Greek Orthodox Archdioceseof America
Financial Statements

Years Ended December 31, 2019 and 2018

The report accompanying these financial statements was issued by
BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of
BDO International Limited, a UK company limited by guarantee.

Greek Orthodox Archdiocese of America
Financial Statements

Years Ended December 31, 2019 and 2018

Greek Orthodox Archdiocese of America
Contents

3-4

Independent Auditor’s Report
Financial Statements
Statements of Financial Position
as of December 31, 2019 and 20185

Statement of Activities
for the Year Ended December 31, 20196Statement of Activities
for the Year Ended December 31, 20187

Statements of Cash Flowsfor the Years Ended December 31, 2019 and 20188

Notes to Financial Statements

9-34

2

Tel: 212-371-4446
Fax: 212-371-9374
www.bdo.com

622 Third Avenue, Suite 3100
New York, NY 10017

Independent Auditor’s Report
To His Eminence Archbishop Elpidophoros of America
and the Members of the Archdiocesan Council
The Greek Orthodox Archdiocese of America
New York, New YorkWe have audited the accompanying financial statements of the Greek Orthodox Archdiocese of
America, which comprise the statements of financial position as of December 31, 2019 and 2018,
the related statements of activities and cash flows for the years then ended, and the related
notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audits to obtainreasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part ofthe international BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.

3

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the Greek Orthodox Archdiocese of America as of December 31, 2019 and2018, and the changes in its net assets and its cash flows for the years then ended, in accordancewith accounting principles generally accepted in the United States of America.

June 19, 20204

Greek Orthodox Archdiocese of America
Statements of Financial Position

2019

December 31,

2018

AssetsCash and cash equivalents
Accounts receivable, net
Contributions receivable
Total commitment receivable
Investments, at fair value
Inventory, net
Due from St. Nicholas Greek Orthodox Church andNational Shrine
Due from other related entities
Other receivables and other assets
Fixed assets, net
Beneficial interest in split-interest trusts
Investments held for others$

3,022,580 $
136,821
120,571936,819
11,237,187
434,128

2,744,009
90,131
93,862744,644
9,440,182
617,862

2,963,896
83,042641,183
5,250,590
618,8312,930,675

2,848,750
117,696
102,127
5,397,663
540,625
2,549,259

Total Assets$

28,376,323 $

25,286,810$

954,836 $
126,362
773,476
38,056
5,102,912
2,407,169
2,930,675

1,620,358
2,000,000
102,234
830,000
55,2635,224,799
2,136,215
2,549,259

12,333,486

14,518,128

Net Assets (Deficit)
Without donor restrictions
With donor restrictions

1,291,570
14,751,267(1,002,187)
11,770,869

Total Net Assets

16,042,837

10,768,682

28,376,323 $

25,286,810

Liabilities and Net Assets
Liabilities
Accounts payable and accrued expenses
Line of credit loan payable
Deferred revenue
Total commitment sharing payable
Due to other related entity
Mortgage loan payable, net
Other postretirement benefits obligations
Liability for funds held for others
Total Liabilities
Commitments and Contingencies

Total Liabilities and Net Assets$

See accompanying notes to financial statements.

5

Greek Orthodox Archdiocese of America
Statement of Activities

Year ended December 31, 2019
Without
Donor
Restrictions
Revenues and Other Support
Total commitment
Contributions and grants
In-kind contributions
Leadership 100 grants
FAITH grants
Clergy-Laity Congress contributions
Enthronement and luncheon contributions,net of benefit to donor costs of $405,293
Program revenue
Investment income, net
Change in fair value of beneficial
interest in split-interest trusts
Insurance proceeds
Other income
Net assets released from restrictions$

With Donor
Restrictions

Total

22,335,894 $
319,194
330,581-- $3,002,578
789,100
111,000
125,000

22,335,894
3,321,772
330,581789,100
111,000
125,000

2,907,065
48,156

540,639
1,621,516

540,6392,907,065
1,669,672

1,485,276
154,759
3,287,641

78,206(3,287,641)

78,206
1,485,276
154,759-

30,868,566

2,980,398

33,848,964

7,137,139
6,886,636-

7,137,139
6,886,636

2,366,077
1,910,073
2,297,601-

2,366,077
1,910,073
2,297,601

105,127-

105,127

260,313484,379
1,359
126,000-

260,313484,379
1,359
126,000

21,574,704-

21,574,704

7,000,105-

7,000,105

Total Supporting Services

7,000,105-

7,000,105

Total Expenses

28,574,809-

28,574,809

Changes in Net Assets

2,293,757

2,980,398

5,274,155

Net (Deficit) Assets, beginning of year

(1,002,187)

11,770,869

10,768,682

1,291,570 $

14,751,267 $

16,042,837

Total Revenues and Other Support
Expenses
Program services:
Education (including grants to HellenicCollege of $1,800,000)
Metropolis Ministries
Orthodoxy in the World (including grants to
Ecumenical Patriarchate of $1,259,000)
Communications
Community
St. Nicholas Greek Orthodox Church
and National Shrine (St. Nicholas)
Enthronement:
Contributions to St. Nicholas
Expenses
Clergy-Laity Congress
Disaster relief
Total Program Services
Supporting services:
General and administrative

Net Assets, end of year$

See accompanying notes to financial statements.

6

Greek Orthodox Archdiocese of America
Statement of Activities

Year ended December 31, 2018
Without
Donor
Restrictions
Revenues and Other Support
Total commitment
Contributions and grants
In-kind contributions
Leadership 100 grants
FAITH grants
Clergy-Laity Congress revenue andcontributions
Program revenue
Investment income (loss), net
Change in fair value of beneficial
interest in split-interest trusts
Other income
Net assets released from restrictions$

With Donor
Restrictions

Total

22,090,389 $
834,804
1,355,823-- $1,908,321
1,219,463
112,200

22,090,389
2,743,125
1,355,823
1,219,463
112,200

909,541
2,821,614
60,983419,250(37,989)

1,328,791
2,821,614
22,99487,517
3,216,528(60,599)(3,216,528)(60,599)
87,517-

31,377,199

344,118

31,721,317

6,430,416
6,882,667-

6,430,416
6,882,667

1,958,897
1,947,355
1,953,175-

1,958,897
1,947,355
1,953,175

1,449,765
1,113,873
333,903-1,449,765
1,113,873
333,903

22,070,051-

22,070,051

5,737,913
111,682-

5,737,913
111,682

Total Supporting Services

5,849,595-

5,849,595

Total Expenses

27,919,646-

27,919,646

Changes in Net Assets

3,457,553

344,118

3,801,671

Net (Deficit) Assets, beginning of year

(4,459,740)

11,426,751

6,967,011(1,002,187) $11,770,869 $

10,768,682

Total Revenues and Other Support
Expenses
Program services:
Education (including grants to HellenicCollege of $1,000,000)
Metropolis Ministries
Orthodoxy in the World (including grants to
Ecumenical Patriarchate of $1,000,000)
Communications
Community
St. Nicholas Greek Orthodox Church
and National Shrine (including
in-kind services of $1,355,823)
Clergy-Laity Congress
Disaster relief
Total Program Services
Supporting services:
General and administrative
Fundraising

Net (Deficit) Assets, end of year$

See accompanying notes to financial statements.

7

Greek Orthodox Archdiocese of America
Statements of Cash Flows

2019

Year ended December 31,
Cash Flows from Operating Activities
Changes in net assets
Adjustments to reconcile changes in net assets to net cash
provided by (used in) operating activities:
Depreciation
Amortization of financing costs
Net change in fair value of investments
Change in fair value of beneficial interest in
split-interest trusts
Changes in assets and liabilities:
Accounts receivable
Contributions receivable
Inventory, net
Due from St. Nicholas Greek Orthodox Church
and National Shrine
Due from other related entities
Other receivables and other assets
Total commitment receivable and sharing payable, net
Accounts payable and accrued expenses
Deferred revenue
Grants payable
Due to other related entities
Liability for funds held for others, net
Pension and other accrued postretirement benefits
obligations

2018

5,274,155 $

3,801,671

248,546
58,704(1,481,506)

243,2179,260
130,696(78,206)

60,599(46,690)(26,709)
183,734(3,105)(93,862)
73,285(115,146)
34,654(539,056)(248,699)(665,522)
24,128(17,207)-(2,848,750)
100,028
283,127(14,232)(1,136,968)
102,234(1,250,000)(1,168,618)(3,506,630)

270,954

247,978

2,876,134(4,970,070)

Cash Flows from Investing Activities
Purchases of investments
Proceeds from sales of investments
Purchases of fixed assets, net(10,177,799)
9,862,300(101,473)(16,484,219)
16,412,719(213,632)

Net Cash Used in Investing Activities(416,972)(285,132)

Cash Flows from Financing Activities
Proceeds from loans
Payments on loans
Financing costs(2,180,591)-

7,500,000(557,385)(212,076)

Net Cash (Used in) Provided by Financing Activities(2,180,591)

6,730,539

Net Increase in Cash and Cash Equivalents

278,571

1,475,337

Cash and Cash Equivalents, beginning of year

2,744,009

1,268,672$

Net Cash Provided by (Used in) Operating Activities

Cash and Cash Equivalents, end of year$

3,022,580 $

2,744,009

Additional Cash Flow Information
Interest paid$

259,889 $145,013

See accompanying notes to financial statements.

8

Greek Orthodox Archdiocese of America
Notes to Financial Statements

1. Organization and Nature of Activities
The Greek Orthodox Archdiocese of America (the Archdiocese) is the administrative body of the
Greek Orthodox Church in America (the Church). The Archdiocese relies primarily on funding fromits parishes located throughout the United States.
The Archdiocese is exempt from federal income taxes under Section 501(c)(3) of the Internal
Revenue Code (IRC) and similar state and local provisions. Therefore, no provision for income taxes
has been made in the accompanying financial statements. In addition, the Archdiocese has been
determined not to be a private foundation within the meaning of Section 509(a) of the IRC.
The Archdiocese is related to a number of other entities by virtue of its charter with the Ecumenical
Patriarchate, and by common board membership. The accompanying financial statements do notinclude the financial position, changes in net assets and cash flows of the following affiliatedorganizations:•

Holy Metropolises of Atlanta, Boston, Chicago, Denver, Detroit, New Jersey, Pittsburgh and
San Francisco and the Direct Archdiocesan District (combined, these are referred to as theMetropolis)•

Hellenic College, Inc.

•The Cathedral School•

Greek Orthodox Archdiocesan Cathedral of the Holy Trinity•

Saint Basil Academy•

Greek Orthodox Ladies Philoptochos Society, Inc.

•

St. Michael’s Home, Inc.

•

Order of Saint Andrew the Apostle Archons of the Ecumenical Patriarchate•

The Archbishop Iakovos Leadership 100 Endowment Fund, Inc. (Leadership 100)•

FAITH: An Endowment for Orthodoxy & Hellenism (FAITH)•

St. Nicholas Greek Orthodox Church and National Shrine (St. Nicholas)•

Friends of St. Nicholas, Inc.

•

St. Photios Greek Orthodox National Shrine

Program Services
The total commitment received from parishes and the grants and contributions from donors enable
the Archdiocese to operate various programs, primarily in the following areas:
Education – The Archdiocese promotes and supports programs that enhance religious and Greek
education, youth and young adult ministries and the summer camp experience at its Ionian Village
in Greece. Religious education includes the production of content in an array of themes related to
the Church and its ministry, including the publication of a bimonthly magazine. Greek education
supports the production of resources for Greek schools and families around the country. The youth
and young adult ministries are focused on helping the younger members of the Church to feel9

Greek Orthodox Archdiocese of America
Notes to Financial Statements

spiritually connected to the Church through various programs, such as Sunday school, developmentof camp curricula, educational online video series and youth retreats at parishes throughout theArchdiocese. The Ionian Village summer camp brings together American high school students abroad
for an exciting religious, cultural and educational experience with peers. Youth retreat programs
are also run by the Ionian Village during other times of the year. Direct grants to Hellenic College
are also included in this program and are further discussed in Note 13.
Metropolis Ministries – A portion of the total commitment supports each Metropolis by funding
certain Metropolis clergy and administrative staff salaries and benefits, insurance and otherexpenses of the Metropolis.
Orthodoxy in the World – In conjunction with the Ecumenical Patriarchate, the Archdiocese, throughits relevant departments and personnel, maintains and coordinates relationships with other
Orthodox jurisdictions in America, Christian denominations and inter-Christian organizations, otherfaiths and interfaith groups and global affairs, especially the United Nations. Expenses include
department personnel costs and metropolitan travel to synods at the Ecumenical Patriarchate andspecial events. Direct grants to the Ecumenical Patriarchate are also included in this program andare further discussed in Note 13.
Communications – The Archdiocese maintains resources that promote communication of current
events within the Archdiocese. The press office issues releases about or on behalf of the Office of
the Archbishop and about momentous occasions within the Church. Greek Orthodox
Telecommunications (also known as GoTelecom) is the Archdiocese’s audio-visual media arm, which
produces informational videos and documents significant events in the life of the Archdiocese. The
Archdiocese also publishes the Orthodox Observer, the Archdiocesan newspaper, which covers
current and upcoming events, pastoral reflections and educational columns. The Orthodox Observer
was published six times a year and was distributed free to homes and parishes across the country
through December 31, 2019. The Internet Ministries department ensures that current, accurate andrelevant materials are circulated online. It also maintains the websites of the Archdiocese, theEcumenical Patriarchate and a number of organizations or groups related to the Church. Services,such as website maintenance, bulletin builder and live-streaming may be provided for a fee toparishes within and outside the jurisdiction of the Archdiocese.
Community – The Archdiocese’s community activities comprise a wide-range of functions anddepartments, including registry, public relations, archives, philanthropy, parish management andfundraising resources, family care and ministry and the promotion of and assistance in the use of
the uniform parish software. Registry documents sacramental records (baptism, marriage, divorce,
death, etc.) of individuals within the Archdiocese. The public relations department promotes thepresence of the Archdiocese in the public sphere, especially in governmental and global relations,as well as coordinates certain affairs of the Ecumenical Patriarchate. The archives department
catalogs the historical record of the Archdiocese and major events of the Church. Its library is madeavailable to scholars and professors. The philanthropy division provides financial and medical
assistance to retired clergy, widowed presbyters and those in severe need. It also maintains
scholarship funds offered by donors. The Orthodox parish software is a uniform software for parishes
to easily track information, such as family relations, sacraments, donations, etc.
St. Nicholas Greek Orthodox Church and National Shrine (St. Nicholas) – In 2013, the Archdiocese
commenced a capital campaign on behalf of and for the specific purpose of rebuilding St. Nicholas.
Contributions received from this campaign are treated as custody funds and disbursed forconstruction and related rebuilding activities. Over the years, the Archdiocese incurred certain costs
10Greek Orthodox Archdiocese of America
Notes to Financial Statements

related to St. Nicholas that were not charged directly to the St. Nicholas rebuilding fund, consisting
primarily of fund-raising and personnel costs associated with St. Nicholas. In 2018, the fair value of
pro bono legal services provided to the Archdiocese to review the construction costs incurred on St.
Nicholas Greek Orthodox Church and National Shrine are included herein. In addition, theArchdiocese received significant pro bono accounting and investigative services from a professional
services firm, the value of which could not be determined.
In October 2018, the Friends of St. Nicholas, Inc. was established for the primary purpose of raisingfunds for the construction of St. Nicholas and associated maintenance, insurance and otherexpenses. Commencing in April 2019, the construction costs and expenses incurred by St. Nicholas
were borne by Friends of St. Nicholas, Inc.
Enthronement – In June 2019, His Eminence Archbishop Elpidophoros was enthroned as theArchbishop of the Archdiocese, succeeding His Eminence Archbishop Demetrios who retired in
May 2019. The enthronement ceremonies included a luncheon to benefit St. Nicholas. The
contributions received and expenses incurred during the enthronement and the luncheon were as
follows:
Enthronement
Contributions
Contributions from donors
Contribution from the Archdiocese$

Luncheon

305,800 $-640,132
25,474

Total Contributions

305,800

665,606

Expenses
Contractors and consultants
Hotel accommodation, travel, venue and related expenses
Meals
Printed materials and audio/video production
Equipment, materials and supplies
Other expenses

22,005
260,130
69,204
126,163
6,877

12,705343,322
49,266-

Total Expenses

484,379405,293$

Contribution to Friends of St. Nicholas, Inc.

- $260,313

The net proceeds of the luncheon and the contribution from the Archdiocese totaled $260,313. This
amount was contributed to Friends of St. Nicholas, Inc. as presented in the accompanying statementof activities for the year ended December 31, 2019.
Clergy-Laity Congress – The Clergy-Laity Congress, the legislative body of the Archdiocese, isconvened biennially and presided over by the Archbishop. It is concerned with all matters, otherthan doctrinal or canonical, affecting the life, growth and unity of the Church, the institutions,finances, administration, and educational and philanthropic concerns. The annual total commitment
revenue goal for the Archdiocese is determined during the Clergy-Laity Congress. The delegates to
the Clergy-Laity Congress are pastors and elected lay representatives.

11

Greek Orthodox Archdiocese of America
Notes to Financial Statements

The revenue and expenses of the 2018 Clergy-Laity Congress were as follows:
Revenues and Other Support
Contributions$

419,250

Revenue:
Registration fees
Exhibit fees
Miscellaneous

792,034
113,750
3,757

Total Revenue

909,541
1,328,791

Total Revenues and Other Support
Expenses, including expenses directly incurred by the archdiocese:
Salaries, wages and benefits (secretary)
Professional fees and other outside services (transcription)
Transportation, travel, meals and related expenses(hotels, meals and entertainment and transportation)
Books, videos and other educational and religious materials(audio-visual data and printing)
Postage and delivery services
Equipment and supplies (computer software and office supplies)
Dues, fees and subscriptions (bank fees and other charges
Other expenses (exhibitors and miscellaneous expenses)

2,500
945
707,504
19,201
485
60,772
24,602
39,635855,644

Total Expenses
Excess of Revenue and Other Support Over Expenses (Net Event Revenue)$

473,147

The Metropolis of Boston hosted the 2018 Clergy-Laity Congress and received a portion of the net
event revenue, which amounted to $258,229. This amount is presented as Metropolis share in net
event revenue in the schedule of functional expenses in Note 3 and, together with total expenses
of $855,664, the overall expenses of the 2018 Clergy-Laity Congress amount to $1,113,873 as shownon the statement of activities for the year ended December 31, 2018.
Disaster Relief – The Archdiocese participates in relief efforts in the event of major fire, global
conflicts and natural disasters, primarily through solicitation of contributions from parishioners andother donors and distribution of aid to those in need of assistance in the affected areas.

2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (U.S. GAAP) using the accrual basis ofaccounting.

12

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Classifications of Net Assets
The classification of a not-for-profit organization’s net assets and its support, revenue and expenses
is based on the existence or absence of donor-imposed restrictions. It requires that the amounts foreach of two classes of net assets—with donor restrictions and without donor restrictions—bedisplayed in a statement of financial position and that the amount of change in each of those classesof net assets be displayed in a statement of activities.
These classes are defined as follows:
Without Donor Restrictions - Net assets that are not subject to donor-imposed stipulations and that
may be expended for any purpose in performing the primary objectives of the Archdiocese. Included
within net assets without donor restrictions is a board-designated fund, the Cathedral Fund that was
designated by Archbishop Iakovos, to be used, upon approval, for the benefit of the Greek Orthodox
Archdiocesan Cathedral of the Holy Trinity and Cathedral related projects. As of December 31, 2019and 2018, the Cathedral Fund had balances of $1,026,790 and $1,240,791, respectively, which areincluded in investments in the accompanying statements of financial position.
With Donor Restrictions - Net assets resulting from contributions and other inflows of assets whose
use by the Archdiocese is limited by donor-imposed stipulations that either expire by the passageof time or can be fulfilled and removed by the actions of the Archdiocese pursuant to those
stipulations. When such stipulations end or are fulfilled, such net assets are reclassified to net assets
without donor restrictions and reported as net assets released from restrictions in the statementsof activities.
Net assets with donor restrictions also include net assets resulting from contributions whereby theprincipal has been stipulated by the donor to be held and invested in perpetuity and the income
used in accordance with the donor’s stipulations, if any.
Cash and Cash Equivalents
The Archdiocese considers all highly liquid investments with original maturities of three months orless from the date of purchase to be cash equivalents, except for those cash equivalents that areincluded in the Archdiocese’s investment portfolio, which are held for long-term purposes.
Investments, at Fair Value
Investments in money market funds, mutual funds and equity securities are reported at fair value
based on published unit values or quoted market prices in active markets as of the reporting date.
Investments in debt securities are measured using quoted market prices where available. If quoted
market prices for debt securities are not available, the fair value is determined using an income
approach valuation technique that considers, among other things, rates currently observed inpublicly traded markets for debt with similar terms to companies with comparable credit risk, theissuer’s credit spread, and illiquidity by sector and maturity. All investments are managed by outside
investment advisors subject to the review, approval, and control by the Archdiocese. Suchvaluations involve assumptions and methods that are reviewed by the Archdiocese.

13

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Purchases and sales of securities are reflected on a trade-date basis. Gains and losses on sales of
securities are determined based on average cost and are recorded in the statements of activities in
the period in which the securities are sold. Dividends and interest are recognized as earned.
Contributed investments are valued at their fair market value on the date received.
Investment securities, in general, are exposed to various risks, such as interest rate, credit andoverall market volatility. Due to the level of risk associated with certain investment securities, it isreasonably possible that changes in the values of investment securities will occur in the near termand such changes could materially affect the amounts reported in the accompanying financial
statements.
Fair Value Measurements
Professional standards establish a framework for measuring fair value and expand the disclosuresabout fair value measurements. U.S. GAAP defines fair value as the price that would be received tosell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date in a principal or most advantageous market. Fair value is a market-based
measurement that is determined based on inputs, which refer broadly to assumptions that market
participants use in pricing assets or liabilities. These inputs can be readily observable, market
corroborated, or unobservable. U.S. GAAP established a fair value hierarchy, which prioritizes the
inputs to valuation techniques used to measure fair value in three broad levels. The standard
requires that assets and liabilities be classified in their entirety based on the level of input that issignificant to the fair value measurement. Assessing the significance of a particular input may
require judgment considering factors specific to the asset or liability and may affect the valuationof the asset or liability and their placement within the fair value hierarchy. The Archdioceseclassifies fair value balances based on the fair value hierarchy defined by U.S. GAAP, as follows:
Level 1 – This level consists of quoted prices that are available in active markets for identical assets
or liabilities as of the measurement date.
Level 2 – This level consists of pricing inputs other than quoted prices in active markets, which areeither directly or indirectly observable as of the measurement date. The nature of these securities
includes investments for which quoted prices are available but traded less frequently andinvestments that are fair valued using other securities, the parameters of which can be directly
observed. Bonds securities are priced by the Archdiocese’s custodian using nationally recognizedpricing services. Bond securities generally do not trade on a daily basis. For these securities, thepricing services prepare estimates of fair value measurements using their proprietary pricing
applications, which include available relevant market information, benchmark curves,
benchmarking of similar securities, sector groupings and matrix pricing. These investments areclassified as Level 2.
Level 3 – This level consists of securities that have little to no pricing observability as of themeasurement date. These securities are measured using management’s best estimate of fair value,
where the inputs into the determination of fair value are not observable and require significant
management judgment or estimation. Also included in Level 3 are investments measured using a
net asset value (NAV) per share, or its equivalent, that can never be redeemed at NAV at thestatement of financial position date or in the near term or for which redemption at NAV is uncertain
due to lockup periods or other investment restrictions.

14

Greek Orthodox Archdiocese of America
Notes to Financial Statements

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any
input that is significant to the fair value measurement. However, the determination of what
constitutes “observable” requires significant judgment by the Archdiocese. The Archdiocese
considers observable data to be that market data that is readily available, regularly distributed or
updated, reliable and verifiable, not proprietary, and provided by independent sources that are
actively involved in the relevant market. The categorization of a financial instrument within thehierarchy is based upon the pricing transparency of the instrument and does not necessarily
correspond to the Archdiocese’s perceived risk of that instrument.
Risks and Uncertainties
The Archdiocese’s investments consist of a variety of investment securities and investment funds.
Investments in general are exposed to various risks, such as interest rate, credit, and overall market
volatility risk. Due to the level of risk associated with certain investments, it is reasonably possiblethat changes in the value of the Archdiocese’s investments will occur in the near term and that suchchanges could materially affect the amounts reported in the accompanying financial statements.
Inventory
Inventory is valued at the lower of cost or market. Such inventory consists primarily of religious
books, publications and other program-related literature and materials. The Archdiocese recorded
a provision for slow-moving inventory of $150,000 and $119,290 during 2019 and 2018, respectively,
which is presented under education expenses in the accompanying statements of activities. There
were no inventory write-offs during 2019 and 2018. As of December 31, 2019 and 2018, the reserve
for slow-moving inventory amounted to $325,000 and $175,000, respectively, which is presented asa deduction from inventories in the accompanying statements of financial position.
Receivables
Due to the uncertainty surrounding collection, management provides an allowance for doubtful
accounts based on the consideration of the type of receivable, responsible party, the known
financial condition of the respective party, historical collection patterns and comparative aging.
The allowance is maintained at a level management considers adequate to provide for subsequentadjustments and potential uncollectible accounts. The estimates are reviewed periodically and, if
the financial condition of a party changes significantly, management will evaluate the recoverabilityof any receivables from that organization and write off any amounts that are no longer considered
to be recoverable. Any payments subsequently collected on such receivables are recorded as incomein the period received. Management recorded an allowance for doubtful accounts of $38,000 during
the year ended December 31, 2019. No allowance for doubtful accounts was required for the year
ended December 31, 2018.
Fixed Assets, Net
Land, buildings, building improvements and equipment are recorded at cost or, if donated, at fairmarket value, at the date of the gift, less accumulated depreciation. Effective January 1, 2019, theArchdiocese increased the capitalization threshold for each land, buildings and equipment item witha useful life of more than one year from $1,000 to $3,500. Depreciation is calculated on a straightline basis.

15

Greek Orthodox Archdiocese of America
Notes to Financial Statements

The estimated useful lives of the assets are as follows:
Building and improvements
Furniture, fixtures and equipment
Website development cost
Fine arts

40 years
3 to 10 years
5 years
3 years

Impairment of Fixed Assets
The Archdiocese reviews fixed assets for impairment whenever events or changes in businesscircumstances indicate that the carrying amount of an asset may not be fully recoverable. An
impairment loss would be recognized when the future cash flows from the use of the asset are lessthan the carrying amount of that asset. As of December 31, 2019 and 2018, there were no suchlosses.
Due to/from Other Related Entities
Amounts due to/from other related entities represent amounts owed to and/or expenses paid on
behalf of Archdiocesan affiliates. Loans received from related entities are separately presented asloans payable.
Beneficial Interest in Split-Interest Trusts Held by Others
The Archdiocese is the beneficiary of perpetual trusts whereby the donors contributed assets tothird-party trustees. The trustees distribute investment income annually to the Archdiocese and theother named beneficiaries in the percentages specified in the trust documents. These distributions
are reported as an increase in net assets in the statements of activities based on the existence orabsence of donor-imposed restrictions.
The Archdiocese values the trusts at their fair values, which are represented by the percentage
ownership of the assets in the trusts. Changes in the fair value of the trusts’ assets are reported in
the statements of activities within net assets with donor restrictions.
Funds Held for Others
The Archdiocese holds funds, consisting of cash and investments, on behalf of other parties. As thesefunds can be used or directed by the Archdiocese only in accordance with the other parties’
direction, a liability for funds held for others is recorded. The assets and the related liabilities arestated at fair value in the accompanying statements of financial position. Additions, disbursements,
investment income (loss) and any unrealized gain or loss on the investments are recognized asincreases or decreases in assets and liability and are not reported in the accompanying statementsof activities.
Total Commitment
Total commitment represents the annual financial assessment to every parish in the Archdiocese tohelp support the mission of the Church. The unpaid total commitment at the end of the year isrecorded as a receivable, net of an allowance for doubtful accounts, if required.
16

Greek Orthodox Archdiocese of America
Notes to Financial Statements

The total commitment is determined at the biennial Clergy-Laity Congress, which amounted toapproximately $22,660,000 for 2020 and $22,000,000 for 2019.
Contributions and Grants
The Archdiocese records contributions of cash and other assets when an unconditional promise togive such assets is received from a donor. Contributions are recorded at the fair value of the assets
received and are reported as an increase in net assets without donor restrictions unless the use of
the related assets is limited by donor-imposed restrictions.
Contributions not expected to be received within one year are recognized as support with donor
restrictions and are discounted using a risk-adjusted discount rate assigned in the year the pledge
originates.
The Archdiocese reports gifts of property and equipment as unrestricted support unless explicit
donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with
explicit restrictions that specify how the assets are to be used and gifts of cash or other assets thatmust be used to acquire assets are reported as with donor restrictions. Absent explicit donor
stipulations about how long such assets must be maintained, the Archdiocese reports expirations ofdonor restrictions when the donated or acquired long-lived assets are placed in service.
Donated goods and services used by the Archdiocese are recorded as in-kind contributions at theirestimated fair value at the date of receipt. During 2019, the Archdiocese received on a pro bonobasis consulting services and legal services with estimated values of $80,493 and $250,088,
respectively. During 2018, the Archdiocese received legal services on a pro bono basis, including
services related to St. Nicholas, with an estimated value of $1,355,823. These amounts arepresented in the accompanying statements of activities as in-kind contribution revenue without
donor restrictions and in-kind program expenses (see in-kind professional services in Note 3). In
addition, in 2018, the Archdiocese received significant donated professional services that the donor
was not able to provide the fair value of.
In 2013, the Archdiocese commenced a capital campaign on behalf of and for the specific purposeof rebuilding St. Nicholas. As St. Nicholas is the specified beneficiary of any contributions received
from this campaign, the Archdiocese is accounting for this arrangement as an agency transaction.
As such, contributions received resulting from the capital campaign and subsequent disbursements
made by the Archdiocese from these funds, are not reflected in the accompanying statements ofactivities. Funds collected are recorded as an asset within funds held for others and as a liability
for funds held for others in the accompanying statements of financial position. Subsequentdisbursements are recorded as a reduction of these assets and liability balances.
Investment return on contributions with donor restrictions are recorded in the net assets without
donor restrictions class unless the investment return is explicitly restricted by the donor to be used
for the same purpose as the contribution.
Contributions that are restricted by donors in perpetuity are recorded as permanently restrictedwithin net assets with donor restrictions. The income is used for operating purposes when
expenditures satisfy the donors’ restrictions and such amounts are appropriated for expenditure by
the Archdiocese. Income amounts that exceed related expenditures during a fiscal period remain as
net assets with donor restrictions.
17

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Revenue Recognition
The Archdiocese adopted Accounting Standards Codification (ASC) Topic 606, “Revenue fromContracts with Customers (ASC 606),” on January 1, 2019. The Archdiocese recognizes revenue whencontrol of the promised goods and services is transferred to outside parties in an amount that reflects
the consideration that the Archdiocese expects to be entitled to in exchange for goods and thoseservices. ASC 606 also requires new and expanded disclosures regarding revenue recognition to ensure
an understanding as to the nature, amount, timing and uncertainty of revenue and cash flows arisingfrom contracts with customers. The Archdiocese has identified program revenues, which consist ofregistration fees, exhibit fees, sales of religious books, Greek education books, publications andprogram-related materials, and advertising as categories subject to the adoption of ASC 606.
The Archdiocese adopted ASC 606 using the modified retrospective approach and determined that
adoption of ASC 606 did not have a material impact on the Archdiocese’s financial statements;
therefore, no transition adjustment was required upon adoption. Further, the results of the adoptionof ASC 606 did not have an impact on the financial position or changes in net assets of theArchdiocese.
Revenue from contracts with customers during 2019 and 2018 is comprised of the following:
2019

December 31,
Program revenue:
Registration fees for Ionian Village summer camp andrelated programs
Sale of religious books, Greek education books,
publications and program-related materials
Advertising fees

Clergy-Laity Congress program revenue:
Registration fees
Exhibit fees
Miscellaneous

2018

1,986,080 $

1,861,039

778,622
142,363

890,341
70,234$

2,907,065 $

2,821,614

$

- $
-

792,034
113,750
3,757

$

- $

909,541$

Registration and exhibit fees are recognized as revenue in the period that the events and related
programs are held and the performance obligations are met. The Ionian Village summer camp andrelated programs are held annually. The Clergy-Laity Congress is held every two years.
Revenue from the sales of religious books, Greek education books, publications and program-relatedmaterials is recognized at the point of sale. Returns and discounts are minimal and not material;
accordingly, these are recognized as reduction from sales at the time the returns or discounts areallowed.
The Orthodox Observer provides advertising space to various businesses and organizations. Fees
received are recorded as revenue at the time of publication.

18

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Functional Allocation of Expenses
Costs related to the various programs and activities of the Archdiocese have been summarized on afunctional basis in the accompanying statements of activities and the schedule of functional
expenses in Note 3. These costs can generally be directly identified with the program service towhich they relate and are charged accordingly. Indirect expenses have been allocated amongst the
programs and supporting services benefited on the basis of the number of employees per department
performing more than one function and/or supporting services.
Income Taxes
The Archdiocese follows U.S. GAAP, which requires accounting for uncertainty in tax positions taken
or expected to be taken in a tax return, including issues relating to financial statement recognition
and measurement. U.S. GAAP provides that the tax effects from an uncertain tax position can only
be recognized in the financial statements if the position is “more-likely-than-not” to be sustained
if the position were to be challenged by a taxing authority. The assessment of the tax position isbased solely on the technical merits of the position, without regard to the likelihood that the tax
position may be challenged.
The Archdiocese is incorporated in the state of New York and is exempt from federal income tax
under IRC section 501(c)(3), though it is subject to tax on income unrelated to its exempt purpose,
unless that income is otherwise excluded by the IRC. The Archdiocese has no significant unrelated
income associated with its exempt purpose. The Archdiocese has processes presently in place toensure the maintenance of its tax-exempt status, to identify and report unrelated income, todetermine its filing and tax obligations in jurisdictions for which nexus was established, and to
identify and evaluate other matters that may be considered tax positions. The Archdiocese has
determined that there are no material uncertain tax positions that require recognition or disclosurein the financial statements.
New Accounting Pronouncements Issued but Not Yet Adopted
Leases (Topic 842)
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards
Update (ASU) 2016-02, “Leases (Topic 842),” to increase transparency and comparability among
foundations by recognizing lease assets and lease liabilities on the statements of financial positionand disclosing key information about leasing arrangements for lessees and lessors. The new standard
applies a right-of-use (ROU) model that requires, for all leases with a lease term of more than 12
months, an asset representing its ROU, the underlying asset for the lease term and a liability tomake lease payments to be recorded. The ASU is effective for the Archdiocese’s fiscal years
beginning after December 15, 2020, with early adoption permitted. Management believes that thisASU will not have a material impact on its financial statements.

19

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Not-for-Profit Entities (Topic 958)
In June 2018, the FASB issued ASU 2018-08, “Clarifying the Scope and the Accounting Guidance forContributions Received and Contributions Made,” which requires organizations to determine
whether a contribution is conditional based on whether an agreement includes a barrier that must
be overcome and either a right of return of assets transferred or a right of release of a promisor’s
obligation to transfer assets. If the agreement (or a referenced document) includes both, therecipient is not entitled to the transferred assets (or a future transfer of assets) until it has overcome
the barriers in the agreement. For contributions received by the Archdiocese, this update iseffective for fiscal years beginning after December 15, 2019. For contributions made, this update iseffective for fiscal years beginning after December 15, 2020. Management believes this ASU will nothave a material impact on its financial statements.
Concentration of Credit Risk
Financial instruments that potentially subject the Archdiocese to concentrations of credit andmarket risk consist principally of cash and cash equivalents and investments on deposit withfinancial institutions, which, from time to time, may exceed the Federal Deposit Insurance
Corporation limit. Management does not believe that a significant risk of loss due to the failure ofa financial institution used by the Archdiocese is likely.
Use of Estimates
In preparing financial statements in conformity with U.S GAAP, management is required to makeestimates and assumptions that affect the reported amounts of assets and liabilities and thedisclosure of contingent assets and liabilities at the date of the financial statements, and revenues
and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications
Certain 2018 balances have been reclassified to conform with the 2019 financial presentation.

The remainder of this page intentionally left blank.

20

Greek Orthodox Archdiocese of America
Notes to Financial Statements

3. Functional Expenses
The expenses of the Archdiocese by function and natural expense classification are presented below:
Year Ended December 31, 2019
Program Services

ExpenseSalaries, wages and benefits
Professional fees and other outside services,
excluding in-kind services
In-kind professional services
Grants to Ecumenical Patriarchate
Grants to Hellenic College
Contribution to St. Nicholas
Scholarships, grants and other contributions
and assistanceTransportation, travel, meals and related
expenses
Facilities expense
Insurance
Metropolises share of total commitments
Books, videos and other educational andreligious materials
Postage and delivery services
Dues, fees and subscriptions
Equipment and supplies
Interest
Other expenses$

Total Functional Expenses
Less benefit to donor costs deducted fromenthronement and luncheon contributions
Total Functional Expenses as Presented inStatement of Activities$

Education

Metropolis
Ministries

1,817,630 $

5,423,648 $Orthodoxyin the World
470,488 $Communications

St. Nicholas
Greek Orthodox
Church andNational Shrine(St. Nicholas)

Community

1,148,191 $

1,672,825 $

95,005 $Enthronement:
Contribution to
St. Nicholas- $Supporting Services

Enthronement:
Expenses- $Clergy-Laity
Congress

Disaster Relief- $10,627,787

3,189,978 $3,189,978 $13,817,765

General and
Administrative

Total

- $

Total

Total
Program andSupporting
Services$299,3421,800,000--

162,851
1,259,000-

87,932-

108,701--

260,31322,005---680,831
1,259,000
1,800,000
260,313

1,289,493
330,581-

1,289,493
330,581-1,970,324
330,581
1,259,000
1,800,000
260,313578,36530

193,718-

348,864

-

-

-

-

126,000

1,246,977

238,541

238,541

1,485,518

1,459,454
320,407
4,853
-

282
1,756
647,243
773,476

138,898
6,078
-

4,838
15,064-

98,59541,846
-

5,683
47
-

-

616,157
1,153
-

1,048
-

-

2,324,955
386,351
652,096
773,476

297,888
559,051
333,467-

297,888
559,051
333,467-

2,622,843
945,402985,563
773,476

478,352
63,35948,674
176,755
89,948

2,670
1,542
5,079
30,91090,993
1,133
28,651
8,643
5,624

311,722
312,792
12,118
8,678
8,738

2,410
2,394
1,086
12,487
8,393

615
58
3,719

-

118,470749
990
126,163
3,985

214
97
-

-

1,001,947
383,926
93,158337,863
151,317

1,282
25,38566,071
301,822309,889
56,657

1,282
25,38566,071
301,822309,889
56,657

1,003,229
409,311
159,229
639,685
309,889
207,974

7,137,139

6,886,636

2,366,077

1,910,073

2,297,601

105,127

260,313889,672

1,359

126,000

21,979,997

7,000,105

7,000,105

28,980,102

-

-

-

-

-

-

-

(405,293)--(405,293)--(405,293)

7,137,139 $

6,886,636 $2,366,077 $

1,910,073 $2,297,601 $

105,127 $

260,313 $484,379 $

1,359 $

126,000 $21,574,704$

7,000,105 $

7,000,105 $

28,574,809

Total

Total
Program andSupporting
ServicesYear Ended December 31, 2018
Program Services

ExpenseSalaries, wages and benefits
Professional fees and other outside services, excluding
in-kind services
In-kind professional services
Grants to Ecumenical Patriarchate
Grants to Hellenic College
Scholarships, grants and other contributions and assistanceTransportation, travel, meals and related expenses
Facilities expense
Insurance
Metropolises share of total commitments
Metropolis share of net event revenue
Books, videos and other educational and religious materials
Postage and delivery services
Dues, fees and subscriptions
Equipment and supplies
Interest
Other expenses$

Total Functional Expenses$

Education

Metropolis
Ministries

1,861,013 $

5,268,313 $

125,388
1,000,000
590,625
1,455,479
525,499
46,740452,799
62,19069,421
78,087
163,175
6,430,416 $

2,200
18,267
2,036
753,845
830,000
128
795
389
6,694
6,882,667 $Orthodoxyin the World
517,140 $
58,8111,000,000
170,200
152,714
16,807
15,742
562
3,495
1,209
22,217
1,958,897 $Communications

Community

1,262,527 $

1,579,545 $

54,6884,161
50,839269,656
293,281
6,969
602
4,632

67,442
107,288
55,47173,79345,253
4,424
2,980
3,528
13,451

1,947,355 $

1,953,175 $21

Supporting Services
St. Nicholas
Greek Orthodox
Church andNational Shrine
90,142 $1,355,823
79
39
3,682
1,449,765 $Clergy-Laity
Congress
2,500 $
945
707,504
258,229
19,201
485
60,772
24,602
39,635
1,113,873 $Disaster Relief- $General and
Administrative

Total
10,581,180

333,903-307,274
1,355,823
1,000,000
1,000,000
1,204,216
2,393,596
668,974
800,585
830,000
258,229
802,651
361,149
144,432
108,456
253,486

333,903 $22,070,051$$

Fundraising

2,816,935 $

110,979 $2,927,914 $

13,509,094

935,534
138,463
188,336
676,509569,785
20,951
20,626110,938
40,573
183,180
36,08350
653

935,534
138,463
188,336
676,509569,785
20,951
20,626110,938
40,623
183,180
36,736

1,242,808
1,355,823
1,000,000
1,000,000
1,342,679
2,581,932
1,345,483
1,370,370
830,000
258,229
823,602381,775
255,370
149,079
183,180
290,2225,737,913 $

111,682 $5,849,595 $

27,919,646

Greek Orthodox Archdiocese of America
Notes to Financial Statements

4. Liquidity and Available Resources
The following reflects the Archdiocese’s financial assets as of December 31, 2019 and 2018, reducedby amounts not available for general use because of contractual or donor-imposed restrictions.
Amounts not available include amounts set aside for long-term investing in the board-designatedfund (see Note 2) that could be drawn upon if the governing body of the Archdiocese approves that
action. However, appropriations from the Cathedral Fund totaling $600,000 and $238,416 for 2020
and 2019, respectively, have not been subtracted as unavailable.
2019

December 31,
Financial assets*
Less amounts unavailable for general expenditures in thefollowing year:
Contractual or donor-imposed restrictions:
Restricted by donors with purpose restrictions
Required by donors to be held in perpetuity**
Board-designated for the Cathedral Fund:
Balance, end of year
Amount appropriated in the following year
Amount unavailable in the following year
Financial Assets Available to Meet Cash Needs for
General Expenditures in the Following Year
*

$

$

2018

16,095,161 $

13,214,955(11,882,312)(2,250,124)(9,192,161)(2,038,083)(1,026,790)
600,000(426,790)(1,240,791)
238,416(1,002,375)

1,535,935 $

982,336

Financial assets are total assets less a) inventory, net, b) due from St. Nicholas Greek Orthodox
Church and National Shrine, c) due from other related entities, d) fixed assets, net, e) beneficial
interest in split-interest trusts, and f) investments held for others.

** Excludes beneficial interest in split-interest arrangements.
The Archdiocese is substantially supported by its parishes throughout the United States. It also
derives revenues from ministries, registries and sales of books, materials and other publications. In
addition, the Archdiocese receives donor contributions with or without donor restrictions. Because
a donor’s restriction requires resources to be used in a particular manner or in a future period, theArchdiocese must maintain sufficient resources to meet those responsibilities to its donors.
The Archdiocese continues to put in place policies and procedures to ensure that the cost control
measures implemented in recent years are maintained. As a result, the Archdiocese’s liquidity
continues to improve, enabling it to undertake financial commitments in addition to meeting its
general expenditures, liabilities and other obligations as they became due. The Archdiocese’s
financial goals through its budgetary processes include establishing a fund that may be drawn uponin the event of financial need or an immediate liquidity need. Additional liquidity is also available
through its unused line of credit (see Note 8).

22Greek Orthodox Archdiocese of America
Notes to Financial Statements

5. Investments, at Fair Value
Investments, by fair value hierarchy, consisted of the following:
December 31, 2019
Money market funds
Treasury bills
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Fixed-income annuity

Level 1

Level 2

Level 3

Total$

2,223,531 $
338,522
3,610,312
2,503,097-- $317,027
2,158,475-- $86,2232,223,531
338,522
3,610,312
2,503,097
317,027
2,158,475
86,223$

8,675,462 $2,475,502 $86,223 $11,237,187

Level 1

Level 2$

1,892,372 $
2,872,455
1,962,841-- $524,335
2,053,268
50,000-- $84,911

1,892,372
2,872,455
1,962,841
524,335
2,053,268
50,00084,911$

6,727,668 $2,627,603 $

84,911 $9,440,182

December 31, 2018
Money market funds
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities
Fixed-income annuity

Level 3Total

The following table summarizes the changes in the Archdiocese’s Level 3 investments:
December 31,

2019

2018

Balance, beginning of year
Transferred to money market funds (Level 1)
Net appreciation in fair value of investments$

84,911 $
1,312

93,404(9,384)
891

Balance, end of year$

86,223 $84,911The Archdiocese had no financial assets or financial liabilities that were measured at fair value on
a non-recurring basis during the years ended December 31, 2019 and 2018. In addition, transfers
between levels are noted above.
Investment income consisted of the following:
2019

December 31,

2018

Interest and dividends, net$
Net appreciation (depreciation) in fair value of investments

188,166 $1,481,506

153,690(130,696)$

1,669,672 $

22,99423

Greek Orthodox Archdiocese of America
Notes to Financial Statements

6. Fixed Assets, Net
Fixed assets, net, consisted of the following:
2018

2019

December 31,
Land
Building and improvements
Furniture, fixtures and equipment
Website development costs
Fine arts$

Less: accumulated depreciation$

431,223 $7,507,576
730,632
10,185471,223
8,469,897
2,589,647
464,263
10,185

8,679,616

12,005,215(3,429,026)(6,607,552)

5,250,590 $

5,397,663

Depreciation expense amounted to $248,546 and $243,217 for the years ended December 31, 2019and 2018, respectively.

7. Investments Held for Others and Related Liability
Investments held for others, by fair value hierarchy, consisted of the following:
December 31, 2019
Money market funds
Treasury bills
Common stock
Mutual funds
Corporate bonds
Municipal bonds$

Level 1

Level 2

Level 3

Total

542,473 $99,174
1,589,247
492,851-- $31,243112,744- $-542,473
99,174
1,589,247
492,851
31,243112,7442,723,745

143,987-2,867,732

Cash held for the account of
St. Nicholas Greek Orthodox
Church and National Shrine

62,943$24

2,930,675

Greek Orthodox Archdiocese of America
Notes to Financial Statements

December 31, 2018
Money market funds
Treasury bills
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities$

Level 1

Level 2

Level 3

Total

158,061 $349,979
1,203,117
497,305
-

- $
9,977
205,328
50,000- $-158,061
349,979
1,203,117
497,305
9,977
205,328
50,0002,208,462

265,305-

2,473,767

Cash held for the account of
St. Nicholas Greek Orthodox
Church and National Shrine

75,492$2,549,259

The activity in the liability funds held for others is presented in the following tables.
December 31, 2019
Balance,January 1,
2019
Archbishop Iakovos Library
Trust
St. Basil Spyropoulos FundSpyridon Trust IM
St. Nicholas Greek Orthodox
Church and National Shrine

Additions$ 1,042,469 $
922,661
508,637
75,492$ 2,549,259 $- $83
238,745
238,828 $Net
Investment
Income202,876 $
240,552
108,870
552,298 $Balance,
December 31,
Payments
2019(50,000) $ 1,195,345
1,163,296(108,416)
509,091(251,294)

62,943(409,710) $ 2,930,675

December 31, 2018
Balance,January 1,
2018
Archbishop Iakovos Library
Trust
St. Basil Spyropoulos FundSpyridon Trust IM
St. Nicholas Greek Orthodox
Church and National Shrine

Additions$ 1,106,372 $
945,153664,295
3,953,338- $101
3,936,880$ 6,669,158 $ 3,936,981 $25

Net
Investment(Loss)
Income(13,903) $(22,593)(38,158)
94

Balance,
December 31,
Payments
2018(50,000) $ 1,042,469
922,661(117,500)
508,637(7,814,820)

75,492(74,560) $ (7,982,320) $ 2,549,259

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Contributions received by Archdiocese for which St. Nicholas is the beneficiary and the subsequentdisbursements made by the Archdiocese from these funds, are accounted for as agency transactions.
Funds collected are recorded as an asset within funds held for others and as a liability for funds
held for others in the accompanying statements of financial position. Subsequent disbursements arerecorded as a reduction of these assets and liability balances.
In October 2018, the Friends of St. Nicholas, Inc. was established for the primary purpose of raisingfunds for the construction of St. Nicholas and oversight of all construction and maintenanceactivities. As a result, contributions received by the Archdiocese for St. Nicholas decreased
substantially in 2019 as compared to those of prior years. Contributions received by the Archdiocese
totaled approximately $124,000 in 2019 and $1.1 million in 2018.

8. Debt
Line of Credit Loan Payable
On June 28, 2018, a local bank (the Lender) extended the Archdiocese a variable rate revolving lineof credit (LOC) in the amount $3.0 million. Loans drawn under the LOC bear interest based on thehighest published prime rate in the money tables of the Wall Street Journal, which in no event shallbe lower than 4.75% a year. The Archdiocese borrowed $2.0 million from the LOC (the LOC loan)
with an interest rate of 5.5% on June 28, 2018. The $2.0 million was fully paid in 2019.
The LOC was renewed in 2019 in the amount of $5.0 million (the Renewal LOC). The Renewal LOC
will mature on January 1, 2021. Loans drawn on the Renewal LOC are subject to a variable interest
rate based on changes in an independent index, which is the highest published prime rate in themoney tables of the Wall Street Journal, but not less than 4.75% a year. The rate is currently at 5%a year on a 360-day year.
There were no loans outstanding under the Renewal LOC at December 31, 2019.
Mortgage Loan Payable
In addition to the LOC, the Archdiocese obtained a mortgage loan from the Lender in the amountof $5.5 million (the Mortgage Loan). The Mortgage Loan bears interest at 4.25% a year and is payable
in monthly installments of $34,243 commencing August 1, 2018 through June 1, 2023. The Mortgage
Loan is based on a 20-year amortization period and a lump-sum payment of the loan balance on
July 1, 2023 (the Maturity Date), together with any accrued interest. The Maturity Date may be
extended to July 1, 2028 at the option of the Archdiocese (the Extension Option). If the Archdiocese
exercises the Extension Option, the Archdiocese will make the 60th monthly payment of $34,243 on
July 1, 2023. Thereafter, the remaining balance of the Mortgage Loan shall be payable in monthly
installments, commencing August 1, 2023, to be determined based on a 15-year amortization period
at an interest rate calculated based on the five-year Federal Home Loan Bank of New York (FHLBNY),
which in no event shall be lower than 4.25% a year. The balance of the Mortgage Loan on
July 1, 2028, together with any accrued interest, shall be due in one lump sum on that date.
Costs incurred in connection with the acquisition of the Mortgage Loan totaled $212,076 and arebeing amortized over the term of the Mortgage Loan using the interest method.

26

Greek Orthodox Archdiocese of America
Notes to Financial Statements

The LOC loans and the Mortgage Loan are collateralized primarily by the properties of theArchdiocese located on 79th Street, New York, New York, including improvements thereon and otherchattels as defined in the mortgage and security agreement dated June 28, 2018.
The carrying balances of the Mortgage Loan and related unamortized financing costs are as follows:
December 31, 2019
Loan Principal
Balance, January 1, 2019
Principal payments
Amortization of financing costs

Financing Costs

Net$

5,427,615 $(180,591)-(202,816) $58,7045,224,799(180,591)
58,704$

5,247,024 $(144,112) $5,102,912

December 31, 2018
Loan Principal
Original amountPrincipal payments
Amortization of financing costs

Financing Costs

Net$

5,500,000 $(72,385)-(212,076) $9,260

5,287,924(72,385)9,260$

5,427,615 $(202,816) $5,224,799

The annual debt service on the Mortgage Loan for the next five years and thereafter are as follows:
Based on the maturity date of July 1, 2023:
Principal

Interest$

187,891 $
196,785
205,434
4,656,914

223,027 $
214,133
205,484
115,227

410,918
410,918
410,918
4,772,141$

5,247,024 $

757,871 $6,004,895

Year ending December 31,
2020
2021
2022
2023

Total

Based on the optional extended maturity date of July 1, 2029, at an interest rate of 4.25% a year:
Principal

Interest$

187,891 $
196,785
205,434
214,464
223,352
4,219,098

223,027 $
214,133
205,484
196,454
187,566
586,406

410,918
410,918
410,918
410,918
410,918
4,805,504$

5,247,024 $

1,613,070 $6,860,094

Year ending December 31,
2020
2021
2022
2023
2024
Thereafter

27

Total

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Interest expense on the LOC and mortgage loans, including amortization of financing costs, during
2019 and 2018 totaled $309,889 and $183,180, respectively, which are included in general andadministrative expenses in the accompanying statements of activities.
Accrued interest at December 31, 2019 and 2018 totaled $19,203 and $28,907, respectively, whichis included in accounts payable and accrued expenses in the accompanying statements of financial
position.

9. Employee Benefit Plans
Pension Plans
The Archdiocese participates in a defined benefit pension plan (Pension Plan) covering substantially
all full-time lay employees and clergy. Retirement benefits are based on years of service and theemployees’ compensation during those years of service. Pension Plan assets are held by third-party
investment managers and are invested in various marketable debt, equity and money market
accounts. Minimum funding requirements are determined by an independent actuary. Participants
may elect to make contributions in an amount equal to 3.5%, 5.0% or, effective January 1, 2018,
6.5% of earnings in accordance with the rules established by the Archdiocese Benefits Committee.
The Pension Plan is considered a church plan and is, therefore, exempt from the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA), as amended. As of December 31, 2018,the latest date for which an actuarial valuation for funding purposes is available, the fair value ofthe Pension Plan’s assets approximated $56,685,000 and the actuarial present value of its
accumulated plan benefits approximated $111,276,000. Due to the nature of the Pension Plan, as amulti-employer plan covering the clergy and lay employees of the Archdiocese, parishes and theinstitutions of the Archdiocese, it is not practicable to determine the extent to which the assets of
the Plan cover the actuarially computed value of accumulated plan benefits vested benefits for theArchdiocese, on a standalone basis. Because the Pension Plan is considered a multi-employer plan,
it is only subject to certain minimum reporting requirements. For further information, refer to theaudited financial statements of the Pension Plan for the year ended December 31, 2017, the latest
date for which audited financial information is available.
Pension expense allocated to the Archdiocese for the years ended December 31, 2019 and 2018
amounted to approximately $618,400 and $711,100, respectively, and is allocated among programs
and general and administrative expenses in the accompanying statements of activities. During 2019,
the Archdiocese contributed to the Pension Plan an additional amount of $1,000,000, which isincluded in general and administrative expenses in the accompanying statements of activities. There
were no amounts due to the Pension Plan as of December 31, 2019 and 2018.
The Archdiocese also sponsors a noncontributory 403(b) defined contribution plan for all employees.
For the years ended December 31, 2019 and 2018, there were no employer contributions to the403(b) defined contribution plan.
Other Retirement Benefits
The Archdiocese also provides supplemental retirement benefits to certain hierarchs outside of theplan described above. A liability is calculated only for the hierarchs who have made known thatthey will avail themselves of retirement benefits. As of December 31, 2019 and 2018, theArchdiocese has recorded liabilities of $2,407,169 and $2,136,215, respectively, which are28

Greek Orthodox Archdiocese of America
Notes to Financial Statements

presented as other postretirement benefits obligations in the accompanying statements of financial
position. Of these amounts, $548,761 represents the provision for 2019 and $984,200 represents theprovision for 2018, which are included in general and administrative expense in the accompanying
statements of activities and schedules of functional expenses in Note 3. The provision for 2018
included an initial accrual for supplemental retirement benefits for hierarchs who retired in 2019.
Such accrual was updated in 2019 based on the terms of the retirement agreements finalized during
the year.

10. Net Assets with Donor Restrictions
Restricted net assets with donor restrictions consisted of the following:
2019

December 31,
With purpose restrictions:
Taylor Scholarship Fund
Katina Malta Scholarship Fund
Gioles Scholarship FundJames J. Tembelis Scholarship
St. John Chrysostom Fund
Paleologos Scholarship Fund
Trakatellis Fellowship Fund
Irene Ladas Scholarship for Seminaries
Clergy Initiative Project
Other scholarships and educational programs
Disaster and emergency relief assistance
Orthodoxy in the World
Community services
Various other programs

2018

2,408,905 $
1,499,766
219,707
708,524
87,702
848,883
351,004
21,9001,236,268
1,149,403
662,466
674,998
1,826,454
186,332

1,608,871
1,140,223
158,289
493,449
52,484
696,540
141,880
66,250740,735
1,234,522
656,101
571,376
1,472,421
159,020

With Donor Restrictions—Purpose Restricted (Temporary)

11,882,312

9,192,161

Original donor-restricted endowment gift amounts andamounts required to be retained by donors in perpetuity:
Taylor Scholarship FundJames J. Tembelis Scholarship Fund*
Beneficial interest in George Marinos perpetual trust
Beneficial interest in Demetrios Anagnos charitable trust
Gioles Scholarship Fund*
Trakatellis Fellowship Fund*
Katina Malta Scholarship Fund*
Vlisidis Scholarship Fund
Paleologos Scholarship Fund*
Other scholarships and educational programs

1,000,000
519,939
379,353
239,478
258,991
203,600
113,879
39,402
2,024
112,289

1,000,000
517,808
330,502210,124
257,855
111,119
39,011
112,289

With Donor Restrictions—in Perpetuity (Permanent)

2,868,955

2,578,708

14,751,267 $

11,770,869$

Total with Donor Restrictions$* Pursuant to the donor gift instrument, 90% of net income from the fund is to be distributed forindividual scholarships and the remaining 10% of the annual net income shall become permanently
restricted and added to the corpus of the scholarship fund.
29

Greek Orthodox Archdiocese of America
Notes to Financial Statements

11. Net Assets Released from Restrictions
Net assets with donor restrictions were released from restrictions by either incurring expenses orsatisfying the restricted purpose, as follows:2019

December 31,
Taylor Scholarship Fund
Katina Malta Scholarship Fund
Gioles Scholarship FundJames J. Tembelis Scholarship Fund
St. John Chrysostom Fund
Paleologos Scholarship Fund
Trakatellis Fellowship Fund
Irene Ladas Scholarship for Seminaries
Other scholarships and educational programs
Orthodoxy in the World
Community services
Clergy Initiative Project
Clergy-Laity Congress
Disaster relief
Ionian Village renovations
Enthronement
Other programs

2018

$

116,121 $47,00015,00010,50035,0005,000
44,350737,815
690,939
334,451
504,465
1,359
126,000
540,639
79,002

154,200
46,75018,50014,75017,03030,00018,6005,500
1,022,035
554,097
81,866
263,976
419,250
333,903
25,000211,071$

3,287,641 $

3,216,528

12. Endowment
The Archdiocese endowment funds consist of a board-designated fund and donor-restricted funds.
Board-Designated Fund (the Cathedral Fund)
The Cathedral Fund was designated to be used, upon approval, for the benefit of the Greek Orthodox
Archdiocesan Cathedral of the Holy Trinity and Cathedral related projects. The following tablesummarizes the activity in the Cathedral Fund:
2019
Balance, beginning of year
Investment return:Appropriations
Interest and dividends, net
Net depreciation in fair value of investments$

Balance, end of year$

1,240,791 $(238,416)
38,974(14,559)
1,026,790 $2018
1,225,030
23,446(7,685)1,240,791

In 2019, the Archdiocese approved appropriations totaling $238,416 from the Cathedral Fund.

30

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Donor-Restricted Endowment Funds
The Archdiocese’s donor-restricted (gifted) endowment consists of five individuals’ funds
established for a variety of purposes, principally in support of the Archdiocese’s mission. It excludes
beneficial interests in split-interest trusts held by others, which are required to be held by thirdparty trustees. Net assets associated with endowment funds are classified and reported based on
the existence or absence of donor-imposed restrictions.
On September 17, 2010, New York state passed the New York State Prudent Management ofInstitutional Funds Act (NYPMIFA), its version of the Uniform Prudent Management of Institutional
Funds Act (UPMIFA). All not-for-profit organizations formed in New York must apply this law. The
Archdiocese classifies donor-restricted endowment funds as net assets with donor restrictions,
unless otherwise stipulated by the donor: (a) the original value of gifts donated to the permanentendowment, (b) the original value of subsequent gifts to the permanent endowment and (c) income
accumulations to the permanent endowment made in accordance with the direction of theapplicable donor gift.
The remaining portion of the donor-restricted endowment fund not classified as held in perpetuity
is classified as net assets with purpose and or time-restriction, until such amounts are appropriatedfor expenditure by the Archdiocese in a manner consistent with the uses, benefits, purposes andduration for which the endowment is established and the standard of prudence prescribed by
NYPMIFA.
In accordance with NYPMIFA, the Archdiocese considers the following factors in making adetermination to appropriate or accumulate donor-restricted endowment funds: the purpose,
duration, and preservation of the endowment fund; expected total return of investments; general
economic conditions; the possible effects of inflation and deflation; other resources of theArchdiocese; and the investment policy of the Archdiocese.
The Archdiocese has adopted investment and spending policies for endowment assets that support
the objective of providing a sustainable and increasing level of endowment income distribution to
support the Archdiocese’s activities while seeking to maintain the purchasing power of theendowment assets. The Archdiocese’s primary investment objective is to maximize total return
within reasonable and prudent levels of risk while maintaining sufficient liquidity to meet
disbursement needs and ensure preservation of capital.
To satisfy its long-term rate-of-return objectives, the Archdiocese relies on a total return strategy,
the objective of which is to achieve a return consisting of a combination of current income andcapital appreciation, without regard to an emphasis on either, recognizing that changes in market
conditions and interest rates will result in varying strategies in an attempt to optimize results. The
endowment portfolio is diversified among various net asset classes and strategies to help reduce
risk.

31

Greek Orthodox Archdiocese of America
Notes to Financial Statements

The following represents a detail of the donor-restricted endowment net asset composition,
excluding third-party split-interest trusts:
December 31, 2019
With
PurposeRestrictions

To Be
Held in
Perpetuity

Total

Composition of Endowment Net Assets by Type of Fund
Donor-restricted endowment funds$ 3,877,009 $ 2,044,500 $ 5,921,509
Change in Endowment Net Assets
Endowment Net Assets, beginning of year
Contributions received
Transferred from temporarily restricted net assets
Investment return:Interest and dividends, net
Net appreciation (depreciation)
Appropriation of endowment assets for expenditure$ 2,621,858 $ 2,038,083 $ 4,659,941
1,279
1,279
200,000
200,000

Endowment Net Assets, end of year

$ 3,877,009 $ 2,250,124 $ 6,127,133

58,554
1,326,439(131,121)

12,666(625)-

71,2201,325,814(131,121)

December 31, 2018
With
PurposeRestrictions

To Be
Held in
Perpetuity

Total

Composition of Endowment Net Assets by Type of Fund
Donor-restricted endowment funds$ 2,621,858 $ 2,038,083 $ 4,659,941
Change in Endowment Net Assets
Endowment Net Assets, beginning of year
Investment return:Interest and dividends, net
Net (depreciation) appreciation
Appropriation of endowment assets for expenditure$ 2,828,427 $ 2,022,237 $ 4,850,664

Endowment Net Assets, end of year

$ 2,621,858 $ 2,038,083 $ 4,659,941

32

49,363(92,019)(163,913)

6,441
9,405
-

55,804(82,614)(163,913)

Greek Orthodox Archdiocese of America
Notes to Financial Statements

13. Related-Party Transactions
Due from (to) Related Entities
Amounts due from (to) related entities were comprised of the following:
2019

December 31,
Due from St. Nicholas Greek Orthodox Church andNational Shrine (a)Due from other related entities (b)Due to another related entity (b)$2,963,896 $
83,042(38,056)2018
2,848,750
117,696(55,263)(a) Through December 31, 2019, the Archdiocese advanced $2,963,896 to St. Nicholas Greek
Orthodox Church and National Shrine for construction costs (the Construction Advances). Undera governance and operating agreement dated December 19, 2019, the Archdiocese and the
Friends of St. Nicholas, Inc. agreed to cooperate in good faith to establish, no sooner than one
year and no later than 18 months from the date of the agreement, a mutually agreeable planand timetable for the repayment of the Construction Advances. Such repayment plan andtimetable shall consider the level of success experienced by the Friends of St. Nicholas, Inc.
during the one-year period following the date of the agreement in satisfying the funding needsof the construction project.
(b) The Archdiocese regularly advances the salaries and benefits of certain employees of certain
related entities and is reimbursed for such amounts in the following year. Receivables for such
advances totaled $83,042 and $117,696 at December 31, 2019 and 2018, respectively. One entity
had prepaid its salary and benefits reimbursements, which amounted to $38,056 and $55,263 at
December 31, 2019 and 2018, respectively.
Grants to Related Entities
The Archdiocese provided grants of $1,800,000 and $1,000,000 in 2019 and 2018, respectively, tosupport the operations of Hellenic College. Such amounts are included as part of education expensein the accompanying statements of activities. In 2019, the Archdiocesan Council of the Archdiocese
passed a resolution to provide a commitment of up to $3.5 million in financial support to HellenicCollege for up to five years beginning with the fiscal year ending June 30, 2021. The financial support
is intended to provide assistance in covering operating deficits of Hellenic College and reducing
Hellenic College’s debt, including endowment fund borrowings.
The Archdiocese provided grants of $1,259,000 and $1,000,000 in 2019 and 2018, respectively, tosupport the operations of the Ecumenical Patriarchate. Such amounts are included as part of
Orthodoxy in the World expense in the accompanying statements of activities.
Contributions from Related Entities
During 2019, the Archdiocese received $789,100 and $111,000 of grants from Leadership 100 and
FAITH, respectively. During 2018, the Archdiocese received $1,219,463 and $112,200 of grants from
Leadership 100 and FAITH, respectively. Such grants were recorded as increases to net assets withdonor restrictions to benefit specific programs of the Archdiocese as stipulated by the governing
boards of the respective affiliates.
33

Greek Orthodox Archdiocese of America
Notes to Financial Statements

Additionally, certain contributions received by the Archdiocese are from members of management
and the Archdiocesan Council.

14. Contingencies
The Archdiocese, in the normal course of its operations, is a party to various legal proceedings andcomplaints, some of which are covered by insurance. While it is not feasible to predict the ultimate
outcomes of such matters, management of the Archdiocese is not aware of any claims orcontingencies, which are not covered by insurance, that would have a material adverse effect on
the Archdiocese’s financial position, changes in net assets or cash flows.

15. Subsequent Events
The Archdiocese has performed subsequent events procedures through June 19, 2020, which is thedate the financial statements were available to be issued. There were no subsequent events
requiring adjustment to, or disclosures to, the financial statements, except:
In March 2020, the World Health Organization declared the outbreak of novel coronavirus disease(COVID-19) as a pandemic. The Archdiocese has adjusted many aspects of its operations andactivities to protect its parishioners, employees, vendors and the public in general, as well as comply
with applicable governmental regulations of the localities wherein its parishes and offices are
situated. It continues to monitor the situation closely and it is possible that it will implement further
measures. In light of the uncertainty as to the severity and duration of the pandemic, the impact
on the Archdiocese’s financial position and changes in its net assets and cash flows is uncertain at
this time.
On April 16, 2020, the Archdiocese obtained a loan with a principal amount of $2,487,323 from the
Small Business Administration pursuant to the provisions of the Paycheck Protection Program under
the Coronavirus Aid, Relief and Economic Security Act (the CARES Act). The loan bears interest at
1% a year and is payable in 24 monthly installments, inclusive of interest, commencing
November 16, 2020. All or a portion of the loan may be forgiven under the loan forgivenessprovisions of the CARES Act.

34