Precept Ministries of Reach Out Inc.

“David Arthur and Kay Arthur have a family relationship.”

“During the year ended December 31, 2023, the Ministry amended its bylaws to reflect its updated name, which changed from Precept Ministries of Reach Out Inc. to Precept and was reported to the IRS in a prior year.”

“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.”

“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.”

“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.”

“The Ministry provides, upon request, copies of its Articles of Incorporation, bylaws, conflict of interest policy, and its financial statements.”

“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.”

“Other Miscellaneous Fees: Program service expenses 10,405. Management and general expenses 250,470. Fundraising expenses 2,504. Total expenses 263,379. Outside Marketing Services: Program service expenses 683,199. Management and general expenses 0. Fundraising expenses 393. Total expenses 683,592. Other Outside Services: Program service expenses 412,286. Management and general expenses 202,971. Fundraising expenses 19,029. Total expenses 634,286. Other Consulting Fees: Program service expenses 618,397. Management and general expenses 39,472. Fundraising expenses 0. Total expenses 657,869.”

“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.”