arbor day foundation 2011 annual report
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The 2011 Annual Report for the Arbor Day FoundationTRANSCRIPT
2011 Annual Report
Mission of the Arbor Day Foundation
“We inspire people to plant, nurture, and celebrate trees.” “We inspire people to plant, nurture, and celebrate trees.”
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Fiscal Year 2010-2011 Annual Report
Table of ContentsMessage from the Chief Executive, John Rosenow 3
Board of Trustees 4-5
Message from the Chair, Bill Kruidenier 5
Arbor Day Foundation ProgramsTrees for America 6-7Tree City USA 8-9Tree Line USA 9Tree Campus USA 10-11Nature Explore 12-15Celebrate Arbor Day 16-17Rain Forest Rescue 18-19Conservation Trees 20-21Arbor Day Farm 22-23
Financial Report and Audit 24-28
Dear Members and Friends,
President Theodore Roosevelt said, “The conservation of natural resources is the fundamental problem,” adding: “Unless we solve that problem, it will avail us little to solve all others.”
This was not mere rhetoric to Roosevelt. During his administration, he helped create the U.S. Forest Service, with the mission to manage America’s forestland for the public good.
The Arbor Day Foundation similarly places great importance on putting ideals into action.
For instance, the generosity of members and corporate partners enabled the Foundation’s Trees for America program to replant more than 4.8 million trees in forests last year, in partnership with the U.S. Forest Service and the National Association of State Foresters. In response to natural disasters in north Alabama and Joplin, Missouri, Trees for America is helping rebuild communities by replanting lost trees.
Volunteers and local officials are also contributing greatly to our shared mission. In 2011, 481 communities that participate in Tree City USA advanced beyond basic standards to receive a Tree City USA Growth Award, demonstrating their commitment to improving local tree care.
Nature Explore continues to spark the spirit of conservation in children through research-based outdoor learning opportunities. Nature Explore has become a vital resource for conservation and education organizations large and small, including the Los Angeles and Chicago school systems, the Air Force and child care centers across America.
Through 58 projects in 7 Latin American countries, Rain Forest Rescue is helping people improve their livelihoods and the stewardship of the land. And, back at home, members and key research partners are helping to improve hybrid hazelnuts at Arbor Day Farm, contributing to a healthier and more sustainable future.
These are just a few examples of how we work with our members, supporters and partners to turn worthy ideals into action. Thank you for all that you do.
Best Regards,
John Rosenow Chief Executive
Board of Trustees
Dear members and friends,
At the Arbor Day Foundation, we are fortunate to build high-impact and sustainable programs even in tough economic times.
While 2010 was in many ways a year of milestones for the Foundation, surpassing one million members and planting 20 million trees in National Forests in 20 years, 2011 was more about building on that positive momentum and impact.
For example, participation in Tree Campus USA, which is made possible due to the generous support of Toyota, grew from just 74 campuses to 116, demonstrating increased environmental stewardship in America’s colleges and universities. We also saw considerable momentum to the Tree Line USA program, with 121 million households now served by utility companies that are committed to proper tree management and care.
More children than ever experience meaningful connections with nature in Certified Nature Explore Classrooms. And the generosity of members and corporate partners continues to further the positive impact of replanting trees in our nation’s forests...now approaching some 30 million trees to date.
We are grateful for the momentum we have to keep making a difference, despite a challenging economic environment. We’re especially grateful that the momentum is a direct result of loyal members and supporters all sharing in this important work.
Sincerely,
Bill Kruidenier, Chair Board of Trustees
Members and partners plant millions of trees to restore damaged forests and enrich America’s communities and countrysides.
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For example, members and supporters helped plant more than one million Jack pine trees to improve habitat for the endangered Kirtland’s warbler in Michigan’s Pere Marquette State Forest. Kirtland’s warblers are migratory songbirds that have become almost exclusively confined to Jack pine habitat in fourteen Michigan counties during the spring and summer. With the replanting of Jack pine trees, the population of singing males grew from less than 200 to 1,300, bringing them back from the brink of extinction. In Mississippi’s Smith County, the Arbor Day Foundation worked with corporate partners on replanting more than 160 acres of forests that had been damaged by Hurricane Katrina and the storm’s subsequent beetle onslaught. The Smith County forester’s goal of planting 600 longleaf pine trees per acre was easily met, with more than 100,000 of the native trees ultimately planted to help heal the fragile ecosystem in the wake of Katrina.
The Arbor Day Foundation’s more than one million members are pivotal to our shared mission of planting trees. Members plant trees
in their neighborhoods and backyards, resulting in cleaner air, better stormwater management and energy-saving shade for homes and businesses. They plant trees on their farms and ranches, protecting soil and water resources and creating new habitat for wildlife. Foundation members and corporate partners such as Enterprise Rent-A-Car, AT&T and Disney also fill an urgent need by helping to replant millions of trees in our nation’s forests. America’s forests are a treasured legacy threatened by insects, disease and devastating wildfires. But Foundation members, corporate partners and supporters continue to respond. This year alone, the Foundation has replanted 4.8 million trees through our partnerships with the U.S. Forest Service and the National Association of State Foresters, with far-reaching impact through the country.
7A young couple plants a tree in front of their home to add beauty, clean the air, control stormwater and provide energy-saving shade.
The Foundation also initiated replanting in response to the Pike National Forest’s Hayman Fire, which burned approximately 137,000 acres in what became the largest fire in Colorado history. In some areas, 100 percent of the trees were lost. Arbor Day Foundation worked with the U.S. Forest Service to plant more than 140,000 ponderosa pine and Douglasfir trees, helping to bring back life-giving habitat and protect water resources for cities and towns throughout Colorado. Wildfire at Plumas National Forest in California also caught the Foundation’s attention. In 2007, a series of lightning strikes triggered the burning of nearly 23,000 acres in two weeks. Last year, the Foundation and partners began planting 600,000 trees, including Douglasfir trees, red and white firs, incense cedars and several varieties of pine. The new trees are already mitigating the soil and soot runoff that was damaging Plumas’ water resources, which provide fresh water to Californians living both nearby and thousands of miles away.
Quick Facts� This year, members received 8,125,329 trees for
planting in their yards, acreages and neighborhoods.
� 4,822,649 trees were planted in our nation’s forests.
� 217,849 Gift Trees were distributed to members and customers.
� Trees were provided to 35,667 visitors at Arbor Day Farm’s Tree Adventure to plant at their homes and in their communities.
Tree-planting crews plant trees in dozens of Foundation forest restoration projects each year.
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With the support of our members, the Tree City USA program has strengthened and sustained urban forests in more than 3,400
communities. From the Hawaiian islands to the tip of Maine, more than 140 million Americans are living in towns and cities that pay particular attention to tree planting, care and management. As a result, these communities enjoy energy savings for homeowners and businesses, lower levels of pollution and a new sense of community pride. Communities participating in Tree City USA range from New York City, population 8 million, to New Harmony, Indiana, population 866. In New York, trees are central to PlaNYC, a blueprint for how the city can grow sustainably and enhance quality of life, while continuing to accommodate new residents. The plan outlines aggressive targets for tree planting throughout the
city, with a $391 million budget and staffing levels sufficient for achieving the ambitious vision. Target numbers include 800 new “greenstreets” and the replanting of 2,000 acres of parkland. City officials also launched a program called Million Trees NYC to track the initiative’s progress. On the program’s website, New Yorkers are encouraged to volunteer to plant trees, make a donation, or adopt a tree themselves. So far, 527,315 trees have been planted, with more on the way. The additional trees are helping New York City achieve its goal of having the cleanest air quality of any big city in the United States. In New Harmony, Indiana, the scale may be smaller and surroundings quieter, but trees are just as central to community goals. Located on the Wabash River in southern Indiana, the town served as inspiration for the naming of the “New Harmony” tree, a disease-tolerant
More than 3,400 communities reap the benefits of strong and sustainable urban forestry programs.
variety of the historic American elm. Trees line the town’s streets, intertwining with a mix of old and new buildings primarily built from wood. According to state officials, street trees provide Indiana with more than $79 million in economic benefits every year, with individual towns receiving as much as $53,000 in energy savings, improved air quality and stormwater management. The vision and effort in New York and New Harmony are examples of how Tree City USA recognition is only the beginning of urban forestry. Tree City USA is the framework for sustained urban forestry across the country. Thanks to our members and partners, the program’s impact is broad and far-reaching. More city foresters and arborists are hired. More city budgets include worthwhile investment in trees. And, millions of people are taking pride in community improvement.
The Arbor Day Foundation recognized 148 utility companies last year with the Tree Line USA designation Understanding that trees and utility lines can work together, these utilities show a commitment to practicing proper tree pruning, planting and urban forest management — and helping customers know how to plant the right trees in the right places to save energy.
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Quick Facts� The Arbor Day Foundation’s Tree City USA program,
a collaboration with the U.S. Forest Service and the National Association of State Foresters, was launched in 1976 with 42 communities in 15 states. Today, there are 3,462 Tree City USA communities with a combined population of more than 140 million people across the United States.
� In 2011, 481 communities nationwide advanced beyond the basic standards to receive Tree City USA Growth Awards, demonstrating additional improvements in local tree care.
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Quick Facts��Collectively, Tree Campus USA campuses invested
$11.9 million in campus forest management last year.
��Through the past year, the Arbor Day Foundation and Toyota have held 20 campus tree-planting events. College students, community volunteers, and professional staff planted more than 1,500 large shade trees on their campuses.
��Tree Campus USA recognition is awarded to colleges and universities that meet five core standards for sustainable campus forestry: a tree advisory committee, a campus tree-care plan, dedicated annual expenditures on their campus tree program, an Arbor Day observance and student service-learning projects.
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116 colleges and universities engage their students and neighbors to establish and maintain healthy community forests.
College campuses are an ideal home for community forests. As students feed their intellect, prepare for careers and broaden their
social networks, connecting with nature through tree planting has the potential to lay the foundation for a lifetime of environmental stewardship. Healthy trees on and around campuses provide students with a quiet space to socialize, study, or reflect. Building off the success of the decades-old Tree City USA program, the Arbor Day Foundation now recognizes campuses that practice sound tree management and care. With crucial support from Toyota, the Foundation launched Tree Campus USA in 2008. This year, 116 colleges and universities with a combined enrollment of nearly 1.5 million students received Tree Campus USA recognition. Even in its early stages, Tree Campus USA is already having a positive impact throughout the country. At Florida Gulf Coast University, tree planting has been a partnership between students
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and staff from the beginning, starting with the decision to apply for recognition. Last April, student volunteers joined with staff to plant 520 trees, creating an atmosphere where trees are no longer taken for granted. The student government will also oversee the planting of hundreds of fruit trees through it newly-launched “Food Forest” project. Keishla Negron, an environmental studies major and leader in campus tree care, remarked that tree planting instilled student pride in the campus. “Seeing the excitement in their faces when they yelled ‘we love trees’ was the best,” she said.
Florida Gulf Coast University is just one example where students are making a difference by planting trees. Thanks to the Tree Campus USA program, more and more students are getting a hands-on understanding about the myriad ways trees benefit their environment, improve communities and enhance quality of life.
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Thanks to Nature Explore, children make deep connections with the natural world as an intergral part of learning and living.
Children today are more disconnected from nature than ever, more likely to spend idle time watching television indoors than running and
playing outdoors. If current trends continue, the next generation will enter adulthood facing greater health challenges, inferior social skills and a diminished spirit of conservation.
The Nature Explore program, a collaboration of the Arbor Day Foundation and Dimensions Educational Research Foundation, offers a solution.
Nature Explore provides educators, school administrators, landscape architects and families with research-based outdoor learning opportunities for children. The Arbor Day Foundation has certified and held workshops for Nature Explore Classrooms in elementary schools, child care centers, forest visitor facilities and other public places throughout the country.
Children in Nature Explore Classrooms learn and play outdoors through experiencing the wonders of
nature. They climb and crawl through log structures and create their own works of art with acorns and pinecones. They dig mini-gardens, plant seeds and share the delight of watching flowers bloom and vegetables grow. These well-designed outdoor spaces provide real-world evidence of the enormous benefit outdoor learning opportunities provide for children.
This year, the network of Certified Nature Explore Classrooms has continued to grow in new and exciting ways.
For example:
what became the first Certified Nature Explore Classroom located at a YMCA. The Ann W. Wickman Child Development Center incorporates many natural elements, such as sliced sections of logs for children to climb and use as outdoor furniture. The local high school’s shop class built additional materials, while members of
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Quick Facts�� In 2011, design consultations were completed for 113
Nature Explore Classrooms nationwide.
�� In 177 workshops, thousands of educators were inspired to help children make deeper connections with the natural world.
�� In meeting or exceeding research-based principles for creating an effective outdoor learning space, 100 locations were recognized as Certified Nature
Explore Classrooms.
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the Kiwanis, Jaycees and Lions Clubs volunteered their time, demonstrating that the program brings community members of all ages together.
with Keep Houston Beautiful, the U.S. Forest Service and the Texas Forest Service to bring outdoor learning opportunities to children affected by Hurricane Ike. Jewel’s Learning Center, the site of the new classroom, was the recipient of an Exchange Center Makeover award from Exchange Magazine. The center drew many of its ideas for lessons and activities directly from the experiences of other classrooms in the growing Nature Explore network.
committed to building a total of 13 Nature Explore Classroom by 2012, all located at domestic violence shelters. These outdoor classrooms, lauded by civic and community leaders, are places where nurturing and healing begin – and bright examples of how planned spaces that are rich with nature can change the lives of children. One parent remarked that the classroom was an opportunity for her children to “break the cycle” and learn in a healthy, healing environment.
Explore Classroom in the state of Wyoming, was
recertified for the third year in a row in 2011. Inn owner and childcare provider Laura Stadtfeld operates both a classroom and a Nature Explore Family’s Club for children and their parents. Many former students are now passionate about nature, but always eager to return for further exploration at the Nature Explore Classroom.
Whether experiencing a Nature Explore Classroom in an inner city or in a forested arboretum, children benefit from the daily interaction with the natural world. Research has shown that these benefits have a lasting impact, especially when instilled at an early age and supported by caring adults.
Nature Explore provides a comprehensive, field-tested program to help educators, administrators and businesses move from plastic and asphalt play spaces to nature-rich environments. The program includes on-site design consultations with specially trained landscape architect-educator teams, workshops for educators and designers, a sourcebook for field-tested components to enhance outdoor learning and Nature Explore Families Club for family activities.
As the network of Nature Explore Classrooms expands, the impact on children continues to grow. More children are developing meaningful connections with nature, instilling a lifelong sense of wonder and imagination. With the foundation offered by Nature Explore, these children can grow to become the next generation of tree planters and environmental stewards.
Nature Explore Workshops for educators and designers are an important resource for learning how to appropriately connect children with nature.
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Top: Nature Explore Design Consultations result in unique Concept Plans developed for each specific location.Above: At a design workshop, landscape architects and architects learn how to create nature-filled outdoor classrooms that are changing children’s lives.
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At the heart of our namesake is Arbor Day itself. It is a day for digging holes and planting trees, for writing stories and poetry about trees just planted,
or searching for those oldest and rarest trees to care for and treasure. Arbor Day is also a day to celebrate the accomplishments of the past year and express hope for the future.
The Foundation contributes to the celebration by recognizing the inspiring work of others through our Arbor Day Awards. In 2011, we again recognized some of the unassuming heroes who work hard to advance our shared mission.
Anne Hallum, founder of the DeLand, Florida-based Alliance for International Reforestation (AIR), was presented with the J. Sterling Morton Award, the highest honor given by the Arbor Day Foundation. Hallum founded the Alliance in 1993 to improve the quality of life and livelihood of Guatemalans through tree-planting. Under Hallum’s direction, the Alliance has educated volunteers in 25 Guatemalan villages, each for a period of five years. The staff consists entirely of native residents and teaches proper tree-planting, sustainable farming and protection from mudslides. Hallum’s organization has added 3.7
million trees to the region to date.San Diego Gas and Electric was the recipient of the
2011 Arbor Day Celebration Award, bestowed on the celebration that best embodies the spirit of the tree-planting holiday. On Arbor Day, employees of San Diego Gas and Electric visited classrooms to teach students how they can help their community and develop a passion for tree-planting and environmental stewardship. They also helped students at the Lilac School in Valley Center, California, replace seven sycamore trees under power lines, demonstrating that energy safety and healthy urban forests can work together.
Other recipients included:
Hutchison, Minnesota, for helping transform his town into a robust urban forest and 31-year Tree City USA, and inspiring neighboring towns to do the same.
Iowa-based Trees Forever, for her 22 years of vision and leadership at the helm of an organization with 7,000 volunteers in 200 communities.
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After more than a century, Arbor Day continues to embody the vision of J. Sterling Morton.
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providing quiet open space for artists and writers on a northeast Wyoming ranch.
in planting thousands of trees along Interstate 70, in partnership with Eli Lilly and Company.
to positive outcomes in struggling neighborhoods through tree-planting.
Earth Award for its partnership with the Arbor Day Foundation on special projects, particularly its support of the Rain Forest Rescue program by purchasing 200,000 pounds of Arbor Day shade-grown coffee.
These efforts give life to Arbor Day founder J. Sterling Morton’s own words from years ago: “The cultivation of flowers and trees is the cultivation of the good, the beautiful, and the ennobling in man, and for one, wish it to become universal.”
Quick Facts
Alabama Last full week in February
Alaska Third Monday in May
Arizona Third Friday in March
Arkansas Third Monday in March
California March 7-14
Colorado Third Friday in April
Connecticut Last Friday in April
Delaware Last Friday in April
District of Columbia Last Friday
in April
Florida Third Friday in January
Georgia Third Friday in February
Hawaii First Friday in November
Idaho Last Friday in April
Illinois Last Friday in April
Indiana Last Friday in April
Iowa Last Friday in April
Kansas Last Friday in April
Kentucky First Friday in April
Louisiana Third Friday in January
Maine Third full week in May
Maryland First Wednesday in April
Massachusetts Last Friday in April
Michigan Last Friday in April
Minnesota Last Friday in April
Mississippi Second Friday
in February
Missouri First Friday in April
Montana Last Friday in April
Nebraska Last Friday in April
Nevada Last Friday in April
New Hampshire Last Friday in April
New Jersey Last Friday in April
New Mexico Second Friday in March
New York Last Friday in April
North Carolina First Friday following
March 15
North Dakota First Friday in May
Ohio Last Friday in April
Oklahoma Last full week in March
Oregon First full week in April
Pennsylvania Last Friday in April
Rhode Island Last Friday in April
South Carolina First Friday
in December
South Dakota Last Friday in April
Tennessee First Friday in March
Texas Last Friday in April
Utah Last Friday in April
Vermont First Friday in May
Virginia Last Friday in April
Washington Second Wednesday
in April
West Virginia Second Friday in April
Wisconsin Last Friday in April
Wyoming Last Monday in April
National Arbor Day
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Tropical Storm Agatha hit Central America hard. Though weak in force, the 2010 tropical cyclone resulted in massive flooding in Guatemala and
neighboring countries, taking a catastrophic toll on both the people and the land. Without a large-scale tree recovery program, hundreds of thousands of people were at further risk of personal or property damage due to mudslides. Though exacerbated by the storm, many of these environmental challenges stemmed from centuries of disregard for the land, particularly due to logging and mass agriculture. Overcoming logistical and geographical challenges, the Arbor Day Foundation worked with the Nature Conservancy and on-site partner Vivamos Mejor, an organization aimed at improved living conditions in Latin America, on large-scale tree planting and recovery. Due in large part to the generous support of Arbor Day Foundation members, Vivamos Mejor
planted more than one million trees and stabilized the slopes around Guatemala’s beautiful Lake Atitlan. Throughout its efforts, Vivamos Mejor coordinates closely with local villagers, building broad support and an understanding of the link between healthy forests and healthy communities. Nearly 1,800 men and women in 20 communities participated in planting trees after Tropical Storm Agatha. Many now operate their own tree nurseries and will be able to continue conserving and taking care of the land for years to come. The Rain Forest Rescue program is also advanced through the Arbor Day Foundation’s shade-grown specialty coffee. The coffee program fits perfectly with the Foundation’s goal of empowering local residents to make their own lives more sustainable, while improving their economic opportunity. The farm families growing Arbor Day Specialty Coffee earn an
Through Rain Forest Rescue, communities and families are
being helped to help themselves while preserving rain forests.
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above average wage and are better able to pay for school and health care for their families. Preserving rain forests, rather than mass-producing coffee beans under direct sunlight, preserves critical habitat for plants, birds and mammals in Central and South America, on top of the numerous direct benefits for people. A study released last year in the journal “Forest and Ecology Management” confirmed what Arbor Day Foundation partners and supporters have already seen up-close: community-managed forests have a better chance of survival than areas that are simply closed off and protected. This philosophy of self-empowerment will continue to guide the Rain Forest Rescue program.
Thanks to Rain Forest Rescue donors and the cooperation of Arbor Day Foundation’s partners, the residents of Latin America’s rain forests are receiving help to protect their ancestral forests while assuring a better future for themselves and their children.
Quick Facts��Rain forests cover about 2 percent of the planet’s
surface and yet are home to half of the earth’s plant and animal species.
��Rain Forest Rescue preservation work has included 58 projects in 7 countries.
��Seventy percent of the plants identified by the National Cancer Institute as useful in the treatment of cancer are found in rain forests.
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Through education and communication, Americans learn how trees save energy, reduce soil erosion and clean our waterways and air.
Public servants in the U.S. Forest Service perform the herculean task of managing and protecting America’s precious national forests,
reminding us that land conservation is ultimately about people rather than programs.
To that end, the Arbor Day Foundation’s Conservation Trees initiative stresses personal responsibility for environmental stewardship, reminding farmers, ranchers and landowners that private property and conservation can go hand-in-hand. As writer Henry David Thoreau put it, “What is the good of having a nice house without a decent planet to put it on?”
Quick Facts� According to the U.S. Forest Service, 50 million shade
trees planted in strategic, energy-saving locations could eliminate the need for seven 100-megawatt power plants.
��A total of 104,000 Foundation members were engaged this year in the Hazelnut Project.
��Trees improve water quality by reducing stormwater runoff and erosion, and removing harmful chemicals from the soil – preventing them from running into streams and rivers.
20 Lied Lodge & Conference Center overlooks the Hazelnut Research Field at Arbor Day Farm.
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Raymond Plank, founder of the Ucross Foundation, understands this. He has planted more than 15,000 trees and shrubs at his northeast Wyoming ranch, allowing for native wildlife like the mule deer and antelope to return.
Other farmers and ranchers are embracing the Conservation Trees program, too. They plant trees along rivers and streams as riparian buffers, preventing soil erosion and keeping water supplies clean, or plant windbreaks alongside cropland to prevent wind damage from similarly eroding soil and depleting moisture. In both cases, they are relying on conservation best-practices to care for our abundant earth for their benefit and the benefit of future generations.
The Arbor Day Foundation is also furthering conservation through the Hazelnut Project. The Foundation and its Hybrid Hazelnut Consortium partners – Rutgers University, Oregon State University and the University of Nebraska – are developing blight-resistant hybrid hazelnuts with the ability to thrive and grow in a variety of soils and climates. These flood and drought-resistant crops absorb carbon dioxide, helping to mitigate the adverse impacts of climate changes. Beginning next fall, improved next-generation hybrid seedlings that represent the research efforts by Foundation members and Consortium partners will begin growing at the Arbor Day Farm – and reach members’ backyards soon thereafter.
An Arbor Day Foundation member looking after his hazelnut bushes.
The benefits of hazels as a perennial woody crop are profound. Deep roots anchor nutrient-rich topsoil. The leafy bushes are ideal for absorbing carbon dioxide through much of the year while the wood and root systems naturally sequester the carbon. The plants are drought and flood resistant to withstand climate changes. And protein-rich nuts provide a healthy source of nutrition for our expanding population. One day, they could help feed hungry nations.
Enthusiastically participating in the Hybrid Hazelnut Project is an example of how Foundation members and partners share an affluence of the spirit in conserving our natural resources.
Building programs that are high-impact – life-changing, large-scale, partner-engaging and sustainable – begins at Arbor Day Farm.
The 260-acre National Historic Landmark is part of the original estate of Arbor Day founder J. Sterling Morton. It is where the Arbor Day Foundation’s mission truly comes to life.
Arbor Day Farm offers the opportunity for all ages to connect with nature and broaden their imaginations. The first public Nature Explore Classroom, a partnership between the Arbor Day Foundation and Dimensions Educational Research Foundation, offers research-based learning opportunities for children in the outdoors, while attracting educators and design professionals from around the world for inspiration. Tree Adventure’s interpretative trails and exhibits are also a highlight for visiting children and families.
Arbor Day Farm offers guided tours of its vineyards, greenhouses and historic walking orchards, as well as tours specially designed for children, adults and teachers.
At Lied Lodge & Conference Center, sustainability and conservation are built into every visitor’s experience. It ranges from the basics – easy-to-use recycling bins and a linen and towel re-use program that saves thousands of gallons of water and detergent annually – to high-impact practices such as sustainable food and energy conservation. In the Lied Lodge Dining Room, entrees are prepared using the freshest ingredients possible, often straight from the fields and orchards of Arbor Day Farm. And, Lied Lodge staff sources locally from Nebraska family farmers and ranchers, bringing both environmental and economic benefits to the region.
Conservation organizations seeking a change in pace and scenery for key meetings are invariably drawn to Lied Lodge. The World Forum Foundation’s Nature Action Collaborative for Children attracted 70 teams from 32 nations last year to plan for connecting children to the outdoors. The U.S. Forest Service met to discuss fire, insect and water protection issues where federal, state and private lands overlap. The
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Visitors from around the world experience conservation principles and the wonders of nature at Arbor Day Farm.
Natural Resources Conservation Service, The Nature Conservancy, urban foresters and outdoor educators also use Lied Lodge.
Cormac Flynn, the state policy and program planning vice president for the League of Conservation Voters Education Fund, called his group’s meeting at Lied Lodge a “tremendous triumph” adding: “We were so happy to be able to enjoy the kind of atmosphere we are trying to protect.”
The ultimate worldwide impact of the people who meet here is clean air and clean water, the conservation of resources and wildlife, sustainable forestry and community improvement, and a renewed commitment to inspire future generations of environmental stewards.
Family and friends, too, connect at Arbor Day Farm – for reunions, weddings, vacations, and weekend getaways. Experiences at Lied Lodge include spa services and indoor Olympic-pool swimming. The Tree Adventure attraction, walking trails and guided tours of Arbor Day Farm’s orchards, vineyards and greenhouses help guests have fun and leave rejuvenated.
Quick Facts��Nearly 250,000 people from six continents visited Arbor
Day Farm this year, where they witnessed conservation in practice at every turn.
��Visitors who touch, see, taste and learn the value of nature transfer those practices into their personal lives – including the 35,667 who carried trees home from the greenhouse to plant, nurture and celebrate.
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STATEMENT OF FINANCIAL POSITION June 30, 2010 With Comparative Totals as of June 30, 2010 ASSETS
Current Assets: Cash and cash equivalents $ 2,847,337 $ 4,378,369 Investments 1,204,340 1,011,545 Accounts receivable 1,113,670 1,460,629 Grants receivable 489,007 301,411 Prepaid expense 337,472 404,947 Inventory 835,580 937,931 Total current assets 6,827,406 8,494,832
Property and Equipment 25,814,674 23,654,183 Other Assets: Endowment fund 169,734 141,587 Construction in progress 415,432 2,379,204 Other assets 47,998 53,409 Total other assets 633,164 2,574,200
Total assets $ 33,275,244 $ 34,723,215 LIABILITIES AND NET ASSETS Current Liabilities: Accounts payable and accrued expenses $ 3,883,601 $ 5,049,278 Current portion of notes payable 300,490 286,898 Current portion of capital lease obligations 6,210 6,210 Deferred revenue 2,082,045 2,683,670 Total current liabilities 6,272,346 8,026,056 Long-Term Debt, Net of Current Portion: Notes Payable 735,987 1,059,664 Capital lease obligations 4,353 9,884 Total long-term debt 740,340 1,069,548
Other Liabilities: Annuities payable 766,918 694,148 Total liabilities 7,779,604 9,789,752
Net Assets: Unrestricted: Designated for endowment purposes 1,640,629 1,383,339 Undesignated 23,708,471 23,255,466 Temporarily restricted 91,478 249,916 Permanently restricted 55,062 44,742 Total net assets 25,495,640 24,933,463
Total liabilities and net assets $ 33,275,244 $ 34,723,215
Revenues: Membership dues $ 14,203,550 $ - $ - $ 14,203,550 $ 13,516,849 Contributions 9,420,553 - 2,100 9,422,653 10,419,555 Trees for America 3,592,675 - - 3,592,675 3,624,080 Program grant income 2,067,378 - - 2,067,378 1,204,062 Arbor Day Farm income 8,178,880 - - 8,178,880 7,673,306 Arbor Day Coffee income 1,209,861 - - 1,209,861 881,017 Other income (loss) 1,021,283 (3,130 ) 8,220 1,026,373 894,974 Total revenues 39,694,180 (3,130) 10,320 39,701,370 38,213,843 Net assets released from restrictions 155,308 (155,308) - - -
Total revenues and net assets released 39,849,488 (158,438) 10,320 39,701,370 38,213,843
Expenses: Program services: Tree City USA 1,688,039 - - 1,688,039 1,567,842 Arbor Day/Youth Education 2,675,439 - - 2,675,439 2,720,769 Conservation Trees 498,605 - - 498,605 536,178 Rain Forest Rescue 3,382,069 - - 3,382,069 2,617,317 Trees for America 14,278,373 - - 14,278,373 14,420,395 Arbor Day Farm 11,224,442 - - 11,224,442 11,015,674 Conference programs 675,105 - - 675,105 475,593 Supporting activities: General and administrative 920,773 - - 920,773 862,445 Membership development 2,479,714 - - 2,479,714 2,460,996 Fundraising 1,316,634 - - 1,316,634 1,291,107
Total expenses 39,139,193 - - 39,139,193 37,968,316
Change in net assets 710,295 (158,438) 10,320 562,177 245,527
Net Assets at Beginning of Year 24,638,805 249,916 44,742 24,933,463 24,687,936
Net Assets at End of Year $ 25,349,100 $ 91,478 $ 55,062 $ 25,495,640 $ 24,933,463
2011
INDEPENDENT AUDITORS’ REPORT
To the Board of TrusteesArbor Day FoundationLincoln, Nebraska
�������������������� ������������������ ����������� �� �� ����� ������� ���� ������ ��� ��� ������� ������ �������!"#�%"&&#�������������������������� ��������#������ �����'������#���������* +��� �������������������.��;������������������������������������ ������� ������� ���� �<������������.��=������� ���������� ��'��������� �� �� �������������������������������� �� ������.��;����� ����������������� ����������� ���� ������������������ ��������� ������� ���� �<��%"&"���������statements and, in our report dated September 10, 2010, we expressed an ��>������ �� �� ���� �������������.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to �������������� ��������? ���������������@������#�������������Comptroller General of the United States. Those standards require that we plan ������� ������������ � ��������� ������������������ ���+�������������������statements are free of material misstatement. An audit includes examining, on �����������#������������ ����������� ����������� ��������������������statements. An audit also includes assessing the accounting principles used ��������������������������������������#����+��������������������� ���������������������������������� �.����������������� ��������� ������reasonable basis for our opinion.
K�� ��� �� �#��������������������������������� ��� ����������������#�����������������������#�������������� �� �� ����� ������� ���� ����� �������!"#�%"&&#�������������������������������������������* +��� ��������������������in conformity with accounting principles generally accepted in the United States of America.
Micek & Crouch, P.C.Lincoln, NebraskaSeptember 26, 2011
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2011 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2010
STATEMENT OF ACTIVITY For the Year Ended June 30, 2011 With Comparative Totals for the Year Ended June 30, 2010
����������� ���������������� �������������������������� �������������
20102011
2010
Unrestricted Temporarily Restricted Permanently Restricted Total Total
24
Items of Expense: Salaries, payroll taxes and � � ���� �����������Contract laborAdvertising and promotionPrinting, publications, mailing and photographyTravel and meetingsProfessional services
OccupancyRecognition materialProfessional developmentTaxesRepairs and maintenanceTree purchases and shipping expenses
Rain forest preservationInventory purchasesComputer servicesBank chargesInsuranceTelephone and utilities
Postage=������������Operating suppliesDues and subscriptionsInterest expenseBad debts
�������� ������� ����� �Delivery expenseRental expenseMiscellaneous
Total for year ended June 30, 2010
Total for year ended June 30, 2009
$ 626,4621,877
13,746
193,53956,904
241,441
-14,4564,334
57612,096
54,170
- 210,593
8,519-
4,66416,666
158,7881,921
10,194300
--
39,8165,3612,4519,165
$ 1,688,039
$ 1,567,842
$ 747,9321,214
17,565
626,35869,525
450,894
-1,8968,562
1912,293
29,344
-59,31534,373
-8,137
13,854
395,325882
1,297452
--
$ 144,51127,202
5,81118,678
$ 2,675,439
$ 2,720,769
$ 166,004--
173,2992,6118,145
--
1,371-
1,413
8,500
--
2,382-
6661,744
105,458279
----
19,9083,455
9462,424
$ 498,605
$ 536,178
$ 155,160-
9,425
1,124,1806,028
17,682
--
1,545-
1,413
57,730
83,4781,293,023
4,797273666
2,465
555,57221656
584--
14,93149,947
9461,952
$ 3,382,069
$ 2,617,317
$ 2,630,381221,945426,668
3,347,14972,719
203,527
-264
13,269585
97,496
4,188,145
-140,833193,236217,32744,645
125,122
1,879,35711,39025,6882,231
55,737-
134,380127,35175,63043,298
$ 14,278,373
$ 14,420,395
$ 5,587,46369,229
224,358
143,12386,61850,642
-16,69421,711
297,387320,316
-
-1,706,828
49,260175,443140,647557,103
79,40515,818
532,50312,23815,617
707
932,5755,287
111,21072,260
$ 11,224,442
$ 11,015,674
$ 332,134--
33,124203,50317,503
-2,6212,8711,413
-
--
7,447136666
2,561
8,444545
3,208300
--
29,86245
26,5842,138
$ 675,105
$ 475,593
$ 10,245,536294,265691,762
5,640,772497,908989,834
-33,31053,413
301,438446,440
4,337,889
83,4783,410,592
300,014393,179200,091719,515
3,182,34931,051
572,94616,10571,354
707
1,315,983218,648223,578149,915
$ 34,422,072
$ 33,353,768
$ 592,988161
10,816
62,83212,40216,337
-42,9875,140
32,1117,067
-
--
7,147273
3,3328,722
4,5101,045
16,4156,3712,910
-
74,6564,8562,8374,858
$ 920,773
$ 862,445
$ 333,449-
26,524
1,327,4181,558
16,721
--
2,741-
7,425
169
-3,2244,765
-3,3328,722
644,798577
7---
39,81656,552
946970
$ 2,479,714
$ 2,460,996
$ 659,802186
12,112
267,84618,65642,256
-364
4,9702,9937,067
59,763
--
2,389-
3,33213,197
169,083644
1,385922
--
34,83911,430
9462,452
$ 1,316,634
$ 1,291,107
$ 11,831,775294,612741,214
7,298,868530,524
1,065,148
-76,66166,264
336,542467,999
4,397,821
83,4783,413,816
314,315393,452210,087750,156
4,000,74033,317
590,75323,39874,264
707
1,465,294291,486228,307158,195
$ 39,139,193
$ 11,864,619 235,926 505,131
7,001,838 307,798
1,153,326
20,178 269,231 49,995
309,614 357,788
5,321,418
125,598 2,209,806
284,146 395,743 191,392 718,341
3,824,219 33,791
689,298 27,941 98,255
191
1,345,434 296,934 200,053 130,312
$ 37,968,316
Tree CityUSA
Arbor Day/Youth
EducationConservation
Trees
RainForestRescue
Trees for America
Arbor Day Farm
ConferencePrograms
TotalProgramServices
Generaland
AdministrativeMembershipDevelopment
FundRaising
TotalYear Ended
June 30, 2011
TotalYear Ended
June 30, 2010
STATEMENT OF FUNCTIONAL EXPENSESFor the Year Ended June 30, 2011 With Comparative Totals For the Year Ended June 30, 2010
Program Services Support Activities
Cash Flows From Investing Activities: Purchase of investments (235,000 ) (105,000 ) Proceeds from sale of property and equipment - 6,383 Capital expenditures for property and equipment (1,662,013 ) (1,468,887 )
� � � Z��������* +��� ������������������ ��&#[\]#"&!���� ��&#^_]#^"`���
Cash Flow From Financing Activities: � j� ������� ���������������� �z���� �&&&#\%%���� Payments toward debt retirement (315,616 ) (354,175 ) Proceeds from contributions and grants restricted for capital expenditures - 72,535 � � � Z��������* +��� ������������������ ��!&^#_&_���� �&_\#]&[����� Net increase (decrease) in cash (1,531,032) 402,806 Cash and Cash Equivalents at Beginning of Year 4,378,369 3,975,563 Cash and Cash Equivalents at End of Year $ 2,847,337 $ 4,378,369
Supplemental Disclosures: Cash Paid During the Year for: Interest $ 74,627 $ 104,293
Cash Flows From Operating Activities: Change in net assets $ 562,177 $ 245,527 Adjustments to reconcile to net cash provided by operating activities: Contributions and grants restricted for long-term purposes - (72,535 ) Depreciation 1,465,294 1,342,270 � � �� ����� �� �z� � !#&_%� � Z������������������� ��� ������������� `%#%"^� � �^#&
Note 2 – Investments:
Investments are charitable gift annuities consisting of mutual funds. The investment ������#����� ����� �������������������������#�������� ������������������������period in which the investments are received. The fair value of these investments as of June 30, 2011 and 2010, was as follows:
Note 3 – Property and Equipment:
Property and equipment as of June 30, 2011 and 2010, consisted of the following:
LandBuildingsLeasehold improvementsFarm improvementsOrchardsComputer hardwareLied Lodge and Conference Center equipmentFurniture and equipmentComputer softwareTraveling exhibit
Total cost Less--Accumulated depreciation
Total property and equipment
Depreciation expense for the years ended June 30, 2011 and 2010, was $1,465,292 and $1,342,270, respectively.
Note 4 – Other Assets:
Other assets as of June 30, 2011 and 2010, consisted of the following:
Contributions receivable from charitable trusts (Note 5)Equity in cooperative
Note 5 – Split-Interest Agreements:
The Foundation has entered into irrevocable agreements with donors whereby in exchange for the gift from the donor the Foundation is obligated to provide an annuity to the donor or ������������������������� ������������������ �������.
For these agreements, where the Foundation is not the trustee, the Foundation has recorded ������������� ������ ��������������� �������������������+���������������������������interest in the agreements.
���������� �������!"#�%"&&����%"&"#� ������z������������������������ ������ ���������������������� �� +�|
Assets included in property and equipment where the Foundation is trustee
Contributions receivable from charitable trusts
K�� ����� ������� ������� ���������� value of split-interest agreements
Note 6 – Deferred Revenue:
Deferred revenue consists of unearned program support and royalties. The Foundation will record program revenue in the future to match the future costs of providing these program services.
Note 7 – Revolving Credit Note Payable and Letter of Credit:
The Foundation has secured a revolving credit note agreement with Union Bank and Trust, Lincoln, Nebraska, which provides it may borrow up to $2,000,000 at the bank’s variable interest rate. The revolving credit note is supported by an agreement which provides for certain restrictive covenants which includes limitations on disposal of certain property and assets and maintenance of certain ratios. The note is secured by certain real property, all accounts, notes, pledges and bequests, receivables, rights to payment, inventory, machinery ����>������#��������������'������������������������������������.���� ������ �� +��on the revolving credit note as of June 30, 2011 and 2010, were $-0- and $-0-, respectively. The revolving credit note expires January 31, 2012, and is renewable at the bank’s discretion.
In addition, the Foundation has established an irrevocable letter of credit of $1,200,000, for securing payment drawn in favor of a USDA Forest Service agreement. The letter of credit expires December 31, 2011, and is renewable annually. The fee for the letter of credit is waived. There was no outstanding balance under the letter of credit as of June 30, 2011.
NOTES TO FINANCIAL STATEMENTSFOR THE YEARS ENDED JUNE 30, 2011 AND 2010
Z �����&�}� @������� ��@����������� ������j ����|
;������ ������� ���� ��+����� �� ��������������Z�����~��Z ��� ���� �� ��� ������ ��September 3, 1971. The purpose of the Foundation is to engage in educational and charitable ��������������� ���������� � ��������������� ���������� ����� ���������������� ����� ������#��������#���������������������������������+ ��z+���� ����� ����������� ������������������������������������������������ ��������� ������������� ���������������Arbor Day Farm, the estate of Arbor Day’s founder J. Sterling Morton.
����� ����� ������}�;���������������������� ��������� ������� ���� �������������������� ������������������.��;��������������� ������� ������ �� +���������������� +�� ������������������������ �������������������������� ����������.
Basis of Presentation – Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards �@��@��Z .�&&]#���������@���������� ��Z �z� �zj� ���=������� ��.�������@��@�Z .�&&]#������ ���� ������>����� ���� ����� ���� ���������������������� �� �������������according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
j� ������ �?���}���� �� ������ ������ ������������ ����������������� �������������period received and as assets, decrease of liabilities, or expenses depending on the form of the ��������������.��� �� ������ ������ ������������ �����+��������� �� ��� ��+����they depend are substantially met.
Restricted and Unrestricted Revenue and Support – Donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose ������� ������� ������������ ����������������������������������������� ����������������assets and reported in the Statement of Activity as net assets released from restrictions.
Cash Equivalents – Cash equivalents consist of investments with original maturities of 60 days ������.������������� ���� ������ ��������������+��� ��������������� ����_"������������������������������.
Risk Concentration – As of June 30, 2011 and 2010, the Foundation’s cash and investment balances at particular institutions exceeded federally insured limits by $2,840,568 and �`#&\"#""%#������������.����� �������!"#�%"&&����%"&"#����������������+����� �����������+���federal agency bonds.
Investments – Investments in marketable securities with readily determinable fair values and ������������������������������������� ��������������������������������������� ����������� �� �.�������������������� ����������������������������������������.��K����������income and gains restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in which the �� ������������������ ����.
Accounts Receivable – The Foundation’s management closely monitors outstanding accounts receivable and charges off to expense any balances that are determined to be uncollectible. At June 30, 2011 and 2010, the Foundation considered all remaining accounts receivable to be fully collectible.
�K����� ���}�K����� ������������������� +��� ��� ��� �����~����������������������z�#�����z ���method.
j� �����#��>������������������ ��}�j� ����������>���������>��� ����������������+���� ����� ��������������� ��������'��������.��� ������� �����#�������������� ���#����������������������������+����������.���������� �� �������������>����������� ���over the estimated useful lives of the respective assets on a straight-line basis. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed �� ��������� ����#��������������������� ��� �������� �����������@��������� ���������� ��������� .��;���� ��� ��������������������������������� ��� ���������������������������+�������������������������������.
Accrued Vacation Liability – Accumulated unpaid vacation pay is accrued in the Foundation’s ������������������.����������!"#�%"&&����%"&"#����������� �������� ������ ��`&^#`[&�����$400,156, respectively.
Advertising – Advertising costs are charged to expense as incurred. For the years ended June 30, 2011 and 2010, the Foundation’s advertising costs totaled $741,214 and $505,131, respectively.
Donated Assets – Donated marketable securities and other noncash donations are recorded as contributions at their estimated fair values at the date of donation.
���������}�;����������� �� ������������������������ �� �����+������ ���������������generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Functional Allocation of Expenses – The costs of providing various programs and other activities ������������������� ��������� ���������������@��������� ������������������@��������� ��Functional Expenses. Accordingly, certain costs have been allocated among the programs and ���� ��������������������.
� �����������������K�� ���� ��}�;������������������������������������� ����������������� ����������� ���� ����� ��������� ��������������������.��@������ ���� �� ���� ����������������������� �� ������������������� ����� �� �����+������ ���������������generally accepted in the United States of America. Accordingly, such information should be ������� ������ ��+�������� ���� �<���������������������� ��������������������!"#�%"&"#��� ��+������������������� ���� ��+�������.
Income Tax Status – The Foundation is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to the Foundation’s tax-exempt purpose is subject to taxation as unrelated business income. In addition, ����� ���� ��>�������� ����������������� ������ ������ �������@��� ��&]"����&������������������������������� ������� ���������� ������������ ���� �������@��� ��^"\����%�.
Subsequent Events – The Foundation has evaluated subsequent events through September 26, %"&&#�+�������������������������������������+��������.
$ 1,419,126 $ 1,419,126 27,826,950 27,349,933 15-50 years 125,082 125,082 20 years 1,466,234 1,464,538 5-31 years 114,762 103,074 20 years 2,006,178 1,383,386 5 years
2,844,103 2,844,103 5-10 years 2,583,096 2,537,112 5-8 years 2,905,127 1,831,797 5-10 years 844,724 844,724 10 years
42,135,382 39,902,875
16,320,708 16,248,692 $ 25,814,674 $ 23,654,183
2011 2010Estimated
Life
2011 2010 Charitable Gift Annuities $ 1,204,340 $ 1,011,545
2010
$ 120,000
51,128
(76 )
2011
$ 120,000
47,998
(3,130)
2010
$ 51,1282,281
$ 53,409
2011
$ 47,998-
$ 47,998
26
Note 8 – Long-Term Debt:
Long-term debt as of June 30, 2011 and 2010, consisted of the following:
Note payable to Union Bank and Trust, Lincoln, Nebraska, with 5.95 percent interest. Secured by real estate in Lincoln, Nebraska. Payable in monthly installments of $20,267 with the balance of principal due on April 4, 2013.
Note payable to Microsoft Corporation with an imputed interest rate of 6.0 percent. Secured by computer software. Payable in monthly installments of $6,045, maturing on March 20, 2012.
Note payable to Farmers Bank, Nebraska City, Nebraska, with 7.25 percent interest. Secured by real estate in Nebraska City, Nebraska. Payable in monthly installments of $2,406, maturing November 6, 2017.
Non-interest bearing note payable to the City of Lincoln for $60,000 with a discounted value of $44,000 at a stipulated interest rate of 6.5 percent. Secured by real estate in Lincoln, Nebraska. Payable in monthly installments of $500, maturing November 30, 2017.
Note payable to John Deere Credit, with a 6.75 percent interest rate. Rate secured by equipment in NebraskaCity, Nebraska. Payable in monthly installments of $548, maturing August 28, 2011.
Note payable to John Deere Credit, with a 6.90 percent interest rate. Secured by equipment in Nebraska City, Nebraska. Payable in annual installments of $18,561, maturing July 1, 2012.
Note payable to Downtown Civic Ventures, with a 2.15 percent interest rate. Secured by real estate in Lincoln, Nebraska. Payable in annual interest only installments of $753, maturing June 1, 2014.
Note payable to Arbor Bank, Nebraska City, Nebraska, with 5.75 percent interest. Secured by equipment in Nebraska City, Nebraska. Payable in monthly installments of $542, maturing on April 16, 2015.
Less--Current portion
Long-term debt is scheduled to be retired as follows:
Year ending June 30, 2012 Year ending June 30, 2013 Year ending June 30, 2014 Year ending June 30, 2015 Year ending June 30, 2016 Thereafter Total
Note 9 – Capital Leases:
;���� ���� ��������������� �� ��������������������>���������������������������'��-ing in 2013. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are �� ����� ������������������� ����������.���� ����� �� ��������������������������������������������� ���'������� �����������������%"&&.
Following is a summary of property held under capital leases:
=������>������Restaurant Equipment
Less: Accumulated depreciation
Minimum future lease payments under capital leases as of June 30, 2011, were as follows:
June 30, 2012June 30, 2013
Net minimum lease paymentsAmount representing interest
Present value of net minimum lease payments
Note 10 – Designated and Restricted Net Assets:
The Board of Trustees has designated unrestricted net assets as follows:
Contributions designated for endowment
Other endowment purposes
Temporarily restricted net assets as of June 30, 2011 and 2010, are available for the following purposes:
Contribution Receivable - Charitable Trusts���������j� ����Orchard RestorationRooftop Garden
Permanently restricted net assets as of June 30, 2011 and 2010, are available for the following purposes:
Endowment purposes
Note 11 – Program Grants:
During the years ended June 30, 2011 and 2010, grant income consisted of the following:
Grant Source Grant Purpose
Government:U.S. Department of Training Academy Agriculture Tree City USA Public Service Ads� ���������� �� ���� City Teams
U.S. Department of Housing and Urban Development Block Grant
Government Grant Income
Private:Toyota Foundation Educational ProgramsHome Depot Foundation Educational ProgramsMary Kay Others
Private Grant Income
Total Grant Income
Note 12 – Other Income:
Other income listed on the Statement of Activity is detailed as follows:
List rental incomeEducation material salesTree City USA material salesConference and trainingRental incomeGain (loss) on investmentsInterest incomeGain on sales of property and equipmentOther income under $25,000
Total other income
Note 13 – Income Taxes:
The Foundation has a net operating loss carryforward that may be offset against future taxable income. If not used, the carryforward will expire between now and June 30, 2031. The loss carryforward at June 30, 2011, totals $16,843,645. No net operating � ��������������� ���������� ��� ��'���� ��������� ��#�� ������� ����� +����������been established.
$ 6,210 4,853
11,063 (500 )
$ 10,563
2010
$ 1,261,073
122,266
$ 1,383,339
2011
$ 1,497,578
143,051
$ 1,640,629
2011
$ 51,12837,59317,575
143,620
$ 249,916
2010
$ 47,99837,5935,887
-
$ 91,478
2010
$ 44,742
2011
$ 55,062
2010
$ 134,994255,608
-79,900
-
-
470,502
559,000
156,090-
18,470
733,560
$ 1,204,062
2011
$ 279,909234,445140,00079,90443,656
22,462
800,376
1,079,000
120,00026,00042,002
1,267,002
$ 2,067,378
27
2011
$ 745,637
53,066
147,314
31,395
-
15,791
21,000
22,274
$ 1,036,477
300,490
$ 735,987
$ 300,490572,14253,24733,47532,29244,831
$ 1,036,477
2010
$ 936,417
120,215
164,658
35,213
1,087
33,658
28,000
27,314
$ 1,346,562
286,898
$ 1,059,664
$ 105,272 26,767
132,039
(62,196 )
$ 69,843
2011 $ 421,408 108,981 58,588 166,747 110,243 141,523 3,785 - 15,098 $ 1,026,373
2010 $ 544,088 135,917 59,533 57,150 56,429 11,153 6,929 6,383 17,392 $ 894,974
Note 18 – Fair Value Measurements:
Fair values of assets measured on a recurring basis at June 30, 2011 and 2010, are as follows:
Fair values for charitable gift annuities are determined by reference to quoted market prices and other relevant information generated by market transactions. The fair value of the ������������������������������������������������ ���'�������������������* +�.
���������������������������� ���������������������������������� ����������������(Level 3):
Note 14 – Leases:
The Foundation has an agreement to lease Steinhart Lodge from the City of Nebraska City for a term of 99 years commencing June 1, 1985, for the total sum of $1. The Foundation has the option to extend the agreement for an additional term of 99 years for the total sum of $1. Since the lease term extends beyond economical life of the asset, the Steinhart Lodge lease has been shown as a capital addition at a value of $297,750. Steinhart Lodge is part of Arbor Day Farm.
The Foundation leases real property under two cancelable operating lease agreements. Net lease expense for the real property was $26,400 for each of the years ended June 30, 2011 ���%"&"#������������.�������������������������#���������������������`%#"""�������*�� ������������������������� �������������!&#�%"\[.��;���� ���� ��������������������operating lease to another party under the same terms as the Foundation’s. Under the second agreement, lease payments are $26,400 annually through December 31, 2047. ;���� ���� ���������� ���������� ������>������������ ���������������+�����'����in June 2014.
Total equipment rental expense amounted to $228,307 and $200,053 for the years ended June 30, 2011 and 2010, respectively.
��������������������������������� ������� �� +��������������������� �� +�|
Year ending June 30, 2012 $ 92,775Year ending June 30, 2013 42,562Year ending June 30, 2014 33,835 Year ending June 30, 2015 28,359Year ending June 30, 2016 26,400
Note 15 – Retirement Plan:
;���� ���� ������������������������ ������ �����������������>�����������Section 401(k) of the Internal Revenue Code. The plan covers full-time employees age twenty-one and over with one year of service. During the years ended June 30, 2011 and 2010, the Foundation contributed up to three and six percent of gross salaries, respectively. Gross salaries exclude compensation in excess of $100,000 for purposes of determining the Foundation’s contribution. Employees may make contributions to the plan up to the maximum amount allowed by the Internal Revenue Code. Plan expenses were $192,344 and $346,282 for the years ended June 30, 2011 and 2010, respectively.
Note 16 – Allocation of Joint Costs:
The Foundation conducted activities which incurred joint costs for distribution of direct mail fundraising appeals and educational information, and corporate marketing activities. These costs were allocated as follows:
Total joint costs allocated to program servicesTotal joint costs allocated to fundraising
Note 17 – Related Party Transactions:
The Foundation and Dimensions Educational Research Foundation (Dimensions) collaborate on the creation of educational activities and programs that support the Nature Explore program. In connection therewith, for the years ended June 30, 2011 and 2010, the Foundation has paid Dimensions for research and program implementation services, $571,250 and $526,000, respectively. These are considered related party transactions as the �� ���� ������� ���� �<��������'������� �������������'����������� �� ������� ��.
2011 2010
$ 2,100,284 $ 2,388,091 701,367 630,563
$ 2,801,651 $ 3,018,654
Contribution Receivable–Charitable Trusts
June 30, 2009 $ 51,204 Change in value of trusts (76)
June 30, 2010 51,128 Change in value of trusts (3,130 )
June 30, 2011 $ 47,998
The change in value of the split-interest agreement is attributable to the revaluation of the contribution receivable (charitable trusts) based on applicable mortality tables and current market conditions and is included in the change in temporarily restricted net assets for the year ended June 30, 2011.
June 30, 2010Charitable Gift Annuities $ 1,011,545 $ 1,011,545 $ -Contribution Receivable Charitable Trusts 51,128 - 51,128
Total $ 1,062,673 $ 1,011,545 $ 51,128
June 30, 2011
Charitable Gift Annuities $ 1,204,340 $ 1,204,340 $ -Contribution Receivable Charitable Trusts 47,998 - 47,998
Total $ 1,252,338 $ 1,204,340 $ 47,998
Fair Value Measurements at Reporting Date Using
Fair Value
Quoted Prices in Active Markets
for Identical Assets (Level 1)
@��������Unobservable
Inputs (Level 3)
28
Board of Trustees
Bill Kruidenier Chair
Doug BereuterVice-Chair and Chair-Elect
Preston Cole
Mrs. Lee A. Crayton, Jr. (Carolyn)
Ray Empson
Don Glendenning
Ed Jaenke
Scott Josiah
Leah MacSwords
Ken Munson
Photo Credits
Carrie BenesRandy BargerValerie CuppensEd GoodwinFurnum UniversityKarina HelmGeoff JohnsonWilliam LauerLuis Peon-CasanovaVivamos MejorAmy Stouffer Mitch WiebellKerry Wilken
Executive Management Team
John RosenowChief Executive
Matt HarrisPresident
Britt EhlersVice President Human Resources
Doug FarrarVice President Arbor Day Farm
Karen HouserLied Lodge General Manager
Dan LambeVice President Programs
Woodrow NelsonVice President Marketing Communications
29
“The cultivation of trees is the
cultivation of the good, the beautiful,
and the ennobling in man.”
J. Sterling Morton