Financial Report 2017

Page 1

report to the community

2017


dear friends,

t

he Central New York Community Foundation recently completed a landmark fiscal year, in more ways than one. In the following Report to the Community you will learn about our continuing significant impact, as we enter our 90th year. Between April 1, 2016 and March 31, 2017 we received more than $23 million in new contributions. These new funds helped us achieve the highest total asset level in our history — more than $226 million. Most importantly, we granted a record $14 million in much-needed support to nonprofits in Central New York and the surrounding areas. All of this was made possible by the collaboration of generous donors, dedicated staff, thoughtful board members and professional partners, for which we are grateful. Some of the past year’s highlights include:

A Foundation for Our Future: New Strategic Plan Introduced While this year signifies our 90-year anniversary, it also marks the launch of our new Strategic Plan for the next five years. This plan focuses on the core activities needed to further our new restated mission and is designed to be dynamic — encouraging strategy refinement based upon what we learn as we proceed.

5forCNY Featured in The Chronicle of Philanthropy

dear friends

2

Our 5forCNY campaign — an effort to retain a portion of local assets transferring between generations for the betterment of our community — was a national story featured in the December 2016 issue of The Chronicle of Philanthropy. You can learn more at 5forCNY.org.

First Impact Investment Awarded We awarded our first program-related investment (PRI) to Cooperative Federal Credit Union, increasing its ability to invest in promising individuals and businesses, and contribute to broader opportunities for community prosperity and economic opportunity.

Donald W. Ryder Fund Established, Grantmaking Begins Donald Ryder instructed that his entire estate — valued at approximately $750,000 — be donated to the Donald W. Ryder Fund at the Community Foundation. This unrestricted fund, which supports nonprofit capital projects, made its first grant to the Rescue Mission to establish a designated family eating area in its Food Service Center.

New Community Foundation Leadership Team This year we welcomed Kimberly Sadowski, CPA as Vice President & Chief Financial Officer. Jennifer Owens, CAP was promoted to Senior Vice President & Chief Development Officer. Frank Ridzi, Ph.D. was appointed to the leadership team as Vice President, Community Investment, as was Katrina Crocker when she became Vice President, Communications. Later this year, look for our separate anniversary celebration book, which will chart the Community Foundation’s history of impact. As we look ahead, we envision a bright future for Central New York. We welcome new opportunities that foster growth, support effective nonprofit leadership and inspire greater giving within our community.

Peter A. Dunn President & CEO


financial information $226

$23

Total Assets

Total Contributions

MILLION

MILLION

SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2017

BALANCE SHEET Assets

Receivables & Other Investments Total Assets

$ 21,022,920 205,357 ,145 $ 226,380,065

Liabilities & Net Assets

Grants Declared and Not Yet Paid $ 2, 605,685 Other 17, 551,644 Net Assets 206,222,736 Total Liabilities & Net Assets $ 226,380,065 STATEMENT OF ACTIVITIES Revenues

Contributions $ 23,076,610 Net Return on Investments 20,896,518 Other 211,332 Total Revenues $ 44, 184,460 Grants & Expenses Grants $ 14,051,939 Program Support 1,407,810 Operating Expenses 1,763,264 Total Grants & Expenses $ 17,223,013 Change in Net Assets

$ 26,961,447 $ 179, 261,289 $ 206,222,736

The Community Foundation’s audit is conducted by Bonadio & Co., LLP. The complete Consolidated Financial Statements, with accompanying footnotes, as well as Form 990, are available for inspection at the Community Foundation office and online at cnycf.org.

7.6%

Total Grants

Investment Return Since 1994*

MILLION

t

he Community Foundation is proud to serve as a permanent charitable resource in Central New York. Through prudent stewardship of our assets, we strive to maximize available grant dollars while ensuring that the charitable funds entrusted to us will continue to support our region for many years to come. The responsibility for managing the Community Foundation’s investment portfolio is vested in our board of directors through its finance committee. This committee works closely with our investment consultant and staff to set policy, establish performance benchmarks and continually monitor the effectiveness of the portfolio. The Community Foundation sets long-term goals for investment performance and uses this estimate to establish a prudent spending policy for endowed funds. The amount available to spend from endowed funds, including those that support our Community Grantmaking program, is currently set at 4.4% of the fund balance averaged over 20 quarters of time. Using this disciplined policy allows us to provide consistent funding even when markets are volatile. Through the generosity of individuals who have entrusted us with their charitable legacies, as well as those who have served our endowment with their expertise, the quality of life in Central New York will be enriched for generations to come. *10/1994 is the inception of our relationship with Colonial Consulting as our portfolio consultant.

financial information

Net Assets Beginning of Year Net Assets End of Year

$14

3


ASSETS BY FUND TYPE

n

Donor-Advised

$79,449,327 n

Community Funds

$72,392,302 n

Scholarships

$26,960,930 n

STRATEGIC ASSET ALLOCATION

$226,380,065 Total Assets

Designated and Special Projects

$18,779,424 n

Field-of-Interest

$18,421,872 n

Nonprofit Endowments

$10,376,210

U.S. Equity

30%

CONTRIBUTIONS BY FUND TYPE Non-U.S. Equity

29%

n

Donor-Advised

$16,984,347 n

Designated and Special Projects

$2,554,039 n

Scholarships

$1,860,141

Fixed Income

21%

n

$23,076,610

Total Contributions

Community Funds

$1,383,162 n

Field-of-Interest

$294,921

Alternatives

20%

GRANTS BY FUND TYPE

n

Donor-Advised

$7,460,011 n

Designated and Special Projects

$2,345,053 n

Scholarships

$2,082,676 n

financial information

4

$14,051,939 Total Grants

Field-of-Interest

$1,202,059 n

Community Funds

$962,140

The graphs on these pages represent financial information as of fiscal year ended March 31, 2017.


TOTAL ASSETS $250,000,000

$226,380,065

200,000,000

150,000,000 Total Grants

100,000,000

50,000,000

2012

2013

2014

2015

2016

2017

NET ASSET BRIDGE DOLLARS IN MILLIONS

20.9 (14.0)

OPERATING EXPENSES

(1.7)

$206.2 2017 Net Assets

CONTRIBUTIONS & OTHER INCOME

2016 Net Assets

PROGRAM SUPPORT

INVESTMENT RETURNS

$179.2

GRANT EXPENSE

(1.4) 23.2

TOTAL GRANTS $16,000,000

$14,051,939

14,000,000 12,000,000

10,000,000 8,000,000

4,000,000

2,000,000

2012

2013

2014

2015

2016

2017

Lush spring greens populate the rolling hills of Madison County.

financial information

Total Grants

6,000,000

5


community fund donors

community fund donors

6

Anonymous (3) Accurate Refrigeration, Inc. Mr. Robert R. Andrews & Mrs. Alice E. Andrews Ms. Dianne Apter Timothy Atseff & Peggy Ogden Steven & Laurie Berkowitz Ms. Catherine A. Bertini & Mr. Thomas Knobel Marilyn M. Bittner Ms. Marie Bolick The Breuer Family Mr. Craig A. Buckhout & Mrs. Carol Buckhout Evelyn C. Carter Ann Catalfamo Hon. Julie A. Cecile & Hon. James H. Cecile Chadwick Martin Bailey, Inc. Ms. Ann E. Collins & Dr. George H. Collins Mr. W. Carroll Coyne Dr. Casey Crabill Mrs. Susan Craig Mr. Richard Dausman Virginia M. DeBenedictis Mr. Sidney Devorsetz Natalie Dickinson Peter & Brigid Dunn John G. Eberle & Pamela B. Eberle Mark Feldman Mr. David M. Fulmer & Mr. Scott D. Fulmer Mr. Kevin Garabedian Lee M. Gatta & Joe Reddick Gaylord Estate Linda & Anthony Gero Grace & Reno Ghezzi Manlius Pebble Hill School Community Mr. David S. Graham Mr. Richard Green & Mrs. Dolores Green Mrs. Stewart F. Hancock, Jr.

The Community Fund provides the resources and flexibility necessary to respond to the most critical issues facing Central New York. The majority of our Community Grantmaking, special initiatives and civic engagement grants are made through this fund. Gifts from the donors listed below have allowed us to grow a permanent source of charitable funds and we gratefully acknowledge them.

Mr. William J. Hemmerlein & Mrs. Sandra J. Hemmerlein Mr. Joseph J. Hipius & Mrs. Donna J. Hipius Richard & Deborah Hole Mr. Daniel Holl Mrs. Madelyn H. Hornstein & Mr. Dale H. Hornstein Mr. Patrick Hughes Danielle Hurley Mr. Karl Jacob Elaine & Steven L. Jacobs Mr. Theodore F. Jarosz & Mrs. Susan T. Jarosz Lewis & Julie Johnson The Lamplighters, Inc. Jan & Patrick Lane Larry & Mary-Lynne Leatherman Harold & Mary Leonard Bob & Zalie Linn Ms. Sarah Lucia James MacKillop Candace & John Marsellus Mrs. Kimberly Marsters Sandy & Dan Masterpolo Mr. George Matthews & Mrs. Dorothy R. Matthews Mr. William H. McConaghy & Mrs. Jo McConaghy Monica M. Merante Richard & Chris Moseson John & Ellie Mott Ms. Christine T. Musial Network for Good Ms. Marion R. Nydam NYS Chive William D. O’Brien Ms. Susan D. O’Connell Mrs. JoDean H. Orcutt & Mr. Timothy P. Orcutt Jennifer & John Owens Mr. Timothy Penix & Mrs. Tina Penix Ms. Judy M. Phinney Mrs. Onetia T. Pierson

Elaine R. Rubenstein Jeff & Julie Rubenstein Mr. M. Jack Rudnick & Mrs. Stephanie C. Rudnick Kimberly & Eric Sadowski Phyllis Hotchkiss Schwartz Sidney Frank Importing Co., Inc. Ms. Rhoda L. Sikes John M. Shannon Ms. Barbara J. Smith Ms. Della Tharpe Mr. Gregory R. Thornton & Mrs. Ellen M. Thornton Mr. Alexander J. Torelli & Mrs. Cynthia A. Torelli Dr. Paul F. Torrisi & Mrs. Mary D. Torrisi Dr. Martha B. Viglietta Wegmans Food Markets, Inc. Mr. Dan Yoder

in memory/ in honor of

The following people were named with gifts to the Community Fund in their honor or memory. In Memory of Cora Brown Pamela B. Caswell Harold “Bud” Edwards, Jr. Edward S. Green Stewart F. Hancock, Jr. Corey Hill Philip L. Holstein Gregory McClurkin David Moynihan Tom M. Phinney Jr. In Honor of C. Stringham

community funding partners

The following organizations donated in-kind or monetary support towards our programs. 55 Plus Magazine The Bonadio Group Bousquet Holstein, PLLC CNY Prime Colonial Consulting Dermody, Burke & Brown, CPAs Estate Planning Council of CNY Financial Planning Association of Central New York Lee Gatta, CLU®, ChFC®, AEP® Health Foundation for Western & Central New York Mackenzie Hughes, LLP NBT Financial Group Onondaga County Department of Social Services Oswego County Business Magazine Prudential, Empire State Agency The Rulison Group, Morgan Stanley Smith Barney Society of Financial Service Professionals Syracuse Media Group


staff

board of directors

staff & board of directors

*Term commenced April 1, 2017 ** Board service completed March 31, 2017

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central new york philanthropy center 431 east fayette street suite 100 syracuse, ny 13202

What could your gift do in 50 years? How an Endowed Fund Can Extend Your Giving*

Endowed funds are created to last in perpetuity. Only a responsible percentage of an endowed fund is used each year for grants to nonprofits. The fund is invested so that it will continue to grow to support the annual spending and keep up with inflation. The charts below show a hypothetical fund created with a $100,000 gift and how it might grow to make grants over the next 50 years, eventually far surpassing the original gift amount.

$350,000

$300,000

$300,000

$250,000

$250,000

contact us: 315-422-9538

cnycf.org

$253,292 $170,601

$150,000

$102,559

$50,000

â€

$100,000 $46,570

$144,159

Year 1 Year 10 Year 20 Year 30 Year 40 Year 50 * Assumptions: 7.6% investment return, current 4.4% spending rate, 1% fee

$200,000

$4,400

$50,000

$100,000

$100,000

$118,621

$150,000

$175,195

$200,000

$353,785

$350,000

$258,749

Cumulative Grants

$212,912

Fund Growth

Year 1 Year 10 Year 20 Year 30 Year 40 Year 50 â€

Grants awarded surpass original gift amount.

Confirmed in Compliance with National Standards for U.S. Community Foundations.


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