Tax Year 2012 – Annual Report

TABLE OF CONTENTS 2012 Annual Report

2

3 Letter from the Executive Director and Chairman of the Board 4 Our Mission, Purpose, Vision, History 5 2012 Statistics 6 Regional Hubs 7 Key Information 8 Southwest TLC/Lone Eagle Programs 9 Board of Directors 10 Audited Financial Statement

Letter from the Executive Director and Chairman of the Board The Veterans we serve live in communities across our great nation. They are the courageous men and women who paved the way for the liberties and freedoms we have today. They are the WWII, Korean, Vietnam and terminally-ill Veterans that the Honor Flight Network proudly serves. We are pleased to report that in the fiscal year 2012, the Honor Flight Network has served these deserving men and women more effectively than ever. Consider these accomplishments:  11 New Honor Flight Hubs opened to expand our reach to Veterans  Serving in 7 new states to serve more Veterans  Percentage of our Honor Flight Hubs began to fly Korean Veterans  Increased financial assistance from Headquarters to our local Honor Flight Hubs to carry out our mission Financially, Honor Flight Network is on solid ground. We are invested in the lives of our deserving Veterans and seeing that they are honored before it is too late. The work that lies ahead is just as important as our history. We realize that time is of the essence. Thousands of lives have been touched, but over 20,000 deserving Veterans are waiting their opportunity to be honored by experiencing an Honor Flight trip. Unfortunately, countless deserving, but aging Veterans will not make it to our next Flying Season. To those who support our mission, we offer our profound gratitude. And, to those who will benefit from our work for many years to come, we offer our undiminished devotion.

Sincerely, 2012 Annual Report

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Diane Gresse, Executive Director

James McLaughlin, Chairman of the Board of Directors

Honor Flight Our Mission Transport America's veterans to Washington, D.C. to visit those memorials dedicated to honor their service and sacrifices.

Our Purpose To raise awareness and enlist the public’s aid to honor our deserving Veterans to visit their memorials in Washington, D.C.

Our Vision To show appreciation to every deserving Veteran to experience a memorable trip of a lifetime.

Our History Honor Flight began as a way to honor WWII Veterans, many of whom had no other means to visit their long awaited memorial of over sixty years, an opportunity to assist in the process with transport to our Nation’s Capital.

2012 Annual Report

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11 New Honor Flight Hubs Serving 7 new states

Flying WWII, Korean, Vietnam and Terminally-ill Veterans

2012 and Beyond

Honor Flight Network Results - 2012: Veterans Flown: Guardians Flown: Combined Total:

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14,500 31,924

Since the inception of Honor Flight - May, 2005: Veterans Flown: Guardians Flown: Combined Total:

2012 Annual Report

17,424

98,772 53,684 152,456

REGIONAL HUBS

Honor Flight, Inc. has established the Honor Flight Network to spread the mission and values associated with our founding to community based, independent regional Honor Flight groups called Hubs throughout the United States. Regional Hubs are established with the assistance of and at the direction of Honor Flight, Inc. They are tasked to fundraise with and recruit local donors and volunteers to coordinate with Honor Flight, Inc. to conduct as many trips and transport as many Veterans as possible. Honor Flight, Inc. assists local hubs with trip coordination, insurance, fundraising support, and Southwest Airlines Green Pass distribution or Hub Assistance Grants, as needed. To ensure as many Veterans are transported to see their Memorials as possible, it is vital that we establish Regional Hubs in the areas of the country that are not yet served or underserved. This is a key strategic focus of Honor Flight, Inc.

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Honor Flight, Inc.

Key Information: Approximately 305 trips by Regional Hubs during 2012

121 Regional Hubs serving 41 States + $334,000 in Southwest Airlines airfare donations distributed in 2012 17,424 Veterans Transported in 2012 14,500 Guardians Accompanied Veterans in 2012 Goal for FY 2013 is to transport more than 20,000 Veterans Network Wide

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Honor Flight , Inc.

Honor Flight, Inc. Southwest TLC/Lone Eagle Programs Key Information: Lone Eagle - a Veteran whose application has been in our National Headquarters office for one year or more, yet they do not live close to one of our existing Honor Flight hubs. TLC, “Their Last Chance” - a Veteran that has been diagnosed with a terminal illness that, according to the veteran’s private physician, is likely to limit the Veteran’s life to 12 months or less. 10 trips during 2012 Average cost per Veteran: $600 including Southwest Airlines airfare donations 207 Veterans Transported in 2012 291 Guardians Accompanied Veterans in 2012

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BOARD OF DIRECTORS James McLaughlin Chairman of the Board

Dave Bauer Board Member

Buddy Johnson Vice-Chairman of the Board/Secretary

Randy Ark Board Member

George Simpson Treasurer

Scott Frasure Board Member

Earl Morse Board Member

Robert Simmons Board Member

Brian Spencer Board Member

Diane Gresse Board Member

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2012 FINANCIALS - TABLE OF CONTENTS

HONOR FLIGHT, INC. (A Not-For-Profit Organization)

FINANCIAL REPORT Fiscal Year Ending December 31, 2012

FINANCIAL STATEMENTS 11 Statement of Financial Position 12 Statement of Activities 13-14 Statement of Functional Expenses 15 Statement of Cash Flows

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Honor Flight, Inc. Statements of Financial Position December 31, 2012 and October 31, 2011 Assets

2012

Current assets: Cash and cash equivalents

$

Restricted cash Accounts receivable Deferred airfare expense Prepaid expenses Inventory

2011 824,767 88,364 76,000 45,597 1,034,728

Property and equipment: Furniture and equipment Vehicles

Less accumulated depreciation

Other assets: Beneficial interest in trust

488,344

43,277 33,225

41,273 33,225

76,502 (52,890)

74,498 (35,599)

23,612

38,899

469,000 350

Security deposit

418,233 341 9,600 14,486 45,684

350

469,350

350

$

1,527,690

527,593

$

50,064 4,233

8,014 4,583

54,297

12,597

963,460 509,933

514,996 -

Liabilities and Net Assets Current liabilities: Accounts payable Accrued compensation and taxes

Net assets: Unrestricted Temporary restricted

1,473,393 $

2012 Annual Report

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1,527,690

514,996 527,593

Honor Flight, Inc. Statements of Activities and Changes in Net Assets Fourteen Months Ended December 31, 2012 and Year Ended October 31, 2011 2012

Unrestricted Support and Revenue Public support: Contributions Gifts in kind Net assets released from restrictions

$

Revenue: Program income Annual conference revenue Merchandise sales, net Miscellaneous revenue Interest income

2011

840,785 397,150 47,431

672,064 561,156 -

1,285,366

1,233,220

500,008 13,275 7,352 1,970 127

484,466 6,317 (731) (536) -

522,732

489,516

Total unrestricted support and revenue

1,808,098

1,722,736

Unrestricted Expenses Expenses: Program expenses Management and general expenses Fundraising expenses

1,242,015 85,035 32,584

1,272,325 110,274 46,905

Total unrestricted expenses

1,359,634

1,429,504

Increase in unrestricted net assets

448,464

293,232

Temporary Restricted Revenue Contributions

557,364

-

(47,431)

-

Net assets released from restrictions

509,933

Increase in temporary restricted net assets

-

Change in net assets

958,397

293,232

Net assets, beginning of year

514,996

221,764

1,473,393

514,996

Net assets, end of year

2012 Annual Report

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$

Honor Flight, Inc. Statement of Functional Expenses Fourteen Months Ended December 31, 2012

Program Services Program expenses: Bus transportation costs Airfare expense Lodging costs Hub assistance grants Strategic planning conferences Donations Meals Supplies and equipment RV program costs Miscellaneous

$

Other expenses: Salaries and wages Travel Business fees and expenses Occupancy Website Depreciation Postage and shipping Payroll tax expense Telephone Office supplies and expenses Business insurance Professional services Printing and publications Miscellaneous Fundraising expenses

Total expenses

2012 Annual Report

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$

364,850 340,572 79,937 72,570 67,431 66,803 14,566 11,589 5,695 2,299 1,026,312

Mangement & General

Fundraising

Total

-

-

364,850 340,572 79,937 72,570 67,431 66,803 14,566 11,589 5,695 2,299 1,026,312

122,393 16,881 13,528 12,968 10,337 10,192 9,657 6,932 5,692 4,133 2,990 215,703

24,479 3,376 19,888 18,474 2,594 2,067 2,038 1,932 1,386 1,138 6,836 827 85,035

16,319 2,251 4,510 1,729 1,378 1,359 1,288 924 759 551 1,516 32,584

163,191 22,508 19,888 18,474 18,038 17,291 13,782 13,589 12,877 9,242 7,589 6,836 5,511 2,990 1,516 333,322

1,242,015

85,035

32,584

1,359,634

Honor Flight, Inc. Statement of Functional Expenses Year Ended October 31, 2011

Program Services Program expenses: Airfare expense Bus transportation costs Lodging costs Supplies and equipment Meals Hub assistance grants RV program costs Miscellaneous

$

Other expenses: Salaries and wages Travel Business fees and expenses Donations Depreciation Occupancy Miscellaneous Website Payroll tax expense Postage and shipping Telephone Professional services Bookkeeping fees Office supplies and expenses Printing and publications Fundraising expenses Business insurance

Total expenses

2012 Annual Report

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$

550,229 383,855 80,858 54,619 11,629 10,500 3,752 2,434 1,097,876

Mangement & General

-

Fundraising

-

Total

550,229 383,855 80,858 54,619 11,629 10,500 3,752 2,434 1,097,876

84,918 19,375 1,489 19,507 14,616 3,099 5,200 8,096 3,904 6,805 4,863 1,845 732 174,449

35,383 6,458 10,269 2,891 16,140 12,698 1,446 3,374 3,904 2,268 7,648 6,000 858 205 732 110,274

21,229 10,021 7,800 2,024 3,904 1,927 46,905

141,530 25,833 21,779 19,507 17,507 16,140 15,797 14,446 13,494 11,712 9,073 7,648 6,000 5,721 2,050 1,927 1,464 331,628

1,272,325

110,274

46,905

1,429,504

Honor Flight, Inc. Statements of Cash Flows Fourteen Months Ended December 31, 2012 and Year Ended October 31, 2011 2012 Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net assets provided by operating activities: Depreciation Loss on disposal of fixed assets Effects of changes in assets and liabilities: Accounts receivable 87 (12,241) Deferred airfare expense 42,800 Prepaid expenses Beneficial interest in trust Accounts payable Accrued compensation and taxes 401K withheld

$

958,397

293,232

17,291 -

17,507 10,304

341

Net cash provided by operating activities Cash flows from investing activities: Purchases of property and equipment Net cash used in investing activities

2011

(341) Inventory (66,400)

14,486 (469,000) 42,050 (350) -

(7,929) (48,050) (1,978) (2,440)

496,902

290,864

(2,004)

(10,021)

(2,004)

(10,021)

Increase in cash and cash equivalents

494,898

280,843

Cash and cash equivalents, beginning of year

418,233

137,390

913,131

418,233

Cash and cash equivalents, end of year

$

Reconciliation to Statement of Financial Position: 2012 Cash and cash equivalents Restricted cash

$ $

2012 Annual Report

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824,767 88,364 913,131

2011 418,233 418,233

“We can’t all be heroes. Some of us have to stand on the curb and clap as they go by.” - Will Rogers Honor Flight Network, 300 East Auburn Avenue, Springfield, OH 45505 (937) 521-2400 honorflight.org