Mercury Players Inc.

“Mailing address is unchanged: C/O Thomas L. Jacobson,1218 E Dayton St #1, Madison, WI 53703. Marked "address change" because the business location address is reported, vs. mailing address reported in past years. The business address is not a new location, but IRS forms have a place for only 1 address. Business location reported now as part of eligibility criteria for an SBA grant targeting specific locations or zip codes. The business location was also added as a secondary address over the phone with IRS Charitable Nonprofit Helpline (877-929-5500) on March 11, 2021, but unsure if that will be visible to SBA.”

“Includes $1,000 SBA COVID-19 EIDL Emergency Advance which is a grant subject to the CARES Act. This $1000 grant is in addition to and separate from a $10,000 SBA loan reported in 990-EZ, Part I, Line 20.”

“This consists of ticket sales revenue and the following: $2,046 of rents as program-related investment income from 930 N Fair Oaks Ave, Madison, WI 53704, that is leased by Mercury Players for its tax exempt charitable purpose. The rental activities are described in the Program Service Accomplishment in 990-EZ, Part III, Line 29.”

“Does not include a $10,000 SBA EIDL Loan which is reported on Line 20.”

“Unrestricted gift of $11,900 to The Progressive Magazine, 30 W Mifflin St, Madison, WI 53703, to support its activities. The Progressive Magazine is a 501(c)(3) nonprofit organization unrelated to Mercury Players. The amount is 100% of net revenue from performances of the play, God Help Us!, co-produced with God Help Us Productions for the benefit of The Progressive Magazine. God Help Us Productions traveled the show to Madison. The Progressive Magazine paid the venue rent. Mercury Players' provided the following: local on-site coordination; box office operation, ushers & clean up for performances; & received ticket admissions revenue and disbursed it, minus sales tax. Mercury Players' only cash expense was WI sales tax of $654. Also see 990-EZ, Part III, Lines 30 and 30a.”

“A videographer was hired. The videographer was a person unrelated to Mercury Players.”

“Consists of the following: Royalties; sets; costumes; props; truck rental; liability insurance; check purchase; sales tax; and licenses and permits.”

“Consists of the following 2 items: 1. A $750 check cleared in the next year; and 2. a $10,000 SBA EIDL Loan was received. WHY LOAN IS REPORTED ON LINE 20: Line 20 was used for the following 4 reasons: 1. The loan does not belong on Line 1 because the Loan must be re-paid, so is not a contribution, gift, grant or similar revenue. 2. The loan does is not belong in Line 2, because the loan is not revenue from admissions, merchandise sold, services performed, or facilities furnished in any activity (related or unrelated) to Mercury Players' tax-exempt charitable purpose. 3. Possibly Line 8 could be used to report the loan, but it is unclear if a loan is considered "revenue", particularly for cash basis accounting; consistent with page 11 of the IRS Instructions for Schedule A, Line 12, the loan appears to be "support" as described in Section 509(d). 4. Reporting the loan on Line 20 most clearly shows how net revenue was impacted by the pandemic. FINANCIAL DETAILS OF LOAN: See Schedule O explanation for 990-EZ, Part II, Line 26.”

“Physical assets are stored and maintained primarily at 930 N Fair Oaks Ave Madison WI 53703, which is leased by Mercury Players. $0 is reported and no asset depreciation is tracked for the following 3 reasons: 1. Values are minimal (estimated less than $700). 2. Assets are older than their depreciation periods. 3. Mercury Players uses cash basis accounting. GENERAL DESCRIPTION: Electric and hand tools; hardware; older style theatre lighting and sound equipment; electric cables and power strips; wood constructed theatre set walls and platforms; furniture; paint and painting supplies; props and costumes; and seating units. The market for these items is extremely soft, but most have significant value to Mercury Players for the following 4 uses: 1. Set construction and materials re-use; 2. Auditions, rehearsals and meetings; and 3. Play readings and occasional small capacity public performances.”

“Reported as $0 because Mercury Players uses cash basis accounting and no liabilities were due in the reporting year. The following 2 known future liabilities exist: 1. A $750 outstanding check from the reporting year cleared in the next FY. If Form 990-EZ is filed for 2020, the check amount will be reported as a negative change in assets. 2. On June 23, 2020, Mercury Players received an SBA COVID-19 EIDL Loan (#5783377902) of $10,000 with a 30 year term at 2.75% interest. No collateral was required. This is a 3rd part loan, and considered a long term liability because it may be repaid over multiple future years. The loan funds are considered as "without restriction" though SBA specifies various broad criteria. The $10,000 SBA loan is separate from the $1,000 SBA grant reported in 990-EZ, Part I, Line 1.”

“Board members are current as of the tax filing date. One additional board member (not listed) served in FY 2019-2020. The board members hold staff positions that are normally recurring, as listed, in addition to their board officer positions. Other staff positions are not listed because they are filled by a large number of other people on a show by show basis. Mercury Players has no employees and is operated almost exclusively by volunteers. Sometimes paid services are used, such as for a graphic designer, videographer and musicians.”