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. 

National Park Foundation

Financial Statements

For the Years Ended September 30, 2020 and 2019 
National Park Foundation

Financial Statements

For the Years Ended September 30, 2020 and 2019
National Park Foundation

Contents

Independent Auditor’s Report 2 - 3

Financial Statements

Statements of Financial Position 4

Statements of Activities 5 - 6

Statements of Functional Expenses 7 - 8

Statements of Cash Flows 9

Notes to Financial Statements 10 - 36

Management Prepared Document

Appendix A – Management’s Discussion and Analysis A-1 – A-4
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 

of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

2

Independent Auditor’s Report 

To the Board of Directors

National Park Foundation

Washington, D.C.

We have audited the accompanying financial statements of National Park Foundation (the 

Foundation), which comprise the statements of financial position as of September 30, 2020 and 

2019, and the related statements of activities, functional expenses, 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 statements 

in accordance with accounting principles generally accepted in the United States of America; this 

includes 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 United 

States of America. Those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures 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 not 

for 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 of 

accounting policies used and the reasonableness of significant accounting estimates made by 

management, 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 a 

basis for our audit opinion.

12505 Park Potomac Avenue 

Suite 700 

Potomac, MD 20854 

Tel: 301-354-2500 

Fax: 301-354-2501 

www.bdo.com 
3

Emphasis-of-Matter

As discussed in Note 2 to the financial statements, National Park Foundation changed its method 

for revenue recognition as a results of the adoption of the amendments to the Financial

Accounting Standards Board Accounting Standards Codification resulting from Accounting 

Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, and ASU 2018-08, NotFor-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for 

Contributions Received and Contributions Made effective October 1, 2019. Our opinion is not

modified with respect to these matters. 

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of National Park Foundation as of September 30, 2020 and 2019, and the 

changes in its net assets and its cash flows for the years then ended in accordance with accounting 

principles generally accepted in the United States of America.

March 2, 2021 
Financial Statements
September 30, 2020 2019

Assets

Cash and cash equivalents $ 8,534,240 $ 12,103,773

Pledges receivable, net 58,368,445 53,941,456

Investments 215,974,720 184,986,561

Prepaid and other assets 1,134,985 1,499,089

Furniture and equipment, net 4,260,478 501,637

Conservation property 493,475 442,775

Total assets $ 288,766,343 $ 253,475,291

Liabilities and net assets

Liabilities

Accounts payable and accrued expenses $ 5,622,578 $ 4,387,796

Refundable advances 5,366,848 -

Grants payable, net 1,831,237 1,746,922

Note payable (Payroll Protection Program) 1,791,500 -

Note payable, net - 182,444

Other noncurrent liabilities 2,555,377 146,238

Funds managed as agent for other entities 13,062 40,729,213

Total liabilities 17,180,602 47,192,613

Commitments and contingencies

Net assets

Without donor restrictions

Undesignated 29,842,356 24,797,312

Designated 27,450,035 24,694,084

Total without donor restrictions 57,292,391 49,491,396

With donor restrictions 214,293,350 156,791,282

Total net assets 271,585,741 206,282,678

Total liabilities and net assets $ 288,766,343 $ 253,475,291

National Park Foundation

Statements of Financial Position

See accompanying notes to financial statements.

4
Without Donor With Donor

Year ended September 30, 2020 Restrictions Restrictions Total

Revenue and support

Contributions and endowment gifts $ 33,105,379 $ 30,074,849 $ 63,180,228

Contributed property, goods, services

and media 3,868,977 29,751,786 33,620,763

Government grants and support - 10,287,943 10,287,943

Management and other income 246,142 2,644,375 2,890,517

Net assets released from 

restrictions - satisfaction of

program and time restrictions 69,002,311 (69,002,311) -

Total revenue and support 106,222,809 3,756,642 109,979,451

Expenses

Program services:

Program grants 34,062,523 - 34,062,523

Program support 39,492,290 - 39,492,290

Total program services 73,554,813 - 73,554,813

Supporting services:

General and administrative 12,697,962 - 12,697,962

Fundraising 16,522,671 - 16,522,671

Total supporting services 29,220,633 - 29,220,633

Total expenses 102,775,446 - 102,775,446

Change in net assets from operations 3,447,363 3,756,642 7,204,005

Non-operating activities

Investment return, net 4,171,772 13,028,555 17,200,327

Other non-operating gains 181,860 - 181,860

Total non-operating activities 4,353,632 13,028,555 17,382,187

Change in net assets 7,800,995 16,785,197 24,586,192

Net assets, beginning of year 49,491,396 156,791,282 206,282,678

Cumulative effect of a change in accounting

principle related to revenue recognition - 40,716,871 40,716,871

Net assets, end of year $ 57,292,391 $ 214,293,350 $ 271,585,741

National Park Foundation

Statement of Activities

See accompanying notes to financial statements.

5
Without Donor With Donor

Year ended September 30, 2019 Restrictions Restrictions Total

Revenue and support

Contributions and endowment gifts $ 29,011,120 $ 25,437,207 $ 54,448,327

Contributed property, goods, services

and media 8,079,120 4,539,867 12,618,987

Government grants and support - 10,064,169 10,064,169

Management and other income 492,562 507,382 999,944

Net assets released from 

restrictions - satisfaction of

program and time restrictions 40,585,276 (40,585,276) -

Total revenue and support 78,168,078 (36,651) 78,131,427

Expenses

Program services:

Program grants 25,619,370 - 25,619,370

Program grants (land) 537,000 - 537,000

Program support 15,900,024 - 15,900,024

Total program services 42,056,394 - 42,056,394

Supporting services:

General and administrative 16,613,835 - 16,613,835

Fundraising 15,687,309 - 15,687,309

Total supporting services 32,301,144 - 32,301,144

Total expenses 74,357,538 - 74,357,538

Change in net assets from operations 3,810,540 (36,651) 3,773,889

Non-operating activity

Investment return, net 1,602,275 3,220,961 4,823,236

Change in net assets 5,412,815 3,184,310 8,597,125

Net assets, beginning of year 44,078,581 153,606,972 197,685,553

Net assets, end of year $ 49,491,396 $ 156,791,282 $ 206,282,678

National Park Foundation

Statement of Activities

See accompanying notes to financial statements.

6
Total General Total

Program Program Program and Supporting

Year ended September 30, 2020 Grants Support Services Administrative Fundraising Services Total Expenses

Program grants $ 34,062,523 $ - $ 34,062,523 $ - $ - $ - $ 34,062,523

In-kind - 29,751,786 29,751,786 3,868,977 - 3,868,977 33,620,763

Salaries and related benefits - 3,496,297 3,496,297 4,226,143 5,398,823 9,624,966 13,121,263

Professional services - 4,665,420 4,665,420 1,835,295 2,167,464 4,002,759 8,668,179

Direct response - - - - 7,982,258 7,982,258 7,982,258

Facilities, rent, and insurance - 33,495 33,495 1,442,553 1,250 1,443,803 1,477,298

Meetings and events - 1,232,657 1,232,657 151,765 77,634 229,399 1,462,056

Communications - 5,499 5,499 486,241 80,010 566,251 571,750

Depreciation and amortization - 151,781 151,781 286,833 - 286,833 438,614

Supplies, phone and postage - 27,695 27,695 98,982 287,860 386,842 414,537

Bank charges and other - 1,849 1,849 80,175 308,689 388,864 390,713

Staff travel - 107,984 107,984 63,475 113,863 177,338 285,322

Staff development and subscription - 17,827 17,827 157,523 104,820 262,343 280,170

$ 34,062,523 $ 39,492,290 $ 73,554,813 $ 12,697,962 $ 16,522,671 $ 29,220,633 $ 102,775,446

National Park Foundation

Statement of Functional Expenses

See accompanying notes to financial statements.

Program Services Supporting Services

7
Program Total General Total

Program Grants Program Program and Supporting

Year ended September 30, 2019 Grants (land) Support Services Administrative Fundraising Services Total Expenses

Program grants $ 25,619,370 $ 260,000 $ - $ 25,879,370 $ - $ - $ - $ 25,879,370

In-kind - 277,000 4,262,867 4,539,867 8,079,120 - 8,079,120 12,618,987

Salaries and related benefits - - 2,733,351 2,733,351 4,459,438 4,234,682 8,694,120 11,427,471

Professional services - - 6,406,168 6,406,168 1,735,554 2,105,686 3,841,240 10,247,408

Direct response - - - - - 8,398,008 8,398,008 8,398,008

Facilities, rent, and insurance - - 52,883 52,883 1,088,141 - 1,088,141 1,141,024

Meetings and events - - 1,592,181 1,592,181 329,223 90,578 419,801 2,011,982

Communications - - 339,538 339,538 339,144 37,192 376,336 715,874

Depreciation and amortization - - 229,148 229,148 134,794 - 134,794 363,942

Supplies, phone and postage - - 33,931 33,931 72,637 307,653 380,290 414,221

Bank charges and other - - 24,214 24,214 83,979 244,666 328,645 352,859

Staff travel - - 193,866 193,866 158,183 211,261 369,444 563,310

Staff development and subscription - - 31,877 31,877 133,622 57,583 191,205 223,082

$ 25,619,370 $ 537,000 $ 15,900,024 $ 42,056,394 $ 16,613,835 $ 15,687,309 $ 32,301,144 $ 74,357,538

See accompanying notes to financial statements.

National Park Foundation

Statement of Functional Expenses

Program Services Supporting Services

8
Years ended September 30, 2020 2019

Cash flows from operating activities:

Change in net assets $ 24,586,192 $ 8,597,125

Adjustments to reconcile change in net assets to net cash 

provided by operating activities:

Endowment contributions (10,000,000) (10,000,000)

Net realized and unrealized (gains) losses on investments (12,452,096) 81,004

Depreciation and amortization 438,614 363,942

Receipts of conservation property (50,700) -

Distribution of conservation property - 260,000

Loss on disposal of property and equipment 11,513 -

Present value change of pledges receivable (380,404) (132,786)

Bad debt expense (recovery) 109,157 (37,018)

Amortization of note payable discount 6,291 36,099

(Increase) decrease in assets

Pledges receivable, net (4,155,742) 3,431,456

Prepaid and other assets 364,104 7,453,353

Increase (decrease) in liabilities

Accounts payable and accrued expenses 1,234,782 (243,872)

Refundable advances 5,366,848 (1,089,156)

Grants payable, net 84,315 304,015

Other noncurrent liabilities 2,409,139 -

Funds managed as agent for other entities 720 104,201

Net cash provided by operating activities 7,572,733 9,128,363

Cash flows from investing activities:

Purchases of furniture and equipment (4,208,968) (293,613)

Purchases of investments (33,713,306) (63,306,893)

Proceeds from sale of investments 15,177,243 46,123,766

Net cash used in investing activities (22,745,031) (17,476,740)

Cash flows from financing activities:

Endowment contributions 10,000,000 10,000,000

Proceeds from Payroll Protection Program 1,791,500 -

Principal payments on notes payable (188,735) (995,678)

Net cash provided by financing activities 11,602,765 9,004,322

Net (decrease) increase in cash and cash equivalents (3,569,533) 655,945

Cash and cash equivalents, beginning of the year 12,103,773 11,447,828

Cash and cash equivalents, end of the year $ 8,534,240 $ 12,103,773

Supplemental disclosures of cash flow information:

Interest paid $ 5,172 $ 3,662

National Park Foundation

Statements of Cash Flows

See accompanying notes to financial statements.

9
National Park Foundation

Notes to Financial Statements

10

1. Purpose and Organization

Purpose

As the official national nonprofit partner of the National Park Service (NPS), the National Park 

Foundation (NPF or the Foundation) seeks to generate private support and build strategic 

partnerships to protect and enhance America’s national parks for present and future generations. 

NPF strives to ensure that America’s national parks reach their fullest potential and touch as many 

lives as possible. This translates into protecting natural landscapes, wilderness, historical sites and 

places of cultural significance, connecting people to the national parks and connecting partners to 

the national parks. NPF does this in full partnership with NPS. 

The guiding principles of the Foundation are:

• Stewardship: The Foundation fosters a culture of community and stewardship over the national 

parks.

• Strategic Partnership with NPS: The Foundation works closely with NPS to identify, fund, and 

advance priority initiatives.

• Impact: The Foundation invests in critical projects that provide long-lasting, measurable 

benefits to national parks.

• Philanthropy: The Foundation excites philanthropic support and stewards that support to have 

a direct and meaningful impact on national parks.

• Common Ground: The Foundation provides common ground where all who love the national 

parks can contribute to a shared vision in support of them. 

• Partnership: The Foundation convenes and enhances strategic partnerships to achieve broader 

impacts within the national parks.

• Innovation: The Foundation employs an entrepreneurial approach to address the complex 

challenges facing the national parks.

• Education: The Foundation helps to educate the public on the value of national parks and why 

they must be protected and preserved for current and future generations. 

• Diversity: NPF is committed to fostering, cultivating and preserving a culture of diversity, equity 

and inclusion among the staff, Board of Directors and partners.

• Future Orientation: The Foundation provides thought leadership, helps NPS to anticipate future 

challenges and creates long-term solutions.

Organization 

The Foundation, a not-for-profit, charitable corporation located in Washington, D.C., was 

established in 1967 by an Act of the U.S. Congress (Public Law 90-209) to help support NPS. Effective 

December 16, 2016, Public Law 90-209 was amended by enactment of Public Law 114-289. Public 

Law 114-289 provides that the Foundation shall consist of a Board of Directors having as members 

no fewer than six private citizens of the United States appointed by the Secretary of the Interior. 

The Secretary and the Director of NPS shall be non-voting, ex officio members of the Board. The 

Chairman of the Board of Directors shall be elected by the Board of Directors from its members for 

a 2-year term. Activities of the Foundation to solicit, accept, administer, and use any gifts, devises, 

or bequests for the benefit of, or in connection with NPS shall be undertaken after consultation with 

the Director of NPS to ensure that these activities are consistent with NPS programs and policies.
National Park Foundation

Notes to Financial Statements

11

2. Significant Accounting Policies

Basis of Accounting

The accompanying financial statements are prepared in accordance with accounting principles 

generally accepted in the United States of America (U.S. GAAP) and are presented in accordance 

with the accrual basis of accounting, whereby, revenue and support is recognized when earned and

expenses are recognized when incurred. 

Basis of Presentation

The financial statements are presented in accordance with Financial Accounting Standards Board 

(FASB) Accounting Standards Codification (ASC) 958-205 Presentation of Financial Statements of 

Not-for-Profit Entities, whereby the Foundation is required to report information regarding its 

financial position and activities according to two classes of net assets: net assets without donor 

restrictions and net assets with donor restrictions. 

As of September 30, 2020 and 2019, and for the years then ended, the Foundation has recorded 

activities in the following net asset classes:

Net assets without donor restrictions: Net assets that are not subject to donor-imposed 

restrictions and may be expended for any purpose in performing the primary objectives of 

the Foundation. Net assets without donor restrictions are composed of the following:

Undesignated: Represents resources available to support operations.

Board designated: The Board of Directors designated certain net assets without 

donor restrictions to support programmatic or other strategic needs of the 

Foundation in the future. 

NPF designated: The category is composed of net assets without donor restrictions

the Foundation has designated to be used toward signature projects consistent with 

its strategic mission. 

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and 

grantors. Some donor restrictions are temporary in nature; those restrictions will be met by 

actions of the Foundation or by the passage of time. Other donor restrictions are perpetual 

in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donorimposed restrictions are released when a restriction expires, that is, when the stipulated 

time has elapsed, when the stipulated purpose for which the resources were restricted has 

been fulfilled, or both.
National Park Foundation

Notes to Financial Statements

12

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make 

estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure 

of contingent assets and liabilities at the date of the financial statements, and the reported amounts 

of revenues and expenses during the reporting period. On an ongoing basis, the Foundation evaluates 

the estimates and assumptions based upon historical experience and various other factors and 

circumstances. The Foundation believes that the estimates and assumptions are reasonable in the 

circumstances; however, the actual results could differ from those estimates under different future 

conditions.

Cash and Cash Equivalents

Cash includes interest and non-interest-bearing operating accounts with insured financial 

institutions. Deposits often exceed federally insured limits. Amounts on deposit in excess of 

federally insured limits approximate $7.5 million and $12.1 million at September 30, 2020 and 2019, 

respectively. Management, however, does not consider this a significant concentration of credit 

risk. Cash equivalents include money market accounts. Cash and cash equivalents exclude such 

amounts included within investments as those funds are part of the investment strategy and 

portfolio.

Pledges Receivable

Pledges are recognized as support in the period acknowledged by the donor. Pledges are initially 

recorded at fair value less an estimate made for doubtful pledges based on a review of all 

outstanding pledges on a quarterly basis. Pledges to be received after one year are discounted to 

present value at a discount rate commensurate with the risks involved. The Foundation uses discount 

rates that approximate U.S. Treasury borrowing rates at the end of the fiscal year in which the 

promise to give was received based on the respective duration of the donor’s payment plan. 

Amortization of the discount is recorded as contribution and endowment gifts revenue in the 

statements of activities.

The Foundation records an allowance for uncollectible pledges receivable based on a determination 

of the likelihood of collection for each pledge receivable balance considering the age of the 

receivable and other factors that would impact collection. Uncollectible amounts are written off 

when all efforts to collect these receivables have been exhausted.

Investments

Investments are measured and reported at fair value in accordance with FASB ASC No. 820 Fair 

Value Measurement (ASC 820). Dividends and interest are reflected as income when earned. 

Investments in money market funds, mutual funds, and exchange-traded funds are measured and 

reported at fair value based on quoted market prices provided by the investment managers, with 

related gains and losses included in the statements of activities. 

Investments are exposed to risks, such as interest rate, market volatility and credit risks. Due to 

the level of risk associated with certain investments, it is at least reasonably possible that changes 

in the values of investments will occur in the near term and such changes could materially affect 

the fair value of investments reported in the accompanying statements of financial position. 
National Park Foundation

Notes to Financial Statements

13

Furniture and Equipment

The Foundation capitalizes all property and equipment purchased with non-Federal funds with a 

cost of $5,000 or more. Furniture and equipment is recorded at cost and depreciated on the straightline basis over estimated useful lives of 3-8 years. The Foundation’s produced content for creative 

and video production for campaign is capitalized and depreciated on a straight-line basis over the 

estimated useful live of 3 years.

Leasehold improvements are recorded at cost and are amortized over their estimated useful lives 

or terms of the lease, whichever is shorter.

Maintenance and repair costs are expensed as incurred. Replacements and betterments are 

capitalized. At the time properties are retired or otherwise disposed of, the property and related 

accumulated depreciation or amortization accounts are relieved of the applicable amounts and any 

gain or loss is credited or charged to income.

Conservation Property

The Foundation acquires conservation property through donations or purchases for subsequent sale 

or donation to or for the benefit of NPS. Real property donated is valued at its estimated fair market 

value at the time of donation. The carrying value is reduced if the estimated market value decreases 

below the original recorded value.

Covenants on the properties restrict their future use to conservation activities. 

Impairment of Long-Lived Assets

The Foundation accounts for the valuation of long-lived assets in accordance with FASB ASC 360, 

Accounting for the Impairment or Disposal of Long-Lived Assets, which requires that long-lived

assets and certain identifiable intangible assets be reviewed for impairment whenever events or 

changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the

asset to future undiscounted net cash flows expected to be generated by the asset. If such assets

are considered to be impaired, the impairment to be recognized is measured by the amount by

which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to

be disposed of are reportable at the lower of the carrying amount or fair value, less costs to sell. 

The Foundation reviews asset carrying amounts whenever events or circumstances indicate that 

such carrying amounts may not be recoverable. When considered impaired, the carrying amount of 

the asset is reduced, by a charge to the statements of activities, to its current fair value. No 

indicators of impairment were identified for the years ended September 30, 2020 and 2019.
National Park Foundation

Notes to Financial Statements

14

Grants Payable

The Foundation is both a recipient and provider of grants to further its mission. As a grantor, the 

Foundation recognizes program grants expense when the Board of Directors has awarded a grant 

and the grant becomes an enforceable liability (i.e., when substantially all conditions placed on the 

grantee are met). Grants payable represent grants awarded but not yet disbursed. See recently 

adopted accounting pronouncement section for further information regarding the adoption of FASB 

Accounting Standards Update (ASU) 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the 

Scope and the Accounting Guidance for Contributions Received and Contributions Made, effective 

October 1, 2019. 

Income Taxes

The Foundation is exempt from federal income taxes under Public Law 90-209, as described in 

Section 501(c)(1)(a)(i) of the Internal Revenue Code (IRC). In addition, in 1981, the Foundation 

received a determination that it is exempt from federal income taxes under Section 501(c)(3) of the 

IRC and it qualifies as a public charity under Section 509(a)(1) of the IRC. The Foundation received 

a determination letter in 2000 that specifically states it is exempt from filing the Return of 

Organizations Exempt from Income Tax, Form 990, unless the Foundation has unrelated business 

income. Effective fiscal year 2012, the Board of Directors elected to file Form 990 on an annual 

basis. Contributions are tax deductible to donors under section 170 of the Code.

Under FASB ASC No. 740-10, Income Taxes, the Foundation must recognize the tax benefit associated 

with tax positions taken for tax return purposes when it is more-likely-than-not that the position 

will be sustained. The Foundation does not believe there are any material uncertain tax positions 

and; accordingly, will not recognize any liability for unrecognized tax benefits. The Foundation 

believes that it is no longer subject to U.S. federal, state and local, or non-U.S. income tax 

examinations by tax authorities for fiscal years before 2017. For the years ended September 30, 

2020 and 2019, respectively, there were no interest or penalties related to uncertain tax positions 

recorded or included in the accompanying statements of activities.

Fair Value of Financial Instruments

Fair value measurements reflected in the accompanying financial statements represent the price 

that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants on the measurement date. U.S. GAAP provides a hierarchy that 

prioritizes the inputs to fair value measurements based on the extent to which inputs to valuation 

techniques are observable in the marketplace. The hierarchy assigns a higher priority to observable 

inputs that reflect verifiable information obtained from independent sources, and a lower priority 

to unobservable inputs that would reflect the Foundation’s assumptions about how market 

participants would value an asset or liability based on the best information available. Financial 

instruments include cash and cash equivalents, pledges receivable, investments and accounts and 

grants payable. Fair value measurements must maximize the use of observable inputs and minimize 

the use of unobservable inputs. 

The three levels of the hierarchy of inputs used to measure fair value are described briefly as 

follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that 

are available at the measurement date.
National Park Foundation

Notes to Financial Statements

15

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the 

asset or liability, either directly or indirectly, at the measurement date. Level 2 also 

includes investments redeemable on or near the measurement date.

Level 3: Unobservable inputs for the asset or liability, used in situations in which little or no 

market activity exists for the asset or liability at the measurement. Level 3 also includes 

alternative investments not redeemable near the measurement date. 

The categorization of fair value measurements by level of the hierarchy is based upon the lowest 

level input that is significant to the overall fair value measurement for a given asset or liability. In 

the event that changes in the inputs used in the fair value measurement of an asset or liability result 

in a transfer between fair value hierarchies, such transfers are recognized at the end of the 

reporting period. 

Management estimates that the respective fair values of the financial instruments, other than 

investments, approximate their recorded values in the accompanying statements of financial 

position due to the relative short-term nature of those instruments. Investments are recorded at 

fair value in the accompanying statements of financial position as discussed in Notes 4 and 5. 

Revenue Recognition

The Foundation adopted ASU 2018-08 effective October 1, 2019. See recently adopted accounting 

pronouncement section for further information regarding the adoption of ASU 2018-08.

Contributions and Endowment Gifts

Contributions are transactions under which the donor does not receive commensurate value. 

Contributions are recorded as support, at fair value, when received with or without donor 

restrictions, depending on the existence and/or nature of any donor restriction, including 

inherent time restrictions. Contributions that are restricted by the donor as to time or 

purpose are reported as an increase in net assets with donor restrictions. When a time 

restriction ends, or a purpose restriction or condition is accomplished or met, net assets 

with donor restrictions are reclassified to net assets without donor restrictions and reported 

in the statements of activities as net assets released from restrictions.

Unconditional promises to give are reported at their net realizable value as pledges 

receivable in the accompanying statements of financial position. Unconditional promises to 

give that are expected to be collected in future years are discounted to present values using 

a risk-free rate of return, at the date the contribution is made. The collectability of the 

pledges receivable is evaluated by management periodically throughout the year, and an 

allowance for uncollectible amounts, is recorded in the period such a determination is made. 

Conditional promises to give are not recorded as pledges receivable until the conditions are 

satisfied. Contributions received by the Foundation consist of support provided primarily by

individuals, corporations and foundations.
National Park Foundation

Notes to Financial Statements

16

Endowment gifts are recognized as support when received. The principal amount of the gift 

is maintained intact. Investment income on endowment gifts is recognized as an increase in 

net assets without restriction, unless the income is explicitly restricted by donor or law and 

such restrictions have not been met. The Foundation follows the enacted version of the 

Uniform Prudent Management of Institutional Funds Act of 2006 (the UPMIFA). The required 

expanded disclosures are included in Note 12. 

Contributed Property, Goods, Services and Media

Contributed property is recorded at fair value at the date of donation. If donors stipulate 

how the property must be used, the contributed property is recorded as support with donor 

restrictions. In the absence of such stipulations, contributed property is recorded as support

without donor restrictions.

Contributed goods, services and media: From time to time, the Foundation receives 

contributed goods, services and media from third parties. While such contributed goods, 

services and media primarily support programmatic activities, some contributed goods, 

services and media also support general and administrative and fundraising activities. 

Contributed goods, services and media received are measured at their estimated fair value 

based on a similar value of like goods and services and are included as revenue and expense 

in the accompanying statements of activities. 

The Foundation receives non-professional contributed services from volunteers in 

connection with its operations. These services do not require specialized skills and, 

therefore, do not meet the requirement to be recognized as revenue and expense in the

accompanying statements of activities. 

Government Grants and Support

Revenue and support from government contracts and grants that provide for cost 

reimbursement are recognized when the related direct and allocated indirect expenses are 

incurred, deliverables are met, or per-diem services are provided. Revenue recognized in

excess of cash received is reported as grants receivable. Cash received in excess of revenue 

recognized is reported as refundable advances. 

Management and Other Income

Management and other income included litigation settlement contributions which represent 

voluntary community service payments from corporations that have entered a plea 

agreement with the Department of Justice. See Note 15 for further information regarding 

this revenue.
National Park Foundation

Notes to Financial Statements

17

Program and Supporting Services 

Program Grants: The Foundation grants funds in support of strategic programmatic 

initiatives. Specific programmatic focus areas include enhancing the visitor experience, 

conserving and preserving natural and cultural resources, connecting people to national 

parks, and connecting partners to national parks. The Foundation monitors the use of 

granted funds through grantee reporting governed by formally executed agreements with 

each grantee. These agreements require grantees to certify that the usage of funds meet 

the requirements of the grant.

Program Grants (land): The Foundation acquires conservation property through various 

donations or purchases for subsequent sale or donation to or for the benefit of NPS. Real 

property donated is valued at its estimated fair market value at the time of donation. The 

carrying value is reduced if the estimated market value decreases below the original 

recorded value based on “end use” considerations. Covenants on the properties restrict their 

future use to conservation activities.

Program Support: The Foundation currently appropriates funds for program support 

activities based upon program demands and availability of funds during a particular year.

Support expenses include payroll costs for time spent on specific programs, direct costs 

relevant to activities that benefit a program, and cost of digital media to support various 

programs. 

General and Administrative: General and administrative expenses include the Foundation’s 

general operations such as execution and oversight of the operating strategy, office 

administration, financial administration, Board of Directors oversight, human resource 

management, information technology, security, and related elements. 

Fundraising: Fundraising activities include publicizing and conducting fund-raising 

campaigns; maintaining donor lists; conducting special fund-raising events; and conducting 

other activities involved with soliciting contributions from individuals, and corporations and 

foundations.

Expense Classifications

The cost of providing various programs and other activities has been summarized on a functional 

basis in the accompanying statements of activities and statements of functional expenses. All 

expenses are identified with specific program services or supporting services and charged directly 

according to their natural expenditure classifications. As such, the Foundation does not allocate 

expenses across program services or supporting services. General and administrative expenses 

include those costs that are not directly identifiable with any specific function, but which provide 

for the overall support and direction of the Foundation.

Fundraising costs incurred in one year, which may result in contributions received in future years, 

are expensed as incurred. Additionally, advertising costs are expensed as incurred.

Reclassifications

Certain amounts in the 2019 financial statements have been reclassified to conform to the 2020

presentation. The reclassifications have no effect on the previously reported change in net assets.
National Park Foundation

Notes to Financial Statements

18

Recently Adopted Accounting Pronouncement

In June 2018, the FASB issued ASU 2018-08 to standardize how grants and other contracts received 

and made are classified across the sector, as either an exchange transaction or a contribution. The 

standard provides guidance to assist in the determination of whether a transaction is a contribution 

or an exchange transaction. If the transaction is deemed to be a contribution, the guidance provides 

factors to consider with regard to whether the contribution is conditional or unconditional. For 

contributions received, if determined to be an unconditional contribution, the determination then 

need to be made as to whether the contribution is restricted. For contributions made to other 

organizations that were considered to be unconditional in nature, the Foundation continues to 

report these contributions made as grants payable in the statements of financial position. As 

payments are made to the recipients of those grants, the grants payable balance is reduced. Awards 

made to other organizations that are conditional in nature are not recorded as expenses until the 

condition has been satisfied. As the conditions are satisfied, expenses are recorded in the 

statements of activities. The ASU assists in the determination of the nature of the transaction which 

governs the revenue and expense recognition methodology and timing of the transaction. The 

Foundation adopted the ASU effective October 1, 2019. 

With the clarifications outlined in ASU 2018-08, the Foundation reviewed its existing government 

grants and support contracts as well as new awards, and assessed that these constitute contributions 

since the customer does not receive commensurate value of the consideration received by the 

Foundation; rather, the purpose of an arrangement is for the benefit of the general public. 

Therefore, management concluded that the agreements are conditional due to rights of 

return/release and barriers to entitlement to funds. Revenue is recognized when the condition is 

satisfied. Because the nature of conditions are either based on incurring qualifying expenses or 

satisfying a milestone or other deliverable, the pattern of revenue recognition remained consistent 

with previous years. Therefore, under the prospective approach, there was no material change in 

the revenue recognition for government grants and support. Under ASU 2018-08, a refundable 

advance is recorded when the Foundation receives assets (i.e. cash) in advance of the satisfaction 

of the conditions within these arrangements. As of September 30, 2020, there was $5,366,848 in 

refundable advances recorded related to conditional government grants and support. 

The Foundation also examined contracts pertaining to funds it historically managed as a custodial 

agent for NPS (agency funds). While ASU 2018-08 does not specifically address the concepts of 

agency transactions and/or accounting implications of financially interrelated entities, the focus of 

the contribution revenue recognition from the guidance is consistent with the flow of income 

received for funds that have been traditionally treated under the agency accounting rules. Thus, 

the Foundation has concluded that with the adoption of ASU 2018-08, NPS related funds historically 

treated as agency funds should be accounted for in a manner consistent with the contributions and 

endowment gifts. As a result of the adoption of ASU 2018-08, the Foundation implemented the 

change in accounting principle using the modified retrospective approach effective on October 1, 

2019. Under this method, the standard is applied retrospectively, with the cumulative effect of the 

change recognized at the date of the beginning of fiscal year 2020. Accordingly, the comparative 

information (for fiscal year 2019) has not been restated, and it is presented as previously reported 

prior to the change in accounting principle. 
National Park Foundation

Notes to Financial Statements

19

Impact on the statement of financial position as of September 30,2020: 

 

September 30, 

2020 prior to 

ASU 2018-08 ASU 2018-08

September 30, 

2020 with ASU 

2018-08

Total assets $ 288,766,343 $ - $ 288,766,343

Other liabilities $ 17,167,540 $ - $ 17,167,540

Funds managed as agent 

 for other entities 40,729,933 (40,716,871) 13,062

Total liabilities 57,897,473 (40,716,871) 17,180,602

Net assets without donor restrictions 57,292,391 - 57,292,391

Net asset with donor restrictions 173,576,479 40,716,871 214,293,350 

Total net assets 230,868,870 40,716,871 271,585,741

Total liabilities and net assets $ 288,766,343 $ - $ 288,766,343

Impact on the statement of activities for the year ended September 30,2020:

 

Results for the 

Year Ended 

September 30, 

2020 prior to 

ASU 2018-08 ASU 2018-08

Results for the 

Year Ended 

September 30, 

2020 with ASU 

2018-08

Total revenue and support $ 109,979,451 $ - $ 109,979,451

Total expenses 102,775,446 - 102,775,446

Non-operating activities 17,382,187 - 17,382,187

Change in net assets $ 24,586,192 $ - $ 24,586,192
National Park Foundation

Notes to Financial Statements

20

Impact on the statement of cash flow for the year ended September 30,2020:

 

Cash Flows for 

the Year Ended 

September 30, 

2020 prior to

ASU 2018-08 ASU 2018-08

Cash Flows for 

the Year Ended 

September 30, 

2020 with ASU 

2018-08

Change in net assets $ 65,303,063 $ (40,716,871) $ 24,586,192

Change in Funds managed as 

 agency funds (40,716,151) 40,716,871 720

Other net cash used in 

 operating activities (17,014,179) - (17,014,179)

Net cash used in investing activities (22,745,031) - (22,745,031)

Net cash provided by

 financing activities 11,602,765 - 11,602,765

Net decrease in cash and cash

 equivalents $ (3,569,533) $ - $ (3,569,533)

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), 

Recognition and Measurement of Financial Assets and Financial Liabilities. The update affects the 

accounting for equity investments and financial liabilities, and the presentation and disclosure 

requirements for financial instruments. This ASU 2016-01 was adopted in 2020 and did not have a 

significant impact on the Foundation’s financial statements. There was no effect on the change in 

net assets reported at September 30, 2019 as a result of adopting ASU 2016-01.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash

Payments (Topic 230), which clarifies how certain cash receipts and cash payments are presented

and classified in the statement of cash flows. The amendments are intended to reduce diversity in

practice. ASU 2016-15 contains additional guidance clarifying when an entity should separate cash

receipts and cash payments and classify them into more than one class of cash flows (including when

reasonable judgment is required to estimate and allocate cash flows) versus when an entity should

classify the aggregate amount into one class of cash flows on the basis of predominance. The

Foundation adopted ASU 2016-15 and there was no significant impact in the presentation of the

statements of cash flows. There was no effect on the change in net assets reported at September 

30, 2019 as a result of adopting ASU 2016-15.

Recent Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606). The 

update establishes a comprehensive revenue recognition standard for virtually all entities under 

U.S. GAAP including those that previously followed industry-specific guidance. The FASB issued ASU 

2015-14 in August 2015 that deferred the effective date of ASU 2014-09 by a year. In addition, the 

FASB issued ASU 2016-20 in December 2016 that does not change the core principles of the standard 

but clarifies certain narrow aspects of the standard including its scope, contract cost accounting, 

disclosures, illustrative examples, and other matters. ASU 2016-20 becomes effective concurrently 

with ASU 2014-09. ASU 2014-09 is effective for fiscal years beginning after December 15, 2018. To 

provide accounting relief during the COVID-19 crisis, the FASB issued ASU 2020-05 in May 2020, which 
National Park Foundation

Notes to Financial Statements

21

delays the effective date by one year (on an optional basis) for private and not-for-profit entities 

that have not yet issued financial statements reflecting the adoption of ASC 606. The optional 

deferred effective dates are for annual reporting periods beginning after December 15, 2019 and 

for interim reporting periods within annual periods beginning after December 15, 2020. Management 

has decided to exercise the deferral and is currently evaluating the impact the ASU will have on the 

financial statements. 

In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes the current lease guidance 

under Leases (Topic 840) and makes several changes, such as requiring an entity to recognize a 

right-of-use ("ROU") asset and corresponding lease obligation on the balance sheet, classified as 

financing or operating, as appropriate. In July 2018, the FASB issued ASU 2018-10, Codification 

Improvements to Topic 842, Leases to add clarity to certain areas within ASU 2016-02 and ASU 2018-

11, Targeted Improvements, to add an additional and optional transition method to adopt the new 

leases standard by allowing recognition of a cumulative-effect adjustment to the opening balance 

of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20, 

Narrow-Scope Improvements for Lessors to add clarity to lessors accounting for sales taxes and other 

similar taxes collected from lessees, accounting for variable payments for contracts with lease and 

non-lease components, and accounting for certain lessor costs. The effective date and transition 

requirements of these updates will be the same as ASU 2016-02. On July 17, 2019, the FASB 

postponed the effective date for private companies for twelve months. The ASU is effective for 

fiscal years beginning after December 15, 2020. In an effort to provide relief to entities impacted 

as a result of the COVID-19 pandemic, the FASB issued ASU 2020-05, which delays the effective date 

of ASC 842 by one year to include all nonpublic entities that have not yet issued their financial 

statements. The deferred effective date is for fiscal years beginning after December 15, 2021, and 

interim periods with fiscal years beginning after December 15, 2022. Management is currently 

evaluating the impact the ASU will have on the financial statements.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure 

Requirements for Fair Value Measurement. The update modifies certain disclosure requirements in

Topic 820, Fair Value Measurement. The ASU 2018-13 is effective for the Foundation’s financial 

statements for fiscal years beginning after December 15, 2019. The Foundation is currently 

evaluating the impact of this ASU will have on the financial statements.

In September 2020, the FASB issued ASU No. 2020-07, Presentation and Disclosures by Not-for-Profit 

Entities for Contributed Nonfinancial Assets. In an effort to improve transparency in reporting 

nonprofit gifts-in-kind, the ASU requires not-for-profit organizations to change the financial 

statement presentation and disclosure of contributed nonfinancial assets. Under the new 

requirements, gifts-in-kind are to be presented as a separate line item, and include enhanced 

disclosures about the valuation of those contributions, description of any donor-imposed 

restrictions, and description of the valuation techniques and inputs used to arrive at a fair value 

measure. The new standard is to be applied retrospectively, with amendments taking effect for 

annual reporting periods beginning after June 15, 2021, and interim periods within annual reporting 

periods beginning after June 15, 2022. Early adoption is permitted. The Foundation is currently 

evaluating the impact of this ASU will have on the financial statements.
National Park Foundation

Notes to Financial Statements

22

3. Pledges Receivable

Pledges receivable that are expected to be collected in future years are discounted to present 

values using a blended rate using prime rate, and a risk-free rate of return, at the time the 

unconditional promises are made. The discount rates for 2020 and 2019 range from 1.69% to 4.01%. 

The stated balance also factors in circumstances that may impact the Foundation’s ability to collect 

individual pledge balances. An allowance for uncollectible pledges is annually assessed utilizing a 

five-year average of actual uncollectible accounts as a percentage of then outstanding receivable 

balance. At September 30, 2020 and 2019, the allowance for uncollectible pledges totaled $487,838

and $378,681, respectively and were netted in the pledges receivable balances. For the years ended 

September 30, 2020 and 2019, the Foundation recorded bad debt expense (recovery) of $109,157 

and ($37,018), respectively. 

Pledges receivable consists of the following: 

September 30, 2020 2019

Due in less than one year $ 46,972,625 $ 40,707,860

Due in two to five years 12,455,702 14,334,289

Due after five years 25,000 255,436

Total pledges receivable 59,453,327 55,297,585

Less:

Discount for present value (597,044) (977,448)

Allowance for doubtful pledges (487,838) (378,681)

Pledges receivable, net $ 58,368,445 $ 53,941,456

4. Investments 

Investments consist of the following at:

September 30, 2020 2019

Money market funds $ 42,921,834 $ 30,820,199

Mutual funds 171,421,292 150,398,768

Exchange traded funds 803,091 717,191

Cash 828,503 3,050,403

Total investments 215,974,720 184,986,561

Less: funds managed as agent for other entities (13,062) (40,729,213)

Total investments, net of other entities’ funds $ 215,961,658 $ 144,257,348
National Park Foundation

Notes to Financial Statements

23

Investment return, net is comprised of the following:

Years Ended September 30, 2020 2019

Interest and dividend income $ 4,859,646 $ 4,921,744

Net realized and unrealized gains (losses) 12,452,096 (81,004)

Investment management fees (111,415) (17,504)

Investment return, net $ 17,200,327 $ 4,823,236

Donated Securities

During the year ended September 30, 2016, the Foundation received donated securities from a 

private foundation organized for charitable purposes and exempt from federal income taxation 

under Section 501(c)(3). The grant was composed of 39 non-voting, restricted class B shares of an 

exempt entity, related to the donor, organized for charitable purposes whose class A shares are 

owned by the donor. As an owner of the class B shares, the Foundation will receive dividends for 

use toward restricted charitable purposes, but has no voting rights or other ownership rights.

At the time of the grant, the Foundation was not able to establish a supportable fair market value 

of the class B shares. Accordingly, the Foundation recorded an asset for an estimated value for 

management tracking purposes and fully reserved the asset to yield a net asset value of $0 for 

reporting purposes.

Dividends received during the years ended September 30, 2020 and 2019 totaled approximately $0 

million and $4.6 million, respectively, which have been recorded as contributions with donor 

restrictions. 

5. Fair Value Measurements

The determination of the fair value level within which the entire fair value measurement falls is 

based on the lowest level input that is significant to the fair value measurement in its entirety. The 

Foundation’s assessment of the significance of the particular input to the fair value measurement 

in its entirety requires judgment and considers factors specific to the assets or liabilities.

The availability of observable market data is monitored to assess the appropriate classification of 

financial instruments within the fair value hierarchy. Changes in economic conditions or modelbased valuation techniques may require the transfer of financial instruments from one fair value 

level to another. In such instances, the transfer is reported as of the end of the reporting period. 

For the years ended September 30, 2020 and 2019 there were no material transfers in or out of 

levels 1, 2 or 3.

Investments in money market and mutual funds (Note 3) are valued at readily available quoted 

prices held by the Foundation at year-end reported in the listing of the applicable major exchanges.
National Park Foundation

Notes to Financial Statements

24

The table below presents the balances of assets measured at fair value on a recurring basis by level 

within the hierarchy: 

As of September 30, 2020

Total Level 1 Level 2 Level 3

Investments at fair value:

Money market funds $ 42,921,834 $ 42,921,834 $ - $ -

Mutual funds 171,421,292 171,421,292 - -

Exchange traded funds 803,091 803,091 - -

Total investments at fair 

value level $215,146,217 $ 215,146,217 $ - $ -

Investments at cost*

Cash 828,503

Total investments $215,974,720

* Cash included in the investment portfolio is not subject to the provisions of fair value measurements as they are recorded at 

cost and are only shown here to reconcile to the accompanying statements of financial position.

The table below presents the balances of assets measured at fair value on a recurring basis by level 

within the hierarchy: 

As of September 30, 2019

Total Level 1 Level 2 Level 3

Investments at fair value:

Money market funds $ 30,820,199 $ 30,820,199 $ - $ -

Mutual funds 150,398,768 150,398,768 - -

Exchange traded funds 717,191 717,191 - -

Total investments at fair 

value level $ 181,936,158 $ 181,936,158 $ - $ -

Investments at cost*

Cash 3,050,403

Total investments $ 184,986,561

* Cash included in the investment portfolio is not subject to the provisions of fair value measurements as they are recorded at 

cost and are only shown here to reconcile to the accompanying statements of financial position.
National Park Foundation

Notes to Financial Statements

25

6. Charitable Gift Annuity

The Foundation has a charitable gift annuity plan whereby donors may contribute assets in exchange 

for the right to receive a fixed-dollar periodic payment of the gift assets during their lifetimes. 

Payments begin in accordance with the timing stipulated in the gift annuity contracts. The 

difference between the original annuity amount invested and the discounted liability for future 

payments, determined on an actuarial basis, is recognized as contribution revenue at the date of 

the gift. The actuarial liability is revalued annually and any surplus or deficiency is recognized as a 

change in value in the statements of activities.

The gift annuity program recorded as an asset totaled $1,700,654 and $1,508,695 and a liability of 

$1,024,031 and $980,807 as of September 30, 2020 and 2019, respectively. Assets held under 

charitable gift annuities are included in investments and the related liabilities are included in 

accounts payable and accrued liabilities in the statements of financial position. Contribution 

revenue totaled $86,740 and $418,351 for the years ended September 30, 2020 and 2019, 

respectively, and is included in the statements of activities.

7. Furniture and Equipment

Furniture and equipment consist of the following at:

September 30, 2020 2019

Leasehold improvements $ 3,457,320 $ -

Computer software and hardware 2,205,576 1,970,161

Furniture and equipment 330,756 218,146

Produced content 269,520 -

6,263,172 2,188,307

Less: accumulated depreciation and amortization (2,002,694) (1,686,670)

Furniture and equipment, net $ 4,260,478 $ 501,637

Depreciation and amortization expense totaled $438,614 and $363,942 for the years ended 

September 30, 2020 and 2019, respectively.

8. Grants Payable 

Grants payable greater than one year are discounted using the Treasury bill rate at the time the 

commitments are made. At September 30, 2020 and 2019, grants outstanding of $1,831,237 and 

S1,746,922, respectively, were due in less than one year.
National Park Foundation

Notes to Financial Statements

26

9. Line-of-Credit

The Foundation has an unsecured line-of-credit. The total amount available under the line-of-credit 

as of September 30, 2020 and 2019 was $3,000,000. Borrowings bear interest at the one-month 

Secured Overnight Financing Rate (SOFR) as quoted by the bank, two business days prior to the date 

of the draw. Such rate is to be effective and adjusted for the Federal Reserve Board of Governors

reserve requirements and FDIC insurance, plus 1.5%. The effective interest rate at September 30, 

2020 and 2019 was 1.58% and 3.52%, respectively. There was no balance outstanding at September 

30, 2020 and 2019. The line has not been drawn down during the years ended September 30, 2020 

and 2019. 

10. Notes Payable

Payroll Protection Program

On April 18, 2020, the Foundation was granted a loan in the amount of $1,791,500 under the 

Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief 

and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for eligible 

purposes including payroll costs, group health care benefits, mortgage payments, rent utilities, and 

interest on other debt obligations. 

Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for 

qualifying expenses. The Foundation’s PPP loan was forgiven on December 30, 2020.

Note Payable

During December 2016, the Foundation entered into an agreement with an unrelated nonprofit 

public benefit corporation for a four-year loan for $9,523,704. Interest on the unpaid principal was

due monthly at a rate of 1%. As of September 30, 2020, the loan was fully paid by the Foundation, 

including all related remaining interest. At September 30, 2019, the balance of the loan was 

$182,444, net of imputed interest unamortized discount of $6,291. 

11. Net Assets

To ensure observance of the limitations and restrictions placed on the use of resources available to 

the Foundation, the accounts of the Foundation are internally maintained in accordance with the 

principles of project or fund accounting. Separate accounts are maintained for each fund. However, 

in the accompanying financial statements, funds are classified for presentation purposes under ASU 

2016-14, Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit 

Entities, as without donor restrictions which composed of undesignated, designated, or with donor 

restrictions. 

Net assets without donor restrictions include undesignated funds for general operations, and funds 

designated by the board for grants, or funds designated by the Foundation for other projects. 
National Park Foundation

Notes to Financial Statements

27

Net assets without donor restrictions were as follows:

September 30, 2020 2019

Without donor restrictions – undesignated $ 29,842,356 $ 24,797,312

Without donor restrictions – designated:

 Board designated for strategic programmatic use in 

 the future 26,828,543 24,172,592

 NPF designated:

 NPS Centennial 166,500 66,500

 Innovation 79,992 79,992

 Land 375,000 375,000

 Total NPF designated amounts 621,492 521,492

Total designated 27,450,035 24,694,084

Total net assets without donor restrictions $ 57,292,391 $ 49,491,396

Net assets with donor restrictions, some of which are time restricted, are primarily available to 

support program grant and program support activities or are restricted to investments in perpetuity, 

the income from which is expendable to support program activities. 

Net assets with donor restrictions were as follows:

September 30, 2020 2019

Subject to expenditure for specified purpose:

Core programs $ 101,748,937 $ 62,470,636 

Other programs 19,225,973 16,702,130 

Total subject to expenditure for specified purpose 120,974,910 79,172,766

Subject to endowment spending policy and appropriation:

Endowments 93,318,440 77,618,516

Total net assets with donor restrictions $ 214,293,350 $ 156,791,282
National Park Foundation

Notes to Financial Statements

28

Net assets were released from donor restrictions by incurring expenses satisfying the restricted 

purpose or by occurrence of the passage of time or other events specified by the donors as follows:

Years ended September 30, 2020 2019

Satisfaction of purpose restrictions:

Core programs $ 65,056,209 $ 35,932,575

Other programs 2,348,647 3,094,820

Total satisfaction of purpose restrictions 67,404,856 39,027,395

Restricted-purpose spending-rate distributions and 

appropriations:

Endowments 1,597,455 1,557,881

Total net assets released from donor restrictions $ 69,002,311 $ 40,585,276

12. Endowment Funds

The Foundation’s endowment consists of multiple individual funds established to support program 

activities. Its endowment includes both donor-restricted endowment funds and funds designated by 

the Board of Directors to function as a quasi-endowment. Net assets associated with endowment 

funds, including funds designated as a quasi-endowment by the Board of Directors, are classified 

and reported based on the existence or absence of donor-imposed restrictions.

Interpretation of Relevant Law

The Board of the Foundation has interpreted the State Prudent Management of Institutional Funds 

Act (the Act) as requiring the preservation of the fair value of the original gift as the gift date of 

the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result 

of this interpretation, the Foundation classifies as net assets with donor restrictions (a) the original 

value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to 

the permanent endowment, and (c) accumulations to the permanent endowment made in 

accordance with the direction of the applicable donor gift instrument at the time the accumulation 

is added to the fund.

In accordance with the Act, the Foundation considers the following factors in making a

determination to appropriate or accumulate donor-restricted endowment funds:

(1) The duration and preservation of the donor-restricted endowment fund

(2) The purposes of the Foundation and the donor-restricted endowment fund

(3) General economic conditions

(4) The possible effect of inflation and deflation

(5) The expected total return from income and the appreciation of investments

(6) Other resources of the Foundation

(7) The investment policies of the Foundation
National Park Foundation

Notes to Financial Statements

29

Return Objectives and Risk Parameters

The Foundation has adopted investment and spending policies for endowment assets that attempt 

to provide a predictable stream of funding to programs supported by its endowment while seeking 

to maintain the purchasing power of the endowment assets.

Endowment assets include those assets of the donor-restricted funds that the Foundation must hold 

in perpetuity or for a donor-specified period(s) as well as board designated funds. Under this policy, 

as approved by the Board of Directors, the endowment assets are invested in a manner that is 

intended to provide growth and to preserve or increase the real value of the endowment to meet 

the future needs of the national parks, always with the objective of selecting investment vehicles 

that are at an appropriate level of risk for a non-profit organization. Actual returns in any given 

year may vary.

Funds with Deficiencies

From time to time, the fair value of assets associated with individual donor-restricted endowment 

funds may fall below the level that the donor or the UPMIFA requires the Foundation to retain as a 

fund of perpetual duration. 

These deficiencies may result from unfavorable market fluctuations that occurred shortly after the 

investment of new contributions for donor restricted endowment funds. For one of the Foundation’s 

endowments, the donor permitted spending from endowment funds for the initial three-year start 

up period, in order to support the program’s mission. 

The Foundation has a policy that permits spending from underwater endowment funds depending 

on the degree to which the fund is underwater, unless otherwise precluded by donor intent or 

relevant laws and regulations. 

As of September 30, 2020 and 2019, deficiencies of this nature were $0.6 million and $0.7 million,

respectively, which was reported in net assets with donor restrictions. 

Spending Policy

The Foundation currently appropriates funds for the distribution of program support activities based 

upon the demand for these purposes and on the availability of funds during the particular year. The 

Foundation has a board policy that permits as part of its annual budget process a transfer from the 

without donor restrictions Board-designated net assets to the without donor restrictions

undesignated net assets of up to 5% of the average market value of the without donor restrictions 

Board-designated net assets as of March 31 for the three preceding years. Additional transfers are 

permitted by Board of Directors action. 
National Park Foundation

Notes to Financial Statements

30

The net asset composition of the endowment funds as of September 30, 2020 were as follows:

Without Donor With Donor

Restrictions Restrictions Total

Board designated quasi-endowments $ 26,828,543 $ - $ 26,828,543

Donor-restricted endowments:

 Original donor-restricted gift amount 

 and amounts required to be

 maintained in perpetuity by the donor - 71,423,558 71,423,558

Accumulated investment gains - 21,894,882 21,894,882

Total endowment funds $ 26,828,543 $ 93,318,440 $ 120,146,983

The following table represents the changes in endowment net assets for the year ended September 

30, 2020: 

Without Donor With Donor

Restrictions Restrictions Total

Endowment net assets, beginning of year $ 24,172,592 $ 77,618,516 $ 101,791,108

Contributions - 10,288,797 10,288,797

Investment return, net 3,108,251 7,010,839 10,119,090

Appropriation of endowment assets for 

expenditure (452,300) (1,599,712) (2,052,012)

Endowment net assets, end of year $ 26,828,543 $ 93,318,440 $ 120,146,983

The net asset composition of the endowment funds as of September 30, 2019 were as follows:

Without Donor With Donor

Restrictions Restrictions Total

Board designated quasi-endowments $ 24,172,592 $ - $ 24,172,592

Donor-restricted endowments:

 Original donor-restricted gift amount

 and amounts required to be

 maintained in perpetuity by the donor - 61,347,512 61,347,512

Accumulated investment gains - 16,271,004 16,271,004

Total endowment funds $ 24,172,592 $ 77,618,516 $ 101,791,108
National Park Foundation

Notes to Financial Statements

31

The following table represents the changes in endowment net assets for the year ended September 

30, 2019: 

Without Donor With Donor

Restrictions Restrictions Total

Endowment net assets, beginning of year $ 24,317,298 $ 67,301,642 $ 91,618,940

Contributions - 10,118,435 10,118,435

Investment return, net 855,294 1,756,320 2,611,614

Appropriation of endowment assets for 

expenditure (1,000,000) (1,557,881) (2,557,881)

Endowment net assets, end of year $ 24,172,592 $ 77,618,516 $ 101,791,108

13. Commitments and Contingencies

Operating Lease Commitments

The Foundation entered into a lease agreement with terms that ended in May 2020 for subleased 

premises at 1110 Vermont Avenue. Rent payments were recognized as expense on a straight linebasis over the term of the lease. 

The Foundation has executed a lease agreement for relocation to new office space located at 1500 

K Street, NW, effective June 1, 2020. The terms of the new lease agreement consist of 89 months, 

with the option to extend the lease up to two consecutive periods of 60 months each. The terms 

also include abatement for the first 5 months upon occupation of the space and a tenant leasehold 

improvement allowance of approximately $2.7 million which includes a commission rebate of $0.1 

million. As of September 30, 2020, the tenant leasehold improvement allowance was $2.6 million. 

The agreement permits subletting the space, subject to approval. 

The Foundation’s leases for office space provide for rent abatement and escalations of the base 

rent. Accordingly, the Foundation recognizes rent expense based on total minimum future lease

payments on a straight-line basis over the life of the lease. 

The deferred rent liability balance as of September 30, 2020 and 2019 was $381,370 and $67,184, 

respectively. Rental expense for the years ended September 30, 2020 and 2019 totaled $1,032,464

and $867,343, respectively.
National Park Foundation

Notes to Financial Statements

32

The future minimum payments under the lease agreements are as follows:

Years ending September 30,

2021 $ 1,237,353

2022 1,519,468

2023 1,557,417

2024 1,596,382

2025 1,636,279

Thereafter 3,541,861

$ 11,088,760

14. Contributed Property, Goods, Services and Media

During the years ended September 30, 2020 and 2019, the Foundation received contributed

property, goods, services and media valued at $33,620,763 and $12,618,987, respectively. Of these 

totals, digital media support was valued at $28,028,312 and $10,702,430, for the years ended 

September 30, 2020 and 2019, respectively. The remainder consisted of electronic car charging 

stations, recycled lumber for trails, travel related support, general services, as well as call to action 

communications and outreach related to NPF as a whole.

15. Litigation Settlement Contributions (Community Service Payments)

Since 1999, the Foundation has received over $20 million from several litigation settlements. These 

funds represent voluntary community service payments from corporations that have entered into a 

plea agreement related to charges by the Department of Justice for violations of certain 

environment regulations such as polluting or the mistreatment of hazardous waste materials. The 

plea agreements specify the national parks or areas to which the funds are to be allocated by the 

Foundation. The Foundation received $2,636,600 for the year ended September 30, 2020, of which 

$2,633,289 represent funds that were formerly recognized as funds managed as agent for other 

entities (see Note 2 for recently adopted accounting pronouncement). Litigation settlement 

contributions was $18,214 for the year ended September 30, 2019. The Foundation believes that 

these plea agreements represent voluntary non-reciprocal payments to the Foundation and has, 

therefore, classified them as net assets with donor restrictions support. 

16. Employee Benefit Plans

The Foundation has maintained a 403(b) retirement plan (the Plan) for its employees since 1992. 

All employees over 21 years of age with at least one year of service to the Foundation (consisting 

of at least 1,000 hours of service in a 12-month period) are eligible to receive an employer matching 

contribution to the Plan. The Foundation matches 100% of employee contributions, up to 3% of 

salary, and 50% of the next 2%, with a maximum contribution by the Foundation of 4%.

Participants are eligible to participate after one year of service and are fully vested in all 

contributions of the Plan. The Foundation’s contributions to the plan were $260,985 and $230,200, 

respectively, for the years ended September 30, 2020 and 2019. 
National Park Foundation

Notes to Financial Statements

33

The Foundation established a 457(f) deferred compensation plan during 2017 and 457(b) deferred 

compensation plan during 2019 for its President and CEO. At September 30, 2020 and 2019, the 

amounts accrued under these arrangements were $186,825 and $130,575, respectively.

17. Government Support

National Park Service Endowment

During 2020 and 2019, the Foundation was awarded an endowment of $10,000,000 each year under 

the National Park Service Centennial Act. As of September 30, 2020 and 2019, the corpus of the 

National Park Service endowment totaled $40,000,000 and $30,000,000, respectively. Endowment 

earnings totaled $3,072,158 and $857,489 for the years ended September 30, 2020 and 2019, 

respectively. The earnings are to be used to help finance the needs of the national parks. As of 

September 30, 2020 and 2019, none of the earnings have been expended. 

In addition to the endowment awarded under the National Park Service Centennial Act, the

Foundation was also awarded an appropriation of $5,000,000 during 2020, to be expensed towards

projects and programs that support the mission of NPS. For period ended September 30, 2020, 

$224,193 of appropriations was expensed. There were no appropriations awarded during fiscal year 

2019.

18. Concentrations

As of September 30, 2020 and 2019, pledges receivable from three donors represented 

approximately 69% and 61%, respectively, of total pledges receivable.
National Park Foundation

Notes to Financial Statements

34

19. Liquidity and Availability of Resources

The following reflects the Foundation’s financial assets available for general expenditure within one 

year of the statement of financial position as of September 30, 2020 and 2019: 

2020 2019

Financial assets:

Cash and cash equivalents $ 8,534,240 $ 12,103,773

Pledges receivable, net 58,368,445 53,941,456

Investments 215,974,720 184,986,561

Total financial assets 282,877,405 251,031,790

Less: Amounts unavailable for current expenditure due to:

Funds managed as agent for other entities 13,062 40,729,213

Pledges without donor restrictions collectible beyond one year 552,402 1,493,184

Charitable gift annuities 1,024,031 980,807

Net assets with donor restrictions 214,293,350 156,791,282

Total amounts unavailable for general expenditure within one year 215,882,845 199,994,486

Less: Amounts unavailable to management without Board approval

Board designated quasi-endowments 26,828,543 24,172,592

Total financial assets available to management for general

 expenditure within one year $ 41,166,017 $ 26,864,712

The Foundation regularly monitors liquidity required to meet its general operating needs and other 

contractual commitments. The Foundation’s liquidity management includes a policy of structuring 

its financial assets to be available to meet its grant-making and general expenditures, liabilities and 

other obligations as they come due. As part of its liquidity plan, excess cash is invested in publicly 

traded investment plans such as money market and mutual funds that aim to maximize return on 

investments based on acceptable levels of risk. The Foundation’s investments can be liquidated 

anytime, and therefore are available to meet current cash flow needs, except for investments held 

in perpetuity. The Foundation’s board-designated net assets include funds designated for specific 

programs. While the board of directors does not intend to spend for the purposes other than those 

identified, board-designated funds could be spent for operations, if necessary.

20. Related Parties

During the years ended September 30, 2020 and 2019, the Foundation received contributions and 

gifts of $1,653,413 and $2,950,967, respectively, from board members of the Foundation. At 

September 30, 2020 and 2019 $2,780,285 and $4,193,286, respectively, was due to the Foundation.
National Park Foundation

Notes to Financial Statements

35

21. Risks and Uncertainties

COVID-19

On January 30, 2020, the World Health Organization (WHO) announced a global health emergency 

because of a new strain of coronavirus originating in Wuhan, China (the COVID-19 outbreak) and the 

risks to the international community as the virus spreads globally beyond its point of origin. In March 

2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in 

exposure globally.

In response to the COVID-19 pandemic and its related economic impact, although the Foundation

received significant increase in contributions revenue during 2020, it continues to carefully assess 

its operating and financial health. This includes review of its financial position, its operating 

reserves, assessing the crisis’ potential impact on future revenue (especially revenue without donor 

restriction which supports the Foundation’s day-to-day operations), assessing budgeted operating 

expenses and cost containment measures that could be instituted if needed, and the Foundation’s 

access to other sources of funding in emergency circumstances including its board designated fund, 

lines-of-credit and various federal economic relief packages enacted by Congress. The Foundation’s 

Investment Committee continues to meet periodically to monitor portfolio performance, assets 

allocations, and explore alternative investment opportunities such as investment in private equity. 

The Foundation also instituted cost containment measures (including travel restrictions) for the 

forthcoming fiscal year for services that can be delayed for an extended period. In addition, the 

Foundation has strategically downsized its headcount by three and implemented a freeze on hiring 

for non-essential open positions. 

While there has been progress in developing and distributing a COVID-19 vaccine, there continues 

to be uncertainty around the breadth and duration of the business disruption, as well as its impact 

on the global economy. Nonetheless, the Foundation will continue to monitor the financial and 

business implications of the pandemic on its operations and will implement new strategies as 

appropriate. See Note 19 for information regarding the Foundation’s liquidity and availability of 

resources.

CARES Act

On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic 

Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to 

refundable payroll tax credits, deferment of employer side social security payments, net operating 

loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest 

deduction limitations, increased limitations on qualified charitable contributions, and technical 

corrections to tax depreciation methods for qualified improvement property. It also appropriated 

funds for the Small Business Administration (SBA) PPP loans that are forgivable in certain situations 

to promote continued employment, as well as Economic Injury Disaster Loans to provide liquidity to 

small businesses harmed by COVID-19. 

The Foundation’s management has evaluated the relief provisions of the CARES Act and applied for, 

and received, funds under PPP during the year ended September 30, 2020. See Note 10 for 

information regarding the PPP loan. See Note 22 for subsequent COVID-19 stimulus funding act. 

Management continues to assess any future aid packages to determine its impact on the Foundation. 
National Park Foundation

Notes to Financial Statements

36

22. Subsequent Events 

Management has evaluated subsequent events through March 2, 2021, which is the date the 

accompanying financial statements were available to be issued. There were no other transactions 

or events that required adjustment or disclosure in the financial statements other than noted below.

On December 30, 2020, the PPP loan amounting to $1.8 million was forgiven. See Note 10 for 

information regarding the PPP loan. 

On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 (the Act), 

which includes $900 billion in stimulus relief as a result of the COVID-19 pandemic. The Foundation

is currently evaluating the impact of the Act.
Management Prepared Document 
Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2020

Unaudited

A-1

Executive Summary 

 

The National Park Foundation (“NPF” or the “Foundation”) generates private support and builds 

strategic partnerships to protect and enhance America’s national parks for present and future 

generations. NPF was congressionally chartered in 1967 as the non-profit, non-governmental, 

philanthropic partner of the National Park Service (“NPS”). NPF is positioned to engage with 

individuals, institutions and corporate America in support of national parks in ways that NPS cannot 

due to federal regulations, and enjoys a unique partnership with NPS that allows it to leverage and 

direct philanthropic support toward NPS’s nationwide priorities. 

 

At its core, the Foundation focuses on four core areas to drive positive impact: (i) enhance the 

visitor experience, (ii) conserve and preserve parks’ natural & cultural resources, (iii) connect 

people to parks, and (iv) connect partners to parks. In fiscal 2020, NPF raised nearly $110 million in 

contributions and other support to fund its mission. NPF’s work is implemented through strategic 

partnerships with NPS, park friend’s groups, corporate partners, and other park partners. 

 

NPF takes a strategic approach in advancing its mission. Key elements of the approach include: 

 

• Aligning areas of programmatic focus with NPS’ priorities. Helps to ensure that the 

projects NPF undertakes are a priority and can be completed. 

• Developing diverse and robust fundraising channels. Helps to ensure NPF can deliver on 

its mission while yielding steady growth in contributions over time.

• Keeping programmatic spending ratios high over time. Helps to ensure NPF successfully 

delivers financially on its mission. 

• Controlling general, administrative and fundraising costs. Ensures focus on primary goals.

• Strategic investments in operations. Allows NPF to continue leveraging competitive 

advantages and increase its efficiency in delivering its mission.

• Mission aligned investment portfolios. Ensures portfolios are optimized for sustainable

asset growth over time.

• Maintaining a strong financial position. Ensures NPF takes actions needed to sustain 

delivery of mission over long term. 

 

Areas of Programmatic Focus 

 

NPF’s overarching goal is to ensure America’s national parks reach their fullest potential and touch 

as many lives as possible. NPF delivers programmatic impact to the parks in the following strategic 

areas: 

 

Enhancing the Visitor Experience – NPF aims to facilitate enduring high-quality park experiences 

that include the public’s enjoyment of modern facilities and amenities. NPF works with NPS to 

identify long term solutions for pressing challenges that parks face. 
 Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2020

Unaudited

A-2

Conserving and Preserving Natural & Cultural Resources – NPS is already a world-class leader in 

the preservation and restoration of natural and historical resources. NPF strives to support this work 

to ensure these places are preserved and can be enjoyed by future generations. Focus areas include 

wildlife protection, habitat stewardship, cultural and historical preservation, land conservation and 

protection, restoration to increase resilience and protecting sites of historical and cultural 

significance. NPF also supports the creation of new sites. 

Connecting People to Parks – By connecting broader audiences to parks, NPF helps to ensure that 

parks across the system are appreciated and enjoyed by people of all backgrounds. This core 

strategy helps to improve diversity in visitation, helps to increase access to parks for all age groups 

and helps to foster life-long individual enjoyment, engagement and support of parks. Examples of 

these programs include Bring Parks to People, Introductory Experiences, and Parks as Places of

Learning, Open Outdoors for Kids, Citizen Science 2.0, and Find Your Park. 

Connecting Partners to Parks – NPF, as the official philanthropic partner of NPS, is only one of 

many partners that work to support national parks. NPF works to build and sustain a strong network 

of diverse partners through collective action, capacity building, peer learning and thought 

leadership in support of America’s national parks. Programs such as Youth Service Corps, 

Volunteerism, Strong Parks - Strong Communities along with capacity-building grants and support 

for the Friends Alliance are core to this strategy. 

Overall in fiscal 2020, NPF provided nearly $73.6 million in grants and support to many of the more 

than 400 units across the country. This constituted nearly 72% of NPF’s total expenses for the year.

Fundraising Activities 

 

NPF secures funding for its mission largely through its own fundraising efforts. Funds are raised from 

individuals, corporate partners, and institutional entities. NPF’s ability to raise these funds is driven 

largely by its consistent, effective and timely delivery of programmatic impact with a margin of 

excellence. 

From fiscal 2013 through fiscal 2018, NPF raised roughly $550 million dollars as part of its Centennial 

Campaign which was designed to yield transformative support and impact for America’s national 

parks as the system turned 100 years old. The campaign and ensuing impact on parks garnered new 

opportunities to generate extraordinary gifts, diversify NPF’s revenue channels and elevate NPF’s 

ability to further leverage its unique partnership with NPS. 

Over the years, through strategic investments, NPF has developed a strong corporate partnerships 

channel, strengthened its individual giving pipeline across all levels (direct mail through major 

giving) and bolstered its strategic partnerships with institutional foundations. 
 Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2020

Unaudited

A-3

In 2016, NPF secured passage of congressional legislation that allows up to $5 million in federally 

appropriated funds to flow to NPF annually. The funds are available to NPF for programmatic use 

and require a philanthropic match. The legislation also created the “Second Century Endowment”, 

an annual federal contribution of the first $10 million in sales of Federal Recreation Land Passes 

into an NPF endowment fund. Also available for NPF to access and use, subject to philanthropic 

match, are challenge funds reserved for NPS programmatic priorities. In general, NPF’s federal 

funding vehicles are designed to further increase and excite philanthropic giving (matching private 

donations with federal dollars) by leveraging NPF’s unique position as NPS’s philanthropic partner. 

Overall, NPF has set a strong foundation for continued success in fundraising growth through a 

diversification of its revenue channels. 

Measuring Revenue Performance 

 

The Centennial Campaign helped elevate NPF’s philanthropic capacity. Recurring funding streams 

boosted the Foundation’s ability to advance its mission while transformative contributions addressed 

key nationwide priorities. Transformative contributions, however, take time to develop, steward 

and execute. This variability in timing can cause major fluctuations in total revenue, year to year.

As such, NPF measures revenue growth over three to five- year increments. NPF expects steady 

growth in revenues over this time horizon despite fluctuations that may occur year over year. 

High Programmatic Impact Over Time 

 

To support effective delivery of its mission, NPF aspires to keep its ratio of programmatic expenses 

to total expenses at a high level over time. However, as with revenue, the programmatic expense 

ratio may fluctuate for various reasons, year to year. Grants and support expenses may deviate 

from the budget due to changing project timelines, shifting priorities within NPS, a change in size 

or scope of projects, and federal restrictions on the timing of federally sourced disbursements. 

Non-programmatic costs (administrative or fundraising) may also be higher in a given year due to 

strategic investments in operations from time to time. This scenario can temporarily increase total 

costs and lower the programmatic expense ratio despite increases in programmatic spending. 

Over time, NPF expects to maintain a high programmatic impact ratio and continue to steadily 

increase its total programmatic expenses. 

Controlling General, Administrative and Fundraising Costs 

NPF’s primary goal is to maximize deployment of funds for programmatic purposes in support of its 

mission. Consequently, NPF carefully controls its general, administrative and fundraising costs 

through various means including annual budgeting, performance management, strong internal 

controls, formal cost benefit analyses, and a regular review of operations. 
 Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2020

Unaudited

A-4

Strategic Investment in Operations 

 

NPF regularly invests in its operations to bolster its competitive advantages or to increase its 

efficiency in delivering its mission. Examples of this include improving enterprise technology

systems, adding productivity tools, professional development of its staff, and elevating NPF’s

fundraising effectiveness. 

 

Mission Aligned Investment Portfolios 

 

NPF regularly monitors the financial performance, spending policies and asset allocations of its 

invested assets to ensure portfolios are optimally designed to support NPF’s mission and sustainable 

growth in asset value over time. NPF utilizes outside professional advisors to design and manage its 

investment portfolios. Each portfolio’s asset allocations are designed to balance earnings potential 

with risk tolerance based on each asset group’s purpose and spending needs or time horizons. NPF 

utilizes the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) to govern its 

permanently restricted net assets. 

 

Maintaining Strong Financial Position 

 

NPF closely manages its financial position, liquidity and general financial health to ensure 

sustainable performance in mission delivery over the long term. The following are key elements 

of NPF’s financial management strategy: 

• Employing strong oversight, risk management and internal controls over all transactions. 

• Efficient use of working capital to fund grants, operations and to generate excess 

investment earnings where possible. 

• Maintaining an optimal level of unrestricted operating reserves. 

• Disciplined review and analysis of NPF financial activities versus plan, risks, opportunities 

and obligations on an ongoing basis.