According to the Tragedy Assistance Program for Survivors (TAPS) audit of December 31, 2020 (Note 13, Going Concern Considerations): "TAPS has a deficit in its Net Assets Without Donor Restrictions (Unrestricted Net Assets) [of $(3,697,355) at December 31, 2020]. Over the years, this deficit has resulted in part from the increased number of contributions and costs associated with maintaining the contributed funds and meeting all the donor restrictions. These costs are borne by unrestricted operations of the Organization and not supported by the restricted contributions. Management recognizes the need to increase unrestricted operating revenues and margins. As such, TAPS is taking proactive steps to increase the level of donations without restrictions which can be used to support the overall operations of the Organization and reduce the net assets deficit. In addition, TAPS is considering allocating, with donor consent, a portion of restricted grants or contributions to an administrative fee to support the costs of administering such funding. This practice is common in the nonprofit industry. This would allow TAPS to offset some of its operating costs and reduce the net deficit. Given TAPS' ability to raise funding and support the costs of the Organization through stable cash flow, management believes the plans to address the deficit in Net Assets Without Donor Restrictions will produce favorable results."
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According to the Tragedy Assistance Program for Survivors (TAPS) audit of December 31, 2020 (Note 8, In-Kind Contributions and Donated Services), TAPS reports receiving "in-kind tickets from various donors...for survivors to attend sporting events" in 2020 on which it placed a value of approximately $431,000. In addition, TAPS reports receiving donated "pro bono legal services" and "PSA Airtime" in 2020 on which it placed a value of $50,457 and $992,793, respectively. (The aggregate total amount of in-kind contributions and donated services received in 2020 equals approximately $1.47 million.) [Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found on the Our Process page.] |
According to the Tragedy Assistance Program for Survivors audit of December 31, 2020 (Note 11, Paycheck Protection Program Loan): "On April 20, 2020, the Organization received a loan from a financial institution in the amount of $1,091,100 to fund payroll, rent, utilities, and interest on mortgages and existing debt through the Paycheck Protection Program (the PPP Loan). ... The PPP Loan bears interest at a fixed rate of 1.0% per annum, has a term of two years, and is unsecured and guaranteed by the U.S. Small Business Administration. Payment of principal and interest is deferred until the date on which the amount of forgiveness is remitted to the lender or, if the Organization fails to apply for forgiveness within 10 months after the covered period, then payment of principal and interest shall begin on that date. "These amounts may be forgiven subject to compliance and approval based on the timing and use of these funds in accordance with the program. As the application for forgiveness has not been completed as of the date the [audited] financial statements were available to be issued [August 16, 2021], information such as the covered period is not determinable. "Subsequent to year-end, on January 25, 2021, the Organization received an additional loan from a financial institution in the amount of $1,091,100 to fund payroll, rent, utilities, and interest on mortgages and existing debt through the Paycheck Protection Program. The terms of the loan are the same and these amounts may be forgiven subject to compliance and approval based on the timing and use of these funds in accordance with the program. The application for forgiveness has not been completed as of the date the financial statements were available to be issued." |
According to the Tragedy Assistance Program for Survivors (TAPS) audit of December 31, 2020 (Note 9, Commitments, Severance Liability): "TAPS has entered into an employment agreement with the President through June 30, 2022, with the potential to extend for a year. The agreement contains a clause whereby TAPS is liable for severance pay in the event of termination other than for cause. At December 31, 2020, the maximum potential amount of severance is approximately $158,000."
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According to the Tragedy Assistance Program for Survivors (TAPS) audit of December 31, 2020 (Note 12, Risks and Uncertainties): "During the fiscal year, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. Subsequent to year-end, the COVID-19 pandemic continues to have significant effects on global markets, supply chains, businesses, and communities. Specific to TAPS, COVID-19 may impact various parts of its 2021 operations and financial results, including but not limited to, declines in contributions and special events participation, costs for increased use of technology, or potential shortages of personnel. Management believes TAPS is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events are still developing." |
According to the Tragedy Assistance Program for Survivors (TAPS) audit of December 31, 2020 (Note 2, Concentrations of Risks, Market Value Risk): "TAPS also invests in a variety of investments. These investments are exposed to various risks, such as fluctuations in market value and credit risk. It is at least reasonably possible that changes in risks in the near term could materially affect investment balances and the amounts reported in the [audited] financial statements." |