Answers in Genesis revenue declines by 50% in 2005

UPDATE (December 30, 2006): Please note that the 2005 Form 990 filing only covers January-June 2005 (as AiG changed to a July-June fiscal year in 2005), so the heading on this post is inaccurate. I've made an embarrassing mistake by failing to notice those dates on the very top of the first page of the Form 990, and I take responsibility for it. I apologize for the error. If you multiply each of the 2005 figures by two, you will get an approximation to the full-year numbers. While this still yields a decline in revenue from seminars, it shows an increase in overall revenue and donations--and an increase in many salaries, as well.

I've just been reviewing the 2005 Form 990 filing from Answers in Genesis of Kentucky, the first one filed since its split from Creation Ministries International in October 2005. (I've previously commented on their 2003 and 2004 Form 990's.) They have seen a huge drop in revenue, which appears to be largely due to a drop in overall donations from the public and decreased attendance at their seminars. They've been spending a lot of money on their creationism museum, and it looks like they are counting on it to be a growing, if not the primary, source of their future revenue. In response to this revenue decline, the senior staff have all taken significant cuts in pay. This drop in revenue is likely not attributable to the CMI split, since that didn't become public knowledge until the end of February 2006.

On to the details...

In 2004, Answers in Genesis of Kentucky (AiG-US) saw $10,423,222 in revenue.

In 2005, their revenue dropped to $5,429,923--a nearly 50% decline.

The specific revenue numbers show that donations dropped from $7,754,247 in 2004 to $3,978,239 in 2005, program service revenue (from seminars and "charter memberships" in their creationism museum) dropped from $629,644 in 2003 to $270,350 in 2004, and gross profits from sales of inventory (sales minus cost of goods sold) dropped from $2,025,619 in 2004 to $1,124,438. This suggests a decline in interest in what Answers in Genesis is selling. The only positive changes in their revenue picture were in sales of non-inventory assets (including securities), where they went from a $12,683 loss in 2004 to an $822 gain in 2005, and in "other revenue," where they went from $12,683 in 2004 to $13,798 in 2005.

To get more specific, AiG-US saw $414,265 in event registrations, $116,403 in "royalties and other revenue," and $98,976 in museum memberships in 2004, and $122,317 in "seminars" (apparently the same as event registrations) and $148,033 in "charter memberships" in 2005, so they have seen an increase in museum membership revenue. In 2005 "royalties" were listed as a separate income item, producing $39,119 in revenue, but it's not clear if that's an increase or a decline without knowing what "other revenue" contributed to the 2004 figure.

This is a reversal from years of growth--revenue from donations in earlier years was $5,189,344 in 2001, $6,066,719 in 2002, $7,240,646 in 2003, and $7,698,294 in 2004 (this is the number reported in the 2005 Form 990; it is $55,953 lower than the above number from the 2004 Form 990).

On the spending side of the ledger, total functional expenses went from $8,320,926 in 2004 to $5,038,225 in 2005. They have, wisely, considerably cut their salary expenses, from $926,837 for officers and directors and $2,852,301 for other salaries in 2004 to $369,068 for officers and directors and $1,918,300 for other salaries in 2005. Ken Ham's salary went from $121,764 in 2004 to $60,000 in 2005; CFO James Hatton's salary went from $81,000 to $42,500; General Counsel John Pence's salary went from $93,115 to $46,500; VP of Museum Operations Mike Zovath's salary went from $90,201 to $42,500; VP of Administration Kathy Ellis's salary went from $86,068 to $39,500; VP of Marketing and Media Dale Mason's salary went from $115,621 to $55,000; VP of Events Outreach Mark Looy's salary went from $85,615 to $42,500; and VP of Ministry Relations Carl Kerby's salary went from $65,112 to $40,568. COO Brandon Vallorani left the organization in September 2004 in events apparently related to the AiG/CMI split (about which I'll write more at a later time), so his 2004 salary of $90,344 did not reappear in 2005's expenses.

Despite this substantial decline in revenue, AiG-US still had an increase in net assets. It wasn't anything close to the $2,102,296 surplus they saw in 2004, but they still took in $391,698 more than they spent, bringing them to $11,673,847 in net assets (assets minus liabilities). They ended 2005 with $17,656,767 in assets (of which $14,311,948 is buildings and land) and $5,982,920 in liabilities. They have a cushion of $1,664,682 in cash and $2,602 in savings at the end of 2005, versus the $2,502,777 in cash and $10,104 in savings at the beginning of the year. Their inventories for sale have increased from $1,165,982 to $1,223,151, so it doesn't look like they're accumulating a huge backlog of unsold items. Their building is funded by a $3,500,000 mortgage from Fifth Third Bank, payable in three annual payments in 2005, 2006, and 2007; they made the first payment in 2005 and had a balance of $2,360,000 at the end of the year.

One person associated with AiG-US who seems to have done better in 2005 than in 2004 is board member and audit review committee member Tim Dudley. In statement 11 in the 2005 Form 990, it's reported that AiG-US purchased $485,565 in books and literature from New Leaf Publishing, the president of which is Tim Dudley.

You can find AiG-US's 2003 Form 990 here, their 2004 Form 990 here, and their 2005 Form 990 here. Anyone who finds anything else interesting in these, I welcome your comments.

They still make a whole lot more money than the National Center for Science Education, to which I urge readers to make a financial contribution.

Social event during SICB conference

The Society for Integrative and Comparative Biology (SICB) is holding its annual conference in downtown Phoenix next week, from January 3-7 at the Phoenix Convention Center and Hyatt Regency. The conference will include topics of interest to readers of this blog, including the session "Evolution Town Meeting: A Year After the Dover Decision" on the afternoon of Friday, January 5, and the session "Media Workshop: Hey, Wanna Read My Blog?" on Thursday, January 4, which will feature ScienceBloggers P.Z. Myers (Pharyngula), Grrl Scientist (Living the Scientific Life), and John Lynch (stranger fruit).

On the evening of Saturday, January 6, from 5:30 p.m. to 8 p.m. (during the SICB business meeting and prior to the SICB evening social event), Kat and I would like to invite readers of this blog and of Science Blogs to a social event at our home, which is near South Mountain, about 15 minutes from downtown. We would like to keep the event somewhat small (Kat has asked me to keep it to about 20 people), so RSVPs are required in order to get directions and specifics. To RSVP, please send an email to sicb at discord.org. If you will be attending the SICB conference, please let me know if you will need a ride or would be able to give others a ride.

UPDATE (January 7, 2007): Several attendees have reported on the event, with photos: Brent Rasmussen, P.Z. Myers, and John Lynch; Grrl Scientist, you're very welcome. Thanks to everyone who attended for the enjoyable company and conversation!

Bush administration's suppression of information it didn't like

Talking Points Memo has been collecting examples of information (website content, reports, studies, etc.) that the Bush administration has suppressed because they were somehow contrary to the administration's positions.

The list has become fairly lengthy. Here's what they've got so far:

* In March, the administration announced it would no longer produce the Census Bureau’s Survey of Income and Program Participation, which identifies which programs best assist low-income families, while also tracking health insurance coverage and child support.

* In 2005, after a government report showed an increase in terrorism around the world, the administration announced it would stop publishing its annual report on international terrorism.

* After the Bureau of Labor Statistics uncovered discouraging data about factory closings in the U.S., the administration announced it would stop publishing information about factory closings.

* When an annual report called “Budget Information for States” showed the federal government shortchanging states in the midst of fiscal crises, Bush’s Office of Management and Budget announced it was discontinuing the report, which some said was the only source for comprehensive data on state funding from the federal government.

* When Bush’s Department of Education found that charter schools were underperforming, the administration said it would sharply cut back on the information it collects about charter schools.

* The National Oceanographic and Atmospheric Administration (NOAA) has to date failed to produce a congressionally-mandated report on climate change that was due in 2004. Sen. John McCain (R-AZ) has called the failure an "obfuscation."

* The Environmental Protection Agency (EPA) recently announced plans to close several libraries which were used by researchers and scientists. The agency called its decision a cost-cutting measure, but a 2004 report showed that the facilities actually brought the EPA a $7.5 million surplus annually. (Thanks to Mark B. below.)

* On November 1st, 2001, President Bush issued an executive order limiting the public's access to presidential records. The order undermined the 1978 Presidential Records Act, which required the release of those records after 12 years. Bush's order prevented the release of "68,000 pages of confidential communications between President Ronald Reagan and his advisers," some of whom had positions in the Bush Administration. More here. (Thanks to Roger A. and nitpicker below.) Update: TPMm Reader JP writes in to point out that Bush did the same thing with his papers from the Texas governorship.

* A rule change at the U.S. Geological Survey restricts agency scientists from publishing or discussing research without that information first being screened by higher-ups at the agency. Special screening will be given to "findings or data that may be especially newsworthy, have an impact on government policy, or contradict previous public understanding to ensure that proper officials are notified and that communication strategies are developed." The scientists at the USGS cover such controversial topics as global warming. Before, studies were released after an anonymous peer review of the research. (Thanks to Alison below.)

* A new policy at the The U.S. Forest Service means the agency no longer will generate environmental impact statements for "its long-term plans for America's national forests and grasslands." It also "no longer will allow the public to appeal on long-term plans for those forests, but instead will invite participation in planning from the outset." (Thanks to libra below.)

* In March 2006, the Department of Health and Human Services took down a six-year-old Web site devoted to substance abuse and treatment information for gays and lesbians, after members of the conservative Family Research Council complained.

* In 2002, HHS removed information from its Web site pertaining to risky sexual behavior among adolescents, condom use and HIV.

* Also in 2002, the Federal Energy Regulatory Commission removed from its Web site a document showing that officials found large gaps in a portion of an aging Montana dam. A FERC official said the deletion was for "national security."

* In 2004, the FBI attempted to retroactively classify public information regarding the case of bureau whistleblower Sibel Edmonds, including a series of letters between the Justice Department and several senators.

* In October 2003, the Bush administration banned photographs depicting servicemembers' coffins returning from overseas.

* In December 2002, the administration curtailed funding to the Mass-Layoffs Statistics program, which released monthly data on the number and size of layoffs by U.S. companies. His father attempted to kill the same program in 1992, but Clinton revived it when he assumed the presidency.

* In 2004, the Internal Revenue Service stopped providing data demonstrating the level of its job performance. In 2006, a judge forced the IRS to provide the information.

* Also in 2004, the Federal Communications Commission blocked access to a once-public database of network outages affecting telecommunications service providers. The FCC removed public copies and exempted the information from Freedom of Information Act requests, saying it would "jeopardize national security efforts." Experts ridiculed that notion.

* In 2002, Bush officials intervened to derail the publication of an EPA report on mercury and children's health, which contradicted the administration's position on lowering regulations on certain power plants. The report was eventually leaked by a "frustrated EPA official."

* In 2003, the EPA bowed to White House pressure and deleted the global warming section in its annual "Report on the Environment." The move drew condemnations from Democrats and Republicans alike.

* Also in 2003, the EPA withheld for months key findings from an air pollution report that undercut the White House's "Clear Skies" initiative. Leaked copies were reported in the Washington Post.

* For more than a year, the Interior Department refused to release a 2005 study showing a government subsidy for oil companies was not effective.

* The White House Office of National Drug Policy paid for a 5-year, $43 million study which concluded their anti-drug ad campaigns did not work -- but it refused to release those findings to Congress. (Thanks to skeptic below.)

* In 2006, the Federal Communications Commission ordered destroyed all copies of an unreleased 2004 draft report concluding that media consolidation hurt local TV news coverage, which runs counter to the administration's pro-consolidation stance. (Thanks to Jim Tobias below.)

* After Bush assumed power in 2001, the Department of Labor removed from its Web site "Don't Work in the Dark -- Know Your Rights," a publication informing women of their workplace rights. (via the National Council for Research on Women)

* The Department of Labor also removed from its Web site roughly two dozen fact sheets on women's workplace issues such as women in management, earning differences between men and women, child care concerns, and minority women in the workplace. (via the National Council for Research on Women)

* In February 2004, the appointed head of the Office of Special Counsel -- created to protect government employees' rights -- ordered removed from a government Web site information on the rights of gay men, lesbians and bisexuals in the public workplace. (via the National Council for Research on Women)

* In early 2001, the Treasury Department stopped producing reports showing how the benefits of tax cuts were distributed by income class. (via the Tax Policy Center, from Paul Krugman)

Trump Mortgage off to a bad start

Trump Mortgage started business this April, with alleged seasoned pro E.J. Ridings appointed to head the organization. Ridings claimed that honesty was one of the differentiators for Trump Mortgage, but it turns out he's misrepresented his experience.

He claimed to be "a top executive at one of Wall Street's most prestigious investment banks," when in fact he was a retail stock broker for Morgan Stanley's Dean Witter Reynolds subsidiary for less than three months, and was only a registered broker for six days of that period. Ridings said he was an "established leader" at a leading New York mortgage boutique, but was only "a relatively minor player" at GuardHill Financial from June 2003 to April 2005, working as an entry-level mortgage originator. Ridings also claimed 15 years of experience in the financial industry, but all that anyone can dig up besides his Dean Witter time (that began in 1998) and his GuardHill position are in documents from the NY State Banking Commission which say he was also a day trader for two years and worked for a year at subprime lender Equity Funding prior to GuardHill. That's a total of less than six years of financial experience.

Ridings claims he also had financial experience in his earlier jobs--running a company that sold nutritional supplements and health drinks, and a cleaning service.

Trump Mortgage has lost six residential mortgage professionals in the last six months, and may not reach $1 billion in residential mortgage originations, despite Ridings predicting that they would hit $3 billion in 2006.

The mortgage business is not a business I'd want to be in right now, as the U.S. housing bubble deflates.

Charitable giving: conservatives vs. liberals, religious vs. secular

Matt S. at The Only Republican in San Francisco quotes from a Scientific American column by Michael Shermer of the Skeptics Society to argue that conservatives are more generous than liberals:

Syracuse University professor Arthur C. Brooks argues in Who Really Cares (Basic Books, 2006) that when it comes to charitable giving and volunteering, numerous quantitative measures debunk the myth of "bleeding heart liberals" and "heartless conservatives." Conservatives donate 30 percent more money than liberals (even when controlled for income), give more blood and log more volunteer hours. In general, religious people are more than three times more generous than secularists to all charities, 14 percent more munificent to nonreligious charities and 57 percent more likely than a secularist to help a homeless person. In terms of societal health, charitable givers are 43 percent more likely to say they are "very happy" than nongivers and 25 percent more likely than nongivers to say their health is excellent or very good.

Matt says that, even though he's not religious, he admires people of faith because of their morals, their value for community, and that "they walk the talk when it comes to generosity and tolerance." Further, he concludes, "Faith, ultimately, is about optimism. Perhaps this is why I think it's worth defending."

He's got a point, but Shermer's piece is somewhat more equivocal about the evidence, observing that "Religious social capital leads to charitable generosity and group membership but does comparatively worse than secular social capital for such ills as homicides, STDs, abortions and teen pregnancies."

I don't think there's any disputing the value of community and mutual aid, nor that the secular have had a harder time promoting those values, in part due to the fact that we are fewer in number and widely dispersed. But the nonreligious have made some very dramatic philanthropic contributions which are likely to have a much greater beneficial effect than any church tithing will ever have.

The Best of George W. Bush, 2006

From the Jimmy Kimmel Show.

Gerald Ford dead today at the age of 93

Remember this Dana Carvey bit on Saturday Night Live from 1996?

Ed Brayton responds to Krauze and Sternberg

Ed Brayton's detailed dissection of the Sternberg affair (see Ed's post here and Steve Reuland's here) has been responded to by Krauze at the Telic Thoughts intelligent design blog, including a response by Richard Sternberg.

Ed Brayton responds quite ably.

Kodak: Winds of Change

This was allegedly an internal Kodak video that was so popular with employees it has been "released for external viewing." I'm sure I have some Rochester, NY readers who can confirm.

It definitely shows a company willing to acknowledge and poke fun at its past mistakes.




(Hat tip to Dave Palmer on the SKEPTIC mailing list.)

War on Terror: The Board Game

This looks like it might actually be a fun game.

(Via Bruce Schneier's blog.)