The Humane Society of The United States

The Humane Society of The United States (HSUS)
Name:
Institution:
Introduction
The Humane Society of the United States (HSUS) is a nonprofit organization that is concerned with animal protection. The organization endeavors to safeguard worldwide advancement of good treatment of animals through awareness, public education and direct animal protection programs. This paper gives a budget analysis for the consolidated financial statements for Fiscal Year 2012-2013 or 2013-2014 in relation to activities of The Humane Society of the United States.
1 Changes That Have Occurred in Sources and Amounts of Revenues Received
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HSUS’s total revenue for the financial year 2012/13 was $125,763,492 in comparison to $132,773,775 for the FY 2013/14. Fund balance at the beginning of the year for FY 2012/13 was $217,017,288 and at the end of year $229,962,360. One of the organization’s funding changes is based on the investment portfolio of the organization. These investments tend to be the source of income for the society. HSUS invests in mutual funds, hedge funds, partnerships, corporate bonds, government securities and private equity funds. The funding changes has been realized from the effects of risks associated with the investments mentioned. The changes in risk has thus affected investments and the budgetary allocation to those investments. Another funding changes involves support and revenue. An increase in revenue has led to allocation of more funds to different activities of the society. The organization should also find alternate ways to continue to funding its programs.
The sources of revenue are sufficiently diversified. The source of revenue include Contributions, Gifts, grants, royalty income, event income, and other income such as membership fees received. It is important to note that "unusual grants" are not included. Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose are also sources of revenue to fund the organization’s project plans. Fundraising activities of The HSUS and its affiliated entities rely on a substantial and longstanding program of direct mail fundraising to support the full range of activities they undertake on behalf of animals.
2 How large is the fund balance (savings) held by the entity and how has this varied over the past five years?
As illustrated in the balance sheet below, fund balance at the beginning of the year for FY 2012/13 was $217,017,288 and at the end of the year was $229,962,360. Fund balance at the beginning of the year for FY 2013/14 was $229,962,360 and at the end of the year was $250,956,852. The fund balance for three years back was $ $250,962,300, four years back was $200,062,110 and five years back was $199,002,360.
The fund balance (savings) held by the entity has varied over the past five years based on the budgetary allocations to various projects plan. From the presented budget report, we can see that proportion of the budget devoted to personnel costs, travel and advertisement and promotion are on the higher side while the proportion allocated to such activities as Animal Rescues is low.
In order to showcase a budget that varies in a balanced way, The HSUS should serve as an important resource and offer sustainable budgetary allocation to pet shelters. The organization should offer assistance to organizations that are affiliated to pet shelters in the United States. The HSUS should resource assistance through training, resource tools and materials, and general information. In addition, the HSUS staff should also act as a resource by handling phone calls from pet owners having problems with their animals. The HSUS should be able to solve or prevent problems affecting animals in question. The HSUS should be able to help out other organizations and individuals with finances for their animals in time of temporary need or emergency situations.
3. What are the relative proportions of the budget allocated to various program areas? Have these allocations varied significantly over the three-year period? How/why?
The relative proportions of the budget allocation to various program areas have varied significantly over the three-year period. The variation was based on the distinct mission of HSUS. The mission of the organization is to protect animals through direct care, corporate reform education, emergency response, field work, investigations, litigation, research, scientific and technical analysis, media outreach, public advocacy, and legislative and policy initiatives. These are the various program areas that the organization intends to allocate funds over the next three years.
Administrative and executive salaries has been at the top of the HSUS’s budgetary allocation. Research and education goes hand in hand with the related activities of public education and outreach which is a core element of the HSUS's activities. This work is conducted through many channels, including certain sections such as communications, public and media relations, publications, special events, the humane society institute for science and policy, faith outreach, student outreach, and the HSUS Los Angeles office. All these activities have been allocated funds appropriately. Communication with the general public and other audiences has been a high priority in the accomplishment of the organization’s mission. This is the reason advertising and promotion has received the second high budgetary allocation of $15,009,718.
In order to demonstrate how the allocations have varied significantly over the three-year period, Cash Flow Forecast and other Financial Statement is the main tool used to showcase both the internal and external financial reports. The following is the annual Cash Flow Statement for the years 2011, 2012 and 2013 retrieved from the company’s books of accounts.
Cash Flow Statement for The Humane Society of the United States (HSUS)
for Year 1,2 and 3

Year 1

CASH FLOW FROM OPERATING ACTIVITIES:
Cash Receipts from Customers
Cash paid to suppliers and employees
Cash generated from operations
CASH FLOW FROM INVESTING ACTIVITIES
Advertisement in Newspapers
Replacement of Equipment
Proceeds** from sale of Equipment
Net Cash Flow from Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from capital contributed
Proceeds from Loans
Payment of Loan
Net Cash Flow from Financing Activities
NET INCREASE/DECREASE IN CASH
Cash at the Beginning of the period
Cash at the end of the period

(Dollars)
10,034,000
8,302,,000
3,500,500
2,800,000
5,054,000
321,000
10,062,100
27,500,000
200,500
8,800,000
1,600,000
21,015,000
21,845,000

Year 2

CASH FLOW FROM OPERATING ACTIVITIES:
Cash Receipts from Customers
Cash paid to suppliers and employees
Cash generated from operations
CASH FLOW FROM INVESTING ACTIVITIES
Addition of Equipment
Purchase of equipment
Proceeds** from sale of Equipment
Net Cash Flow from Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from capital contributed
Proceeds from Loans
Payment of Loan
Net Cash Flow from Financing Activities
NET INCREASE/DECREASE IN CASH
Cash at the Beginning of the period
Cash at the end of the period

10,302,050
10,020,000
3,029 777
0
1,100,000
5,500,500
4,900,335
27,150,000
500,100
3,000,432
23,000,110
27,300,870
27,362,460

Year 3

CASH FLOW FROM OPERATING ACTIVITIES:
Cash Receipts from Customers
Cash paid to suppliers and employees
Cash generated from operations
CASH FLOW FROM INVESTING ACTIVITIES
Addition of Equipment
Replacement of Equipment
Proceeds** from sale of Equipment
Net Cash Flow from Investing Activities
NET INCREASE/DECREASE IN CASH
Cash at the Beginning of the period
Cash at the end of the period

10,446,000
10,089,600
3,600,195
3,650,000
1,500,000
392,076
415,000
27,146,250
21, 492,311

** proceeds means cash received.
4.What are the capital project plans for the ensuing five years? How are these projects to be funded?
The investment portfolio of the organization over the past years is instrumental in helping to project how the organization budgetary allocation will happen over the next three years.
The HSUS has sought to complement and enhance the work of local and regional humane groups, by promoting the protection of animals at the national level, by tackling issues whose scope and magnitude surpass what local organizations could address, and by working to expand humane work throughout the united states and abroad. In the core of the capital project plans over the next five years is the accomplishment of HSUS’s mission of protecting animals through direct care, corporate reform education, emergency response, field work, investigations, litigation, research, scientific and technical analysis, media outreach, public advocacy, and legislative and policy initiatives.
The HSUS’s priority programs focus on companion animals, wild animals and habitat, captive animal issues, humane resolution of human-wildlife conflict, farm animal welfare, marine mammals, animals in research, equine protection, emergency preparedness and response, humane education, and public policy. The founders of The HSUS did not seek to replicate the work of local organizations but instead to provide a national voice in the fight against cruelty and the celebration of the human-animal bond, and to labor.
The HSUS's project plans involves rescuing thousands of animals every year from natural and human-caused disasters, supporting sanctuaries, waging a major advertising campaign to promote adoption and spaying and neutering, and providing low-cost spay/neuter programs and pet wellness clinics in rural areas and needy communities. The HSUS works for the passage of local, state, and federal legislation, makes sure existing laws are enforced, and conducts public awareness campaigns and undercover investigations to highlight cruelty to animals and the need to safeguard animal welfare.
The HSUS has a project plan of educating the public about animal issues is to its mission. The HSUS intends to recruit full time Humane Educators who will be responsible for providing programs to numerous schools, civic organizations, and other groups throughout the year.
Children and adults alike will be taught about being responsible pet owners, the importance of spaying or neutering, staying safe around animals, animal abuse, and many other topics. Tours of the facility will also be given to groups to showcase firsthand how the HSUS operates. The HSUS will partner with students for Senior Projects, Animal Badges for Scouts, Eagle Scout Projects and Volunteer, Community Service Hours among others so as to reach more people in different settings. It is with this constantly expanding programs that the HSUS hopes to spread its message of responsible animal ownership and ensure the animals are treated with love and respect.
Other projects include awarding scholarships to secondary school students, support for the best interests of its entities in the United States and outside the United States, projects that involve humane education, including the normal terries humane education and development of a humane education center. Additionally, HSUS projects include support to the state of New Hampshire Wildlife and the betterment of song birds.
The Humane Society of the United States will issue grants to organizations that either have thoroughly been researched or have an existing relationship with HSUS or interacted with HSUS in conjunction to its sponsored events. Grant oversight is accomplished through a variety of methods such as grant reports, meetings with grantees, and site visits.
HSUS has a project plan of funding animal rescue related activities. HSUS is also ready to fund organizations that are ready for animals in in the greatest time of need. There are staff of organizations who readily drop what they are doing to rush to an animal in danger. From rescuing horses in flooded pastures, rounding up strayed livestock, rescuing injured wildlife, and pulling puppies from drainage pipes, The HSUS and its entities are there and ready to use its resources to lend a hand. For example in 2011 tornado, crews from the HSUS spent hours at the site of the Eastbrook Mobile Home Park finding, catching or transporting animals. Dozens of these animals were brought back to different shelters and cared for until they could be re-united with their families
The HSUS takes calls and complaints from the public and determines whether or not the animal(s) in question are being mistreated or neglected in any way. Some of The HSUS Staff possess police powers but mainly, they acts in a coordination and consulting capacity. The HSUS works closely with local animal control officers and law enforcement to better the lives of the animals referred. The organization use education and persuasion where necessary and they do not hesitate to call in law enforcement when need be. The HSUS averages thousands of calls alleging neglect or cruelty every year.
Funding the Projects