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2018 Annual Statement of Accountability Catholic

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2018 Annual Statement of Accountability Catholic 2018 ANNUAL STATEMENT OF ACCOUNTABILITY CATHOLIC COMMUNITY FOUNDATION of LOS ANGELES MISSION STATEMENT CHAIRMAN’S LETTER Dear Friends and Clients of CCF-LA, As we close the books on our fourth great year, we are particularly pleased to mark THE CATHOLIC COMMUNITY FOUNDATION milestones in both growth of assets under management and growth of grants. OF LOS ANGELES EMPOWERS CHARITABLE One of our primary goals was to broaden the boundaries of our professional INDIVIDUALS AND ORGANIZATIONS ACROSS philanthropy management to embrace the entire three-county region of the Archdiocese of Los Angeles. This was accomplished through outreach to more CULTURES AND GENERATIONS THROUGH individuals and organizations in this vast area. At year-end we had $235.7 million PROFESSIONAL PHILANTHROPY MANAGEMENT managed in 177 funds. SOLUTIONS THAT ALLOW CLIENTS TO Most notably, in March, we passed the $100 million mark in DEVELOP AND SUSTAIN THEIR PHILANTHROPY grants made and ended the year having granted more than $144 million since inception. IN SUPPORT OF CATHOLIC VALUES. Despite some clouds surrounding our Church, our donors redoubled their commitment to the foundation, understanding that a “call to action” is an integral part of supporting the good works that are the foundation of our Church. We welcomed Delia M. Roges and Carrie Shea Tilton to our Board, bringing our members to 13. Rosalia S. Nolan completed her term as a founding director with our gratitude. I am grateful to all of our Board members, staff, contractors, volunteers, and clients for their continuing faith and contributions to the Catholic Community Foundation of Los Angeles. Sincerely, William M. Wardlaw Chairman CATHOLIC COMMUNITY FOUNDATION of LOS ANGELES FINANCIAL HIGHLIGHTS YEAR ENDED DECEMBER 31, 2018 During CCF-LA’s first four operating years, we have $34.2 million in 2017, and $13.7 million in deposits to STATEMENT OF ACTIVITIES been entrusted with over $440 million in funds to Agency Funds compared to $16.2 million in 2017. This 2018 Audited 2017 Audited manage and made a total of over $144 million in grants growth reflects the increasing relevance of Donor- Revenue, Gains (Losses), and Other Support Contributions 66,097,370 34,227,143 from Donor-Advised Funds, designated endowments, Advised Funds in today’s charitable-giving environment. Fund Maintenance Fees 892,472 * 769,524 * and scholarship funds. This activity created impact Investment Income 674,321 1,872,674 for our clients and the many charities they chose to Client account fees earned increased 17 percent, from Net Realized Gains on Investments 1,461,829 1,922,544 support under our guidelines. $1.16 million to $1.36 million over FY 2017, to help Net Unrealized Gains (Losses) on Investments (3,126,969) 785,435 support our operations. Fees are calculated quarterly Net Revenues and Other Support $65,999,023 $39,577,320 Statement of Financial on fund balances, which Expenses Program Grants Position fluctuate with financial- Education 49,322,773 39,654,218 market conditions. The Parishes 847,799 238,914 For the fiscal year-end, Investment Committee Social Services 600,092 134,200 CCF-LA reported $235.7 manages the exposure to Other Religious and Seminaries 1,614,224 2,482,791 million in assets under market risk. Fees earned by Subtotal Program Grants $52,384,888 $42,510,123 management in 177 CCF-LA directly benefit the Operating Expenses Management and General 1,085,672 787,264 accounts. Agency Fund mission of the local Church Client Development 575,286 492,386 values were $163 million, by promoting philanthropy Subtotal Operating Expenses 1,660,958 1,279,650 compared to $168.1 and the creation of long- Total Expenses $54,045,846 $43,789,773 million the previous term assets that sustain Increase in Net Assets $11,953,177 ($4,212,453) year, accounting for $9.6 parishes, schools, and Net Assets, beginning of year $60,972,587 $65,185,040 million in redemptions other ministries. Net Assets, end of year $72,925,764 $60,972,587 during the year from STATEMENT OF FINANCIAL POSITION existing clients and the CCF-LA’s controlled addition of new funds. The expenses of $1.55 million Assets balances in Donor-Advised resulted in an operating Cash and Cash Equivalents 265,996 277,209 Funds, endowed funds, deficit of $200,000. Other Current Assets 48,295 103,904 and scholarship funds Liquidity is provided Investments 235,655,432 228,719,374 Noncurrent Assets—Property, Plant, and Equipment (net) 24,400 34,200 totaled $72.7 million at from the CCF-LA Growth Total Assets $235,994,123 $229,134,687 year-end after a record Fund, established in 2016 Liabilities and Net Assets $52.4 million in outflow for specifically to support Accounts Payable and Accrued Expenses 26,276 19,142 grants and scholarships. client-development Agency Funds Held in Trust 163,037,867 168,135,290 We opened 11 new Donor- operations. Client Capitalized Lease Liability 4,216 7,668 Advised Funds, five New satisfaction is the hallmark Total Liabilities $163,068,359 $168,162,100 Net Assets Philanthropist DAFs, one of our success, and the Without Donor Restrictions 7 0 , 3 9 8 , 3 4 1 5 8 , 9 9 1 , 0 5 7 scholarship fund, and quality of our services and With Donor Restrictions 2,527,423 1,981,530 three new restricted funds. our professional staff are key. We continue to outsource Total Net Assets $72,925,764 $60,972,587 functions that are more efficiently handled by experts Total Liabilities and Net Assets $235,994,123 $229,134,687 Statement of Activities and are cost effective for our clients. Note: For a complete set of audited financial statements as audited by our independent accountants, Moss Adams LLP, please contact our corporate CCF-LA received a record $79.7 million in funds to As in the past three years, CCF-LA continues to receive offices at 213-426-1202. manage, reflecting $66 million in contributions to new a clean and unqualified opinion on our financial health and existing Donor-Advised Funds, an increase from from our independent auditors. * With fund maintenance fees on owned accounts included, totals rise to the following amounts, and are offset by the corresponding expense: $1,358,777 $1,160,296 THE DONOR-ADVISED FUND PRESIDENT’S LETTER “PHENOMENON” DONOR > CCF-LA Dear Supporters of CCF-LA, Application Instrument of Gift In 2018, the momentum of the foundation broke boundaries within the Tax Receipt Letter Access to Online Archdiocese of Los Angeles, not only in charitable gifting but also in outreach. A/C activity > We continue to build on our donor options and client services because of your commitment to education, healthcare, DONOR SELECTS vocations, and social services that are faith-based. INVESTMENT CHOICES This year presented troubling challenges to our Church, but < in it and through it our focus on the needs of those God has GRANT REQUESTS called us to serve has made our resolve only stronger. Annual communications Reminders to make grants Our Board of Directors, staff, volunteers, and contractors will continue to build on providing the highest level of philanthropy management along with the timeliness and transparency in our reporting that has earned your trust. In recent years, the Donor-Advised Fund (DAF) has become the fastest-growing charitable-giving vehicle available due to its flexibility to accept contributions of assets now to gain immediate tax advantages while designating charitable recipients over an extended period of time. We particularly thank each of our donor clients for their unwavering support of the foundation and our mission to help you leave a legacy DAFs can be tailored to meet the personal needs of individuals and families from all economic of giving to those charities and causes that are so meaningful to our Catholic circumstances and are an easy way to manage a variety of gifting and granting preferences community. including annual giving, multiyear gifts, or planned bequest/legacy gifts. Sincerely, CCF-LA’s DAF program is unique in its faith-based approach. Our systems and procedures ensure that gifts are always managed with attention to the values and teachings of our Church and that every grant made will help uphold the dignity of life and promote Catholic education, social services for the most vulnerable, the arts, and other programs that make our communities a better place for everyone. Kathleen H. Anderson President and Executive Director A DAF at CCF-LA can be opened with just $10,000, which is invested to increase in value in a tax- free environment, multiplying the impact of the original gift over time. A New Philanthropist DAF, which reaches down to multiple generations, can be opened with just $2,000 and offers the same benefits as a traditional DAF. FEATURED FUNDS FEATURED FUNDS AGENCY FUNDS SCHOLARSHIP FUNDS DONOR-ADVISED FUNDS CCF-LA manages the investments The Foundation is honored to provide investment and Donor-advised funds allow individuals and families of nearly 50 nonprofit administrative services for scholarship funds providing to plan their current and future philanthropy with organizations, offering economies tuition assistance to qualified candidates at designated maximum tax benefits and impact on their selected of scale in a socially responsible Catholic schools. Our staff works with school principals beneficiaries. DAFs are a personal expression of faith investment portfolio that provides and their pastors to identify candidates, and we and charity, and our custom DAF programs reflect our for long-term growth in assets. encourage fund donors to attend awards ceremonies to staff’s commitment to meet each client’s personal We provide monthly account meet student recipients and school leadership. philanthropic goals. statements, custom reports to support audits and other financial Among the scholarship funds at CCF-LA is the: Our 74 DAF accounts include the: requirements, and excellent customer service through our Bill and Theresa Hartfield Misch Family Sts.
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