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FINANCIAL STATEMENTS
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Financial Statements
We have audited the accompanying financial statements of the American Institute of Graphic Arts
(AIGA), which comprise the statements of financial position as of September 30, 2016 and 2015,
and the related statements of activities and cash flows for the years then ended, and the related notes
to the financial statements.
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 audit 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 auditor considers internal control relevant to AIGAs
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 AIGAs 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.
(Continued)
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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 the American Institute of Graphic Arts as of September 30, 2016 and 2015, and
the related statements of activities and cash flows for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
September 30,
2016 2015
ASSETS
Cash and cash equivalents $ 829,121 $ 175,636
Accounts receivable 329,348 136,123
Prepaid expenses and deposits 576,384 676,710
Investments 16,580,347 19,022,383
Property and equipment, net 2,148,927 1,901,733
$ 20,464,127 $ 21,912,585
Net assets
Unrestricted
Undesignated 3,798,791 5,115,406
Board designated 13,159,266 13,265,057
16,958,057 18,380,463
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AMERICAN INSTITUTE OF GRAPHIC ARTS
STATEMENT OF ACTIVITIES
Temporarily Permanently
Unrestricted Restricted Restricted Total
Revenues
Membership dues $ 2,709,673 $ - $ - $ 2,709,673
Programs 2,441,249 - - 2,441,249
Grants and contributions 47,377 59,505 - 106,882
Special events (net of direct donor
benefits of $58,960) 201,400 - - 201,400
Investment return 1,704,192 5,714 - 1,709,906
Miscellaneous 239,399 - - 239,399
Net assets released from restrictions 165,466 (165,466) - -
Total revenues 7,508,756 (100,247) - 7,408,509
Expenses
Program services 7,502,035 - - 7,502,035
Management and general 1,081,917 - - 1,081,917
Fund-raising 347,210 - - 347,210
Total expenses 8,931,162 - - 8,931,162
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AMERICAN INSTITUTE OF GRAPHIC ARTS
STATEMENT OF ACTIVITIES
Temporarily Permanently
Unrestricted Restricted Restricted Total
Revenues
Membership dues $ 2,873,202 $ - $ - $ 2,873,202
Programs 1,447,010 - - 1,447,010
Contributed rent 223,088 - - 223,088
Grants and contributions 16,284 68,383 - 84,667
Special events (net of direct donor
benefits of $92,770) 176,400 - - 176,400
Investment return (444,947) 4,139 - (440,808)
Miscellaneous 238,580 - - 238,580
Net assets released from restrictions 90,802 (90,802) - -
Total revenues 4,620,419 (18,280) - 4,602,139
Expenses
Program services 5,423,083 - - 5,423,083
Management and general 808,426 - - 808,426
Fund-raising 266,591 - - 266,591
Total expenses 6,498,100 - - 6,498,100
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AMERICAN INSTITUTE OF GRAPHIC ARTS
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AMERICAN INSTITUTE OF GRAPHIC ARTS
1 - ORGANIZATION
American Institute of Graphic Arts (AIGA), the professional association for design, was
founded in 1914. Its mission is to advance design as a professional craft, strategic advantage and
vital cultural force. At the national level, AIGA pursues its mission by connecting practitioners,
enthusiasts and patrons through regional, national and global events, and by creating and curating
content that:
Establishes criteria for design education that meet the needs of the profession
As of October 1, 2016, AIGA had 24,242 members: 5 Trustees, 235 Design Leaders, 7,253
Sustaining Members, 3,859 Supporters and 12,890 Contributors.
AIGA had 71 chapters as of October 1, 2016. The accompanying financial statements do not
include the financial position or the change in net assets and cash flows of these chapters, each of
which is an autonomous corporation organized under the laws of the state in which it is located.
AIGAs revenues are primarily derived from membership dues and various programmatic
activities. AIGA offered the following programs during its 2016 fiscal year:
AIGA Awards Gala, April 15, 2016, New York City. Five medalists were honored for
their lifes work and overall contribution to design.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
1 - ORGANIZATION (Continued)
Business Perspectives for Creative Leaders offered by AIGA and the Yale School of
Management, July 24-29, 2016, Yale School of Management, New Haven, CT (46
participants graduated). In 13 years, more than 500 participants have graduated from the
program.
Creative Lab a program designed to educate, inspire and future proof the future pool of
creative practitioners within the design community.
AIGA Design Conference, October 8-10, 2015, New Orleans, LA. More than 1,800
designers attended the annual AIGA Design Conference.
Eye on Design, AIGAs online publication, turns a well-trained eye on the best new work
from the worlds leading emerging and established designers. 620 original articles on
issues facing design and designers plus the first two videos in the Where Designers
Work series were published. A bi-weekly newsletter is published and distributed to
90,000 subscribers for a total of 1.5 million unique visitors and 2.6 million page views.
Design for Good In the spring of 2016, designers participated in a focus group in
Raleigh, NC to develop a strategic vision to support and recognize the increasing number
of designers who play a catalytic role in communities through projects that create positive
social impact.
GOTV (Get Out The Vote) campaign 727 posters were submitted from designers aimed
at increasing voter participation, a significant increase in participation since the
campaigns inception in 2000. In collaboration with key members of AIGA board of
directors and actor James Edward Olmos, a GOTV video was produced that went viral,
reaching millions of households, raising AIGAs visibility in the press. Additionally, the
posters adorned bus stops, billboards and other sites across the country.
AIGA Design Archives 75 items from case studies and seven research guides were
added. Over the years, 7,130 items have been gifted to the Denver Art Museum (The
DAM), representing part of the largest and most comprehensive holdings of
contemporary American communication design collections in the world. The materials
reflect design trends from many of the leading design firms and individuals in the U.S.
between 19802012.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
1 - ORGANIZATION (Continued)
Diversity & Inclusion (D&I) AIGA held a D&I initiative in fiscal year 2016, featuring
18 events/programs held at the chapter level across the nation, presentations at the
Leadership Retreat and Design Conference, and the production of five videos.
Deferred revenue and prepaid expenses were recorded for the AIGA Design Conference held in
Las Vegas, NV on October 17-19, 2016.
Unrestricted net assets - Unrestricted net assets represent the portion of expendable funds
available for the support of all AIGAs operations.
Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that may
or will be met, either by action of AIGA and/or the passage of time.
When a restriction expires, that is, when a stipulated time restriction ends or purpose
restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net
assets and reported in the statement of activities as net assets released from restrictions.
Permanently restricted net assets - Net assets subject to donor-imposed stipulations that must
be maintained permanently by AIGA. Generally, the donors of these assets would permit
AIGA to use all or part of the income earned on any related investments for general or specific
purposes.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America (GAAP) requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
Investments
Investments are stated at fair value. GAAP establishes a framework for measuring fair value.
That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). Under GAAP, the three levels of the fair value
hierarchy are as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that AIGA has the ability to access.
Inputs other than quoted prices that are observable for the asset or liability; and
If the asset or liability has a specified (contractual) term, the Level 2 input must be
observable for substantially the full term of the asset or liability.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
Membership dues are allocated to the period to which they relate and are recognized accordingly.
Membership dues billed and received in advance are reflected as deferred revenue in the
statements of financial position.
Volunteer officers and committees that serve without remuneration play an important role in the
functioning of AIGA. No amounts have been reflected in the financial statements for such
donated services, as they do not meet the criteria for recognition.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
Income Taxes
AIGA is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code
and is classified as a publicly supported organization as described in Section 509(a).
Subsequent Events
These financial statements were approved by management and available for issuance on
February 17, 2017. Management has evaluated subsequent events through this date.
September 30,
2016 2015
September 30,
2016 2015
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AMERICAN INSTITUTE OF GRAPHIC ARTS
Investment expenses were $103,144 and $79,052 in fiscal 2016 and 2015, respectively. AIGA
invests in various investment securities in accordance with a board-adopted investment risk
strategy. Investment securities are exposed to various risks such as interest rate, market, and
credit risks. Due to the level of risk associated with certain investment securities, it is at least
reasonably possible that changes in the values of investment securities will occur in the near term
and that such changes could materially affect the amounts reported in the statements of financial
position.
September 30,
2016 2015
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AMERICAN INSTITUTE OF GRAPHIC ARTS
6 - DEFERRED REVENUE
September 30,
2016 2015
Board designated funds are funds that have been designated by board action to be used for
specific purposes. The AIGA Legacy Fund is intended to be spent on special projects at the
boards request and authorization. Scholarship Funds support AIGA scholarship programs; the
2020 Vision Fund and AIGA Innovate represent funds to be spent on projects that advance
AIGAs strategies for 2020 and encourage innovative programs with the potential for adoption by
many chapters, to be spent prior to 2020. The AIGA Endowment, which is designated and not
restricted, is intended to serve the long-term financial interests of AIGA; funds are not expected
to be appropriated in the foreseeable future.
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AMERICAN INSTITUTE OF GRAPHIC ARTS
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AMERICAN INSTITUTE OF GRAPHIC ARTS
Permanently restricted net assets are restricted to investments held in perpetuity, the income from
which is expendable to support the Henry Wolf AIGA Scholarships.
10 - RETIREMENT PLAN
AIGA has a defined contribution retirement plan that covers substantially all full-time employees.
Contributions, which are made entirely by AIGA, will vary each year and are determined by the
Executive Director, as part of AIGAs budget, approved annually at the Board of Directors
meeting. Expense for the years ended September 30, 2016 and 2015 was $75,927 and $66,708,
respectively.
AIGA provides management and personnel services to AIGAs New York Chapter. Fees and
expenses billed by AIGA were as follows:
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AMERICAN INSTITUTE OF GRAPHIC ARTS
On November 6, 2014, AIGA entered into a 125 month operating lease with 233 Broadway
Owners, LLC, pursuant to which AIGA will lease a portion of the 17th floor office space located
at 233 Broadway, New York, New York. The lease contains a rent abatement for five months
which is straight-lined over the life of the lease. Future minimum rental payments, including
escalations, under the operating lease are summarized as follows:
Year Ending
September 30,
2017 $ 414,776
2018 392,315
2019 445,201
2020 456,331
2021 471,624
Thereafter 2,029,993
$ 4,210,240
AIGA maintains a line of credit (Portfolio Loan Agreement or PLA) with a bank. The
amount of the line of credit is based on a percentage of investment assets pledged by AIGA on
which the line of credit is secured. At September 30, 2016, the line of credit amounted to
$1,000,000. The interest rate is determined by a variable rate (Corresponding PLA Index) plus
3.0%. The interest rate at September 30, 2016 was 3.53%. There were no amounts outstanding
under this line of credit at September 30, 2016 and 2015. Interest expense for fiscal 2016 and
2015 was $2,429 and $11,162, respectively.
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