CREATIVE COMMONS CORPORATION(A NONPROFIT CORPORATION)DECEMBER 31, 2021
INDEPENDENT AUDITORS’ REPORT AND
CONSOLIDATED FINANCIAL STATEMENTS

Creative Commons Corporation (a Nonprofit Corporation)
Independent Auditors’ Report
and Consolidated Financial Statements

Independent Auditors’ Report

1-2

Consolidated Financial Statements
Consolidated Statement of Financial Position

3

Consolidated Statement of Activities and Change in Net Assets

4Consolidated Statement of Functional Expenses

5

Consolidated Statement of Cash Flows6

Notes to Consolidated Financial Statements

7 - 12

Independent Auditors’ Report
THE BOARD OF DIRECTORSCREATIVE COMMONS CORPORATION (A NONPROFIT CORPORATION)
MOUNTAIN VIEW, CALIFORNIA
OpinionWe have audited the consolidated financial statements of CREATIVE COMMONS CORPORATION(Creative Commons) which comprise the consolidated statement of financial position as of December
31, 2021, the related consolidated statements of activities and change in net assets, functional expenses
and cash flows for the year then ended and the related notes to the consolidated financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of Creative Commons as of December 31, 2021, and the results of its operations and its cash
flows for the year then ended in accordance with accounting principles generally accepted in the UnitedStates of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Creative Commons and to meet our other ethical responsibilities, in accordance with therelevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements inaccordance with accounting principles generally accepted in the United States of America, and for thedesign, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about Creative Commons’ ability tocontinue as a going concern for one year from the date of this report.

San Francisco ● San Jose ● San Mateo ● Petaluma

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance andtherefore is not a guarantee that an audit conducted in accordance with GAAS will always detect amaterial misstatement when it exists. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:xExercise professional judgment and maintain professional skepticism throughout the audit.

x

Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, and design and perform audit procedures responsive to those risks. Suchprocedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.

x

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Creative Commons’ internal control. Accordingly, no such
opinion is expressed.

x

Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of thefinancial statements.

x

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,that raise substantial doubt about Creative Commons’ ability to continue as a going concern for areasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.

San Francisco, California
July 15, 2022

2

Creative Commons Corporation (a Nonprofit Corporation)
Consolidated Statement of Financial Position

December 31, 2021

AssetsCash and cash equivalents
Accounts receivable, net
Prepaid expenses and other assets
Total assets$

4,485,413
5,048,666
54,043$9,588,122$

131,073
154,948
26,000371,232

Liabilities and Net Assets
Liabilities:
Accounts payable
Accrued expenses
Deferred revenue
Long-term liabilities
Total liabilities

683,253

Net Assets:
Without donor restrictions
With donor restrictions

2,699,501
6,205,368

Total net assets

8,904,869

Total liabilities and net assets$

See accompanying notes to consolidated financial statements.
3

9,588,122

Creative Commons Corporation (a Nonprofit Corporation)
Consolidated Statement of Activities and Change in Net Assets

Year Ended December 31, 2021
Without
Donor
Restrictions
Revenues:
Grants, net
Contributions
In-kind contributions
Program service fees
Special events income
Other income
Satisfaction of program restrictions$

Total revenues
Expenses:
Program services
Supporting services:Management and generalFundraising
Total expenses
Change in Net Assets
Net Assets, beginning of year
Net Assets, end of year$

2,336,190
373,783

With Donor
Restrictions$

6,447,745
348,374
34,256

Total$

158,503396
191,721738,757(738,757)

8,783,935
722,157
34,256
158,503396
191,721-3,799,350

6,091,618

9,890,968

1,201,923

1,201,923

1,590,497
369,8311,590,497
369,831

3,162,251-

3,162,251

637,099

6,091,618

6,728,717

2,062,402

113,750

2,176,152

2,699,501$

6,205,368

See accompanying notes to consolidated financial statements.
4$8,904,869

Creative Commons Corporation (a Nonprofit Corporation)
Consolidated Statement of Functional Expenses

2021

Beyond The
Licenses
Salaries
Payroll taxes
Employee benefits$

Consulting and design
WebsiteLicenses and fees
Legal fees
Technology
Special events
Insurance
Bank charges
Accounting fees
Project support
Operations
Publicity and communication
Recruiting
Training
TelephoneMembership and dues
Printing
Travel and conferences
Occupancy
Supplies

Total expenses

253,362
13,7408,937

Capacity
Building

Licenses$

108,595
9,441
7,925

$

332,661
26,626
42,636

Total Program
Services$694,618
49,80759,498$

Total Support
Services

Fundraising637,417
140,792
46,639$216,179
21,77010,959$853,596
162,562
57,598

Total
Expenses$

1,548,214
212,369
117,096

276,039

125,961

401,923

803,923

824,848

248,908

1,073,756

1,877,679

129,510

3,046

171,107

303,663
16,07760,40012,466
2,595
195
920
1,425
74
153
32

183,938
144,570
138,546
78,662
49,789108,886

292,824
144,570
138,546
78,66258,02743,90735,51134,7506,500
16,074
10,057
5,936
6,742
4,473
3,602
2,253
1,865
1,980
293

596,487
144,570
138,546
78,662
74,10460,40043,90735,51134,75018,966
18,66910,252
6,856
6,742
5,898
3,602
2,327
2,018
1,980
325

10,79160,400

5,286

8,050
135
195

4,416
2,460
920
1,425

$

Management
and General

10

64
153

14

18

485,144$

129,007$587,772$

1,201,923

8,238

43,90735,49034,7506,500
14,560
9,945
5,587
6,742
2,973
3,602
2,023
1,792
1,980
293

$

1,590,497

21

1,514
112
349
1,500
230
73

$

See accompanying notes to consolidated financial statements.
5369,831$1,960,328$

3,162,251

Creative Commons Corporation (a Nonprofit Corporation)
Consolidated Statement of Cash Flows

Year Ended December 31, 2021
Cash Flows from Operating Activities:
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided (used) by operating activities:
Net present value discount on long-term accounts receivable
Forgiveness of first PPP loan
Change in operating assets and liabilities:
Accounts receivable
Prepaid expenses and other assets
Accounts payable
Accrued expenses
Deferred revenue$

6,728,717

195,422(371,233)(5,088,464)(2,216)87,295(107,196)(61,500)

Net cash provided by operating activities

1,380,825

Cash Flows from Financing Activities:
Proceeds from second PPP loan

371,232

Net cash provided by investing activities

371,232

Net Increase in Cash

1,752,057

Cash and Cash Equivalents, beginning of year

2,733,356

Cash and Cash Equivalents, end of year$

See accompanying notes to consolidated financial statements.
6

4,485,413

Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statements

Note 1 -Organization:
Creative Commons Corporation (Creative Commons) is a Massachusetts nonprofit
corporation that develops, supports, and stewards legal and technical infrastructure thatmaximizes digital creativity, sharing, and innovation. Because it can be expensive andburdensome to secure legal permission to use a copyrighted work published to the Web,
Creative Commons provides a set of free copyright licenses and public domain tools thatenable everyone to grant copyright permissions to their creative works so that they can belegally used by others. Creative Commons’ public domain tools allow creators to waive allrights to a work and place it in the public domain, or to mark a work that is already in the
public domain.
Creative Commons enables scientific research and innovation by enabling open accessjournals and the open exchange of scientific data. When a Creative Commons license isapplied to a journal or scientific data, the journal and data can be freely reused by others.
Creative Commons’ licenses and public domain tools are also used to make data anddatabases freely available. The Creative Commons public domain dedication tool is used toremove all copyright restrictions.
Creative Commons also provides the legal infrastructure that powers Open Educational
Resources (OER). OER are openly licensed educational resources that are developed byinstitutions, communities, and individuals to further universal access to education. Creative
Commons’ licenses enable educational materials to be translated for use around the world.
Creative Commons is also developing software and metadata standards to improve search anddiscovery of educational resources.
Creative Commons’ licenses and tools have been developed in consultation with legal experts
and Creative Commons’ affiliate institutions in over 85 jurisdictions. Nearly 2 billion
Creative Commons-licensed works have been published by authors on the Internet.
In 2012, a Canadian subsidiary, 0941176 B.C. LTD, was established to enable Creative
Commons to engage the services of Canadian-based individuals. Creative Commons is thesole shareholder of the subsidiary. A management services agreement is in place between theorganizations and provides the structure for provision of those services to Creative Commonsby the subsidiary through its employees and its operations are reported in the consolidated
financial statements.

7

Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statements

Note 2 -Summary of Significant Accounting Policies
a. Basis of Accounting and Consolidation
The consolidating financial statements of Creative Commons are prepared on the accrualbasis of accounting and in conformity with accounting principles generally accepted in
the United States of America (U.S GAAP) specific to nonprofit organizations. The
consolidating financial statements include the accounts of its subsidiary (see Note 1). All
material intercompany transactions and balances have been eliminated. Foreign currency
gains and losses are recorded on the Statement of Activities and Change in Net Assets ifmaterial.
Net Assets Without Donor Restrictions – the portion of net assets that is neither time andpurpose nor permanently restricted by donor-imposed stipulations. These net assets areintended for use by management and the Board of Directors for general operations.
Net Assets With Donor Restrictions – the portion of net assets the use of which is limitedby donor-imposed stipulations that either expire by passage of time or can be fulfilled andremoved by actions of Creative Commons.
b. Estimates
Management uses estimates and assumptions in preparing consolidated financial
statements. Those estimates and assumptions affect the reported amounts of asset andliabilities, the disclosure of contingent assets and liabilities, and the reported revenues
and expenses. Actual results could differ from those estimates.
c. Cash and Cash Equivalents
For purposes of the statement of cash flows, Creative Commons considers all unrestricted
highly liquid investments with an initial maturity of three months or less at purchase to be
cash equivalents.
d. Revenue Recognition
Unconditional promises to give, which include grants and contributions, are recognized
upon receipt of the promise and are recorded as increases in net assets without donor
restrictions or with donor restrictions, depending on the existence and/or nature of any
donor restrictions. When a donor-specified restriction expires (that is when a stipulated
time restriction ends or purpose restriction is accomplished), the net assets with donor
restrictions are reclassified to net assets without donor restrictions.
Unconditional contributions and grants receivable are recorded at net realizable value if
expected to be collected in one year and at present value if expected to be collected in
more than one year. No allowance for uncollectible receivables has been recorded basedon management’s evaluation of collections.

8Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statements

Program service fees are recorded when earned.
Donated services are reported at fair value in the financial statements when those services(a) create or enhance non-financial assets or (b) require specialized skills, are performedby people with those skills, and would otherwise be purchased by Creative Commons.
Donated services of legal services totaling $29,256 and web hosting totaling $5,000 wererecorded for the year ended December 31, 2021.
e. Fair Value Measurements
Creative Commons classifies its financial assets and liabilities measured at fair value on arecurring basis based on a fair value hierarchy with three levels of inputs. Fair value isthe price that would be received to sell an asset or paid to transfer liability in an orderlytransaction between market participants at the measurement date. Level 1 values are
based on unadjusted quoted prices in active markets for identical securities. Level 2
values are based on significant observable market inputs, such as quoted prices for
similar securities and quoted prices in inactive markets. Level 3 values are based on
significant unobservable inputs that reflect Creative Commons’ determination ofassumptions that market participants might reasonably use in valuing the securities. The
valuation levels are not necessarily an indication of the risk or liquidity associated withthe assets and liabilities measured at fair value.
f.

Income Taxes
Creative Commons is exempt from income taxes under Internal Revenue Section
501(c)(3) and is exempt from California tax under Section 23701(d) of the Revenue
Taxation Code.
Creative Commons recognizes the effect of income tax positions only if those positions
are not likely to be sustained. Management continuously evaluates tax positions reflectedin the Creative Commons’ tax filings and does not believe that any material uncertain tax
positions exist.

g. Functional Expense Allocations
Expenses are allocated directly to program activities if they can be specifically identified
with a program. If not specifically identifiable, expenses are allocated to Management
and General with the understanding that all indirect management costs are expended insupport of programmatic work.
h. Reclassifications
Certain activities in the 2020 financial statements have been reclassified for comparative
purposes to conform with the presentation in the 2021 financial statements. These
reclassifications had no impact on the financial position or changes in net assets.

9Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statementsi.

Recent Accounting Pronouncements
Upcoming
In September 2020, the Financial Accounting Standards Board issued AccountingStandards Update (ASU) 2020-07, Presentation and Disclosure by Not for- Profit
Entities for Contributed Nonfinancial Assets. This ASU changes the required presentation
for in-kind contributions. The first element will require separate presentation on thestatement of activities and the second element will require additional disclosure about
how the in-kind gifts were utilized (in which program or part of management and generalor fundraising), donor restrictions associated with the gifts and valuation techniques
employed. The ASU is effective for the Creative Commons’ year ending December 31,
2022. Creative Commons is currently assessing the impact the adoption of this ASU will
have on its financial statements.

j.

Subsequent Events
Creative Commons evaluated subsequent events with respect to the consolidated financial
statements for the year ended December 31, 2021 through July 15, 2022, the date these
consolidated financial statements were available to be issued. There were no material
subsequent events, except as described in Notes 4 and 9, that required recognition or
additional disclosure.

Note 3 -Accounts Receivable:
Accounts receivable consisted of unconditional promises to give at December 31, 2021 which
are expected to be collected as follows:
In one year or less
Between one and five years$

5,244,088(195,422)

Less net present value discount at 3.25%
Contribution receivable
Note 4 -

1,910,754
3,333,334$

5,048,666

Long-term Liabilities:
On April 15, 2020, Creative Commons received a Paycheck Protection Program (PPP) loan
under the provisions of the Coronavirus, Aid, Relief, and Economic Security (CARES) Act,in the amount of $342,523. Under the terms of the PPP, certain amounts of the loan may beforgiven if they are used for qualifying expenses, as defined in the PPP, generally payroll,
payroll related costs and facilities costs. Creative Commons used the entire loan amount for
qualifying expenses. On May 23, 2021, this loan was forgiven.
10Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statements

On May 20, 2020, Creative Common’s Canadian subsidiary 0941176 B.C. LTD received aloan in the amount of $40,000 Canadian dollars, or $29,710 American dollars, from the
Canadian government. Under the terms of the loan, certain amounts of the loan may beforgiven if they are used for qualifying expenses, as defined in the PPP, generally payroll,
payroll related costs and facilities costs. If Creative Commons repays 75% of the loan by
December 31, 2022, the remaining balance will be forgiven. If this does not happen, the fullamount must be repaid by December 31, 2025 and any unpaid portion at December 31, 2022
will begin accruing interest at 5% per annum.
On March 21, 2021, Creative Commons received a second PPP loan under the provisions of
the CARES Act, in the amount of $342,522. Under the terms of the PPP, certain amounts of
the loan may be forgiven if they are used for qualifying expenses, as defined in the PPP,
generally payroll, payroll related costs and facilities costs. Creative Commons used the entire
loan amount for qualifying expenses. Subsequent to year-end, on January 16, 2022, this loan
was forgiven as well.
Note 5 -Net Assets With Donor Restrictions:
Net assets of $738,757 were released in accordance with respective donor restrictions.
Net assets were restricted as to purpose and time as of December 31, 2021 as follows:

Note 6 -Open GLAM
PolicyOpen Science
Better Internet
Journalism
DEI
CC GLAM Certificate
Time$831,244
270,000
241,041
150,000
147,633
73,922
20,283
4,471,245

Total$ 6,205,368

Pension Plan:
Creative Commons has a tax-sheltered annuity under IRC Section 403(b), which allows all
employees to contribute through payroll deductions. Creative Commons provides
discretionary matching contributions of 5% of annual salary for all employees who work 20
hours or more per week. Creative Commons’ contributions made during the year ended
December 31, 2021 totaled $80,982.

11

Creative Commons Corporation (a Nonprofit Corporation)
Notes to Consolidated Financial Statements

Note 7 -Concentrations of Risk:
Creative Commons maintains cash balances at several financial institutions which from time
to time exceed federally insured limits.
For the year ended December 31, 2021, approximately 72% of revenue, or $7,101,000, wasfrom three donors. Of that amount, $4,666,667 is receivable at year end. All receivables are
considered collectible, therefore no allowance for doubtful accounts was recorded bymanagement at December 31, 2021.

Note 8 -Liquidity and Availability:
Creative Common’s financial assets at December 31, 2021 available to meet general
expenditures over the next twelve months were as follows:
Financial assets:
Cash and cash equivalents
Accounts receivable within a year

$ 4,485,413
1,910,754
6,396,167

Note 9 -Less:
Net assets with donor-imposed purpose restrictions
that will be released within one year

1,339,716

Financial assets available to meet general expenditures
within one year

$ 5,065,451

Subsequent Events:
Subsequent to year end, Creative Commons received a 3-year $1,000,000 unconditional
grant in support of general operations. The grant funds were received as one lump payment
in February 2022.
As a result of the COVID-19 coronavirus pandemic, economic uncertainties have arisen
which may negatively impact financial activity for the Foundation in the fiscal year ending
December 31, 2022. Other financial impact(s) could occur though such potential impact is
unknown at this time.

12