The Prem Rawat Foundation (the Foundation) is a California not-for-profit public benefit corporation created in November 2001. The Foundation’s first contribution activity began in February 2002, and the first online contribution and Web site commenced in April 2002. Financial activity is managed and reported under the generally accepted accounting principles, and the financial statements are prepared on the accrual basis of accounting. The tax returns for 2002, 2003, and 2004 have been filed with the Internal Revenue Service Form 990 and the State of California, and are available for viewing at the Web site www.guidestar.org .
Contributions to the Foundation have steadily increased each year to $1.98 million in 2005 from $900 thousand in 2002, the initial year. In 2005, approximately 2,700 people and organizations contributed to the Foundation from 60 countries. The majority of these contributors (60%) were from North America, while another 30% contributed from Europe. Below is a summary table of the yearly financial position of the Foundation.
Notes about the Assets
The Foundation’s Cash and equivalents consist of interest-bearing deposits of highly liquid investments with original maturities in less than 90 days and are carried at cost which approximates fair value. The Merchandise Inventory consists of printed materials, DVDs, CDs, and related items. Inventories are stated at the lower of cost or market determined on a first-in, first-out basis. Furniture and Equipment consists primarily of technology assets and media kits used to disseminate the message of Prem Rawat. These assets have a value in excess of $1,000 and a term life in excess of one year.
The Foundation received revenues from individuals and organizations both for general purposes and specific purposes, such as humanitarian initiatives. The table below represents the financial activity over the past four years.
Net Assets include unrestricted and restricted assets. Restricted assets are subject to donor-imposed stipulations that will be met by actions of the Foundation (i.e. contributions for humanitarian initiatives). At December 31, 2005, the Foundation was not holding any restricted net assets.
Functional Expenses: The Foundation performs and reports its activities among three functions: Program Expenses, Support Expenses, and Fundraising Expenses. Definitions of these functions are as follows:
Program: Activities performed by the Foundation which promote and disseminate the speeches, writings, music, and art of Prem Rawat and support public forums; and humanitarian initiatives.
Support: All costs not identifiable with a single program or fundraising activity but indispensable to the conduct of such programs and activities and to the Foundation’s existence. This includes business management, general recordkeeping, financial reporting, legal services, and activities related to these functions, such as supplies, equipment, and other general overhead.
Fundraising: Activities performed by the Foundation to generate funds and/or resources to support its programs.
Revenues to The Prem Rawat Foundation in 2005 consist primarily of contributions from individuals intended for general purpose and specific projects including hunger and humanitarian assistance to those affected by tsunamis, hurricanes, earthquakes, and famines. The Foundation was able to raise funds through fundraising and sponsored events (25%) such as auctions and special speaking events.
The accompanying charts below illustrate the allocation for the 2005 Revenue and Expenses
Expenses for The Prem Rawat Foundation in 2005 were allocated among three primary areas: Program Expenses, Support Services Expenses, and Fundraising Expenses. Program Expenses were $1,536,000 (78% of total expense) and are direct costs to support the Foundation’s intended purposes, which include materials development, production and distribution, and humanitarian initiatives. The humanitarian initiatives for 2005 involved grants totaling $465,000 to a number of organizations, such as the World Food Programme and the Houston Food Bank, for relief efforts and projects in response to the tsunami in Southeast Asia, North American hurricanes, the Pakistan earthquake, and the Niger famine. The chart below shows the allocation by percentage of these program expenses and the indirect support and fundraising expenses.
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Board of Directors Linda H. Pascotto
Director / President
