Independent Auditors’ Report

Distribution Committee of The New York Community Trust and Board of Directors of Community Funds, Inc.:

Opinion

We have audited the consolidated financial statements of The New York Community Trust and Community Funds, Inc. (including its Long Island and Westchester Divisions) (collectively, The Trust), which comprise the consolidated statements of financial position as of December 31, 2022 and 2021, and the related consolidated statements of activities, and cash flows for the years then ended, and the related consolidated notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of The Trust as of December 31, 2022 and 2021, and the changes in its net assets and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of The Trust and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about The Trust’s ability to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of The Trust’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about The Trust’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

New York, New York

June 1, 2023

THE NEW YORK COMMUNITY TRUST AND COMMUNITY FUNDS, INC.

(Including Its Long Island and Westchester Divisions)

Consolidated

See accompanying notes to consolidated financial statements.

THE NEW YORK COMMUNITY TRUST AND COMMUNITY FUNDS, INC.

(Including Its Long Island and Westchester Divisions)

Consolidated

Years ended December 31, 2022 and 2021

THE NEW YORK COMMUNITY TRUST AND COMMUNITY FUNDS, INC.

(Including Its Long Island and Westchester Divisions)

Consolidated Statements of Cash Flows

See accompanying notes to consolidated financial statements.

THE NEW YORK COMMUNITY TRUST AND COMMUNITY FUNDS, INC.

(Including Its Long Island and Westchester Divisions)

Notes to Consolidated Financial Statements

December 31, 2022 and 2021

(1) Organization

The New York Community Trust and Community Funds, Inc. (including its Long Island and Westchester Divisions) (The Trust) are community foundations created to build permanent charitable endowments for the greater metropolitan region. The Trust, as the consolidated foundations are hereinafter referred to, is tax-exempt under Section 501(c)(3) of the Internal Revenue Code (the Code) and has been determined not to be a private foundation under Section 509(a)(1) of the Code. The Trust administers more than 2,000 individual charitable funds, each established with an instrument of gift describing either the general or specific purposes for which grants are to be made, from a spending plan distribution, income, and in some cases from principal

(2) Summary of Significant Accounting Policies

(a) Basis of Accounting

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP).

(b) Basis of Consolidation

The accompanying consolidated financial statements include the accounts of The New York Community Trust (NYCT) and Community Funds, Inc (CFI). All significant intercompany balances and transactions have been eliminated in consolidation.

(c) Basis of Presentation

The classification of the Trust’s revenue and gains (losses), is based on the existence or absence of donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restriction. U.S. GAAP requires that the amounts of each class of net assets, without donor restriction and with donor restriction, to be displayed in the balance sheets and that the amounts of change in each of those classes of net assets be displayed in the statements of activities. These classes are defined as follows:

Net assets without donor restrictions – Net assets which are not subject to donor-imposed stipulations or the restrictions have expired and/or have been satisfied. While many of The Trust’s assets are subject to donor-imposed purpose and/or endowment restrictions, as a community foundation The Trust’s governing documents provide for the exercise of the “variance power,” which is the power to lift one or more restrictions in a gift instrument where changed circumstances have rendered literal compliance with the restriction unnecessary, undesirable, impractical, or impossible. Accounting standards provide that if the governing body of an organization has the ability to remove a donor restriction, the contributions should be classified as net assets without donor restrictions. Accordingly, the consolidated financial statements classify all net assets as without donor restrictions.

(d) Cash and Cash Equivalents

Cash equivalents represent short-term investments with original maturities of 90 days or less, except for those short-term investments managed as part of long-term investment strategies.

THE NEW YORK COMMUNITY TRUST AND COMMUNITY FUNDS, INC.

(Including Its Long Island and Westchester Divisions)

Notes to Consolidated Financial Statements

December 31, 2022 and 2021

(e) Fixed Assets

Fixed assets are recorded at cost and are depreciated on a straight-line basis over the estimated life of the respective asset. Leasehold improvements are depreciated over the life of the respective improvement or the remaining term of the lease, whichever is shorter. Fixed assets are reported net of accumulated depreciation of $1,151,699 in 2022 and $1,034,966 in 2021

(f) Contributions

Contributions are recorded as revenue at fair value in the period received or pledged. Conditional contributions are recognized as revenue when the barrier(s) in the agreement are overcome.

(g) Grantmaking

Grants and services to beneficiaries (Grantmaking) are primarily unconditional and usually paid within one year Unconditional grants are expensed with approval of the Distribution Committee of NYCT or the Board of Directors of CFI. Conditional grants are recognized as expense after all barriers have been met by the beneficiary.

(h) Spending Policies

The Trust has adopted a constant growth spending plan for many of its funds. This approach allows spending to increase at a steady rate within the confines of a floor, a ceiling, and a cap.

(i) Use of Estimates

Accounting estimates are an integral part of the consolidated financial statements prepared by management and are based upon management’s current judgments. Significant items subject to such estimates and assumptions include valuation of investments and pension and postretirement medical benefit obligations and related costs. Actual results could differ from those estimates

(j) Accounting for Uncertainty in Income Taxes

The Trust recognizes the effects of income tax positions only if those positions are more likely than not of being sustained. As of December 31, 2022 and 2021, the Trust does not have any uncertain tax positions or any unrelated business income tax liability that would have a material impact upon its consolidated financial statements.

(k) New Authoritative Accounting Pronouncement

In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Topic 842 requires recognition of rights and obligations arising from lease contracts as assets and liabilities on the balance sheet. Topic 842 also requires expanded qualitative and quantitative disclosures. The Trust adopted this ASU on a modified retrospective basis transition approach using the effective date method, which was January 1, 2022. The Trust’s right-of-use (ROU) assets and lease liabilities for operating leases at adoption were $16,202,803 and $16,728,354, respectively.