2011 Catalyst Annual Report

NOTE 1 – ORGANIZATION AND NATURE OF ACTIVITESCatalyst Inc. is a nonprofit research and advisory organizationwhich works with businesses and the professions to buildinclusive environments and expand opportunities forwomen at work. Catalyst Canada Inc. (“Catalyst Canada”) wasincorporated on December 27, 2000, to fulfill the mission ofCatalyst in Canada and is controlled by Catalyst Inc. CatalystEurope AG (“Catalyst Europe”) was incorporated on June22, 2006, to fulfill the mission of Catalyst in Europe and iscontrolled by Catalyst Inc. The accompanying consolidatedfinancial statements include the accounts of CatalystInc., Catalyst Canada, and Catalyst Europe (collectively,“Catalyst”). Catalyst Inc. is exempt from federal income taxesunder Section 501(c)(3) of the Internal Revenue Code andhas been classified as an organization that is not a privatefoundation under Section 509(a).A description of Catalyst’s major programs and supportingservices are as follows:National education – National education fosters awarenessand informs decision makers of the changing role and needsof women in the workplace by promoting Catalyst’s missionof advancing women in business and the professions,Catalyst’s research, and services. National education alsoincludes the execution of strategic plans to expand the reachof Catalyst’s mission in the North American and Europeanbusiness communities.Research – Research conducts qualitative and quantitativeresearch on both women’s leadership advancement andwork/life issues across a wide range of industries, geographies,generations, and racial/ethnic groups. This researchculminates in published studies that include findings frominterviews, focus groups, and surveys, as well as company bestpractices and recommendations for companies and firmsinterested in recruiting, retaining, and advancing women.Catalyst has conducted research on women in leadership inthe United States, Canada, and Europe.Communications – Communications create and executestrategies to increase Catalyst’s visibility in the United States,Canada, and Europe by developing strategic partnershipsand strengthening its brand, products, and services.Communications is responsible for editing, designing,and producing all publications and collateral materials,and for public education activities such as press relationsand speaking engagements. The department managesspecial events, including the Catalyst Awards Dinner andconferences to disseminate Catalyst research.Advisory services – Advisory services conduct large-scaleinternal organizational assessments on a proprietary basisfor companies and firms. It advises employers on workplacebarriers and successful strategies to retain, develop, andadvance women. Advisory services also provides single-issue,focused workshops on topics such as mentoring, creatingwomen’s networks, and work/life integration.Information center and services – The Information centertracks and collects information and produces qualityresults to requests through a comprehensive collectionof books, periodicals, statistics, government reports, andpress coverage of working women. The Information centerprovides efficient, valuable information to Catalyst members,the media, and those who formulate public policy.Finance and administration – Finance and administrationmaintains operational, administrative, and financialresponsibility for Catalyst.Development and member relations – Development andmember relations enlist corporate, individual, governmental,and foundation contributions for general support and specialresearch projects. The department manages relationshipswith members headquartered in the United States, Canada,and Europe.NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIESA. Catalyst’s consolidated financial statements have beenprepared on the accrual basis of accounting. Catalystadheres to accounting principles generally accepted inthe United States of America (“U.S. GAAP”).B. The consolidated financial statements include theaccounts of Catalyst Inc., Catalyst Canada Inc., andCatalyst Europe AG. Upon consolidation, all significantintercompany balances and transactions are eliminated.C. Pledges are recorded as income when Catalyst is formallynotified of the grants or contributions by the respectivedonors.Catalyst reports contributions as unrestricted supportunless they are received with donor stipulations that limitthe use of the donated assets; such assets are consideredtemporarily restricted. When a donor restriction expires,that is, when a stipulated time restriction ends or purposerestriction is accomplished, temporarily restricted netassets are reclassified to unrestricted net assets andreported in the statement of activities as net assetsreleased from restrictions. Temporarily restricted netassets were released from donor restrictions by incurringexpenses, thereby satisfying the restricted purposes ofproviding program services as specified by the donors.Catalyst reports gifts of cash and other assets aspermanently restricted support when use by Catalystis limited by donor-imposed stipulations that neitherexpire by the passage of time nor can be fulfilled orotherwise removed by actions of Catalyst. Earnings onpermanently restricted net assets can be borrowed forresearch projects as described in Note 6.D. Investments are stated at their fair values, which aregenerally determined by quoted market prices. RealizedCatalyst Annual Report 2011 | 46