GOLD2023

Precept Ministries of Reach Out, Inc.

Know God Deeply. Live Differently.

aka Precept   |   Chattanooga, TN   |  www.precept.org
GuideStar Charity Check

Precept Ministries of Reach Out, Inc.

EIN: 62-0841438


Mission

Engaging people in relationship with God through knowing His Word. Our vision is every believer in Christ living out God's Word every day.

Ruling year info

2015

President & CEO

Mr. David Arthur

Main address

7324 Noah Reid Rd

Chattanooga, TN 37421 USA

Show more contact info

Formerly known as

Precept Ministries International

EIN

62-0841438

Subject area info

Publishing

Television

Religion

Christianity

Protestantism

Population served info

Children and youth

Adults

Christians

NTEE code info

Protestant (X21)

Religious Printing, Publishing (X83)

Religious Television (X82)

What we aim to solve

SOURCE: Self-reported by organization

Lack of sound Biblical teaching and training is rampant throughout the world. Without the knowledge of what God's Word says, people will fall away, get carried away by false doctrines, and even accept heresies as truth.

Our programs

SOURCE: Self-reported by organization

What are the organization's current programs, how do they measure success, and who do the programs serve?

Inductive Bible Study

Inductive study, a method that brings you directly to the Word of God apart from another’s understanding or interpretation of the text, involves three skills: observation, interpretation, and application.

Population(s) Served
Adults

Where we work

Awards

Best Christian Workplace 2020

Best Christian Workplaces Institute

Affiliations & memberships

Evangelical Council of Financial Accountability - Member 1984

Our results

SOURCE: Self-reported by organization

How does this organization measure their results? It's a hard question but an important one.

Number of new Bible Study Leaders trained worldwide

This metric is no longer tracked.
Totals By Year
Related Program

Inductive Bible Study

Type of Metric

Output - describing our activities and reach

Direction of Success

Increasing

Goals & Strategy

SOURCE: Self-reported by organization

Learn about the organization's key goals, strategies, capabilities, and progress.

Charting impact

Four powerful questions that require reflection about what really matters - results.

To transform the world with God's Word, we recruit, equip, and resource Bible Study Leaders who take God’s life-changing Word to their communities. Scripture guides you towards God. Precept guides you through Scripture.

• We offer Bible Study Leader Training designed to develop Bible study skills and to equip individuals with the ability to lead Bible studies using the various resources that we have available\n• Precept Bible Study classes are taught in churches, homes, small groups, workplaces, Christian schools and homeschool groups in over 180 different countries\n• Throughout the world, we offer support to pastors with resources that equip them to prepare sermons, aid them in church planting, support their counseling efforts, and prepare them for various other aspects of ministry work\n• We provide a range of free resources that are available electronically\n• We have online Bible study lessons and training

We provide training to local pastors and lay leaders to be equipped to teach others to learn the truth in God's Word through inductive Bible study. Each person trained will be able to multiply their efforts after learning the skills taught in our trainings because they will be using Scripture to interpret Scripture. Through assessment groups, the leaders are evaluated on the way they lead discussions and how they present the materials to students. This practical training allows the leader to learn how to hone the skills that were taught to help ensure effective teachings. Throughout the world, trained leaders will then go out to places like churches, small groups, refugee camps, orphanages, youth camps, and family counseling centers to help others learn the inductive study method.

We establish people in God's Word by training up effective Bible study leaders and producing multi-week Bible study courses to be operated with trained leaders. The result is people of all ages knowing God better through personal and group Bible study using the proven Precept Bible Study Method used for over 50 years in 70 languages around the world. Every month, tens of thousands are being discipled through Precept. Their thirst for the Word is being quenched by being taught how to observe the Word through Inductive Bible Study, which is empowering people to discover truth for themselves, and the result is lives are being transformed.

Financials

Precept Ministries of Reach Out, Inc.
Fiscal year: Jan 01 - Dec 31
Financial documents
2021 Precept 2019 Audited Financials
done  Yes, financials were audited by an independent accountant. info

Revenue vs. expenses:  breakdown

SOURCE: IRS Form 990 info
NET GAIN/LOSS:    in 
Note: When component data are not available, the graph displays the total Revenue and/or Expense values.

Liquidity in 2022 info

SOURCE: IRS Form 990

11.15

Average of 14.18 over 10 years

Months of cash in 2022 info

SOURCE: IRS Form 990

6.6

Average of 6.9 over 10 years

Fringe rate in 2022 info

SOURCE: IRS Form 990

18%

Average of 19% over 10 years

Funding sources info

Source: IRS Form 990

Assets & liabilities info

Source: IRS Form 990

Financial data

SOURCE: IRS Form 990

Precept Ministries of Reach Out, Inc.

Revenue & expenses

Fiscal Year: Jan 01 - Dec 31

SOURCE: IRS Form 990 info

Fiscal year ending: cloud_download Download Data

Precept Ministries of Reach Out, Inc.

Balance sheet

Fiscal Year: Jan 01 - Dec 31

SOURCE: IRS Form 990 info

The balance sheet gives a snapshot of the financial health of an organization at a particular point in time. An organization's total assets should generally exceed its total liabilities, or it cannot survive long, but the types of assets and liabilities must also be considered. For instance, an organization's current assets (cash, receivables, securities, etc.) should be sufficient to cover its current liabilities (payables, deferred revenue, current year loan, and note payments). Otherwise, the organization may face solvency problems. On the other hand, an organization whose cash and equivalents greatly exceed its current liabilities might not be putting its money to best use.

Fiscal year ending: cloud_download Download Data

Precept Ministries of Reach Out, Inc.

Financial trends analysis Glossary & formula definitions

Fiscal Year: Jan 01 - Dec 31

SOURCE: IRS Form 990 info

This snapshot of Precept Ministries of Reach Out, Inc.’s financial trends applies Nonprofit Finance Fund® analysis to data hosted by GuideStar. While it highlights the data that matter most, remember that context is key – numbers only tell part of any story.

Created in partnership with

Business model indicators

Profitability info 2018 2019 2020 2021 2022
Unrestricted surplus (deficit) before depreciation $320,012 -$900,413 -$478,423 $4,098,832 -$465,647
As % of expenses 2.7% -7.2% -4.1% 35.4% -3.4%
Unrestricted surplus (deficit) after depreciation $76,835 -$1,192,925 -$765,010 $3,843,448 -$720,055
As % of expenses 0.6% -9.3% -6.4% 32.5% -5.2%
Revenue composition info
Total revenue (unrestricted & restricted) $12,307,449 $11,616,691 $11,229,018 $15,669,576 $13,043,409
Total revenue, % change over prior year 2.6% -5.6% -3.3% 39.5% -16.8%
Program services revenue 3.7% 3.8% 1.1% 0.8% 0.9%
Membership dues 0.0% 0.0% 0.0% 0.0% 0.0%
Investment income 0.3% 0.3% 0.1% 0.0% 0.1%
Government grants 0.0% 0.0% 0.0% 19.6% 0.0%
All other grants and contributions 66.6% 64.2% 73.2% 58.8% 74.8%
Other revenue 29.3% 31.7% 25.6% 20.8% 24.2%
Expense composition info
Total expenses before depreciation $11,957,280 $12,563,604 $11,707,441 $11,570,744 $13,509,056
Total expenses, % change over prior year 4.0% 5.1% -6.8% -1.2% 16.8%
Personnel 40.9% 44.3% 48.2% 46.7% 42.1%
Professional fees 8.6% 6.8% 4.7% 8.5% 11.9%
Occupancy 1.6% 3.6% 1.9% 1.5% 1.2%
Interest 0.0% 0.0% 0.0% 0.0% 0.0%
Pass-through 29.6% 30.2% 31.3% 28.0% 26.8%
All other expenses 19.3% 15.1% 13.9% 15.2% 18.0%
Full cost components (estimated) info 2018 2019 2020 2021 2022
Total expenses (after depreciation) $12,200,457 $12,856,116 $11,994,028 $11,826,128 $13,763,464
One month of savings $996,440 $1,046,967 $975,620 $964,229 $1,125,755
Debt principal payment $0 $0 $0 $0 $0
Fixed asset additions $434,458 $316,105 $0 $0 $0
Total full costs (estimated) $13,631,355 $14,219,188 $12,969,648 $12,790,357 $14,889,219

Capital structure indicators

Liquidity info 2018 2019 2020 2021 2022
Months of cash 6.3 5.0 5.6 8.2 6.6
Months of cash and investments 6.6 5.3 6.0 8.2 6.6
Months of estimated liquid unrestricted net assets 6.6 5.1 4.9 9.1 7.1
Balance sheet composition info 2018 2019 2020 2021 2022
Cash $6,307,069 $5,269,828 $5,486,028 $7,861,664 $7,418,975
Investments $285,654 $313,953 $332,723 $0 $0
Receivables $11,388 $8,232 $6,301 $928,141 $838,363
Gross land, buildings, equipment (LBE) $10,381,947 $10,698,052 $10,821,789 $10,929,813 $11,182,868
Accumulated depreciation (as a % of LBE) 80.8% 81.1% 82.8% 84.4% 84.7%
Liabilities (as a % of assets) 3.6% 6.7% 18.2% 4.7% 7.1%
Unrestricted net assets $8,587,369 $7,394,444 $6,629,434 $10,472,882 $9,752,827
Temporarily restricted net assets $46,500 N/A N/A N/A N/A
Permanently restricted net assets $0 N/A N/A N/A N/A
Total restricted net assets $46,500 $0 $0 $0 $0
Total net assets $8,633,869 $7,394,444 $6,629,434 $10,472,882 $9,752,827

Key data checks

Key data checks info 2018 2019 2020 2021 2022
Material data errors No No No No No

Operations

The people, governance practices, and partners that make the organization tick.

Documents
Form 1023/1024 is not available for this organization

President & CEO

Mr. David Arthur

David Arthur understood the importance of Inductive Bible Study at a young age under the spiritual leadership of his parents, Jack and Kay Arthur. David shares his parent's passion of establishing people in God's Word. Over the years David has been mentored by his parents' teaching and shares their view of the Bible.\r\n\r\nPrior to his role at Precept, David worked in the business world with IBM and small businesses. Starting in 1999 David worked several years as a pastor in both the Presbyterian Church of America and the Associate Reformed Presbyterian Church. Just before coming to Precept, he was Vice President with Generous Giving, working with givers and pastors. David holds a Bachelor's Degree in Organizational Management from Covenant College and a Masters of Arts in Theological Studies from Reformed Theological Seminary.

Number of employees

Source: IRS Form 990

Precept Ministries of Reach Out, Inc.

Officers, directors, trustees, and key employees

SOURCE: IRS Form 990

Compensation
Other
Related
Show data for fiscal year
Compensation data
Download up to 5 most recent years of officer and director compensation data for this organization

Precept Ministries of Reach Out, Inc.

Highest paid employees

SOURCE: IRS Form 990

Compensation
Other
Related
Show data for fiscal year
Compensation data
Download up to 5 most recent years of highest paid employee data for this organization

Precept Ministries of Reach Out, Inc.

Board of directors
as of 06/08/2023
SOURCE: Self-reported by organization
Board of directors data
Download the most recent year of board of directors data for this organization
Board chair

Steve Strand

Strand Ag Supply

Term: 2020 -

Kay Arthur

Founder

Ken Guise

n/A

Cary Humphries

N/A

Steve Strand

N/A

Marilyn Crone

N/A

John Wilcox

James Harris

Ashley Freer

Board leadership practices

SOURCE: Self-reported by organization

GuideStar worked with BoardSource, the national leader in nonprofit board leadership and governance, to create this section.

  • Board orientation and education
    Does the board conduct a formal orientation for new board members and require all board members to sign a written agreement regarding their roles, responsibilities, and expectations? Yes
  • CEO oversight
    Has the board conducted a formal, written assessment of the chief executive within the past year ? Yes
  • Ethics and transparency
    Have the board and senior staff reviewed the conflict-of-interest policy and completed and signed disclosure statements in the past year? Yes
  • Board composition
    Does the board ensure an inclusive board member recruitment process that results in diversity of thought and leadership? Yes
  • Board performance
    Has the board conducted a formal, written self-assessment of its performance within the past three years? Yes

Organizational demographics

SOURCE: Self-reported; last updated 1/23/2023

Who works and leads organizations that serve our diverse communities? Candid partnered with CHANGE Philanthropy on this demographic section.

Leadership

The organization's leader identifies as:

Race & ethnicity
White/Caucasian/European
Gender identity
Male, Not transgender
Sexual orientation
Heterosexual or Straight
Disability status
Person without a disability

Race & ethnicity

Gender identity

Transgender Identity

Sexual orientation

Disability

No data

Contractors

Fiscal year ending

Professional fundraisers

Fiscal year ending

SOURCE: IRS Form 990 Schedule G

Solicitation activities
Gross receipts from fundraising
Retained by organization
Paid to fundraiser