2020 We inspire people to plant, nurture, and celebrate trees. 1 Arbor Day Foundation
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ANNUAL
REPORT
2020
We inspire people to plant, nurture, and celebrate trees.
1 Arbor Day Foundation
TABLE OF CONTENTS
Message from the Chief Executive,
Matt Harris.........................................................5
Board of Trustees....................................................6
Message from the Board Chair,
Pat Covey............................................................7
ARBOR DAY FOUNDATION
PROGRAM UPDATES
Time for Trees® Initiative.................................... 8-9
Trees for America®......................................... 10-11
Replanting Our Forests.................................. 12-13
Tree City USA®............................................. 14-15
Community Tree Recovery™ ........................ 16-17
Rain Forest Rescue®....................................... 18-19
Energy-Saving Trees®
& Community Canopy™........................... 20-21
Alliance for Community Trees™.................... 22-23
Tree Campus®................................................ 24-25
Celebrate Arbor Day...................................... 26-27
Arbor Day Farm®........................................... 28-29
#TeamTrees®.................................................. 30-31
Financial Report and Audit............................ 32-42
When we plant trees, we plant the
seeds of peace and the seeds of hope.
—Wangari Maathai
2019-2020 Annual Report 4
Dear Members and Friends,
As I reflect on this past year, I cannot help but In the pages that follow, the story of the
be humbled. So much has been happening Arbor Day Foundation’s unprecedented year
all around us, and yet our members and unfolds. You will find an update on our
supporters have remained committed to the Time for Trees® initiative, where I am happy
importance of the Arbor Day Foundation’s to report that we reached our goal to inspire
mission. And the chorus of people dedicated 5 million tree planters two years ahead of
to using trees as a solution to global issues is schedule. You will see the continued strength
growing — from YouTube stars to corporate of longstanding programs as well as the
executives to school classrooms. Trees have promise of new ones. You will also read about
again shown their ability to unite us this year. the powerful #TeamTrees® movement that
They’ve proven particularly comforting as inspired a new generation of tree planters.
many of us have sought peace and comfort
amid trees during the global pandemic. None of this would be possible without the
dedication of Foundation members and
Together, we were able to plant trees at a partners. Thanks to each of you, the important
historic level. This year more than 40 million work of making our world greener and
trees were planted and distributed — the healthier continues.
equivalent of planting New York City’s
Central Park every 6 hours for an entire With deepest gratitude,
year. Those 40 million trees have the power
to provide us with the necessities of life for
generations to come, the power to create
change amid crisis. Matt Harris
Chief Executive
2019-2020 Annual Report 5
BOARD OF TRUSTEES
Danielle Crumrine Mary Desjardins-Therrien Susan Henricks Ernesto Herrera Mark Johnson
Pittsburgh, PA Toronto, ON Canada Omaha, NE Mexico City, Mexico Scottsdale, AZ
Denise Naguib Robert Ruano Crayton Webb Leslie Weldon
Bethesda, MD Coral Gables, FL Dallas, TX Upper Marlboro, MD
6 Arbor Day Foundation
Dear Members and Friends,
Resiliency has been at the forefront of Throughout this annual report, you will
my mind lately. It is one of those traits find evidence of this resiliency. Stories
about trees that I have always admired. that reflect the consistent and inspiring
I am amazed by a tree’s ability to not work of longstanding Arbor Day
only survive in less than ideal conditions, Foundation programs. Updates on new
but then go on to thrive as it grows. and exciting programs and initiatives
that are reaching new partners and tree
In this way, the Arbor Day Foundation planters. Financials that illustrate the
has much in common with the trees it is strong foundation your loyal membership
dedicated to planting. In the face of all has helped to build.
the adversity of this past year, and like the
giant redwoods that stand up against the It has been an honor to step up to the
California fires, the Foundation stayed role as chair of the Board of Trustees, and
strong — and found ways to thrive. Team I am grateful to each of you for choosing
members came together to overcome the to support a tree planting mission so
challenges of a global pandemic. They close to my heart. Together, we can make
helped communities celebrate Arbor Day tomorrow better through trees.
in new ways, supported planting partners
as they adapted to new strategies, and Sincerely,
found ways to safely open Arbor Day
Farm to visitors looking for a respite
in nature. Foundation members and
supporters also stepped up to inspire
a new level of tree planting that will
provide the necessities of life for all Pat Covey, Chair
people … for generations to come. Board of Trustees
2019-2020 Annual Report 7
Time for Trees ® Initiative 8 Arbor Day Foundation
TREES ARE AN IMPORTANT PART
OF THE SOLUTION TO MANY
CRITICAL ISSUES FACING THE
PLANET AND HUMANKIND.
Trees provide the very necessities of life itself. They clean our air,
protect our drinking water, create healthy communities, and feed
the human soul. But these life necessities are threatened around
the globe.
56,048,771
To address this, we launched an unprecedented undertaking: trees have been planted in
the Time for Trees initiative. Our goals through this initiative the past three years.
are to plant 100 million trees and inspire 5 million tree planters
to help carry our mission forward — all by 2022, the 150th
anniversary of Arbor Day and the 50th anniversary of the
Arbor Day Foundation.
18 corporate partners joined the
Evergreen Alliance, making a long-term
commitment to help us reach our goals.
The 100 million trees will be planted in forests and communities
throughout the U.S. and around the world. We will be restoring
Bank of America Mary Kay
forests affected by wildfires and other natural disasters,
Bass Pro Shops Oncor
distributing trees to those eager to plant in their own yards, and
Brambles | CHEP Procter & Gamble
establishing better urban tree cover so all residents can enjoy the
Church & Dwight PwC
benefits. And along the way, we are working to inspire new tree
Exelon Target
planters of all ages to spread the positive impact even further.
FedEx TD Bank
The Hershey Company UPS
Since the public launch of the initiative in March of 2019,
International Paper Verizon
we have seen tremendous interest in the incredible potential
Marriott International Wyndham Destinations
of trees. Tree planting partners, corporate partners, social media
influencers, and members alike are rallying together with us
to create transformational change through the scale of these
extraordinary goals. And we’re encouraged that more than
5 million tree planters have participated, surpassing our goal
two years early.
If ever there was a time to plant trees, now is that time.
We are inspired by the momentum the Time for Trees initiative
has gained. Together, we are building a better tomorrow …
through trees.
5,852,132
tree planters have been inspired
in the past three years.
2019-2020 Annual Report 9
Trees for America® 10 Arbor Day Foundation
MEMBERS PLANT MILLIONS
OF TREES TO PROVIDE THE VERY
NECESSITIES OF LIFE IN THEIR
COMMUNITIES AND ACROSS
THE COUNTRY. Active members
in 59 states, territories, and military bases
Trees are being planted in neighborhoods throughout the
as well as 38 additional countries.
U.S. through the Trees for America program — providing
critical benefits such as clean air and water, better stormwater
management, natural beauty, and lower urban temperatures. Trees
are also being planted on farms and ranches, protecting soil and
water resources as well as creating new habitat for wildlife.
Every year the Foundation’s members — and potential new
members — are invited to receive 10 free trees through this
program. Each of these trees is directly fulfilling our mission.
And collectively, our members received nearly 3.7 million trees
to plant in their yards and neighborhoods this year. This work is
critical to building healthy communities and inspiring others to
become tree planters.
And these trees will make a tremendous impact. As they grow, 3,697,130 membership
they are estimated to remove nearly 21,400 tons of chemical air trees distributed this year.
pollution, filter nearly 586 tons of particulate matter, sequester
more than 268,000 metric tons of carbon, and intercept more than
262 million cubic meters of what would be wasted water runoff.*
The Arbor Day Foundation is proud to be the largest nonprofit
membership organization dedicated to planting trees. And we are
humbled that more than 1 million members, donors, and partners
share in our commitment to forests, communities, and people.
Of more than 700,000
members, 504,250 also chose to
support the planting of 6,116,822
*U.S. Forest Service analysis based on native-species trees planted in Pennsylvania
trees in forests across the globe.
with a 97% annual survival rate, 3% mortality every year, for 100 years.
2019-2020 Annual Report 11PHOTO CREDIT: TREES FOR THE FUTURE – SENEGAL
Replanting Our Forests
12 Arbor Day FoundationGENERATIONS PAST CARED FOR
OUR FORESTS, PRESERVING
THEM AS OUR HERITAGE. THE
CONSERVATION OF THESE
FORESTS WILL BE OUR LEGACY
FOR THE FUTURE.
Our forests are woven into the fabric of our lives, providing the very
necessities we need to not only survive but thrive — clean air, healthy
drinking water, a tolerable climate, and so much more. But these
majestic lands are threatened by insects, disease, and devastating
wildfires. We are thankful for our dedicated Foundation members, More than 108 million
corporate sponsors, and partners who continue to respond to the trees have been planted since 1990 in
need for replanting. forests across the globe.
This year, the Foundation planted more than 21 million trees in
forests through partnerships with the U.S. Forest Service, the
National Association of State Foresters, and international partners.
Some reforestation work we support is ongoing, spanning several
years due to the critical need for trees. One such project is in
Oregon’s Willamette River Basin, home to two-thirds of the state’s
population. The newly planted trees made possible by Foundation
members and partners will not only protect the watershed supplying
area residents with drinking water but also improve conditions in the
waterways that endangered Chinook salmon rely on for spawning.
And stronger populations of these salmon swimming back to the This year’s
ocean mean a more stable food source for critically endangered reforestation efforts spanned
Southern Resident orcas. 30 states and 33 countries.
Our replanting efforts have also spread to every continent except
Antarctica. A new partnership with Trees for the Future in Senegal is
one example of this growth, as we work with farmers throughout the
Fatick and Kaffrine regions to plant 1 million trees that will create
forest gardens. A variety of fruit and nut trees are being planted to
help restore native landscapes while improving food security and the
livelihoods of families in rural communities.
The generosity of supporters and on-the-ground-partners has made
it possible for our replanting efforts to continue year after year,
revitalizing important forestland for generations to come.
98 individual
reforestation projects were supported
by our members, donors, and partners.
2019-2020 Annual Report 13SIOUX FALLS, SD – 40 -YEAR TREE CITY USA
Tree City USA®
14 Arbor Day FoundationTREE CITIES OF THE WORLD
WITH THE BENEFITS OF With the successful Tree City USA
STRONG AND SUSTAINABLE program as a guide, the Foundation
partnered with the UN Food and
URBAN FORESTRY PROGRAMS, Agriculture Organization to
COMMUNITIES CAN THRIVE. expand our dedication to urban
forestry internationally. The new
The Tree City USA program has strengthened and sustained urban Tree Cities of the World program
forests across the country thanks to support of Foundation members recognizes cities and towns around
the globe committed to ensuring
and partners. From the Gulf of Alaska to the Gulf Coast, nearly 155
that their urban forests and trees
million Americans are living in Tree City USA towns and cities that
are properly maintained, sustainably
pay particular attention to tree planting, management, and care.
managed, and duly celebrated. In its
first year, 68 cities in 17 countries
As a result, these communities enjoy profound environmental received recognition.
and community benefits, including lower urban temperatures,
cleaner air and water, increased property values, lower energy bills,
neighborhood beauty, and civic pride. The program has been the
foundation for city forestry management, and its impact is deep and
far-reaching.
One community committed to its trees is Boise, Idaho. With both
Tree City USA and Tree Cities of the World recognition, this
community has formulated a long-term plan to plant 100,000 trees
in the next 10 years, many on private land. The city has partnered
with the local Treasure Valley Canopy Network to put the plan into
action — increasing tree canopy, improving the environment, and
combating the negative effects of climate change.
In addition to proponents in the city’s Parks and Recreation 3,538 communities (home to
department, this initiative has gotten strong support from the Boise nearly 155 million people) received Tree
City Council. “These trees will provide shade and comfort and City USA designation this year.
support clean air and energy conservation for generations to come,”
said City Council President Elaine Clegg.
In its 44th year, the Tree City USA program is still going strong.
As a sign of its vitality, 89 communities applied for and received
Tree City USA recognition for the very first time this year.
Tree City USA is the framework for urban forests across the country.
Thanks to our members and partners, the program’s impact is broad
and enduring. Within the support of this framework, additional city
foresters and arborists are hired, city budgets include worthwhile
investments in trees, and millions of Americans are taking pride in
community improvement.
95.42% of last year’s Tree
City USA communities applied for
recertification this year.
2019-2020 Annual Report 15Community Tree Recovery TM 16 Arbor Day Foundation
IN THE WAKE OF NATURAL
DISASTERS, NEW TREES
BRING HOPE AND HEALING TO
COMMUNITIES BEGINNING TO
REBUILD.
Trees play a vital role in our communities. So when natural disasters
strike, the loss of trees can be devastating. Damaged buildings and
homes are often covered by insurance — but not the trees. The
Community Tree Recovery program was created out of the great 5.3 million trees distributed
need to replace trees following natural disasters. since the program began in 2005.
Through this program, residents who lost trees in major disasters
caused by wildfires, floods, hurricanes, tornadoes, and insects can
receive free trees to plant in their yards. This work is critical for re-
establishing neighborhood trees ... as well as a sense of community.
The Arbor Day Foundation works with local partners on the ground
to help organize events and to make sure we’re delivering the trees at
a time when the community is ready to replant.
Nearly 5.3 million trees have been distributed through the program
since its beginning. This year, 36 active campaigns were held in 11
states as well as Haiti, the Dominican Republic, and Burundi. The
Coffey Park area of Santa Rosa, California, was one of the many
communities supported through the program. With the pandemic 121 distribution and planting events
preventing the planned tree distribution, the event was reworked into were held for this year’s campaigns.
a tree planting. A local landscaper was contracted, and the trees were
planted along the street where requested. Nina, one of the residents
who received a tree, said, “The trees will be one step closer to making
it home again.”
The beauty of this program is that, time and time again, we bear
witness to the power of trees. They are a sign of life and a vibrant
step toward recovery for entire communities.
106,155 trees were
planted and distributed to community
members at those events.
2019-2020 Annual Report 17Rain Forest Rescue® 18 Arbor Day Foundation
THE FOUNDATION IS WORKING
WITH COMMUNITIES AND FAMILIES
TO PRESERVE AND RESTORE
TROPICAL RAIN FORESTS AND
BUILD BETTER LIVES FOR THE
239,547 pounds
PEOPLE LIVING THERE. of shade-grown Arbor Day® Coffee were
sourced from Colombia, Nicaragua, Peru,
Saving the Earth’s rain forests is a core conservation challenge. The and Honduras this year.
Arbor Day Foundation’s Rain Forest Rescue program is working
with on-location partners on large-scale tree planting, preservation,
and recovery.
An example of this is our ongoing work in the Yucatan Peninsula of
Mexico. Education for local farmers remains paramount, so they can
develop better farming practices that are not only beneficial to the
forest but to the efficiency of their operations as well. Through the
support of Foundation members and partners, the Kaxil Kiuic tree
nursery continues to thrive and provide trees for farmers looking to
put newly learned agroforestry practices into action. In addition to
ensuring that new trees are being planted, the nursery also helps with
ongoing care for the trees.
The Rain Forest Rescue program is also at work in Santa Elena,
Honduras. The rain forest here has faced much adversity, most
1,041,366 trees were
planted in rain forests this year.
recently due to southern pine beetles. The Foundation is not only
working with local coffee producers to purchase their organic, shade-
grown coffee, we are also supporting two local nurseries helping to
restore the forest canopy. In addition to trees, these nurseries are also
providing employment and skills development for residents.
With the help of our members and partners, the Rain Forest Rescue
program has helped to ensure that the trees — and those who care
for them — continue to thrive.
72 Rain Forest Rescue projects
have engaged the Foundation and
our partners in 16 countries since
the program began.
2019-2020 Annual Report 19Energy-Saving Trees®
and Community Canopy TM
20 Arbor Day FoundationHOMEOWNERS ARE
STRATEGICALLY PLANTING
TREES IN PARTNERSHIP WITH
LOCAL UTILITY PROVIDERS,
PUBLIC AGENCIES, AND OTHER
ORGANIZATIONS.
The Arbor Day Foundation’s Energy-Saving Trees and Community
Canopy programs are designed to help utility companies,
municipalities, and corporate organizations distribute trees to their
communities. The core purpose is to lower energy bills, improve air
quality, sequester carbon, and manage stormwater runoff.
50,130 trees were distributed and
Central to the program is an interactive online tool that was planted through the Energy-Saving Trees
created through a Foundation partnership by The Davey Institute, and Community Canopy programs this year.
a division of The Davey Tree Expert Co. The tool uses peer-
reviewed scientific research from the U.S. Forest Service’s i-Tree
software to calculate estimated energy savings over time. People use
the online tool to personally plot their yard as seen from satellite
imagery to select the right tree — provided by their utility provider,
municipality, or other organization — and the right place for
planting that will yield the greatest energy and cost savings.
Once reserved, these trees are either delivered to homes or available
for pickup at events organized by the Energy-Saving Trees or
Community Canopy partner.
This year, working with 55 partners in 35 states across the country, $20,344,214 in
more than 50,000 trees were distributed through these programs. combined energy and community
And 364,261 trees have been distributed and planted through the environmental benefits will be provided by
Energy-Saving Trees and Community Canopy programs since 2011. these trees over 20 years.
For example, in its fifth year of partnership, the City of Orlando
is involved in the Energy-Saving Trees program as a means of
furthering the community’s Green Works Orlando sustainability
initiative. The city collaborates with the local utility company each
spring and fall to distribute more than 1,000 trees to residents to be
planted in their yards for optimal energy savings. Since the spring
of 2015, a total of 11,920 trees have been planted throughout the
city. Collectively, these trees are projected to save 18,610,911 kWh
and provide $4.9 million in environmental benefits over 20 years.
Universally, these programs are providing tremendous benefits —
not only in terms of trees planted but also in energy bill savings 20–50% reduction in energy
and education. used for heating and 30% reduction in air
conditioning needs is possible when trees
are properly placed around homes.
2019-2020 Annual Report 21Alliance for Community Trees
TM
22 Arbor Day FoundationTHIS NATIONWIDE NETWORK
OF LOCAL NONPROFIT TREE
PLANTING ORGANIZATIONS IS
UNITED IN AN EFFORT TO PLANT
TREES FOR A BETTER TOMORROW.
Local impact happens when community-based tree planting
organizations create projects that involve citizens, schools, churches, More than $1.3 million
and government. This is the work of the 160 members of the was directed to member organizations for local
Alliance for Community Trees program. These passionate nonprofit planting projects.
organizations are the boots on the ground — a grass-roots network
united in their purpose of improving communities and towns across
the country with trees.
Never has the dedication of these organizations been more apparent
than this past spring, as the world was gripped by pandemic. One
such group is Green Columbus in Columbus, Ohio. In a community
ranked first in rising urban heat island effect, Green Columbus
has been hard at work to plant trees and curb the issue. Earth Day
Columbus — known as the largest Earth Day volunteer event in
the U.S. — needed to continue in 2020. The health of community
residents depended on it.
63 events were coordinated
With the support of the Arbor Day Foundation and its corporate through this network with support from our
partners, the event was still possible. “For this project we relied on committed corporate partners, allowing greater
professionals and individual experienced volunteer tree planters impact and engagement on a local level.
to plant a total of 31,000 trees,” said Claus Eckert with Green
Columbus. “It was a record year for tree plantings despite a
global pandemic and a statewide shutdown, and the community
accomplished it following health and safety guidelines. A huge thank
you to Verizon and the Arbor Day Foundation for believing in us
and supporting us in this project so that we could make this happen.”
With more than 90% of Americans living and working in towns and
metropolitan areas, the need for informed action on a local level is
greater than ever. The Alliance for Community Trees network is an
integral part of making that happen. These committed organizations
help deliver our shared mission in the communities they serve.
95% of Americans understand the shared
benefits of having more trees in their communities
according to a 2017 survey — inspiration for this
network to keep up the good work.
2019-2020 Annual Report 23Tree Campus® 24 Arbor Day Foundation
COLLEGE CAMPUSES AND
HEALTHCARE FACILITIES ACROSS
THE COUNTRY ARE DEDICATED TO
ESTABLISHING AND MAINTAINING
HEALTHY COMMUNITY FORESTS.
As more focus is being placed on the importance of trees in urban
402 colleges and universities
are recognized as Tree Campus Higher
spaces, the Arbor Day Foundation has sought out opportunities
Education schools.
to support and recognize more organizations that have made a
concerted effort to bring our mission to life. This year we expanded
our Tree Campus program to include healthcare facility campuses as
well as college and university campuses.
Through Tree Campus Higher Ed (formerly Tree Campus USA),
the Arbor Day Foundation continues to recognize two-year
and four-year colleges and universities that practice sound tree
management and care. In its 12th year, the program recognized
402 campuses — including 39 first-time applicants.
Tree Campus Healthcare, in its inaugural year, recognized 16 health
facilities across 12 states — including five community hospitals,
five university hospitals, two rural hospitals, two veterans hospitals,
one children’s hospital, and one residential care facility. The diversity More than 81,000 students
within this network demonstrates how healthcare facilities of all were engaged in service-learning projects
types and sizes are becoming leaders in using trees to improve related to Tree Campus Higher Education.
community health and wellness.
“We are committed to caring not only for our patients but also for
our environment and setting an example for others to follow,” said
Terry Kreiser, Director, Facilities Operations at Penn State Milton S.
Hershey Medical Center, a recognized facility.
To recognize so much dedication is inspiring. We are watching
young adults grow in their respect for conservation and
understanding that the future must include more trees. We are also
witnessing healthcare providers embracing trees as a way to improve
the overall well-being of their communities.
16 healthcare
facilities received Tree Campus Healthcare
recognition in the program’s inaugural year.
2019-2020 Annual Report 25Celebrate Arbor Day 26 Arbor Day Foundation
State Arbor Days
Alabama Last full week in February
Alaska Third Monday in May
Arizona Last Friday in April
AFTER MORE THAN A CENTURY, Arkansas Third Monday in March
California March 7-14
THIS NATIONAL HOLIDAY Colorado Third Friday in April
CONTINUES TO EMBODY THE Connecticut Last Friday in April
Delaware Last Friday in April
IMPORTANCE OF PLANTING TREES. District of Columbia Last Friday in April
Florida Third Friday in January
Georgia Third Friday in February
In 1872, the nation’s first tree planting holiday was celebrated.
Guam Second Tuesday in October
A century later, the Arbor Day Foundation was launched, in large Hawaii First Friday in November
part, to bring the spirit of stewardship to the forefront throughout Idaho Last Friday in April
the year. Illinois Last Friday in April
Indiana Last Friday in April
Iowa Last Friday in April
The Foundation has grown and evolved in the past 48 years, but the
Kansas Last Friday in April
mission remains the same: We inspire people to plant, nurture, and Kentucky First Friday in April
celebrate trees. And with the global issues we face today, our work is Louisiana Third Friday in January
more important than ever. Maine Third full week in May
Maryland First Wednesday in April
Massachusetts Last Friday in April
In the midst of a pandemic, celebrating Arbor Day looked much
Michigan Last Friday in April
different this year than in years past. One thing, however, remained Minnesota Last Friday in April
constant. People were committed to showing their appreciation for Mississippi Second Friday in February
trees. Some planted trees in their yards while others spent time in Missouri First Friday in April
nature. Many communities celebrated online as much as possible, Montana Last Friday in April
Nebraska Last Friday in April
and some cities even encouraged residents to draw or paint trees and
Nevada Last Friday in April
hang them in their windows to share the spirit of Arbor Day with New Hampshire Last Friday in April
neighbors passing by. New Jersey Last Friday in April
New Mexico Second Friday in March
No matter how they celebrated, we wanted them to share it New York Last Friday in April
North Carolina First Friday following March 15
with the world. So the Arbor Day Foundation launched the
North Dakota First Friday in May
#ArborDayAtHome campaign. For each use of the hashtag on Ohio Last Friday in April
social media, we planted a tree in a forest in need — up to 50,000 Oklahoma Last full week in March
trees. The pictures and positive Arbor Day messages spread quickly Oregon First full week in April
Pennsylvania Last Friday in April
through Instagram, Twitter, and Facebook. Then corporate partner
Rhode Island Last Friday in April
Salesforce committed to match our tree pledge, ensuring that two South Carolina First Friday in December
trees would be planted for each hashtag used. South Dakota Last Friday in April
Tennessee First Friday in March
By the end of the National Arbor Day weekend, Texas First Friday in November
Utah Last Friday in April
#ArborDayAtHome and #ArborDay had been posted more than
Vermont First Friday in May
94,000 times. The hashtag campaign alone created 4.1 million social Virgin Islands Last Friday in September
media impressions and a media reach of 97 million. Virginia Last Friday in April
Washington Second Wednesday in April
All in all, it was inspiring to see the strong desire to plant, West Virginia Second Friday in April
Wisconsin Last Friday in April
nurture, and celebrate trees — a passion for conservation and the
Wyoming Last Monday in April
environment that cannot be stopped even in the face of global crisis.
NATIONAL ARBOR DAY
Last Friday in April
2019-2020 Annual Report 27Arbor Day Farm® 28 Arbor Day Foundation
THIS IS WHERE THE FOUNDATION’S
MISSION COMES TO LIFE — 260
ACRES OF NATURAL BEAUTY
AND OUTDOOR EXPLORATION IN
NEBRASKA CITY, NEBRASKA.
Building programs that are high-impact — life-changing, large-scale,
partner-engaging, and sustainable — begins at Arbor Day Farm. The
260-acre National Historic Landmark, part of the original estate of
Arbor Day originator J. Sterling Morton, is where the Arbor Day
Foundation brings its mission to life for visitors year-round.
At Arbor Day Farm’s Tree Adventure attraction, guests experience 26th anniversary
orchards, vineyards, conservation demonstrations, and hands-on of Lied Lodge at Arbor Day Farm.
activities through their own exploration and by guided tours. They
can also tour the carefully preserved home of the Morton family
at Arbor Lodge State Historical Park, owned by the Nebraska
Department of Game and Parks and managed by Arbor Day Farm.
In the spring and fall, visitors can watch team members carefully
package and ship many of the millions of tree seedlings that are
delivered to Foundation members across America.
Lied Lodge at Arbor Day Farm serves as a destination for like minds
from across the country and around the globe to gather and discuss
forestry, conservation, education, and environmental stewardship.
Amid that, you will also find family reunions, business conferences,
weddings, and vacations. It is a truly one-of-a-kind destination that
demonstrates the Foundation’s dedication to trees.
Nearly 45,000 visitors
explored the Arbor Day Farm Tree
This year Arbor Day Farm added a new way for guests of all ages to
Adventure and Arbor Lodge State
experience nature. Known as Treetop Village®, this 3-acre attraction
Historical Park this year.
is the only place in America where you can clamber into the treetops
to explore 11 different treehouses connected by more than 800 feet
of unique bridges and netted walkways. This attraction was designed
specifically for Arbor Day Farm and is the first of its kind to be
completed in the U.S. In addition, the Farm is the first in North
America to feature the WonderNet, a large, elevated span of netting
specifically designed for jumping and playing. Areas of Treetop
Village are also specifically designed to be ADA-compliant —
ensuring that the experience is engaging for all.
We are grateful for the support of our members and partners in
helping position Arbor Day Farm to fulfill our mission of inspiring
people to plant, nurture, and celebrate trees. 30,270 room nights were
spent at Lied Lodge, as guests connected
with nature.
2019-2020 Annual Report 29#TeamTrees® 30 Arbor Day Foundation
WHAT STARTED AS A CALLOUT
ON THE SOCIAL MEDIA PLATFORM
REDDIT QUICKLY TURNED INTO
AN ENVIRONMENTAL FORCE,
DRIVEN BY A NEW AUDIENCE
OF TREE PLANTERS.
In the fall of 2019, #TeamTrees — a collective effort with YouTube
content creators to inspire support for tree planting around the $21.5 million
globe — took social media by storm. YouTube influencers MrBeast was raised by January 1, 2020.
( Jimmy Donaldson, widely followed for his creative philanthropy)
and Mark Rober (former NASA scientist) formed a unique
partnership with the Arbor Day Foundation to raise $20 million
between October 25, 2019, and January 1, 2020. Each dollar raised
would plant a tree, and trees would be planted on every continent
except Antarctica.
Hundreds of other content creators on YouTube and other social
platforms were recruited to help lead the charge, and everyone
involved developed unique content to drive their viewers to donate
on TeamTrees.org in support of tree planting.
The campaign was one of the fastest-growing environmental
fundraising initiatives to date and the largest crowdfunding effort in More than 800,000
YouTube’s history. Within the first 24 hours, donations reached more individual donors supported the
than $3.5 million. Just 48 hours after launch, more than $5 million #TeamTrees planting efforts.
had been donated. The $20 million goal was reached on
December 19, and the ticker continued to climb. As of January 1, the
#TeamTrees campaign had raised more than $21.5 million for tree
planting around the globe.
More than 800,000 people from around the world — everyone from
Elon Musk to third grade classrooms — were inspired to “join the
team” and help plant trees. Individual donations varied from $1 to
$1,000,001.
The fundraising effort, however, was only the beginning. Through
December 2022, the Foundation will be planting trees throughout
North America, South America, Europe, Asia, Africa, and Australia.
4.6 million
The first trees were
planted as of June 30, 2020 — part of
the 22 million to be planted by 2022.
2019-2020 Annual Report 31FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2020, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2019
The Board of Trustees on the effectiveness of the entity’s internal auditing procedures applied in the audit
National Arbor Day Foundation control. Accordingly, we express no such of the financial statements and certain
d/b/a Arbor Day Foundation opinion. An audit also includes evaluating additional procedures, including comparing
Lincoln, Nebraska the appropriateness of accounting policies and reconciling such information directly to
used and the reasonableness of significant the underlying accounting and other records
Report on the Financial Statements accounting estimates made by management, used to prepare the financial statements or
We have audited the accompanying as well as evaluating the overall presentation to the financial statements themselves, and
financial statements of National Arbor Day of the financial statements. other additional procedures in accordance
Foundation d/b/a Arbor Day Foundation, We believe that the audit evidence we have with auditing standards generally accepted
which comprise the statement of financial obtained is sufficient and appropriate to in the United States of America. In our
position as of June 30, 2020, and the related provide a basis for our audit opinion. opinion, the Schedule of Expenditures
statements of activities, functional expenses, of Federal Awards is fairly stated in all
and cash flows for the year then ended, and Opinion material respects in relation to the financial
the related notes to the financial statements. statements as a whole.
In our opinion, the financial statements
Management’s Responsibility for referred to above present fairly, in all Emphasis of Matter
material respects, the financial position
the Financial Statements As discussed in Note B to the financial
of National Arbor Day Foundation d/b/a
Management is responsible for the statements, in 2020, the entity adopted
Arbor Day Foundation as of June 30, 2020,
preparation and fair presentation of these new accounting guidance ASU 2014-09,
and the changes in its net assets and its cash
financial statements in accordance with Revenue from Contracts with Customers,
flows for the year then ended in accordance
accounting principles generally accepted ASU 2018-08, Clarifying the Scope and the
with accounting principles generally
in the United States of America; this accepted in the United States of America. Accounting Guidance for Contributions
includes the design, implementation, and Received and Contributions Made, and
maintenance of internal control relevant Report on Summarized ASU 2018-13, Fair Value Measurement
to the preparation and fair presentation Comparative Information (Topic 820): Disclosure Framework –
of financial statements that are free from Changes to the Disclosure Requirements for
We have previously audited National Fair Value Measurement. Our opinion is not
material misstatement, whether due to fraud
Arbor Day Foundation d/b/a Arbor Day modified with respect to this matter.
or error.
Foundation’s June 30, 2019 financial
Auditor’s Responsibility statements, and we expressed an unmodified Other Reporting Required by Government
audit opinion on those audited financial Auditing Standards
Our responsibility is to express an opinion statements in our report dated October
on these financial statements based on our In accordance with Government Auditing
23, 2019. In our opinion, the summarized
audit. We conducted our audit in accordance Standards, we have also issued our
comparative information presented herein
with auditing standards generally accepted as of and for the year ended June 30, 2019 is report dated October XX, 2020, on our
in the United States of America and the consideration of National Arbor Day
consistent, in all material respects, with the
standards applicable to financial audits Foundation d/b/a Arbor Day Foundation’s
audited financial statements from which it
contained in Government Auditing has been derived. internal control over financial reporting and
Standards, issued by the Comptroller on our tests of its compliance with certain
General of the United States. Those Other Matter provisions of laws, regulations, contracts and
standards require that we plan and perform grant agreements and other matters. The
Our audit was conducted for the purpose
the audit to obtain reasonable assurance purpose of that report is solely to describe
of forming an opinion on the financial
about whether the financial statements are the scope of our testing of internal control
statements as a whole. The accompanying
free from material misstatement. over financial reporting and compliance
Schedule of Expenditures of Federal
and the results of that testing, and not to
An audit involves performing procedures Awards is presented for purposes of
provide an opinion on the effectiveness
to obtain audit evidence about the amounts additional analysis as required by the
of National Arbor Day Foundation d/b/a
and disclosures in the financial statements. audit requirements of Title 2 U.S. Code
Arbor Day Foundation’s internal control
The procedures selected depend on the of Federal Regulations (CFR) Part 200,
over financial reporting or on compliance.
auditor’s judgment, including the assessment Uniform Administrative Requirements,
That report is an integral part of an audit
of the risks of material misstatement of the Cost Principles, and Audit Requirements
performed in accordance with Government
financial statements, whether due to fraud for Federal Awards (Uniform Guidance),
Auditing Standards in considering National
or error. In making those risk assessments, and is not a required part of the financial
Arbor Day Foundation d/b/a Arbor Day
the auditor considers internal control statements. Such information is the
Foundation’s internal control over financial
relevant to the entity’s preparation and fair responsibility of management and was
reporting and compliance.
presentation of the financial statements in derived from and relates directly to the
order to design audit procedures that are underlying accounting and other records Lincoln, Nebraska
appropriate in the circumstances, but not used to prepare the financial statements. October 28, 2019
for the purpose of expressing an opinion The information has been subjected to the
32 Arbor Day FoundationSTATEMENT OF FINANCIAL POSITION
YEAR ENDED JUNE 30, 2020, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2019
ASSETS 2020 2019
CURRENT ASSETS
Cash and cash equivalents (notes A and F) $ 11,624,967 $ 2,008,809
Certificates of deposit 11,114,973 -
Investments (notes A, C, F and O) 7,839,276 7,837,468
Accounts receivable, net of allowance of $350,000 (2020) 395,254 1,447,112
and $0 (2019) (note A)
Unconditional promises to give (note A) 4,422,443 2,715,074
Grants receivable (note A) 436,813 597,771
Prepaid expense 1,315,715 519,109
Inventory (notes A and D) 5,274,737 4,129,434
Total current assets 42,424,178 19,254,777
PROPERTY AND EQUIPMENT, net (notes A and E) 29,088,873 28,736,696
OTHER ASSETS
Restricted cash 1,187,832 1,178,106
Assets held for deferred compensation plan 34,098 17,159
Intangible asset 31,467 -
Construction in progress 21,581 822,421
Contributions receivable from charitable trusts (notes F and O) 29,916 30,139
Total assets $ 72,817,945 $ 50,039,298
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable $ 2,180,946 $ 1,930,124
Accrued expenses (note A) 11,525,486 4,726,805
Current maturities of long-term obligations (note H) 1,021,135 672,520
Conditional contributions (note A) 4,613,169 3,181,746
Deferred revenue (note A) 79,185 -
Total current liabilities 19,419,921 10,511,195
LONG-TERM OBLIGATIONS
Conditional contributions (note A) - 571,429
Long-term obligations, net of current maturities (note H) 1,643,165 20,373
Total long-term obligations 1,643,165 591,802
OTHER LIABILITIES
Annuities payable (notes F and O) 895,500 732,991
Total liabilities 21,958,586 11,835,988
NET ASSETS (notes A and I)
Without donor restrictions
Undesignated 40,579,722 27,704,048
Designated 9,410,362 9,431,154
With donor restrictions 869,275 1,068,108
Total net assets 50,859,359 38,203,310
Total liabilities and net assets $ 72,817,945 $ 50,039,298
See accompanying notes to financial statements.
2019-2020 Annual Report 33STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2020, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2019
2020 2019
WITHOUT DONOR WITH DONOR
CHANGES IN NET ASSETS RESTRICTIONS RESTRICTIONS TOTAL TOTAL
REVENUE AND SUPPORT
Membership dues $ 13,713,943 $ - $ 13,713,943 $ 14,001,349
Contributions 52,690,027 169,315 52,859,342 25,126,373
Trees for America 4,539,579 - 4,539,579 4,763,456
Program grant income (note J) 2,581,167 - 2,581,167 1,927,723
Arbor Day Farm income 7,327,700 - 7,327,700 9,426,800
Rain Forest Rescue income 1,976,806 - 1,976,806 3,210,969
Other income (note K) 1,915,074 (235,397) 1,679,677 1,676,257
Net assets released from restrictions (note A) 132,751 (132,751) - -
Total revenue and support 84,877,047 (198,833) 84,678,214 60,132,927
EXPENSES
PROGRAM SERVICES
Tree City USA 1,357,791 - 1,357,791 1,159,578
Arbor Day/Youth Education 1,484,684 - 1,484,684 2,965,839
Rain Forest Rescue 3,847,044 - 3,847,044 4,789,764
Trees for America 37,882,482 - 37,882,482 22,989,138
Arbor Day Farm 11,161,641 - 11,161,641 11,825,022
Conference programs 820,720 - 820,720 632,759
SUPPORTING ACTIVITIES
General and administrative 6,478,094 - 6,478,094 6,367,102
Membership development 5,374,721 - 5,374,721 4,906,077
Fundraising 3,560,540 - 3,560,540 3,483,591
Total expenses 71,967,717 - 71,967,717 59,118,870
INCREASE (DECREASE) IN NET ASSETS 12,909,330 (198,833) 12,710,497 1,014,057
Net assets, beginning of year 37,135,202 1,068,108 38,203,310 37,189,253
CUMULATIVE EFFECT OF ADOPTION
(54,448) - (54,448) -
OF ASC 606 (NOTE B)
Net assets, beginning of year as restated 37,080,754 1,068,108 38,148,862 37,189,253
Net assets, end of year $ 49,990,084 $ 869,275 $ 50,859,359 $ 38,203,310
See accompanying notes to financial statements.
2% Rain Forest Rescue income 2% Other income 1% Conference programs 9% General and administrative
9% Arbor Day Farm income 16% 7% Membership development
3% Program grant income
Membership dues
16%
Arbor Day
5% Trees for America Farm 5% Fundraising
2% Tree City USA
2% Arbor Day/Youth Education
5% Rain Forest Rescue
63% 53%
Contributions Trees
for America
2020 REVENUE 2020 EXPENSES
34 Arbor Day FoundationSTATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2020, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2019
2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from revenue and support $ 84,651,895 $ 57,685,838
Cash paid to employees and suppliers (63,801,268) (58,314,864)
Interest received 211,736 153,068
Interest paid (16,455) (40,635)
Net cash provided (used) by operating activities 21,045,908 (516,593)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of certificates of deposit (11,096,841) -
Purchase of investments (193,180) (105,811)
Proceeds from the sale of investments 155,662 137,113
Purchase of property and equipment (2,136,687) (2,756,954)
Net cash used by investing activities (13,271,046) (2,725,652)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on long-term obligations 2,664,300 -
Principal payments on capital lease (692,893) (647,594)
Payments on annuities (120,385) (137,113)
Net cash provided (used) by financing activities 1,851,022 (784,707)
Net increase in cash, cash equivalents, and restricted cash 9,625,884 (4,026,952)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR 3,186,915 7,213,867
Cash, cash equivalents, and restricted cash, end of year $ 12,812,799 $ 3,186,915
ADJUSTMENTS TO RECONCILE INCREASE IN NET ASSETS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Increase in net assets $ 12,710,497 $ 1,014,057
Adjustments to reconcile increase in net assets to net cash provided (used) by operating activities≠
Depreciation 2,485,429 2,326,862
Reinvested interest (18,132) -
Bad debt write off 361,285 -
Investment loss 191,595 324,922
Actuarial loss on annuities 72,689 83,033
Decrease in contributions for annuity liabilities 54,543 23,889
Donated property and equipment - (29,101)
(Increase) decrease in assets
Accounts receivable 690,573 67,568
Unconditional promises to give (1,707,369) (1,452,937)
Grants receivable 160,958 (57,415)
Prepaid expense (796,606) (172,343)
Inventory (1,145,303) (1,767,937)
Assets held for deferred compensation plan (16,939) (17,159)
Increase (decrease) in liabilities
Accounts payable 319,276 (65,367)
Accrued expenses 6,798,681 442,156
Conditional contributions 859,994 (665,392)
Deferred revenue 24,737 (571,429)
Total adjustments to increase in net assets 8,335,411 (1,530,650)
Net cash provided (used) by operating activities $ 21,045,908 $ (516,593)
SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION:
Noncash investing activities
Accounts payable assumed for property and equipment purchases $161,844 $230,298
In-kind donations of property and equipment - $29,101
Cash, cash equivalents, and restricted cash reported within the statements of financial position
that sum to the total of the same such amounts shown above include:
Cash and cash equivalents $ 11,624,967 $ 2,008,809
Restricted cash 1,187,832 1,178,106
Cash, cash equivalents, and restricted cash $ 12,812,799 $ 3,186,915
2019-2020 Annual Report 35STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED JUNE 30, 2020, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2019
PROGRAM SERVICES PROGRAM SERVICES SUPPORTING ACTIVITIES
Arbor Day/Youth Rain Forest Trees for Conference Total Program General and Member
Tree City USA Arbor Day Farm Fundraising 2020 Totals 2019 Totals
Education Rescue America Programs Services Administrative Development
Salaries, payroll taxes and employee
benefits (note M) $ 551,846 $ 193,371 $ 422,997 $ 3,364,079 $ 5,053,919 $ 128,780 $ 9,714,992 $ 3,960,440 $ 886,685 $ 1,070,689 $ 15,632,806 $ 15,886,866
Contract labor 1,000 111,379 - 100,246 175,563 - 388,188 19,707 - - 407,895 200,852
Advertising and promotion (note A) 31,850 10,400 15,148 203,535 306,245 181 567,359 168,559 348 6,762 743,028 1,425,371
Printing, publications, mailing, and
199,802 572,690 1,451,092 3,081,895 168,800 251 5,474,530 100,116 1,660,206 1,209,165 8,444,017 8,525,554
photography
Travel and mileage 18,469 50,850 24,661 146,230 59,184 22,518 321,912 107,362 10,883 140,561 580,718 789,955
Professional services 66,890 119,191 8,690 1,221,213 143,657 83,389 1,643,030 283,708 86,793 46,218 2,059,749 1,689,664
Recognition material 1,199 100 259 1,558 7,108 - 10,224 12,126 - 814 23,164 21,505
Professional development 544 92 216 3,935 7,836 22 12,645 31,805 - 6,298 50,748 54,394
Taxes 1,264 1,262 564 5,373 274,575 88 283,126 40,796 6,897 10,113 340,932 356,468
Repairs and maintenance 4,371 23,310 4,473 9,174 372,617 - 413,945 108,339 136,001 26,712 684,997 615,723
Tree purchases and shipping expenses 58,799 32,729 38,917 5,983,363 - - 6,113,808 - 1,571 110 6,115,489 5,743,243
Reforestation expenses - - - 14,246,897 203 - 14,247,100 - - - 14,247,100 4,211,903
Rain forest preservation - - 18,934 - - - 18,934 - - - 18,934 17,756
Inventory purchases 239,676 101,252 1,143,726 - 1,209,243 - 2,693,897 13,709 - 199,868 2,907,474 4,136,618
Computer services 47,512 683 80 295,045 78,861 - 422,181 549,166 992 23,403 995,742 762,742
Bank charges 182 252 573 837,357 155,148 2,882 996,394 32,522 - 543 1,029,459 508,041
Insurance 1,320 1,320 6,237 1,907 207,208 425 218,417 71,851 8,202 8,066 306,536 303,191
Telephone and utilities 6,843 5,543 4,715 72,430 591,655 454 681,640 21,550 30,646 38,874 772,710 767,336
Postage 99,120 219,729 328,632 1,051,000 123,724 968 1,823,173 17,004 2,399,220 636,197 4,875,594 4,700,159
Office supplies 1,477 491 561 8,042 12,606 1,283 24,460 32,752 2,659 3,126 62,997 69,602
Operating supplies 1,381 1,889 8,363 8,490 493,701 382,255 896,079 50,201 3,685 6,883 956,848 892,671
Dues and subscriptions 2,020 7,424 3,582 58,803 15,061 760 87,650 21,519 4,396 18,038 131,603 98,374
Interest expense - - - - 10,809 - 10,809 5,646 - - 16,455 39,442
Bad debts - - 351,157 2,224 571 - 353,952 7,333 - - 361,285 16,765
Rental expense (note L) 23 - - 5,214 53,883 60,846 119,966 43,741 - - 163,707 150,413
Depreciation (note E) 17,453 17,453 8,865 48,649 1,573,084 - 1,665,504 604,808 108,459 106,658 2,485,429 2,326,862
Subsidies for community tree planting - 11,356 - 1,242,336 - - 1,253,692 - - - 1,253,692 2,356,392
initiatives
Reforestation carbon credits - - - 5,878,083 - - 5,878,083 - - - 5,878,083 2,193,576
Miscellaneous 4,750 1,918 4,602 5,404 66,380 135,618 218,672 173,334 27,078 1,442 420,526 257,432
Total Expenses $ 1,357,791 $ 1,484,684 $ 3,847,044 $37,882,482 $ 11,161,641 $ 820,720 $ 56,554,362 $ 6,478,094 $ 5,374,721 $ 3,560,540 $ 71,967,717
Total Expenses June 30, 2019 $ 1,159,578 $ 2,965,839 $ 4,789,764 $ 22,989,138 $ 11,825,022 $ 632,759 $ 44,362,100 $ 6,367,102 $ 4,906,077 $ 3,483,591 $ 59,118,870
NOTES TO FINANCIAL STATEMENTS
THE NATIONAL ARBOR DAY FOUNDATION d/b/a Arbor Day when the stipulated purpose for which the resource was restricted has been
Foundation (the Foundation) was incorporated under the Nebraska Nonprofit fulfilled, or both, and are reported in the statements of activities as net assets
Corporation Act on September 3, 1971. The purpose of the Foundation is to engage released from restrictions.
in educational and charitable activities including officially promoting the annual
Contributions restricted by donors received in the same period when the
observance of Arbor Day; inspiring people to plant, nurture, and celebrate trees;
associated stipulated time or purpose restriction is accomplished are reported
stimulating a world-wide program of tree and horticultural planting and care;
as increases in net assets without donor restrictions. All other donor-restricted
advancing nature education and environmental education; and maintaining Arbor
contributions are reported as increases in net assets with donor restrictions,
Day Farm, the estate of J. Sterling Morton, the founder of the Arbor Day holiday.
depending on the nature of the restrictions.
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents. For purposes of the statement of cash flows, the
Method of Accounting. The accompanying financial statements have been Foundation considers all highly liquid investments with an original maturity of three
prepared on the accrual basis of accounting. months or less to be cash equivalents.
Net Asset Classification. Net assets, revenues, gains, and losses are classified based Investments. Investments in marketable securities with readily determinable fair
on the existence or absence of donor or grantor imposed restrictions. Accordingly, values and all investments in debt securities are reported at their fair values in the
net assets and changes therein are classified and reported as follows: statement of financial position. Unrealized gains and losses are included in the
statement of activities. Donated securities are recorded as contributions equal to the
Without donor restrictions. Net assets available for use in general operations fair market value of the securities at the date of gift.
and not subject to donor or grantor restrictions. The governing board has
designated, from net assets without donor restrictions, net assets for an operating Accounts Receivable. Accounts receivable are stated at the amount management
reserve and board-designated endowment. expects to collect from outstanding balances. Management provides for probable
uncollectible amounts through a charge to earnings and a credit to a valuation
With donor restrictions. Net assets subject to donor- or grantor-imposed allowance based on its assessment of the current status of individual accounts. Balances
restrictions. Some donor-imposed restrictions are temporary in nature, such that are still outstanding after management has used reasonable collection efforts
as those that will be met by the passage of time or other events specified by the are written off through a charge to the valuation allowance and a credit to accounts
donor. Other donor-imposed restrictions are perpetual in nature, where the donor receivable. Changes in the valuation allowance have not been material to the financial
stipulates that resources be maintained in perpetuity. Gifts of long-lived assets statements.
and gifts of cash restricted for the acquisition of long-lived assets are recognized
as revenue when the assets are placed in service. Donor-imposed restrictions are Accounts receivable due from customers are uncollateralized customer obligations
released when a restriction expires, that is, when the stipulated time has elapsed, due under normal trade terms either due upon receipt or requiring payment within
36 Arbor Day FoundationNOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Vacation. The Foundation’s vacation pay policy allows full-time employees
CONTINUED 80 hours of vacation time for the first year of full-time employment, increasing
each year of employment up to a maximum of 160 hours per year after 10 years of
30 days from the invoice date. Accounts receivable are stated at the amount billed
employment. Vacation time is also available on a pro-rata basis for regular part-
to the customer. The Foundation does not charge interest on overdue customer
time employees. Up to 160 hours of accrued vacation time may be carried into a
account balances. Payments of accounts receivable are allocated to the specific
new calendar year but no more than 160 hours may be accumulated and unused
invoices identified on the customer’s remittance advice or, if unspecified, are applied
at anytime. All accumulated vacation time is paid out upon termination. Accrued
to the earliest unpaid invoices.
vacation for the years ended June 30, 2020 and 2019 was $590,457 and $512,610,
Grants Receivable. Grants receivable are stated at the amount management expects respectively.
to collect from balances outstanding at year-end. Based on management’s assessment
Contract Balances. Contracts assets represent the Foundation’s right to
of the credit history of grantors having outstanding balances and current relationships
consideration in exchange for services that have been transferred to the customer
with them, it has concluded that realization losses on balances outstanding at year-end
before payment is due. Contract liabilities include consideration due or paid by
will be immaterial.
a customer prior to when the Foundation transfers services and represent the
Revenue Recognition. The following is a description of the Foundation’s principal Foundation’s obligation to the customer. The Foundation refers to contract assets
sources of revenue: and contract liabilities as accounts receivable and deferred revenue on the statement
Government and Other Grants. The Foundation is the recipient of federal, of financial position.
state, and local grants to fund its primary programs. Grants consist primarily of Leases. Assets which are acquired by lease-purchase agreements and meet the
conditional grants, that is, those with a measurable performance or other barrier, criteria of a capital lease are recorded as assets and obligations at the lesser of the
and a right of return. Grants are not recognized until the conditions on which following:
they depend have been substantially met. The federal, state and local grants are
(1) An amount equal to the present value, at the beginning of the lease term,
conditioned upon the incurrence of allowable qualifying expenses. Grants are
of minimum lease payments during the lease term, excluding that portion
recorded as revenue when the related approved expenditures are made. Unearned
of the payments representing executory costs to be paid by the lessor,
grant revenue represents advances of grant funds received prior to the incurrence of
together with any profit thereon.
related costs by the Foundation.
(2) Fair value of the leased property at the inception of the lease.
Contributions. Contributions are recognized when a donor makes a promise
to give that is, in substance, unconditional. Conditional promises to give, that is, Rental payments under agreements which meet the criteria of an operating lease are
those with a measurable performance or other barrier, and a right of return, are not expensed when paid.
recognized until the conditions on which they depend have been substantially met.
Advertising. The Foundation expenses advertising as incurred. Advertising
Conditional contributions received prior to the satisfaction of significant conditions
expense for the years ended June 30, 2020 and 2019 was $743,028 and $1,425,371,
are recognized as liabilities on the statement of financial position.
respectively.
Sales of Goods or Services. Fees charged to program users are recognized
Shipping and Handling Costs. The Foundation records the freight billed to
at a point in time as the Foundation satisfies its performance obligations by
customers as sales revenue and the related freight costs as cost of goods sold.
transferring program goods or services to users. The Foundation’s primary fees
relate to conference revenue, tree sales, Arbor Day Farm revenues (food, beverage, Functionalized Expenses. The costs of providing various programs and other
merchandise, activity and hotel/conference center rentals), and Rain Forest Rescue activities have been summarized on a functional basis in the Statement of
revenues, in which program users simultaneously consume and receive benefits. Activities and in the Statement of Functional Expenses. Accordingly, certain
Any program fees prepaid by users are accounted for as deferred revenue until the costs have been allocated among the programs and supporting services benefited.
Foundation satisfies its obligations to provide the related program goods or services. The expenses that are allocated include occupancy, depreciation and property
insurance, which are allocated on a square footage basis, as well as salaries and
The Foundation records the freight billed to customers as sales revenue and the
wages, benefits, payroll taxes, professional services, office expenses, information
related freight costs as cost of goods sold.
technology, interest, insurance and other, which are allocated on the basis of
The Foundation collects sales tax from all nonexempt customers at the rate in effect estimates of time and effort.
in the state where the delivery occurs if the Foundation has nexus in the state. The
Fair Value Measurements. The Financial Accounting Standards Board has
Foundation’s accounting policy is to exclude the tax collected from revenue and
issued guidance defining fair value, establishing a framework for measuring fair
remit the balance to the appropriate state.
value and expanding disclosures about fair value measurements. Fair value is the
Membership Dues. Dues are charged to members based on the length of time an price that would be received to sell an asset or paid to transfer a liability in an
individual has been a member and the length of the memberships. Some members, orderly transaction between market participants at the measurement date. The
based upon the level of membership, receive trees as a part of their membership, Foundation utilizes a fair value hierarchy to prioritize the inputs to valuation
thus membership dues are split with a portion recognized when received as a techniques used to measure fair value. The hierarchy gives the highest priority
contribution and the remaining balance deferred until the trees are shipped to the to unadjusted quoted prices in active markets for identical assets or liabilities
member. (level 1 measurements) and the lowest priority to unobservable inputs (level 3
measurements).
Inventory. Inventory is stated at the lower of cost or net realizable value determined
by the first-in, first-out method. The three levels of the fair value hierarchy are described as follows:
Property and Equipment and Depreciation. Property and equipment are carried Level 1 Inputs to the valuation methodology are unadjusted quoted
at cost, if purchased, and at fair market value at the date of contribution, if received prices for identical assets or liabilities in active markets that the
by donation, less accumulated depreciation. Depreciation is provided for in amounts Foundation has the ability to access.
sufficient to relate the cost of depreciable assets to operations over their estimated useful
Level 2 Inputs to the valuation methodology include:
lives computed primarily on the straight-line method. It is the Foundation’s policy to
capitalize property and equipment with a cost of $5,000 or more and an estimated • quoted prices for similar assets or liabilities in
useful life of greater than one year. The cost of routine maintenance and repairs is active markets;
charged to expense as incurred; significant renewals and betterments are capitalized. • quoted prices for identical or similar assets or liabilities in
The estimated lives by asset class follow: inactive markets;
Buildings 5-50 years • inputs other than quoted prices that are observable for the
Leasehold improvements 20 years asset or liability;
Farm improvements 5-32 years • inputs that are derived principally from or corroborated by
Orchards 5-20 years observable market data by correlation or other means.
Computer hardware 5-10 years If the asset or liability has a specified (contractual) term, the level 2 input must be
Lied Lodge and Conference Center observable for substantially the full term of the asset or liability.
equipment and improvements 3-30 years Level 3 Inputs to the valuation methodology are unobservable and
Furniture and equipment 5-30 years significant to the fair value measurement.
Computer software 5-10 years
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