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Building on a Lifetime of Public Service, President Clinton

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Building on a Lifetime of Public Service, President Clinton November 9, 2018 Dear Reader: Building on a lifetime of public service, President Clinton established the Clinton Foundation on the simple belief that everyone deserves a chance to succeed, everyone has a responsibility to act, and we all do better when we work together. For nearly two decades, that premise has energized the work of the Foundation in overcoming complex challenges and improving the lives of people across the United States and around the world. As an operating foundation, we work directly, or with strategic partners from the business, government, and nonprofit sectors, to create economic opportunity, improve public health, and inspire civic engagement and service. Our programs are designed to make a real difference today while serving as proven models for tomorrow. The goal of every effort is to use available resources to get better results faster – at the lowest possible cost. Last year, we continued the life-changing work for which many of you know us. Below are examples of the impact our programs had in 2017 – I encourage you to read our 2017 Impact Report for more details. The Clinton Climate Initiative expanded a first-of-its-kind network, the Women in Renewable Energy (WIRE) Network, which mentors and empowers rising women leaders working in the energy sector on islands; The Clinton Development Initiative continued its work providing on-the-ground assistance to farmers in Malawi, Rwanda, and Tanzania, aiding in training on best agricultural practices, providing quality inputs like seeds, and connecting them to markets to sell their crops; The Clinton Giustra Enterprise Partnership joined an effort to accelerate the progress of the UN’s Sustainable Development Goals, along with continuing to build and manage businesses that empower farmers and entrepreneurs worldwide; The Clinton Global Initiative (CGI) continued its work to convene leaders to commit to make a difference, marking ten years of impact of CGI University in 2017 with President Clinton and Chelsea Clinton bringing together more than 1,000 students from 48 states and more than 100 countries at Northeastern University to develop plans to solve critical problems in their communities; The Clinton Health Matters Initiative continued to fight the opioid crisis by accelerating efforts to stop overdose deaths, provide training and resources to medical professionals and community first responders, and promote evidence-based solutions to first responders and families nationwide; The Clinton Presidential Center in Little Rock graduated the third class of the Presidential Leadership Scholars program, a partnership among the presidential libraries of President Clinton, President George W. Bush, George H.W. Bush, and Lyndon B. Johnson to cultivate promising leaders from the business, academic, public service, nonprofit, and military sectors as they seek to create positive change on the issues confronting their communities; Too Small to Fail, the early childhood initiative of the Clinton Foundation, continued its work to raise awareness about the role parents and caregivers can play in children’s early brain development, expanding its partnership with the Coin Laundry Association to promote early literacy by deploying resources to 5,000 laundromats in underserved communities. The Alliance for a Healthier Generation, an independent affiliated entity founded by the Clinton Foundation and the American Heart Association, continued its efforts to empower kids to develop lifelong healthy habits, helping to introduce healthy nutrition and exercise programs in more than 40,000 schools, juvenile justice facilities, and out-of-school time sites since 2006, reaching over 26 million students. We are grateful to our donors who make this life-changing work possible. As has been reported, after we announced in August of 2016 that the 2016 CGI Annual Meeting would be the final meeting, we anticipated a decline in both revenue and expenses for 2017, largely attributable to the absence of sponsorship and membership contributions for CGI. Moving forward to 2018, our work has expanded into new fields – for example, establishing a new CGI Action Network on Post- Disaster Recovery; beginning new work with faith leaders to help address the opioid epidemic, particularly focusing on issues of stigma; and forging new partnerships to promote early childhood literacy and development. As we look to 2019 and beyond, we seek to build on our record of impact and help to support more people and communities around the world. We continue to receive top ratings from charity evaluators. In the past year, Charity Navigator renewed its ranking of four out of four stars; GuideStar renewed the Foundation's Platinum rating; the Better Business Bureau’s Wise Giving Alliance accredited the Clinton Foundation as meeting all of the BBB’s standards for governance, effectiveness, finance, and fundraising. In addition, the American Institute of Philanthropy’s “Charity Watch” has awarded the Clinton Foundation an “A” rating for its financial performance. We are excited for the future, and remain committed to making a positive difference in even more lives across the U.S. and around the world for years to come. Sincerely, Kevin Thurm Chief Executive Officer Bill, Hillary & Chelsea Clinton Foundation Consolidated Financial Statements (With Supplementary Information) and Independent Auditor's Report December 31, 2017 Bill, Hillary & Chelsea Clinton Foundation Index Page Independent Auditor's Report 2 Financial Statements Consolidated Statement of Financial Position 4 Consolidated Statement of Activities 5 Consolidated Statement of Cash Flows 6 Notes to Consolidated Financial Statements 7 Supplementary Information Consolidating Statement of Financial Position 28 Consolidating Statement of Activities 29 1 Independent Auditor's Report To the Board of Directors Bill, Hillary & Chelsea Clinton Foundation We have audited the accompanying consolidated financial statements of Bill, Hillary & Chelsea Clinton Foundation (the "Clinton Foundation"), which comprise the consolidated statement of financial position as of December 31, 2017, and the related consolidated statement of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Bill, Hillary & Chelsea Clinton Foundation as of December 31, 2017, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Emphasis-of-Matter As discussed in Note 1 to the consolidated financial statements, the Clinton Foundation, adopted the Financial Accounting Standards Board Accounting Standards Update ("ASU") No. 2016-14, Not-for- Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, as of and for the year ended December 31, 2017. The requirements of the ASU have been applied retrospectively. Our opinion is not modified with respect to this matter. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating supplementary information on pages 28 and 29 is presented for purposes of additional analysis of the consolidated financial statements, rather than to present the financial position, results of operations
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