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kalamazoo community foundation / 2015 annual report


We carefully chose the theme for this annual report,

You also will see Ed Huss, who wants to protect and

The Power of One, not just because 2015 showed

nurture our community gems forever.

us what a difference one person, one gift or one organization can make, but because 2015 showed us what more we can accomplish when we are united as one in purpose, passion and potential.

By serving as the repository of generations of generosity and a catalyst for collective action, your Community Foundation is uniquely suited to harness the power of one. Our ability to work with many

Our community’s problems — like homelessness,

community partners to bring best-selling author and

hunger, illiteracy, poverty and other symptoms of

MacArthur Genius Award winner Ta-Nehisi Coates

failing systems — can overwhelm us. They can even

to Kalamazoo last November to talk about race in

discourage us from taking a single step to remedy

America illustrates this point perfectly.

obvious and avoidable suffering. Have you ever wondered, perhaps even aloud, How much can one person really do? At such times, it’s difficult to see the power of one.

No one foundation or organization or person has the expertise or resources to solve all of our challenges, and it is unwise to pretend otherwise. But it is equally foolish to believe any organization or individual

In this annual report, however, we want to share with

is powerless to act upon what our community

you data we’ve assembled and stories we’ve heard

conscience tells us we must at least confront.

that remind us we are neither alone in our desire nor powerless in our ability to address the hardships and inequities that plague our community. In this report you’ll meet Namita Sharma, who gave

Last year we learned one spark can ignite a fire that provides a powerful light for us all. The evidence has inspired us, and by presenting it to you here, we hope to inspire you too.

her first gift to the Community Foundation in 2015 because she sees the value in leveraging community resources for transformative change. You’ll learn about a remarkable and innovative group of dancers/educators from ABCDance who are narrowing learning gaps for our children.

Carrie Pickett-Erway President/CEO

Si Johnson Chairperson, Board of Trustees

2015


the power of

one 4


One gift. One grant. One legacy. On its own, one can seem powerless. But when one gift, one grant or one legacy is added to another gift, another grant and another legacy — and another after that, and another after that — there is power in one. Because all of those gifts and grants and legacies add up to support one vision: a community transformed. A community where every person can reach full potential. One community, where we all love to live.

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one gift Namita Sharma gave her first gift to the Kalamazoo Community Foundation in 2015, but she knew about us long before that. Passionate about the power of education — she’s served as president of the Arcadia School and Kalamazoo Central High School Parent Associations, on Kalamazoo Public Schools’ strategic planning committee, and on the boards of KC Ready 4s and Communities In Schools Kalamazoo — her first connection to us was our scholarship program. Her awareness of the Community Foundation and community philanthropy in general expanded while serving as vice chair and later chair of the YWCA of Kalamazoo’s board of directors. “All of these connections made me want to be part of the Community Foundation’s work,” she says, citing our ability to leverage community resources to address immediate community needs, and to identify and address their root causes so they are reduced over time. When one asks Namita what else is important to her, she quickly answers: women and children, poverty reduction and economic improvement. “Just like volunteering, giving is a commitment to the community,” she says. “Giving to the Community Foundation covers all of those needs.” “Collectively, even one small gift makes a huge difference,” she reflects. “One of the most important things we can do is to give back.”

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356 2015

227 2014

unrestricted gifts

983/1470 $8,200,000

+57% In 2015, 983 donors gave 1,470 gifts totaling $8.2 million. Of those gifts, 356 — or 24 percent — were unrestricted, a 57 percent increase over the number of unrestricted gifts we received in 2014. 7


scholarships $1 million

agency endowments $4.3 million

donor suggested $4.4 million

responsive $5.7 million

$15,400,000 In 2015, nonprofits received $14.4 million in grants from Advised, Designated, Field-Of-Interest and Unrestricted Funds of the Kalamazoo Community Foundation. In addition, Kalamazoo area students received just over $1 million in scholarships from our Scholarship Funds.

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one grant

Three-year-old Iris was having trouble in school. She often missed important instruction time and only knew the first letter of her name. This all changed when ABCDance, an arts collaborative of Wellspring/Cori Terry & Dancers and Head Start, came to her school. The goal of ABCDance is to help Kalamazoo County Head Start students narrow learning gaps amplified by economic and social inequities. One wouldn’t necessarily expect an arts organization to be in the literacy development business, but one modest grant — $18,000 — from the Community Foundation helped make it happen. “Ninety-five percent of brain development occurs between birth and age five,” says Wellspring/Cori Terry & Dancers’ Francesca Pileci. “We also know motor skill development precedes language development. ABCDance approaches the literacy curriculum, which integrates these developmental stages, through our specialty: movement.” The curriculum covers vocabulary, phonetics, alphabet and comprehension, and focuses on the students as individuals, addressing each one’s cultural, developmental and social needs. Iris and many other children are transforming because of this innovative collaboration. By the end of the fiveweek program, Iris had zero behavior issues and could spell her first and last names. “The results were immediate and promising — and heartwarming,” says Cori Terry. “It’s an epic story.”

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one legacy Ed Huss grew up on East Dutton Street in downtown Kalamazoo. With his boyhood newspaper route consisting solely of downtown businesses, he developed an early awareness of Kalamazoo County’s core. “I’ve been in every building,” he says. “I grew up with a strong focus for the downtown and have never lost it. “Kalamazoo County is a special place with many gems,” says the 65-year-old, who is quick to point out he was born the same year the Kalamazoo Institute of Arts Fair, one of the country’s first outdoor art shows, began. While Ed was always aware of the Community Foundation, he’d never considered the role he could play in our work until recently. “Festivals are important; the Farmer’s Market is important; opportunities like the Can-Do Kitchen are important. They all provide avenues for creativity to occur. Anyone — not just the very wealthy — can support these gems so we don’t lose them,” Ed says. Which is why he decided to establish a fund with us. “Our gems need constant looking after,” he says. “I like knowing that my one legacy, which represents a lifetime of work, will do that forever.”

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$60,300

original gift

$122,600 grants awarded

$127,017 current fund value

actt p m i gif of

We don’t know what the full impact of Ed Huss’ legacy will be, but we do know how others are making Kalamazoo County a community where every person can reach full potential. For example, because of our sound investment strategy, the value of the Harry E. Turbeville Fund — a legacy created with an estate gift of $60,300 in 1990 — has more than doubled to $127,017. In addition, over the last 25 years, almost $122,600 in grants from the fund have supported numerous local nonprofits. In fact, a 2015 grant from this fund is helping kids in programs powered by the YMCA of Kalamazoo to be safe and healthy after school. And, like Ed’s fund, the Harry E. Turbeville Fund is endowed, so its impact will only grow over time. 11


EQUITY

EDUCATION

full POTENTIAL equity

We are committed to removing barriers that keep people from living healthy, positive lives. We are doing this by aligning and leveraging resources that will create long-term, communitytransforming change.

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full potential

When our students achieve more and barriers to opportunity are removed, Kalamazoo County becomes one community where every person can reach full potential.

one vision

Since 1925 we have supported hundreds of nonprofits and thousands of people in neighborhoods, cities, villages and townships throughout Kalamazoo County. They all add up to one community. Our vision is a community where every person can reach full potential. We believe equity and education are the best pathways to make this vision a reality. Why equity and education? Because despite our collective best efforts, we haven’t been able to break our community’s cycles of poverty and illiteracy. There are still too many people who don’t have safe and affordable homes, healthy (or enough) food on their

education

We are committed to helping Kalamazoo area students achieve more. We’re doing this through our scholarship program, and by backing programs and initiatives — like the Learning Network of Greater Kalamazoo — that prepare children for kindergarten and ensure they and their families have the skills and support they need to be successful all the way through school and beyond.

tables and in their cupboards, or the skills or education they need to get a job that pays enough to provide these basic needs. People who have opportunities to access health care and healthy food are more likely to have their health care and nutrition needs met, making Kalamazoo County physically healthier. Healthy people have fewer absences from work and are more productive. People who have the education and skills they need get better work opportunities and better pay. All of this makes Kalamazoo County’s economy stronger. We believe — and research shows — that when people are effectively educated they are: • More likely to find meaningful employment; • Better equipped to support themselves and their families; and • More involved in and give back to their community.

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2015 COMBINED STATEMENT OF FINANCIAL POSITION AND ACTIVITIES

as of december 31

2014

2015

423,263,748 8,057,052 10,776,134 7,018,435

402,602,064 6,711,324 10,285,380 6,710,000

449,115,369

426,308,768

liabilities and net assets Funds held as agency endowments Other payables

24,350,850 5,390,097

24,235,546 5,026,844

total liabilities

29,740,947

29,262,390

total net assets

419,374,422

397,046,378

total liabilities and net assets

449,115,369

426,308,768

revenues Public support Dividends and interest Net gain (loss) from investment transactions Other income (loss)

8,492,335 7,508,554 16,994,630 150,376

5,938,936 8,367,769 (14,063,543) (784,032)

total revenue

33,145,895

(540,870)

16,797,761 539,145 1,974,522 1,255,111 1,920,511

15,937,116 559,467 2,187,626 1,363,482 1,739,483

total expenses

22,487,050

21,787,174

change in net assets

10,658,845

(22,328,044)

419,374,422

397,046,378

assets Cash and investments Contributions and pledges receivable Beneficial interest in charitable perpetual trusts Other assets total assets

expenses Grants paid Investment management fees Program services Donor relations and development Administrative and general expenses

net assets / end of year

The Kalamazoo Community Foundation’s audited financial statements are available online at www.kalfound.org/publications.

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2015 INVESTMENT PERFORMANCE The financial resources available for our community investments come from the income earned on one gift given to the Community Foundation in 1925 and every gift given to us since then. The vision of every donor is realized in each and every community investment we make. We are committed to an investment strategy of disciplined asset allocation, regular rebalancing, minimizing fees and expenses, and not reacting to near-term market pressures or new investment fads. Our endowed funds use a moderate growth strategy in which 70 percent are invested in equities, 25 percent in fixed income vehicles, and five percent in real estate funds. Our non-endowed funds use an income and growth strategy that is 50 percent equities and 50 percent fixed income. In 2015 our annual financial statement audit received an unqualified opinion — the highest opinion given by auditors. In addition, the national Colonial Consulting, LLC and Fiscal & Administrative Officers Group Community Foundation Survey found our seven-year investment return ranked third among all community foundations.

MODERATE GROWTH PERFORMANCE / ENDOWED FUNDS

Actual

11.5% 8.0%

Benchmark

10.3%

7.3%

6.3%

5.5%

1 year

-2.0% -1.6%

3 years

7 years

10 years

INCOME AND GROWTH PERFORMANCE / NON-ENDOWED FUNDS 9.9%

8.6%

9.6%

8.2%

7.0%

6.2%

1.3% 1.2%

1 year

3 years

7 years

10 years

The Moderate Growth Benchmark is a staged index composite benchmark that has the current composition of the Barclays US Aggregate Bond index (15 percent); Citibank WGBI Non-USD (10 percent); DJ US Select REIT index (2.5 percent); MSCI EAFE Small Cap index (10 percent); MSCI Emerging Markets Value index (10 percent); Russell 1000 Value index (5 percent); Russell 2000 Value index (10 percent); Russell Micro Cap index (5 percent); S&P 500 index (30 percent); and the NCREIF Fund Index ODCE (2.5 percent). The Income and Growth Benchmark consists of the S&P 500 index (50 percent) and the Barclays US Aggregate Bond index (50 percent).

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our board Our board of trustees provides guidance for our grantmaking and community leadership. Our trustees represent diverse community interests and donate their time, energy and expertise to help us identify opportunities for long-term community impact, respond appropriately when unforeseen challenges arise and address community needs.

Si Johnson Chairperson

Frank Sardone Vice Chairperson

James Escamilla Trustee

Barbara James Trustee

Amy Upjohn Trustee

Hon. Carolyn Williams Trustee

Dr. Eileen Wilson-Oyelaran Trustee

Carrie Pickett-Erway President/CEO

We are in compliance with National Standards for Community Foundations. National Standards affirms our commitment to excellence and accountability. It provides assurance that we have sound policies and procedures in place for governance, grantmaking and operations. In short, we meet the highest standards for local philanthropy, and we are able to address the unique needs of Kalamazoo County.

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our team Our staff works closely with donors, grantees and others to help people in Kalamazoo County reach full potential. It includes skilled professionals in community investment, donor relations and development, finance, administration, human resources and marketing communications.

Candice Atwater Community Investment

Sandy Barry-Loken Community Investment

Zac Bauer Donor Relations

Kari Benjamin Community Investment

Sue Bos

Shannon Bronsink Marketing Communications

Kelly Campbell Finance and Administration

Stephanie Carrier Finance and Administration

Coby Chalmers Donor Relations

Joanna Donnelly Dales Donor Relations

Jill Dykehouse Donor Relations

David Feaster Community Investment

Ann Fergemann Donor Relations

Melissa Fish

Joni Frick Finance and Administration

Jeanne Grubb Donor Relations

Selena Jepkema Finance and Administration

Sholanna Lewis Community Investment

Katie Paauwe Donor Relations

Elena Mireles-Hill Community Investment

Valerie Mitchell Donor Relations

Brittany Morton Scholarship

Karen Racette Finance and Administration

Amy Slancik

Susan Springgate Finance and Administration

Suprotik Stotz-Ghosh Community Investment

Nancy Timmons Scholarship

Tom Vance Marketing Communications

Jared Volz

Sakhi Vyas

Debbie Wood Finance and Administration

The Learning Network of Greater Kalamazoo

The Learning Network of Greater Kalamazoo

The Learning Network of Greater Kalamazoo

Leadership and Performance Excellence

The Learning Network of Greater Kalamazoo

connect with us Contact information for our team can be found online at www.kalfound.org/ourteam.

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be part of our work

There are many things to love about Kalamazoo County. There are many reasons to love living here. But the truth is, our community still has needs. We believe, by working together, we can make Kalamazoo County one community where every person can reach full potential — a place where we all love to live. Giving to the Community Foundation is a powerful, lasting way for you to be part of our work. Your gifts to our Love Where You Live Fund, which addresses the community’s greatest needs, become part of a permanent endowment, which means they benefit Kalamazoo County forever. If you’re interested in a special area of need, you can give to one of our focused Love Where You Live Funds: • Love Where You Live Fund (greatest needs) • Economic and Community Development Fund • Education and Learning Fund • Environment Fund • Health Fund • Housing Fund

how to give Give online at www.kalfound.org/give. Use the enclosed envelope. 18

• Individuals and Families Fund • Youth Development Fund • Partners in Education Scholarship Fund You can learn more about these funds at www.kalfound.org/lovelivefunds.


OUR MISSION To make life better for all through leadership and stewardship of resources that last forever.

OUR VISION A community where every person can reach full potential.

OUR PRIORITIES Equity Education

ANNUAL REPORT TEAM PROJECT MANAGER Joanna Donnelly Dales ART DIRECTOR / DESIGNER Shannon Bronsink WRITERS Tom Vance Shannon Bronsink COPY EDITOR Jan Andersen PHOTOGRAPHER Robert Neumann PRINTER RiverRun Press


Nonprofit Organization U.S. Postage paid Kalamazoo, MI Permit Number 66

402 East Michigan Avenue Kalamazoo, MI 49007-3888 269.381.4416 www.kalfound.org

The Power of One  
The Power of One  

The Kalamazoo Community Foundation's 2015 Annual Report.