LEGAL MOMENTUM

FINANCIAL STATEMENTS
JUNE 30, 2015 and 2014

INDEPENDENT AUDITORS' REPORT

Board of Directors
Legal Momentum
New York, New York
Report on the Financial Statements
We have audited the accompanying financial statements of Legal Momentum (the "Organization"), which
are comprised of the statements of financial position as of June 30, 2015 and 2014, the related
statements of activities, functional expenses, and cash flows for the years then ended, and the related
notes to the financial statements.
Management's Responsibility for the Financial Statements
The Organization's management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the
organization's preparation and fair presentation of the financial statements, in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the organization's internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Legal Momentum as of June 30, 2015 and 2014, and the changes in its net assets
and its cash flows for the years then ended, in accordance with accounting principles generally accepted
in the United States of America.

New York, New York

October 26, 2015

LEGAL MOMENTUM
Statements of Financial Position
June 30,
2015
ASSETS
Cash and cash equivalents
Investments
Grants and contributions receivable
Other receivables
Prepaid expenses and other assets
Property and equipment, net

LIABILITIES AND NET ASSETS

Liabilities:
Accounts payable and other liabilities
Deferred rent obligation

2014

294,823
981,493
1,173,765
6,976
123,109
82,476

926,394
982,502
406,359
2,519
56,094
105,552

2,662,642

2,479,420

177,459
9,994

247,345
41,216

187,453

288,561

1,282,333
992,856
200,000

1,642,606
348,253
200,000

2,475,189

2,190,859

Commitments (Note K)
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted

See notes to financial statements

2,662,642

2,479,420

LEGAL MOMENTUM
Statements of Activities
Year Ended June 30,
2014

2015
Unrestricted
Public support and revenue:
Contributions:
Individual
Corporations and foundations
Bequests
Government grants
Special events (net of direct benefits to donors of $143,934
and $172,831 for 2015 and 2014, respectively)
Net investment (loss) income
Rental income
Program income
Donated services
Other income

380,282
239,167
250,231

Temporarily
Restricted

Permanently
Restricted

Total

$
$

270,833
600,000

998,078
(85)
86,088
67,908
728,225
34,681

Total public support and revenue before net

assets released from restriction

Unrestricted

380,282
510,000
250,231
600,000

Total

$
5,500

486,384
495,604
977,710
97,491
240,169
23,867
535,666
5,283

492,512
5,500
486,384
495,604
977,710
97,491
240,169
23,867
535,666
5,283

3,655,408

2,859,082

858,524

(858,524)

3,655,408

3,717,606

(357,420)

3,360,186

618,615
936,931
617,787
136,948

618,615
936,931
617,787
136,948

681,320
558,203
425,712
83,128
519,209
402,457

681,320
558,203
425,712
83,128
519,209
402,457

Total program services

2,310,281

2,310,281

2,670,029

2,670,029

Supporting services:
Management and general
Fund-raising

302,972
757,825

302,972
757,825

385,398
811,034

385,398
811,034

Total supporting services

1,060,797

1,060,797

1,196,432

1,196,432

Total expenses

3,371,078

3,371,078

3,866,461

3,866,461

284,330
2,190,859

(148,855)
1,791,461

Net assets released from restriction:

Satisfaction of program restrictions

3,010,805

Expenses:
Program services:
National judicial educational program
Legal
Domestic and campus sexual violence
Helpline
Employment and poverty
Immigrant women's program

Change in net assets

Net assets - beginning of year

See notes to financial statements

(226,230)

226,230

Total public support and revenue

Net assets - end of year

870,833

Permanently
Restricted

492,512
$

998,078
(85)
86,088
67,908
728,225
34,681

2,784,575

Temporarily
Restricted

644,603

(360,273)
1,642,606
$

1,282,333

644,603
348,253

200,000

992,856

200,000

2,475,189

1,642,606

501,104

3,360,186

(357,420)
705,673

200,000

348,253

200,000

(506,275)
2,697,134
$

2,190,859

LEGAL MOMENTUM
Statements of Functional Expenses
Year Ended June 30, 2015
(with summarized financial information for June 30, 2014)

Program Services
Domestic
and
Campus
Sexual

National
Judicial
Educational
Program
Personnel:
Salaries
Payroll taxes
Employee benefits

Donated services
Occupancy
Conferences, meetings and travel
Insurance
Consultants and subcontractors
Accountants and professional fees
Publications, subscriptions, and
memberships
Office supplies and equipment
Telephone and mail
Bank charges and interest expense
Miscellaneous expenses
Depreciation and amortization
Special events expense

Total expenses

See notes to financial statements

247,904
19,205
57,728

Legal

Helpline
73,561
5,699
17,130

845,301
65,486
196,842

2014

440,408
33,631
103,041

$ 1,285,709
99,117
299,883

$ 1,371,975
108,140
287,796

295,210

96,390

1,107,629

171,629

405,451

577,080

1,684,709

1,767,911

25,437
93,586
17,316
3,008
122,739
3,116

383,948
112,703
5,323
3,623
1,346
3,753

204,098
85,050
3,067
2,734
1,174
2,832

2,771
27,770
375
893
816
925

616,254
319,109
26,081
10,258
126,075
10,626

31,904
49,447
1,091
1,589
1,075
31,647

80,067
116,811
4,875
3,755
12,747
5,066

111,971
166,258
5,966
5,344
13,822
36,713

728,225
485,367
32,047
15,602
139,897
47,339

535,666
660,385
31,896
16,276
547,989
42,544

2,792
17,460
2,738

2,663
22,587
2,788

1,608
14,461
2,167

490
4,361
544

7,553
58,869
8,237

553
5,033

944
6,061

812
4,574

120
1,493

2,429
17,161

299
7,046
1,438
2,788
360
2,659

28,097
27,882
11,883
9,652
6,131
6,282
39,126

28,396
34,928
13,321
12,440
6,491
8,941
39,126

35,949
93,797
21,558
12,440
8,920
26,102
39,126

19,237
96,829
36,997
9,466
15,446
65,707
20,112

293,778

545,739

322,577

40,558

1,202,652

131,343

352,374

483,717

1,686,369

2,098,550

936,931

$ 617,787

$ 136,948

$ 2,310,281

757,825

$ 1,060,797

$ 3,371,078

$ 3,866,461

309,425
23,971
72,055

2015

391,192

302,972

Total

324,837

130,983
9,660
30,986

Total
Fund-raising

$ 225,293
17,454
52,463

Total

Management
and
General

298,543
23,128
69,521

618,615

Violence

Supporting Services

LEGAL MOMENTUM
Statement of Functional Expenses
Year Ended June 30, 2014
Supporting Services

Program Services
National
Judicial
Educational
Program
Personnel:
Salaries
Payroll taxes
Employee benefits

Donated services
Occupancy
Conferences, meetings and travel
Insurance
Consultants and subcontractors
Accountants and professional fees
Publications, subscriptions, and memberships
Office supplies and equipment
Telephone and mail
Bank charges and interest expense
Miscellaneous expenses
Depreciation and amortization
Special events expense

229,696
17,742
53,174

Legal
$

See notes to financial statements

223,731
17,526
39,025

174,886
13,788
38,767

Employment
and
Poverty

Helpline
$

8,769
1,216
3,102

244,662
18,813
56,681

Immigrant
Women's
Program
$

31,408
2,884
3,538

Total
$

913,152
71,969
194,287

Management
and
General

Fund-raising

136,994
10,731
36,839

321,829
25,440
56,670

Total
Expenses

Total
$

458,823
36,171
93,509

1,371,975
108,140
287,796

300,612

280,282

227,441

13,087

320,156

37,830

1,179,408

184,564

403,939

588,503

1,767,911

83,789
110,562
16,264
2,725
129,978
17
4,882
15,299
2,758
1,585
1,794
11,055

81,483
107,520
3,676
2,650
44,019
1,091
3,005
17,914
2,409
1,541
1,860
10,753

63,795
84,179
1,727
2,075
17,929
1,038
1,766
12,760
1,969
1,207
1,408
8,418

24,490
32,315
46
796
2,922
5
1,051
3,627
564
463
529
3,233

68,087
89,840
7,068
2,214
5,433
14
1,090
12,015
1,567
1,288
1,450
8,987

11,457
15,118
15
373
333,636
2
50
1,713
293
217
241
1,512

333,101
439,534
28,796
10,833
533,917
2,167
11,844
63,328
9,560
6,301
7,282
43,958

65,833
65,941
84
1,625
7,039
40,010
714
9,237
1,753
945
1,395
6,258

136,732
154,910
3,016
3,818
7,033
367
6,679
24,264
25,684
2,220
7,105
15,491
19,776

202,565
220,851
3,100
5,443
14,072
40,377
7,393
33,501
27,437
3,165
8,500
21,749
19,776

535,666
660,385
31,896
16,276
547,989
42,544
19,237
96,829
36,997
9,466
15,446
65,707
20,112

380,708
Total expenses

Domestic
and
Campus
Sexual
Violence

681,320

277,921
$

558,203

198,271
$

425,712

70,041
$

83,128

199,053
$

519,209

364,627
$

402,457

1,490,621
$

2,670,029

200,834
$

385,398

407,095
$

811,034

607,929
$

1,196,432

2,098,550
$

3,866,461

LEGAL MOMENTUM
Statements of Cash Flows

Year Ended June 30,

2014
2015
Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to net
cash used in operating activities:
Depreciation and amortization
Loss on disposal of equipment
Donated marketable securities
Proceeds from sale of marketable securities
Net realized and unrealized losses (gains) on investments
Bad debt expense
Changes in:
Grants and contributions receivable
Other receivables
Prepaid expenses and other assets
Accounts payable and other liabilities
Deferred rent obligation
Deferred revenue

Net cash used in operating activities

Cash flows from investing activities:
Proceeds from sales of investments
Purchases of investments
Purchase of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from line of credit
Repayments on line of credit

284,330

(506,275)

26,102
366
(30,113)
30,113
33,739

65,707
333
(11,842)
11,842
(64,334)
2,100

(767,406)
(4,457)
(67,015)
(69,886)
(31,222)

589,538
23,663
(4,246)
(100,756)
(70,072)
(13,632)

(595,449)

(77,974)

30,534
(63,264)
(3,392)

260,884
(292,292)
(97,588)

(36,122)

(128,996)

130,000
(130,000)

Net cash provided by financing activities

Decrease in cash and cash equivalents

Cash and cash equivalents - beginning of year

(206,970)
1,133,364

(631,571)
926,394

Cash and cash equivalents - end of year

294,823

926,394

Supplemental disclosures of cash flow information:

Donated services

728,225

535,666

See notes to financial statements

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE A - THE ORGANIZATION AND ITS SIGNIFICANT ACCOUNTING POLICIES

[1]

The Organization:
Legal Momentum (the "Organization"), formerly known as the NOW Legal Defense and Education Fund,
was established in 1970 under the not-for-profit laws of the District of Columbia. The Organization pursues
equality for women and girls in the workplace, the schools, the family, and the courts, using a variety of
strategies, including litigation, policy analysis, administrative advocacy, and public education programs.
The Organization is exempt from federal income taxes under Section 501(c)(3) of the U.S. Internal Revenue
Code and from state and local taxes under comparable laws. The Organization has filed an election with
the Internal Revenue Service to make expenditures to influence legislation.

[2]

Basis of accounting:
The accompanying financial statements of the Organization have been prepared using the accrual basis of
accounting and conform to accounting principles generally accepted in the United States of America as
applicable to not-for-profit entities.

[3]

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, liabilities,
revenues and expenses and the disclosure of contingencies. Actual results may differ from those estimates.

[4]

Investments:
Investments in cash held in interest-bearing accounts, and debt securities with readily determinable fair
values are reported at their fair values in the accompanying statements of financial position, with realized
and unrealized gains and losses included in the accompanying statements of activities. The Organization's
mutual funds, consisting of equity and fixed-income funds, are also reported at values determined by the
related investment manager or advisor and reviewed by the Organization's management for
reasonableness.
Investment transactions are recorded on a trade-date basis. Realized gains or losses on investments are
determined by comparison of the average cost of acquisition to proceeds at the time of disposition. The
earnings from dividends and interest are recognized when earned.
Donated securities are recorded at their fair values, as determined on the date of gift, with realized gains or
losses recorded when the securities are sold. The Organization's policy, generally, is to sell donated
securities immediately upon receipt. Accordingly, for purposes of the accompanying statements of cash
flows, donated securities received and sold within the same year are reported in the change in net assets
and shown in operating activities.

[5]

Property and equipment:

The Organization's property and equipment are reported at their costs at the dates of acquisition or their fair
values at their dates of donation. Minor costs of repairs and maintenance are expensed as incurred. The
Organization capitalizes property and equipment that have a cost of $1,000 or more and useful lives greater
than one year. Depreciation and amortization are provided using the straight-line method over the
estimated useful lives of the respective assets, ranging from three to ten years. Leasehold improvements
are amortized over either the useful lives of the assets or the term of the lease, whichever is shorter.

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE A - THE ORGANIZATION AND ITS SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

[5]

Property and equipment: (continued)

Management evaluates the recoverability of the investment in long-lived assets on an on-going basis and
recognizes any impairment in the year of determination. Long-lived assets were tested for impairment as of
June 30, 2015 and 2014, respectively, and, in the opinion of management, there were no impairments. It is
reasonably possible that relevant conditions could change in the near term and necessitate a change in
management's estimate of the recoverability of these assets.

[6]

Accrued vacation:
Accrued vacation is a liability that represents the Organization's obligation for the cost of unused employee
vacation time that would be payable in the event of employees' departures; the obligation is recalculated
every year. At June 30, 2015 and 2014, the accrued vacation obligation was $84,653 and $85,614,
respectively, and was reported as part of "accounts payable and other liabilities" in the accompanying
statements of financial position.

[7]

Deferred rent obligation:

The difference between rent expense incurred by the Organization on an accrual basis and the lesser
amounts paid in cash is attributable to scheduled rent increases and is reported as a deferred rent liability in
the accompanying statements of financial position.

[8]

Net assets:
(i) Unrestricted:
Unrestricted net assets represent those resources that are not subject to donor restrictions and are
available for current operations.
(ii) Temporarily restricted:
Temporarily restricted net assets represent those resources that are subject to the requirements of
Washington D.C.'s Uniform Prudent Management of Institutional Funds Act ("UPMIFA") and the use of
which has been restricted by donors or state law for specific purposes and/or the passage of time.
When a donor restriction expires, that is, when a stipulated time restriction ends, a purpose restriction is
accomplished, or funds are appropriated through action of the Board Directors, temporarily restricted net
assets are reclassified as unrestricted net assets and reported in the accompanying statements of
activities as "net assets released from restrictions."
(iii) Permanently restricted:
Permanently restricted net assets represent those resources the principal of
restricted into perpetuity by donors. The purposes for which the income and net
arising from the underlying assets may be used depend on the wishes of those
terms of UPMIFA, those earnings are classified as temporarily restricted in
statements of activities, pending action by the Board of Directors.

which is originally
capital appreciation
donors. Under the
the accompanying

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE A - THE ORGANIZATION AND ITS SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

[9]

Revenue recognition:
(i)

Contributions and bequests:

Contributions to the Organization are recognized as revenue upon the receipt of cash or other assets or
of unconditional pledges. Contributions are recorded as either temporarily or permanently restricted if
they are received with donor stipulations or time considerations as to their use. Conditional
contributions are recorded when the specified conditions have been met. The Organization records
bequest income at the time it has an established right to a bequest and the proceeds are measurable.
Contributions to be received over periods longer than a single year are discounted at an interest rate
commensurate with the risk involved.

(ii) Governmental grants:

Government grants and contracts are recognized as temporarily restricted support when received and
released from restrictions when the expenditures are incurred.
(iii) Rental income:
The Organization subleases a portion of its District of Columbia's office space to unrelated tenants
under month-to-month operating lease agreements which are cancellable by either the Organization or
the tenants with appropriate notification.
(iv) Program income:
The Organization's program income consists of sales of instructional materials, honoraria paid to Legal
Momentum staff by other organizations and attorney fees, and income is recorded when services are
provided.
(v) Other income:
Other income is recognized as services are rendered.
[10] Donated services:
Donated services are recognized in the financial statements if the services (i) require specialized skills, (ii)
be provided by individuals possessing these skills, and (iii) would typically need to be purchased if not
provided by donation. Donated services are recorded as support at their estimated fair values at the dates
of donation and are reported as unrestricted support. Donated pro-bono legal services for the Organization
for fiscal-years 2015 and 2014 were approximately $728,225 and $535,666, respectively.
[11] Functional allocation of expenses:
The costs of providing the Organization's various programs and supporting services have been summarized
on a functional basis in the accompanying statements of activities. Accordingly, certain costs have been
allocated among the programs and supporting services using reasonable ratios determined by
management.
[12] Interns:
A substantial number of unpaid interns (approximately 20 to 25 per year) have made significant
contributions of their time to the Organization. The value of this contributed time does not meet the criteria
for recognition of contributed services required under generally accepted accounting principles and,
accordingly, is not included in the accompanying financial statements.
9

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE A - THE ORGANIZATION AND ITS SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

[13] Endowment fund:
The Organization reports all applicable disclosures to its funds designated as endowment.
[14] Income tax uncertainties:
The Organization is subject to the provisions of the Financial Accounting Standards Board's (the "FASB")
Accounting Standards Codification ("ASC") Topic 740, Income Taxes, relating to accounting and reporting
for uncertainty in income taxes. Because of the Organization's general tax-exempt status, management
believes ASC Topic 740 has not had, and is not expected to have, a material impact on the Organization's
financial statements.
[15] Fair-value measurement:
The Organization reports a fair-value measurement of all applicable financial assets and liabilities, including
investments, grants and contributions and other receivables, and short-term payables.
[16] Subsequent events:
The Organization considers all of the accounting treatments, and the related disclosures in the current
fiscal-year's financial statements, that may be required as the result of all events or transactions that occur
after the fiscal year-end through October 26, 2015, the date the financial statements were available to be
issued.
[17] Reclassification:
Certain amounts included in the prior-year's financial statements have been reclassified to conform to the
current year's presentation. These reclassifications had no effect on the previously reported change in net
assets.

NOTE B - INVESTMENTS
At each fiscal year-end, investments consisted of the following:
June 30,
2015
Fair Value
Cash and cash equivalents
Mutual funds:
Fixed-income securities
Equity securities
U.S. government obligations

Cost

2014
Fair Value
Cost

$ 184,857

$ 184,857

$ 174,396

$ 174,396

307,389
481,615
7,632

305,448
387,935
14,339

309,484
490,650
7,972

296,522
373,905
14,605

$ 981,493

$ 892,579

$ 982,502

$ 859,428

10

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE B - INVESTMENTS (CONTINUED)

During each fiscal year, net investment (losses) income consisted of the following:
Year Ended June 30,
2015
2014
Interest and dividends
Net realized gains
Net unrealized (losses) gains

33,654
421
(34,160)

33,157
23,117
41,217

(85)

97,491

The FASB's ASC Topic 820, Fair Value Measurements and Disclosures, establishes a three-level valuation
hierarchy of fair-value measurements. These valuation techniques are based on observable and unobservable
inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs
reflect market assumptions. These two types of inputs create the following fair-value hierarchy:
Level 1: Valuations are based on observable inputs that reflect quoted market prices in active markets for the
same or identical assets and liabilities at the reporting date.
Level 2: Valuations are based on (i) quoted prices for those investments, or similar investments in active
markets, or (ii) quoted prices for those investments, or similar investments in markets that are not
active, or (iii) pricing inputs other than quoted prices that are directly or indirectly observable at the
reporting date. Level 2 assets include those investments that are redeemable at or near the balance
sheet date and for which a model was derived for valuation.
Level 3: Valuations are based on pricing inputs that are unobservable and include situations where (i) there
is little, if any, market activity for the investments, or (ii) the investments cannot be independently
valued, or (iii) the investments cannot be immediately redeemed at or near the fiscal year-end.
The availability of available market data is monitored to assess the appropriate classification of financial
instruments within the fair-value hierarchy. Changes in economic conditions or valuation techniques may require
the transfers of financial instruments from one level to another. In such instances, the transfer is reported at the
beginning of the reporting period. There were no transfers between Levels 1 and 2 for fiscal-years 2015 and
2014.
The following table summarizes the fair values of the Organization's assets at each fiscal year-end, in accordance
with ASC Topic 820 valuation levels:
June 30,
2015
Level 2

Level 1
Cash and cash equivalents
Mutual funds:
Fixed-income securities
Equity securities
U.S. government obligations
Total

2014
Level 2

Total

Level 1

$ 184,894

$ 184,894

$ 174,396

$ 174,396

307,352
481,615

309,484
490,650

$ 974,530

$ 973,861

7,632

307,352
481,615
7,632

7,632

$ 981,493

Total

7,972

309,484
490,650
7,972

7,972

$ 982,502

11

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE C - RECEIVABLES
[1]

Grants and contributions receivable:

Grants and pledges of future contributions made to the Organization as of each fiscal-year end, but not yet
collected as of that date, were recorded as grants and contributions receivable of $1,165,405 and $406,359
during fiscal-years 2015 and 2014, respectively, and were estimated to be due within one year. Based on
prior experience, management expects to collect the receivables in full, and, accordingly, has not
established an allowance for uncollectible accounts.

[2]

Other receivables:
At each fiscal year-end, other receivables consisted of amounts due to the Organization for exchange-type
transactions. All amounts are due within one year. Based on management's past experience, all
receivables in this category are expected to be fully collected.

NOTE D - PROPERTY AND EQUIPMENT

At each fiscal year-end, property and equipment consisted of the following:
June 30,
2014

2015
Furniture and fixtures
Telephone system
Computers
Leasehold improvements

87,851
2,742
8,350
177,855

273,772
(168,220)

276,798
(194,322)

Less accumulated depreciation and amortization

$

82,476

88,219
2,742
4,956
177,855

105,552

Depreciation expense for fiscal-years 2015 and 2014 was $26,102 and $65,707, respectively.
During fiscal-year 2015, the Organization wrote off property and equipment of $2,205, with accumulated
depreciation of $1,839, resulting in loss on the disposition of $366. During fiscal-year 2014, the Organization
wrote off partially depreciated office equipment of $1,581,754, resulting in a loss on disposition of $333.

NOTE E - RETIREMENT BENEFITS

The Organization has a defined-contribution pension plan, qualified under Section 403(b) of the Internal Revenue
Code. The plan covers all employees who meet the Organization's length-of-service requirements. Contributions
by the Organization are discretionary and can be made only with the Board of Directors' approval. The
Organization's contribution for fiscal-years 2015 and 2014 was approximately $52,000 and $61,000, respectively.
In addition, the Organization has a 403(b) tax-sheltered annuity retirement plan, which is available to all
employees. Contributions are made by employees and are not matched by the Organization.

12

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE F - SIGNIFICANT SOURCES OF REVENUE

The Organization received grants from the Department of Justice Office on Violence Against Women in the
amount of $600,000 and $467,000 for fiscal-years 2015 and 2014, respectively. Such grants represented 34%
and 32% of public support, respectively. During fiscal-year 2015, the Organization received a contribution from a
donor in the amount of $500,000. Such contribution represented 29% of public support.

NOTE G - CREDIT RISK

The Organization places its cash investments with high-credit-quality financial institutions. At times, the balances
in such accounts may exceed federally insured limits. The Organization's management believes that there is no
substantial risk of loss associated with the failure of these financial institutions.

NOTE H - TEMPORARILY RESTRICTED NET ASSETS

At each fiscal year-end, temporarily restricted net assets consisted of the following:
June 30,
2015
National judicial educational program
Domestic and campus sexual violence
Time restricted

2014

152,949
569,074
270,833

348,253

992,856

348,253

During each fiscal year, net assets released from restrictions consisted of the following:
Year Ended June 30,
2014
2015
National judicial educational program
Domestic and campus sexual violence
Immigrant women's program
Employment and poverty
Time restricted

$ 195,304
30,926

279,040
368,651
2,500
208,333

226,230

858,524

NOTE I - PERMANENTLY RESTRICTED NET ASSETS

At June 30, 2015 and 2014, net assets of $200,000 were permanently restricted, with investments earnings to be
used for legal support.

13

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE J - ACCOUNTING AND REPORTING FOR ENDOWMENTS

[1]

The endowment:
The Organization's endowment consists of a single donor-restricted fund, which is reported as permanently
restricted.

[2]

Interpretation of relevant law:

UPMIFA is applicable to all of the Organization's institutional funds, including its donor-restricted
endowment funds. The Board of Directors adheres to UPMIFA's requirements.

[3]

Endowment objectives:
The Organization has adopted investment and spending policies for it's endowment assets that are intended
to provide a predictable stream of funding to programs supported by its endowment, while seeking to
maintain the purchasing power of the endowment assets.

NOTE K - COMMITMENTS
[1]

Operating leases:
The Organization rents office space in Washington, D.C., under a lease which expires in May 2017. The
lease for the office space in New York City expired in December 2013, and the Organization subsequently
signed a new lease agreement, commencing in October 2013 and expiring in February 2019. Rent expense
was approximately $476,000 and $622,000 for fiscal-years 2015 and 2014, respectively.
During fiscal-year 2011, the Organization entered into a sublease agreement for a portion of its Washington
D.C.'s office space under a cancelable operating lease terminating May 2017. Pursuant to a provision
within the lease agreement, the tenant exercised the option to terminate the lease, effective January 31,
2015. During fiscal-year 2015, the Organization entered into a sublease agreement for an additional
portion of its Washington D.C.'s office space; the agreement expires in May 2017.
During fiscal-years 2015 and 2014, rental income generated from the above-referenced sublease
agreements amounted to approximately $74,000 and $240,000, respectively.
The Organization is obligated under certain office equipment lease agreements. The obligations are
payable in annual installments of approximately $17,000 through June 2016 and of approximately $6,000
through June 2019.
The minimum annual future rental commitments under the lease agreements, net of sublease agreements,
are as follows:
Rental
Expense

Year Ending
June 30,
2016
2017
2018
2019

Sublease
Income

Net

509,336
457,434
223,200
75,324

212,766
191,709

296,570
265,725
223,200
75,324

$ 1,265,294

404,475

860,819

14

LEGAL MOMENTUM
Notes to Financial Statements
June 30, 2015 and 2014

NOTE K - COMMITMENTS (CONTINUED)

[2]

Revolving line-of-credit agreement:

During fiscal-year 2015, the Organization arranged a revolving line of credit with JPMorgan Chase in the
amount of $500,000 held with JPMorgan Chase and Co., and amounts drawn down under the line of credit
were subject to interest at 5.50% plus LIBOR. During fiscal-year 2015, the Organization drew down
$130,000 but repaid the full amount by June 30, 2015.

[3]

Government contracts:
The Organization's government-funded activities are subject to audit by the applicable granting agencies.
At June 30, 2015, there were no material obligations outstanding as a result of such audits, and the
Organization's management believes that unaudited projects will not result in any material obligations.

[4]

Employment agreement:
The Organization has an employment agreement with its President ending in April 2016.

[5]

Other contracts:
The Organization has entered into various contracts and agreements in the normal course of business
operations.

15