kalamazoo community foundation / 2015 annual report

We carefully chose the theme for this annual report,

The Power of One, not just because 2015 showed

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.

Our community’s problems — like homelessness,

hunger, illiteracy, poverty and other symptoms of

failing systems — can overwhelm us. They can even

discourage us from taking a single step to remedy

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.

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

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

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

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.

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

nurture our community gems forever.

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

community partners to bring best-selling author and

MacArthur Genius Award winner Ta-Nehisi Coates

to Kalamazoo last November to talk about race in

America illustrates this point perfectly.

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

is powerless to act upon what our community

conscience tells us we must at least confront.

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.

Carrie Pickett-Erway President/CEO

Si Johnson Chairperson, Board of Trustees

2015

onethe power of

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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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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.”

one gift

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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.

983/1470$8,200,000

+57%

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unrestricted gifts

356 2015

227 2014

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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.

$15,400,000

agency endowments $4.3 million

donor suggested $4.4 million

responsive $5.7 million

scholarships $1 million

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 five-

week 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.”

one grant

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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.”

one legacy

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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.

impactof gift$127,017

currentfund value

$122,600grants

awarded

$60,300original gift

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

EQUITYEDUCATION

full POTENTIAL

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, community-transforming change.

equity

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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

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.

one vision

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

full potential

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.

education

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2015 COMBINED STATEMENT OF FINANCIAL POSITION AND ACTIVITIES

as of december 31

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

total liabilities

total net assets

total liabilities and net assets

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

change in net assets

net assets / end of year

2014

423,263,748

8,057,052 10,776,134 7,018,435

449,115,369

24,350,850

5,390,097

29,740,947

419,374,422

449,115,369

8,492,335 7,508,554

16,994,630 150,376

33,145,895

16,797,761

539,145 1,974,522 1,255,111 1,920,511

22,487,050

10,658,845

419,374,422

2015

402,602,064

6,711,324 10,285,380 6,710,000

426,308,768

24,235,546 5,026,844

29,262,390

397,046,378

426,308,768

5,938,936 8,367,769

(14,063,543) (784,032)

(540,870)

15,937,116

559,467 2,187,626 1,363,482 1,739,483

21,787,174

(22,328,044)

397,046,378

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

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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.

2015 INVESTMENT PERFORMANCE

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MODERATE GROWTH PERFORMANCE / ENDOWED FUNDS

5.5%6.3%

10.3%11.5%

7.3%8.0%

-2.0% -1.6%

1 year

3 years 7 years 10 years

INCOME AND GROWTH PERFORMANCE / NON-ENDOWED FUNDS

6.2%7.0%

9.6%9.9%8.2%8.6%

1.3% 1.2%

3 years 7 years 10 years1 year

Actual Benchmark

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).

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.

our board

Dr. Eileen Wilson-OyelaranTrustee

Hon. Carolyn WilliamsTrustee

Barbara JamesTrustee

Si JohnsonChairperson

James EscamillaTrustee

Frank SardoneVice Chairperson

Amy UpjohnTrustee

Carrie Pickett-ErwayPresident/CEO

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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.

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.

Amy SlancikThe Learning Network of Greater Kalamazoo

our team

Ann FergemannDonor Relations

Brittany MortonScholarship

Candice AtwaterCommunity Investment

Coby ChalmersDonor Relations

Stephanie CarrierFinance and Administration

David FeasterCommunity Investment

Debbie WoodFinance and Administration

Elena Mireles-HillCommunity Investment

Jared VolzThe Learning Network of Greater Kalamazoo

Jeanne GrubbDonor Relations

Jill DykehouseDonor Relations

Sue BosLeadership and Performance Excellence

Karen RacetteFinance and Administration

Kari BenjaminCommunity Investment

Katie PaauweDonor Relations

Kelly CampbellFinance and Administration

Melissa FishThe Learning Network of Greater Kalamazoo

Joni FrickFinance and Administration

Nancy TimmonsScholarship

Sandy Barry-LokenCommunity Investment

Selena JepkemaFinance and Administration

Shannon BronsinkMarketing Communications

Valerie MitchellDonor Relations

Zac BauerDonor Relations

Tom VanceMarketing Communications

Suprotik Stotz-GhoshCommunity Investment

Sholanna LewisCommunity Investment

Susan SpringgateFinance and Administration

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

connect with us

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Sakhi VyasThe Learning Network of Greater Kalamazoo

Joanna Donnelly DalesDonor Relations

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

• Individuals and Families Fund

• Youth Development Fund

• Partners in Education Scholarship Fund

You can learn more about these funds at

www.kalfound.org/lovelivefunds.

be part of our work

how to giveGive online at www.kalfound.org/give.

Use the enclosed envelope.

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

OUR MISSION

A community where every person can reach full potential.

OUR VISION

PHOTOGRAPHERRobert Neumann

PRINTERRiverRun Press

WRITERSTom Vance

Shannon Bronsink

ART DIRECTOR / DESIGNERShannon Bronsink

COPY EDITORJan Andersen

PROJECT MANAGERJoanna Donnelly Dales

EquityEducation

OUR PRIORITIES

ANNUAL REPORT TEAM

402 East Michigan Avenue Kalamazoo, MI 49007-3888

269.381.4416 www.kalfound.org

Nonprofit OrganizationU.S. PostagepaidKalamazoo, MI Permit Number 66