Financial information has to be reduced to the simplest possible form for me to follow. Fortunately, a reader, Brian, has been extracting the data from Answers in Genesis’s Form 990 tax information, and this chart tells me what I need to know.
The key thing is the lowest, gray line: that’s the revenue from the Creation “Museum”. The yellow line above it is the Creation “Museum’s” expenses. Now I’m no economics whiz, but it seems to me that having expenses that are significantly greater than revenues is a bad thing. The top two lines are overall expenses and revenues, and notice that revenue dropped below expenses in 2010.
The most interesting conclusion I have come to is that the Ark Project is quite clearly an effort to gain a massive cash injection into the organization given the losses they have been sustaining due to the Creation Museum’s operation.
Losing the tax incentives from the state must have AiG’s administration freaking out — and they must be aware that construction is going to be a massive upfront expense, and they’re gambling on it providing increased revenue in the future. But notice that the Creation “Museum” itself has never provided a net profit to the organization, so why would they expect that an even bigger invest will finally start bringing in more money?