KCBS Tax returns

midwest_kc · Nov 20, 2020

KCBS has posted their 2019 tax returns in the members section. I'm a bit of a novice when it comes to reading these in depth returns, so I don't have much insight to provide here that wasn't already public knowledge. Thought some people might want to know, though, and provide analysis to us simpletons.

DUBBAGA · Nov 20, 2020

A few big "Oh FARK" items:

Fark #1

Net assets or fund balances for 2017 = $1,332,243
Net assets or fund balances for 2019 = $816,755
**** over a 1/2 million $$$$ drop in 2 years ****

Fark #2
Bowman received in 2019 = $313,864
Heath Hall received in 2019 = $232,575 (not bad for 7 months !!!!!)

Mike Peters received in 2019 = $163,929 (+ $38,937 from prior year)

Fark #3
Legal expenses for 2019 = $265,910 (+ $190,563 from prior year)

Advertising and promotion for 2019 = $733,588 (+ $293,199 from prior year)

midwest_kc · Nov 20, 2020

DUBBAGA said:
A few big "Oh FARK" items:

Fark #1

Net assets or fund balances for 2017 = $1,332,243
Net assets or fund balances for 2019 = $816,755
**** over a 1/2 million $$$$ drop in 2 years ****

Fark #2
Bowman received in 2019 = $313,864
Heath Hall received in 2019 = $232,575 (not bad for 7 months !!!!!)

Mike Peters received in 2019 = $163,929 (+ $38,937 from prior year)

Fark #3
Legal expenses for 2019 = $265,910 (+ $190,563 from prior year)

Advertising and promotion for 2019 = $733,588 (+ $293,199 from prior year)

A few questions, or hopes...

#1
I'm hoping this is tied to my thoughts/hopes on number 2. Hopefully they can also sell the building and rebuild the reserves.

#2
Peters/Bowman Hopefully this was buying them out of their contracts so that they can move forward. The quicker that cost is behind us the better, imo.

Hall - hopefully the same. I really had high hopes and was excited when he was named CEO. Luckily, Emily appears to be everything I hoped he would be and then some.

Do we know if that's the case, or were we still paying them this year?

#3
Legal expenses make sense with them suing Bowman and Peter's companies.

I'm interested in the advertising expense. I'm sure there are many things I'm not aware of that fall under this umbrella, but I don't know what happened that would add up to that big of a difference. That being said, it's the least of my concerns, as advertising and promotion are generally good, as long as that money is spent wisely.

GrillBillie_D · Nov 20, 2020

Fark #4:
Mr Bowman is believed to have received commissions on sponsorship contracts that had been secured by the organization prior to contracting with First Club Marketing LLC, an entity wholly owned by Mr Bowman. The organization believes Mr Bowman contracted to receive marketing retainer fees and commissions that were above local market rates. This excess compensation is currently in litigation to be recovered from the party involved and because of this no tax has been determined at this time. KCBS is treating the FCM-KCBS Marketing Agreement as an excess benefit transaction reported in Schedule L as a material diversion. As disclosed on Schedule L, KCBS has filed a lawsuit against Mr Bowman and his company, First Club Marketing, to recover the diverted assets.

airedale · Nov 20, 2020

Just for general info, tax returns from any nonprofit are public record and can be downloaded for free at guidestar.org. You have to register and sign in, but I have been registered for a number of years and recall only one email from them and none from anyone else. So pretty safe.

If you're looking at someone like KCBS and particularly at things like salaries and cash reserves it is valuable to downlod tax returns from similar organizations for comparison.

It is also interesting to look at some of the big nonprofits' numbers.

Very small nonprofits are not there (not required to file 990s) and churches are not there (exempt from public disclosure).

KCBS Tax returns

midwest_kc

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DUBBAGA

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airedale

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