Investing in women: beyond the rhetoric

Total Net Assets

20,690,373 15,058,294

TOTAL LIABILITIES AND NET ASSETS

$24,063,800 $17,640,575

FINANCIAL STATEMENTS

90

NOTES TO THE FINANCIAL STATEMENTS

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES:

Organization

The Global Fund for Women, Inc. (the Organization) is a California

nonprofit public benefit corporation organized on June 24, 1987,

and engaged primarily in accepting contributions for distribution to

organizations, agencies and institutions that are organized exclusive-

ly for charitable, educational, religious, scientific, literary or cultural

purposes. Its specific purpose is to promote the economic, legal and

social advancement of women worldwide.

Basis of Presentation

The financial statements are presented on the accrual basis of

accounting, showing permanently restricted net assets, temporarily

restricted net assets and unrestricted net assets, pursuant to

Statement of Financial Accounting Standards (SFAS) No. 117,

Financial Statements of Not-for-Profit Organizations.

Description of program and supporting services

The following program and supporting services are included in the

accompanying financial statements:

Grants

Grants are made to seed, strengthen and link women’s rights groups

outside the United States of America and are recorded as expenses

when approved by the Board of Directors for payment.

Publications

Publications foster knowledge about women’s human rights, stimu-

late interest and participation in the organization’s activities, and

further its goals.

General and administrative

General and administrative expenses include those expenses that are

not directly identifiable with any other specific function but provide

for the overall support and direction of the Organization. These

include functions necessary to maintain an equitable employment

program, manage the financial and budgetary responsibilities of the

organization, and manage other similar functions.

Estimates

The preparation of financial statements in conformity with gener-

ally accepted accounting principles requires management to make

estimates and assumptions that affect certain reported amounts and

disclosures. Accordingly, actual results could differ from these esti-

mates. Such estimates include present value discounts, depreciation

and amortization.

Property and Equipment and Depreciation

All acquisitions of property and equipment in excess of $1,000 and

expenditures for repairs, maintenance renewals and betterments that

materially prolong the useful lives of assets are capitalized. Property

and equipment are recorded at cost or, if donated, the approximate

fair market value on the date of donation. Depreciation of proper-

ty and equipment is provided over the estimated useful lives of the

respective assets on a straight line basis, primarily three to five years.

Investments

The Organization carries investments in marketable securities with

readily determinable fair value and all investments in debt securities

at their fair values in the statement of financial position. Unrealized

gains and losses are included in the change in net assets in the

accompanying statement of activities.

Contributions

The Organization reports gifts of cash and other assets as restricted

contributions when they are received with donor stipulations that

limit the use of the donated assets. When the intent of the donor is

that the assets are to remain in perpetuity and the Organization does

not have the right to invade the original principal, the assets are

reported as permanently restricted. When a donor restriction is met

temporarily restricted net assets are released to unrestricted net

assets and reported in the statement of activities as net assets released

from restrictions. Net assets are also released from donor restrictions

when time restrictions are satisfied. The Organization had

$4,247,705 and $4,181,984 in permanently restricted net assets at

June 30, 2005 and 2004 respectively.

Cash and cash equivalents

For purposes of the statement of cash flows, cash equivalents include

highly liquid debt instruments with an original maturity of three

months or less.

Donations of Goods and Services

Donated services are recognized as contributions in accordance

with SFAS No. 116, Accounting for Contributions Received and

Contributions made, if the services (a) create or enhance non-finan-

cial assets, or (b) require specialized skills, are performed by people

with those skills, and would otherwise be purchased by the organi-

zation. Donations of property and equipment are recorded as

contributions at their estimated fair value at the date of donation.

Tax Exempt Status

The Organization has been granted tax-exempt status by the

Internal Revenue Service and the California Franchise Tax Board.

The Organization also received a ruling from the Internal Revenue

Service that it is not a private foundation.

Functional Allocation of Expenses

Expenses are charged to programs and supporting services on the

basis of periodic time and expense studies as well as estimates made

by the Organization’s management.

2. CONTRIBUTIONS RECEIVABLE:

Contributions receivable at June

30, 2005 are summarized as follows:

Expected receipt of contribution in:

temporarily         

restricted

endowment

2005-2006

1,454,167

2,155,442

2006-2007

550,000

614,000

2007-2008

255,000

412,000

2008-2009

5,000

377,000

2009-2010

‒

50,000

2011-2012

100,000

Gross contributions receivable

2,264,167

3,708,442

Less discount for present value

41,042

129,010

Net contributions receivable

2,223,125

3,579,432

Less current portion

1,454,167

2,155,442

LONG-TERM RECEIVABLES

$768,958

$1,423,990

Long-term contributions receivable are discounted using an inter-

est rate of 4% based on the expected time of receipt.

quasi and 

permanent

91

3. PROPERTY AND EQUIPMENT:

Property and equipment is valued as stated in Note 1 and is sum-

marized as follows:

2005

2004

Furniture and equipment

$247,482

$283,121

Leasehold improvements

138,631

82,947

Intangible property - website

‒

58,000

386,113

424,068

Less: Accumulated depreciation

247,620

293,337

TOTAL PROPERTY AND EQUIPMENT

$138,493

$130,731

Property and equipment includes capitalized leased equipment of

$16,048 and accumulated amortization of $14,309 and $23,437 at

June 30, 2005 and 2004, respectively. Depreciation, including amor-

tization on capital leases, was $92,341 and $95,234 in 2005 and

2004, respectively. Depreciation is computed on the straight line

method over three to five years.Amortization of leasehold improve-

ments is computed on the straight line method over the life of the

asset or the term of the lease if shorter.

4. INVESTMENTS:

Investments in marketable securities at June

30, 2005 and 2004 con-

sist of the following:

2005

2004

market

market

cost

value

cost

value

US Treasuries

$101,492 $101,117 $269,104 $272,347

Other bonds

1,947,234 1,939,339 2,843,697 2,822,761

Certificates of deposit

380,000 378,000 1,085,000 1,079,354

Equity funds

3,224,525 3,742,690 2,864,955 3,243,936

TOTAL INVESTMENTS

$5,653,251 $6,161,146 $7,062,756 $7,418,398

Investment return consisted of the following:

2005

2004

Interest and dividends on securities

$307,067

$169,153

Other bank interest

20,941

15,817

Net realized gain/(loss) on

44,185

135,076

sales of investments

Net unrealized gain/(loss) on investments:

150,772

227,102

$522,965

$547,148

5. COMMITMENTS:

The Organization leases its operating facilities under operating leas-

es expiring on November

30, 2008. Management expects that in

the normal course of business, leases that expire will be renewed

under available options or replaced by other leases. Minimum rental

commitments under the operating leases at June

30, 2005 are as fol-

lows:

Year Ended June

30:

2006

$210,807

2007

143,226

2008

60,411

TOTAL OPERATING LEASE COMMITMENTS

$414,444

Rental expense was

$326,877 and $295,531 in 2005 and 2004 respectively.

6. CONCENTRATION OF CREDIT RISK:

The Organization maintains its cash balances at various banks and

brokerage houses. Bank balances are insured by the Federal

Deposit Insurance Corporation up to

$100,000. At June 30, 2005

the Organization had uninsured bank balances of

$2,418,616. In

addition there was

$7,986,986 in money market funds at broker-

age houses.

7. CAPITAL LEASE OBLIGATIONS:

The Organization leases certain office equipment under financing

lease agreements at an interest rate of approximately

13.5%. Future

minimum lease payments of principal and interest under capitalized

leases at June

30, 2005 are:

Year ended June

30, 2006  

$2,862

Total capital lease payments

2,862

Less amount representing interest

317

Total capital lease obligations

2,545

Less current portion

2,545

LONG TERM PORTION OF CAPITALIZED LEASES

$

–

8. PENSION PLAN:

The Organization has a tax-deferred annuity plan covering all full

time employees after one year of service. Pension expense was

$67,465 and $60,639 in 2005 and 2004, respectively.

9. UNRESTRICTED NET ASSETS:

Unrestricted net assets include Board designated Quasi

Endowment Funds, which consist of a “Legacy” Fund and a “Now

or Never” Capital Depleting Fund. The “Legacy” Fund has been

established to provide the Global Fund for Women with the most

flexibility in long-term planning, utilization and investment, and

permits the invasion of the principal. However, it is not the prac-

tice nor the intent of the Global Fund for Women to invade the

principal of the “Legacy” Fund, except in the case of an emergency

and as a last resort. The “Now or Never” Fund is a capital deplet-

ing fund which will be used at the discretion of the Board of

Directors to address areas of most critical need. Because the Board

of Directors can at any time vote to expend either of these two

funds, they are shown in the financial statements as Quasi

Endowment Funds under unrestricted net assets.

10. TEMPORARILY RESTRICTED NET ASSETS:

2005

2004

Net assets restricted to use in future years:

Quasi-Endowment pledges

$3,503,445

$2,375,449

Women’s Health & Sexual Rights

1,048,686

983,864

General & Administration

1,455,924

581,870

Women’s Funds

251,089

510,540

General Programs Support

‒

400,000

Regional Programs

122,700

109,523

Increasing Access to Education

34,052

‒

Economic & Environmental Justice

38,400

41,500

Other Programs

7,874

205,853

TOTAL

$6,462,170

$5,208,599

Temporarily restricted net assets include Quasi-Endowment

pledges which are funds designated by the Board of Directors for

use in certain areas.

92

NOTES TO THE FINANCIAL STATEMENTS

(CONTINUED)

11. PERMANENTLY RESTRICTED NET ASSETS:

During 2003 The Global Fund for Women, Inc. received the

remaining net assets of The Lewis T. Preston Education Program

for Girls, Inc., which ceased operations and went out of busi-

ness.The income from these net assets, up to six percent per

annum, is restricted to certain programs. If the income falls

below six percent, then the Global Fund for Women is author-

ized to invade the principal to make up the shortage.

Also included in Permanently Restricted Net Assets is a perma-

nently restricted pledge with a present value of $75,988. The

pledge contains provisions restricting the income earned on the

funds to certain regional and thematic uses.

CREDITS

Editors: Leanne A. Grossman, Sande Smith

Writers: Lillian Cincone, Leanne A. Grossman, Maria

McKee, Rachel Niederman, Kavita N. Ramdas, Sande Smith,

Ann Weinstone

Contributors: Angelika Arutyunova-Needham, Ana María

Enríquez, Annie Hillar, Muadi Mukenge, Dechen Tsering,

Zeina Zaatari

Design: Melanie Doherty Design

Printing: Watermark Press

Photo Credits

cover: Serbia, Magnum Photos; ©The New York Times

Company. Reprinted with permission.

p. 2 courtesy Jacqueline Pitanguy

p. 3 ©Terry Lorant

p. 7 Top two photos ©Terry Lorant, lower left ©Jill Posener

p. 8 ©Leanne A. Grossman

p. 9 ©John Maier, Jr./ The Image Works

p. 10 ©Tarmizy Harva/Reuters/Corbis

p. 11 ©Ilkka Uimonen/Magnum Photos

p. 12 courtesy Patsy Preston

p. 14 ©Patrick Zachmann/Magnum Photos

p. 16 top left courtesy Cameroon Association of University

Women, top middle courtesy Galkayo Education Center for

Peace and Development, Somalia; lower middle courtesy

Kitty Rudman

p. 18 ©Jack Kurtz/The Image Works

p. 20 lower left and top ©Colectivo Alquimia,

lower right ©Lori Barra

p. 22 ©PG/Magnum Photos

p. 24 left courtesy Carolyn Frohmader, top middle ©Mark

Tuschman, lower middle courtesy Inda Stagg

p. 26 Magnum Photos

p. 28 top ©Colin Spurway, Mercy Corps; lower middle cour-

tesy Srinija Srinivasan, lower right courtesy Biljana Kasic

p. 30 ©Abbas/Magnum Photos

p. 32 top left ©The Schlesinger Library, Radcliffe Institute,

Harvard University; top middle ©Leanne A. Grossman

p. 34 ©Morgen DeMann

p. 36 All photos ©Terry Lorant except #1 courtesy

Jacqueline Pitanguy, #4 ©Jill Posener; #6 courtesy Charlotte

Bunch; #9 courtesy Dina Dublon; #12 courtesy Global

Rights

p. 37 left ©Terry Lorant, right courtesy Hope Kingsley

p. 39 ©Terry Lorant

back cover:Taiwan, ©Patrick Zachmann/Magnum Photos