love where you live kalamazoo
kalam azo o co m m uni ty foundat ion 2 016 annual report
kalamazoo, our community, isn’t just a place. it’s people. it’s the people on these pages, connected by geography and to each other. it’s people who love where they live. we want you to see yourself in this community. because you love this community. you are this community. you are kalamazoo.
lov e w he re yo u l i v e kal am azo o
Each year, the development of our Annual Report
In response to the deadly bicycle crash, more than
provides us with the opportunity to reflect on the past
500 cyclists came together for a Ride of Silence to
year and highlight accomplishments and activities
honor the victims. The Kalamazoo City Commission
central to our mission, vision and priorities.
unanimously passed new ordinances to increase the
This year, we cannot look back without acknowledging the very real ways our community suffered in 2016. Last year, the entire nation focused on Kalamazoo for reasons we wish weren’t so. In February, shootings
safety of cyclists. Again, two powerful examples of collective community response. We are proud of how this community responded to these tragedies, proving itself a role model for others.
devastated eight families, leaving our entire region
While 2016 was a year of challenges, it also was one
shaken. Then just a few months later, in June, all eyes
of opportunity. Eyes turned toward Kalamazoo once
focused on Kalamazoo again as a motorist struck nine
again when individuals gave an unprecedented gift to
bicyclists, leaving five dead and four critically injured.
the city to alleviate financial strains and stimulate urban
Both events raised issues related to mental health, substance abuse and violence. And both events enabled Kalamazoo to demonstrate the unique, profound strength of a community that unites in the face of adversity. Both long-term and first-time donors stepped forward to support those affected by the February shootings by giving to the Help Now! Fund, a partnership of the Kalamazoo Community Foundation, Battle Creek Community Foundation, and United Way of the Battle Creek and Kalamazoo Region. Distributions from the fund have provided direct support to the individuals
development. This is just one example of community members working together to create change. We also see this happen nearly every day in the work of our nonprofit partners. This report, I AM KALAMAZOO, was inspired by the many powerful ways individuals in this community come together, time and again, to show their love for one another and for where we live. So please read on. Discover how we find opportunities in challenges. See how we lift one another up to reach our vision of a community where every person can reach full potential. Love where you live.
and families involved, and strengthened mental health resources and interventions provided by nonprofits in both Kalamazoo and Battle Creek. We were honored to join with these partners and many more.
ca r r ie picke t t-e rway president/ceo
si jo hn so n
chairperson, b oa rd o f tru s te e s
m eg bl in kiewic z
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ky d ne two rk is kalamazoo
Out-of-school time. It’s not a household phrase
“OST programs help kids do better at their job:
— yet — but making the most of this critical time
going to school. Our quality ratings have increased
for kids is the mission of Kalamazoo Youth Development
and youth are gaining important social-emotional
Network, known as KYD Network.
learning skills. We’ve always known what we do matters and now we have the data to better tell
A program of United Way of the Battle Creek and
our important story.”
Kalamazoo Region, KYD Network has been around for 15 years, with your Community Foundation
In addition to providing effective programming
providing numerous grants over the years to
to Kalamazoo-area kids, KYD Network plays a
support its innovative work.
leadership role in building the collective capacity of the youth-focused organizations that comprise
“Research demonstrates the positive impact of
Kalamazoo County’s OST sector.
high-quality programs offered during out-of-school time, which encompasses after-school and summer
According to Blinkiewicz, over the last few years
programming,” says KYD Network Director Meg
the number of local organizations partnering with
Blinkiewicz, Ph.D. Activities that at one time only
KYD Network to serve area children with high-quality
happened during the school year have been
programs has grown from 12 to 30. KYD Network
replaced with a year-round approach.
provides the organizations with training, coaching and technical assistance to ensure Kalamazoo County
Research shows when low-income students don’t
youth are ready for post-secondary education or
participate in OST programming, by fifth grade there’s
training — and ready to contribute to the community
already an achievement gap in math between them
in positive ways.
and their higher-income peers. When their OST participation is high and consistent, that’s not the case.
Says Blinkiewicz, “Over the last three to four years we’ve undergone a renaissance, growing the sector
Says Blinkiewicz, “Time spent in OST activities
through collaboration and working on inclusion and
means kids are more likely to engage in school
equity to get to impact.”
and graduate.
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c hri sto p he r te r ko s is kalamazoo
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c h ristoph er terkos
“I had a difficult upbringing regarding
While Terkos supports the Community
my sexual orientation,” says Christopher
Foundation’s LGBT Equality Fund
Terkos. “There was zero support and
— one of only a few charitable funds
I knew being out would mean
in the State of Michigan dedicated
being disowned by my family.”
solely to promoting equality for LGBTQ
This is just one reason why Terkos, a branch manager for PNC Bank who serves on the board of OutFront
people — he’s also a champion for the Community Foundation’s unrestricted Love Where You Live Fund.
its 2015 Giving Tuesday event at Bell’s.” Now, Terkos says, because he and KZCF share the same goal for the community — that it will be one where every person can reach full potential — he’s set up an automatic monthly gift. “I know my dollars are supporting the community’s greatest needs now and going for long-
Kalamazoo, likes how the Community
He finds it appealing that the Love
term good,” he says. “I encourage other
Foundation is supporting lesbian,
Where You Live Fund brings people
people to do it so their gifts can do the
gay, bisexual, transgender, queer and
together, pooling resources to make
most good too.
questioning youth.
giving accessible and maximize impact.
“I grew up in a rural community,
“The Community Foundation was more
KZCF’s work and partnerships with
without resources, so I know how
accessible than I first realized,” he says.
donors and nonprofits. It sets us apart
valuable those resources are,” he says.
“In fact, I ended up giving my first gift to
from other communities,” he adds.
“They can be lifesaving.”
the Love Where You Live Fund by text at
“Love where you live says it all.”
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“The whole community benefits from
m ayor bobby h opewel l
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he lp now ! is kalamazoo
The violence that occurred in Kalamazoo County on
Battle Creek Community Foundation, United Way of the
Feb. 20, 2016, was shocking. One man, for unknown
Battle Creek and Kalamazoo Region, and Kalamazoo
reasons, went on a shooting spree, killing six people
Community Foundation — was created.
and critically wounding two more within the span of
In the days and weeks that followed, the fund provided
just a few hours.
direct support to those involved and their families,
In the immediate aftermath, Kalamazoo Mayor
along with funding to nonprofits providing direct
Bobby Hopewell said, “We have always stepped up
support services to those involved, and funds for
when challenged, and we will stand together in this
agencies working on long-term solutions to
sad time. We cannot be fearful, but must instead unite
community violence.
and show the love and compassion that defines us
Local and national headlines echoed how we took
as a community.”
care of our neighbors: Nonprofits move swiftly to
So we did. Even as we grieved, we responded.
help, Hundreds helping victims and We are stronger
As a community, we responded with rallying cries
together. One news story highlighted the greater
of We are Kalamazoo and Kalamazoo Strong.
Kalamazoo community’s uncanny knack for resilience.
We — individuals from all walks of life, churches,
A year later, Mayor Hopewell remains resolute on
nonprofits, businesses, government leaders, law
the power of this collaborative community response.
enforcement agencies — responded with collective
“In the end, this incident did not define us,” he says.
efforts to support the people affected. Within 24
“We are stronger.”
hours, the Help Now! Fund — a collaboration of the
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o ur ap pr oac h to co m m uni ty p hi lanthro py is kalamazoo
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r em ov ing bar riers a nd a ddressing the needs a nd c hallenges of ou r community’s most ma rgina l ized peo ple w ill help kalam azoo county be a better community overa ll.
The Kalamazoo Community Foundation’s vision is a
development, education) can work toward reducing
community where every person can reach full potential.
disparities and use an equity lens.
As we see it, that community is one in which all kids
When educational and career advancement for adults
start school ready to learn, are supported throughout
is supported and achieved, the effects of generational
their academic career and are prepared for life after high
poverty are minimized, which helps neighborhoods
school. It’s one in which all adults have the skills they need
and households become more stable. In turn, stable
to live their best life and are able to support themselves
neighborhoods and households improve educational
and those who depend on them. It’s one in which every
outcomes for children. For this reason, our highest
person feels safe in every neighborhood. It’s one in which
investments will be in programs that improve education-
identities and attributes aren’t predictors of one’s ability to
related outcomes and advance equity.
live a high quality, self-determined life.
look in g a he a d
We’ve come to a fundamental understanding that
There will always be a need for programs and services
achieving this vision depends on recognizing who in
that help individuals meet their immediate basic needs.
our community is not able to reach their full potential
While we’ll always support organizations that provide
and why. As a community, we must address the causes
these services, we believe the community investments
of inequities by changing discriminatory laws, policies
we make in long-term efforts to address the causes of
and procedures. We must build programs that correct
challenges and change systems will positively affect
imbalances, expand opportunities and improve access
community conditions, reducing the necessity for
to resources for marginalized community members.
immediate-needs services and programs.
We must ensure all people can live authentically,
Therefore, when community conditions indicate and
embracing and celebrating their identities and cultures.
data supports that it’s appropriate, we’ll direct even more
Removing barriers and addressing the needs and
of our resources toward efforts that identify the causes
challenges of our community’s most marginalized
of challenges and create change at the system level.
people will help Kalamazoo County be a better
Creating such change will make impact significant
community overall.
and sustainable.
equity w ith an emphasi s o n ed uc at ion
This is a pivotal moment for our community. Engaging in this work at this time will disrupt cycles
Despite our community’s collective best efforts, we haven’t
of poverty and illiteracy. Engaging in this work will
been able to break its cycles of poverty and low academic
make our vision — a community where every person
achievement or attainment for marginalized individuals.
can reach full potential — a reality. In that reality,
We focus on equity and education because any program
every person who calls this place home has the skills
that impacts education-related outcomes and uses an
and opportunities they need to live a high-quality,
equity lens can lead to sustained individual and
self-determined life. In that reality, this community
community prosperity. Organizations from all sectors
— Kalamazoo County — is one where we all love
(e.g. social service, health care, the arts, economic
to live.
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co mb in e d s tat emen t o f fi nanc i al p o si ti o n and ac ti vit ies
as of december 31
2015
2016
402,602,064 6,711,324 10,285,380 6,710,000
430,615,336 24,447,155 10,392,113 6,530,041
$ 426,308,768
$ 471,984,645
24,235,546 5,026,844
25,707,631 4,665,894
total liabilities
$ 29,262,390
$ 30,373,525
total net assets
$ 397,046,378
$ 441,611,120
total liabilities and net assets
$ 426,308,768
$ 471,984,645
5,938,936 8,367,769 (14,063,543) (784,032)
23,455,974 8,224,043 32,844,930 (82,745)
$ (540,870)
$ 64,442,202
15,937,116 559,467 2,187,626 1,363,482 1,739,483
14,219,690 509,558 2,096,755 1,216,138 1,835,319
$ 21,787,174
$ 19,877,460
change in net assets
$ (22,328,044)
$ 44,564,742
net assets / end of year
$ 397,046,378
$ 441,611,120
assets cash and investments contributions and pledges receivable beneficial interest in charitable perpetual trusts other assets total assets liabilities and net assets funds held as agency endowments other payables
revenues public support dividends and interest net gain (loss) from investment transactions other income (loss) total revenue
expenses grants paid investment management fees program services donor relations and development administrative and general expenses total expenses
t he k a la m a zo o co m mu n i t y fou ndat i on’s audi t e d f i nanci al stat e m e n t s a re ava ila b l e on l i n e at k al fou nd.or g / p u b l i cat i on s.
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in v e stm e nt p e r fo r m anc e
According to a recent nationwide survey of community foundations by Colonial Consulting in New York City, your Kalamazoo Community Foundation’s investment performance ranked in the top one percent for the 10-year period ending Dec. 31, 2016. This is a result of our expertise, experience and commitment to an investment strategy of disciplined asset allocation, regular rebalancing, minimizing fees and expenses, and not reacting to near-term market pressures or new investment fads. Our endowed funds use a moderate growth strategy in which 70 percent are invested in equities, 25 percent in fixed income vehicles and five percent in real estate funds. Our non-endowed funds use an income and growth strategy that is 50 percent equities and 50 percent fixed income.
M ODE RAT E GR OWTH P E R FO R M AN C E / E N D OW E D F U N D S 2016 actual
12.3% 11.0%
1 year
5.4% 5.2%
3 years
2016 benchmark
10.3% 9.4%
9.5% 8.9%
5 years
7 years
6.1% 5.2%
10 years
I N COM E A N D GR OWTH P E R FO R M AN C E / N O N - E N D OWE D F U N D S 2016 actual
7.5% 7.4%
1 year
2016 benchmark
6.3% 6.1%
8.8% 8.4%
8.8% 8.4%
3 years
5 years
7 years
6.9% 6.0%
10 years
the moderate growth benchmark is a staged index composite benchmark that has the current composition of the Barclays US Aggregate Bond index (15 percent), Citibank WGBI Non-USD (10 percent), DJ US Select REIT index (2.5 percent), MSCI EAFE Small Cap index (10 percent), MSCI Emerging Markets Value index (10 percent), Russell 1000 Value index (5 percent), Russell 2000 Value index (10 percent), Russell Micro Cap index (5 percent), S&P 500 index (30 percent) and the NCREIF Fund Index ODCE (2.5 percent). the income and growth benchmark consists of the S&P 500 index (50 percent) and the Barclays US Aggregate Bond index (50 percent).
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o u r board and staff Our board of trustees provides guidance for our grantmaking and community leadership. Our trustees represent diverse community interests and donate their time, energy and expertise to help us identify opportunities for impact, respond appropriately when unforeseen challenges arise and address community needs. Our staff works closely with donors, grantees and others to help make Kalamazoo County a community where every person can reach full potential. It includes skilled professionals in grantmaking, donor relations, development, finance, administration, human resources and marketing communications.
jim escamilla board of trustees
mary harper board of trustees
barbara james board of trustees
si johnson chairperson board of trustees
frank sardone vice chairperson board of trustees
amy upjohn board of trustees
hon. carolyn williams board of trustees
carrie pickett-erway leadership and governance
candice atwater community investment
sandy barry-loken community investment
sue bos finance and administration
meredith bradford scholarship
raven britt donor relations
shannon bronsink marketing communications
sharon brown leadership and governance
kelly campbell finance and administration
stephanie carrier finance and administration
coby chalmers donor relations
joanna donnelly dales donor relations
david feaster community investment
ann fergemann donor relations
joni frick finance and administration
laura galaviz finance and administration
kari benjamin hamann community investment
selena jepkema finance and administration
kelley kellis human resources and facilities
cyekeia lee lanna lewis the learning community network of investment greater kalamazoo
julie loncharte donor relations
elena mireles-hill community investment
valerie mitchell donor relations
adrienne neubert donor relations
susan springgate finance and administration
tom vance marketing communications
jared volz the learning network of greater kalamazoo
katie paauwe karen racette the learning finance and network of administration greater kalamazoo
nancy timmons scholarship
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b e part o f o ur wo rk there are many ways
gi v e
In addition to our grantmaking to nonprofit organizations, we provide Kalamazoo-area students
In 2016, donors gave the Community Foundation
with scholarships for higher education. The scholarships
gifts totaling $23 million, ranging in size from $8 to
are used at two- or four-year colleges and universities,
$8 million. Donors also created 23 new funds, bringing
trade and technical schools, and for professional
the total number of funds held here to 864.
development opportunities. In 2016, Kalamazoo-
Giving to the Community Foundation is a powerful,
area students received 334 scholarships totaling
lasting way for you to be part of the community and
$1.1 million to continue their education. Learn more
our work. Your gifts to our Love Where You Live Fund,
at kalfound.org/scholarships.
which addresses the community’s greatest needs,
co n n ect
become part of a permanent endowment, which
When the Arcus Foundation gifted us our building
means they benefit Kalamazoo County forever.
in 2014, we all agreed it should be a space designed
If you’re interested in a special area of need, you can
to inspire collaboration and welcome the community.
give to one of our focused Love Where You Live Funds:
In 2016, meeting spaces at the Community Foundation
• Love Where You Live Fund (greatest needs)
were used on 106 separate occasions by 1,865 people
• Economic and Community Development Fund
from 52 unique organizations, at no cost to them.
• Education and Learning Fund
Learn more at kalfound.org/useourspace.
• Environment Fund
In addition to being part of our physical community,
• Health Fund
we’re part of virtual, social media communities.
• Housing Fund
We use our social media to share information about
• Individuals and Families Fund
our work and connect with you. In 2016, 1,165
• Youth Development Fund
new people joined our social media communities.
• Partners in Education Scholarship Fund
Connect with us on Facebook, Twitter, LinkedIn,
rec e i v e
Instagram, Pinterest and Vimeo.
We make community investments in quality programs we believe will make Kalamazoo County a place where
how to g i v e
every person can reach full potential. In 2016, nonprofits in our community and beyond received grants and
giv e o n l in e at k al fo u n d.o r g /g i ve
distributions totaling $13.1 million from Advised,
u se t he en clo sed en v e lo p e
Designated, Field-of-Interest and Unrestricted Funds.
t ex t G IVE to 2 6 9. 35 9. 3 3 76
Learn more at kalfound.org/grants.
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nonprofit organization u.s. postage paid kalamazoo, mi permit number 66
402 east michigan avenue kalamazoo, mi 49007-3888 269.381.4416
kalfound.org