2012 [2.8 MB] - Billy Graham Evangelistic Association

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notes to Consolidated Financial StatementsAs of December 31, 2012Deferred RevenueThe subscription price of Decision magazine is charged to unearned subscriptions when received and is amortized to income over an11-month period.Advertising CostsThe Association expenses advertising costs as incurred. For the years ending December 31, 2012 and 2011, advertising costs totalingapproximately $7,962,000 and $3,545,000, respectively, related primarily to television airtime to promote airing of evangelistic telecasts,evangelistic Crusades, and literature and materials. The increase in advertising costs over 2011 was related to the Biblical Values ad campaign,which was part of an ongoing effort to call America back to God and to prayer. The ads drew attention to moral issues clearly addressed inthe Bible and urged readers to pray and to vote based on Biblical values so that America will remain one nation under God. This initiativewas in preparation for the Association’s nationwide evangelistic campaign in 2013, My Hope America with Billy Graham.Allocation of Joint CostsCertain expenditures of the Association and affiliates (including radio and television, direct mail, and postage) relate to both ministry andfund-raising. The allocation of these joint costs is based on estimates of the content, audience, and purpose of these expenditures. Total jointcosts and respective allocations are as follows:2012 2011Ministry $ 28,080,646 $ 26,406,558Fund-raising 3,631,404 3,651,914General and administrative 5,292,590 6,624,192$ 37,004,640 $ 36,682,664Income TaxesThe Association and U.S. affiliated organizations are exempt from federal income taxes, and contributions to them are deductible ascharitable contributions under Internal Revenue Code Section 170. The Internal Revenue Service has issued determination letters to theAssociation and exempt affiliated organizations stating that they qualify for tax-exempt status under Internal Revenue Code Section 501(c)(3).The Internal Revenue Service has also issued rulings stating that they will not be treated as private foundations within the meaning ofInternal Revenue Code Sections 509(a)(1), 509(a)(2), and 509(a)(3).As required by U.S. generally accepted accounting principles pertaining to uncertain tax positions, the Organization records a liabilityfor any tax position taken that is beneficial to the Organization, including any related interest and penalties, when it is more likely than notthe position taken by management will be overturned by a taxing authority upon examination. Management believes there are no suchpositions as of December 31, 2012 and 2011, and, accordingly, no liability has been accrued. The Organization is generally no longer subject toexamination by the Internal Revenue Service for years before 2011.38 BILLY GRAHAM EVANGELISTIC ASSOCIATION & AFFILIATED ORGANIZATIONS
Net Asset ClassificationsThe Association interprets the Uniform Prudent Management of Institutional Funds Act underlying net asset classification of donorrestricted assets as follows:Permanently restricted net assets include contributions that donors have specified must be maintained in perpetuity, and, if directed, aportion of investment returns based on instructions in the gift instrument.Temporarily restricted net assets are comprised of funds that are restricted by donors for specific purposes or time periods. Temporarilyrestricted net assets also include investment returns from permanently restricted assets until those amounts are appropriated for spendingin accordance with donor restrictions.Unrestricted net assets represent funds that are fully available, at the discretion of management and the Board of Directors, for theAssociation to utilize in any of its programs or supporting services.Temporarily Restricted ContributionsThe Association records contributions as temporarily restricted if they are received with donor stipulations that limit their use eitherthrough purpose or time restrictions. When donor restrictions expire, temporarily restricted net assets are reclassified to unrestricted netassets and reported in the statement of activities as net assets released from restrictions.The Board of Directors has established a policy that up to 10 percent of all donor-restricted contributions for a specific project may beused for administering the gift, if needed.Accounting for Long-Lived AssetsThe Association records losses on long-lived assets used in operations when indicators of impairment are present and the undiscountedcash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Association did not record impairmentfor 2012 or 2011.Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States requiresmanagement to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.Actual results could differ from those estimates.2012 MINISTRY REPORT39
Page 6 and 7: “I pray that thesharing of yourfa
Page 8 and 9: Will’s team then traveled 300 mil
Page 10 and 11: YOUTH MINISTRIESHelping build Chris
Page 12 and 13: Rock the Lakes evangelistic outreac
Page 14 and 15: MY HOPEproclaiming the hope of Jesu
Page 16 and 17: RAPID RESPONSE TEAMShowing the love
Page 18 and 19: THE BILLY GRAHAM LIBRARYState of th
Page 20 and 21: THE BILLY GRAHAM TRAINING CENTER AT
Page 22 and 23: INTERNET & MEDIAMoving to reach eve
Page 24 and 25: eader wrote, “The Holy Spirit led
Page 26 and 27: Ransom also produced 15 newdisciple
Page 28 and 29: Guidance team personally answered m
Page 30 and 31: BOARD OF DIRECTORS2012Board Members
Page 32 and 33: Report of Independent AuditorThe Bo
Page 34 and 35: Consolidated Statement of Activitie
Page 36 and 37: notes to Consolidated Financial Sta
Page 52 and 53: What We BelieveThe Billy Graham Eva
Page 54: Always Good News.1 Billy Graham Par

2012 [2.8 MB] - Billy Graham Evangelistic Association

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