A Note from the Executive Vice President and CFO
The 2015 fiscal year was another landmark one for WHYY measured in terms of financial results, increases in membership, growth in contributed income and restricted grants. Within the positive membership trends we see continued growth in the auto-renewing or sustainer membership category further reducing our cost to raise support. All of these positive financial outcomes supported the continued investment in content and program expansion.
We maintained financial stability as our net assets increased while maintaining our goal to invest free working capital in program expenditures. This was accomplished by carefully controlling administrative expenses but was primarily due to the growth in the numbers and contributed income from members (especially sustainers) and individuals making large gifts. The increase in net assets means that for the ninth out of the past ten years, our total revenues exceeded expenditures while expanding programming. This demonstrates sustainability and provides additional resources for investment in our community programs and activities.
We were very active in creating original content during 2015. We produced and presented the Delaware-based documentaries Hundred Mile Monument and Dela-where?. We began production of the Gay Pioneers documentary focusing on the history and progress of the LBGT movement since the 50 year anniversary of the July 4th Independence Hall protest. In addition, PlanPhilly, the award-winning source for design, planning and development in Philadelphia was acquired by whyy and integrated with our news department. Online, we are pleased to see growth in NewsWorks.org, which has surpassed 400,000 monthly visitors.
The Dorrance H. Hamilton Public Media Commons continues to offer a full schedule of media courses, hosts many member events and has generated income from rental activity. We have also been successful in rolling out Media Labs in several public and private schools. This success has resulted in the School District of Philadelphia teaming up with WHYY to bring Media Labs to 27 schools over the next three years.
The 2015 fiscal year continued our large investments in production and broadcasting expenses as a percentage of WHYY's total budget, now exceeding 70%. Fundraising costs and general and administrative expenses continued their downward trend. In other words, more and more of your contributions are being invested in programs and services, with less than 7 percent of all expenditures earmarked for general and administrative costs.
With the continued engagement of the WHYY-FM audience, we grew the number of members in our files by two percent compared with declines at most other major public media providers. We also recorded another year of net member revenue increases and automatically renewing members now exceed 20% of our member base. Thanks to a generous donation, we were also able to conduct a substantial advertising campaign to increase awareness of WHYY-FM.
We have many financial challenges ahead. Although the economy is stabilizing, the impact is felt in the slow pace of foundation grants and support for capital projects. The support from the Corporation for Public Broadcasting remains at $2 million; and while we are working to win back Commonwealth of Pennsylvania unrestricted support lost during the great recession (and gratefully we have succeeded in doing so with the State of Delaware's generosity) these losses in government support have been more than offset by growth both in our contributed and earned income to seed future productions with restricted grants, which were at an all time high at the end of the fiscal year.
Overall, fiscal year 2015 was a very positive year for WHYY, and we are in a strong position to continue building our programs and services for Pennsylvania, New Jersey and Delaware.
— A. William Dana
Statement of Financial Position
|ASSETS||2015 Fiscal Year||2014 Fiscal Year|
|Contributions receivable, net of current portion||$1,302,000||$840,000|
|Property and equipment||$15,823,000||$16,847,000|
|LIABILITIES AND NET ASSETS|
|Long term liabilities||$6,103,000||$6,903,000|
|Total liabilities and net assets||$33,294,000||$33,408,000|
Statement of Activities — Support, Contributions and Revenue
|Support, contributions and revenue||2015 Fiscal Year||2014 Fiscal Year||FY15%|
|Program funding and underwriting||$12,758,000||$11,228,000||39%|
|Other income (loss)||$2,092,000||$2,123,000||6%|
|Total support, contributions and revenue||$32,438,000||$31,275,000|
Statement of Activities — Expenses
|Expenses||2015 Fiscal Year||2014 Fiscal Year||FY15%|
|Production and broadcasting||$21,807,000||$21,097,000||71%|
|General and administrative||$2,155,000||$1,942,000||7%|
|Change in net assets||$1,516,000||$1,259,000|