time staff. Travel expenses, including Board travel expenses which are donated back to DUSA, are budgeted to total $41,000 versus a pandemic caused low of $5,000 in FY 2021. The FY 2022 budget also includes $13,650 for the Leadership Academy to be held proximate to the National Conference (and which is funded from a grant from the Carpenter Foundation received in FY 2020).
In addition, the Board decided to vote on projects to be funded from the Jubilee Initiatives Fund on a project-by-project basis as those are identified.
November 8, 2021