Working Session Supplemental Packet

Part 1Financial Narrative — Q1 FY27

Colorado LiftED closed the first quarter of FY27 with $469K in revenue against $771K in expenses, an operating loss of ($302K) against a budgeted ($283K). Q1 was designed as a deficit quarter because individual giving and most foundation payments arrive November through March, and we finished $19K behind plan. G&G's current forecast projects a full-year net of ($229K), inside the roughly $300K of reserve-backed Individual Giving built into the FY27 budget. Our balance sheet is solid ($1.51M in assets, $47K in liabilities); the pressure point is cash location and timing, as operating checking fell to about $80K by September 30 and we have been moving money from reserve and investment accounts to meet payroll until November receipts arrive.

What Shaped the Q1 Result

• Individual giving is back-loaded by design. Q1 individual donations were $5K against a $65K Q1 budget; most of the year's individual giving is budgeted for November through March.
• Foundation timing, not foundation weakness. Foundation revenue is forecast $107K above budget for the year, but the largest payments land in November–December and May. September shows a ($64K) foundation adjustment: the Broncos Foundation double-paid us, and this reflects returning the duplicate payment.
• Medicaid ramped slower than planned. Reimbursements were delayed by our name change, and billable sessions averaged ~65 a week against a 120 target. The forecast now carries Medicaid $43K under budget.
• Markets took $25.9K. Unrealized investment losses brought total Q1 net revenue to ($328K).
• Payroll is the fixed cost that sets our cash floor. Each pay run needs about $94K in the operating account; the forecast runs payroll at $221K a month and on budget for the year.
• Good news on spending. Q1 expenses were $50K under budget (payroll $104K under while roles were open), and departmental leads now manage their own budgets with G&G.

Year-to-Date Snapshot

As of September 30, total assets were $1,505,173 and liabilities $47,454. Unrestricted cash across all accounts was $673,745, of which about $80,500 sat in operating checking (BOK + Vectra); restricted investments were $702,711, down from $825,346 at August 31. Year-to-date revenue was $469,051 (87% of the Q1 budget) and expenses were $771,372 (94% of the Q1 budget), for an operating net of ($302,322) and a total net of ($328,178) after investment losses. Accounts receivable were $97,361, including government contracts that pay on their usual lag.

Full-Year Projection

G&G's October 15 forecast projects $2.91M in revenue against $3.14M in expenses, a ($229K) net. It assumes about $142K in individual giving in November–December (we need $283K to beat the budget), $351K from the 2027 Gala (reported as committed, not collected, until it posts), ~$661K in foundation funding of which ~$387K is expected November–December, and Medicaid of $357K. Earned-revenue proposals now in motion (KIPP, CCD, RFMA renewal) are FY28 revenue and are not in this forecast.

Our Q2 Priorities — Meeting or Bettering the Projection

• Close the End of Year gap. Every dollar raised above the forecast's ~$142K in November–December directly reduces the projected deficit.
• Convert clinical demand into sessions. With 48 referrals in September, moving clients to active status faster is our largest controllable revenue lever.
• Keep cash decisions visible. A payroll cash calendar through December and a monthly "secured awards not yet earned" line so the board sees what is coming.

The ELT, with G&G's support, will keep the board informed of grant decisions, campaign pacing, and forecast changes each month.

Exhibits

The month-end cash chart, Q1 actual vs. budget, the balance sheet and net assets, revenue by stream, expected foundation receipts, and the Q1 program scorecard are in the Appendix at the end of this page.

The Fundraising LandscapeWhat Is Happening (and What Isn't)

Money is still moving, but it is coming from fewer people, government dollars are less certain, and competition for foundation grants is up. Year-end giving in Colorado is the bright spot.

Nationally

• Giving is growing, slowly. Americans gave an estimated $617.2B in 2025, up 5.7% (about 3% after inflation). Individuals gave $394.2B, about 64% of the total, but individual giving grew only 1.4% after inflation; bequests (+20%) did much of the lifting. (Giving USA 2026 via Foundation Source)
• Fewer donors, more dollars. In Q1 2026, dollars raised rose 4.3% while the number of donors fell 0.8%. Donor retention sits at 18%, only the smallest donors ($1–$100) declined, and new-donor counts keep falling; growth is coming from existing donors. (Fundraising Effectiveness Project)
• Demand is up and government funding is shaky. Nearly three-quarters of nonprofit CEOs report rising demand, and about 29,000 nonprofit jobs were cut last year as federal funds were cut or delayed. (Center for Effective Philanthropy via KUNC, May 2026)
• Federal afterschool funding is not settled. 21st Century Community Learning Centers held at $1.33B for FY26, but the Administration's FY27 proposal would eliminate it; a House committee bill keeps it, and the government is on a continuing resolution through December 11. (Afterschool Alliance)
• New tax rules start this year. For 2026, people who don't itemize can deduct up to $1,000 (single) or $2,000 (joint) in cash gifts to charities like CLF (not donor-advised funds). Itemizers lose the first 0.5% of income in deductions, top earners' benefit is capped at 35%, and corporations face a new 1% floor. Donors 70½+ can give up to $111,000 directly from an IRA. (CPA Practice Advisor)

In Colorado

• Colorado is generous, and Colorado Gives Day keeps growing. Coloradans gave about $6.1B in 2025. Colorado Gives Day 2025 set a record: $56.5M from 102,835 donors (+8%), with $100 the most common gift and human services the top category ($10.8M); over 7,000 new monthly donors signed up with a match. (ColoradoBiz, Dec 2025; ColoradoBiz, July 2026)
• The state budget is tight, and Medicaid took the biggest hit. Lawmakers closed a roughly $1.5B shortfall for FY26–27, including a 2% cut to Medicaid provider reimbursement rates and cuts to the Behavioral Health Administration; state reserves were lowered to 13%. Our Medicaid billing is directly exposed. (Colorado Sun)
• Costs are squeezing donors and nonprofits alike. Colorado is now the fourth-most-expensive state. Colorado nonprofit leaders report declining individual giving, scarce general operating support, and trouble building reserves (survey of mid-2024 conditions). (CU Denver School of Public Affairs)
• Our 50% tax credit is still in place. The Colorado Child Care Contribution Credit remains available for 2026 gifts under current law (through tax year 2027); a 10-year extension bill was introduced this session. (HB26-1004)

Across the Denver Metro

• The city is holding flat, not restoring. Denver's proposed 2027 general fund is $1.68B, up just 1%. Cuts from the past two years (including a $200M+ shortfall last year) will largely stay, and property tax revenue is projected to drop 3.4%; expect city-funded contracts like OCA to stay flat and slow to pay. (Axios Denver)
• Local grants are smaller and more crowded. A Denver youth nonprofit reported competing against four times as many organizations for grants, with an award that was $50K a few years ago now closer to $10K, and local leaders say donors are pulling back because of their own finances. (Denver7, Dec 2025)
• New pools are emerging. Statewide afterschool leaders are organizing around Fund IRL Colorado and Meta settlement dollars for out-of-school time, which Josh and I are tracking.

What This Means for CLF

1. Our existing donors are our campaign. Growth nationally is coming from people who already give, so named portfolios, personal asks, and stewardship matter more this year than broad acquisition.
2. Colorado Gives Day is the right stage. It is growing while other giving slows, and a match plus a recurring-gift ask fits how Coloradans give.
3. Our government and Medicaid lines carry the most outside risk. A 2% state rate cut, a flat city budget, and uncertain federal afterschool funding raise the stakes on individual giving and earned revenue.
4. We have better talking points than usual. Every donor can deduct up to $1,000/$2,000 in cash gifts in 2026, many can stack the 50% Colorado credit on top, and donors 70½+ can give from their IRA.

Part 2End of Year Giving Campaign Brief

The campaign runs November 1 – December 31, 2026: Colorado Gives Day early giving opens November 1, and Colorado Gives Day is December 8. The objective is to grow year-end individual giving by deepening gifts from existing donors, re-engaging recently lapsed donors, and inviting new ones.

The Goal Ladder

Pacing toward $250K (cumulative from 10/1): $70K by 12/2 · $160K by 12/9 (Colorado Gives Day week) · $250K by 12/31. The weekly board recap reports against these marks, so you'll always know whether we're ahead or behind.

Four Years of Colorado Gives Day (November 1 – December 15)

Last year was our best Colorado Gives Day season, but it came from fewer, larger gifts made offline, while online giving, matches, and donor counts all slipped.

• Offline gifts drove 2025. $80K came offline, up from about $30K, so a handful of relationships carried the year; personal asks to the top 25 matter most.
• Retention is our leak. Only 34 of 2024's 145 donors gave again (about 23%), only a bit better than the national 18%; the thank-you calls and stewardship in this plan are aimed right at it.
• Matches have shrunk. Matching dollars fell from $35K to $12.5K; this year's $40K in matches already more than triples last year's.
• Board outreach dropped off. Four board members called or emailed donors last year, down from nine in 2023; the pathways sign-up is how we change that.

Source: CLF CGD Performance Tracking (Development team).

The Calendar

Matching Gifts

A match is our strongest launch message, and our $20K kick-off match lets us open November 1 with "every gift doubled." Because it is an annual gift, it is likely already in our forecast; it multiplies new giving rather than adding to it. If more board members join the match pool before November 1, we can announce a larger number on day one.

How Board Members Can Carry the Campaign

We are inviting participation based on your interest and capacity, not a uniform ask, and CLF provides all the copy, graphics, links, and tracking. We ask every board member to:

• Make your own gift or join the board match before November 1, so we can say 100% of our board has given.
• Choose at least two pathways: personal text messages, phone calls, emails to your network, social media shares, or hosting a small gathering (a "host-a-home" salon or a coffee briefing). Signing up matters: based on the pathways you choose, Jennifer will send you ready-to-use copy each week, matched to our social posts and that week's focus.
• Name 3–5 people in your network who should hear from you between November 1 and December 31; we will build their outreach into your toolkit.
• Read the weekly board recap (total raised, left to goal, next week's focus) and act on the one ask in it.
• Join a thank-you call block in mid-December. Calls with no ask are what turn first gifts into second gifts.
• Open a door for the 2027 Gala. We're confirming our annual sponsors ourselves; where we need you is introductions to new corporate partners (sponsorships run $7,500–$50,000, with $100K committed as our year-end goal).

The Colorado Child Care Contribution Credit: A Closing Tool

Colorado residents can receive a 50% state tax credit on qualifying gifts to CLF, which cuts the true cost of a gift in half. This year any donor whose giving adds up to $100 or more is eligible, and the amount is cumulative, so a $10/month recurring donor qualifies. That makes it a message for every donor, not just major ones, and a strong close for the December 29–31 sprint.

Illustrative only, using the same assumptions as the 2027 Gala sponsorship packet (Colorado savings ~4.6% and federal savings ~33% of the gift). Actual savings depend on each donor's tax bracket and whether they itemize; in 2026, non-itemizers can deduct up to $1,000 (single) or $2,000 (joint) in cash gifts. Donors should confirm with their own tax advisor.

Guiding Questions

Part 1Our Financial Reality

1. What the numbers tell us. Q1 landed close to plan, and the rest of the year now hinges on November and December. Looking at the cash curve and the goal ladder, what should the board feel confident about, and where does LiftED most need the board's help this fall?
2. Our revenue mix. This year, foundations are running ahead of budget, while government and Medicaid face outside pressure and individual giving swings the year. What would a healthier mix look like for LiftED three years from now, and which piece is closest to within our own reach? What have you seen work at other organizations?
3. FY28 posture. Our earned-revenue proposals (KIPP, CCD, RFMA renewal) are FY28 revenue, and the FY28 budget skeleton is due to the ELT by 12/16. Should FY28 be built to stabilize, to replace the reserve cushion, or to grow, and what would you need to see to approve each?

Part 2End of Year Giving

1. What are you hearing? Given the landscape briefing, what are you hearing from your own networks about giving this year, and how should that shape our message?
2. The goal. Our public goal is $150K and our internal goal is $250K. What would it take for this board to close the ~$108K gap between the forecast and the internal goal?
3. Your commitment. What is your personal gift or match, and which two engagement pathways will you take on?
4. Your network. Who are the 3–5 people in your life who should hear about LiftED from you this season?
5. Leading with a match. Can we grow the board match pool before November 1 so we launch with a bigger number?

Decisions We Want to Leave With

• A confirmed board match amount, and a target of 100% board giving by December 31.
• Every board member signed up for at least two engagement pathways and 3–5 names.
• Agreement on how we frame the goal publicly ($150K) and internally ($250K).
• The monthly financial view the board wants (including "secured awards not yet earned") going forward.
• At least one new corporate introduction per board member for 2027 Gala sponsorship.

Notes on the Data

Q1 actuals and the balance sheet come from G&G's July–September FY27 statements (accrual basis, run 10/15/26); where G&G's prior-year comparison tab shows slightly different expense and investment figures, we used the Budget vs. Actuals tab, which ties to the Statement of Activity. Full-year figures come from G&G's FY27 working forecast (updated 10/15/26). Program figures come from the FY27 Rocks + Scorecard and the Q1 Quarterly Department Readouts; grant timing from the FY27 Grant–Cash Flow Forecast; campaign details from the FY27 Colorado Gives Day & Year-End Campaign Working Plan. Landscape sources are linked inline in that section.

AppendixFinancial Exhibits

The detail behind Part 1, for board members who want to go deeper. Q1 actuals and the balance sheet are from G&G's July–September FY27 statements; full-year figures are from G&G's FY27 working forecast (updated 10/15/26).

Exhibit AMonth-End Operating Cash, FY27

Forecast months below $0 are bridged with transfers from reserve accounts or by the timing of grant receipts. This has historically been our practice: the first four months of our fiscal year (July–October) require these transfers because individual giving and foundation awards arrive later in the year. Transfers to date: ~$75K in late September and $102K on October 9 for the October 15 payroll.

Exhibit BQ1 FY27: Actual vs. Budget vs. Last Year

Exhibit CBalance Sheet + Net Assets (September 30, 2026)

The designation notes are open questions, not conclusions: the September statements show balances but not which brokerage account holds which fund or what each may be used for, and we are confirming both with G&G and SRS before the meeting.

Exhibit DFY27 Revenue by Stream: Budget vs. G&G Forecast

The Gala raise is reported as committed, not collected; only revenue recognized in the financial statements counts toward actuals.

Exhibit EExpected Foundation Receipts

Exhibit FQ1 Program Scorecard (The Financial Connection)