Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: ADMISSION & SPONSORSHIPS

  total $70,413,397 · related or exempt $61,523,084 · unrelated business $8,890,313

• 2b · Program service revenue: LICENSES & FEES

  total $15,178,661 · related or exempt $15,178,661

• 2c · Program service revenue: MEMBERSHIP DUES

  total $2,702,527 · related or exempt $2,702,527

• 2d · Program service revenue: CONCESSIONS

  total $2,023,636 · excluded $2,023,636

• 3 · Investment income

  total $2,585,800 · excluded $2,585,800

• 5 · Royalties

  total $3,322,567 · excluded $3,322,567

• 7a · Gross sales of assets other than inventory

  other assets $35,830

• 7b · Less cost or other basis and sales expenses

  other assets $144,402

• 7c · Gain or loss

  other assets -$108,572

• 7d · Net gain or loss

  total -$108,572 · excluded -$108,572

• 10a · Gross sales of inventory

  $61,587

• 10b · Cost of goods sold

  $33,254

• 10c · Net income from sales of inventory

  total $28,333 · excluded $28,333

• 11a · Other revenue: OTHER REVENUE

  total $515,847 · excluded $515,847

• 11e · Other revenue, total

  $515,847

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $12,601

• 5 · Compensation of officers, directors and key employees

  total $2,520,941

• 7 · Other salaries and wages

  total $17,853,428

• 8 · Pension plan contributions

  total $401,627

• 9 · Other employee benefits

  total $1,211,357

• 10 · Payroll taxes

  total $1,476,640

• 11b · Fees: legal

  total $399,996

• 11c · Fees: accounting

  total $247,920

• 11g · Fees: other

  total $3,952,901

• 12 · Advertising and promotion

  total $8,419,588

• 13 · Office expenses

  total $11,182,796

• 14 · Information technology

  total $266,533

• 16 · Occupancy

  total $1,899,913

• 17 · Travel

  total $5,436,218

• 19 · Conferences, conventions and meetings

  total $194,066

• 22 · Depreciation, depletion and amortization

  total $1,889,056

• 23 · Insurance

  total $1,706,780

• 24a · Other expenses: PRIZE MONEY & AWARDS

  total $23,402,746

• 24b · Other expenses: TRACK OPERATORS

  total $5,656,306

• 24c · Other expenses: FACILITY IMPROVEMENTS

  total $2,018,485

• 24d · Other expenses: FOOD/DRINK CONCESSIONS

  total $1,170,938

• 24e · All other expenses

  total $1,173,284

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $18,154,166 · end of year $17,293,683

• 4 · Accounts receivable

  beginning of year $2,669,714 · end of year $3,150,164

• 9 · Prepaid expenses and deferred charges

  beginning of year $2,016,473 · end of year $1,388,959

• 10a · Land, buildings and equipment: cost or other basis

  $70,145,560

• 10b · Land, buildings and equipment: accumulated depreciation

  $43,076,304

• 10c · Land, buildings and equipment, net

  beginning of year $22,158,777 · end of year $27,069,256

• 11 · Investments: publicly traded securities

  beginning of year $33,390,528 · end of year $36,359,947

• 15 · Other assets

  beginning of year $1,710,422 · end of year $1,441,718

• 17 · Accounts payable and accrued expenses

  beginning of year $12,815,927 · end of year $15,463,584

• 19 · Deferred revenue

  beginning of year $10,922,349 · end of year $11,535,943

• 25 · Other liabilities

  beginning of year $1,080,124 · end of year $449,059

• 27 · Net assets without donor restrictions

  beginning of year $55,281,680 · end of year $59,255,141

The filer's explanations (Part III)

PART I, LINE 1A

FIRST CLASS TRAVEL: UPGRADES MAY BE PURCHASED BY VICE-PRESIDENTS AND ABOVE. TRAVEL FOR BUSINESS PURPOSES IS NOT INCLUDED IN TAXABLE WAGES. GROSS-UP PAYMENT: GROSS-UP PAYMENTS WERE PROVIDED FOR VICE PRESIDENTS AND ABOVE, QUALIFIED FIELD DIRECTORS, AND RACETRACK GENERAL MANAGERS FOR TAXES RELATING TO BUSINESS VEHICLES.

PART I, LINE 4A

LINDA LOUIE RECEIVED A SEVERANCE PAYMENT OF $360,000 IN 2024.

SCHEDULE J:

"BONUS AND INCENTIVE COMPENSATION" INCLUDES (A) BONUSES AND (B) AS APPLICABLE, COMMISSIONS BASED ON SALES, ALL OF WHICH, WHEN COMBINED WITH BASE AND OTHER COMPENSATION, CREATE A REASONABLE TOTAL COMPENSATION PACKAGE. BONUS AMOUNTS ARE DETERMINED BY MANAGEMENT AND APPROVED BY THE COMPENSATION COMMITTEE AND/OR THE BOARD OF DIRECTORS. COMMISSION AMOUNTS ARE DETERMINED BY THE SALES PLAN FOR EACH APPLICABLE YEAR. IT IS IMPORTANT FOR NHRA TO BE ABLE TO RECRUIT AND RETAIN HIGHLY QUALIFIED EMPLOYEES WHOSE EXPERIENCE AND PERFORMANCE ENABLE NHRA TO PROVIDE THE COMPLEX AND VARIED SERVICES NECESSARY TO SUPPORT THE ASSOCIATION'S OPERATIONS AND MEET THE VARYING NEEDS OF THE DRAG RACING COMMUNITY. THE OPERATIONS OF NHRA ARE EXTENSIVE AND INVOLVE MANY FACETS, SUCH AS COMPLEX RULEMAKING, LOGISTICS, AND EVENT MANAGEMENT, INCLUDING THE COORDINATION OF MULTIPLE EVENTS IN MULTIPLE LOCATIONS, SETTING POLICIES FOR THOUSANDS OF RACERS, PROMOTING THE SPORT TO MILLIONS OF FANS, OVERSEEING ESSENTIAL SAFETY STANDARDS, PUBLICATIONS, SOCIAL MEDIA, TELEVISION AND MEDIA RELATIONS, EXTENSIVE TRAVEL, COORDINATING A LARGE WORKFORCE, TRACK AND FACILITY MANAGEMENT, RISK MANAGEMENT, AND RELATED ISSUES. ACCORDINGLY, THE ORGANIZATION HAS RECRUITED ITS LEADERS PRIMARILY FROM THOSE WITH EXPERIENCE IN MAJOR FOR-PROFIT ORGANIZATIONS. NHRA BELIEVES THAT EXPERIENCE, CONTINUITY, AND INDUSTRY RELATIONSHIPS ARE CRITICAL IN ITS ORGANIZATION, AND THUS NHRA STRUCTURES EXECUTIVE COMPENSATION TO ENCOURAGE LONG-TERM COMMITMENTS FROM AND RETENTION OF EXECUTIVES. WHILE NHRA DOES NOT EXPECT TO PAY COMPENSATION THAT IS FULLY COMPETITIVE WITH FOR-PROFIT ORGANIZATIONS, THE BOARD HAS RECOGNIZED THAT, TO ATTRACT AND RETAIN THE NEEDED QUALITY OF LEADERSHIP, ITS MANAGEMENT COMPENSATION MUST BE COMPETITIVE WITH SIMILARLY COMPLEX NONPROFIT ORGANIZATIONS. IN SETTING COMPENSATION, NHRA HAS USED AN OUTSIDE EXPERT IN ANALYZING COMPENSATION ISSUES TO HELP GUIDE AND VALIDATE THE COMPENSATION PROCESS, AS WELL AS A COMMITTEE OF INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS. THE COMPENSATION OF NHRA'S TOP EXECUTIVES IS REVIEWED ANNUALLY BY THE BOARD. THE PRESIDENT'S AND CHIEF EXECUTIVE OFFICER'S COMPENSATION IS DETERMINED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS. FOR TOP EXECUTIVES INCLUDING THE CEO, CASH COMPENSATION IS COMPRISED OF BASE SALARY AND A BONUS COMPONENT, THE AMOUNT OF WHICH IS BASED ON COMPLEMENTING THE BASE SALARY TO CREATE A COMPETITIVE AND APPROPRIATE ANNUAL COMPENSATION PACKAGE. COMPENSATION IS ANALYZED IN CONJUNCTION WITH MANY FACTORS INCLUDING COMPARABLE COMPENSATION IN THE JOB MARKET, INDIVIDUAL PERFORMANCE, AND THE ORGANIZATION'S OVERALL PERFORMANCE.