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Following is a response to Jean's question about the Profit Loss report
I can double check with the bookkeeper, but I'm pretty sure that was one chunk (Lew's independent contractor charges) of the payments that were moved off the books when we signed the "conditional debt forgiveness" agreement last year. To recap for those who have other things going on in their lives:
For years GC was tracking owed payments to Ethan, Lewis, and (to a lesser extent) John Abbe in the books even when it didn't have the cash to pay them.
We decided (in 2011 I think) that all that debt made the books look much worse than they really were (since there was no real danger that Lew and I would come collecting), and decided to write a contract that said GC would only owe us the money if it started making bank.
The vast majority (I think ~$60K) of that was in "salary" (employee) payments. If I remember correctly, that part went off the balance sheet in late 2011 and so doesn't show up on the 2012 profit/loss.
The remainder was in contract payments, which are tracked separately in the books. When Lewis was working for GC he moved between employee and contractor depending upon the amount of work he was doing. The $9K chunk was what was owed him as a contractor.
Matrisha tracked that chunk of the debt forgiveness as an "inkind donation".
Since we spent all of the actual cash revenue that we made (or slightly more, since we had a little cash on hand), our net income for 2012 was pretty close to zero until you add in the $9K of debt forgiveness.
John Abbe was not part of the agreement, so the ~$2K owed him still shows up on the books as Accounts Payable.
On Fri, Jan 25, 2013 at 10:09 AM, jean russell <jeanmrussell@gmail.com> wrote:
Thanks for sharing.
I note that there is an inkind donation total of 9,575.00 and an organizational net income of 9,132.83.
Are you saying YOU made an inkind contribution of 9k? allowing the org to carry 9k + balance?
Curious.
etherpad: http://etherpad.openstewardship.net/2013-gc-budget --[[Ethan McCutchen]].....2013-02-22 19:59:21 +0000
I can double check with the bookkeeper, but I'm pretty sure that was one chunk (Lew's independent contractor charges) of the payments that were moved off the books when we signed the "conditional debt forgiveness" agreement last year. To recap for those who have other things going on in their lives:
For years GC was tracking owed payments to Ethan, Lewis, and (to a lesser extent) John Abbe in the books even when it didn't have the cash to pay them.
We decided (in 2011 I think) that all that debt made the books look much worse than they really were (since there was no real danger that Lew and I would come collecting), and decided to write a contract that said GC would only owe us the money if it started making bank.
The vast majority (I think ~$60K) of that was in "salary" (employee) payments. If I remember correctly, that part went off the balance sheet in late 2011 and so doesn't show up on the 2012 profit/loss.
The remainder was in contract payments, which are tracked separately in the books. When Lewis was working for GC he moved between employee and contractor depending upon the amount of work he was doing. The $9K chunk was what was owed him as a contractor.
Matrisha tracked that chunk of the debt forgiveness as an "inkind donation".
Since we spent all of the actual cash revenue that we made (or slightly more, since we had a little cash on hand), our net income for 2012 was pretty close to zero until you add in the $9K of debt forgiveness.
John Abbe was not part of the agreement, so the ~$2K owed him still shows up on the books as Accounts Payable.
On Fri, Jan 25, 2013 at 10:09 AM, jean russell <jeanmrussell@gmail.com> wrote:
Thanks for sharing.
I note that there is an inkind donation total of 9,575.00 and an organizational net income of 9,132.83.
Are you saying YOU made an inkind contribution of 9k? allowing the org to carry 9k + balance?
Curious.
etherpad: http://etherpad.openstewardship.net/2013-gc-budget --[[Ethan McCutchen]].....2013-02-22 19:59:21 +0000