2020-21 WFAA Annual Report

Expenses

TOTAL ADMINISTRATIVE EXPENSES

FY 2020

FY 2021

Salaries

24,460,453

25,526,956

Like most charitable organizations, WFAA measures its ratio of expenses to contributions to demonstrate that we are properly managing resources. Our focus is not only on keeping costs low but also on maximizing support, which we measure in net contributions. The tables opposite track expenses (top right) and compare them to new gifts and pledges (bottom right). The bottom table shows both cost of raising a dollar (calculated as a percentage, expenses divided by total contributions) and net contributions (expenses subtracted from total contributions). The chart below shows a rolling five-year average for net contributions. In 2016, we changed our reporting cycle from calendar year to a fiscal year that begins on July 1. In the

chart, we annualized the figures for the 2016 six-month fiscal year adjustment. A note about the $7 million loss on guarantee in the expenses table: this is a one-time, non-operational expense to benefit UW–Madison. WFAA facilitated a payoff of a mortgage held by the Center for Advanced Studies in Business, which supports the Wisconsin School of Business. The mortgage was used to support construction of the Fluno Center and had been guaranteed by WFAA. The transaction resulted in the release of WFAA’s guarantee and a reversion of ownership and control of the Fluno Center to UW–Madison — an arrangement approved by the Board of Regents of the University of Wisconsin System in late 2021. This is not included in calculating the cost of raising a dollar.

Loss on guarantee Employee benefits

7,073,000 5,885,465 5,495,371 2,793,296 2,191,768 2,009,206 1,692,386 1,574,064 1,246,692

-

5,323,079 1,176,565 2,359,305 2,281,317 1,976,290 1,805,144 1,710,704 1,843,857 1,016,929 (112,457)

Bad debt expense (unfulfilled pledges)

Information technology

Depreciation

Office expenses

Payroll taxes

Professional services

Advertising and promotion

Occupancy

830,393 509,624 468,686 264,189 33,905 14,238

Income tax expense (recovery)

Insurance

393,981

Conferences, conventions, and meetings

2,163,068

Travel

527,569

All other expenses

2,882

TOTAL

56,542,736

47,995,189

ADMINISTRATIVE EXPENSES AND CONTRIBUTIONS, 2012–21 ADMINISTRATIVE EXPENSES COST OF RAISING A DOLLAR

(excluding income taxes and loss on guarantee)

(as a percentage of contributions)

TOTAL CONTRIBUTIONS

NET CONTRIBUTIONS

ROLLING FIVE-YEAR AVERAGES

ENDING IN YEAR SHOWN

FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 (6 MOS) FY2015 FY2014 FY2013 FY2012

48,960,112 48,107,646 43,367,757 45,552,238 49,281,002

383,703,656 304,160,374 341,625,459 313,184,081 338,449,963

12.8% 15.8% 12.7% 14.5% 14.6%

334,743,544 256,052,728 298,257,702 267,631,843 289,168,961

Expenses

Net Contributions

$331.5

$350 $300 $250 $200

$325.7

$322.5

$304.0

$289.2

$274.1

21,927,288

151,643,056

14.5%

129,715,768

$150 $100 $50 0 MILLIONS

45,794,113 36,855,944 28,452,725 30,583,644

543,596,612 380,492,270 266,855,030 211,288,562

8.4% 9.7%

497,802,499 343,636,326 238,402,305 180,704,918

$47.1

$46.0

$45.6

$44.3

$40.8

$37.1

10.7% 14.5%

2016

2017

2018

2019

2020

2021