Annual Report 2014In the social media and public relations realm, our Twitter and Facebook followers...

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2014AnnualReport

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Table of ContentsMission Statement and Vision Statement

Board Letter — Cindy Rojas, 2014 Page 3

Auditor Letter Page 4

Statement of Financial Position Page 5

Statement of Net Assets Page 6

Statement of Activities and Changes in Net Assets Page 7

Statement of Functional Expenses Page 8

Statement of Functional Expenses Page 9

Statements of Cash Flows Page 10

Notes to Financial Statements Page 11–12

2014 Walk Sponsors Page 13

Foundation — 2014 year in Review Page 14–15

Foundation Board of Directors and Staff Page 16

Chapter Mission StatementThe Lupus Foundation of America, Indiana Chapter, is dedicated to improving the quality of life for all people affected by lupus

through programs of research, education, and advocacy.

Vision StatementThe Lupus Foundation of America envisions a world without

lupus. The organization will advance the science and medicine of lupus to find a cure and improve the quality of life for all people

affected by lupus.

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March 2015

Dear Lupus Community,2014 brought continued growth for the Lupus Foundation of America, Indiana chapter. The year started with our annual strategic planning session in January where our board once again revisited and reconfirmed our 3 foundational goals:

1. Increase and Diversify Revenue:The board recognizes that without sustainable financial support, we cannot fulfill our mission of lupus awareness, education and patient support. Our focus stayed honed on increasing and diversifying revenue. We expanded our state wide fundraising efforts to geographic areas such as Evansville, Indiana, where we cultivated interest in greater awareness; we increased corporate funding by winning educational grants from Eli Lilly and Company, Mallinckrodt Pharmaceuticals, Reid Hospital, and Putnam County Hospital. We educated board and staff on individual giving strategies and hired a consultant to research private grant opportunities and finalize a template for submission to over 100 opportunities.

2. Increase Public Awareness of Lupus and of the Foundation:With increased financial support, we evaluated and expanded on our education program offerings, hosting our first ever youth program with targeted tips for youth patients and their families. We continued our volunteer training initiatives and worked to recruit new volunteers for events. We hosted 6 very well attended “Living with Lupus” symposiums across the state as well as partnered with the Indiana Minority Health Coalition and the Office of Women’s Health for the State of Indiana to celebrate Put on Purple Day with a digitized interactive education component housed on a 45-foot long bus that attendees entered and experienced. In the social media and public relations realm, our Twitter and Facebook followers multiplied and we created a presence on Instagram and strengthened our public media campaign messaging.

3. Capacity building across our organization: In 2014, we cautiously and conservatively added a new Business Manager and continued to review consultant contracts and deliverables. We found our partnership with our building neighbor, Grace College, to be advantageous and we nurtured the skills of three office interns who gave great overflow support to our administrative staff. Additional achievements included:

• We brought on three new board members with varied skills, including project management, marketing, and fundraising expertise. Work began to create a medical advisory committee and to clarify responsibilities and operations.

• In fiscal 2014, we increased contributions by 6% and ended 2014 with rock solid net assets of $251,827, the highest in our history.

• During 2014, we maintained our participation in community forums and advisory groups and attended 11 health fairs.

• Most importantly, patient support groups grew from twelve in 2013 to sixteen groups in 2014.

The board feels confident the organization is well-situated for the leadership transition and expects continued capacity development and expansion in 2015.

Cindy Rojas Chairman of the Board, 2014 Lupus Foundation of America, Indiana Chapter

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Lemler Group, LLCCertified Public Accountants

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors Lupus Foundation of America - Indiana Chapter, Inc. Indianapolis, Indiana

Report on the Financial Statements

We have audited the accompanying financial statements of Lupus Foundation of America - Indiana Chapter, Inc. (Lupus) which comprise the statements of financial position as of December 31, 2014 and 2013, and related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to Lupus’ preparation and fair presentation of the financial statements 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 Lupus’ internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lupus as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Lemler Group, LLC Indianapolis, Indiana January 16, 2015

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Lupus Foundation of America - Indiana Chapter, Inc.

Statements of Financial Position December 31, 2014 and 2013

ASSETS

2014 2013Current Assets

Cash and cash equivalents $ 255,363 $ 254,936

Accrued receivable 1,018 2,484

Prepaid expenses 2,448 1,395

Total current assets 258,829 258,815

Fixed Assets

Equipment 4,248 2,920

Furniture 2,000 2,000

Total fixed assets 6,248 4,920

Accumulated Depreciation (5,547) (4,506)

Net fixed assets 701 414

Long Term Assets

Security deposit 600 600

Total long term assets 600 600

Total Assets $ 260,130 $ 259,829

LIABILITIES AND NET ASSETSLiabilities

Accounts payable $ 1,345 $ 465

Accrued payroll and payroll taxes 6,958 4,102

Deferred revenue - 3,596

Total current liabilities 8,303 8,163

Total Liabilities 8,303 8,163

Net Assets

Unrestricted net assets 251,827 248,716

Temporarily restricted net assets - 2,950

Total Net Assets 251,827 251,666

Total Liabilities and Net Assets $ 260,130 $ 259,829

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Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2014

Temporarily

Unrestricted Restricted 2014 Total

Revenue and Other Support

Contributions $ 26,198 $ $ 26,198

Grants 10,219 10,500 20,719

Fundraising 219,838 219,838

Interest 136 136

Net assets released from restrictions 13,450 (13,450)

Total revenue and other support 269,841 (2,950) 266,891

Expenses

Program services

Research 7,025 - 7,025

Public information and education 94,426 - 94,426

Patient information and education 94,426 - 94,426

Total program expenses 195,877 - 195,877

Management and general 26,348 - 26,348

Fundraising 44,505 - 44,505

Total expenses 266,730 - 266,730

Net Increase In Net Assets 3,111 (2,950) 161

Net Assets, Beginning of Year 248,716 2,950 251,666

Net Assets, End of Year $ 251,827 $ - $ 251,827

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Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2013

Temporarily 2013

Unrestricted Restricted Total

Revenue and Other Support

Contributions $ 24,648 $ - $ 24,648

Grants 15,105 4,000 19,105

Fundraising 237,591 - 237,591

Interest 107 - 107

Net assets released from restrictions 1,050 (1,050) -

Total revenue and other support 278,501 2,950 281,451

Expenses

Program services

Research 5,642 - 5,642

Public information and education 78,823 - 78,823

Patient information and education 78,823 - 78,823

Total program expenses 163,288 - 163,288

Management and general 21,805 - 21,805

Fundraising 57,868 - 57,868

Total expenses 242,961 - 242,961

Net Increase In Net Assets 35,540 2,950 38,490

Net Assets, Beginning of Year 213,176 - 213,176

Net Assets, End of Year $ 248,716 $ 2,950 $ 251,666

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Statement of Functional Expenses For the Year Ended December 31, 2014

Research

Public Information

and Education

Patient Information

and Education

Total Program Services

Management and General Fundraising 2014 Totals

Expenses

Salaries - officer $ - $ 12,173 $ 12,173 $ 24,346 $ 21,911 $ 2,435 $ 48,692

Salaries - staff - 34,079 34,079 68,158 2,109 - 70,267

Payroll taxes - 3,831 3,831 7,662 237 - 7,899

Rent - 4,541 4,541 9,082 281 - 9,363

Supplies and expenses - 2,666 2,666 5,332 108 33,489 38,929

Insurance - 1,437 1,437 2,874 89 - 2,963

Professional fees - 3,994 3,994 7,988 247 - 8,235

Printing and publications - 5,655 5,655 11,310 231 3,783 15,324

Postage - 1,379 1,379 2,758 57 - 2,815

Equipment rental and maintenance - - - - - - -

Telephone - 2,128 2,128 4,256 131 - 4,387

Travel - 4,304 4,304 8,608 267 - 8,875

Conference and meetings - 10,029 10,029 20,058 621 - 20,679

Publicity and advertising - 679 679 1,358 28 4,798 6,184

Depreciation 505 505 1,010 31 - 1,041

Revenue sharing - Lupus Foundation National Office 7,025 7,026 7,026 21,077 - - 21,077

Total expenses $ 7,025 $ 94,426 $ 94,426 $ 195,877 $ 26,348 $ 44,505 $ 266,730

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Statement of Functional Expenses For the Year Ended December 31, 2013

Research

Public Informa-tion and

Education

Patient Informa-tion and

Education

Total Program Services

Manage-ment and General

Fundrais-ing 2013 Totals

Expenses

Salaries - officer $ - $ 10,039 $ 10,039 $ 20,078 $ 18,069 $ 2,007 $ 40,154

Salaries - staff - 33,135 33,135 66,270 2,049 - 68,319

Payroll taxes - 3,485 3,485 6,970 216 - 7,186

Rent - 4,064 4,064 8,128 252 - 8,380

Supplies and expenses - 1,152 1,152 2,304 46 37,887 40,237

Insurance - 1,369 1,369 2,738 84 - 2,822

Professional fees - 3,874 3,874 7,748 240 - 7,988

Printing and publications - 5,252 5,252 10,504 214 10,553 21,271

Postage - 1,413 1,413 2,826 58 1,161 4,045

Equipment rental and maintenance - - - - - - -

Telephone - 2,098 2,098 4,196 129 - 4,325

Travel - 1,213 1,213 2,426 74 - 2,500

Conference and meetings - 5,318 5,318 10,636 329 - 10,965

Publicity and advertising - 154 154 308 6 6,260 6,574

Depreciation - 614 614 1,228 39 - 1,267

Revenue sharing -Lupus Foundation National Office 5,642 5,643 5,643 16,928 - - 16,928

Total expenses $ 5,642 $ 78,823 $ 78,823 $ 163,288 $ 21,805 $ 57,868 $ 242,961

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Statements of Cash Flows For the Years Ended December 31, 2014 and 2013

2014 2013

Cash Flow From Operating Activities

Change in net assets $ 161 $ 38,490

Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities

Depreciation expense 1,041 1,267

Decrease (increase) in accrued receivable 1,466 (2,311)

Decrease (increase) in prepaid expenses (1,053) (350)

Increase (decrease) in accounts payable 880 (11,288)

Increase (decrease) in accrued payroll and payroll taxes 2,856 413

Increase (decrease) in deferred revenue (3,596) 3,596

Net Cash Provided By Operating Activities 1,755 29,817

Cash Flow From Investing Activities

Purchase of fixed assets (1,328) (1,241)

Net Cash Used In Investing Activities (1,328) (1,241)

Increase in Cash and Cash Equivalents 427 28,576

Cash and Cash Equivalents, Beginning of Year 254,936 226,360

Cash and Cash Equivalents, End of Year $ 255,363 $ 254,936

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Notes to Financial Statements For the Years Ended December 31, 2014 and 2013

Note 1 – Nature of ActivitiesBackgroundLupus Foundation of America - Indiana Chapter, Inc. (Lupus) was formed as an Indiana not-for-profit organization in 1987. Lupus is a voluntary health agency which promotes education, awareness and research regarding the chronic disease of lupus.

Mission StatementLupus is dedicated to finding the cause of and cure for lupus and providing support, services, and hope to all people affected by lupus.

Vision StatementLupus advances the science and medicine of lupus to find a cure and to improve the quality of life for all people affected by lupus.

Programs:Lupus has three major programs:

• Research Program consists of fees paid to the National Lupus Foundation of America, Inc. for independent research studies on lupus. These funds provide research grants to qualifying institutions and scientists to find the cause of and the cure for lupus.

• Public Information and Education is an ongoing program to create awareness about lupus. Awareness and education brings the disease to the attention of government agencies who fund research. An awareness program such as “Could This Be Lupus” helps with earlier diagnosis and better patient outcomes.

• Patient Information and Education is an ongoing series of programs that educates patients and their families about lupus. These programs provide patients with a better understanding on how to manage a chronic disease, along with family and friends.

FundraisingLupus has various types of major fundraising activities: walk-a-thon, golf outing, chili cook off, wine tasting and silent auction. Proceeds from these events support the mission statement of providing education and awareness about lupus and research to find a cure.Note 2 – Significant Accounting PoliciesAccounting MethodLupus’ financial statements have been prepared on the accrual basis of accounting.

Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of con-tingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and other changes during the reporting period. Actual results could differ from those estimates.

Subsequent EventsLupus has evaluated subsequent events through January 16, 2015, which is the date the financial statements were available to be issued. The evaluation determined that there are no subsequent events that necessitated further disclosure in and/or adjustments to the accompanying financial statements.

Cash and Cash EquivalentsFor the purpose of the statement of cash flows, Lupus considers all highly liquid debt instruments purchased with a maturity of three months or less to be considered cash and cash equivalents. The carrying amount of cash approximate fair value due to the type of invest-ments and the maturity dates.Interest bearing deposits at Lupus’ financial institutions are insured by the Federal Deposit Insurance Corporation up to $250,000 and non-interest bearing deposits are insured on an unlimited basis. Lupus has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and investments. Lupus’ cash and cash equivalents is comprised of two checking and one savings account.

Accrued ReceivablesAccrued receivable represents fundraising activities that took place prior to year end. These amounts were collected subsequent to year end.

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Property and EquipmentFurniture and equipment are recorded at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, generally five to seven years. Expenditures for maintenance and repairs are charged to operations as incurred. Items over $500 are capitalized as additions in the year purchased.Net AssetsThe financial statements have been prepared in accordance with Financial Statements of Not-for-Profit Organizations that require, among other things, that the financial statements report the changes in and total of each of the net asset classes, based upon donor restrictions, as applicable. Net assets are to be classified as unrestricted, temporarily restricted and permanently restricted. The following class of net assets and a brief description is as follows:

• Unrestricted Net Assets: The unrestricted net asset includes general assets and liabilities of Lupus. The unrestricted net assets may be used at the direction of management to support Lupus’ purposes and operations.

• Temporarily Restricted Net Assets: A donor-imposed restriction permits Lupus to use up or expend the donated assets as specified and is satisfied either by the passage of time or by actions of Lupus. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statement of activities as net assets released from restrictions. At December 31, 2014 and 2013, Lupus has $2,950 and $0, respectively, restricted for upcoming symposium.

• Permanently Restricted Net Assets: A donor-imposed restriction stipulates that resources be maintained permanently, but permits Lupus to use up or expend part or all of the income (or other economic benefits) derived from the donated assets. There are no permanently restricted net assets at December 31, 2014.

Revenue RecognitionLupus reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.Donated Goods and ServicesNumerous volunteers have donated significant amounts of time to Lupus’ program and supporting services. No amounts have been re-flected in the accompanying financial statements for those donated services because they do not meet the criteria for revenue recognition.Expense AllocationThe costs of providing various programs and other activities have been summarized on a functional basis in statement of activities and changes in net assets and statement of functional expenses. Accordingly, certain costs have been allocated by management based on various programs and supporting services benefited.Income TaxesLupus is exempt from federal and state income tax under the provisions of Section 501(c)(3) of the Internal Revenue Code; therefore, no provision for income taxes has been made in the financial statements. Lupus has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions.Generally accepted accounting principles in the United States require Lupus to examine its tax positions for uncertain positions. Lupus is not aware of any tax positions that are more likely than not to change in the next twelve months, or that would not sustain an examina-tion by applicable taxing authorities. Lupus’ policy is to recognize penalties and interest as incurred in its statement of activities as a component of operating expenses, and totaled $0 for December 31, 2014.Lupus’ federal and state income tax returns for fiscal years ended 2011 through 2013 are subject to examination by the ap-plicable tax authorities, generally for three years after the later of the original or extended due date.AdvertisingLupus uses advertising to promote its program among the public it serves and is expensed as incurred.Note 3 – Related Party TransactionsLupus supports the education, research and operations of Lupus Foundation of America (national organization) through annual revenue sharing based upon a percentage of the previous year’s revenues. In addition, Lupus makes donations to the national organization to education, research and operations. These donations are at the discretion of Lupus’ Board of Directors. For the years ended December 31, 2014 and 2013 Lupus paid the national organization $21,077 and $16,928, respectively, for revenue sharing and $0 as a donation.Note 4 – Operating LeasesLupus has leased office space on 9302 N. Meridian Street in Indianapolis, Indiana. The monthly payment for the lease is $600 which in-creases on the anniversary to $625 and $650 over a three year period. This lease expired as of December 31, 2014. Lupus and the landlord are in negotiating lease terms. As of January 16, 2015, no formal lease has been finalized.

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2014 Walk Sponsors

Strack & Van Til Food MarketTarek Kudaimi, MD, LLC

US Steel, Gary WorksEli Lilly and CompanyAmeriprise Financial

Bone and Joint SpecialistsBryant’s Pools

PrintSolutions, Inc.St. Helen’s Philoptochos, Chapter #2034

Electric Coating TechnologiesKauffman Chiropractic, PC

BMW of ScherervilleAttorney John S. Dull

Griffith Tri KappaLakeshore Public TelevisionCity of Crown Point, Indiana

Amex Nooter, LLCCommercial Cooling & Heating, Inc.

NW Indiana Times/Times MediaTender Love Home Services

WalgreensMarion County Health Department

Midland Atlantic PropertiesRCR Technology Corporation

The Links - Indianapolis ChapterMays Chemical

The Windsor GroupLittle Smiles, PC

Duke EnergyOld National Bancorp

Williams & Bluitt Funeral Home, Inc.Khamis Fine Jewelers

Whiskey BusinessKroger

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2014 Events

1116

State-wide Living with Lupus Symposiums

State-wide Health Fairs

State-wide Support Groups

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State-wide Support Groups

Crown Point Walk Crown Point, Indiana

Indianapolis Walk Indianapolis, Indiana

Purple for a Purpose Youth Experience Indianapolis, Indiana

A Tasteful Affair Indianapolis, Indiana

Chili Cook-Off Merrillville, Indiana

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2014 Board of DirectorsCindy Rojas, Chair

Melissa Sandala, TreasurerAnnie Smith, Secretary

Marlene Aldo-Benson, MDMelody Benson

Virginia Githiri, Ph.D.Ronda HiteSteve Evans

Kathy McGrawRod Richardson

Joann Inguli-FattieKaren Deno

Marty BarnesLois Lark

StaffJan Ferris, Chief Executive Officer, exiting December 2014

Morgan McGill, Chief Executive Officer, incomingDebbie Campbell, Patient Programs and Volunteer Coordinator

Rebecca Smith, Business Manager

317.225.4400800.948.8806

9302 N. Meridian St., Suite 203Indianapolis, IN 46260

[email protected]

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