The Idaho Community Foundation Annual Report 2009 Enriching the quality of life throughout Idaho Contents Letter from Bob Hoover 2 How We Invest 3 About ICF Friends of the Foundation 5 The Idaho Community Foundation is Idaho’s only statewide public foundation administering funds on Legacy Society, Members and Donors 6 behalf of a variety of donors to support Idaho charitable organizations. Idaho Community Foundation Funds 15 Our mission: Enrich the quality of life throughout Idaho. The Idaho Community Foundation works to Donor Advised 15 enrich the quality of life for Idahoans by: • Gathering funds from groups, foundations and Agency 15 individual donors locally, regionally and nationally, and helping them create charitable Designated 17 funds that meet their philanthropic goals. • Growing the funds through prudent, carefully Field of Interest 17 considered, long-term investments to create a permanent endowment that fulfills donors’ Greatest Need 18 charitable objectives, meets the greatest needs in our communities, and supports philanthropy Operating 18 in Idaho. • Granting funds to nonprofit organizations, public Scholarship 18 and private K-12 and higher education institutions, and to cities and counties for a broad variety of Philanthropic Gift 19 worthwhile and critical projects statewide. Special Project 20 Supporting Organizations 20 Charitable Gift Annuities 20 2009 Grants and Distributions 21 Board of Directors 29 Regional Grants Panels 30 Professional Services 30 ICF Staff 30 The Mentoring Network, Inc. serves Nampa, Caldwell, Parma and Homedale school districts. 1 ICF Dear Friends of the Idaho Community Foundation, The release of the Idaho Community Foundation 2009 Annual Report occurs just as I am completing my 10th month as ICF president/CEO. Prior to coming to ICF, my wife Leslee and I had been associated with higher education all of our adult lives. Now we find ourselves working with an extraordinary group of nonprofits and donors who comprise a large portion of Idaho’s philanthropic community. We have found more stimulation and fulfillment in Bob Hoover this new nonprofit philanthropy world than we ever dreamed possible. She and I thank you for embracing us in this new role and for your support of ICF. This annual report will provide more than our financials for the past year. It also tells the stories of the nonprofits to which we have provided grants, the generous people who have started funds with us, and our wonderful members and donors. I am pleased at how the Foundation has weathered the difficult financial period, but I am similarly disheartened by our inability to provide more support to Idaho’s nonprofits and agencies which have experienced unprecedented demands on their services because of this recession. In order to help more of these nonprofits and agencies, we need to raise ICF’s profile throughout the state. One of the key initiatives of the ICF Strategic Plan is to raise our visibility statewide and enhance our communications. As part of that initiative, ICF staff and I have visited all 44 Idaho counties and many of our communities during the past year. We have met community leaders, donors and nonprofits in the small towns of Blanchard, Naples, Bonners Ferry, Marsing, Murphy, Payette, Fish Haven, Preston, Ashton and Driggs, and in the larger cities of Boise, Coeur d’Alene, Idaho Falls, Pocatello, Twin Falls, Caldwell, Nampa and Meridian. We have been in the beautiful interior and met the people of McCall, Ketchum, Challis and Salmon. We have visited the people and groups along the Bear, Priest, Pend Oreille, and Coeur d’Alene lakes and the Snake, Henry’s Fork, Salmon, Clearwater, Clark Fork, Kootenai, Boise, Payette, and Weiser rivers. We plan to present ICF’s story to 60 service groups this year and as we close the first third of 2010, we have made 20 presentations across the state. We have updated our print and electronic communication materials because we recognize there are many different ways of communicating these days. We encourage you to subscribe to our electronic newsletter and invite you to become our fan on Facebook and follow us on Twitter. That said, I add that we still know the value of meeting face-to-face and we will open offices in Idaho Falls and Twin Falls later this year thanks to very supportive Board members and we hope to open an office in Coeur d’Alene as well. Beginning this summer, we will organize our schedules so that an ICF staff person is in eastern and north Idaho two weeks each month and in southwestern Idaho the rest of the time. We will increase our statewide presence further by hosting Regional Luncheons in Ketchum, Coeur d’Alene and Idaho Falls in August and September and hope to see you there. As you read our 2009 Annual Report, you will find the stories, photos and quotes that share our mission – to enrich the quality of life throughout Idaho. It is at the very heart of what we do and I thank you for your generous support of ICF and hope we can count on it in the future. Sincerely, Robert A. Hoover President/CEO Idaho Community Foundation ICF 2 How We Invest ICF invests its endowment for the long term. The goal is to preserve or increase the value of the endowment while continuing to distribute grants. Funds such as philanthropic gift funds and special project funds which are not endowed and are fully expendable are invested in liquid money market instruments. “ICF is dedicated to both growing our endowment for the long-term, and maintaining consistent, increasing grant-making,” said Irv Littman, ICF Treasurer and Chairman of the Investment Committee. “The benefits of sharing investment management and foundation administration are significant and create more opportunities to benefit our community.” The endowment consists of a diversified portfolio of stocks and bonds, allocated among asset classes—65% domestic equities, 15% international equities and 20% domestic fixed income. The Foundation does not invest in derivatives and does not make investments which have restrictions on liquidity. 2009 ASSETS OF THE FOUNDATION By TYPE OF FUND Managers are hired for specific investment assignments. ICF currently retains the equity managers Dimensional Type of Fund Amount Percentage Fund Advisors, Wells Capital Management and The Endowed $51,879,887 78% Vanguard Group. The Foundation’s fixed income manager is State Street Global Advisors. Strategic Non-Endowed $13,841,846 21% Investment Solutions provides consultation. Other Assets* $614,232 1% TOTAL $66,335,965 100% *Includes value of ICF house, property, and equipment TOTAL ASSETS AT YEAR-END 2009 80 75 72.7 70 68.7 66.3 65 58.2 60 55 54.5 48.6 50 47.8 47.5 55.1 45 of Dollars 40 40.6 35 32.4 30 Millions 25 24.1 20 19.4 14.8 15 12.3 8.6 10 5.7 3.5 5.4 5 .9 2.1 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 3 Finance SUMMARIZED FINANCIAL DATA FOR IDAHO COMMUNITY FOUNDATION For Years Ended December 31, 2009 and 2008 A copy of the complete 2009 financial statements audited by Eide Bailly, LLP is available upon request from the Idaho Community Foundation, 210 West State Street, Boise, ID 83702. STATEMENTS OF FINANCIAL POSITION Assets 2009 2008 Cash and Equivalents $ 13,934,176 $ 11,023,559 Investments held by trustees $ 51,218,551 $ 42,826,568 Other Investments $ - $ 100,572 Pledge receivables, net of reserves $ 148,433 $ 169,702 Other Receivables $ - $ - Cash surrender value of life insurance $ 61,653 $ 17,374 Property and Equipment, net $ 353,152 $ 367,590 Land held for resale (1) $ 620,000 $ 620,000 Total Assets $ 66,335,965 $ 55,125,365 Liabilities Accounts Payable and Accrued Liabilities $ 106,129 $ 18,127 Funds Held as Agency Endowments (2) $ 7,076,917 $ 5,688,978 Charitable Gift Annuity Liability $ 73,439 $ 39,000 Total Liabilities $ 7,256,485 $ 5,746,105 Net Assets Unrestricted: Operating $ 614,232 $ 603,662 Endowment $ 44,462,969 $ 36,855,663 Non-Endowed $ 13,841,846 $ 11,736,497 Temporarily Restricted: Endowment (3) $ 160,433 $ 183,438 Total Net Assets $ 59,079,480 $ 49,379,260 Total Liabilities and Net Assets $ 66,335,965 $ 55,125,365 STATEMENTS OF ACTIVITIES Revenues, gains and other support 2009 2008 Contributions and Memberships $ 5,571,405 $ 10,310,569 Interest and Dividends $ 796,039 $ 1,054,483 Investment gains (losses) $ 8,862,144 $ (19,188,963) Total Revenues $ 15,229,588 $ (7,823,911) Expenses Grants and Distributions (2) $ 4,678,221 $ 6,533,765 Administrative (4) $ 884,715 $ 1,107,447 Total Expenses $ 5,562,936 $ 7,641,212 Other/Transfers $ 33,568 $ 39,554 Excess (Deficiency) of Revenues Over Expenses $ 9,666,652 $ (15,425,569) Net Assets, beginning of year $ 49,379,260 $ 64,804,829 Net Assets, end of year $ 59,079,480 $ 49,379,260 (1) Land for resale includes two non-cash contributions of property donated to the Foundation. These pieces of property will be sold and the proceeds will enable the donors to fulfill their charitable interests. (2) During 2000 the Foundation adopted Statement of Financial Accounting Standards No. 136, which specifically requires that if a not-for-profit organization establishes a fund at a community foundation with its own funds and specifies itself as the beneficiary of that fund, the community foundation must account for the transfer of such assets as a liability. The Foundation refers to such funds as agency endowments. For financial reporting purposes, distributions from agency endowments in the amounts of $297,623 in 2008 and $320,100 in 2009 are not included in the reported Grants and Distributions of the Foundation.