2015
ANNUAL
REPORT
Connecting People, Charitable Causes, and Permanent Capital for Community Impact
A A A C F AT A G L A N C E
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The Ann Arbor Area Community Foundation (AAACF) is a philanthropic organization with a broad community focus: enriching the quality of life in Washtenaw County. More than 50 years ago, citizens established the foundation as a permanent source of community capital. Think of us as a savings account for the community, with proceeds from our endowed funds distributed as grants for local nonprofits and scholarships. In more technical terms, AAACF is a tax-exempt public charity* that helps individuals, families, groups, and organizations accomplish their philanthropic goals. Through a core team of 17 Trustees, a staff of 10 FTE, and 350+ volunteers, AAACF connects people, charitable causes, and permanent capital for community impact. * One of more than 700 community foundations nationwide and the 10th largest of 63 community foundations in Michigan.
Personalized Service. Local Expertise. Innovative Collaborations. We believe these qualities set AAACF apart as we aim to be more than funders—we also live, engage, and raise families here. We are your community foundation for impact in Washtenaw County!
SINCE OUR 1963 FOUNDING:
75M+
$
total assets
570
9700+
total funds, including
grants & scholarships, totaling
115 endowments for local nonprofits
43M+
$
2015 HIGHLIGHTS
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At AAACF, we are continually investing in the future of Washtenaw County. In 2015, we worked to explore new ways to serve our community, support local nonprofits, and leverage our deep networks. With a grant from the Michigan Health Endowment Fund, AAACF is investing an additional $370,000 in health and human services through the Washtenaw Coordinated Funders Collaborative. It also allows us to partner with organizations like Washtenaw County Public Health to host conversations across the county, engaging communities in giving voice to their health needs. By bringing in additional regional funding, we are leveraging our existing investments to bolster Washtenaw County as a whole. As we strengthen the nonprofit community, we are also building our own capacity. We were honored to receive a $250,000 grant from the Ralph C. Wilson, Jr. Foundation in 2015. This grant advances our internal capacity in several ways, including expanding our conference room—which will allow us to host larger meetings and community convenings. It will also underwrite the cost of launching a charitable gift annuities (CGA) program. This new service will help expand local philanthropy and allow us to better serve nonprofits and donors alike.
Community Conversations. Enhanced Capacity. Strengthened Partnerships. Thanks to these new investments and more* in 2015, AAACF is poised for an even more exciting future of serving Washtenaw County. * A list of donors and funds is available on our website: aaacf.org.
IN 2015:
3M+
$
distributed as
650+ & 200+ grants
scholarships
3.9M+
$
in gifts & pledges, including
13 new funds
BOARD OF TRUSTEES
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Michelle Crumm Chair
George Borel
Jennifer Poteat
Cindy Cattran
Paul Schutt
Tim Wadhams Vice Chair
Marie Deveney
Sam Talsma
Brian P. Campbell Treasurer
Jeff Hauptman
Kevin B. Thompson
Robert Laverty
Dr. Levi T. Thompson
Nancy Margolis
Doug Weber
Ann Davis Secretary
Elizabeth Petoskey
AAACF Board of Trustees. Front row (L-R): Paul Schutt, Michelle Crumm, Jennifer Poteat, Jeff Hauptman, Elizabeth Petoskey. Back row: Nancy Margolis, Ann Davis, Kevin Thompson, Doug Weber, Brian Campbell, Cindy Cattran. Not pictured: Tim Wadhams, George Borel, Marie Deveney, Robert Laverty, Sam Talsma, Levi Thompson.
Michelle Crumm, Chair (right), and Tim Wadhams, Vice Chair.
We thank (L-R): Shreya Menon (Youth Council Representative), Frederick McDonald, II, and Bhushan Kulkarni (Immediate Past Board Chair), who ended their terms this year, for their service.
AAACF VOLUNTEERS
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We are for the community and by the community. We thank the 350+ volunteers who contribute time and expertise to every aspect of our work. Devon Akmon Kirk Albert Steve Alexandrowski Tom Allor Robert O. Andrus Wayne Appleyard Patrick A. Aquart John Arenz Steve Armstrong Shawn Ashley Aleyah Austin Kathleen Dul Aznavorian Mary Bakhaus Mark Baldwin Ellen Banta Kiana Barfield Karl Barr Rose Bellanca Bruce Benner Blair Beuche Debbie Beuche Sarah Bishara Herb Black Chris Kahan Black Thomas H. Blaske George Borel Charlie Borgsdorf John Boshoven Fred Boyd Rebecca Boylan Ralph Bozell Robert Brackenbury Lori Brewer Linda Schlanderer Brewer Deb Brinklow Peter Brody-Moore Steve Brouwer Connie Brown Gary Bruder Carol Otto Buatti Jill Buerkel Jamie Buhr Caryl Burke Angie Burns Charlie Butz Letitia Byrd Brian P. Campbell Jeff Campbell Amanda Carlisle Cindy Cattran Nancy Caviston Peter Ceglarek Marsha Chamberlin Robert Chapman Dr. Dan Chapman Eve Claar Mark Clevey Constance Cook Jane Coon
Anne Cooper James Cornils Mary Cornils Joseph Cousin Paul Cousins Don Cox Daniel Cox Colleen Creal Michelle Crumm Shirlee Curfman Pamela Cuthbert Claire Dahl Don Dalgleish Tom Daniels Martha Darling Lyn Davidge Art Davidge Ann Davis Dottie Davis Dean DeGalan Dan DeLano Shoshana DeMaria Chris DeRuyver Marie Deveney Nick Dever Thomas Dew Judith DeWoskin Virginia Diepenhorst Audrey Price DiMarzo Steve Dobson Marlene Donoghue Alex Drain Connie Dunlap Patty Durkee Kristel Durkee Marcus Edmondson Andrew Eggan Erik Eibert Cheryl Elliott Andy Emmert Carole Empey Mairead Erhardt John Evangelista Rob Ewing Ellie Falahee Nina Farahanchi Cheryl Farmer Paul Fassbender Lynette Findley, Ph.D. Karl Fink Terry Foster Mark Foster Roy Foster Dr. Harry Fountain Anthony Frasca Andy French Sr. Yvonne Gellise Tom George Brianna Gholston Elizabeth Gibbons Nan Gill
Rachael Goldberg John Goss Lon Grantham Natalie Gratsch Charles Groh Robert Guenzel Jamie Guise Rahul Gupta Simone H.Taylor Jeff Hall CJ Hall Jinan Hamood Donald Harrison Tom Harrison Jeffery Harrold Jeff Hauptman Ethan Hawker James Hawkins Ashley Hay Laura Hayden Janet Haynes Alice Held Norman Herbert Karan Hervey Amy Hetzler John Hieftje Nancy Higgins Brynne Hindle Julia Hines Howdy Holmes Charles Hookham Patricia Horne-McGee Norman Howard Mickey Howe Sandy Hurd Laura Irgang Derrick Jackson Shirley Jallad Jan James Jeff Jenkins Beth Johnson Penny K. Joy Thomas Kallewaard Michael Kapolka Doug Kelly Robert Kerschbaum Christina Kim Sara Armstrong King Bill Kinley Pam Kirchen Josh Knapp Joseph C. Koch, CFP Cathy Kohn Michael Kohn John Kotarski Becky Kozlik Jeff Krusinga Bhushan Kulkarni Jonathan Lane Sarah Laverty Robert Laverty
Charles Leahy Shoshana Lenski James Leventis Craig Levin Edith Lewis Jennifer Lickers Mark Lindke Tambra Lipper Dr. Donald M. Loppnow Hon. Ronald Lowe Dick Lundy Richard Lupkes David Lutton Brigit Macomber Nancy Magnani Marta Manildi Patricia Manley Nancy Margolis Michael Marsh John Matlock Karen Maurer Sally McCracken Courtney McCreadie Frederick McDonald, II Bettye McDonald Ken McGraw Shreya Menon Scott Menzel Christian Mercer Al Metty Zyad Mian Robert Miller Lonnie Mitchell Doug Moffat Dorian Moore Jill Morey Hugh J. Morgan Ginny Morgan John Morman Dave Morrison Rishi Moudgil Roy Muir Carmalita Mullins Evan Murphy Warren Musson Jo Muszkiewicz Joan Nagy Robert Nelson Catherine Nicoli John Nixon III John Nixon Ryan Noel Judy Nold John Norman Tom O’Brien Ellen O’Malley Karen O’Neal Jerry O’Shaughnessey Matt Orringer Naseem Othman
Sydney Padgett Kitty Padgett Andre’ Parker Willis Patterson Catherine Pawloski Susan Weldon Pearlman Mark Pearlman Dennis Pearsall Dr. Jim Peggs Frank Pelosi Gregory Peoples Elizabeth Petoskey Jennifer Poteat Brittany Powers Lisa Qian Stephen Raimon Vicki Reaume Jack Reid Russell Reister Sandra Restaino James Roach Scott Robinson II Lawrence Rowley Jesse Rubin Gail Ryan Paul Saginaw Trudy Salmeen Waleed Samaha David Sarns Paul Schreiber Edwin A Schulz, CPA Dr. Julie Schumaker Paul Schutt Erik Serr Yasmeen Shakour Romy Sharieff Tennille Sharpe Dr. Tom Shehab George Sherman Mark Shriberg David Siegrist Barry Simescu Abigail Simon Jim Simpson Loretta Skewes JoAnn K. Slater Jennifer Smith Michael Smith Joan Stahman Robbie Stapleton Gloria Stapp Dick Steele Tom Steele Don Stein Greg Stejskal Liz Stern Karl Stern Norman J. Stevens John Steward Beth Steward
Carol Stringwell Britten Stringwell Erik Stringwell Leah Stringwell Luman Strong Mark D. Swanson Sam Talsma Pat Tamblyn Holden Tamblyn Mayor Christopher Taylor Jim Thomas Dr. Levi Thompson Kevin B. Thompson Dr. Christopher Timmis Jordan Tirico Kristin Tomey Roberta Towne Sandra Turner Tom Ufer Obiageri Ugwevgbu Karen Valvo Tracey Van Dusen Pat Van Volkinburg Chris Vaughn James Vermeulen, Jr. Tim Wadhams Ken Wadland Fr. Brendan Walsh Richard Ware Helen Warren Dr. Ed Washabaugh Leigh Washabaugh Doug Weber Jerry Weidenbach Milton Weidmayer David Weirman Brian Weisman John Weiss Susan Westerman Chris Westfall Robert White Brian Williams Beverly Willis Kerry Winkelseth Kim Wolske Ronald Woods Dr. Lynn Wooten David Wright Sabrina Wu Ryan Yang Christopher M. Yee Moira Yuhas Nicholas Zagar Dabo Zhang
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GRANT PROGRAM HIGHLIGHTS
The power of permanent community capital. In 2015, AAACF took an exciting step to start awarding both operating support and capacity-building grants. We achieve impact by investing in successful nonprofits. Operating support can be used for any missionrelated activity, providing flexible funding to nonprofits for increased community impact.
AAACF’s competitive grant programs invest in nonprofits across Washtenaw County. Through partnerships and data-driven decision making, we enhance our community’s vibrancy as we invest in both people and place. These examples from our 2015 grants demonstrate the power of permanent community capital. Full grants list available: aaacf.org
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Chelsea Senior Center
Accion Buenos Vecinos
Our Rewarding Success program provided General Operating Support
Coordinated Funding provided start-up and infrastructure funding
Dexter Chelsea
Ann Arbor Dexter Community Orchestra Youth Council grant for the Instrument Petting Zoo at Dexter Daze
Corner Health Center
Ypsilanti Growing Hope
Manchester Saline Riverfolk Music and Arts Festival Cultural Economic Development provided support for the Blacksmith Shop Concert Series
YACF supported a grant to provide new mothers with essential newborn supplies
Coordinated Funding invested in comprehensive capacity building with Nonprofit Enterprise at Work
Saline Area Social Services Community Impact funds supported leadership & professional development
Milan
Aid In Milan Bach Fund for Seniors grant supported transportation services for Meals on Wheels deliveries
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2015 FINANCIAL HIGHLIGHTS
Total Assets Total Assets December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 75,600,464
Total Assets December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 77,656,338
Revenue, Gains, and Support Gifts and Pledges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 3,938,447 (1)
Net Investment Revenue and Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ –1,102,916
Total Revenues, Gains and Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 2,835,531
Expenditures Grants and Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 3,006,858 (1)
Investment Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,363,392
Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 4,753,752
383,502
Investment Returns (Annualized) AAACF Benchmarks
2015
2014
2013
2012
3 YEARS
5 YEARS
7 YEARS
–2.10% 5.30% 14.00% 13.50% 5.50% 5.50% 9.10% –1.8%
5.30%
13.50%
11.80%
5.40%
5.00%
7.80%
Notes to Financial Information (1) The totals reflected in “Gifts and Pledges” and “Grants and Scholarships” include activities related to AAACF’s Agency Funds and AAACF’s Special Project Funds. Due to accounting rules, those activities are excluded from the gift totals in our audited financial statements.
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Asset Allocation
Private Equity & Venture Capital (7.6%)
Assets by Fund Type Real Assets (8.2%)
Domestic Equity (24.4%)
Fixed Income (10.5%)
Charitable Remainder Trust (1%) Agency Funds (25%)
Unrestricted Funds (20%)
Scholarship Funds (8%) Special Project Funds (1%)
Flexible Capital / Hedge (15.1%) Liquid Capital (10.6%)
International (Developed) Equity (23.6%)
Field of Interest Funds (20%)
Donor Advised Funds (21%) Administrative Funds (4%)
AAACF invests assets to maximize long-term returns while assuming a reasonable level of risk in order to support our grantmaking. The total return strategy ensures that investment objectives will be met over long-term investment cycles, with thoughtful diversification to help weather volatile periods. Returns are expected to outperform benchmarks over a multi-year market cycle, which continues to be the case. As long-term institutional investors, we remain confident that our portfolio is well-positioned for stable growth over time, consistent with our permanent endowment philosophy.
The Ann Arbor Area Community Foundation is fully accountable to the donors and citizens of our community. We are pleased to make available more detailed information regarding our operations upon request. The Ann Arbor Area Community Foundation meets the Council on Foundations’ National Standards for Community Foundations.
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A A A C F S TA F F
Neel Hajra President & CEO nhajra@aaacf.org
Katie Van Dusen Community Investment & Projects Coordinator kvandusen@aaacf.org
Maryellen Ferro Community Investment Officer mferro@aaacf.org
Deborah VandenBroek Development Manager, Sr. Yvonne Gellise Fund dvandenbroek@aaacf.org
Christopher Lemon Youth Council Advisor clemon@aaacf.org Diann Moses Gift & Records Coordinator dmoses@aaacf.org
Katelyn Videto Donor Services Officer kvideto@aaacf.org Patricia Walker Chief Operating Officer pwalker@aaacf.org
Jillian Rosen Director of Community Investment jrosen@aaacf.org Denise Sandor Data and Research Coordinator dsandor@aaacf.org Phillippia Shumate Controller pshumate@aaacf.org Shelley Strickland Vice President for Development & Donor Services sstrickland@aaacf.org
2015 marked the first full year of leadership by Washtenaw County native Neel Hajra.
How to
+ GIVE ENGAGE
We receive gifts from people from all walks of life. We nurture these gifts for long-term performance and steward legacies in perpetuity. We can continue to support Washtenaw County through ongoing contributions from our citizens, including gifts of:
CASH STOCK RETIREMENT ASSETS REAL ESTATE INSURANCE
You can give now or later through your estate plan. We can work with your attorney, accountant, or other advisors to realize your philanthropic goals. Permanent named funds begin at $5,000.
You can support an existing fund or establish a new one, with a focus from a specific nonprofit to a countywide grantmaking program.
Interested in talking about ways you can make an impact? Contact Shelley Strickland at sstrickland@aaacf.org or 734.663.0401.
Our doors are always open.
Mission The Ann Arbor Area Community Foundation enriches the quality of life in our region through our knowledgeable leadership, engaged grantmaking, and creative partnerships with donors to make philanthropic investments and build endowment.
301 North Main St., Suite 300, Ann Arbor, Michigan 48104
734.663.0401 | info@aaacf.org | aaacf.org