2023 - 2024
Annual Report
In 1963, residents established the foundation as a permanent source of community capital in Washtenaw County. Think of us as a savings account for the community, with proceeds from our funds distributed to support nonprofits through grants and students through 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 our staff, trustees, and hundreds of volunteers, AAACF connects people, charitable causes, and permanent capital for community impact.
Our Mission Our Purpose
The Ann Arbor Area Community Foundation enriches the quality of life in our region through its knowledgeable leadership, engaged grant making, and creative partnerships with donors to make philanthropic investments and build endowment.
Our Values
Our Services
Meeting Charitable Goals
We work with donors and their professional advisors to help them meet their charitable goals. The combination of donors’ resources and philanthropic intentions with our financial expertise creates meaningful, lasting impact in our community.
Building Healthy Endowments
Our Board of Trustees, Finance & Investment Committee, and professional investment consultants work to protect our endowed funds to ensure their long-term growth, stability and permanence.
Leading Positive Change
Using hard work, research, and an array of community partnerships, we craft grant & scholarship programs and local investments that maximize the positive impact of our community’s resources.
Growth (Funds)
Our Building Blocks Growth of Funds
Do These Funds Do?
Single area of impact: Human Services, Arts, Seniors, others
Support local non-profits: Food Gatherers, Dawn Farm, Art Ctr, etc.
Unrestricted gifts with grants allocated annually by staff and board
Up-front tax deduction and ability to recommend grants
Support Community Scholars Program (among others)
Endowed gifts that support AAACF operations
Non-endowed gifts, operating fund, misc. funds
Growth Funds GRANTS and Assets Have Nearly TRIPLED
Grants and Scholarships
Assets
Impact Investing
Financial and Social Investing
Not the Traditional Grants
For 60 years the Ann Arbor Area Community Foundation has been providing financial assistance to individuals and non-profits through scholarships and grants. In 2019, a new program was introduced that added to the Foundation’s reach and sharpen its focus.
What is Impact Investing at the Ann Arbor Area Community Foundation?
• Impact Investing refers to the practice of investing in community projects that are intended to generate a financial return as well as a tangible social or community benefit.
• To be successful, the program has an active involvement and working knowledge of local Real Estate, Finance, Housing, Childcare, Small Business and Public Policy. Involvement in all areas is important to fully appreciate strong projects for the most financial investment and social impact.
• Unlike grants, investments are intended to be repaid to the foundation and can be “recycled” back into the community through additional investments.
• The social/community benefit is measured on a project-by-project basis. As we work with our partners, we develop 3-5 social impacts.
• Siller Terrace is an investment with the Ann Arbor Housing Commission (AAHC).
• Impact Investing provided $1.5 million in gap assistance for AAHC to purchase 17 market rate rental units into their portfolio.
• One of the three community benefits we are tracking is the transfer of the units from cash rentals to voucher rentals.
• We meet quarterly with the AAHC to collect data on the social impact.
Impact Investing and Affordable Housing
• The affordable housing crisis has continued to impact Washtenaw County. For top employers looking to locate to the area, affordable housing and attainable homeownership are important infrastructure. Regulations, ordinances, and community involvement vary in the county. It is important for the Community Foundation works to understand each community and what housing projects are needed and will be successful in each community.
• Impact investing is a tool the foundation utilizes to provide non-profit and for-profit developers funding for projects. With a focus on racial equity in our county, the foundation is sensitive to groups who have historically struggled to gaining funding from traditional sources.
• Often housing projects have a large overall cost and need gap financing. real estate development requires land and/or money. Creating a capital stack for an affordable housing project can be complex with many funding sources such as federal funds, state funds, local TIF funds, a senior lender, and in some cases, gap or mezzanine funders.
• Once the capital stack is established, funding can continue to change if the project is delayed, construction costs rise and/or the project design is changed. All these items make the development of affordable/attainable housing challenging. Ann Arbor Area Community Foundation is a constant resource for developers throughout their entitlement and financing process.
Financial Support and Impact
• The project, Dorsey Estates, has received critical funding from Washtenaw County, the Washtenaw County Brownfield Redevelopment Authority (BRA), EGLE, MSHDA, the Ann Arbor Area Community Foundation, and IFF.
• Support from the Ann Arbor Area Community Foundation was instrumental in securing a non-collateralized tax increment financing loan or single-family housing, along with a construction loan from IFF.
• The project is nearing the finalization of an additional $900,000 in Down Payment Assistance from Washtenaw County.
Where We Are And Where We Are Going
Currently, the foundation has invested in three housing projects 46 homeownership properties
• 17 rental units
• 60 proposed rental units under review for entitlements
• AAACF continues to assist developers from the initial development of the project through construction.
Economic Development and Community Partnership
• Dorsey Estates contributes to local economic development by fostering homeownership opportunities, which in turn strengthen community stability and growth.
• Sales and outreach are being coordinated with a broad range of partners, including regional and national lending institutions, the City of Ypsilanti, the Ann Arbor Housing Commission, Community Housing Network, and other local organizations.
• The development team has worked closely with Washtenaw County and the City of Ypsilanti to host ongoing home buyer workshops, ensuring potential buyers are well-prepared and informed.
• The entire project is on track for final completion by the end of 2025, marking a significant milestone in Ypsilanti’s housing landscape.
Childcare Crisis
Why Childcare?
• AAACF has always played a part in the funding of educational resources for children through scholarships and Youth Council. Through impact investing we are now involved in early child education.
• Proper childcare is as important an infrastructure to a strong community as are schools and city services. Currently, 1 in 7 families in our county are not able to obtain the childcare they need.
• AAACF recently took part in the Washtenaw/Livingston County Childcare Consortium led by SPARK. The report noted that to help childcare providers succeed, policy changes and capital to help expand services and professional development were crucial. Impact investing can help.
Apple Playschools of Ann Arbor
Childcare expansion
• Apple Playschools of Ann Arbor, had an opportunity to expand one of their locations. After being told ‘no’ by banks, they came to us looking for capital assistance with an expansion for 45 additional childcare positions and staff development.
• Impact Investing was able to make a $600,000 investment loan with a 6% interest rate and a $50,000 development grant to help Apple with their expansion, staffing needs and payoff past debt to secure the financial stability of the organization moving forward.
• In addition, the foundation was able to assist Apple Playschools staff navigate the City’s approval and permitting process.
Partners for Success
More Partners – More Impact
Impact Investing and 60 years of diverse experience in the Washtenaw County community provides the flexibility to invest in creative projects with multiple community partners generating new ways to address the housing and childcare crisis in Washtenaw County.
Overall, our Impact Investing program has already distributed $4.8 million in funds and is looking forward to being a community partner with many of you in the future growth of Washtenaw County.
In addition to financial assistance Impact Investing enables continued awareness of policy changes needed to create systemic change in our community.
Impact Investing Pipeline
As of September 2024
Impact Investing Timeline
By the Numbers (Assets
& Investments)
By the Numbers
Growth Has Been Driven By Generous Donations and Strong Returns
Portfolios with Higher Private Equity Allocations Have Outperformed
June 30, 2023 | Median Performance Differential based on Equal-Weighted Allocations to Privates
Sean Duval Chair
Arsalan Alavi
Tabitha Bentley
Chris Bergen
Bill Brinkerhoff
Michael Crowley
Board of Trustees
Karen Andrews Vice Chair
Karla Olson-Bellfi Secretary
Tim Damschroder
Dilip Das
Cathi Duchon
Aaron Dworkin
Ken Fischer
Sonya Jacobs
Laura Hayden Treasurer
Christina Kim
Sri Maddipati
Jeff Patton
Audrey Price DiMarzo
Chuck Warpehoski
The Ann Arbor Area Community Foundation welcomes you to join us as we cultivate community throughout Washtenaw County, growing stronger together.
Our Staff
Shannon Polk, D.Min, J.D. President & CEO
Jamie Hunter CFO & Vice President for Operations
Karen Shellie Philanthropic Advisor
Maryellen Ferro Community Investment Officer
Nathan Smith Grants Manger
Michael Zapalski Administrative Assistant
Christopher Lemon Vice President of Community Investment
Dorcas Patterson Director of Human Relations/Operations
Patrick Naswell Philanthropic Advisor
Frances Todoro-Hargreaves Impact Investing Manager
Zachary Smith Director of Systems and Data
Janis Holloway Controller
Brandy Merritt Communications Director
Amina Iqbal Senior Community Investment Officer
Domonique Palmer Community Scholarship College Success Coach
Shelley Catalan Executive Assistant
Lisa Hanselman Accountant
WAYS TO
EngageGIVE +
Come to AAACF’s Community Meeting. These gatherings are open to the public and draw hundreds of civic-minded people to convene and learn about Washtenaw County.
Attend a workshop on philanthropy. We hold periodic sessions on topics such as changes in tax laws or giving as a family.
Seek our knowledge about the community. Ask about ways we can assist donors, family foundations, or organizations looking to maximize impact.
Magnify your individual impact.
AAACF offers two “pooled” giving opportunities that are permanent and can magnify your giving exponentially. You can create:
• A permanent, named fund starting at $5,000 as part of our collective Community Impact Fund making competitive grants in the community.
• A permanent, named fund starting at $20,000 under the Community Scholarship Program, which provides local students with multi-year scholarships and a dedicated “college success coach” to promote degree attainment. Arrange for a no-obligation conversation. As a resource for local philanthropy, we welcome the opportunity to provide information. If AAACF is not the best option for your goals, we can help identify another option.
ESTABLISH A FUND — NOW OR IN THE FUTURE
You can start a fund now (and add to with an estate gift)—or plan to give in the future through your will, trust, and retirement account beneficiary plans. We customize options to accomplish your goals. A popular example is one gift agreement that names several nonprofits as beneficiaries. Through the Stern Legacy Challenge, in exchange for simply documenting your planned gift intentions, you can name a fund that helps the community now!
PERMANENT ENDOWMENTS TO NAME
Grantmaking funds: AAACF determines grantees broadly or for a specific sector in Washtenaw County.
Nonprofit endowment funds: Individuals can set up funds that distribute annually to an organization. Consider “annuitizing your giving” now or through your estate plan so an annual check is sent to your beloved nonprofit forever!
Community Scholarship Program funds:
Name a fund within the CSP umbrella to help support local students to increase college access and graduation rates across Washtenaw County.
OTHER WAYS TO GIVE
AAACF offers donor-advised funds, which can be permanent or expendable. You can also contribute to one or more of AAACF’s existing 600+ charitable funds.