CULTURAL DATA PROJECT FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2014 AND PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, 2013

Transcription

1 FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2014 AND PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, 2013

2 TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2014 AND PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, 2014 INDEPENDENT AUDITORS REPORT 1 FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION 3 STATEMENTS OF ACTIVITIES 4 STATEMENTS OF FUNCTIONAL EXPENSES 6 STATEMENTS OF CASH FLOWS 8 NOTES TO FINANCIAL STATEMENTS 9

3 INDEPENDENT AUDITORS REPORT Board of Directors Cultural Data Project Philadelphia, Pennsylvania We have audited the accompanying financial statements of Cultural Data Project (a nonprofit organization), which comprise the statements of financial position as of December 31, 2014 and 2013, and the related statements of activities, functional expenses and cash flows for the year ended December 31, 2014 and the period from inception (April 1, 2013) to December 31, 2013, 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 audits. We conducted our audits 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 auditor considers internal control relevant to the entity 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 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. (1)

4 Board of Directors Cultural Data Project Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cultural Data Project as of December 31, 2014 and 2013, and the changes in its net assets and its cash flows for the year ended December 31, 2014 and the period from inception (April 1, 2013) to December 31, 2013 in accordance with accounting principles generally accepted in the United States of America. CliftonLarsonAllen LLP Plymouth Meeting, Pennsylvania March 2, 2015 (2)

5 STATEMENTS OF FINANCIAL POSITION ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 1,030,363 $ 1,397,998 Investments 3,568,100 3,840,242 Grants and Other Receivables, Current Portion 901,489 1,937,719 Prepaid Expenses 88, ,279 Total Current Assets 5,588,886 7,334,238 GRANTS AND OTHER RECEIVABLES, LESS CURRENT PORTION 467, ,446 PROPERTY AND EQUIPMENT, NET 357, ,696 SECURITY DEPOSITS 39,200 39,200 OTHER ASSETS 42,000 Total Assets $ 6,452,952 $ 8,182,580 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable $ 11,158 $ 30,946 Accrued Expenses 163,827 68,689 Deferred Revenue 61,000 Deferred Rent 39,584 45,273 Total Current Liabilities 275, ,908 NET ASSETS Unrestricted 462, ,492 Temporarily Restricted 5,714,803 7,832,180 Total Net Assets 6,177,383 8,037,672 Total Liabilities and Net Assets $ 6,452,952 $ 8,182,580 See accompanying Notes to Financial Statements. (3)

6 STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2014 Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Individual/Board Contributions $ 11,335 $ $ 11,335 Foundations (Private, Corporate & Community) Contributions 3,500 1,678,039 1,681,539 Government Contributions 223, ,794 Intermediary Contributions 55,916 55,916 In Kind Contributions 25,770 25,770 Earned Revenue 269, ,490 Investment Income 79,784 79,784 Subtotal 389,879 1,957,749 2,347,628 NET ASSETS RELEASED FROM RESTRICTIONS 4,075,126 (4,075,126) Total Support and Revenue 4,465,005 (2,117,377) 2,347,628 EXPENSES Program Services 2,532,271 2,532,271 CDP 2.X Development 342, ,501 Total Program Services 2,874,772 2,874,772 Supporting Services: Management and General 710, ,719 Fundraising 622, ,426 Total Supporting Services 1,333,145 1,333,145 Total Expenses 4,207,917 4,207,917 CHANGE IN NET ASSETS 257,088 (2,117,377) (1,860,289) Net Assets Beginning of Year 205,492 7,832,180 8,037,672 NET ASSETS END OF YEAR $ 462,580 $ 5,714,803 $ 6,177,383 See accompanying Notes to Financial Statements. (4)

7 STATEMENT OF ACTIVITIES PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, 2013 Temporarily Unrestricted Restricted Total SUPPORT AND REVENUE Individual/Board Contributions $ 6,748 $ $ 6,748 Foundations (Private, Corporate & Community) Contributions 9,418 9,443,008 9,452,426 Government Contributions 422, ,648 Intermediary Contributions 494, ,485 In Kind Contributions 239, , ,449 Earned Revenue Investment Income 21,548 21,548 Subtotal 277,208 10,803,296 11,080,504 NET ASSETS RELEASED FROM RESTRICTIONS 2,971,116 (2,971,116) Total Support and Revenue 3,248,324 7,832,180 11,080,504 EXPENSES Program Services 2,015,539 2,015,539 Supporting Services: Management and General 529, ,521 Fundraising 497, ,772 Total Supporting Services 1,027,293 1,027,293 Total Expenses 3,042,832 3,042,832 CHANGE IN NET ASSETS 205,492 7,832,180 8,037,672 Net Assets Beginning of Period NET ASSETS END OF PERIOD $ 205,492 $ 7,832,180 $ 8,037,672 See accompanying Notes to Financial Statements. (5)

8 STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED DECEMBER 31, 2014 Supporting Services Management Program and Fund Total Services General Raising Total Expenses Wages, Payroll Taxes and Benefits $ 1,642,009 $ 498,258 $ 405,518 $ 903,776 $ 2,545,785 Advertising and Marketing 313 2,478 2,478 2,791 CDP 2.X Development 342, ,501 Communications 86,476 86,476 Conferences, Meetings and Seminars 9,615 9,892 9,892 19,507 Consulting Fees and Services 468,170 34, , , ,221 Data Processing and Computer Expense 86, ,691 Legal 23,621 5,807 5,141 10,948 34,569 Membership and Subscriptions 11,290 1,916 1,916 13,206 Miscellaneous Occupancy 73,686 51,945 20,282 72, ,913 Office Expense 6,673 25, ,806 32,479 Postage 2,953 2,953 2,953 Professional Fees 4,321 3, ,350 8,671 Travel 46,966 37,372 20,815 58, ,153 Total Expenses Before Depreciation 2,802, , ,566 1,262,419 4,065,036 Depreciation 72,155 50,866 19,860 70, ,881 Total Expenses $ 2,874,772 $ 710,719 $ 622,426 $ 1,333,145 $ 4,207,917 See accompanying Notes to Financial Statements. (6)

9 STATEMENT OF FUNCTIONAL EXPENSES PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, 2013 Supporting Services Management Program and Fund Total Services General Raising Total Expenses Wages, Payroll Taxes and Benefits $ 1,358,510 $ 239,051 $ 328,179 $ 567,230 $ 1,925,740 Advertising and Marketing 9,563 4,869 4,869 14,432 Communications 41,549 31,545 1,824 33,369 74,918 Conferences, Meetings and Seminars 16,763 9,944 2,338 12,282 29,045 Consulting Fees and Services 294, ,209 80, , ,874 Data Processing and Computer Expense 19,899 5,455 1,552 7,007 26,906 Legal 11,828 1,087 1,167 2,254 14,082 Membership and Subscriptions 5,494 4, ,975 10,469 Miscellaneous ,166 Occupancy 71,987 20,332 17,585 37, ,904 Office Expense 22,219 6,275 5,427 11,702 33,921 Postage 1, ,112 1,880 3,155 Professional Fees 46,792 30,918 6,082 37,000 83,792 Travel 49,608 5,031 30,410 35,441 85,049 Total Expenses Before Depreciation 1,951, , , ,352 2,944,453 Depreciation 64,438 18,200 15,741 33,941 98,379 Total Expenses $ 2,015,539 $ 529,521 $ 497,772 $ 1,027,293 $ 3,042,832 See accompanying Notes to Financial Statements. (7)

10 STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014 AND PERIOD FROM INCEPTION (APRIL 1, 2013) TO DECEMBER 31, CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ (1,860,289) $ 8,037,672 Adjustments to Reconcile Change in Net Assets to Net Cash Provided (Used) by Operating Activities: Depreciation 142,881 98,379 In Kind Contribution of Property and Equipment (411,178) Net Realized and Unrealized Loss on Investments ,558 Decrease (Increase) in: Grants and Other Receivables 950,556 (2,319,165) Prepaid Expenses 69,345 (158,279) Security Deposits (39,200) Other Assets 42,000 (42,000) Increase (Decrease) in: Accounts Payable (19,788) 30,946 Accrued Expenses 95,138 68,689 Deferred Rent (5,689) 45,273 Deferred Revenue 61,000 Net Cash Provided (Used) by Operating Activities (524,252) 5,323,695 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property and Equipment (114,931) (72,897) Proceeds from Sale of Investments 350,000 Purchase of Investments (78,452) (3,852,800) Net Cash Provided (Used) by Investing Activities 156,617 (3,925,697) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (367,635) 1,397,998 Cash and Cash Equivalents Beginning of Period 1,397,998 CASH AND CASH EQUIVALENTS END OF PERIOD $ 1,030,363 $ 1,397,998 SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES In Kind Contribution of Property and Equipment $ $ 411,178 See accompanying Notes to Financial Statements. (8)

11 NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Organization Originally founded as a program of The Trusts, the Cultural Data Project, a.k.a., CDP, (the Organization ) was founded in 2004 by a group of visionary public and private grantmakers and arts advocates in Pennsylvania concerned about the lack of reliable, comprehensive data on the state s nonprofit arts and culture sector. Since then, the CDP has expanded from Pennsylvania to 13 states, plus the District of Columbia, and is changing the face of the arts and cultural sector in the United States by: (1) helping arts and cultural organizations improve their financial and operational capacity in order to serve their constituents better; (2) fueling fact based learning, knowledge development, and exchange among the cultural sector, advocates, policymakers, and civic leaders; (3) telling the story of the sector s assets, contributions, needs, and economic impact more accurately; and (4) helping funders to plan for and evaluate their individual and collective grantmaking activities more effectively. The CDP continues to grow as a resource nationwide, with participation by 230 public, private, corporate, and community based grantmakers, and more than 15,000 arts and cultural organizations registered in 46 states. On April 1, 2013, the CDP became an independent 501(c)(3) nonprofit organization with a new statement of mission: To empower the nonprofit arts and cultural sector with high quality data and resources in order to strengthen its vitality, performance, and public impact. CDP accomplishes this mission by: (1) building critical infrastructure for the sector and being a trusted source of highquality data and knowledge that advances cultural initiatives; (2) equipping arts and cultural organizations to collect, learn from, and use data effectively; and (3) creating a national partnership and platform for cultural data, dedicated to collective learning, leadership, and action. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets and revenues, expenses, gains and losses 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 Net assets that are not subject to donor imposed stipulations. Annual corporate and individual contributions are generally available for unrestricted use in the related year unless specifically restricted by the donor. Unconditional promises to give are recorded as revenue when promised. (9)

12 NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Presentation (Continued) Temporarily Restricted Net Assets Net assets subject to donor imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. Permanently Restricted Net Assets Net assets subject to donor imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by the Organization. The Organization does not presently have permanently restricted net assets. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets, unless their use is restricted by explicit donor stipulation or by law. When a donor stipulation expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Organization considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. The Organization has, periodically throughout the year, maintained balances in various operating and money market accounts in excess of federally insured limits. Grants and Contributions Grants and contributions are recognized as either unrestricted or temporarily restricted revenue in the period received or unconditionally promised. Grants and contributions that are temporarily restricted by the donor will remain in temporarily restricted revenue and are reported as increases in unrestricted net assets (net assets released from restrictions) when time restrictions expire or expenses are incurred according to the grant agreement terms. (10)

13 NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Grants and Other Receivables Receivables are stated at net realizable value. The Organization provides an allowance for bad debts using the allowance method, which is based on management judgment considering historical information. Accounts past due are individually analyzed for collectibility. Accounts for which no payments have been received are individually assessed for collectibility and are written off or sent to collections. When all collection efforts have been exhausted, the accounts are written off against the related allowance. At December 31, 2014 and 2013, an allowance for bad debts was not warranted. Donated Services 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. In kind donations are recorded as contributions at fair value at the date of donation. Property and Equipment It is the Organization s policy to capitalize property and equipment acquisitions over $1,000 and a minimum estimated useful life of three years. Property and equipment purchased by the Organization are carried at cost. Donated property is recorded at its estimated fair value at the date of receipt. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions over the useful lives of the donated or acquired assets by reclassifying temporarily restricted net assets to unrestricted net assets. Maintenance and repairs, which do not improve or extend the life of the respective assets, are charged to expense as incurred. Depreciation is recorded using the straight line method over the estimated useful lives of the assets. Furniture and equipment are depreciated over three or five years, software is depreciated over three years, and leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the asset. Fair Value Measurements The Organization measures fair value using a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. (11)

14 NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair Value Measurements (Continued) The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The fair value hierarchy consists of three levels of inputs that may be used to measure fair value as follows: Level 1 Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Organization has the ability to access. Level 2 Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Investments Investments are stated at fair value as provided by external investment managers or quoted market prices. Investments acquired by gift are recorded at the fair value on the date the gift was received. Investment income restricted by donors is reported as an increase in temporarily restricted net assets. Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the value of investments in the near term could materially affect the amounts reported in the statement of financial position. Accrued Vacation Upon termination of employment, employees are entitled to be paid for unused vacation time, in accordance with the Organization's policies. Accordingly, at fiscal year end, the Organization recognizes a liability for the amount that would be paid if employees with such unused vacation were to leave. At December 31, 2014 and 2013, the accrued vacation obligation was $27,158 and $27,431, respectively. (12)

15 NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes The Organization was incorporated as a Pennsylvania not for profit corporation and is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and from state and local taxes under comparable laws. Donors may deduct contributions to the Organization as provided by the Internal Revenue Code. The Organization follows the income tax standard for uncertain tax positions. The application of this standard has no impact on the Organization s financial statements. The Organization s tax returns for 2013 are subject to review and examination by federal, state, and local authorities. Functional Allocation of Expenses Expenses are charged to each program based on direct expenditures incurred. Any expenditures not directly chargeable have been allocated among program and supporting services classifications on the basis of time records and on estimates made by the Organization s management. Subsequent Events In preparing these financial statements, the Organization has evaluated events and transactions for potential recognition or disclosure through March 2, 2015, the date the financial statements were available to be issued. NOTE 2 GRANTS AND OTHER RECEIVABLES Grants and other receivables are summarized as follows at December 31: Grants Receivable: Transition $ 334,000 $ 617,000 National 350 Arizona 80,000 90,000 California 302,000 2,500 DC 15,000 Illinois 67,500 Michigan 60, ,220 Minnesota 25,000 New Jersey 100, ,000 New York 1,000,000 Ohio 12,500 Pennsylvania 230, ,500 Rhode Island 25,257 Texas 15,000 50,000 Other Receivables 155, Total Grants and Other Receivables $ 1,384,117 $ 2,331,829 (13)

16 NOTES TO FINANCIAL STATEMENTS NOTE 2 GRANTS AND OTHER RECEIVABLES (CONTINUED) Grants and other receivables have been measured at fair value using a discount rate of 3.32% for grants and other receivables to be received in more than one year. Grants and other receivables included the following at December 31: Receivable in Less than One Year $ 901,489 $ 1,937,719 Receivable in One to Five Years 482, ,110 Total Grants and Other Receivables 1,384,117 2,331,829 Less: Discounts to Present Value 15,508 12,664 Grants and Other Receivables, Net $ 1,368,609 $ 2,319,165 NOTE 3 INVESTMENTS Investments consisted of the following at December 31: 2014 Fair Unrealized Cost Value Gain (Loss) Mutual Funds: Short Term Bond Fund $ 2,563,154 $ 2,553,416 $ (9,738) Moderate Growth Fund 267, ,625 10,886 Short Term Bond Index Fund 735, , Total Investments $ 3,566,031 $ 3,568,100 $ 2,069 Fair Unrealized Cost Value Gain (Loss) Mutual Funds: Short Term Bond Fund $ 2,516,032 $ 2,506,674 $ (9,358) Moderate Growth Fund 258, ,226 1,902 Short Term Bond Index Fund 1,078,444 1,073,342 (5,102) Total Investments $ 3,852,800 $ 3,840,242 $ (12,558) (14)

17 NOTES TO FINANCIAL STATEMENTS NOTE 3 INVESTMENTS (CONTINUED) The components of total investment income from cash and investments for the year ended December 31, 2014 and the period from inception (April 1, 2013) to December 31, 2013 are as follows: Interest and Dividend Income $ 80,378 $ 34,106 Realized Loss (2,663) Unrealized Gain (Loss) 2,069 (12,558) Total Investment Income $ 79,784 $ 21,548 NOTE 4 FAIR VALUE MEASUREMENTS The following tables present information about the Organization s assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 and indicates the fair value hierarchy of the valuation techniques utilized by the Organization to determine such fair value Level 1 Level 2 Level 3 Total Mutual Funds: Short Term Bond Fund $ 2,553,416 $ $ $ 2,553,416 Moderate Growth Fund 278, ,625 Short Term Bond Index Fund 736, ,059 Total Investments $ 3,568,100 $ $ $ 3,568, Level 1 Level 2 Level 3 Total Mutual Funds: Short Term Bond Fund $ 2,506,674 $ $ $ 2,506,674 Moderate Growth Fund 260, ,226 Short Term Bond Index Fund 1,073,342 1,073,342 Total Investments $ 3,840,242 $ $ $ 3,840,242 (15)

18 NOTES TO FINANCIAL STATEMENTS NOTE 5 PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31: Furniture and Equipment $ 535,295 $ 420,364 Leasehold Improvements 63,711 63,711 Total 599, ,075 Less: Accumulated Depreciation 241,260 98,379 Total Property and Equipment, Net $ 357,746 $ 385,696 Depreciation expense totaled $142,881 for the year ended December 31, 2014 and $98,379 for the period from inception (April 1, 2013) to December 31, NOTE 6 PENSION PLAN The Organization has an employee savings plan that allows eligible employees to defer a percentage of pretax annual compensation subject to certain Internal Revenue Code limitations. All employees are eligible to participate in the plan as of their date of hire. The Organization matches 100% of employee contributions up to the first 3% contributed by the employee and 50% of employee contributions up to an additional 2% contributed by the employee over and above the first 3% contributed by the employee. The Organization s contributions to the employee savings plan for 2014 and 2013 were $69,820 and $51,645, respectively. NOTE 7 TEMPORARILY RESTRICTED NET ASSETS Temporarily Restricted Net Assets consisted of the following at December 31: Net Assets Due to Release in 2014 $ $ 6,036,045 Net Assets Due to Release in ,133,607 1,554,896 Net Assets Due to Release in , ,239 Net Assets Due to Release in ,785 $ 5,714,803 $ 7,832,180 (16)

19 NOTES TO FINANCIAL STATEMENTS NOTE 7 TEMPORARILY RESTRICTED NET ASSETS (CONTINUED) Temporarily Restricted Net Assets by contributor type consisted of the following at December 31: Corporate Foundation (1) $ 5,000 $ 46,750 Government: State (5) 48, ,139 Government: Local (3) 2,620 9,114 Private Foundation (23) 3,697,027 4,406,564 Community Foundation (8) 1,604,186 2,385,224 Intermediary (3) 83, ,234 In Kind (1) 273, ,155 $ 5,714,803 $ 7,832,180 Amounts in parenthesis denote number of unique grantors for NOTE 8 COMMITMENTS The Organization has noncancellable operating leases for office space and equipment. Certain lease agreements provide for escalating payments over the lease term. Rental expense is recognized on a straight line basis and amounted to $145,913 for the year ended December 31, Rental expense recognized for the period from inception (April 1, 2013) to December 31, 2013 amounted to $108,023. The cumulative difference between rental expense recognized and rental payments resulted in a deferred rent liability of $39,584 and $45,273 as of December 31, 2014 and 2013, respectively. Minimum future rental payments under noncancellable operating leases having original terms in excess of one year as of December 31, 2014 are as follows: Year Ending December 31, Amount 2015 $ 154, , , ,152 Total $ 575,572 During 2014, the Organization entered into one time commitments for consulting services related to multi year business transformation totaling $630,275. NOTE 9 EMPLOYMENT AGREEMENTS The Organization is obligated under employment agreements with its President/Chief Executive Officer through March 31, 2015 and Chief Operating Officer/Chief Financial Officer through February 24, (17)