To the Board of Directors of United Way of the Coastal Empire, Inc.
Opinion
C HRISTOPHER H . H OLLAND , CPA
S . S TEWART B ROMLEY , CPA
R ONNIE A B ARNHILL , J R ., CPA
S HANNON L . B RETT , CPA , CFE
T AYLOR A . M ONGIN , CPA
We have audited the accompanying financial statements of United Way of the Coastal Empire, Inc. (the Organization) (a nonprofit organization), which comprise the statement of financial position as of June 30, 2025, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Organization as of June 30, 2025, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Organization and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Prior Period Financial Statements
The Organization’s June 30, 2024 financial statements were audited by other auditors whose report dated February 27, 2025 expressed an unmodified opinion on those statements. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Organization’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Organization's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Holland, Bromley, Barnhill & Brett, LLP
Savannah, Georgia
January 15, 2026
UNITED WAY OF THE COASTAL EMPIRE, INC.
STATEMENTS OF FINANCIAL POSITION
June 30,
AND NET ASSETS
UNITED WAY OF THE COASTAL EMPIRE, INC.
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED JUNE 30, 2025 AND 2024
ACCOUNTING POLICIES
(CONTINUED)
United Way follows Financial Accounting Standards Board (FASB) guidance on Revenue from Contracts with Customers (Topic 606). The Organization’s revenue streams that are accounted for as exchange transactions within the scope of Topic 606 mainly include administrative income.
Administrative income recognized by United Way relates to the management of funds on behalf of other organizations. In exchange for the management of these funds, the Organization may earn a percentage fee to defray administrative costs. As funds are periodically disbursed to United Way, the Organization recognizes income relative to the amount of funds under their care in accordance with the respective agreement.
The majority of United Way’s revenues are unconditional contributions and investment income, which are not included in the scope of Topic 606.
Public support
Contributions, including unconditional promises to give and grants, are recognized as revenue in the period the contribution or the unconditional promise is received. Unconditional promises to give that are expected to be collected within one year are reported at their net realizable value. Conditional promises to give are not recognized until the conditions on which they depend are substantially met.
Contributions and grants received are recorded as net assets with donor restrictions or net assets without donor restrictions depending on the existence and/or nature of any donor restrictions. All donor-restricted support is reported as an increase in purpose restricted, time restricted, or perpetual in nature net assets, depending on the nature of the restriction. When a restriction expires (that is when a stipulated time restriction ends, or purpose restriction is accomplished) restricted net assets are reclassified to net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. Contributions received with donor-imposed restrictions that are satisfied within the same reporting period are reported as net assets without donor restrictions in that period.
Rental income
The Organization’s rental income primarily consists of rent earned from operating leases of office space to area nonprofits at the Organization’s Savannah, Georgia headquarters and Effingham County service center. The Organization applies a portfolio approach to account for its lessor leases and assesses whether an arrangement qualifies as a lease at inception. The Organization only reassesses its determination if the terms and conditions of the arrangement are changed.
Rental contracts commence once the tenant is given control of the underlying asset. Revenue on operating leases is recognized over the lease term on a straight-line basis. There are no variable lease payments associated with office space rentals. Rental contracts generally do not include lessee provisions to purchase the underlying asset or extend the lease term. Advance rental payments are recorded as deferred revenues on the statement of financial position.
At lease inception, the Organization estimates the residual value expected from the leased asset at the end of the lease term based on expected useful lives of the underlying assets and expected market conditions. The Organization’s ability to realize the residual value at the end of the lease term could be affected by unusual wear and tear of each rented office. This risk is managed through on-site monitoring and periodic inspection by management of the Organization.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Promises to give and allowances for uncollectible contributions
The Organization provides an allowance for uncollectible campaign pledges receivable based on historical loss experience, risk characteristics of various account categories, specific impaired accounts, reasonable forecasts, and other pertinent factors. This estimated allowance is periodically adjusted based on campaign collection trends. A campaign is officially closed for accounting purposes, and the final uncollectible amount determined, in the year following the year of workplace campaign collections. Any difference in the actual campaign collection results compared with the estimates previously recorded are reflected as an adjustment to net campaign results in the statements of activities.
Non-campaign related unconditional promises to give that are expected to be collected in future years are discounted to their net present value. The discount rate used includes a premium to account for possible future uncollectible amounts. Amortization of the discount is recorded as an adjustment to contributions revenue of the appropriate net asset class.
In-kind contributions
The Organization’s policy related to gifts in kind is to utilize the assets received to carry out the mission of United Way. If an asset is provided that is not able to be utilized in the normal course of business, the asset will be sold at fair value as determined by current market rates. Donated marketable securities and other non-cash donations are recorded as contributions at their estimated fair values at the date of donation. United Way benefits from donated advertising provided by local media promoting the Organization’s annual campaign and programs. The donated advertising received is recognized at fair value based on the prevailing rates of the media companies broadcasting the announcements. The value of donated advertising services totaled $422,342 and $286,690 during the years ended June 30, 2025 and 2024, respectively. The Organization also received donated office space in Liberty and Bryan counties, Georgia during the year ended June 30, 2025 valued at $25,704. These amounts have been reported as both in-kind contribution revenue without donor restriction and in-kind advertising and occupancy expenses on the statements of functional expenses.
Contributed services are recognized at fair market value if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. There were no such contributed services meeting these criteria during the years ended June 30, 2025 and 2024.
In addition, unpaid volunteers have made significant contributions to the activities of United Way. The value of this contributed time is not reflected in the financial statements since these services do not meet the criteria for recognition as contributed services.
Prepaid expenses and other assets
Prepaid expenses generally include in-advance expenditures related to organizational insurance policies and software licenses and are amortized over their contract terms. The Organization is also a beneficiary of a donated life insurance policy. The cash surrender value of this policy is reported in other assets on the statements of financial position. See Note 5 for additional information on this policy.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Funds due to designated agencies and funds held for disposition
Overall campaign results are reduced by contributions that are fundraised by United Way, but the donor has specified another nonprofit organization as the beneficiary. United Way is considered an agent for these designated organizations and, as such, treats the pledges as liabilities to those non-profits.
United Way has also entered into agreements with certain local organizations to hold and administer funds on their behalf. In certain instances, the Organization may recognize a fee relative to the management of these funds based on the provisions of the respective agreement. These funds held for disposition are reported as liabilities on the statements of financial position and are not reported in the results of the annual campaign.
Beneficial interest agreements
United Way has a beneficiary interest in the Herschel Jenkins Trust accounted for in net assets with donor restrictions as a charitable foundation beneficial interest in a perpetual trust. The interest is irrevocable, and the underlying assets are held by a third party. The fair value recognized on the date the interest was initially determined, was calculated using a discount rate which approximates the rate of return on similar securities. Fair value is calculated annually and changes in the fair value are recognized as increases or decreases in investment income with donor restrictions on the statement of activities. Distributions taken from the Trust are reported in contributions without donor restrictions. See Note 3 for a further discussion on the Herschel Jenkins Trust.
United Way is the beneficiary of certain funds held and administered by Savannah Community Foundation (SCF), a local community foundation. One of the funds at SCF contains the endowment described below. Funds invested with SCF are not subject to the control or direction of the Organization. The funds represent pooled investments accounted for as beneficial interests. The beneficial interests held with SCF are reported on the statements of financial position at fair value. The Organization’s estimated fair value is based on fair value information received from SCF. Net appreciation or depreciation in the fair value of these pooled investments are reported in investment income in net assets with donor restrictions on the statements of activities.
The endowment consists of funds received from the E.J. & E.M. Derst Charitable Remainder Annuity Trust (Derst Trust). The Derst Trust stipulated that the funds received by United Way in 2021 be maintained in perpetuity and that the earnings from those funds be spent for capital improvements. In 2022, United Way invested the funds received from the Derst Trust with SCF, similar to other United Way funds held with SCF.
Investments
Investments consist of beneficial interests in assets held by others and are reported at fair market value in the statement of financial position. Realized and unrealized gains and losses are included in the statement of activities, along with other investment income, net of related expenses. See Note 8 for additional information on investments.
Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain long-term investments, it is reasonably possible that changes in the values of these investments might occur in the near term and that such changes could materially affect the amounts reported in the statement of financial position.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income taxes
The Organization qualifies for tax exempt status under Section 50l(c)(3) of the Internal Revenue Code and is not subject to U.S. federal income tax or state income tax. Thus, no provision for income taxes has been made in these financial statements.
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. Once this threshold is met, the amount recognized in the financial statements is the largest amount of tax benefit likely realized on examination. For tax positions not meeting the “more likely than not” test, no benefit is recorded.
The Organization is no longer subject to examination by taxing authorities for years before 2022. If incurred, the Organization would recognize interest and penalties related to unrecognized tax benefits in interest expense. At June 30, 2025, an accrual for these items was not deemed necessary, and no such expenses were incurred for the year then ended. The Organization does not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months.
Property and equipment
Property and equipment is stated at cost, or if donated, at the approximate fair value at the date of donation. Generally, expenditures greater than $1,000 that are expected to provide benefits for multiple years are reviewed for potential capitalization. Some expenditures below this threshold are capitalized for tracking purposes. The Organization recognizes depreciation on these assets using the straight line method over the estimated useful lives, which range from 3 to 39 years.
Donations of property and equipment are reported as net assets without donor restrictions unless the donor has restricted the asset for a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulation regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted net assets to unrestricted net assets at that time.
The Organization reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable.
Cost allocation
The financial statements report certain categories of expenses that are attributable to more than one program or supporting function. These expenses are allocated on a reasonable basis that is consistently applied based on management’s analysis of the nature of each expense and employee time spent on each program and supporting function.
Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reclassifications
Certain amounts in the prior year financial statements have been reclassified for comparative purposes to conform to the presentation in the current year financial statements.
Comparative data
The amounts shown for the year ended June 30, 2024 in the accompanying financial statements are included to provide a basis for comparison with 2025 and present summarized totals only. Accordingly, the 2024 totals are not intended to present all information necessary for a fair presentation in conformity with U.S. GAAP. Such information should be read in conjunction with the Organization’s audited financial statements for the year ended June 30, 2024, from which the summarized information was derived.
Subsequent events
The Organization has evaluated subsequent events through January 15, 2026, the date the financial statements were available to be issued.
NOTE 3 - HERSCHEL JENKINS TRUST
In his last will and testament, Herschel V. Jenkins, one of the original founders of the Organization established a trust known as the Herschel Jenkins Irrevocable TUW III(5) (the Trust). Bank of America, N.A. (the Trustee) was named to serve as Trustee. United Way was named the primary beneficiary of the Trust. Under the terms of the will, the Trustee invested the Trust’s assets and pays proceeds from the net income of the Trust to the beneficiaries at least annually. The Trust distributes approximately $1,500 of its income to other organizations annually, and United Way is entitled to the remainder of the income from the Trust. Disbursements are generally used to defray administrative costs of the Organization.
The underlying assets held and invested by the Trustee are various equity securities, bonds and other investments chosen at the discretion of the Trustee. The Organization records only one asset, the beneficial interest in the trust. The beneficial interest is classified as a level three asset in the valuation hierarchy. The fair value is measured by the net present value of the expected future distributions from the Trust. During 2025 and 2024, the calculation assumed a long-term return on assets of 7% and longterm inflation rate of 3% for a net capitalization rate applied to trailing trust income of 4%. On June 30, 2025 and 2024, the estimated fair value of the Organization’s interest in the Trust was $19,860,000 and $19,450,000, respectively. It is reasonably possible that a change in this estimate of value will occur in the next year. The original value of the corpus of the Trust at the time of the bequest was $15,000,000 and is recorded as permanently restricted net assets. The value of the Organization’s beneficial interest that exceeds the original bequest is recorded as temporarily restricted and represents undistributed investment earnings. This excess value totaled approximately $4,860,000 and $4,450,000 at June 30, 2025 and 2024, respectively.
United Way is entitled to all income from the Trust each year after the small distributions to other organizations. United Way has an agreement with the Trustee whereby annual distributions are determined by the Trustee and are calculated based on a three-year average of the Trust’s fair value of assets. The distribution rate in effect for United Way during the years ended June 30, 2025 and 2024 was 4%. During the years ended June 30, 2025 and 2024, the Organization received $967,018 and $814,474, respectively, in distributions from the Trust, which are reported as contributions without donor restriction on the statements of activities.
NOTE 4 - NON-CAMPAIGN PLEDGES RECEIVABLE
In 2024 the Organization received a long-term promise to give from a donor with a gross value of $930,000, payable in installments to support housing assistance in Bryan County. This promise to give is reported as a non-campaign pledge receivable on the statements of financial position, discounted to its net present value using a discount rate of 3.75%. Payments on this promise to give during the fiscal years 2025 and 2024 totaled $187,980 and $180,000, respectively.
Non-campaign pledges receivable consists of the following:
Receivable in less than one year312,020 $ 250,000 $
Receivable in one to five years 250,000 500,000
Total non-campaign pledges receivable 562,020 750,000
Less discounts to net present value(27,000) (194,000)
Net non-campaign pledges receivable535,020 $ 556,000 $
NOTE 5 - CASH SURRENDER VALUE OF LIFE INSURANCE
The Organization is the owner and beneficiary of an insurance policy on the lives of certain supporters of the Organization. The policy has a death benefit of $500,000 and a cash surrender value at June 30, 2025 and 2024 of $157,394 and $149,991, respectively. The cash surrender value is reported in other assets on the statements of financial position.
NOTE 6 - PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
June 30,
Land190,000 $ 190,000 $
Building and improvements3,394,494 3,394,494
Equipment and fixtures786,433 752,386
Property and equipment at cost4,370,927 4,336,880
Less: accumulated depreciation(3,013,632) (2,899,494)
Net book value1,357,295 $ 1,437,386 $
NOTE 7 - EMPLOYEE BENEFIT PLAN
The Organization offers an employee savings plan, covering employees who meet certain minimum age and service requirements. The Organization contributes a 100% match of participants' first 6% of contributions of eligible compensation. The plan also provides for additional employer discretionary contributions. Employer contributions for the years ended June 30, 2025 and 2024 totaled $64,099 and $93,438, respectively.
NOTE 8 - INVESTMENTS
FASB Topic 820, Fair Value Measurements, establishes a framework for measuring fair value which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).
The three levels of the fair value hierarchy under the FASB Topic 820 are described as follows:
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access.
Level 2 Inputs to the valuation methodology include:
Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.
Investments measured at fair value at June 30, 2025 and 2024 are as follows:
Assets at Fair Value as of June 30, 2025
Assets at Fair Value as of June 30, 2024
The beneficial interest from the Herschel Jenkins Trust is a Level 3 asset. The assets are valued using the income approach by discounting the expected future payments from the Trust.
Savannah Community Foundation holds pooled investment accounts, including the Derst Endowment, for United Way that are classified as beneficial interests. The assets are valued based on the United Way’s percentage of marketable securities invested by the pooled account. The Organization’s beneficial interest in funds held at SCF are considered to be Level 3 investments because they represent receivables to be paid from the investments managed by SCF. Investment management fees deducted from the funds held at SCF during fiscal years 2025 and 2024 totaled $5,330 and $6,438, respectively.
NOTE 8 - INVESTMENTS (CONTINUED)
The table below sets forth a summary of changes in the fair value of the Organization’s Level 3 investment assets for the years ended June 30, 2025 and 2024: HerschelSavannah CommunityTotal Beneficial Jenkins Trust Foundation Funds Interests
Balance July 1, 202319,930,000 $
NOTE 9 - LIQUIDITY AND AVAILBILITY OF FINANCIAL ASSETS
The following reflects the Organization’s financial assets (cash, certificates of deposit, and certain receivables) as of June 30, 2025, reduced by amounts not available for general use because of donorimposed restrictions within one year of the statement of financial position date.
Financial assets at year-end3,725,887 $
Less those unavailable for general expenditures within one year, due to:
Due to designated agencies66,667 Funds held for disposition531,865
Financial assets available to meet cash needs for general expenditures within one year3,127,355 $
For purposes of analyzing resources available to meet general expenditures over a twelve-month period, the Organization considers all expenditures related to its ongoing mission-related activities as well as the conduct of services undertaken to support those activities to be general expenditures.
In the event of an unanticipated liquidity need, the Organization could also draw upon $600,000 of an available line of credit, as discussed in Note 11.
NOTE 10 - NET ASSETS WITH DONOR RESTRICTIONS AND BOARD DESIGNATIONS
Net assets with donor restrictions and net assets without donor restrictions that have been designated by the Board of Directors for certain purposes consist of the following:
Endowment
The endowment consists of funds received from the Derst Trust as described in Note 2. The trust stipulated that the $114,429 in funds received by the Organization be maintained in perpetuity and that the earnings of those funds are to be spent for capital improvements. In 2022, the Organization invested the funds received from the trust with the Savannah Community Foundation.
NOTE 10 - NET ASSETS WITH DONOR RESTRICTIONS AND BOARD DESIGNATIONS (CONTINUED)
Interpretation of Relevant Law
The Board of Directors of the Organization has interpreted the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as net assets with donor restrictions perpetual in nature (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in net assets with donor restrictions perpetual in nature is classified as net assets with donor restrictions for a purpose until those amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by UPMIFA.
In accordance with UPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:
1. The duration and preservation of the fund.
2. The purposes of the organization and the donor-restricted endowment fund.
3. General economic conditions.
4. The possible effect of inflation and deflation.
5. The expected total return from income and the appreciation of investments.
6. Other resources of the organization.
7. The investment policies of the organization.
Return Objectives and Risk Parameters
The Organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Organization must hold in perpetuity. Under this policy, as approved by the Board of Directors, the endowment assets are invested with the Savannah Community Foundation in a manner that is intended to produce long-term capital growth while assuming a moderate level of investment risk.
Strategies Employed for Achieving Objectives
To satisfy its long-term return objectives, the Organization relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Organization targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.
Spending Policy and How the Investment Objectives Relate to Spending Policy
In establishing the endowment fund with Savannah Community Foundation, the Organization has agreed to a policy of appropriating for distributions of accumulated investment earnings each year, generally up to 5%.
NOTE 10 - NET ASSETS WITH DONOR RESTRICTIONS AND BOARD DESIGNATIONS (CONTINUED)
This calculation is based on the investment fund’s average fair value over the prior three years preceding the fiscal year in which the distribution is planned. Additional distributions may be authorized with the consent of the Board of Directors and the Savannah Community Foundation. In establishing this policy, the Organization considered the long-term expected return on its endowment. Accordingly, over the long-term, the Organization expects the current spending policy to allow its endowment to grow annually. This is consistent with the Organization’s objective to maintain the purchasing power of the endowment assets held in perpetuity, as well as to provide additional real net growth through new gifts and investment return.
The Organization’s endowment net asset composition as of June 30, 2025 and 2024 follows: Derst Endowment Fund 2025 2024
Changes in endowment net assets for the years presented are as follows: Net assets with donor restrictions
Endowment net assets July 1, 2023117,245 $ Investment return, net10,382
Endowment net assets June 30, 2024127,627 Investment return, net15,530
Endowment net assets June 30, 2025143,157
NOTE 11 - LINE OF CREDIT
The Organization opened a revolving line of credit facility with a bank during 2024 that allows for draws up to $300,000 and bears interest at the lender’s prime rate plus 2%, which was 8.5% at June 30, 2025. In November 2024, the Organization renewed the line of credit, extending the maturity date to November 4, 2025, and increasing the limit on the line to $600,000. The maturity has since been extended to February 4, 2026, and the Organization is in process of obtaining a renewal agreement. There was no outstanding balance on the line of credit at June 30, 2025 and 2024.
Interest is payable monthly in arrears. All outstanding principal and accrued interest is due at maturity. This facility is collateralized by the Organization’s assets, except for its real estate assets. Interest expense on the line of credit totaled $8,443 and $0 during the years ended June 30, 2025 and 2024, respectively.
NOTE 12 - CONCENTRATIONS AND CONTINGENCIES
The Organization maintains cash balances with commercial banks in deposit accounts which, at times throughout the year, exceeded federally insured limits. The Organization has not experienced any losses of such funds and management believes the Organization is not exposed to any significant risk on cash. The amount of uninsured cash at June 30, 2025 was approximately $1,285,700.
NOTE 12 - CONCENTRATIONS AND CONTINGENCIES (CONTINUED)
Approximately 16% of campaign pledges receivable outstanding at June 30, 2025, was due from one organization. At June 30, 2025, 100% of non-campaign pledges receivable outstanding was due from one donor.
NOTE 13 - RENTAL INCOME
The following table presents future undiscounted minimum rents the Organization expects to receive from its operating leases as of June 30, 2025:
Year ending June 30, 2026107,465 $
