Pci fs 2012

PCI - Media Impact, Inc.
Financial Statements
December 31, 2012

O’CONNOR DAVIES, LLP
665 Fifth Avenue, New York, NY 10022 I Tel: 212.286.2600 I Fax: 212.286.4080 I www.odpkf.com

O’Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or
inactions on the part of any other individual member firm or firms.
Independent Auditors' Report
The Board of Directors
We have audited the accompanying financial statements of PCI - Media Impact, Inc., which
comprise the statement of financial position as of December 31, 2012, and the related
statements of activities, statement of functional expenses and cash flows for the year then
ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements 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
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

The Board of Directors
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of PCI - Media Impact, Inc. as of December 31, 2012, 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.
Report on Summarized Comparative Information
We have previously audited PCI - Media Impact, Inc.’s December 31, 2011 financial statements,
and we expressed an unmodified audit opinion on those audited financial statements in our report
dated May 16, 2012. In our opinion, the summarized comparative information presented herein
as of and for the year ended December 31, 2011 is consistent, in all material respects, with the
audited financial statements from which it has been derived.
New York, New York
May 2, 2013

2012 2011
ASSETS
Cash and cash equivalents 154,455$ 208,748$
Contributions and grants receivable 160,465 31,289
Prepaid expenses and other assets 43,184 41,927
Investments 692,308 1,349,155
Beneficial interest in charitable remainder trust 13,000 14,833
Leasehold improvements and equipment, net 36,827 36,550
1,100,239$ 1,682,502$
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable and accrued expenses 47,818$ 63,280$
Advances payable 116,470 159,326
Capital lease obligations 7,585 12,867
Annuities payable 45,737 48,641
Total Liabilities 217,610 284,114
Net assets
Unrestricted
Operating 23,168 54,208
Board designated 675,333 1,322,648
698,501 1,376,856
Temporarily restricted 184,128 21,532
Total Net Assets 882,629 1,398,388
1,100,239$ 1,682,502$
Statement of Financial Position
December 31, 2012
(with comparative amounts at December 31, 2011)
See notes to financial statements
3

Statement of Activities
Year Ended December 31, 2012
(with summarized totals for the year ended December 31, 2011)
Temporarily 2011
Unrestricted Restricted Total Total
OPERATING REVENUE AND SUPPORT
Contributions and grants (includes in-kind
contributions of $42,951 and $145,098) 1,108,970$ 763,090$ 1,872,060$ 1,398,927$
Investment return (loss), net 10,360 - 10,360 (1,723)
Other income 61,883 - 61,883 61,439
1,181,213 763,090 1,944,303 1,458,643
Net assets released from restrictions 600,494 (600,494) - -
Total Operating Revenue and Support 1,781,707 162,596 1,944,303 1,458,643
EXPENSES
Program services 1,977,839 - 1,977,839 1,486,434
Administrative 223,036 - 223,036 237,167
Fundraising 254,330 - 254,330 209,246
Total Expenses 2,455,205 - 2,455,205 1,932,847
Excess of Operating Revenue and
Support Over Expenses (673,498) 162,596 (510,902) (474,204)
NON-OPERATING ACTIVITIES
Bequests 1,092 - 1,092 38,130
2012
4
Bequests 1,092 1,092 38,130
Change in value of
split interest agreements (5,949) - (5,949) (4,350)
Total Non-operating Activities (4,857) - (4,857) 33,780
Change In Net Assets (678,355) 162,596 (515,759) (440,424)
NET ASSETS
Beginning of year 1,376,856 21,532 1,398,388 1,838,812
End of year 698,501$ 184,128$ 882,629$ 1,398,388$
4

Statement of Functional Expenses
(with summarized totals for 2011)
Program Adminis- Fund 2011
Services trative Raising Total Total
Salaries 550,494$ 90,000$ 133,099$ 773,593$ 569,818$
Payroll taxes and employee benefits 130,087 35,145 22,843 188,075 124,418
Total Salaries and Related Expenses 680,581 125,145 155,942 961,668 694,236
Consulting fees (includes $16,720 of in-kind consulting fees in 2011) 487,989 7,933 10,000 505,922 291,411
Professional fees (includes $9,137 and $1,330 of in-kind
legal services) 5,194 48,690 - 53,884 44,816
Broadcast production/airtime
(includes $7,500 and $97,218 of in-kind broadcast production/airtime) 292,807 601 - 293,408 391,262
Temporary personnel 2,000 - - 2,000 4,050
Travel (includes $26,314 and $29,830 of in-kind travel) 225,844 8,884 234,728 177,357
Rent 94,241 15,407 46,220 155,868 156,240
Telecommunications 19,114 1,161 - 20,275 20,606
2012
5
Printing and duplicating 6,276 - 4,889 11,165 14,456
Mailing services 1,271 - - 1,271 -
Public representation and outreach 35,328 - 170 35,498 17,149
Postage 2,056 343 3,043 5,442 6,368
Office supplies 33,808 3,456 134 37,398 28,927
Meetings and conferences 43,826 - - 43,826 3,091
Tapes and films 391 - - 391 -
Equipment rentals, repairs and maintenance 27,319 4,787 12,432 44,538 27,414
Registration dues and fees 3,613 - 9,967 13,580 14,888
Insurance 6,911 12,893 - 19,804 19,046
Depreciation 9,270 1,324 2,649 13,243 20,153
Interest - 1,296 - 1,296 1,377
Total Expenses 1,977,839$ 223,036$ 254,330$ 2,455,205$ 1,932,847$
5

2012 2011
CASH FLOWS FROM OPERATING ACTIVITES
Change in net assets (515,759)$ (440,424)$
Adjustments to reconcile change in net assets
to net cash from operating activities
Depreciation 13,243 20,153
Net realized and unrealized (gain) loss on investments (10,288) 1,867
Change in beneficial interest in charitable remainder trust 1,833 -
Donated securities (19,027) -
Changes in operating assets and liabilities
Contributions receivable (129,176) 260,383
Prepaid expenses and other assets (1,257) (4,817)
Accounts payable and accrued expenses (15,462) 22,431
Advances payable (42,856) 159,326
Net Cash from Operating Activities (718,749) 18,919
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (13,520) (16,329)
Proceeds from sale of investments 686,162 91,383
Statement of Cash Flows
(with comparative amounts for the year ended December 31, 2011)
6
Proceeds from sale of investments 686,162 91,383
Purchase of investment - (8,446)
Net Cash from Investing Activities 672,642 66,608
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on capital lease obligations (5,282) (3,558)
Annuities payments (2,904) (2,669)
Net Cash from Financing Activities (8,186) (6,227)
Net Change in Cash and Cash Equivalents (54,293) 79,300
CASH AND CASH EQUIVALENTS
Beginning of year 208,748 129,448
End of year 154,455$ 208,748$
SUPPLEMENTAL CASH FLOWS INFORMATION
Cash paid for interest 1,296$ 1,377$
Non cash financing activities
Equipment purchased through capital lease - 16,425
6

Notes to Financial Statements
December 31, 2012
7
1. Organization and Tax Status
PCI - Media Impact, Inc.’s (“Media Impact”) unique approach to communications combines
the principles of Entertainment-Education with the reach of mass media to mobilize
individual and community action and catalyze positive change. Entertainment-Education is a
form of entertainment designed to educate and amuse audiences and can be done with a
variety of formats, ranging from comic books, to TV, radio productions, and street theatre.
Our programs primarily focus on promoting sexual and reproductive health, prevention of
HIV/AIDS, biodiversity conservation, sustainable development, human rights and
democracy. Media Impact is a not-for-profit organization exempt from income taxes under
Sections 501(c)(3) and 509(a)(1) of the Internal Revenue Code.
2. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America (U.S. GAAP) requires Media Impact’s
management to make certain estimates and assumptions relating to the reporting of assets
and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Operating Measure
Media Impact has elected to present an operating measure in its statement of activities.
Accordingly, items not affecting operations are segregated from those affecting operations.
Items not affecting operations include bequests and other planned giving.
Fair Value Measurements
Media Impact follows Financial Accounting Standards Board (FASB) guidance on Fair Value
Measurements which defines fair value and establishes a fair value hierarchy organized into
three levels based upon the input assumptions used in pricing assets. Level 1 inputs have
the highest reliability and are related to assets with unadjusted quoted prices in active
markets. Level 2 inputs relate to assets with other than quoted prices in active markets
which may include quoted prices for similar assets or liabilities or other inputs which can be
corroborated by observable market data. Level 3 inputs are unobservable inputs and are
used to the extent that observable inputs do not exist.
Cash and Cash Equivalents
For statement of cash flows purposes, Media Impact considers investments in highly liquid
debt instruments with a maturity of three months or less at the time of purchase to be cash
equivalents, except for those held for investment purposes.

December 31, 2012
8
2. Summary of Significant Accounting Policies (continued)
Leasehold Improvements and Equipment
Media Impact capitalizes all expenditures for property and equipment in excess of $1,000.
Leasehold improvements and equipment are stated at cost or fair value on the date of
donation. Depreciation is computed on the straight-line method over the estimated useful
lives of the related assets. Office furniture and computer equipment are deemed to have a
useful life of between five and seven years. Leasehold improvements are capitalized and
amortized over the period of the lease and expected renewal. Equipment leased under
capital leases is amortized over its economic useful lives.
Split-Interest Agreements
Split-interest agreements with donors consist primarily of charitable gift annuities and a
charitable remainder unitrust. A charitable gift annuity provides for payments of fixed
amounts to the donor or other designated beneficiaries over the annuity's term (usually the
designated beneficiary's lifetime). The assets received are recorded at fair value when
received and a payment liability is recognized for the present value of the future cash flows
expected to be paid to the donor's designated beneficiary. The difference between these
two amounts is recorded as unrestricted contribution revenue unless the donor restricts the
use of the gift. The initial present value of the estimated future payments is determined
using appropriate discount rates and mortality tables.
On an annual basis, Media Impact revalues the gift annuity liability for principal payments
made, the amortization of the initial discount associated with the gift annuity, and
revaluations of expected future payments to beneficiaries, based on changes in life
expectancy and other actuarial assumptions.
Media Impact has a beneficial interest in a charitable remainder trust, which is a time-
restricted contribution not available to Media Impact until after the death of the donor, who,
while living, receives an annual payout from the trust based on a fixed percentage of the
market value of the invested funds. The value of Media Impact’s beneficial interest in the
charitable trust is estimated to be equivalent to the discounted present value of Media
Impact’s future cash flows from the trust. The underlying assets in the trust are principally
marketable securities.
Net Assets Presentation
Unrestricted net assets include funds having no restriction as to use or purpose imposed by
donors. Temporarily restricted net assets are those whose use is limited by donors to a
specific time period or purpose. Permanently restricted net assets are limited by donors for
investment in perpetuity.

December 31, 2012
9
2. Summary of Significant Accounting Policies (continued)
Contributions and Grants
Contributions are recognized as revenue when an unconditional promise to give is made
and the gift is subject to reasonable valuation. Contributions are considered to be available
for unrestricted use unless specifically restricted by the donor. Contributions receivable
consist of gifts pledged. Grant awards received for specific purposes are recognized as
support and revenue to the extent related expenses are incurred in compliance with the
specific grants terms. The unexpended funds are considered refundable advances and
reported as advances payable. Media Impact believes that all grants and other receivables
are collectible.
Contributed Services
Contributed services are reported as contributions at their fair value if such services create
or enhance non-financial assets, or would have been provided by donation, require
specialized skills, and are provided by individuals possessing such specialized skills.
Investment Income Recognition
Purchases and sales of securities are recorded on a trade-date basis. Interest income is
recorded on the accrual basis and dividends are recorded on the ex-dividend date. Realized
and unrealized gains and losses are included in the determination of the change in net
assets.
Functional Allocation of Expenses
Expenses have been charged to program and supporting services, either directly when
identifiable to a specific program, or indirectly based on management's estimate of the
functional area benefited.
Accounting for Uncertainty in Income Taxes
Media Impact recognizes the effect of income tax positions only if those positions are more
likely than not of being sustained. Management has determined that the Organization had
no uncertain tax positions that would require financial statement recognition. The
Organization is no longer subject to audits by the applicable taxing jurisdictions for periods
prior to December 31, 2009.
Subsequent Events Evaluation by Management
Management has evaluated subsequent events for disclosure and/or recognition in the
financial statements through the date that the financial statements were available to be issued,
which date is May 2, 2013.

December 31, 2012
10
3. Leasehold Improvements and Equipment
Leasehold improvements and equipment consist of the following at December 31:
2012 2011
Equipment 66,215$ 52,695$
Accumulated depreciation and amortization (29,388) (16,145)
36,827$ 36,550$
Leased equipment included in equipment are as follows:
2012 2011
Equipment under capital leases 16,425$ 16,425$
Accumulated depreciation (6,570) (3,285)
9,855$ 13,140$
4. Investments and Investment Return
The following are major categories of investments measured at fair value on a recurring
basis at December 31, grouped by the fair value hierarchy:
2012 2011
Money market funds 600,269$ 1,258,958$
Equity funds 18,407 24,796
Bond funds 73,632 65,401
692,308$ 1,349,155$
Investments at December 31, 2012 and 2011 were valued using a Level 1 fair value input.
Investment return (loss) for 2012 consists of the following:
2012 2011
Interest and dividends from investments, net 72$ 144$
Net realized and unrealized gain (loss) 10,288 (1,867)
Investment return 10,360$ (1,723)$
5. Annuities Payable
Changes in actuarial liability under the gift annuity program at December 31, 2012 and 2011,
consist of annuity payments of $2,904 and $2,669.

December 31, 2012
11
6. Board Designated Net Assets
Media Impact established a board designated fund into which gifts and contributions received
through Media Impact’s planned giving program are placed, as well as certain other assets
and liabilities. The components of these board designated net assets at December 31, are as
follows:
2012 2011
Investments
General investment account 316,219$ 1,105,147$
Gift annuity accounts 107,801 97,498
Cash held for investments 284,050 153,811
Beneficial interest in charitable remainder trust 13,000 14,833
Gift annuity payable (45,737) (48,641)
675,333$ 1,322,648$
The changes in board designated net assets for the years ended December 31, are as
follows:
2012 2011
Balance, beginning of year 1,322,648$ 1,684,463$
Contributions designated for investment 2,171 47,051
Investment return 10,443 (1,535)
Release to fund general operations (661,000) (400,000)
Other 1,071 (7,331)
Balance, end of year 675,333$ 1,322,648$
7. Temporarily Restricted Net Assets and Net Assets Released from Restrictions
Temporarily restricted net assets and their related purposes and net assets released from
restrictions are as follows:
Net Assets Net Assets,
Released December 31,
in 2012 2012
For programs in Latin America 128,180$ 91,678$
For programs in the Caribbean 167,304 -
For programs in Africa 139,908 41,021
For programs in the USA 165,102 51,429
600,494$ 184,128$

December 31, 2012
12
8. Lease Commitments
Media Impact leases office space in New York City. The lease contains clauses for
escalations for Media Impact’s share of increased building costs and expires on April 30,
2015.
Future minimum annual lease payments for capital leases and non-cancellable operating
leases and the related capital lease payments at December 31, 2012 are as follows:
Capital Operating
Lease Leases
2013 5,973$ 155,080$
2014 1,612 155,080
2015 - 51,694
Total minimum annual lease payments 7,585$ 361,854$
9. Concentrations of Credit Risk
Financial instruments that potentially subject Media Impact to concentrations of credit risk
consist principally of cash and cash equivalents, contributions receivable and investments.
Media Impact maintains its cash with high credit quality financial institutions and its policy is
designed to limit exposure to any one institution. At times, cash balances may be in excess of
balances insured by the FDIC.
10. Retirement Plan
Media Impact maintains a Simplified Employee Pension Plan (the “Plan”) for the benefit of
eligible employees. Media Impact’s contribution rate, determined by its Board, was 6% for
2012 and 2011. Plan expense was $34,560 and $26,565 for 2012 and 2011.
11. Donated Services
Donated services for the years ended December 31, consisted of the following:
2012 2011
Legal 9,137$ 1,330$
Broadcast production/airtime 7,500 97,218
Consulting - 16,720
Travel 26,314 29,830
42,951$ 145,098$

December 31, 2012
13
12. Prior Year Information
The financial statements include certain prior year summarized comparative information in
total but not by net asset class. Such information does not include sufficient detail to constitute
a presentation in conformity with accounting principles generally accepted in the United States
of America. Accordingly, such information should be read in conjunction with Media Impact's
financial statements for 2011, from which the summarized information was derived.
13. Management Plans to Reduce Operating Deficits
The Board of Directors continues to evaluate the reasons for the operating deficits during
recent years. Media Impact has taken measures to manage costs, and expand fundraising
efforts with the organizational goal to achieve no drawdown from the board designated fund in
future years. Future plans and budgets are being developed to produce a positive change in
net assets. Specifically, in 2013, organizational budgeted expenses have been reduced 15%
and a board challenge grant which could increase unrestricted revenue by $275,000 has been
received.
* * * * *

Pci fs 2012

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