From the 2024 Annual Report.
As the Chairman of the Finance Committee and a member of the Tender Mercies’ Board of Trustees, I would like to share with you our 2023 financial successes and upcoming challenges we face as an organization.
In 2023, Tender Mercies grew total net assets to $21.6 million, a 3.2% increase from 2022.
You may ask, “What are net assets?” Our net assets consist of three primary items:
Cash, cash equivalents, and cash reserves ($5.6 million)
Endowment funds ($4.0 million)
Property and equipment, net of depreciation and current/long-term notes payable ($13.9 million).
In 2023, net assets were positively impacted from increases in the equity markets that increased the endowment portfolio balance by approximately $552,000 before endowment withdrawals.
As you can imagine, the financial life blood of most non-profit organizations is cash flow. From a cash flow perspective, our cash flow balances remain strong and within our cash-on-hand policy as established by the Finance Committee and reviewed with the Board.
Moving forward, Tender Mercies is well positioned to execute the Strategic 10-year plan it has developed; however, emphasis will need to be placed on sustainable ways of securing additional and diverse funding sources. This is nothing new for any nonprofit, and Tender Mercies is fortunate to operate with an emphasis on financial efficiency.
During the last two calendar years we have kept management and general expenses below 10% of total support and revenue, and program expenses have been approximately 84% of total. Most organizations that monitor nonprofits look for 75%-80% of total expenses to be spent on program expenses (DWD CPAs & Advisors). Our financial efficiency speaks to the great work being done by our Tender Mercies’ staff.
I want to thank our Partners of Hope, donors, volunteers, and Board of Trustees for their commitment to Tender Mercies. By giving your talents, time, and/or treasures, you are helping to make our community a better place.
Tender Mercies 2023 Financials
The proper stewardship of the donations we receive is among he highest priorities for Tender Mercies. As evidenced above, we are committed to stretching every dollar as far as we can to help those in need.
We invite you to join the thousands of donors who support the work we do by donating to our work today.
