Sierra Club Financial Report
Pursuant to provisions of sections 6321 and 6322 of the California Corporations Code, the following information is furnished as an annual report:
The Club's financial statements for the fiscal years ended December 31, 1999, and December 31, 1998, together with the report of KPMG LLP, independent auditors, are available on request from Sierra Club headquarters at 85 Second Street, San Francisco, California 94105-3441.
The membership list of the Sierra Club is on file at the Club's headquarters at 85 Second Street, San Francisco, California 94105-3441.
There are no transactions to disclose that constitute a conflict of interest involving directors or officers; no member has voting power of 10% or more.
The books of account and minutes of meetings of the Board of Directors are available for inspection by members on written request at the Club's headquarters at 85 Second Street, San Francisco, California 94105-3441.
INDEPENDENT AUDITORS' REPORT
The Board of Directors Sierra Club:
We have audited the accompanying balance sheets of Sierra Club National Entity as of December 31, 1999 and 1998, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Club's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sierra Club National Entity as of December 31, 1999 and 1998, and the changes in its net assets and its cash flows for the years then ended in conformity with generally accepted accounting principles.
KPMG LLP San Francisco, California April 28, 2000
The fiscal year 1999 closed with a contribution to Sierra Club net worth from operations of $4,331,200. In addition, the Sierra Club also recognized $3,724,500 from a favorable ruling by the U.S. Tax Court that certain royalty income is not subject to income taxes. This marks the fifth successive year that the Sierra Club has experienced a contribution to net worth, and this positive result is an outcome of the continued diligence of staff and volunteers in closely managing our fiscal resources.
For the year ending December 31, 1999, total revenues, including fund-raising reimbursements from The Sierra Club Foundation, were $59,260,200, and expenses and loss totaled $54,929,000. Both amounts are the highest levels ever attained by the Sierra Club, and the revenues financed the highest level of expenditures ever for the Club's Environmental Public Education Campaign (EPEC). The Club successfully increased its net assets in part due to the continued growth in the Life Member Program as well as some substantial returns on its investments.
The Sierra Club continues to be the preeminent grassroots-based environmental advocacy organization in the country, in its fifth year, the EPEC program continued in 1999 to deliver many hard-fought victories through effective grassroots organizing, coalition building, and strategic media campaigning. All across the nation, Sierra Club activists played important roles in carrying out the Club's mission of preserving our natural wonders. …