Financial Statements
MCC Foundation Financial Documents
Financial documents table with descriptions and download links
| Document | Description | Links |
|---|---|---|
| Form 990 Fiscal Year 2024 |
The document is the 2024 IRS Form 990 filing for the McLennan Community College Foundation. It provides detailed information about the foundation's financial activities and governance. | Form 990 (PDF) Full summary |
| Financial Statement Fiscal Year 2025 |
This report explains the MCC Foundation’s financial activity, position, and overall health over a specific period. | Financial Statement (PDF) Full summary |
| Form 1023 Tax-Exempt Status Application |
IRS application establishing the Foundation's 501(c)(3) tax-exempt status, including its governance structure, scholarship programs, and public support qualification. | Form 1023 (PDF) Full summary |
For assistance accessing these documents or if you seek financial information about the McLennan Community College Foundation that is not available on this Web page, contact Patrick Koon at 254-299-8818.
Form 990 — Full Summary
Executive Summary
The McLennan Community College Foundation is a 501(c)(3) nonprofit dedicated to supporting student success through scholarships, emergency aid, and institutional funding. In 2024, the organization generated $3.36 million in revenue, distributed over $2.04 million in program-related expenses, and ended the year with net assets of approximately $38 million — reflecting financial stability and continued investment in educational support.
Organizational Overview
Entity: McLennan Community College Foundation Tax Status: 501(c)(3) nonprofit Location: Waco, Texas Executive Director: Christopher Qualls Board: 26 independent voting members (volunteer governance)
Mission: Support student scholarships, fund faculty and staff development, address campus needs, and provide emergency financial assistance to students.
Financial Performance (2024)
Total Revenue: $3,358,483
Revenue sources: Contributions and grants (~$1.55M), investment income (~$1.22M), program service revenue (~$626K), and a minor negative adjustment (-$30K). Revenue is well-diversified, with meaningful reliance on both donations and investment income.
Total Expenses: $2,246,333
Approximately 91% of spending ($2.04M) went directly to program services, with management and administrative costs at ~$200K and minimal fundraising expense — a strong efficiency indicator.
Net Surplus: $1,112,150
The organization operated at a significant surplus, increasing its overall financial capacity.
Financial Position
Total assets of $38,249,067 against liabilities of just $295,418 yield net assets of $37,953,649. Liabilities are extremely low relative to assets, reflecting strong financial health, sustainability, and a substantial endowment and investment base.
Program Impact
The Foundation supports students and the institution through five primary areas:
- Student Scholarships — core funding priority
- Emergency Student Grants — assists students facing financial crises
- Campus Support — $911K for facilities; $409K for programs
- Faculty and Staff Development — professional development funding
- Student Support Services — includes food and hygiene assistance programs
The Foundation plays a holistic support role, addressing both academic achievement and basic student needs.
Governance & Compensation
Executive Director compensation is approximately $142,465, which is consistent with nonprofit sector norms. Board members serve in a volunteer capacity. The organization maintains strong governance policies, including conflict of interest and whistleblower protections.
Compliance & Operations
The Foundation conducts no political campaign or lobbying activity and has no foreign operations. An independent financial audit is conducted annually, and the organization demonstrates strong compliance and transparency practices.
Financial Statement — Full Summary
Fiscal Years Ending August 31, 2025 & 2024
Executive Summary
The McLennan Community College Foundation remains financially strong and stable, with total assets increasing to approximately $38.2 million in 2025 and net assets growing by $2.4 million year-over-year. The Foundation continues to rely heavily on investment income and donor-restricted funds, which make up the vast majority of its resources and support long-term initiatives such as scholarships, capital improvements, and educational programming. While overall expenses decreased in 2025—reflecting reduced capital spending—the organization maintained consistent programmatic impact. However, liquidity declined due to the high proportion of restricted assets, meaning fewer funds are available for immediate operational use. Overall, the Foundation demonstrates solid financial growth, effective stewardship of donor funds, and a strong commitment to its educational mission.
Auditor's Opinion
The independent auditor issued an unqualified (clean) opinion. The financial statements fairly present the Foundation's financial position and comply with U.S. GAAP standards. No concerns were raised about the Foundation's ability to continue as a going concern.
Financial Position
Total Assets: $38.25M (2025) | $37.35M (2024) — increase of ~$904K
Key asset components (2025): Investments of $36.95M represent the dominant asset, with cash at $915K (down significantly from 2024) and contributions receivable at $298K.
Liabilities: $295K (2025) | $1.79M (2024) — a ~$1.5M improvement due to reduced amounts owed to an affiliated organization.
Net Assets: $37.95M (2025), up $2.4M from 2024. Approximately 99% of net assets carry donor restrictions; unrestricted net assets remain small at ~$45K.
The Foundation is financially strong but highly restricted — most funds must be used for specific donor-directed purposes.
Revenue & Expenses
Total Revenue: $5.06M (2025) | $6.90M (2024)
Revenue sources (2025): Investment income of $3.03M was the primary driver, followed by contributions ($1.48M), nonfinancial/in-kind gifts ($514K), and events ($41K).
Total Expenses: $2.67M (2025) | $3.94M (2024)
Major expense categories (2025): Capital support ($911K), scholarships ($689K), administration ($619K), and other programs ($406K).
Change in Net Assets: +$2.40M (2025) | +$2.96M (2024). Lower revenue and expenses in 2025 reflect reduced capital spending and investment gains compared to 2024.
Cash Flow
Net cash flow (2025): Operations (-$2.30M), investing (+$1.07M), financing (+$556K), resulting in a net cash decrease of $674K.
Ending cash: $915K (2025) | $1.59M (2024). The decrease is primarily due to investment activity and liability reduction — not necessarily a negative indicator, as funds are heavily invested.
Investments & Endowment
Total investments of $36.95M represent approximately 96% of total assets. The portfolio shifted from predominantly marketable securities (~$31.4M in 2024) to limited partnerships (~$30.1M in 2025), indicating a move toward longer-term, less liquid investments with potentially higher returns.
Endowment funds grew to $13.84M (up from $13.29M), supporting scholarships (largest portion), lecture series, and educational programs.
Liquidity
Financial assets available for general use within one year: $256K (2025) | $1.74M (2024).
Liquidity dropped significantly as donor-restricted funds increased. Most assets are not readily accessible for general operations.
In-Kind Contributions
Approximately $515K annually in in-kind contributions — primarily salaries and benefits, plus office support and facilities — significantly support operations without cash outflow.
Risks & Uncertainties
The Foundation is exposed to market fluctuations given its investment-heavy portfolio, as well as limited liquidity. Management believes the risk of major financial harm remains low.
Form 1023 — Full Summary
IRS Application for Tax-Exempt Status | 501(c)(3) Recognition
The Form 1023 documents the Foundation's application for 501(c)(3) tax-exempt status, establishing its organizational purpose, governance structure, financial support sources, and qualifying activities.
Mission and Activities
The Foundation was established to support McLennan Community College through scholarships, grants, endowments, and campus improvements. Activities include fundraising through mail, internet, phone, and in-person events, with proceeds directed to exempt purposes.
Governance Structure
The original board included Dr. Dennis Michaelis (MCC President and Foundation Board Secretary), Mr. Ray Perry, Mr. Danny S. Uptmore, Mr. Jim Hardwick (ex officio), and Dr. Jesse C. Sawyer (ex officio). Dr. Sawyer and Dr. Michaelis are MCC employees; the remaining three directors are elected trustees of the College's Board of Trustees. All members are public officials.
Scholarship and Student Aid Programs
The Foundation outlines scholarship eligibility criteria, selection procedures, donor-imposed restrictions, and grant supervision procedures. Recipients and funding amounts are documented, and the Foundation maintains records to substantiate all awards.
Public Support Qualification
The Foundation qualifies as a publicly supported organization. Public support represented approximately 57.62% of total support, meeting IRS requirements to avoid classification as a private foundation.
Tax and Compliance
The Foundation recognizes income tax positions only when more likely than not to be sustained under examination. It maintains policies on conflicts of interest, document retention, and whistleblower protections, and provides public access to governing documents and financial statements.
Quick Links & Forms
- Emergency Grant Application
- Employee Giving Form
- Distinguished Alumni Nomination Form
- Distinguished Leader Nomination Form
- Alumni Association Membership Form
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