2023-05-10T08:59:40-05:00 2022-12-31 204193611 Batts Morrison Wales & Lee PA 801 North Orange Avenue Suite 800 Orlando FL 32801 990 2022-01-01 620841438 Precept PREC 4238926814 PO Box 182218 Chattanooga TN 37422 David Arthur CEO 4238926814 2023-04-27 1 David Arthur 999009999 1 Kaylyn A Varnum P01691975 4077706000 2023-04-27 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z X David Arthur PO Box 182218 Chattanooga TN 37422 14192723 0 X www.precept.org X 1970 TN Engaging people in relationship with God through knowing His Word 9 8 89 8 0 0 12377723 9787104 126345 118897 606 14344 3164902 3123064 15669576 13043409 3240646 3618634 0 0 5408336 5690852 0 0 857146 3177146 4453978 11826128 13763464 3843448 -720055 10987140 10493085 514258 740258 10472882 9752827 X Engaging people in relationship with God through knowing His Word 0 0 10770074 3618634 3118914 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. 10770074 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 22 0 1 89 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 9 8 1 0 1 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 TN UT VA WV WI X X Aaron Silvious 4238926814 7324 Noah Reid Rd Chattanooga TN 37421 Kay Arthur Cofounder & Board Member 40.00 X 149826 0 7651 Steve Strand Board Chairman 2.00 X 0 0 0 John Wilcox Board Vice Chair 2.00 X 0 0 0 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 CEO; President 40.00 X 199900 0 26545 Ken Bowers Executive Director 40.00 X 185756 0 25674 Pete Delacy VP Content; Corporate Secretary 40.00 X 166351 0 14248 Cindi Finn CFO 40.00 X 126395 0 6564 Mark Adams Chief Technology Officer 40.00 X 155969 0 21857 Elaine Watkins Chief Relationship Officer 40.00 X 148037 0 17999 Debbie Poe VP People Services 40.00 X 127967 0 4237 Jeremy Lucarelli VP US Leader Development 40.00 X 108470 0 22937 1368671 0 147712 9 0 1 0 Crema 1815 Central St Kansas City MO 64108 Software Development 522164 Pathway Printing (Dockins Graphics Inc PO Box 3933 Cleveland TN 37320 Printing 430131 UPS PO Box 809488 Chicago IL 60680 Shipping 287292 Covenant 2810 Premier Parkway Ste 400 Duluth GA 30097 Med Ins Plan Administration 207100 Walker360 2501 E 5th St Montgomery AL 36107 Printing & mail services 173606 13 1902571 7884533 701997 9787104 Workshops and Conferences 611710 118897 118897 118897 14344 14344 124188 124188 26082 0 26082 26082 26082 0 1902571 27223 -27223 -27223 4122108 1122091 3000017 3000017 13043409 3118914 0 137391 X 3618634 3618634 1086736 798122 265969 22645 3716485 2750546 568097 397842 130828 95834 20645 14349 389608 292507 58730 38371 367195 271552 63004 32639 20184 12290 7732 162 32916 20042 12610 264 1550249 943911 593895 12443 404412 136354 96971 171087 1171083 1051794 89491 29798 3329 3329 166961 132684 34277 221160 132335 31551 57274 254408 140135 76182 38091 597990 362759 208613 26618 Miscellaneous Expenses 31286 7246 8477 15563 13763464 10770074 2136244 857146 7861664 7418975 928141 838363 238245 267201 249340 260149 11182868 9474471 1709750 1708397 10987140 10493085 514258 740258 514258 740258 X 10472882 9752827 10472882 9752827 10987140 10493085 -720055 0 X X 0 1 X 1 0 X 8199942 7551716 8241196 12377723 9853366 46223943 8199942 7551716 8241196 12377723 9853366 46223943 58167 46165776 182471 195561 171960 161920 164614 876526 236545 245821 22237 41558 546161 47646630 21930968 0.96890 0.96220 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 6845952 5418301 1427651 3767821 3642263 125558 505336 413907 91429 1708397 13070632 0 13070632 -27223 -27223 13043409 13790687 27223 27223 13763464 0 13763464 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 - Antigua & Barbuda, Aruba, Bahamas, 0 0 Grants to recipients located in the region 166914 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, 0 0 Grants to recipients located in the region 126219 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 0 0 Grants to recipients located in the region 361651 Middle East and North Africa - Algeria, Bahrain, Djibouti, Egypt, 0 0 Grants to recipients located in the region 304726 North America - Canada and Mexico, but not the United States 0 0 Grants to recipients located in the region 79466 Russia and Neighboring States - Armenia, Azerbijan, Belarus, 0 0 Grants to recipients located in the region 1394279 South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, 0 0 Grants to recipients located in the region 648158 South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, 0 0 Grants to recipients located in the region 191580 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, 0 0 Grants to recipients located in the region 345641 0 0 0 0 0 0 3272993 345641 3618634 Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, Classes, Workshops, Conferences, Camps 22644 Wire 0 Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, Classes, Workshops, Conferences, Camps 18810 Wire 0 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, Classes, Workshops, Conferences, Camps 14349 Wire 0 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium Classes, Workshops, Conferences, Camps 19740 Wire 0 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium Classes, Workshops, Conferences, Camps 36852 Wire 0 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium Classes, Workshops, Conferences, Camps 12240 Wire 0 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium Classes, Workshops, Conferences, Camps 55160 Wire 0 Middle East and North Africa - Algeria, Bahrain, Djibouti, Egypt, Classes, Workshops, Conferences, Camps 13280 Wire 0 North America - Canada and Mexico, but not the United States Classes, Workshops, Conferences, Camps 65666 Wire 0 Russia and Neighboring States - Armenia, Azerbijan, Belarus, Classes, Workshops, Conferences, Camps 751460 Wire 0 South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Classes, Workshops, Conferences, Camps 314552 Wire 0 South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Classes, Workshops, Conferences, Camps 21600 Wire 0 South America - Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Classes, Workshops, Conferences, Camps 28605 Wire 0 South Asia - Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Classes, Workshops, Conferences, Camps 114902 Wire 0 Sub-Saharan Africa - Angola, Benin, Botswana, Burkina Faso, Classes, Workshops, Conferences, Camps 74800 Wire 0 15 Classes, Workshops, Conferences, Camps Central America and the Caribbean 4 125460 Wire Classes, Workshops, Conferences, Camps East Asia and the Pacific 5 111870 Wire Classes, Workshops, Conferences, Camps Europe 10 237659 Wire Classes, Workshops, Conferences, Camps Middle East and North Africa 4 291446 Wire Classes, Workshops, Conferences, Camps North America 1 13800 Wire Classes, Workshops, Conferences, Camps Russia and Neigboring States 7 642820 Wire Classes, Workshops, Conferences, Camps South America 11 283401 Wire Classes, Workshops, Conferences, Camps South Asia 3 76678 Wire Classes, Workshops, Conferences, Camps Sub-Saharan Africa 8 270841 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: 2022 Fall Presidents Weekend 1058611 1058611 6294 20929 2021 Fall Presidents Weekend 678569 678569 2 165391 165391 1902571 1902571 6294 20929 27223 -27223 X X X 0 0 0 0 0 0 0 0 0 David Arthur CEO; President 199900 0 0 0 0 0 10289 0 16256 0 226445 0 0 0 Ken Bowers Executive Director 185756 0 0 0 0 0 9671 0 16003 0 211430 0 0 0 Pete Delacy VP Content; Corporate Secretary 166351 0 0 0 0 0 8365 0 5883 0 180599 0 0 0 Mark Adams Chief Technology Officer 155969 0 0 0 0 0 0 0 21857 0 177826 0 0 0 Elaine Watkins Chief Relationship Officer 148037 0 0 0 0 0 7626 0 10373 0 166036 0 0 0 Kay Arthur Cofounder & Board Member 149826 0 0 0 0 0 7499 0 152 0 157477 0 0 0 X 29 701997 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 A, line 4 During the year ended December 31, 2022, the Ministry amended their charter to reflect their name, which changed from Precept Ministries of Reach Out Inc. to Precept. 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 IX, line 11g Other Miscellaneous Fees: Program service expenses 153,746. Management and general expenses 96,735. Fundraising expenses 2,027. Total expenses 252,508. Outside Marketing Services: Program service expenses 186,310. Management and general expenses 117,224. Fundraising expenses 2,456. Total expenses 305,990. Other Outside Services: Program service expenses 436,928. Management and general expenses 274,908. Fundraising expenses 5,759. Total expenses 717,595. ERC & Other Consulting Fees: Program service expenses 166,927. Management and general expenses 105,028. Fundraising expenses 2,201. Total expenses 274,156. 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.