Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[childoftheking]

The 2013 990 is up at Guidestar. The auditor's report isn't included there unless I missed something. Let me know if it is there and I did miss it. The 990 for 2013 doesn't seem to be available on the Illinois Charities site at all. Is 3ABN not filing with Illinois anymore or are they only filing certain years of their choosing? Are they not filing or making available as complete reports as in the past? If  not, why not? Personally I find the section on Donor restricted funds in the auditor's reports for the last couple of years to be concerning. The auditor's report for 2013 is publicly available just not on Guidestar or Illinois AG.

[Bob Pickle]

When I last talked with the IL AG's office, they were way behind getting everything up, but it did seem pretty odd that they didn't have the reports up from the last few years.

What do you see a problem with in the Donor restricted fund section?

[childoftheking]

To quote: "The Organization has not maintained an appropriate amount of cash and cash equivalent to comply with donor imposed restrictions. As of December 31, 2013, remaining contributions designated for long-term purposes, or received with donor imposed restrictions limiting their use to special projects totaled $1,851,572.50. The Organization's cash balance as of December 31, 2013, which has been reclassified to Cash Restruicted to Investment in Capitol Assets in the Statement of Financial Posisiton totals $1,177,378.99. This shortfall of $674,193.51 resulted from the Organization's use of these funds for current operations."

If I remember correctly there have been shortfalls the previous two years. I do not know if there was also a shortfall in 2014. And didn't they previously have to assign buildings or other assets to cover obligations? This trend concerns me.

[Daryl Fawcett]

Seems like their donations have dwindled and are continuing to dwindle.

[childoftheking]

Is that a statement or a question, Daryl? In other words are you drawing a conclusion from what I quoted, are you asking me if donations have dwindled or are you stating it as a fact from reading the last few 990's yourself?

Because even if donations are adequate, even if 3ABN has been under pressure to spend on various presumably needed things, they have a moral (and possibly legal) obligation to comply with donor imposed restrictions.

I am concerned that the "long term purposes" may be refering to Charitable Gift Annuities and other forms of investments that are supposed to be safe.

[childoftheking]

And this was from the 2011 auditor's report:

16. DONOR RESTRICTED FUNDS
The Organization has not maintained an appropriate amount of cash and cash equivalents
to comply with donor imposed restrictions. As of December 31, 2011, remaining
contributions designated for long-term purposes, or received with donor imposed restrictions
limiting their use to long-term purposes totaled $1,313,126.72. The Organization's cash
balance as of December 31, 2011, which has been reclassified to Cash Restricted to
Investment in Capital Assets in the Statement of Financial Position, totals $502,867.40.
This shortfall of $810,259.32 resulted from the Organization's use of these funds for current
operation

The 2012 one is similar

[childoftheking]

2012: "The Organization has not maintained an appropriate amount of cash and cash equivalents to comply with donor imposed restrictions. As of December 31, 2012, remaining contributions designated for long-term purposes, or received with donor imposed restrictions  limiting their use to special projects totaled $1,651,430.40. The Organization's cash balance as of December 31, 2012 which has been reclassified to Cash Restricted to Investment in Capitol Assets in the Statement of Finanacial Position, totals $378,477.48. This shortfall of $1,272,952.92 resulted from the Organization's use of these funds for currrent operations."

2014 has not been filed yet.

Remember they have not defaulted on anything yet. The simply need to make up the shortfall. They need to have liquid assets (cash or cash equivalents) available to meet their obligations in a timely manner. Real estate and other hard assets may take time to turn into cash or may not find buyers at all.

[Bob Pickle]

If I remember correctly there have been shortfalls the previous two years. I do not know if there was also a shortfall in 2014. And didn't they previously have to assign buildings or other assets to cover obligations?

I think they did that around the time the IRS was coming after them.

I am concerned that the "long term purposes" may be refering to Charitable Gift Annuities and other forms of investments that are supposed to be safe.

I would think that would be true.

So the shortfall declined between Dec. 2012 and Dec. 2013?

Real estate and other hard assets may take time to turn into cash or may not find buyers at all.

And that could be assuming the real estate sells for 100% of what its value is on the books, which may or may not reflect current market conditions.

[Daryl Fawcett]

My comment was more of an assumption/question more than a statement.

Is that a statement or a question, Daryl? In other words are you drawing a conclusion from what I quoted, are you asking me if donations have dwindled or are you stating it as a fact from reading the last few 990's yourself?

Because even if donations are adequate, even if 3ABN has been under pressure to spend on various presumably needed things, they have a moral (and possibly legal) obligation to comply with donor imposed restrictions.

I am concerned that the "long term purposes" may be refering to Charitable Gift Annuities and other forms of investments that are supposed to be safe.

[childoftheking]

"So the shortfall declined between Dec. 2012 and Dec. 2013?"
And it is possible the the shortfall has already been taken care of in 2014 however that won't be known until this time next year,Bob.

"My comment was more of an assumption/question more than a statement."
Well if you thought that was what I was implying, I wasn't, Daryl, I don't think that declining donations is the problem.

[Bob Pickle]

What do you think is the problem?

[childoftheking]

I have my own opinion but what was done in the past is done and can't be undone. Second guessing or finger pointing now will only make the accuser feel smug and I don't want to go there. No one from outside "the Organiztion" knows all the details I am sure. Maybe not even those inside "the Organization" know them. We are all sinners and we all need to repent and humble ourselves before the Lord and try to do our best. Sometimes we fail.

So I can only continue to follow their disclosures and I can hope and pray the they will be honerable and wise.