Organization and Significant Accounting Policies
Organization
The International Women's Media Foundation (Foundation) was established in 1990. The Foundation is a private non-profit organization dedicated to enhancing the role of women in the media world-wide through education and training and promoting freedom of the press.

Basis of accounting

The accounts of the Foundation are maintained on the accrual basis of accounting.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified between cash and cash equivalents and investments to conform with the current year presentation.

Cash and cash equivalents

Short-term, highly liquid investments that have original maturities of ninety days or less are considered cash and cash equivalents. The carrying value of cash and cash equivalents approximates fair value.

Investments

The investments of the Foundation at June 30, 2002 and 2001 consist of a certificate of deposit with original maturity in excess of ninety days and marketable securities. The certificate of deposit is stated at cost, which approximates fair value. Marketable securities are reported at fair value with realized and unrealized gains and losses recorded in the statement of activities. The fair values of marketable securities are determined based on quoted market prices.

Furniture and Equipment

Furniture and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, which are generally three to seven years.

Revenues, Gains and Other Support

Event revenue represents receipts from the Courage in Journalism events and is available for general Foundation purposes. Unconditional pledges received by the Foundation are recorded as a receivable and contribution revenue in the period pledged. Conditional pledges to give are recognized by the Foundation when the conditions on which they depend are substantially met. As of June 30, 2002 and 2001, all of the recorded pledges are due to be received within one year. Contributions are reported as increases in either unrestricted or temporarily restricted net assets.

As of June 30, 2002, the Foundation had received an unconditional pledge of $125,000 from one donor. In fiscal year 2003, the payment was duly received.

Deferred revenue at June 30, 2002 and 2001 is composed of contributions received in advance for the annual Courage in Journalism events, which are held in the fall. The revenue associated with these events is recognized at the time of the event.

Expenses are reported as decreases in unrestricted net assets. Expirations of temporary restrictions are reported as reclassifications from temporarily restricted net assets to unrestricted net assets as the related program costs are incurred.

Net assets

The resources of the Foundation are classified into classes of net assets based on the existence or absence of donor-imposed restrictions. The net assets of the Foundation are reported in the financial statements as follows:

Income Taxes

Under Section 501(c)(3) of the Internal Revenue Code and the applicable income tax regulations of the District of Columbia, the Foundation is exempt from income taxes; therefore, no provision for income taxes has been recorded.

Functional Expenses

The costs of providing the various programs and supporting services have been summarized on a functional basis in the accompanying statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. The program expenses are categorized as follows:

Press freedom expenses represent educational programs related to the struggle for international free media. International program expenses relate to expenses incurred for the training and networking of international women journalists. Domestic program expenses relate to expenses incurred for the training and networking of domestic women journalists. Information dissemination expenses relate to expenses incurred for the website, newsletters, outreach, and other project research and development.

Fundraising expenses represent the costs associated with planning and organizing fundraising efforts.

General and administrative costs relate to the overall management and operation of the Foundation.

In-kind Contributions

The Foundation receives numerous in-kind contributions primarily in the form of donated professional services benefiting the Foundation as well as its various programs. The estimated fair value of such items has been recognized as contribution revenues and program expenses or supporting services in the statement of activities. The estimated fair value of the in-kind contributions received was $70,517 and $40,518 for the years ended June 30, 2002 and 2001, respectively.

Temporarily Restricted Net Assets

Temporarily restricted net assets of the Foundation as of June 30, 2002 and 2001 are designated for the following purposes:

Investments

Investments as of June 30, 2002 and 2001 are summarized as follows:

Investment income consists of realized and unrealized gains and losses and dividends earned. Included in revenues, gain and other support is interest and dividends of $13,752 and $31,857 and realized and unrealized losses of $21,033 and $37,336 for the years ended June 30, 2002 and 2001, respectively. The costs of investments at June 30, 2002 and 2001 were $485,434 and $497,092, respectively.

Furniture and Equipment

Fixed assets as of June 30, 2002 and 2001 consist of the following:

Depreciation expense for the years ended June 30, 2002 and 2001 was $10,040 and $9,032, respectively.

Related Parties

The Foundation receives contributions from members of its Board of Directors as well as from various corporations with which members of its Board of Directors are affiliated. Contributions from members of the Board of Directors amounted to $63,500 and $63,927 for the years ended June 30, 2002 and 2001, respectively. There were no amounts due from members of the Board of Directors as of June 30, 2002 and 2001.

Benefit Plan

The Foundation has a 403(b) defined contribution savings plan (the Plan) available to substantially all eligible employees. Before July 2001, participants' contributions, up to the maximum of three percent of their base compensation, were matched 100% by the Foundation, if the eligible employees had completed two years of service. Effective from July 2001 onwards, the Foundation's personnel policies were amended. Upon completion of six months of service, participants' contributions, up to the maximum of three percent of their base compensation, are matched 100% by the Foundation. Upon completion of a full year of service, the Foundation matches 100% of participants' contributions, up to the maximum of five percent of their base compensation. The Foundation's contributions to the Plan are charged to expense and amounted to $18,592 and $6,277 for the years ended June 30, 2002 and 2001, respectively.

Commitments

The Foundation leases office space and office equipment under non-cancelable operating leases expiring at various dates through 2006. Future minimum lease payments under these operating leases are as follows:

Aggregate rental expense under these leases amounted to $70,103 and $61,960, for the years ended June 30, 2002 and 2001, respectively.