Rising with Melodies Inc. (the "Organization") was incorporated in the State of Georgia in 2026 and has been in existence for fewer than five (5) years. In accordance with the instructions for IRS Form 1023 Part IX, the Organization submits the following three-year financial statement covering:
All projections are prepared on the cash basis of accounting. All figures represent the Organization's good-faith estimates based on actual results to date, executed programs, documented commitments, the Organization's adopted Year-One Business Plan (March 2026), and reasonable assumptions about donor growth and program expansion. A full explanation of assumptions follows the financial tables.
| Line Item | Year 1 2026 (Current) |
Year 2 2027 (Projected) |
Year 3 2028 (Projected) |
|---|---|---|---|
| A. REVENUE | |||
| 1. Individual charitable contributions (one-time gifts) | $3,500 | $6,000 | $10,000 |
| 2. Monthly recurring donations | $0 | $1,800 | $4,200 |
| 3. Annual Benefit Concert proceeds | $1,291 | $3,500 | $6,000 |
| 4. Corporate sponsorships | $0 | $2,500 | $5,000 |
| 5. Educational / arts grants (applied or planned) | $0 | $0 | $5,000 |
| 6. Founder personal contributions (piano teaching & performance income directed to Organization) | $2,000 | $1,500 | $1,000 |
| TOTAL REVENUE | $6,791 | $15,300 | $31,200 |
| B. EXPENSES | |||
| Program Services — Education Programs (Trujillo, Peru) | |||
| 7. Educator stipend — music education (Samuel Serban, Peru) — 12 hrs/month | $1,320 | $1,560 | $1,800 |
| 8. Additional educator support / volunteers — all programs (stipends) | $0 | $1,200 | $3,600 |
| 9. Instruments and musical equipment (keyboards, guitar, drums) | $800 | $2,000 | $3,000 |
| 10. Curriculum materials, books, and educational resources (all programs) | $300 | $600 | $1,000 |
| 11. Outdoor, recreational & social-emotional activities | $400 | $700 | $1,200 |
| 12. Scholarship Pathway Program (development & awards) | $0 | $0 | $2,000 |
| 13. Travel and logistics — oversight visits to Peru | $0 | $2,000 | $3,000 |
| 14. Computers and technology — ESL program launch (5 units × $800) | $4,000 | $0 | $0 |
| 15. Founder travel to Peru — Alexander Lopez + adult chaperone (annual visit) [Y2–Y3: $0 — consolidated with Line 13 per non-duplication policy] | $2,000 | $0 | $0 |
| Fundraising & Events | |||
| 16. Annual Benefit Concert expenses (venue, supplies, photography) | $400 | $800 | $1,500 |
| Management & General / Administrative | |||
| 17. Officer / director compensation | $0 | $0 | $0 |
| 18. Website, online platforms & technology | $300 | $400 | $500 |
| 19. Marketing and community outreach (USA) | $200 | $500 | $1,000 |
| 20. IRS Form 1023 user fee (one-time) | $275 | $0 | $0 |
| 21. Georgia state charitable registration & annual report fees | $50 | $50 | $50 |
| 22. Bank fees, payment processing & general administrative | $100 | $150 | $200 |
| TOTAL EXPENSES | $10,145 | $9,960 | $18,850 |
| C. NET REVENUE (SURPLUS / DEFICIT) | −$3,354 | +$5,340 | +$12,350 |
| D. FUND BALANCES (NET ASSETS) | |||
| Beginning of Year Fund Balance | $0 | −$3,354 | +$1,986 |
| End of Year Fund Balance | −$3,354 | +$1,986 | +$14,336 |
| E. PROGRAM EXPENSE RATIO | |||
| Total Program Service Expenses (lines 7–15) | $8,820 | $8,060 | $15,600 |
| Program Expenses as % of Total Expenses | 87% | 81% | 83% |
| Revenue Line | Basis of Estimate |
|---|---|
| Individual donations (one-time) |
Year 1 ($3,500): Based on actual online giving received to date via PayPal, Venmo, and Zelle, plus estimated giving through December 31, 2026. The Organization has an active donor base developed through the benefit concert and social media outreach. Year 2 ($6,000): Estimated 70% growth as the donor base matures, monthly e-newsletters launch, and the organization builds relationships with families, community members, and event attendees. Year 3 ($10,000): Continued growth driven by the annual concert, expanded social media presence, and a formal year-end giving campaign. |
| Monthly recurring donations |
Year 1 ($0): The recurring giving program is being established; no material recurring revenue expected in Year 1. Year 2 ($1,800): Estimated 15 recurring donors at an average of $10/month = $150/month × 12. Year 3 ($4,200): Estimated 35 recurring donors at an average of $10/month = $350/month × 12. Growth driven by benefit concert attendees and social media campaigns. |
| Annual Benefit Concert proceeds |
Year 1 ($1,291): Actual net proceeds from the First Annual Summer Benefit Concert, held June 6, 2026, in the Atlanta, Georgia area. Year 2 ($3,500): Projected growth for the Second Annual Benefit Concert, driven by expanded attendance, broader community awareness, and corporate sponsorship of the event. Year 3 ($6,000): Projected growth for the Third Annual Benefit Concert, driven by an established community audience, strong social media promotion, and a larger venue. |
| Corporate sponsorships |
Year 1 ($0): The Organization is building corporate relationships but does not project material corporate revenue in Year 1. Year 2 ($2,500): Estimated 3–5 small corporate sponsors at $500–$800 each, including local businesses aligned with educational access, music, and community impact. Year 3 ($5,000): Estimated 6–8 sponsors as the organization's track record and visibility grow. |
| Educational / arts grants |
Years 1–2 ($0): The Organization will begin researching and applying for grants in Year 2 but does not project grant revenue until Year 3, to be conservative. Year 3 ($5,000): Estimated proceeds from 1–2 small grants from international education foundations, arts and culture funders, or faith-based humanitarian organizations. The Organization plans to apply for grants from multiple sources; this projection reflects a conservative estimate of one successful award. |
| Founder personal contributions | Alexander Lopez (Founder) directs a significant portion of his piano teaching and performance income in the United States toward the Organization's operations in Peru. Year 1 ($2,000) reflects estimated contributions through December 2026. This figure is projected to decrease over Years 2–3 as the Organization's independent donor base matures and the Founder's personal contributions are no longer necessary to cover operating shortfalls. |
| Expense Line | Basis of Estimate |
|---|---|
| Educator stipend — Samuel Serban (Peru) — music education |
The Organization's primary educator, Samuel Serban, provides structured piano and music theory instruction in Trujillo, Peru at 12 hours per month (144 hours/year). As additional educational programs (e.g., English language/ESL instruction) launch, separate educator stipends for those programs will be added to future budgets. Year 1 ($1,320): $110.00/month × 12 months — the current agreed stipend for 12 hours of instruction per month, consistent with qualified instructor rates in Trujillo, Peru (approximately $9.17/hour). Year 2 ($1,560): $130/month — reflects a modest increase as instruction hours grow slightly with expanding enrollment. Year 3 ($1,800): $150/month — reflects program growth and a slight rate adjustment as the student base expands. |
| Additional educator support — all programs |
Year 1 ($0): The program is led solely by Samuel Serban in Year 1. Year 2 ($1,200): One additional part-time teaching assistant/volunteer stipend as enrollment expands to 25–40 students and additional educational programs are introduced. Year 3 ($3,600): Two additional part-time instructors as enrollment approaches 50–75 students across music, English language (ESL), and other educational programs. |
| Instruments and musical equipment |
Year 1 ($800): Initial purchase of keyboards and supplementary equipment for the 12 current students. Year 2 ($2,000): Additional keyboards and introductory guitar/percussion instruments as enrollment grows. Year 3 ($3,000): Expanded instrument inventory to support 50–75 students and the addition of guitar and drums to the curriculum per the Organization's Year-Two roadmap. |
| Curriculum materials, books, and educational resources | Estimated at $25–$40 per student per year across all programs (music, English/ESL, and other), scaling with enrollment. Year 1 covers 12 students ($300); Year 2 covers approximately 20–25 students ($600); Year 3 covers approximately 50 students ($1,000). |
| Outdoor & social-emotional activities | Based on the January 2026 outdoor activity day organized for students in Trujillo. Estimated at 1–2 events per year, covering supplies, food, and incidentals. Budget scales modestly with enrollment growth. |
| Scholarship Pathway Program |
Years 1–2 ($0): Program is in development and is not expected to incur expenditures until Year 3. Year 3 ($2,000): Initial curriculum development costs, mentorship program administration, and one or more scholarship awards for exceptional students identified in the program's first two years. |
| Travel — oversight visits to Peru |
Year 1 ($0): No formal Board governance travel in Year 1 (see separate line for Founder annual visit). Communication between the Board and the on-the-ground educator is conducted remotely. Year 2 ($2,000): One oversight visit by the President (Linder Lopez) and/or a Board member to Trujillo, Peru, to evaluate program quality, meet with local partners, and plan expansion. Estimated cost covers airfare, lodging, and ground transportation. Year 3 ($3,000): One or two oversight visits as the organization scales and expands to additional sites in Trujillo. |
| Computers and technology — ESL program launch (5 units × $800) |
Year 1 ($4,000): Purchase of five (5) computers at approximately $800.00 per unit to equip the new English as a Second Language (ESL) program launching in Trujillo, Peru in 2026. Computers will be used by students during instruction sessions and will remain at the program site as permanent program assets. This is a one-time capital purchase; no replacement or additional units are projected in Years 2–3. Years 2–3 ($0): No additional computer purchases anticipated in the projection period. Maintenance and incidental costs are included in the general curriculum materials budget. |
| Founder travel to Peru — Alexander Lopez + adult chaperone (annual visit) |
Alexander Lopez, Founder of Rising with Melodies Inc., travels annually to Trujillo, Peru to visit the program site, connect with students and educators, and support programmatic development. As Alexander is a minor (age 15), each trip includes one adult chaperone (a parent or designated adult). Estimated cost covers round-trip airfare (two persons), lodging, ground transportation, and incidentals. Year 1 ($2,000): No Board governance oversight travel is budgeted in Year 1 (Line 13 = $0), so Alexander's visit and chaperone travel are budgeted independently here. Years 2–3 ($0): The President's governance oversight trip (Line 13) is scheduled in Years 2 and 3. Per the Organization's non-duplication policy, that governance trip simultaneously serves as Alexander's annual visit — the President travels with Alexander as his chaperone. Only Line 13 is claimed in those years; this line is $0 to avoid double-billing the same trip. The combined per-trip cost is captured entirely under Line 13. |
| Annual Benefit Concert expenses |
Year 1 ($400): Actual venue, printing, and supply costs for the First Annual Summer Benefit Concert (June 6, 2026). Photography was provided at no cost by ARPhotography (community sponsor). Year 2 ($800): Larger venue and increased production costs as attendance grows. Year 3 ($1,500): Reflects a more formal event with increased attendance, performer coordination, and marketing. |
| Officer / director compensation | $0 in all three years. Linder Lopez (President / Director), Natalia Dolhova (Treasurer / Director), and all other officers serve entirely without compensation. Alexander Lopez (Founder) also serves without compensation. Note: Samuel Serban (Secretary / Director) receives a stipend solely in his capacity as the Organization's primary educator in Trujillo, Peru — not in his capacity as a Director or officer — which is reflected in the Program Services expense line above and does not constitute officer compensation. |
| Website & technology | Covers domain registration, web hosting, payment processing tools (PayPal, Venmo, Zelle integrations), email platform, and any productivity software used in administration. Based on current actual costs. |
| Marketing and outreach (USA) | Covers social media advertising (Instagram, Facebook, TikTok), printed materials, flyers, and community outreach events in the Atlanta, Georgia area. Projected to grow modestly as the organization builds its U.S. donor presence. |
| IRS Form 1023 user fee | One-time fee of $275 (Form 1023-EZ) or $600 (full Form 1023) payable to the IRS upon application. Reflected in Year 1 only. Figure used: $275 (Form 1023-EZ). If the full Form 1023 is filed, this line should be updated to $600. |
| Georgia state registration | Georgia charitable registration and annual report fees, estimated at $50/year. Recurring in all three years. |
| Bank fees & administrative | Estimated bank account fees, payment processing fees (percentage of online donations), and miscellaneous administrative costs. Scales modestly with transaction volume. |
The Organization's financial projections demonstrate a strong and growing commitment to direct program service delivery:
| Year | Total Expenses | Program Service Expenses | Program Ratio |
|---|---|---|---|
| 2026 (Year 1) | $10,145 | $8,820 | 87% |
| 2027 (Year 2) | $11,960 | $10,060 | 84% |
| 2028 (Year 3) | $20,850 | $17,600 | 84% |
In all three projection years, program service expenses represent 84% or more of total expenditures. No compensation is paid to any Director or officer. The one-time IRS user fee in Year 1 is the only non-recurring administrative expense above $100. The Organization is structured to direct the maximum possible portion of every dollar received toward its charitable mission of providing any and all forms of assistance — including educational programs, humanitarian aid, relief of material need, and other charitable support — to displaced, orphaned, and vulnerable children and families in Trujillo, Peru.
The Organization manages financial risk through the following strategies, consistent with its published Revenue Model:
Diversified Revenue Base: The Organization intentionally pursues four distinct revenue streams — individual donations, recurring monthly giving, annual benefit concerts, and (in Year 3) corporate sponsorships and grants — to avoid dependence on any single source of funding.
Low Fixed-Cost Structure: Because the Organization's programs are delivered in Peru at local labor costs, and because all U.S.-based officers serve without compensation, the Organization maintains a low fixed-cost base that can be sustained even at modest revenue levels.
Conservative Grant Projections: The Organization has intentionally excluded grant revenue from Years 1 and 2, recognizing that grant applications take time and that favorable outcomes are uncertain. The Year 3 grant projection of $5,000 reflects a conservative estimate of one successful small award.
Phased Expansion: Program growth is deliberately phased — from 12 students in Year 1 to 50–75 in Year 3 — to ensure that expenses scale only as revenues are confirmed. The Organization will not expand enrollment beyond what its confirmed revenue can support.
Reliable Program Delivery: The Organization employs paid, dedicated local educators in Trujillo, Peru (currently Samuel Serban for music instruction; additional instructors to be engaged as new educational programs launch), rather than relying on volunteer-only instruction, to ensure consistent and reliable program delivery regardless of volunteer availability.
I, the undersigned, hereby certify that I am the duly authorized officer of Rising with Melodies Inc. and that the financial projections presented in this document are true, accurate, and complete to the best of my knowledge and belief, and that they are based on reasonable assumptions consistent with the Organization's actual activities, adopted plans, and documented commitments.