Financial Health

28 Financial Health

The MAH’s operating costs for FY20 were $1,808,336 with contributed revenue generated from individuals and businesses, foundation and government grants, and earned revenue from admission fees, event tickets, facility rentals, lease payments, and retail sales.

Although we maintain modest reserves, our financial position has been understandably weakened as a result of COVID-19. The financial impact of the pandemic on our organization since we closed in early March through the end of our fiscal year on June 30, 2020 is approximately $200,000 in lost or deferred revenue. This, coupled with other funding shortfalls, resulted in an annual deficit of $365,648 for FY20.We anticipate losses to continue into the new year, but hopefully at a decreased rate.

We have taken and continue to take actions designed to ensure financial sustainability now and in the future. In the short term, we reduced staff numbers and have been actively pursuing COVID-19 relief funding opportunities including grants, small business loans, and assistance programs focused around capacity building, resilience, and recovery.

For the long term, we have been working to strengthen our business model with financial strategies that include striking a realistic balance between earned and contributed revenue, shoring up cash flow, expanding our resources, and broadening our base of support. Our efforts toward resource development include re-engaging past donors and supporters and introducing new revenue streams, with particular attention being paid to opportunities for income growth that are aligned with our programs and artistic development.

The charts and figures on the next page are a snapshot of the MAH’s financial position from this most recent year.

Note: The condensed statement of operations and the condensed statement of financial position are derived from the financial statements of the MAH as of June 30, 2020, which have not been audited. A complete set of the MAH’s audited financial statements for 2019–20 will be posted to our website as soon as completed. Previous years audited financial statements and IRS Form 990s are currently available at santacruzmah.org/financials.

The MAH maintains a four-star rating, the highest possible, by Charity Navigator, America’s leading independent charity evaluator.

FISCAL YEAR 2020 Jul 2019-Jun 2020 (Unaudited )

Income

■ Contributions ■ Grants ■ Memberships ■ Admission ■ Programs/Store ■ Facility Rental ■ McPherson Center Leases ■ Interest/Endowment ■ Released from Restriction

Total Income 210,089 267,969 105,579 41,258 71,021 110,633 380,974 15,547 239,617

1,442,688 15% 19% 7% 3% 5% 8% 26% 1% 16%

Expense

■ Personnel ■ Professional Services ■ Admin/Facility ■ Marketing ■ Fundraising/Membership ■ Exhibitions/Collections ■ Programs/Store

Total Expense

Net Income 1,207,463 192,002 230,449 26,497 19,317 71,439 61,169

1,808,336

(365,648) 66% 11% 13% 2% 1% 4% 3%

Assets

■ Unrestricted Cash ■ Temp. Restricted Cash ■ Perm. Restricted Cash ■ Other Current Assets ■ Fixed Assets

Total Assets

Total Liabilities

Total Net Assets Total Liabilities & Net Assets 543,271 767,686 351,832 307,990 5,921,155

7,891,934

961,484

6,930,450 7,891,934