CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended · 2019-07-21 · COMMONWEAL AND THE HALE...

COMMONWEAL AND THE HALE FUND (SUPPORTING ORGANIZATION)

CONSOLIDATED FINANCIAL STATEMENTS

For the Years Ended June 30, 2015 and 2014

TABLE OF CONTENTS

Independent Auditors' Report

Consolidated Financial Statements

Consolidated Statements of Financial Position

Consolidated Statements of Activities

Consolidated Statements of Cash Flows

Consolidated Statements of Functional Expenses

Notes to Consolidated Financial Statements

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Bregante. CompanY-LLP CERTifiED PUBLIC ACCOUNTANTS

Building Service Pm·tnerships Since 1976

Independent Auditors' Report

Board of Directors Commonweal and The Hale Fund (supporting organization)

We have audited the accompanying consolidated financial statements of Commonweal (a nonprofit organization) and The Hale Fund (supporting organization), which comprise the consolidated statements of financial position as of June 30, 2015 and 2014, and the related consolidated statements of activities, cash flows, and functional expenses for the years then ended, and the related notes to the consolidated financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these consolidated 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 audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 ofthe consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Commonweal and The Hale Fund (supporting organization) as of June 30, 2015 and 2014, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. LLP Novato, California _J:) ~+ ~ ~ December 14, 20 15 \ CJ -------'----------~-- www.bcocpa.com -----------------

301 Battery Street • 2 Mezzanine San Francisco, CA 94111

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

June 30,2015 and 2014

2015 2014

ASSETS Current assets:

Cash and cash equivalents $ 738,960 $ 869,482 Grants and contributions receivable, net 1,276,063 1,742,151 Program fees receivable 33,422 38,973 Investments 3,215,549 457,303 Investments - other 2,302,632 5,072,154 Prepaid expenses and other assets 54,316 50,226 Property and equipment, net 403 134 444 951

Total assets $ 8,024,076 $ 8,675,240

LIABILITIES AND NET ASSETS

Current liabilities: Accounts payable and accrued expenses $ 163,330 $ 129,686 Accrued compensated absences 106,608 97,820 Deferred revenue 33 ,983 7 1 325

Total current liabilities 303,921 298,831

Net assets: Unrestricted:

Board designated - general 278,703 281,642 Board designated - maintenance 177,248 165,088 Board designated - real estate 1,800,000 1,800,000 Undesignated 3,420,157 3,403,434

Total unrestricted 5,676,108 5,650,164

Temporarily restricted 2,044,047 2,726,245

Total net assets 7,720,155 8,376,409

Total liabilities and net assets $ 8,024,076 $ 8,675,240

See accompanying notes to the financial statements.

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CONSOLIDATED STATEMENTS OF ACTIVITIES

For the Years Ended June 30,2015 and 2014

2015 2014

Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted

Revenue and support: Grants and contributions $ 114,885 $ 2,335,727 $ 2,450,612 $ 179,054 $ 3,882,705 Contributed goods and services 3,185 450 3,635 8,500 4,500 Program fees 701,908 701,908 510,984 Investment income (loss), net (31,910) (31,910) 78,472 Other income 47,229 47,229 28,015 Net assets released from restrictions 3,018,375 (3.0 18,375) 2,571,565 (2,571 ,565)

Total revenue and support 3,853,672 (682,198)- 3,171,474 3,376,590 1,315,640

Expenses: Program 3,073,637 3,073,637 2,922,854 Management and general 510,299 510,299 494,855 Fundraising 243,792 243,792 138,827

Total expenses 3,827,728 3,827,728 3,556,536

Changes in net assets 25,944 (682 198) (656,254) (I 79,946) 1,315,640

Net assets, beginning of year 5,650,164 2.726,245 8,376,409 5,830,110 1.410,605

Net assets, end of year $ 5,676,108 $ 2,044,047 $ 7,720,155 $ 5,650,164 $ 2,726,245


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Total

$ 4,061,759 13,000

510,984 78,472 28,015

4,692,230

2,922,854 494 855 138,827

3,556,536

1,135 694

7,?40,715

$ 8,376,409


CONSOLIDATED STATEMENTS OF CASH FLOWS


2015 2014

Cash flows from operating activities: Changes in net assets $ (656,254) $ 1,135,694 Adjustments to reconcile changes in net assets to net

cash used by operating activities: Depreciation and amortization 69,652 70,697 Gain on sale of fixed assets (825) Net realized and unrealized (gains) losses on investments 75,928 (33,515) (Increase) decrease in assets:

Grants and contributions receivable 466,088 (1,375,779) Program fees receivable 5,551 (1,989) Prepaid expenses and other assets (4,090) 14,529

Increase (decrease) in liabilities: Accounts payable and accrued liabilities 33,644 281 Accrued liabilities 8,788 22,256 Deferred revenue (37,342) 58,076

Total adjustments 617,394 (1,245,444)

Net cash used by operating activities (38,860) (109,750)

Cash flows from investing activities: Net change in investments and investments - other (64,652) 282,151 Proceeds from sale of property and equipment 4,010 Purchases of property and equipment (31,020) (64,789)

Net cash provided (used) by investing activities (91 ,662) 217,362

Net increase (decrease) in cash (130,522) I 07,612

Cash, beginning of year 869,482 761,870

Cash, end of year $ 738l960 $ 869,482


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Salaries and benefits Consultants and contractors Occupancy Conferences and workshops Office Depreciation and amortization Supplies Maintenance and repairs Insurance Professional fees Dues and fees Donated goods and services Advertising Grants and awards

Total expenses


CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES


2015

Program Program Services Administrative Fundraising Total Services Administrative

$ 1,604,663 $ 371,969 $ 155,891 $ 2,132,523 $ 1,625,482 $ 363,990 775,469 24,566 29,136 829,171 722,280 18,845 213,603 6,957 5,833 226,393 181,649 14,986 209,633 2,726 15,856 228,215 163,438 493

88,209 18,839 25,690 132,738 68,257 8,046 33,929 34,631 1,092 69,652 32,613 37,335 51,535 5,754 2,229 59,518 47,009 6,772 41,396 7,791 887 50,074 32,442 6,311 23,242 13,570 1,689 38,501 22,944 11,330

8,451 21,985 583 31,019 5,076 25,461 17,395 1,485 4,682 23,562 11,744 1,186

450 185 635 4,880 100 4,362 26 39 4,427 3,630 1 300 1,300 1 410

$ 31073,637 $ 510,299 $ 243,792 $ 3,827,728 $ 2,922,854 $ 494 855


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2014

Fundraising Total

$ 84,771 $ 2,074,243 20,608 761 ,733

4,079 200,714 2,972 166,903

17,412 93,715 749 70,697

2,385 56,166 411 39,164 933 35,207

55 30,592 4,432 17,362

20 5,000 3,630 1410

$ 138,827 $ 31556,536


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015 and 2014

NOTE A -- Description of organization

Commonweal was incorporated in California in 1976. It operates as a non-profit public charity and works in three core fields- health and healing, art and education, and environment and justice. Within those fields, Commonweal incubates and supports a dozen different programs in cancer, health professional education, environmental health, yoga, healing nutrition, permaculture gardening, and juvenile justice (See Note G). Commonweal is located in Bolinas, California, in the Point Reyes National Seashore.

Commonweal also operates the Commonweal Retreat Center: a breathtakingly beautiful space within the Commonweal site that holds the Cancer Help Program retreats and other workshops, including personal and professional conferences, retreats and gatherings that are compatible with Commonweal's nonprofit status. The Retreat Center includes Pacific House, a 12-bedroom retreat facility with a commercial kitchen, and Bothin and Kohler Houses, with two and three bedrooms, respectively.

The Hale Fund (supporting organization) was incorporated in California in 1990. It operates as a nonprofit supporting organization. Its mission is to benefit and support other non-profit public charities, including Commonweal, which contribute to the health of individuals, public health and global environment. Commonweal controls the Hale Fund through certain common directors and officers.

NOTE B -- Summary of significant accounting policies

Principles of consolidation

The consolidated financial statements include the accounts of Commonweal and supporting organization (Commonweal). The financial statements are consolidated since Commonweal has both an economic interest in and common control of the Hale Fund through a majority voting interest in its governing body. All significant inter-company balances and transactions have been eliminated in consolidation.

Basis of accounting

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting.

Cash and cash equivalents

Cash and cash equivalents consist of cash on deposits with commercial banks and money market funds. Cash and money market funds held as part of investment portfolio are included in investments - other.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

June 30, 2015 and 2014

NOTE B -- Summary of significant accounting policies (continued)

Grants and contributions receivable, net

Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the net present value of their estimated future cash flows. Conditional promises to give are not included as support until the conditions are substantially met. Commonweal evaluates the amounts expected to be realized on a regular basis. Any changes in the amounts expected to be received are recorded as an allowance and charged against grants and contributions revenue.

Program fees receivable

Commonweal reports program fees receivable at net realizable value. Commonweal maintains an allowance for potentially uncollectible accounts on a case-by-case basis. When management determines that a receivable is potentially uncollectible, the balance is reserved in the allowance for doubtful accounts. The allowance for doubtful accounts was $6,927 and $0 as of June 30, 2015 and 2014, respectively.

Investments

Investments primarily consist of debt and equity securities. Debt and ·equity securities are measured at fair value using unadjusted quoted prices in active markets for identical assets.

Commonweal has categorized investment measured at fair value on a recurring basis according to the fair value hierarchy:

Level 1 - investment assets with observable inputs that are derived from quoted prices for identical assets or liabilities in an active market;

Level 2 - quoted prices in non-active or in active markets for similar assets or liabilities, inputs other than quoted prices that are unobservable, and inputs that are not directly observable, but are corroborated by observable market data; or

Level 3 - unobservable inputs, which cannot be corroborated by external market data.

Investments - other

Investments - other consist of certificates of deposit purchased through Certificates of Deposit Account Registry Service (CDARS) and cash, money market, and deposit accounts held as part of the investment portfolio. Certificates of deposit are stated at their estimated redemption value at June 30,2015 and 2014. Certificates of deposit mature at various dates from July 2015 until December 2015.

For the purposes of the cash flow statement, certificates of deposits, cash, money market and deposits accounts held as part of investment portfolio are considered to be investment assets.

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June 30, 2015 and 2014


Property and equipment, net

Commonweal's property and equipment are carried at cost or, if donated, at estimated fair value on the date of the gift. Property and equipment with an original cost or fair market value in excess of $2,000 and an estimated useful life of over one year are capitalized. Depreciation is calculated using the straight-line method over the estimated useful lives ranging from 5 to 39 years. The cost of leasehold improvements is amortized over the lesser of the improvement's useful life or the lease term, including reasonably assured renewal periods.

Net assets

Commonweal classifies its net assets into one of three categories:

Unrestricted - those net assets and activities which represent the portion of expendable funds which are available to support operations. A portion of these net assets may be designated by the Board of Directors for specific purposes.

Temporarily restricted - those net assets and activities which are donor-restricted for: (a) support of specific operating activities; (b) investment for a specified term; (c) use in a specified future period; or (d) acquisition of long-lived assets.

Permanently restricted - those net assets and activities which are permanently donor-restricted for holdings of: (a) assets donated with stipulations that they be preserved and not be sold; or (b) assets donated with stipulations that they be invested to provide a permanent source of income. Commonweal had no permanently restricted net assets at June 30,2015 and 2014.

Grants and contributions

Commonweal records contributions when the donor makes an unconditional promise to give. Donorrestricted contributions are reported as increases in temporarily restricted net assets. Temporarily restricted net assets are reclassified to unrestricted net assets when restrictions are satisfied.

Contributed goods and services

Contributions of goods are recognized at fair value when received. Contributions of services are recognized at fair value when received if such services create or enhance nonfinancial assets, or require specialized skills, are provided by individuals possessing those skills and would typically need to be purchased if not donated.

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June 30,2015 and 2014


Program fees

Program fees consist principally of fees from participants in the Commonweal Cancer Help Program and the Institute for the Study of Health & Illness programs, rental of the Retreat Center and other contracted and fiscal agency services. Commonweal reports program fees when the related services are provided.

Investment income

Investment income consists of interest, dividends, realized gains and losses, and unrealized appreciation and depreciation of investments, net of investment management fees. Investment income is reported when earned. Changes in fair values, as well as realized gains and losses, are reflected in the consolidated statement of activities in the period in which such investments are sold or fluctuations occur.

Other income

Other income primarily consists of rent collected from employees living on-site.

Income taxes

Commonweal and the Hale Fund are non-profit corporations exempt from income taxes under Section 50l(c)(3) of the Internal Revenue Code and under Section 2370ld of the California Revenue and Taxation Code. Therefore, no provision for federal or California income tax is reflected in the consolidated financial statements. Tax returns of Commonweal and the Hale Fund are subject to examination by federal and state taxing authorities, generally for three years and four years, respectively, after they are filed.

Functional allocation of expenses

The costs of providing the program services and supporting activities are reported on the statement of functional expenses. Expenses that can be directly identified with a specific function are allocated directly to that function. Expenses that cannot be directly identified with a specific function are allocated among the program services and supporting activities based on allocation methods and estimates made by management.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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June 30,2015 and 2014

NOTE C -- Concentrations of credit risk

Financial instruments which potentially subject Commonweal to concentrations of credit risk include cash, cash equivalents, grants and contributions receivable, investments and investments- other.

Commonweal maintains its cash and cash equivalents at four financial institutions. The balances at times may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC).

Commonweal's exposure to credit risk from grants and contributions receivable is mainly influenced by the type of donor. Receivables from governmental agencies and foundations generally have a very low default risk. Receivables from individuals are considered to have a higher default risk.

Investments are held by custodians and, at times, may exceed Securities Investor Protection Corporation insurance limits. Investments are subject to credit and market risks, such as changes in interest rates or credit ratings and market fluctuations.

Certificates of deposit are issued by various financial institutions where balances do not exceed federally insured limits.

Management believes that Commonweal is not exposed to any significant credit risk in respect to these financial instruments.

NOTED-- Grants and contributions receivable, net

Grants and contributions receivable consist of the following as of June 30:

2015 2014

Due within one year $ 661,700 $ 1,059,90 l Due in one to five years 635,000 705,000

1,296,700 1 '764,90 1 Present value discount (20,637) (22, 750)

Grants and contributions receivable, net $ 1,276,063 $ 1,742,151

Grants and contributions receivable due in one to five years are stated at their present value. Commonweal computed a present value discount using a risk free rate of 3.25% and 3.85% for the years ended June 30,2015 and 2014, respectively.

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June 30, 2015 and 2014

NOTE E -- Investments

Investments are presented in the consolidated financial statements at fair value. Commonweal categorized all investment assets on an individual security basis according to the fair value hierarchy as Level I.

Investments measured at fair value at June 30 are composed of the following:

2015 2014

Stocks/REITs $ 1,816,586 $ Corporate bonds 624,920 Municipal bonds 428,586 U.S. Treasury bonds 285,133 51,500 Agency securities 60,324 Exchange funds 298,868 Exchange funds - foreign 31,974 Mutual funds 74,961

$ 3,215,549 $ 457)03

Investment returns for the years ended June 30 are as follows:

2015 2014

Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total

Interest and dividend income $ 44,018 $ - $ 44,018 $ 44,957 $ - $ 44,957 Net realized and unrealized

gains (losses) (75,928) (75,928) 33,515 33,515

Net investment income (loss) $ {31,910) $ - $ {31,910) $ 78,472 $ - $ 78,472

Net realized and unrealized gains are shown net of investment management fees of$0 and $1,128 for the years ended June 30, 2015 and 2014, respectively. Interest and dividend income includes interest earned on cash and cash equivalents and investments- other.

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June 30, 2015 and 2014

NOTE F -- Property and equipment

Property and equipment consist of the following at June 30:

2015 2014

Leasehold improvements $ 1,518,550 $ I 495 542 Furniture and equipment 94 573 91.111

1 ,613,123 1,586,653 Less accumulated depreciation and

amortization (1,209,989) (1.141,702)

Property and equipment, net $ 403 134 $ 444 951

Depreciation and amortization expense for the years ended June 30,2015 and 2014 was $69,652 and $70,697, respectively.

NOTE G -- Temporarily restricted net assets

Temporarily restricted net assets consist of the following at June 30, 2015:

Program Beginning Additions Releases Total

Collaborative on Health and the Environment $ 544,041 $ 242,441 $ (532,177) $ 254,305

Commonweal Biomonitoring Resource Center 12,376 55,050 (62,426) 5,000

Commonweal Cancer Help Program 94,762 180,727 (207,666) 67,823 Commonweal Juvenile Justice 46,587 478,031 (246,062) 278,556 Healing Circles 11,554 401,398 (89,872) 323,080 Healing Kitchens Institute 31,484 42,672 (49,192) 24,964 EDGE: The Center for Creative

Community 68,433 (35,638) 32,795 Healing Yoga Foundation 48,424 5,506 (44,728) 9,202 Institute for the Study of Health and

Illness 275,000 333,263 (533,263) 75,000 Regenerative Design Institute at

Commonweal Garden 76,370 25,579 ( 100,661) 1,288 The New School at Commonweal 224,243 128,984 (192, 184) 161,043 Cancer Prevention Initiative 977,183 (213,273) 763,910 Women's Health Program 121,032 (121,032) Other programs II ,371 91,807 (63,370) 39,808 Time restrictions 251,818 282,286 (526,831) 7 273

Total $ 2,726,245 $ 2,336,177 $ {3,018,375) $ 2,044,047

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June 30, 2015 and 2014

NOTE G --Temporarily restricted net assets (continued)

Temporarily restricted net assets consist ofthe following at June 30, 2014:

Program Beginning Additions Releases Total

Collaborative on Health and the Environment $ 642,280 $ 448,202 $ (546,441) $ 544,041

Commonweal Biomonitoring Resource Center 24,919 50,122 (62,665) 12,376

Commonweal Cancer Help Program 87,428 201,606 (194,272) 94,762 Commonweal Juvenile Justice 248,790 126,950 (329,153) 46,587 Healing Kitchens Institute 7,270 24,428 (214) 31,484 Institute for Art and Healing I EDGE:

The Center for Creative Community 46,017 8,108 (54, 125) Healing Yoga Foundation 65,150 (16,726) 48,424 Institute for the Study of Health and

Illness 690,255 (415,255) 275,000 Regenerative Design Institute at

Commonweal Garden 2,080 167,599 (93,309) 76,370 The New School at Commonweal 214,830 185,042 (175,629) 224,243 Cancer Prevention Initiative 977,251 (68) 977,183 Women's Health Program 12,894 150,418 (42,280) 121,032 Other programs 124,097 39,990 (141,162) 22,925 Time restrictions 752,084 (500,266) 251,818

Total $ 1,410,605 $ 3,887,205 $ (2,571 ,565) $ 2,726,245

The following are descriptions of the Commonweal programs:

Collaborative on Health and the Environment

Founded in 2002, the Collaborative on Health and the Environment (CHE) has almost 5000 partners in 50 states and 79 countries who are committed to addressing environmental health concerns related to chronic disease and disability. CHE translates and disseminates emerging environmental health science for different audiences, serves as a highly respected convener of colleagues in various fields, organizes monthly conference calls on relevant topics with leading researchers, and develops scientific consensus statements, white papers, and fact sheets. CHE currently has 18 working groups and initiatives, including asthma, autism, breast cancer, cancer, children's environmental health, climate change, cumulative impacts, database improvements, diabetes/obesity, electromagnetic fields, fertility/reproductive health, healthy aging, integrative health, learning and developmental disabilities, mental health, neurodegenerative diseases, pet health, and science-and three state-based initiatives in Alaska, Oregon, and Washington. CHE also has a particularly strong working partnership with the Health and Environmental Alliance (HEAL) in Europe. Elise Miller serves as the director of CHE.

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June 30, 2015 and 2014


Commonweal Biomonitoring Resource Center

Founded in 2006, the Commonweal Biomonitoring Resource Center (CBRC) helps citizen groups around the world measure, or biomonitor, the levels of toxic substances or their breakdown products in human tissue and fluids. By documenting the personal chemical body burdens of key individuals, CBRC generates and delivers clear messages about the significance of biomonitoring data to the public, community groups, and state legislators. Biomonitoring data tells us that toxic chemicals pollute our "internal landscape" and suggests that this landscape is precious, fragile, and vulnerable to chemically related harm. CBRC has been collaborating with the International Association of Fire Fighters on biomonitoring firefighters for the presence of chemicals released in the heat of fires and chemical flame retardants; it has also been collaborating with the Women Firefighters Biomonitoring Collaborative. In addition, CBRC is currently focused on the environmental health concerns of communities exposed to· fracking and related gas and oil developments. Sharyle Patton serves as the director of CBRC.

Commonweal Cancer Help Program

Founded in 1985, the Commonweal Cancer Help Program (CCHP) is perhaps the most respected residential support program for people with cancer and their significant others in the United States. Bill Moyers featured CCHP in his award-winning PBS series, Healing and the Mind. CCHP provides a weeklong program of yoga; meditation; relaxation; breathing practices; massage; morning support groups; sand-tray; exploration of sacred space; healing arts; music; an evening of healing words; primarily vegetarian whole foods cooking; individual sessions with co-leaders, nutritionists, and yoga practitioners; support groups; and explorations of choices in healing, conventional and complementary therapies, pain and suffering, and death and dying. CCHP regularly and reliably transforms the lives of participants in lasting and profound ways; it changes the experience of livingand sometimes dying - with cancer. We currently offer six CCHP retreats each year. We also have been holding special one-day Cancer Help Program trainings for Bay Area Young Survivors (BAYS) -a community of young adults who have metastatic breast cancer- since 2012. Arlene Allsman serves as the coordinator ofCCHP.

Commonweal Juvenile Justice Program

Founded in 1992, the Commonweal Juvenile Justice Program is widely regarded as one of California's most influential advocacy organizations in the field. Attorney David Steinhart directs this program, with the founding premise that public safety and welfare are best served by a juvenile justice system that deals successfully with the treatment needs of children. Mr. Steinhart has played a central role in all major juvenile justice reforms in California over the past 23 years and consults with State programs around the nation. In 2012, the California Senate appointed Mr. Steinhart to the California Board of State and Community Corrections (BSCC).

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June 30, 2015 and 2014


Healing Circles

Founded in 2014, Healing Circles is a leaming community for pract1t10ners dedicated to transforrnative healing for people with cancer and other conditions of loss, and those who care for them. Commonweal holds Healing Circles workshops on integrative cancer care, culinary nutrition, medical advocacy, death and dying, and other subjects. Healing Circles Langley is our new program in Langley, Washington. Harmony Hill in Union, Washington, and Callanish in Vancouver, British Columbia, now have Healing Circles. The three Bay Area Commonweal Cancer Help Program alumni circles have internalized the practices that Healing Circles explores. We continue to hear from others across the country whose work is being inspired by Healing Circles initiatives. Michael Lerner directs Healing Circles.

Healing Kitchens Institute

Founded in 2011, the Healing Kitchens Institute (HKI) at Commonweal offers education and trainthe-trainer courses that focus on translating nutritional science onto the plate. Trainings are specially designed to help participants develop a nutritional and culinary vocabulary, giving them a new set of tools to navigate through a myriad of health and wellness issues. Rebecca Katz, MS, a nationally recognized wellness expert as well as senior chef and nutrition educator at the Commonweal Cancer Help Program, directs HKI. Rebecca has presented a series of seminars to doctors and other healthcare practitioners at Stanford University Hospital, in partnership with Dr. Fredi Kronenberg. She is currently training doctors and community leaders in underserved communities about healthy food and how it impacts patients' health. Rebecca has published four cookbooks: One Bite at a Time; the award winning The Cancer-Fighting Kitchen; The Longevity Kitchen: Satisfying Big-Flavor Recipes Featuring the Top 16 Age-Busting Power Foods, which was published in 2013 to wide critical acclaim; and The Healthy Mind Cookbook: Big-Flavor Recipes to Enhance Brain Function, Mood, Memory and Mental Clarity, which was published in 2015, and garnered an invitation to speak to the Department of Health and Human Services, White House Panel on Alzheimer's and Dementia.

Institute for Art and Healing

Commonweal believes that the arts provide an opportunity to expand human well-being and to effect transformational healing of individuals, communities, and the world. The Institute for Art and Healing at Commonweal (IAH) was founded in 2011 to build, strengthen and sustain the healing arts community and expand access to and knowledge of art as a healing force. As part of IAH, the Commonweal Gallery promotes the field of art and healing by presenting shows and exhibitions of healing artists and by using the Gallery space as an event venue where hundreds of people come each year to listen to readings, participate in dialogue, and contribute to conversations. Kyra Epstein coordinates IAH.

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June 30, 2015 and 2014


EDGE: The Center for Creative Community

Founded in 2014, the EDGE program explores the intersection of dialogue, cognition, creativity, and community. Through work in different communities, EDGE seeks to deepen our exploration of complex issues in our world. In 2015, Commonweal hosted the first Power of Hope camp, a weeklong youth arts camp, bringing together youth of different backgrounds to build a diverse community, develop creativity, and explore activism. Oren Slozberg directs EDGE.

Healing Yoga Foundation

A Commonweal program since 2013, the Healing Yoga Foundation (HYF) supports and empowers individuals and communities by providing access to personalized therapeutic yoga and mindfulnessbased techniques for healing and well-being. HYF provides service, support, education, and research for health, healing, and personal development through yoga. Kate Holcombe directs the Healing Yoga Foundation.

Institute for the Study of Health and Illness

The Institute for the Study of Health & Illness (ISHI), founded by Rachel Naomi Remen, MD, offers programs for healthcare professionals who wish to renew their passion for their calling as a healthcare professional, form authentic community with colleagues, and live by the service values that have motivated physicians, nurses, and other clinicians through the ages. Since 1991, IS HI's programs have reminded professionals that healthcare is an expression of love and that listening, compassion, and presence are as important for healing as scientific expertise. ISHI's current programs include: The Healer's Art, offered in 86+ medical schools in the U.S. and eight countries abroad, enables young medical students to explore their calling to the practice of medicine as their life work. ISHI's Continuing Medical Education Programs provide postgraduate education for healthcare professionals who aspire to practice a medicine of service, human connection, and compassionate healing. Through experiential processes clinicians are enabled to re-discover their passion for their profession. Finding Meaning Conversation Groups enable healthcare professionals to self-organize and connect with one another in authentic conversation by sharing stories drawn from their own experience. This process enables colleagues to form supportive community based on a shared vocation and life work. Remembering the Heart of Medicine (www.theheartofmedicine.org) is ISHI's website for physicians. In various discussion forums any doctor at any time can join others doctors worldwide to speak from their heart to their colleagues, renew their commitment to their patients, find innovative approaches to self-care, and have an experience of joining in an expanded community of physician healers.

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June 30, 2015 and 2014


Regenerative Design Institute at Commonweal Garden

The Regenerative Design Institute (RDI) offers classes, workshops, and internships in permaculture gardening and nature awareness. Each year, hundreds of people come to the Garden to learn the principles of permaculture and regenerative design, which not only apply to gardening but also represent a tool kit of ethical ways of living on earth. In addition, RDI has taught workshops in other countries, such as Turkey, Brazil, Indonesia, and Peru, where interest in the ideas behind permaculture is growing. James Stark and Penny Livingston-Stark serve as co-directors of RDI at Commonweal Garden.

The New School at Commonweal

Founded in 2007, The New School at Commonweal (TNS) is a community of inquiry exploring topics in health, the arts and sciences, the environment, and the inner life. TNS presents conversations, book readings, performances, and other events with thought and action leaders who are changing our world. The events, 200 over the past eight years, are recorded and then offered as podcasts on our website. Most are offered free of charge as gifts to the Commonweal community, giving forward into a circle of generosity. In the year that ended June 30, 2015, TNS conversations have included food writer and journalist Michael Pollan, philosopher and professor Jacob Needleman, poet Jane Hirshfield, film director and sound designer Walter Murch, actors and film directors Frances McDormand and Joel Coen, and many others. In addition, TNS continues to refine an online presence, including maintaining the website and sending monthly newsletters that are eliciting good response and discussion. Michael Lerner serves as the director, and Kyra Epstein serves as the coordinator ofTNS.

Cancer Prevention Initiative

Founded in 2014, the Cancer Prevention Initiative is dedicated to reducing the risk of cancer associated with environmental contaminants. It will also assist patients with choices in medical treatments and integrative therapies, and will highlight scientific developments and human stories related to these concerns.

Women's Health Program

The Women's Health Program develops leadership and builds capacity to address pressing environmental health issues. Currently it focuses on implementing QuickStart, a robust training program to conduct community-based participatory research (CBPR) that addresses environmental links to breast cancer and health disparities in breast cancer. This program is conducted in partnership with California Breast Cancer Research Program (CBCRP). QuickStart seeks to prepare teams of scientists and community groups to successfully apply for funding through the CBCRP's Community Research Collaboration Awards and then conduct research together. Heather Sarantis serves as the director ofthe Women's Health Program.

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June 30, 2015 and 2014

NOTE H -- Retirement plans

Commonweal sponsors two defined contribution plans under IRC Section 403(b) for its eligible employees, the Defined Contribution Retirement Plan (DC Plan) and Supplemental Retirement Plan (SR Plan).

Under the DC Plan, Commonweal contributes 3% of eligible employee compensation to the Plan and, in addition, matches 100% of participant deferrals up to 2% of participant compensation. Employees must reach age 21 and complete one year of service with at least 1,000 hours to participate in the DC Plan. In addition, to receive Commonweal contributions and matches, participants must receive pay for at least 1,000 hours during the preceding applicable DC Plan year. Participants vest immediately in Commonweal contributions and matches. During the years ended June 30, 2015 and 2014, Commonweal contributions and matches paid to the DC Plan for participants totaled $7 I ,349 and $74,728, respectively.

Under the SR Plan, eligible employees may contribute up to 100% of their eligible compensation to the Plan, subject to limits imposed under the Internal Revenue Code. Commonweal does not contribute to the SR Plan. All employees, except temporary and limited-term, are immediately eligible for the SR Plan.

NOTE I-- Commitments and contingencies

Commonweal occupies various facilities owned by the National Park Service (NPS) under a special use permit and a lease agreement.

Commonweal has a special use permit for its employee housing in Bolinas, California, with monthly payments of $3,575, expiring on December 31, 2015.

Commonweal has a lease agreement for its operating facilities which consist of an administrative building and three retreat center buildings in Bolinas, California with monthly payments of $5,000, expiring on December 1 1, 2019. Commonweal has the option to extend the lease through December II, 2029. Under the Lease Agreement, NPS has the option to change the rent, based on an acceptable appraisal, every five years. The last rent change was effective May 15, 200 1.

Future minimum lease payments under the special use permit and the lease agreement are as follows:

Years Ending June 30,

2016 2017 2018 2019

$ 81,450 60,000 60,000 25,000

$ 226,450

Rent expense included in occupancy cost totaled $122,152 and $1 06,552 for the years ended June 30, 20 15 and 20 14, respectively.

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June 30, 2015 and 2014

NOTE J --Related parties

Michael Lerner, the Chair of the Board of Directors of Commonweal, is the President of the Jenifer Altman Foundation, which pays his salary and benefits. Under a Resource Sharing Agreement (RSA), Commonweal reimbursed the Jenifer Altman Foundation $96,854 and $139,908 for the years ended June 30, 2015 and 2014, respectively. Commonweal received grants totaling $251,000 from the same foundation for each of the years ended June 30, 2015 and 2014.

Commonweal purchased 60 copies of Choices in Healing, written by Michael Lerner, for which he earned royalties, for each ofthe years ended June 30,2015 and 2014.

One member of the Board of Directors serves as Treasurer of the Kalliopeia Foundation. The Kalliopeia Foundation provided grants supporting Commonweal programs totaling $45,000 and $I 90,000 for the years ended June 30, 2015 and 2014, respectively.

Commonweal paid a spouse of one of the members of the Board of Directors $39,797 and $30,777 to operate the Commonweal Biomonitoring Resource Center for the years ended June 30, 2015 and 2014, respectively.

Three members of Commonweal's Board of Directors constitute a majority of the Barbara Smith Fund's Board of Directors. The Barbara Smith Fund had no transactions with Commonweal for the years ended June 30,2015 and 2014.

NOTE K -- Concentrations

Commonweal considers any donor providing over 10% of total annual revenue and support to be a major donor. During the year ended June 30, 2015, one major donor provided grants and contributions totaling approximately 12% of total revenue and support. During the year ended June 30, 2014, two major donors provided grants and contributions totaling approximately 37% of total revenue and support. Contributions receivable from one donor accounted for 55% and 56% of total grants and contributions receivable at June 30,2015 and 2014, respectively.

NOTE L --Subsequent events

In an Asset Transfer Agreement dated September 2, 2015, Visual Understanding in Education agreed to transfer all assets, contracts, and grant agreements and certain liabilities to the newly created Visual Thinking Strategies (VTS) program of Commonweal.

In an Asset Transfer Agreement dated October 3, 2015, Commonweal agreed to transfer all assets, contracts, and grant agreements and certain liabilities of the Institute for the Study of Health and Illness (ISHI) to Wright State Physicians, Inc., an Ohio faculty practice plan.

The date to which events occurring after June 30, 2015 have been evaluated for possible adjustments to the consolidated financial statements or disclosure is December 14, 2015, which is the date the consolidated financial statements were available to be issued.

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CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended · 2019-07-21 · COMMONWEAL AND THE HALE...

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