Financial Projections

Financial Projections

Financial Projections 1. Executive Summary a. Gross revenue is defined as total received in donations, grants, and other revenue. ▪ During Year One, the Foundation will maintain a cash reserve equal to 20% of Gross Revenue. ▪ Beginning in Year Two the Foundation will maintain a cash reserve equal to 20% of the prior year’s Gross Revenue or 20% of the current year’s revenue, whichever is greater. b. Surplus Revenue is defined as revenue that exceeds both budgeted expenses and funds required to meet cash reserve. Example below: TOTAL REVENUE LESS: Budgeted Expenses EQUALS: Surplus Revenue available for distribution to targeted states c. Expenditures of Surplus Revenue will be based on the following: --Input received from State Chairpersons. --Concurrence of the Board of Directors. --Priority given to the states where additional resources will have the most immediate impact on the s -- state passing law that conforms to FEAP principles. d. Revenue from Email Marketing, Direct Mail, Telemarketing and Special Events expected to increase in Year Two as awareness, donor base, and repeat donor base expands. e. Initial expenditures on general counsulting, hardware, and software wil decline in Year One versus Year Two, 2. Estimated Startup Expenses (See Next Page) 3. Year One and Year Two Financial Statements (See Following Page)

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Estimated Startup Expenses

The Fair Elections Foundation

P ROJECTED E XPENSES F IRST 90 D AYS

E STIMATE ✓

Procurement of Documentation for incorporation within the State of Michigan to establish EIN & 501(C)3 designation with .IRS $ ..

0 ✓

Preparation of Business Plan

0 ✓ 0 ✓

Domain Registrations: F AIR E LECTIONS F OUNDATION .O RG ;.F AIR E LECTIONS F OUNDATION .C OM

Initial General Fund-Raising Assistance and Consulting Initial Broadcast and Print Media Consulting Initial General Email Marketing Consulting Initial Consulting on Special Events Effectiveness Initial Consulting on Public Relations and Publicity Strategy

15,000 4,000 10,000 5,000 5,000 100,000 50,000 25,000 15,000 25,000 12,000 65,000 1,500 50,000 10,000 20,000

Development of Web Presence for E-Marketing, Ecommerce, Social Media, and Search Optimization Creation and Production of Promotional Material and Imagery for Printed Materials, Advertising and Web Presence Initial Printing: Business Plan, Brief Printed Handout Material, Business Cards, Newsletter, etc.

Temporary Event Venues and Associated Costs for Events

Domain Hosting and Support Yearly Cost

Initial Board Meetings, Travel Reimbursements, Director Per Diems, Meeting and Meeting Room Costs.

Travel and Mileage for Initial Face-to-Face Fund Raising

Administration

Startup Payroll and Contract Labor

Rent, Utilities, & Other Occupancy Costs for Workspace as .Needed

Administrative IT and Communications

Office Supplies and Equipment

4,000

Postage, Shipping, Etc.

10,000 5,000

Accounting

Legal and Professional Fees Allowance 10,000 T OTAL E XPENSES F IRST 90 D AYS $ 441,500

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Financial Projections , Continued ... Year One and Year Two

The Fair Elections Foundation

INCOME

EXPENDITURES

Y EAR 1

Y EAR 2

Y EAR 1 Y EAR 2

Donations/Direct Mail

$500,000 600,000 100,000 150,000 5,750,000

$1,200,000 1,800,000

Marketing Software/Web Dev $350,000

$150,000 10,000 150,000 600,000 1,000,000

Donations/SocMediaEmailWeb Donations/Crowdfund Sites Donations Broadcast & Print Donations/Person to Person

Marketing Consulting Marketing Contractors

30,000 100,000 400,000 400,000

100,000 400,000

Web Advertising

4,500,000

Broadcast & Print Advertising Direct Mail Postage, Fees, etc.

Previous Donors

25,000 50,000 100,000 60,000

100,000 100,000 150,000 100,000

25,000 40,000 200,000 75,000 40,000 100,000 30,000

40,000 10,000 300,000 125,000 70,000 100,000 35,000

Unknown Referral Source Regular Membership Dues Merchandise Sales(Less COGS)

Fundraising Consultants/Contractors Event Venue Rentals &Expenses

Travel and Mileage

Other Income

4,000

10,000

Meals and Entertainment

T OTAL I NCOME B ALANCE S HEET

$7,339,000 $8,460,000 State Chair Expenses ($20,000 times 5)

Y EAR 1

Y EAR 2

Director Fees, Travel & Meeting Exp Admin Payroll & Contract Labor

ASSETS

450,000 550,000

Operating Cash on Hand $ 50,000 $

50,000

Occupancy Costs

40,000 100,000 30,000 20,000 20,000 50,000 20,000

60,000 30,000 40,000 40,000 25,000 75,000 20,000

Cash Reserve

964,000 30,000

1,006,000

Admin General & IT Equip/Software

Tech Hardware and Software Assets Cost Value/Mailing Email Lists

50,000 10,000

Office Supplies Postage/Shipping

5, 000

Total Assets 1,024,000 1,116,000

Accounting

LIABILITIES

Legal (Allowance) Other Expenses

Accounts Payable

50,000 10,000 20,000 80,000

50,000 10,000 25,000 85,000

Notes and Other Payables

Surplus Spent in Select Targeted States

3,855,000

3,684,000

Other Liabilities Total Liabilities

Surplus to Cash Reserve ( 964,000) ( 42,000) T OTAL E XPENDITURES 6,375,000 8,418,000

NET ASSETS

NET INCOME $ 964,000 $ 42,000

$ 944,000 $1,201,000

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