ANNUAL REPO RT
AAACF AT A G L ANC E The Ann Arbor Area Community Foundation (AAACF) is a nonprofit organization with a broad community mission: enriching the quality of life in Washtenaw County. More than half a century ago, citizens established the foundation as a permanent source of community capital.
A broad platform for community philanthropy
A steward for permanent 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. Through a core team of 17 Trustees, 11 staff, and 400+ volunteers, AAACF connects people—advisors & their clients, individuals & families, groups & organizations—with charitable causes.
A broad platform for community impact
In more technical terms, AAACF is a taxexempt public charity. We are among the top 10 largest of Michigan’s 63 community foundations and the fastest-growing foundation of any type in Southeast Michigan. AAACF helps people to accomplish their charitable goals, especially through the power of endowment.
SINCE OUR 1963 FOUNDING:
$
135M+ total assets
11,000+ grants & scholarships, totaling
$
50M+
2017 HIGHLIGHTS
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Our Community’s Growing Generosity Having a strong source of permanent community capital ensures our community’s continued vibrancy through uncertain futures and allows us to leverage our endowment for sources of funding beyond grants, such as low-cost loans for nonprofits. $50M
$40M
$30M
$20M
$10M
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In 2017 our community’s generosity reached an all-time high at $9.3 million (M) in gifts and pledges. This philanthropy was further magnified by the estate of Helmut Stern ($16.2M) and the establishment of the Glacier Hills Legacy Fund ($18.3M) by Glacier Hills Senior Living Community and Trinity Health Senior Communities. These $43.8M in total gifts and pledges represent enhanced service to the community, now and forever.
Funds of all types were created by individuals & organizations, from current gifts & realized bequests, to honor & memorialize, and to support specific nonprofits & the entire community. A list of funds is available on our website: aaacf.org.
IN 2017:
$
4.2M+ distributed as
815+ & 171+ grants
scholarships
$
43.8M+ in gifts & pledges, including
30 new funds
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COMMUNITY INVESTMENT PROGRAMS
Community Grantmaking Program
REWARDING SUCCESS
STRENGTHENING THE NONPROFIT SECTOR
ENCOURAGING INNOVATION
Grant Awards for Operating Support
Grant Awards for Capacity Building
Grant Awards for “Bold Ideas”
Grantees demonstrate strength In: • Leadership & Governance • High-Quality, Impactful Programs • Financial Strength
Grantees demonstrate a plan to strengthen: • Leadership & Governance • High-Quality, Impactful Programs • Financial Strength
Grantees demonstrate innovative ideas and projects that generate a significant leap in how our community addresses a challenging community issue
Our Community Impact Funds are permanent, named endowed funds that start at $5,000 and are pooled together to collectively grant $850,000 annually to benefit Washtenaw County, now and forever. To learn more about establishing such a fund, contact Shelley Strickland at sstrickland@aaacf.org or 734.663.0401 x12.
The Glacier Hills Legacy Fund Through the generosity of Ann Arbor’s Glacier Hills Senior Living Community and Trinity Health Senior Communities of Livonia, MI, an $18.3 million fund has been created to benefit senior adults in Washtenaw County—especially those at-risk with low incomes—in perpetuity, managed by AAACF. This fund will direct $650,000 of new money annually toward senior initiatives in Washtenaw County. An additional portion of the Glacier Hills Legacy Fund will also be distributed as immediate funding in 2018 through the Vital Seniors: A Community Innovation Competition, designed to catalyze high-impact innovation and create enduring impact for vulnerable seniors and their caregivers.
Glacier Hills Legacy Fund members and staff
KEY GRANTMAKING INITIATIVES
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Youth Council AAACF’s Youth Council brings together a diverse group of 25 students from Ann Arbor public, private, and independent high schools to make a meaningful difference in our community through philanthropy. These young people determine how to award more than $80,000 in grants annually to support local youth programs, services and projects, and they do so by conducting a community-wide needs assessment every three years.
Coordinated Funding AAACF is proud to be one of the founding partners of Washtenaw Coordinated Funders (Coordinated Funding), an eight-year-old coalition of seven local funders dedicated to ensuring that all County residents, regardless of race or socioeconomic status, reach their full potential. Coordinated Funding has been honored with two national awards and distributes more than $4 million every year to local health and human service agencies.
Cultural Economic Development AAACF is committed to growing our local economy through the Washtenaw County nonprofit arts & culture sector, which annually produces more than $100 million of direct economic activity. Grant funds through Cultural Economic Development (CED) have catalyzed more than 40,000 new audience participants, equating to more than $1.1 million in new local economic impact. AAACF continues to expand the CED program to produce greater economic impact and to empower residents and visitors alike to make arts & culture a more meaningful part of their lives.
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COMMUNITY SCHOLARSHIP PROGRAM
The Community Scholarship Program (CSP) provides multi-year scholarships for local students from lowincome families; students of color; and first-generation college students. Because our goal is not to distribute scholarships but to graduate students, the Community Scholarship Program also provides a “success coach” for the recipients to encourage successful navigation through their educational journeys.
AAACF Inaugural Scholarship Luncheon, June 2017. Sponsored by Dykema.
The program represents wonderful partnerships with Washtenaw Futures and the Washtenaw Intermediate School District, Washtenaw Community College, and Eastern Michigan University, as well as two local family foundations and dozens of donors, especially as we seek to grow this program to meet demand.
The Community Scholarship Program is indeed about partnerships and a new fund created within CSP was celebrated at an Ypsilanti Area Community Fund (YACF) partnerships celebration in Fall 2017.
Mary Williams Gillenwater Scholarship & YACF Gillenwater Legacy Fund The Gillenwater Legacy Fund supports scholarships for students from Ypsilanti Community Schools. Mary Williams Gillenwater had a strong work ethic and helped to provide for her family. In her estate, she also generously provided for others to achieve what she did not have the opportunity to pursue—a college education. Mrs. Gillenwater had powerful role models who influenced her, and she understood the connections between education, encouragement of others, and building a strong community. Under the thoughtful management of Bank of Ann Arbor, the assets of the Gillenwater Trust will be available for the scholarships in perpetuity. To honor Mrs. Gillenwater’s lasting legacy, donors can make tax-deductible contributions to a complementary fund in her name through the Ypsilanti Area Community Fund.
YACF Partnerships Celebration, Fall 2017. Inset: Mary Williams Gillenwater
SUPPORT BY THE COMMUNITY, FOR THE COMMUNITY
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The Level the Playing Field Fund is a significant fund within AAACF’s Community Scholarship Program focused on students with financial need graduating from the Washtenaw County public school system. This fund was launched with a $1M gift from an anonymous donor, including a $250K dollar-for-dollar match so that the program would truly be by the community and for the community. Many donors at all levels responded to the challenge, including several new named funds created under the Level the Playing Field Fund, as well as a conversion of two pre-existing scholarship funds: Karla & Omer Bellfi Scholarship Fund Mary Williams Gillenwater Scholarship & YACF Gillenwater Legacy Fund Reba & Charlie Jackson Scholarship Fund John Martin & Molly Resnik Scholarship Fund Don & Paula Moffat Scholarship Fund NAACP Community Leadership Scholarship Fund Sarah Winans Newman Scholarship Fund Donald & Elaine Olson Memorial Scholarship Fund Emerson & Gwendolyn Powrie Fund Earl & Marie Shaffer Scholarship Fund Justin Tang Memorial Scholarship to “End Fear” Kent & Doris Terwilliger Scholarship Fund Udow-Phillips Scholarship Fund VandenBroek Scholarship Fund Roy & Carol Weber Scholarship Fund
2017 FINANCIAL REPORT
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Total Assets Total Assets December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $134,906,037
(1)
Total Assets December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,430,277
Revenue, Gains, and Support Gifts and Pledges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,494,934
(2)
Net Investment Revenue and Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,843,303 Total Revenues, Gains and Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,338,237
Expenditures Grants and Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4,236,527
Investment Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
454,447
Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1,514,057
Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
6,205,031
(2)
Notes to Financial Information (1) Due to accounting rules, Glacier Hills-related assets were included in the 12/31/16 Total Assets as “assets held for others.” (2) Due to accounting rules, the total reflected in “Gifts and Pledges” and “Grants and Scholarships” do not include activities related to Agency Funds or Special Funds. In 2017, these accounted for an additional $339,835 in gifts and $290,751 in grants.
Investment Returns (Annualized) 1 YEAR
3 YEARS
5 YEARS
AAACF
16.4%
7.0%
8.0%
Benchmark
16.3%
6.6%
7.7%
Accountability We are pleased to make available more detailed information regarding our operations upon request. AAACF’s operations are governed by a volunteer Board of Trustees composed of community members who bring a broad range of professional expertise in guiding AAACF’s work. An independent financial audit, conducted each year, currently by Plante Moran PLLC, was finalized and approved by AAACF’s Board of Trustees at their June 2018 meeting.
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Asset Allocation (at 12/31/17)
Private Equity & Venture Capital (4.9%)
Real Assets (9.4%)
Domestic Equities (28.9%)
Fixed Income (12.6%)
Hedge Funds (17.3%)
International Equities (26.9%)
The Power of Endowment Over time, the power of permanent community capital produces amazing returns. Through diligent stewardship by AAACF, our permanent funds have consistently maintained their inflation-adjusted value over time while granting out well over their original gift values.
THE OSCAR REIMOLD FUND Established in 1980 with a bequest from local businessman Oscar Reimold, this field of interest fund awards grants to support seniors who live in Ann Arbor. Priority is given to programs that address basic needs support for seniors— including food, clothing, shelter, and medical care.
Original Gift: $448,000
$1.4M
Current Fund Value*: $1.4M Total Grants Awarded*: $1.4M $448,000
*As of 12/31/17
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2018 BOARD OF TRUSTEES
(L-R) Front: Bob Laverty, Betsy Petoskey, Cindy Byrne (Cattran), Nancy Margolis, Athul Nair, Ann Davis, Kiana Barfield. Back: Tim Wadhams, Doug Weber, Karen Andrews, Sean Duval. Not pictured: Marie Deveney, Michelle Crumm, Aaron Dworkin, Jeff Hauptman, Linh Song, Michael Staebler.
Tim Wadhams Chair
Karen Andrews
Doug Weber Vice Chair
Michelle Crumm
Cindy Byrne (Cattran) Treasurer
Sean Duval
Marie Deveney Secretary
Kiana Barfield Ann Davis Aaron Dworkin Jeff Hauptman Robert Laverty Nancy Margolis Athul Nair Elizabeth Petoskey Linh Song Michael Staebler
2018 AAACF STAFF
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Neel Hajra, CEO nhajra@aaacf.org Shelley Strickland, VP—Development sstrickland@aaacf.org Katelyn Videto, Donor Services Officer kvideto@aaacf.org Zac Smith, Business Intelligence & Systems Coordinator zsmith@aaacf.org Jillian Rosen, VP—Community Investment jrosen@aaacf.org Chris Lemon, Sr. Community Investment Officer clemon@aaacf.org Maryellen Ferro, Community Investment Officer mferro@aaacf.org Katie Van Dusen, Community Investment Associate kvandusen@aaacf.org Jamie Hunter, CFO & VP—Operations jhunter@aaacf.org Janis Holloway, Staff Accountant jholloway@aaacf.org Diann Moses, Gift & Records Coordinator dmoses@aaacf.org Rachel Huang, Coordinator rhuang@aaacf.org
(L-R) Front: Katie Van Dusen, Dillon Odeh (Rackham Summer Fellow), Jillian Rosen, Connie Dunlap. Middle: Diann Moses, Janis Holloway, Katelyn Videto. Back: Shelley Strickland, Jamie Hunter, Zac Smith, Neel Hajra, Christopher Lemon. Not pictured: Maryellen Ferro, Rachel Huang.
Our renovated library was named in honor of AAACF’s longest-serving volunteer, Connie Dunlap, in memory of Robert Bruce Dunlap. Connie serves as our Archivist, Historian and Librarian (cdunlap@aaacf.org).
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