2022-10-06T11:30:24-05:00 2021-12-31 204193611 Batts Morrison Wales & Lee PA 801 North Orange Avenue Suite 800 Orlando FL 32801 990 2021-01-01 620841438 Precept Ministries of Reach Out Inc PREC 4238926814 PO Box 182218 Chattanooga TN 37422 David Arthur CEO 4238926814 2022-07-19 1 David Arthur 999009999 Kaylyn A Varnum P01691975 4077706000 2022-07-19 0 AAL1 IAL1 2021 2022-09-23 18:48:47Z David Arthur PO Box 182218 Chattanooga TN 37422 16843653 0 X www.precept.org X 1970 TN Engaging people in relationship with God through knowing His Word 9 8 81 8 0 0 8241196 12377723 122895 126345 18633 606 2846294 3164902 11229018 15669576 3662884 3240646 0 0 5645355 5408336 0 0 711278 2685789 3177146 11994028 11826128 -765010 3843448 8101063 10987140 1471629 514258 6629434 10472882 X Engaging people in relationship with God through knowing His Word 0 0 9110228 3240646 3229593 The Ministry is a religious organization that operates primarily by forming, facilitating and supporting groups of individuals who assemble regularly for communal worship. More specifically, the principal means by which the Ministry accomplishes its mission is to facilitate small groups (or congregations) of individuals who meet regularly to engage in Bible study and other worship activities (including prayer and fellowship) in accordance with the Ministry's religious beliefs. The Ministry currently has over 50,000 such groups meeting regularly in over 150 countries. The Ministry uses printed materials, social media, and the internet to promote and conduct Bible studies, estimated to reach several million global congregants annually. The Ministry also conducts various workshops and conferences, training hundreds of individuals to conduct Bible studies and Bible study conferences. Finally, the Ministry supports indigenous missionaries and Bible study groups in foreign countries. The Ministry estimates that these missionary activities have reached over 190 countries with Bible study materials translated into over 90 languages. 9110228 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 15 0 1 81 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 9 8 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 FL GA HI KY MD MA MN MS NH NM RI SC UT VA WV WI X X Aaron Silvious 4238926814 7324 Noah Reid Rd Chattanooga TN 37421 Steve Strand Board Chairman 2.00 X 0 0 0 John Wilcox Board Vice Chair 2.00 X 0 0 0 Kay Arthur Cofounder & Board member 40.00 X 147840 0 9641 Ken Guise Board member 2.00 X 0 0 0 Cary Humphries Board member 2.00 X 0 0 0 Marilyn Crone Board Member 2.00 X 0 0 0 Deanna Lee Board Member 2.00 X 0 0 0 Ashley Freer Board Member 2.00 X 0 0 0 Hanneli Rupert-Koegeleberg Board Member 2.00 X 0 0 0 David Arthur Chief Executive Officer, President 40.00 X 189917 0 19904 Ken Bowers Executive Director 40.00 X 182496 0 23855 Cindi Finn Chief Financial Officer 40.00 X 125436 0 9041 Pete Delacy VP Content Corporate Secretary 40.00 X 164305 0 14105 Debbie Poe VP People Services 40.00 X 127449 0 12426 Elaine Watkins Chief Relationship Officer 40.00 X 140849 0 16229 Stan Latham VP Development 40.00 X 103830 0 4758 Jeremy Lucarelli VP US Leader Development 40.00 X 105835 0 12635 1287957 0 122594 9 0 1 0 Pathway Printing PO Box 3933 Cleveland TN 37320 Printing Services 384525 UPS PO Box 809488 Chicago IL 60680 Shipping Services 235786 Covenant 2810 Premier Parkway Ste 400 Duluth GA 30097 Medial Claims Admin. 199426 UPS Mail Innovations 28013 Network Pl Chicago IL 60673 Shipping Services 191276 Synergi Partners Inc PO Box 5599 Florence SC 29502 Tax Consulting 160765 9 1231482 3066491 8079750 429513 12377723 Workshops and Conferences 611710 126345 126345 126345 606 606 128415 128415 32899 0 32899 32899 32899 0 1231482 99660 -99660 -99660 4136107 1074417 3061690 3061690 Miscellaneous Income 900099 41558 41558 41558 15669576 3229593 0 62260 3240646 3240646 886540 674161 191396 20983 3509134 2651054 573891 284189 119078 89954 18941 10183 575092 437276 95890 41926 318492 241064 55072 22356 8363 4682 3525 156 35443 19843 14940 660 942121 483598 439135 19388 362439 140516 66357 155566 524602 309907 214695 174433 127882 46551 82936 35460 17173 30303 255384 181795 36983 36606 758982 460737 229867 68378 Miscellaneous Expenses 32443 11653 206 20584 11826128 9110228 2004622 711278 5486028 7861664 6301 928141 218956 238245 199945 249340 10929813 9220063 1857110 1709750 324076 0 8647 0 8101063 10987140 83385 514258 1388244 0 1471629 514258 X 6629434 10472882 6629434 10472882 8101063 10987140 3843448 0 X X 0 1 X 1 0 X 7844404 8199942 7551716 8241196 12377723 44214981 7844404 8199942 7551716 8241196 12377723 44214981 27434 44187547 217826 182471 195561 171960 161920 929738 233452 236545 245821 22237 41558 779613 45924332 22028278 0.96220 0.95640 X Part II: The Ministry is appropriately classified as a church described in Internal Revenue Code Section 170(b)(1)(A)(i) and is voluntarily filing the Form 990 with the Internal Revenue Service. Additionally the Ministry is completing the 509(a)(1) Test at Schedule A, Part II, to allow it to qualify for the special rule for Schedule B reporting, in accordance with the Schedule A instructions. Part II, Section B, Line 10: Other income includes miscellaneous income. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 63759 63759 6665076 5268381 1396695 3720537 3547298 173239 480441 404384 76057 1709750 15769236 0 15769236 -99660 -99660 15669576 11925788 99660 99660 11826128 0 11826128 Part XI, Line 4b - Other Adjustments: Fundraising Event Direct Expenses Part XII, Line 2d - Other Adjustments: Fundraising Event Direct Expenses 1 Central America and the Caribbean 0 0 Grants to recipients located in the region 146710 East Asia and the Pacific 0 0 Grants to recipients located in the region 107257 Europe (Including Iceland & Greenland) 0 0 Grants to recipients located in the region 349470 Middle East and North Africa 0 0 Grants to recipients located in the region 252755 North America 0 0 Grants to recipients located in the region 32200 Russia and Neighboring States 0 0 Grants to recipients located in the region 1325134 South America 0 0 Grants to recipients located in the region 603213 South Asia 0 0 Grants to recipients located in the region 140396 Sub-Saharan Africa 0 0 Grants to recipients located in the region 283511 0 0 0 0 0 0 2957135 283511 3240646 Central America and the Caribbean Classes, Workshops, Conferences, Camps 22144 Wire 0 Central America and the Caribbean Classes, Workshops, Conferences, Camps 25996 Wire 0 Europe (Including Iceland & Greenland) Classes, Workshops, Conferences, Camps 19740 Wire 0 Europe (Including Iceland & Greenland) Classes, Workshops, Conferences, Camps 33300 Wire 0 Europe (Including Iceland & Greenland) Classes, Workshops, Conferences, Camps 12240 Wire 0 Europe (Including Iceland & Greenland) Classes, Workshops, Conferences, Camps 50770 Wire 0 Middle East and North Africa Classes, Workshops, Conferences, Camps 16280 Wire 0 North America Classes, Workshops, Conferences, Camps 32200 Wire 0 Russia and Neighboring States Classes, Workshops, Conferences, Camps 940855 Wire 0 South America Classes, Workshops, Conferences, Camps 292122 Wire 0 South America Classes, Workshops, Conferences, Camps 21600 Wire 0 South America Classes, Workshops, Conferences, Camps 24396 Wire 0 South Asia Classes, Workshops, Conferences, Camps 100700 Wire 0 Sub-Saharan Africa Classes, Workshops, Conferences, Camps 84600 Wire 0 15 0 Classes, Workshops, Conferences, Camps Central America and the Caribbean 3 98570 Wire Classes, Workshops, Conferences, Camps East Asia and the Pacific 5 106016 Wire Classes, Workshops, Conferences, Camps Europe (Including Iceland & Greenland) 12 233420 Wire Classes, Workshops, Conferences, Camps Middle East and North Africa 4 236475 Wire Classes, Workshops, Conferences, Camps Russia and Neighboring States 8 384279 Wire Classes, Workshops, Conferences, Camps South America 12 265095 Wire Classes, Workshops, Conferences, Camps South Asia 3 39696 Wire Classes, Workshops, Conferences, Camps Sub-Saharan Africa 6 198911 Wire 0 0 0 0 0 0 Part I, Line 2: Each of the Ministry's grant recipients submit grant funding requests through the Ministry's annual funding request process, which includes submission of the annual budget of the grant recipient. The funding request process determines the amount of grant funding the Ministry provides each grant recipient. Funds are granted on a monthly and quarterly basis. The Ministry exclusively grants funds to support activities that further the Ministry's exempt purposes. Specifically, the grant funds are used by grantees to facilitate Bible study leader training, translation of Bible study materials, as well as conferences and events. Receipts supporting non-compensation-related expenditures are required to be submitted to the Ministry's international headquarters. Additionally, for organizational grantees, quarterly and annual financial statements are required to be submitted to the Ministry. All new grant recipients receiving funding are vetted through the Office of Foreign Asset Control (OFAC) of the United States Treasury service. All grant recipients are reviewed and renewed on an annual basis. The Ministry conducts various trips to visit grant recipients throughout the year to assist with development of grantee organization operations, observe ministry activity, and to oversee the use of grant funds. Part I, line 3: The expenditures reported in Part I, Line 3, column (f) are reported using the accrual method of accounting. Part III Accounting Method: Executive Ministry Briefings 319900 319900 Fall Presidents Weekend 911582 911582 81010 18650 1231482 1231482 81010 18650 99660 -99660 X X X X 0 0 0 0 0 0 0 0 0 David Arthur Chief Executive Officer, President 189917 0 0 0 0 0 9409 0 10495 0 209821 0 0 0 Ken Bowers Executive Director 182496 0 0 0 0 0 9072 0 14783 0 206351 0 0 0 Pete Delacy VP Content Corporate Secretary 164305 0 0 0 0 0 7927 0 6178 0 178410 0 0 0 Kay Arthur Cofounder & Board member 147840 0 0 0 0 0 7015 0 2626 0 157481 0 0 0 Elaine Watkins Chief Relationship Officer 140849 0 0 0 0 0 6946 0 9283 0 157078 0 0 0 X 36 429513 Fair Market Value 0 0 0 0 Part I, Column (b): The Ministry is reporting the number of contributions in column (b). Voluntary Filing of Form 990: The Ministry is appropriately classified as a church described in Internal Revenue Code Section 170(b)(1)(A)(i) and is therefore exempt from the Form 990 filing requirement. However, the Ministry's leadership has decided to voluntarily file the Form 990 with the Internal Revenue Service. Form 990, Part VI, Section A, line 2 David Arthur and Kay Arthur have a family relationship. Form 990, Part VI, Section B, line 11b The Ministry's top management official and top financial official each review the Form 990 prior to its filing with the IRS. A copy of the final Form 990 is also provided to the voting members of the Ministry's governing body prior to its filing with the IRS. Form 990, Part VI, Section B, line 12c The Ministry's conflict of interest policy is distributed to each member of the Ministry's governing body, its officers and its key employees on an annual basis. Each such individual provides an annual disclosure statement indicating that they have received, read, understood and agreed to comply with the policy, certifying that: (1) they have no relationships or interests that present a conflict of interest, (2) they have one or more conflicts of interest that have been fully disclosed as required by the policy and have been properly administered in conformity with the policy, or (3) they have previously undisclosed conflicts of interest and disclosing the details of such conflicts. Any disclosure statements with previously undisclosed conflicts of interest are forwarded to appropriate Ministry officials to take appropriate actions as required by the policy. Form 990, Part VI, Section B, line 15 The Ministry's Compensation and Personnel Committee annually reviews and approves the compensation levels of the officers, directors, and key employees of the Ministry. The Ministry's Compensation and Personnel Committee is comprised of members of the Ministry's Board of Directors that do not have a conflict of interest with respect to the individuals whose compensation is reviewed and approved. The committee utilizes comparability data in its deliberations and the deliberations and decisions of the committee are contemporaneously substantiated. Form 990, Part VI, Section C, line 19 The Ministry provides, upon request, copies of its Articles of Incorporation, bylaws, conflict of interest policy, and its financial statements. Form 990, Part XII, Line 2c: The Ministry's Board of Directors, or a committee thereof, assumes responsibility for the oversight of the audit of its financial statements and the selection of an independent accountant. This process has not changed from the prior year.