We are in the process of our full financial audit by an independent CPA firm. Last fiscal year was the cleanest audit we have received since we started the process, and we trust this year will be the same.

The fiscal year before this one was very difficult as NGJ spent $107,139 more than we received. The year before that was even more difficult with us spending $239,650 more than we received. We are thankful that the fiscal year that closed on June 30, 2013 was much stronger financially.

We ended the year in the black. Our income over expenses was $125,828. The difference was in the sacrificial giving you made to support us, keeping our ministry solvent and help us expand.

CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 (Rounded)

REVENUE AND SUPPORT

Sales $ 885,000
Contributions $ 610,000
Seminar Registration $ 11,000
Misc Income $ 3,000
Total Revenue $ 1,509,000

EXPENSES

Program Services:
Cost of Goods $ 188,000
Ministry and Magazine $ 385,000
Printing and Publications $ 290,000
Supporting Services $ 520,000
Total Expenses $ 1,383,000

REVENUE OVER EXPENSES $ 126,000

CHANGES

We made radical changes throughout the ministry this fiscal year to avoid losing it completely! We now operate this $1.5 million ministry with a staff of 9 that work the equivalent hours of 6 full-time employees. The changes we made equal a cash differential of over $250,000 in one fiscal year. We cut out benefits, eliminated raises and made changes in all departments. Every one of our staff performs many different tasks throughout the day in different departments. We are all cross-trained to work and handle the many tasks that are presented to us regardless of the department that the task was originally assigned to.

CONTRIBUTIONS

Contributions to our general fund allows us to use the funds where most needed. Contributions that are designated to a specific area of our ministry are used in their entirety for that purpose. Unlike other ministries, we do not reduce the amount by an administrative fee.

The Good and Evil Project continues to be our main ministry focus. We continue to add new languages, have completed and released the animation project, and have placed 36 languages on our website for missionaries to read and use in ministry, free of charge. We also continue to expand our military ministry, prison ministry, and ministry to missionaries and church leaders worldwide.

SALES

About 60% of our revenues are from the sales of the over 100 products that we offer. This covers all of our overhead and many ministry projects. These products minister biblical truths throughout the world in many languages. We avoid administrative fees on all designated contributions through our sales income and our licensing agreements. We now have over 70 signed licensing agreements that pay NGJ an upfront licensing fee and royalties twice a year.

Although we had a great year financially compared to the last two years, we encourage you to continue to support NGJ financially to allow us to spread the Gospel and continue to minister with our materials throughout the world. With this, we were still well below our peak year of 2008 where we took in $1.9 million. Our downward trend of expenses over income for 5 years prior to this year almost mirrored the general condition and economy of the country. Please contact me if you have any questions or feel led to financially help NGJ by regular donations, through stock transfers, life insurance, or your estate plan.

Editor Note: Mel is a certified financial planner, a registered financial consultant and a registered tax return preparer, and has over 30 years of experience in corporate finances for both nonprofits and for profit organizations. If you have any questions on our Ministry’s finances contact Mel at 931-593-2484 or email him at mcohen@nogreaterjoy.org.