Financial summary for 2018
An important responsibility of nonprofit organizations is to summarize their financial status. Donors should expect that their generous contributions are used as effectively as possible, for ultimately accomplishing that organization’s mission.
Most of 2018 was focused on legal and regulatory compliance. Compliance needs for nonprofit organizations operating in more than one US state, such as our own, are very complex. Consultation with experts is necessary to make sure everything is done correctly.
We have been working closely with Harbor Compliance to comply with all relevant regulations to the best of our ability and understanding. This has involved incorporation paperwork, application for determination of 501(c)(3) status, assistance for registering our corporation as a “foreign” entity in relevant states outside Massachusetts, and registering for fundraising solicitation in relevant states. Many states require registration, even if the only interaction with residents is via a donation button on our website.
This has been an important set of expenses to make sure we start off on the right foot. Even so, it wouldn’t be fair to ask donors to pay for this – so, the cofounders have been shouldering these expenses instead. We will continue to cover as many overhead costs as we can, so that our donors’ money is used for advancing our mission as directly as possible.
The remaining costs were largely associated with developing infrastructure, such as servers, websites, and communication methods. With the exception of our main public-facing website, most of our web resources serve internal functions.
Income through 2018 was $10,020.63, compared to $8,508.01 in expenses. We ended the year 2018 with $1,512.62 in cash, and liabilities were zero.
This information was used in submitting our first Form 990-N, corresponding to 2018 – which, by the way, we filed several weeks early!
We currently use a cash basis accounting method, with the calendar year as our financial year. We are currently not required to provide audited financial data.