1. SOROPTIMIST INTERNATIONAL OF THE AMERICAS
Finance Presentation
Kathy King
Secretary/Treasurer
July 2018
Slide 1
Good morning Soroptimists! . Today, it is my pleasure to share with you our financial picture. We will start with SIA’s process for financial review and oversight, move onto our FY16/17 financial results and then end with our financial strategy to serve even more women and girls.
45th Biennial Convention July 30-August 2, Yokohama, Japan

2. Investment Advisor/Managers
FINANCIAL OVERSIGHT
SIA Board of Directors
Auditor
Investment Advisor/Managers
Headquarters
Executive Director
& Staff
PANO
Slide 2
I think it is important for members and donors to know that the financial oversight of our organization is multi-layered meaning there are a number of financial professionals who review and scrutinize the financial records and practices of our organization.
The Soroptimist International of the Americas Board of Directors serve as the Finance Committee and I serve as Secretary/Treasurer of SIA. Together, our job is to monitor the effectiveness and efficiency of our operation and make sure that your dues and all donor contributions are used as intended. We do this by reviewing quarterly monitoring reports, the annual audit report and tax return, and by approving the annual budget. Additionally, I review the check register each month along with the expense reports of our Executive Director.
The Board also has assistance from our outside professional investment advisor and money managers as well as our professional accounting and auditing firm.
These different levels of review help to monitor and ensure our organization is financially sound. They are also vital to making the best use of our financial resources, both operating and reserves, to administer our programs and to provide member services.
In addition to an investment advisor and audit firm, our headquarters is accredited by the Pennsylvania Association of Non-Profit Organizations, (PANO). PANO conducts a rigorous evaluation and review of all of our operations including our financial operations to determine if our organization meets their rigorous standards of excellence.
With these various layers of financial oversight – Board, Investment Manager, audit firm and PANO – you can rest assured, your dues and donations are being used in a fiscally appropriate manner and within state and federal government requirements.

3. STATEMENT OF FINANCIAL POSITION
August 31, 2017
Assets
Liabilities and Net Assets
Cash and Cash Equivalents
3,700,755
Accounts Payables
371,392
Investments
7,972,020
Deferred Revenue
1,922,458
Fixed Assets, net
1,421,066
2,293,850
Other Assets
565,436
Net Assets
11,365,427
Total Liabilities
Total Assets
13,659,277
& Net Assets
Slide 3
With that reassurance, let us look at the financial position of SIA for the last fiscal year. Headquarters has a strong financial position with assets totaling over $13.6 million and a low debt to equity ratio. In addition, our liquidity is high at $3.7 million. The August 31, 2017 Annual Report and audited financial statements are available on our website at The Annual Report also includes details of the global impact of our organization-wide programs – our Dream Programs, and our local impact of club projects supported by Soroptimist Club Grants for Women and Girls.

4. TOTAL ASSETS FY .
Slide 4
This chart shows the change in our total assets over the last ten fiscal years. Our Assets consist of mainly Cash, Investments and Fixed Assets. Over these 10 years, the fluctuation in total assets was due primarily to the change in the stock market value of our investment portfolio with a notable decrease between 2008 and 2009 due to the Great Recession during that period.

5. MARKET VALUE RESTRICTED RESERVE FUND.
Slide 5
The restricted reserve account is an endowment fund, meaning that the principal is restricted and the investment gains and income are available for use for our operations. The restricted reserves make up about 70% of our total investment balance. These funds have provided us with critical investment income during a time of declining membership and served as financial support for the increased need of our programs. As of August 31, 2017, the total value of our restricted account was $7.6 million dollars. The values shown in this graph represent our investment returns and the utilization of our reserve funds through our spending policy. The value of the investments shown here have remained relatively the same over the last few years with the noted exceptions of 2009 which previously stated was a very bad investment year globally and 2014 which was a relatively good investment year. . The ongoing reality of a more volatile investment environment, reflective of our global economy, is challenging our ability to completely rely on our investment returns to fund our global programs.

6. STATEMENT OF ACTIVITIES FY 16/17
Revenue
Dues
2,376,396
Contributions
1,885,660
Investment Income
665,169
Other Income
643,715
Total Revenue
5,570,940
Expenses
Administration
447,479
Fundraising
589,848
Governance
772,911
Member Services
1,666,871
Program
2,268,515
Total Expenses
5,745,624
Change in Net Assets
(174,684) .
Slide 6
In FY16/17, the Soroptimist International of the Americas board of directors invested in the growth of the organization to support our strategic direction. This was accomplished by continuing to invest in membership; provide funds for the SIA website redesign and our Big Goal initiative as well as invest in our fundraising efforts. These one-time organizational investments are considered outside of our normal operating budget and were covered through our reserve funds. These investments in our future growth mean a negative bottom line. Yet these investments are vital to the continuing success of our organization.
In FYE 16/17, we earned revenues of almost $5.6 million and incurred expenses of $5.7 million. This resulted in a reduction in net assets of $175 thousand dollars. This reduction in net assets was budgeted and planned and was the result of our continuing investments in our organization. Prudence and careful management allowed us to finish the fiscal year 61% better than budgeted but still with a negative bottom line due to our organizational investments.

7. FINANCIAL RESULTS FY 16/17 Slide 7.
Slide 7
Let us look at our revenue sources more closely. This pie chart reflects our revenue dispersion. We have three major sources of revenue: Membership Dues, Contributions and Investment Income.
Member dues are our largest source of revenue providing almost $2.4 million or 43 percent of the fiscal year revenue. This represents dues collected from over 29,500 members. Dues revenue pays for Member Services and Governance expenses. We were able to cover almost 90% of our Member Services and Governance costs in FY16/17 through our members’ dues but had to rely on our investment income through the spend policy allocation to cover the remaining gap of 10%. Going forward, we have reduced our governance costs by reducing board meetings from three to two per year and will continue to focus on increasing membership while increasing the value of membership by investing in leadership development.
Our second largest stream of income comes from contributions, accounting for 34 percent of our revenue. FY16/17 contributions revenue was up 8.8% percent from FY15/16. SIA relies on contributions to fund our global programs and could not deliver these quality programs without you - our generous donors.

8. FINANCIAL RESULTS FY 16/17 Slide 8.
Slide 8
Revenue from contributions consists mainly of the following categories; Club Giving, Founders Pennies Live Your Dream Awards, and Program Support. The contributions you made were used to help fund and support our Dream Programs – Live Your Dream Awards and Dream it Be It. Contributions income also supported the delivery of our other organization-wide programs such as Soroptimist Club Grants. In almost all cases, our global programs return cash grants right back into your communities through our clubs and their local work.

9. FINANCIAL RESULTS FY 16/17 Slide 9.
Slide 9
This chart depicts our allocation of expenses. As a charitable organization that collects donations and reallocates funds to support our global Dream programs; your elected representatives, the fiduciaries of our organization, are mindful of the need to make every dollar stretch as far as possible for the women and girls we serve. The total funds we collect through gifts and donations do not cover the total we distribute to recipients of awards plus the costs to administer our programs and fundraising efforts.
We were, however, able to fund 79 percent of our global program and fundraising costs from the almost $1.9 million contributed by our generous donors. This is up eleven points from 68%, just two years ago. We relied on our investment income through the standard spend policy allocation to fund the remaining gap of 21 percent. We will continue to focus on fundraising from our membership as well as from corporations and foundations to increase our impact while reducing this reliance on our investment returns.
We are immensely proud of our ability to keep our costs down while trying to Shape our Future for Increased Collective Impact. It is not easy to straddle the reality of the ever-increasing costs to do business; to invest in our programs and organizational infrastructure; to nimbly address the fluctuations of market performance on our investments and the demands and perceptions of our members who believe we are not frugal enough. The past years are those of continued downward trends in membership and economic fluctuations in our investments. There is no question it will continue to be challenging to balance investing in our organization’s future while trying to be less dependent on our investment returns.

10. SIA FINANCIAL STRATEGY
INVESTING IN OUR FUTURE
FOR THE NEXT CENTURY
Slide 10
Looking ahead, our financial goal is to operate our organization and global programs out of operational funds rather than depend on investment returns. We are pursuing financial strategies of growing revenue and diversifying revenue streams. We are doing this to support our collective impact to serve more women and girls through our Dream Programs; fully funding our Dream Programs from contributions and increasing member and supporter engagement in our mission while investing in technology and other capacity building initiatives for the future. We will accomplish these strategies through our efforts to increase our members – in clubs and online, as well as to continue to fundraise in new ways including corporate and foundation gifts, such as the Torrid Foundation.
 In closing, we are an organization that continues to be financially sound with fiscally sound practices. To prepare for the next century, we must invest in our organization, strengthen our membership and supporter base, increase our collective impact by focusing on our Dream Programs, and continue to gain efficiencies in our organizational infrastructure. This will ensure a healthy organization to support our stars, dreams and wishes into our second century and beyond.
Thank you all for your time, attention, and more importantly, your support of our organization.