HonorBound Foundation

According to the Honor Bound Foundation audit of June 30, 2020 (Note 9, Professional Fundraisers):

"The Foundation has engaged professional fundraising organizations (the 'fundraisers') to solicit public support on behalf of the Foundation to accomplish its stated mission and related programs. The fundraisers are responsible for soliciting contributions through vehicle donations and all costs associated with fundraising activities. ... The Foundation receives a percentage of the net amount derived from fundraising efforts based on the agreement entered into with the particular fundraiser."

Audit Note 9 reports that the professional fundraisers "results" for fiscal 2020 for "Vehicle donations" included:  "Gross Revenue" of $942,720; "Towing cost" of $402,264; "Fundraisers Costs" of $506,360; and "Net Amount" (received by HonorBound) of $34,096.

According to the Honor Bound Foundation audit of June 30, 2020 (Note 7, Paycheck Protection Program Loan):

"The [Foundation] applied for and received a Small Business Administration ('SBA') Paycheck Protection Program loan (the 'PPP Loan') in the amount of $44,870 on April 27, 2020. The loan bears interest at 1%. The PPP loan is forgivable, partially or in whole, if certain employment levels are maintained and expenditures are made for qualified costs... PPP loan repayments are deferred until the SBA remits the Foundation loan forgiveness to the lender. Any unforgiven amount of the PPP loan would be payable in equal monthly installments, with the final payment of any unpaid principal and interest due on April 27, 2022.

"On April 28, 2021, the Foundation received notification from its bank that the full amount of the Foundation's PPP loan was forgiven. The Foundation has elected to record the forgiven PPP loan in income during the fiscal year ending June 30, 2021."

According to the Honor Bound Foundation audit of June 30, 2020 (Note 10, Risks and Uncertainties, COVID-19):

"The Foundation's operations and financial performance may be affected by the recent coronavirus outbreak which has spread globally and is expected to adversely affect economic conditions throughout the world. If the outbreak continues and conditions worsen, the Foundation may experience a disruption in operations. It is not known how the outbreak will affect the Foundation's business, financial conditions and results of operations on an interim basis.

"The COVID-19 pandemic has had and will have adverse effects on the fundraising revenues supporting operations. Given the uncertainty around the extent and timing of the potential future spread or mitigation of the coronavirus and around the imposition or relaxation of protective measures, management cannot reasonably estimate the impact to the future results of operations, cash flows, or financial conditions."