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love where you live kalamazoo

kalam azo o co m m uni ty foundat ion 2 016 annual report


kalamazoo, our community, isn’t just a place. it’s people. it’s the people on these pages, connected by geography and to each other. it’s people who love where they live. we want you to see yourself in this community. because you love this community. you are this community. you are kalamazoo.


lov e w he re yo u l i v e kal am azo o

Each year, the development of our Annual Report

In response to the deadly bicycle crash, more than

provides us with the opportunity to reflect on the past

500 cyclists came together for a Ride of Silence to

year and highlight accomplishments and activities

honor the victims. The Kalamazoo City Commission

central to our mission, vision and priorities.

unanimously passed new ordinances to increase the

This year, we cannot look back without acknowledging the very real ways our community suffered in 2016. Last year, the entire nation focused on Kalamazoo for reasons we wish weren’t so. In February, shootings

safety of cyclists. Again, two powerful examples of collective community response. We are proud of how this community responded to these tragedies, proving itself a role model for others.

devastated eight families, leaving our entire region

While 2016 was a year of challenges, it also was one

shaken. Then just a few months later, in June, all eyes

of opportunity. Eyes turned toward Kalamazoo once

focused on Kalamazoo again as a motorist struck nine

again when individuals gave an unprecedented gift to

bicyclists, leaving five dead and four critically injured.

the city to alleviate financial strains and stimulate urban

Both events raised issues related to mental health, substance abuse and violence. And both events enabled Kalamazoo to demonstrate the unique, profound strength of a community that unites in the face of adversity. Both long-term and first-time donors stepped forward to support those affected by the February shootings by giving to the Help Now! Fund, a partnership of the Kalamazoo Community Foundation, Battle Creek Community Foundation, and United Way of the Battle Creek and Kalamazoo Region. Distributions from the fund have provided direct support to the individuals

development. This is just one example of community members working together to create change. We also see this happen nearly every day in the work of our nonprofit partners. This report, I AM KALAMAZOO, was inspired by the many powerful ways individuals in this community come together, time and again, to show their love for one another and for where we live. So please read on. Discover how we find opportunities in challenges. See how we lift one another up to reach our vision of a community where every person can reach full potential. Love where you live.

and families involved, and strengthened mental health resources and interventions provided by nonprofits in both Kalamazoo and Battle Creek. We were honored to join with these partners and many more.

ca r r ie picke t t-e rway president/ceo

si jo hn so n

chairperson, b oa rd o f tru s te e s


m eg bl in kiewic z

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ky d ne two rk is kalamazoo

Out-of-school time. It’s not a household phrase

“OST programs help kids do better at their job:

— yet — but making the most of this critical time

going to school. Our quality ratings have increased

for kids is the mission of Kalamazoo Youth Development

and youth are gaining important social-emotional

Network, known as KYD Network.

learning skills. We’ve always known what we do matters and now we have the data to better tell

A program of United Way of the Battle Creek and

our important story.”

Kalamazoo Region, KYD Network has been around for 15 years, with your Community Foundation

In addition to providing effective programming

providing numerous grants over the years to

to Kalamazoo-area kids, KYD Network plays a

support its innovative work.

leadership role in building the collective capacity of the youth-focused organizations that comprise

“Research demonstrates the positive impact of

Kalamazoo County’s OST sector.

high-quality programs offered during out-of-school time, which encompasses after-school and summer

According to Blinkiewicz, over the last few years

programming,” says KYD Network Director Meg

the number of local organizations partnering with

Blinkiewicz, Ph.D. Activities that at one time only

KYD Network to serve area children with high-quality

happened during the school year have been

programs has grown from 12 to 30. KYD Network

replaced with a year-round approach.

provides the organizations with training, coaching and technical assistance to ensure Kalamazoo County

Research shows when low-income students don’t

youth are ready for post-secondary education or

participate in OST programming, by fifth grade there’s

training — and ready to contribute to the community

already an achievement gap in math between them

in positive ways.

and their higher-income peers. When their OST participation is high and consistent, that’s not the case.

Says Blinkiewicz, “Over the last three to four years we’ve undergone a renaissance, growing the sector

Says Blinkiewicz, “Time spent in OST activities

through collaboration and working on inclusion and

means kids are more likely to engage in school

equity to get to impact.”

and graduate.

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c hri sto p he r te r ko s is kalamazoo

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c h ristoph er terkos

“I had a difficult upbringing regarding

While Terkos supports the Community

my sexual orientation,” says Christopher

Foundation’s LGBT Equality Fund

Terkos. “There was zero support and

— one of only a few charitable funds

I knew being out would mean

in the State of Michigan dedicated

being disowned by my family.”

solely to promoting equality for LGBTQ

This is just one reason why Terkos, a branch manager for PNC Bank who serves on the board of OutFront

people — he’s also a champion for the Community Foundation’s unrestricted Love Where You Live Fund.

its 2015 Giving Tuesday event at Bell’s.” Now, Terkos says, because he and KZCF share the same goal for the community — that it will be one where every person can reach full potential — he’s set up an automatic monthly gift. “I know my dollars are supporting the community’s greatest needs now and going for long-

Kalamazoo, likes how the Community

He finds it appealing that the Love

term good,” he says. “I encourage other

Foundation is supporting lesbian,

Where You Live Fund brings people

people to do it so their gifts can do the

gay, bisexual, transgender, queer and

together, pooling resources to make

most good too.

questioning youth.

giving accessible and maximize impact.

“I grew up in a rural community,

“The Community Foundation was more

KZCF’s work and partnerships with

without resources, so I know how

accessible than I first realized,” he says.

donors and nonprofits. It sets us apart

valuable those resources are,” he says.

“In fact, I ended up giving my first gift to

from other communities,” he adds.

“They can be lifesaving.”

the Love Where You Live Fund by text at

“Love where you live says it all.”

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“The whole community benefits from


m ayor bobby h opewel l

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he lp now ! is kalamazoo

The violence that occurred in Kalamazoo County on

Battle Creek Community Foundation, United Way of the

Feb. 20, 2016, was shocking. One man, for unknown

Battle Creek and Kalamazoo Region, and Kalamazoo

reasons, went on a shooting spree, killing six people

Community Foundation — was created.

and critically wounding two more within the span of

In the days and weeks that followed, the fund provided

just a few hours.

direct support to those involved and their families,

In the immediate aftermath, Kalamazoo Mayor

along with funding to nonprofits providing direct

Bobby Hopewell said, “We have always stepped up

support services to those involved, and funds for

when challenged, and we will stand together in this

agencies working on long-term solutions to

sad time. We cannot be fearful, but must instead unite

community violence.

and show the love and compassion that defines us

Local and national headlines echoed how we took

as a community.”

care of our neighbors: Nonprofits move swiftly to

So we did. Even as we grieved, we responded.

help, Hundreds helping victims and We are stronger

As a community, we responded with rallying cries

together. One news story highlighted the greater

of We are Kalamazoo and Kalamazoo Strong.

Kalamazoo community’s uncanny knack for resilience.

We — individuals from all walks of life, churches,

A year later, Mayor Hopewell remains resolute on

nonprofits, businesses, government leaders, law

the power of this collaborative community response.

enforcement agencies — responded with collective

“In the end, this incident did not define us,” he says.

efforts to support the people affected. Within 24

“We are stronger.”

hours, the Help Now! Fund — a collaboration of the

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o ur ap pr oac h to co m m uni ty p hi lanthro py is kalamazoo

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r em ov ing bar riers a nd a ddressing the needs a nd c hallenges of ou r community’s most ma rgina l ized peo ple w ill help kalam azoo county be a better community overa ll.

The Kalamazoo Community Foundation’s vision is a

development, education) can work toward reducing

community where every person can reach full potential.

disparities and use an equity lens.

As we see it, that community is one in which all kids

When educational and career advancement for adults

start school ready to learn, are supported throughout

is supported and achieved, the effects of generational

their academic career and are prepared for life after high

poverty are minimized, which helps neighborhoods

school. It’s one in which all adults have the skills they need

and households become more stable. In turn, stable

to live their best life and are able to support themselves

neighborhoods and households improve educational

and those who depend on them. It’s one in which every

outcomes for children. For this reason, our highest

person feels safe in every neighborhood. It’s one in which

investments will be in programs that improve education-

identities and attributes aren’t predictors of one’s ability to

related outcomes and advance equity.

live a high quality, self-determined life.

look in g a he a d

We’ve come to a fundamental understanding that

There will always be a need for programs and services

achieving this vision depends on recognizing who in

that help individuals meet their immediate basic needs.

our community is not able to reach their full potential

While we’ll always support organizations that provide

and why. As a community, we must address the causes

these services, we believe the community investments

of inequities by changing discriminatory laws, policies

we make in long-term efforts to address the causes of

and procedures. We must build programs that correct

challenges and change systems will positively affect

imbalances, expand opportunities and improve access

community conditions, reducing the necessity for

to resources for marginalized community members.

immediate-needs services and programs.

We must ensure all people can live authentically,

Therefore, when community conditions indicate and

embracing and celebrating their identities and cultures.

data supports that it’s appropriate, we’ll direct even more

Removing barriers and addressing the needs and

of our resources toward efforts that identify the causes

challenges of our community’s most marginalized

of challenges and create change at the system level.

people will help Kalamazoo County be a better

Creating such change will make impact significant

community overall.

and sustainable.

equity w ith an emphasi s o n ed uc at ion

This is a pivotal moment for our community. Engaging in this work at this time will disrupt cycles

Despite our community’s collective best efforts, we haven’t

of poverty and illiteracy. Engaging in this work will

been able to break its cycles of poverty and low academic

make our vision — a community where every person

achievement or attainment for marginalized individuals.

can reach full potential — a reality. In that reality,

We focus on equity and education because any program

every person who calls this place home has the skills

that impacts education-related outcomes and uses an

and opportunities they need to live a high-quality,

equity lens can lead to sustained individual and

self-determined life. In that reality, this community

community prosperity. Organizations from all sectors

— Kalamazoo County — is one where we all love

(e.g. social service, health care, the arts, economic

to live.

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co mb in e d s tat emen t o f fi nanc i al p o si ti o n and ac ti vit ies

as of december 31

2015

2016

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

430,615,336 24,447,155 10,392,113 6,530,041

$ 426,308,768

$ 471,984,645

24,235,546 5,026,844

25,707,631 4,665,894

total liabilities

$ 29,262,390

$ 30,373,525

total net assets

$ 397,046,378

$ 441,611,120

total liabilities and net assets

$ 426,308,768

$ 471,984,645

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

23,455,974 8,224,043 32,844,930 (82,745)

$ (540,870)

$ 64,442,202

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

14,219,690 509,558 2,096,755 1,216,138 1,835,319

$ 21,787,174

$ 19,877,460

change in net assets

$ (22,328,044)

$ 44,564,742

net assets / end of year

$ 397,046,378

$ 441,611,120

assets cash and investments contributions and pledges receivable beneficial interest in charitable perpetual trusts other assets total assets liabilities and net assets funds held as agency endowments other payables

revenues public support dividends and interest net gain (loss) from investment transactions other income (loss) total revenue

expenses grants paid investment management fees program services donor relations and development administrative and general expenses total expenses

t he k a la m a zo o co m mu n i t y fou ndat i on’s audi t e d f i nanci al stat e m e n t s a re ava ila b l e on l i n e at k al fou nd.or g / p u b l i cat i on s.

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in v e stm e nt p e r fo r m anc e

According to a recent nationwide survey of community foundations by Colonial Consulting in New York City, your Kalamazoo Community Foundation’s investment performance ranked in the top one percent for the 10-year period ending Dec. 31, 2016. This is a result of our expertise, experience and commitment 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.

M ODE RAT E GR OWTH P E R FO R M AN C E / E N D OW E D F U N D S 2016 actual

12.3% 11.0%

1 year

5.4% 5.2%

3 years

2016 benchmark

10.3% 9.4%

9.5% 8.9%

5 years

7 years

6.1% 5.2%

10 years

I N COM E A N D GR OWTH P E R FO R M AN C E / N O N - E N D OWE D F U N D S 2016 actual

7.5% 7.4%

1 year

2016 benchmark

6.3% 6.1%

8.8% 8.4%

8.8% 8.4%

3 years

5 years

7 years

6.9% 6.0%

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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o u r board and staff 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 impact, respond appropriately when unforeseen challenges arise and address community needs. Our staff works closely with donors, grantees and others to help make Kalamazoo County a community where every person can reach full potential. It includes skilled professionals in grantmaking, donor relations, development, finance, administration, human resources and marketing communications.

jim escamilla board of trustees

mary harper board of trustees

barbara james board of trustees

si johnson chairperson board of trustees

frank sardone vice chairperson board of trustees

amy upjohn board of trustees

hon. carolyn williams board of trustees

carrie pickett-erway leadership and governance

candice atwater community investment

sandy barry-loken community investment

sue bos finance and administration

meredith bradford scholarship

raven britt donor relations

shannon bronsink marketing communications

sharon brown leadership and governance

kelly campbell finance and administration

stephanie carrier finance and administration

coby chalmers donor relations

joanna donnelly dales donor relations

david feaster community investment

ann fergemann donor relations

joni frick finance and administration

laura galaviz finance and administration

kari benjamin hamann community investment

selena jepkema finance and administration

kelley kellis human resources and facilities

cyekeia lee lanna lewis the learning community network of investment greater kalamazoo

julie loncharte donor relations

elena mireles-hill community investment

valerie mitchell donor relations

adrienne neubert donor relations

susan springgate finance and administration

tom vance marketing communications

jared volz the learning network of greater kalamazoo

katie paauwe karen racette the learning finance and network of administration greater kalamazoo

nancy timmons scholarship

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b e part o f o ur wo rk there are many ways

gi v e

In addition to our grantmaking to nonprofit organizations, we provide Kalamazoo-area students

In 2016, donors gave the Community Foundation

with scholarships for higher education. The scholarships

gifts totaling $23 million, ranging in size from $8 to

are used at two- or four-year colleges and universities,

$8 million. Donors also created 23 new funds, bringing

trade and technical schools, and for professional

the total number of funds held here to 864.

development opportunities. In 2016, Kalamazoo-

Giving to the Community Foundation is a powerful,

area students received 334 scholarships totaling

lasting way for you to be part of the community and

$1.1 million to continue their education. Learn more

our work. Your gifts to our Love Where You Live Fund,

at kalfound.org/scholarships.

which addresses the community’s greatest needs,

co n n ect

become part of a permanent endowment, which

When the Arcus Foundation gifted us our building

means they benefit Kalamazoo County forever.

in 2014, we all agreed it should be a space designed

If you’re interested in a special area of need, you can

to inspire collaboration and welcome the community.

give to one of our focused Love Where You Live Funds:

In 2016, meeting spaces at the Community Foundation

• Love Where You Live Fund (greatest needs)

were used on 106 separate occasions by 1,865 people

• Economic and Community Development Fund

from 52 unique organizations, at no cost to them.

• Education and Learning Fund

Learn more at kalfound.org/useourspace.

• Environment Fund

In addition to being part of our physical community,

• Health Fund

we’re part of virtual, social media communities.

• Housing Fund

We use our social media to share information about

• Individuals and Families Fund

our work and connect with you. In 2016, 1,165

• Youth Development Fund

new people joined our social media communities.

• Partners in Education Scholarship Fund

Connect with us on Facebook, Twitter, LinkedIn,

rec e i v e

Instagram, Pinterest and Vimeo.

We make community investments in quality programs we believe will make Kalamazoo County a place where

how to g i v e

every person can reach full potential. In 2016, nonprofits in our community and beyond received grants and

giv e o n l in e at k al fo u n d.o r g /g i ve

distributions totaling $13.1 million from Advised,

u se t he en clo sed en v e lo p e

Designated, Field-of-Interest and Unrestricted Funds.

t ex t G IVE to 2 6 9. 35 9. 3 3 76

Learn more at kalfound.org/grants.

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nonprofit organization u.s. postage paid kalamazoo, mi permit number 66

402 east michigan avenue kalamazoo, mi 49007-3888 269.381.4416

kalfound.org

I AM Kalamazoo  
I AM Kalamazoo  

The Kalamazoo Community Foundation's 2016 Annual Report