2019-20 Fiscal Year in Review
The Tech Interactive has been closed to the public since March 13, 2020, due to the COVID-19 pandemic. Total revenue, including in-kind contributions, for the fiscal year ending June 30, 2020, was $47.9 million, with donations accounting for $19.6 million, or 41% of total revenue. Earned revenue was $3.4 million, or 7% of total revenue; this includes general admission and IMAX ticket sales, memberships and facility rentals. Public support was $24.9 million, or 52% of total revenue; this includes a general operating subsidy and a one-time recognition of the beneficial interest of the donated Tech Interactive facility from the City of San Jose, worth $22.3 million.
After deducting expenses of $23.4 million, the net surplus was $24.5 million. The majority of the surplus comes from the recognition of the donated facility and is not in cash.
The unrestricted beginning and ending cash balances for the fiscal year were $2.0 million and $5.9 million, respectively, and include a $2.0 million credit-line draw and $1.9 million from the federal government for a forgivable Coronavirus Aid, Relief, and Economic Security (“CARES”) Act Payment Protect Plan (“PPP”) loan. The operating reserve beginning and ending balances for the fiscal year were $5.5 million and $3.1 million, respectively, and are included in the unrestricted cash balances. The temporarily restricted cash beginning and ending balances for the fiscal year were $10.9 million and $13.7 million, respectively.
Some 72% of The Tech’s expenses were from education programs, 20% from marketing and administration, and 8% from fundraising. The $1.9 million PPP loan replaced $2.2 million of forecasted earned revenue that was lost due to the COVID-related closure; these funds allowed The Tech to keep staff employed for an extra quarter. Administration expenses were higher due to legal and consulting expenses related to the Park Habitat development project.
Our financial stewardship helped The Tech retain the highest possible four-star rating issued by Charity Navigator, one of America’s leading independent charity rating services.
*This figure includes a one-time recognition of the beneficial interest of the donated Tech Interactive facility from the City of San Jose, worth $22.3 million.
Annual endowment draws
The beginning and ending balances for The Tech’s endowment were $21.3 million and $21.5 million, respectively. Since 2014, The Tech has contributed all endowment draws to an operating reserve fund, to be used for expenses when financial performance is significantly weaker than expected. The operating reserve fund fiscal year-end balance was $3.1 million and is included in the unrestricted cash balances.