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November 15, 2017 Dear Reader: at the Clinton Foundation, Our Goal Is Simple – Improve Lives Around the World and Here In

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November 15, 2017 Dear Reader: at the Clinton Foundation, Our Goal Is Simple – Improve Lives Around the World and Here In November 15, 2017 Dear Reader: At the Clinton Foundation, our goal is simple – improve lives around the world and here in the United States. For over sixteen years, we have launched programs to make progress on some of the world’s most pressing challenges – for example, making HIV/AIDS treatment more affordable, combating climate change and promoting renewable energy, and fighting the opioid epidemic. In 2016, we continued our efforts to improve lives wherever we work. Some examples of the progress our programs made last year include: The Clinton Development Initiative grew its smallholder farmer outreach in Rwanda, Malawi, and Tanzania, helping more than 150,000 farmers through 2016 by providing critical training, as well as seeds and fertilizer, to increase their yields and incomes; The Clinton Climate Initiative continued assisting with the development of renewable energy projects across the Caribbean, including a 3 MW solar project and a 30 MW geothermal project in Saint Lucia that are expected to bring clean power to half of the country’s households; The Clinton Health Matters Initiative continued its efforts to fight the opioid epidemic in the U.S., negotiating a groundbreaking agreement with Adapt Pharma to provide the first nasal spray version of naloxone, a drug that can reverse opioid overdoses, to all U.S. high schools free of charge; As part of our efforts to promote early childhood development, Too Small to Fail launched a new effort to distribute books to underserved families through diaper banks, opened 21 “Talking is Teaching” themed playgrounds around the country, and distributed more than 839,000 books to underserved communities in the United States through 2016; The Clinton Giustra Enterprise Partnership continued its work to help smallholder farmers, fishers, women entrepreneurs, and youth around the world improve their livelihoods through social enterprises, expanding its efforts to connect smallholder farmers with high-value markets in 2016; The Clinton Global Initiative (CGI) convened a wide range of leaders through CGI America, CGI University and, after 11 years, CGI’s final Annual Meeting, which concluded with over 3,600 Commitments to Action made by CGI members that have improved the lives of more than 435 million people in more than 180 countries; The Clinton Foundation in Haiti supported increased production of important crops such as moringa, peanuts, and castor for thousands of farmers, and joined with members of the CGI Haiti Action Network to mobilize relief in the wake of Hurricane Matthew; No Ceilings: the Full Participation Project – together with Vital Voices Global Partnership and WEConnect International – launched a new coalition of 30 partners from the public and private sectors that seeks to increase women’s economic participation, address violence against girls and women, and promote women’s leadership; The Alliance for a Healthier Generation, an affiliated entity, founded by the Clinton Foundation and the American Heart Association, continued its efforts to empower kids to develop lifelong healthy habits through its work in schools, juvenile justice facilities, and out- of-school time sites, reaching more than 21 million young people through 2016 in nearly 35,000 schools and more than 2,600 out-of-school time sites; The Clinton Presidential Center in Little Rock continued to offer a variety of educational programs, special events, exhibitions, and lectures, including the Presidential Leadership Scholars program that is jointly run with the George W. Bush Presidential Center, the George H. W. Bush Presidential Library Foundation, and the Lyndon Baines Johnson Foundation; by the end of 2016 the Clinton Presidential Center had welcomed more than four million visitors, including 327,600 students and teachers who have visited the Clinton Presidential Center free of charge. As has been previously reported this year, we saw a decline in revenue in 2016 that we had anticipated. Part of this is attributable to closing out the endowment campaign that ended in 2015, which has helped make our programs more sustainable. In addition, starting in 2015 when Secretary Clinton launched her presidential campaign, we voluntarily adopted restrictions on fundraising. But, as the examples of our progress listed above demonstrate, our programs’ strong work continued in 2016 – and right into 2017. As an operating foundation that implements our charitable programs directly and with partners, we are grateful to our donors who make this life-changing work possible. And, as part of our continued commitment to transparency and accountability, we disclose the names of our over 330,000 donors on our website. Every year, we make our Form 990 and audited financial statement available to the public to view. For reporting purposes, the latter statement also reflects the work of the Clinton Health Access Initiative, a separate 501(c)3 which became independent in 2010. The Clinton Foundation’s model has continued to be affirmed as effective by independent philanthropic watchdogs. In the last few months, three charity evaluators have awarded the Clinton Foundation top ratings – Charity Navigator renewed its ranking of four out of four stars; GuideStar renewed the Foundation's Platinum rating; and the Better Business Bureau accredited the Clinton Foundation as meeting all 20 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 at the Clinton Foundation are excited about the future, and committed to continuing our efforts to improve lives everywhere we work. Sincerely, Kevin Thurm Acting CEO, Clinton Foundation Bill, Hillary & Chelsea Clinton Foundation Consolidated Financial Statements (With Supplementary Information) and Independent Auditor's Report December 31, 2016 and 2015 Bill, Hillary & Chelsea Clinton Foundation Index Page Independent Auditor's Report 2 Financial Statements Consolidated Statements of Financial Position 4 Consolidated Statements of Activities 5 Consolidated Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7 Supplementary Information Consolidating Statement of Financial Position 30 Consolidating Statement of Activities 31 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, 2016, and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the 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 2016 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, 2016, 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. Prior Year Consolidated Financial Statements The consolidated financial statements of the Clinton Foundation as of and for the year ended December 31, 2015, were audited by other auditors whose report, dated November 15, 2016, expressed an unmodified opinion on those statements. 2 Report on Supplementary Information Our
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