2011 ANNUAL REPORT - Denver Botanic Gardens

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TREAsURER’s REPORT
I am pleased to report on the Denver Botanic Gardens Inc. (“DBG”) results of the year ended
December 31, 2011, as detailed in our accompanying audited combined financial statements. The
DBG is a nonprofit corporation formed in 1951, organized for the establishment and maintenance
of botanical gardens and arboreta in cooperation with the City and County of Denver (the “City”),
pursuant to a long term cooperative agreement with the City. In accordance with this agreement
DBG manages and operates the facilities including the buildings, plantings and all other properties
that constitute Denver Botanic Gardens and Denver Botanic Gardens at Chatfield for the benefit
of the public.
The accompanying financial statements also include the accounts of the Denver Botanic Gardens
Endowment Inc. (“DBGE”), a separate nonprofit organization established in 1991 that holds a
majority of the DBG endowment funds and also includes the accounts of two affiliated volunteer
organizations: the Associates of Denver Botanic Gardens and the Denver Botanic Gardens Guild,
who work for the betterment of Denver Botanic Gardens by providing volunteer assistance and
financial aid. The volunteers, the DBGE and DBG are collectively referred to as “the Gardens.”
In 2011 the Gardens continued to pursue its mission of connecting people with plants with an
operating budget of $15.6 million, which is down significantly from the 2010 operating budget of
$28.1 million. We ended the current year with a slight operating loss, primarily attributable to the
accounting treatment for contributions that requires the Gardens to recognize contribution revenue
when a pledge is received even though the expenditure occurs in a subsequent year.
It is important to also note that the agreement with the City necessitates that most capital
improvements are expensed in the Gardens’ operating budget rather than added to assets. In
2011, approximately $1.5 million in capital improvements are reflected as expenditures as
opposed to $15 million in 2010, as a result of our completion of several Master Development
Plan projects.
When non-recurring capital improvements are excluded, total program services expenditures
(representing core programs in the areas of horticulture, research, education and Denver Botanic
Gardens at Chatfield), increased by approximately $1 million - or 10.4% - compared to 2010 and
the total supporting expenditures decreased by 1.7%.
www.botanicgardens.org 2011 Denver Botanic Gardens Annual Report
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