Financial Report
Introduction
Nature of Sound Inc is committed to transparency in its financial operations, and as part of that commitment, we are pleased to present our 2022 financial report. We are a small nonprofit organization focused on providing support to nonprofits and victims of crime, specifically human trafficking survivors. Despite the challenges brought on by the pandemic and the current fundraising climate, we continue to maintain our commitment to transparency and responsible financial management.
Financial Report Summary
Our financial performance for the fiscal year 2021-2022 has shown growth in comparison to the previous fiscal year. Here is a summary of our financial results for the period:
Total Revenue: $66,282.76 (2021-2022) compared to $23,145.59 (2020-2021)
Total Expenditures: $49,763.55 (2021-2022) compared to $10,107.76 (2020-2021)
Net Operating Revenue: $16,519.21 (2021-2022) compared to $13,037.83 (2020-2021)
Revenue growth has primarily been driven by an increase in grant funding, service revenue, and sales of products. Our expenditures have also increased, reflecting the organization's expansion in services and programs offered.
Growth Forecast and Projections
As Nature of Sound Inc begins to resume in-person events, which were a primary source of funding prior to the 2019 and 2020 pandemic, we can expect a significant increase in individual contributions. Considering the challenging fundraising climate, we are optimistic that resuming these events will lead to a 300%+ increase in individual contributions over the next two years, as supporters reengage with our organization in a more personal and tangible way.
Other expected revenue growth areas include:
Event Sponsorships: As we resume events, we can also expect increased interest from corporate sponsors, which could further boost our revenue. This additional support could lead to a 10% to 30% increase in sponsorship revenue over the next two years.
These projections, combined with the previously mentioned growth in service-related revenue, grant opportunities, and donations, will significantly strengthen our organization's financial position. This increased funding will enable us to better serve our beneficiaries and continue to fulfill our mission.
Conclusion
As we move forward, we will maintain our commitment to transparency and responsible financial management. We understand that the trust of our supporters is crucial to our success, and we will ensure that every dollar contributed to Nature of Sound Inc is used effectively and efficiently to maximize our impact on the communities we serve. As we expand our reach and scale the organization into new markets beyond Solano County, we will remain dedicated to our mission and the people we serve, always striving for a better future.
