When you place your gifts in our care, we know that you count on the Community Foundation to operate efficiently and invest wisely. An active Board of Trustees oversees the financial assets of the Community Foundation, and works with our Finance & Investment Committee and independent investment consultants to exercise high standards of management and fiscal stewardship.
We are pleased to report that our assets are continuing to recover from the U.S. and global economic upheaval that began in late 2007. Our assets showed an 11% increase from December 2009 to December 2010, bringing our total assets to $67,492,253.
We continue to work closely with our investment advisors, monitoring the markets and keeping in mind the Community Foundation’s long-term goals for investment performance. Our portfolio is highly diversified, and our asset allocation reflects the wisdom of an investment community-foundation.committee and advisors with many years of financial experience. In 2010, for example, the assets managed by the Community Foundation achieved a total return of 13.2% community-foundation.compared to the 11.2% benchmark established by the Finance & Investment Committee.
In the 2008 and 2009 annual reports we highlighted a fund which illustrated the power of endowment and the prudence of our spending policy. At right, you will find updated graphs for this same fund.
Graph A shows the fund balance over time. In 2008 the fund balance was feeling the full impact of the global economic decline. Only one year later, however, the fund balance had already begun to rebound. This graph clearly demonstrates why it is so crucial for the Community Foundation to stay in the market – even in tough times.
Graph B shows the grants made from this fund. You’ll note that grants were down in both 2009 and 2010. This decrease in available grant dollars is a result of the economic decline period becommunity-foundation.coming part of our spending policy calculation which uses an average of the fund balance over the previous 12 quarters. Notice how the percentage of decline in grant funds is much less dramatic than the decrease in the fund balance.
Undoubtedly, the most important part of the story is that this fund has granted $72,393 over the last 15 years. Thanks to the power of endowment, it is on track to keep doing that – forever.
Original Gift Amount 1996: $90,000
Total Grants 1996-2011: $72,393
Fund Balance December 2010: $105,669