TACO BELL FOUNDATION, INC.
FINANCIAL REPORT
DECEMBER 31, 2022
TACO BELL FOUNDATION, INC.
CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 2
FINANCIAL STATEMENTS
Statement of Financial Position 3
Statement of Activities 4
Statement of Functional Expenses 5
Statement of Cash Flows 6
Notes to Financial Statements 7 – 16
INDEPENDENT AUDITOR’S REPORT
Board of Directors
Taco Bell Foundation, Inc.
Opinion
We have audited the financial statements of Taco Bell Foundation, Inc. (the “Foundation”), which
comprise the statement of financial position as of December 31, 2022, the related statements of
activities, functional expenses and cash flows for the year then ended, and the related notes to the
financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Foundation as of December 31, 2022, and the changes in its net assets and
its cash flows for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Foundation and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audits. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Foundation’s
ability to continue as a going concern within one year after the date that the financial statements are
issued or available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will
always detect a material misstatement when it exists.
Board of Directors
Taco Bell Foundation, Inc.
Independent Auditor’s Report
Page 2
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Foundation’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Foundation’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-
related matters that we identified during the audit.
Report on Summarized Comparative Information
We have previously audited the Foundation’s 2021 financial statements, and we expressed an
unmodified audit opinion on those audited financial statements in our report dated July 18, 2022. In
our opinion, the summarized comparative information presented herein as of and for the year ended
December 31, 2021, is consistent, in all material respects, with the audited financial statements from
which it has been derived.
November 10, 2023
TACO BELL FOUNDATION, INC.
STATEMENT OF FINANCIAL POSITION
December 31, 2022
(with Comparative Totals as of December 31, 2021)
2022 2021
Current assets
Cash and cash equivalents 42,375,737$ 24,790,823$
Investments 4,220,464 2,503,721
Contributions receivable 2,356,780 5,325,638
Contributions receivable – related parties 108,250 260,276
Inventory
3,535
3,535
Total current assets
49,064,766
32,883,993
Software
Computer software 31,120 29,520
Less accumulated amortization
(27,625) (21,552)
Total software
3,495
7,968
Other assets
2
3,148
Total assets
49,068,263$
32,895,109$
Current liabilities
Accounts payable and accrued expenses 152,110$ 91,524$
Accounts payable – related party
340,805
91,084
Total current liabilities
492,915
182,608
Net assets
Net assets without donor restrictions 48,066,706 31,712,501
Net assets with donor restrictions
508,642
1,000,000
Total net assets
48,575,348
32,712,501
Total liabilities and net assets
49,068,263$
32,895,109$
ASSETS
LIABILITIES AND NET ASSETS
See notes to financial statements.
3
TACO BELL FOUNDATION, INC.
STATEMENT OF ACTIVITIES
December 31, 2022
(with Comparative Totals as of December 31, 2021)
2022
2021
Revenue and support
Round up fundraiser 32,463,980$ 4,076,427$
Contributions 6,281,799 8,784,850
In-kind contributions 2,671,269 748,382
Back to school fundraiser - 5,727,766
Graduation season fundraiser - 4,791,781
Other (230,991) 187,985
Net investment (loss) return (385,189) 34,723
Net assets released from restriction
491,358
-
Total revenue and support
41,292,226
24,351,914
Expenses
Program services 20,294,235 18,844,248
Fundraising 4,109,507 1,202,744
General and administrative
534,279
574,683
Total expenses
24,938,021
20,621,675
Increase in net assets without donor restriction 16,354,205 3,730,239
Changes in net assets with donor restrictions
Contributions - 1,000,000
Net assets released from restrictions
(491,358)
-
(Decrease) increase in net assets with donor restriction
(491,358)
1,000,000
Change in net assets
15,862,847
4,730,239
Net assets, beginning of year
32,712,501
27,982,262
Net assets, end of year
48,575,348$
32,712,501$
See notes to financial statements.
4
TACO BELL FOUNDATION, INC.
STATEMENT OF FUNCTIONAL EXPENSES
December 31, 2022
(with Comparative Totals as of December 31, 2021)
Program General and 2022 2021
Services
Fundraising Administrative Total Total Total
Advertising 2,446,753$ -$ -$ -$ 2,446,753$ 439,192$
Amortization - - 9,219 9,219 9,219 6,195
Conferences and training 110,569 78,319 41,463 119,782 230,351 -
District management account
grant expense 6,971,925 - - - 6,971,925 9,816,722
Fundraising incentives - 3,343,543 - 3,343,543 3,343,543 705,675
IT Expenses 38,122 27,002 14,295 41,297 79,419 -
Miscellaneous 2,239 1,586 840 2,426 4,665 8,143
Office supplies 35,953 25,467 13,482 38,949 74,902 112,000
Outside services 682,728 - - - 682,728 368,700
Payroll taxes 51,049 36,159 19,143 55,302 106,351 78,546
Professional fees - - 119,549 119,549 119,549 248,943
Rent 56,416 39,961 21,156 61,117 117,533 184,951
Scholarship expense 9,111,464 - - - 9,111,464 7,261,000
Salaries and benefits 772,534 547,212 289,701 836,913 1,609,447 1,361,980
Travel
14,483
10,258 5,431 15,689 30,172 29,628
Total expenses by function
20,294,235$
4,109,507$ 534,279$ 4,643,786$ 24,938,021$ 20,621,675$
Supporting Services
See notes to financial statements.
5
TACO BELL FOUNDATION, INC.
STATEMENT OF CASH FLOWS
December 31, 2022
(with Comparative Totals as of December 31, 2021)
2022
2021
Cash flows from operating activities
Change in net assets 15,862,847$ 4,730,239$
Adjustments to reconcile change in net assets to
net cash flows provided by operating activities:
Amortization 9,219 6,195
Net realized and unrealized gain on investments 750,589 (3,110)
(Increase) decrease in:
Contributions receivable 2,968,858 5,766,408
Contributions receivable – related parties 152,026 (23,673)
Inventory - (1,135)
Other assets 3,146 61,324
Increase (decrease) in:
Accounts payable and accrued expenses 60,586 (92,640)
Accounts payable – related party
249,721
(113,408)
Net change in cash from operating activities
20,056,992
10,330,200
Cash flows from investing activities
Purchases of investments (3,530,845) (2,617,427)
Reinvestment of investment income (101,476) (28,309)
Proceeds from sales and redemption of investments 1,164,989 145,125
Purchase of computer software
(4,746)
(700)
Net change in cash from investing activities
(2,472,078)
(2,501,311)
Net change in cash and cash equivalents 17,584,914 7,828,889
Cash and cash equivalents, beginning of year
24,790,823
16,961,934
Cash and cash equivalents, end of year
42,375,737$
24,790,823$
See notes to financial statements.
6
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
7
NOTE 1 – ORGANIZATION ACTIVITY
Taco Bell Foundation, Inc. (the “Foundation”) is a nonprofit California corporation established in
September 1992 to receive and disburse or maintain funds to be expended for community,
hospital, religious, charitable or educational purposes as determined by the Board of Directors.
The Foundation’s revenues are derived from donations from Taco Bell Corporation (the
“Corporation”) and Taco Bell Franchisees (the “Franchisees”), fundraisers at various Taco Bell
Corporation and Taco Bell Franchise locations throughout the United States, and contributions
collected through the Round Up program at various Taco Bell Corporation and Taco Bell
Franchise locations throughout the United States.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Statement Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting
in accordance with accounting principles generally accepted in the United States of America
(U.S. GAAP).
The accompanying financial statements include a statement of financial position that presents
the amounts for each of the two classes of net assets: net assets without donor restrictions
and net assets with donor restrictions. These net assets are classified based on the existence
or absence of donor-imposed restrictions and a statement of activities that reflects the
changes in those categories of net assets.
Net assets with donor restrictions include those assets whose use by the Foundation has been
limited by donors to later periods of time, for specified purposes, or restricted in perpetuity.
When a donor restriction is fulfilled, net assets with donor restrictions are reclassified to net
assets without donor restrictions and reported in the statement of activities as net assets
released from restrictions.
Prior-year Comparative Information
The financial statements include certain prior year summarized comparative information in
total. Such information does not include sufficient detail to constitute a presentation in
conformity with U.S. GAAP. Accordingly, such information should be read in conjunction with the
Foundation’s financial statements for the year ended December 31, 2021, from which the
summarized information was derived.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual results could
differ from those estimates.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
8
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments
Investments are carried at their fair value as of the date of the statements of financial position,
which may differ from the amount ultimately realized at the time of sale. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Realized and unrealized gains and losses include gains and losses from purchases and sales
of investments, as well as changes in the value of assets held during the year and are
recognized in the accompanying statement of activities. Gains or losses on investments are
recognized as an increase or decrease in net assets without donor restrictions unless their use
is temporarily or permanently restricted by explicit donor stipulations or by law.
The Foundation’s investments consist of fixed income securities and equity securities. The
Foundation’s investments are generally publicly traded on national securities exchanges and
have readily available quoted market values. Such investments are recorded at market value.
Purchases and sales of securities are reflected on the trade dates.
Dividends and interest income are accrued when earned. Net investment return/(loss) is
reported in the statements of activities and consists of interest and dividend income, realized
and unrealized capital gains and losses, less investment expenses.
Fair Value Measurements
The Foundation follows the U.S. GAAP framework for fair value measurements which favors the
use of market-based information over entity-specific information. As defined by U.S. GAAP, fair
value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction in the principal, or most advantageous, market at the measurement date
under current market conditions regardless of whether that price is directly observable or
estimated using another valuation technique. Inputs used to determine fair value refer broadly
to the assumptions that market participants would use in pricing the asset or liability, including
assumptions about risk. Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in
pricing the asset or liability based on market data obtained from sources independent of the
reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own
assumptions about the assumptions market participants would use in pricing the asset or
liability based on the best information available. Investments measured at fair value are
classified in one of the following three fair value hierarchy levels:
Level 1 – Quoted market prices in active markets for identical assets or liabilities
Level 2 – Observable market-based inputs or unobservable inputs that are corroborated
by market data
Level 3 – Unobservable inputs that are not corroborated by market data
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
9
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fair Value Measurements (Continued)
The fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. Valuation techniques used need to
maximize the use of the observable inputs and minimize the use of the unobservable inputs.
Contributions, Promises to Give, and Revenue Recognition
The Foundation records as revenue the following types of contributions under Financial
Accounting Standards Board (“FASB”) ASC 958-605 when they are received unconditionally at
their estimated fair value: cash, promises to give (pledges), and gifts of long-lived and other
assets. Conditional contributions are recognized as revenue when the conditions on which they
depend have been substantially met.
Contributions received are recorded as net assets with donor restrictions or net assets without
donor restrictions depending on the existence and/or nature of any donor restrictions.
Conditional contributions are recorded as support in the period the condition is met. Such
contributions are required to be reported as net assets with donor restrictions and are then
reclassified to net assets without donor restrictions upon expiration of the restriction, usually
when the funds are spent. Future promises to give are recognized and recorded as receivables
at their estimated realizable value in the year during which they are promised to the
Foundation.
Conditional promises to give that are conditioned upon future events or future matching are not
recorded until the condition has been satisfied. If funds are received from such gifts, they are
recorded as refundable advances until the condition is satisfied. When the condition has been
satisfied, the gift is recognized as either with or without donor restrictions depending on the
intent of the donor.
Cash and Cash Equivalents
The Foundation considers all cash and highly liquid financial instruments with original
maturities of three months or less, and which are neither held for nor restricted by donors for
long-term purposes, to be cash and cash equivalents. Cash and highly liquid financial
instruments restricted to other long-term purposes are excluded from this definition.
Contributions Receivable
Contributions receivable are amounts contributed prior to year end that were not submitted to
the Foundation until after year-end. All contributions are expected to be collected within one
year. The Foundation provides an allowance, as necessary, for uncollectible promises, based
on management’s evaluation of potential uncollectible contributions receivable at year-end. No
allowance was recorded as of December 31, 2022 and 2021.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
10
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In-kind Contributions
Contributed nonfinancial assets include donated professional services, donated equipment,
and other in-kind contributions which are recorded at the respective fair values of the goods or
services received. We do not sell donated gifts-in-kind. Contributions of services are recognized
if the services received create or enhance nonfinancial assets or require specialized skills, are
provided by individuals possessing those skills, and would typically need to be purchased if not
provided by donation. In addition to contributed nonfinancial assets, volunteers contribute
significant amounts of time to program services, general and administration, and fundraising
activities; however, the financial statements do not reflect the value of these contributed
services because they do not meet recognition criteria prescribed by U.S. GAAP, as there is no
objective basis of deriving their value. Contributed goods are recorded at fair value at the date
of donation. See Note 5 for related party contributions and Note 6 for unrelated third parties
contributions.
Income Taxes
The Foundation has been designated as tax-exempt under Internal Revenue Code
Section 501(c)(3) and is also exempt from state franchise taxes under Section 23701(d) of the
California Revenue and Taxation Code and is not generally subject to federal or state income
taxes. However, the Foundation is subject to income taxes on any net income that is derived
from a trade or business, regularly carried on, and not in furtherance of the purposes for which
it was granted exemption. No income tax provision has been recorded as, in the opinion of
management, the net income, if any, from any unrelated trade or business is not material to
the basic financial statements taken as a whole.
The Foundation will recognize the impact of tax positions in the financial statements if that
position is more likely than not of being sustained on audit, based on the technical merits of
the position. To date, the Foundation has not recorded any uncertain tax positions.
Functional Allocation of Expenses
The costs of providing the Foundation’s various programs and the Foundation’s administration
have been summarized on a functional basis in the statement of activities. Accordingly, certain
costs have been allocated among the programs and supporting services benefited based on
management’s estimates. The expenses that are allocated include rent, travel, salaries and
benefits, payroll taxes, office supplies and miscellaneous expenses are allocated on the basis
of estimates of time and effort.
Advertising
The Foundation expenses advertising costs as incurred.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
11
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Software
Software is stated at cost. Amortization of computer software is provided using the straight-line
method over the estimated useful life of three years.
Impairment of Long-lived Assets
Impairment losses are recorded on long-lived assets and intangible assets used in operations
when indicators of impairment are present and the undiscounted cash flows estimated to be
generated by those assets are less than the assets’ carrying amount. If such assets are
considered to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the assets exceeds the fair value of the assets. Any loss would
be recognized in change in net assets in the period in which the determination is made.
Management determined that no impairment of long-lived assets existed as of December 31,
2022 and 2021.
Reclassifications
Certain reclassifications of amounts previously reported have been made to the accompanying
financial statements to maintain consistency between periods presented. The reclassifications
had no impact on previously reported net assets.
Recently Adopted Accounting Pronouncements
On January 1, 2022, the Foundation adopted Financial Accounting Standards Board (FASB)
ASU 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit
Entities for Contributed Nonfinancial Assets, which requires a not-for-profit entity to present
contributed nonfinancial assets in the statement of activities as a line item that is separate
from contributions of cash or other financial assets. The adoption of ASU 2020-07 resulted in
in-kind contributions being broken out in the statement of activities from contributions. In
addition, additional disclosures are now required for these in-kind contributions; see Note 5
and Note 6.
NOTE 3 – RISKS AND UNCERTAINITIES
The Foundation manages deposit concentration risk by placing cash, money market accounts
and certificates of deposit with financial institutions believed by the Foundation to be
creditworthy. The Foundation maintains its investments in one financial institution. At times,
amounts on deposit and invested may exceed insured limits or include uninsured investments
in money market accounts. The Foundation has not experienced any losses in such accounts
and believes it is not exposed to any significant credit risk on cash or cash equivalents or
investments.
Credit risk associated with contribution receivables is considered to be limited due to high
historical collection rates and because substantial portions of the outstanding amounts are
due from the Corporation and Franchisees.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
12
NOTE 4 – INVESTMENTS AND FAIR VALUE MEASUREMENTS
Investments are exposed to various risks, such as changes in interest rates or credit ratings
and market fluctuations. Due to the level of risk associated with certain investments, it is at
least reasonably possible that changes in the values of investments will occur in the near term
and that such changes could materially affect the amounts reported in the accompanying
consolidated statements of financial position.
The Foundation’s investments recorded at fair value have been categorized based upon a fair
value hierarchy in accordance with the provisions of FASB ASC Topic 820, “Fair Value
Measurements.” See Note 2 for a discussion of the Foundation’s policy regarding this
hierarchy.
The following are the major categories of assets measured at fair value during the year ended
December 31, 2022. All investments are considered Level 1 (using quoted market prices in
active markets for identical assets or liabilities):
Level 1 Level 2 Level 3 Total
Equity securities $ 2,145,933 $ - $ - $ 2,145,933
Fixed income securities 2,074,531 - - 2,074,531
Total $ 4,220,464 $ - $ - $ 4,220,464
The Foundation’s policy is to recognize transfers between each level at the end of a reporting
period. There were no transfers between each level of the fair value hierarchy in 2022.
The following are the techniques used to determine fair values for the investments listed in the
above tables:
Equity securities – Valued at the daily closing price reported on the active market on which the
individual securities are traded.
Fixed income securities – Fixed income securities are valued at the closing price reported in the
active market in which the individual securities are traded. When observable price quotations
are not available, fair value is determined based on the present value of the stream of cash
flows it is expected to generate. Such securities are classified as Level 1 in the valuation
hierarchy.
The Foundation has determined that any unrealized losses on the investments are deemed to
be temporary impairments as of December 31, 2022.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
13
NOTE 5 – RELATED PARTY TRANSACTIONS AND RELATED PARTY IN-KIND CONTRIBUTIONS
The Corporation and Franchisees provide support by way of the use of facilities and certain
services at no charge and facilitate the collection of the contributions for the Foundation.
During the normal course of business, the Foundation reimburses the Corporation for the use
of administrative personnel. Contributed salaries and the related payroll taxes and benefits are
allocated based on the time spent by each employee on each department. During the normal
course of business, the Foundation reimburses the Corporation for the use of office supplies.
Contributed office supplies are allocated based on the time spent by each employee on each
department that would use these supplies.
Contributed advertising is valued using estimated U.S. wholesale prices (principal market) of
identical or similar products using pricing data under a “like-kind” methodology considering the
goods’ condition and utility for use at the time of the contribution. Contributed advertising is
used for program services.
Contributed professional services were provided by a firm who assists companies with
recruiting searches for future employees. Contributed professional services are used for
management and general activities and are recognized at fair value based on current rates for
similar professional services.
For the years ended December 31, 2022 and 2021, the Foundation recorded the following
expenses, paid on behalf of the Foundation, as in-kind contributions in the accompanying
statement of activities:
2022 2021
Advertising expenses $ 341,032 $ 214,270
Payroll, taxes, and payroll-related benefits 326,150 326,274
Estimated fair market value of free rent 117,533 184,951
Office supplies 41,824 22,887
Professional service expenses 23,000 -
Total $ 849,539 $ 748,382
As of December 31, 2022 and 2021, $340,805 and $91,084, respectively, was due to the
Corporation for accrued expenses. The Corporation also occasionally receives Round Up
contributions on behalf of the Foundation. As of December 31, 2022 and 2021, $108,250 and
$260,276, respectively, was due to the Foundation for such contributions.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
14
NOTE 6 – IN-KIND CONTRIBUTIONS – NON-RELATED PARTIES
For the years ended December 31, 2022 and 2021, contributed nonfinancial assets recognized
within the statement of activities included the following:
2022 2021
Advertising expenses $ 1,821,730 -
Contributed advertising is valued using estimated U.S. wholesale prices (principal market) of
identical or similar products using pricing data under a “like-kind” methodology considering the
goods’ condition and utility for use at the time of the contribution. Contributed advertising is
used for program services.
All gifts-in-kind received during the years ended December 31, 2022 and 2021 were
unrestricted.
NOTE 7 – NET ASSETS WITH DONOR RESTRICTIONS
The following table summarize the purposes for which net assets with donor restrictions are
available (subject to expenditure for specific purpose), and the related additions and releases
for the year ended December 31, 2022:
Current- Released
December 31, year from December 31,
2021 Additions Restrictions 2022
Guild scholarship program $ 1,000,000 $ - $ - $ 1,000,000
$ 1,000,000 $ - $ - $ 1,000,000
As there are no donor-imposed conditions (including no right of return) on this contribution, this
$508,642 contribution is an unconditional contribution.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
15
NOTE 8 – AVAILABLE RESOURCES AND LIQUIDITY
The following table reflects the Foundation’s financial assets as of December 31, 2022 and
2021, that are without donor or other contractual restrictions limiting their use and are
available to meet general expenditures within one year of the date of the statement of financial
position.
2022 2021
Cash and cash equivalents $ 42,375,737 $ 24,790,823
Contributions receivable 2,356,780 5,325,638
Contributions receivable – related parties 108,250 260,276
44,840,767 30,376,737
Less: Net assets with donor restrictions (508,642) (1,000,000)
Available financial assets $ 44,332,125 $ 29,376,737
When establishing the business plan and annual budget each year, the Foundation’s
management and directors evaluate financial assets available to meet general expenditures
over the year and predictable sources of earned revenue. When determining available
resources for a year, the Foundation supplements the financial assets available in the next
year with revenues from certain earned income sources.
Round Up Collections – expected restaurant donations are reasonably predicted
based on historical owner and store participation, limited release food and beverage
items, ambassador training and advertising, in-store sales trends, and on historical
donation rates.
National Fundraisers – expected restaurant donations are reasonably predicted
based on historical owner and store participation, limited release food and beverage
items, ambassador training and advertising, in-store sales trends, and on historical
donation rates.
Contributions – expected gifts and contributions are reasonably predicted based on
invitations for proposals, annual giving programs and history and on-site giving
(based on attendance per capita budgeted).
Comparing these cash inflow sources to budgeted expenses reveals funding that may or may
not be required to be raised to meet the budget year to achieve a balanced budget.
TACO BELL FOUNDATION, INC.
NOTES TO FINANCIAL STATEMENTS
16
NOTE 9 – SUBSEQUENT EVENTS
Management evaluated all activity through November 10, 2023, (the issue date of the financial
statements) and concluded that no subsequent events have occurred that would require
recognition in the financial statements or disclosure in the notes to financial statements.
