Ae 2010 Accounting Presentation

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Created in 2008 to introduce the board to accounting practices and organization's financials.

Updated in 2010.

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Ae 2010 Accounting Presentation

  1. 1. Altered Esthetics <ul><li>Accounting Intro - our Principles & Practices </li></ul>
  2. 2. Our mission Altered Esthetics works to sustain the historical role of artists as a voice of society through our exhibits, events, services, workshops and programs.
  3. 3. Our guiding principles - Sustainable - Transparent - Educational - Realistic - Strategic
  4. 4. Sustainability - Create a sustainable infrastructure, one that can support growth and development
  5. 5. Transparency (From the Minnesota Council of Nonprofits' “Principles and Practices of Nonprofit Excellence”) Nonprofits have an ethical obligation to their constituents and the public to conduct their activities with accountability and transparency. Nonprofits should regularly and openly convey information to the public about their mission, activities, accomplishments and decision-making processes. Information from a nonprofit organization should be easily accessible to the public and should create external visibility, public understanding and trust in the organization.
  6. 6. Transparency at Ae moving towards the following goals: - Availability of budget online - Availability of 990 forms online and/or audited annual financial statement - Emailing information to artists - A list of our guiding financial principles (bi-monthly budget review, etc.) on website
  7. 7. Educational - Educate the board about our processes (We don’t want a rubber-stamp board!) - Educate the public about the critical role arts play within a healthy economy - Exchange: tools needed to do jobs well, but that tool comes with expectations
  8. 8. Facts: Artists in Minnesota - generate $205.2 million annually in statewide economic activity. This spending supports 5,937 full-time equivalent jobs, generates $171.8 million in household income to Minnesota’s residents, and delivers $24 million annually in local and state government revenue. (Arts Impact Survey, 2005) Between Minnesota’s individual artists, arts and culture organizations and for-profit arts industries, Minnesota benefits from well over a billion dollars in annual economic activity supporting over 86,340 jobs. (Arts Impact Survey, 2005) In Minnesota, Art is an Investment Every dollar the state invests in art — by way of the State Arts Board or the Regional Councils or any other way — guarantees a return on investment of $11 (McKnight Foundation, Minnesota Citizens for the Arts)
  9. 9. Realistic A budget is a guideline. It is an educated guess for planning purposes, not a dogma to be used for control purposes. Budgets allow us to plan, implement, and when used appropriately - flex with the changing needs or emergencies of an organization.
  10. 10. Strategic Strategic planning allows us to consider the long-term goals and needs of the organization while also taking care of the day-to-day. Strategic planning in terms of accounting and budgets allows us to consider the overall and long term financial health of the organization, and plan for larger, mission-driven goals.
  11. 11. Where we are - Monthly Budget Income Exhibition Fees $900 Door Donations $200 Monthly Donations $200 Sales $200 Sponsorships $100 Spring Fundraiser (averaged) $400 Fall Appeal (averaged) $400 Fall Fundraiser (averaged) $400 TOTAL: $2,800 Expenses Rent $950 Buildout $100 Insurance $100 Phone/Internet $100 Credit /Loan payments $700 Promotions $350 Office Supplies $100 Misc Annual Expenses (averaged) $325 Payments $75 TOTAL: $2,800
  12. 12. Annual Budget Expenses Monthly Annual Income Monthly Annual Rent $950 $11,400 Exhibition Donations $900 $10,800 Buildout/storage $100 $1,200 Door Donations $200 $2,400 Insurance $100 $1,200 Monthly Donations $200 $2,400 Phone/Internet $100 $1,200 Sales $200 $2,400 Credit /Loan payments $700 $8,400 Sponsorships $100 $1,200 Promotions $350 $4,200 Spring Fundraiser (averaged) $400 $4,800 Office Supplies $100 $1,200 Fall Appeal (averaged) $400 $4,800 Misc Annual Expenses (averaged) $325 $3,900 Fall Fundraiser (averaged) $400 $4,800 Artist Payments $75 $900 TOTAL: $2,800 $33,600 TOTAL: $2,800 $33,600
  13. 13. Major Expenses - Cost of space - Utilities - Start-up Loan Repayment - Supplies - Promotions
  14. 14. Income/Revenue Streams - Artist Exhibition Fees (Fees for services) - Donations (cash, ongoing, annual appeal) - Sponsorships - Fall and Spring Fundraiser events - Grants (minimal) - Sales
  15. 15. Where we have been Expenses Income Difference 2004 16,900 2,400 -14,500 2005 16,500 4,800 -11,700 2006 24,600 16,000 -8,600 2007 37,310 26,400 -10,910 2008 32,415 34,565 2,150 2009 28,737 30,354 1,617 2010 34,000 34,000 -
  16. 16. Where we are going in 2010 - began individual breaking down budgets for programs/committees - 2011 Individual budgets for committees/programs - Loan repayment is a big goal (2014 is the goal ) - Future (having a 6 mo - 1 year emergency reserve)
  17. 17. How we’ll get there - Strategically and Transparently! - Bimonthly budget review (now Monthly!) - Using guiding principles - Annual budget review and approval
  18. 18. Next month: We'll review basic accounting forms - Income and Expense / Profit and Loss - the Balance Sheet - Cashflow Budgets
  19. 19. Questions?

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