2017 Annual Statement of Accountability PROFESSIONAL PHILANTHROPY MANAGEMENT CHAIRMAN’S LETTER MISSION STATEMENT Dear Supporters of CCF-LA, When this community foundation was established in 2015, it was just that—a foundation. It was designed to build upon that foundation in order to serve the Archdiocese’s mission THE CATHOLIC COMMUNITY FOUNDATION OF LOS ANGELES of providing educational, spiritual, and social services to all who benefit within its three- county borders and beyond. In 2017, we built upon the momentum from the first two operating EMPOWERS CHARITABLE INDIVIDUALS AND ORGANIZATIONS years and as a result we experienced tremendous success. We now manage over $229.1 million in 140 funds and have granted out over $92 million. ACROSS CULTURES AND GENERATIONS THROUGH As you read through the pages of this report, you will see the impact that this success has had on many ministries and deserving charitable entities. We hosted our first client event when Archbishop José H. PROFESSIONAL PHILANTHROPY MANAGEMENT SOLUTIONS Gomez blessed the foundation and asked us to continue to build our community foundation business—the business of professionally managing philanthropy for individuals and organizations. THAT ALLOW CLIENTS TO DEVELOP AND SUSTAIN THEIR Building our business requires a combination of brand awareness and front-line business-development professionals. We formed the Marketing & Communications Commission for the Board in December and are carefully increasing our staff to meet the growth challenges for 2018 and beyond. Our Board is PHILANTHROPY IN SUPPORT OF CATHOLIC VALUES. steadfast in supporting these initiatives. It is my distinct pleasure and privilege to chair this organization. Every day there is a new story that fulfills the faith our clients have in us. On behalf of the Board of Directors, I commend the CCF-LA staff, contractors, vendors, and volunteers for their dedicated efforts to this mission. And I thank our clients for the relationships they have developed with us. Sincerely, William M. Wardlaw Chairman FINANCIAL HIGHLIGHTS YEAR ENDED DECEMBER 31, 2017 We are pleased to report the highlights of our third Statement of Activities STATEMENT OF ACTIVITI ES 2017 Audited 2016 Audited operating year, in which CCF-LA continued to grow We received $34.2 million in contributions, down Revenue, Gains (Losses), and Other Support as a result of the support of our clients and the from $41.1 million in 2016 primarily due to timing Contributions $ 3 4 , 2 2 6 , 1 3 9 $41,161,902 prudent management of the assets entrusted to us. and advantages in accelerating charitable gifts. Unrestricted Operating Grants 1,004 2,059,000 Fund Maintenance Fees 1,160,296 1,081,996 In 2017, we achieved a 12 percent growth in assets Financial market performance in 2017 and fee Investment Income 1,872,628 1,481,933 under management from $203.8 million to $229.1 income earned resulted in a $5.7 million addition to Net Realized Gains on Investments 1,922,544 1,488,623 million and a 3 percent increase in grant volume net revenues for the year compared to $9.1 million Net Unrealized Gains (Losses) on Investments 785,435 2,725,327 to a record $42.5 million. Most remarkably during in 2016, the latter of which included a one-time Other Income 46 95,502 Net Revenues and Other Support $39,968,092 $50,094,283 these first three years, CCF-LA has managed over unrestricted grant. Expenses $320 million in funds Program Grants and has made grants Administration fees Education 39,654,218 40,544,259 of over $92 million increased slightly Parishes 238,914 26,370 Social Services 134,200 229,588 from Donor-Advised from $1.08 million Other Religious and Seminaries 2,482,791 451,593 Funds, creating value to $1.16 million and Subtotal Program Grants $42,510,123 $41,251,810 and impact for not only support our operations, Operating Expenses our clients but also the allowing us to spend Program Services recipients they chose the time and resources Management and General 1,178,036 1,331,130 to support under our to teach philanthropy Fundraising 492,386 167,197 Subtotal Operating Expenses $1,670,422 $1,498,327 guidelines. All this was to further sustain the Total Expenses $44,180,545 $42,750,137 accomplished without Church and its mission Increase in Net Assets ($4,212,453) $7,344,146 incurring debt. in Los Angeles. Fees Net Assets, beginning of year 65,185,040 $57,840,894 are calculated on fund Net Assets, end of year $60,972,587 $65,185,040 We have received a balances at quarter- STATEMENT OF FINANCIAL POSITION clean and unqualified end and are subject Assets opinion on our With 140 accounts under management, the increase in each fund to financial market Cash and Cash Equivalents $4,066,042 $8,828,205 category in 2017 is attributed to our strong development efforts financial health from conditions for our Other Current Assets 103,904 287,901 our independent auditors and referrals from our highly satisfied clients. investment portfolios. Investments 224,930,541 194,656,636 over the past three years. The Investment Noncurrent Assets—Property, Plant, and Equipment (net) 34,200 10,551 Total Assets $229,134,687 $203,783,293 Our tight fiscal internal controls are focused Committee oversees the investment options and around the four Cs: Consistency, Complete allocations to manage our exposure. Liabilities and Net Assets Accounts Payable and Accrued Expenses 19,142 56,628 transparency, Clean recordkeeping, and effective Agency Funds Held in Trust 168,135,290 138,530,696 Cost controls. Operating expenses increased from $1.5 million Capitalized Lease Liability 7,668 10,929 to $1.7 million to fund growth in our client- Total Liabilities 168,162,100 $138,598,253 Statement of Financial Position development operations. Quality client services Net Assets Unrestricted $58,991,057 6 3 , 4 8 8 , 1 4 1 Of our $229.1 million in assets, Agency Fund values and our professional staff are key to growing our Temporarily Restricted 755,559 541,919 increased by 21 percent, from $138.5 million to operation. We outsource functions such as IT, Permanently Restricted 1,225,971 1,154,980 $168.1 million, allowing for withdrawals of $7.6 payroll, and investment reporting to experts that are Total Net Assets $60,972,587 $65,185,040 million in funds during the year. Even with record efficient and cost-effective for us and for our clients. Total Liabilities and Net Assets $229,134,687 $203,783,293 levels of grant activity in 2016 and 2017, the values in Donor-Advised Funds, endowed funds, and Note: For a complete set of audited financial statements as audited by our independent accountants RSM US LLP, CPAs, scholarship funds totaled $60.9 million. please contact our corporate offices at 213-426-1184. PRESIDENT AND EXECUTIVE DIRECTOR’S LETTER Dear Stakeholders and Friends, As we close the books on our third operating year, we have such gratitude in our hearts for the individuals and organizations that have accounts with us. These accounts provide Hope Builders charitable giving and endowment growth that benefits the broad mission of the Catholic CCF-LA issued $42.5 million in grants in 2017, Church throughout our Archdiocese and beyond. becoming one of the nation’s largest Catholic Mass for Father Aloysius Ellacuria, C.M.F. community foundations in terms of granting. We are challenged to continue high levels of growth in both the funds we have under management and the grants we make. That means maintaining Recipients included Catholic schools and parishes, the highest levels of client satisfaction. social-services providers, arts and sports programs, Catholic communities of religious men In the last months of 2017, we completed an important and women, youth programs, and many more. upgrade to our client statements and financial reporting, Our granting program demonstrates the providing our clients with 24/7 access to the daily asset values commitment of our clients and our Church to in their accounts, a new general ledger system, and a new provide services and opportunities to meet the client-management database. most fundamental needs of every person. Additionally, we expanded the types of services and the investment options we provide our clients. We launched the New Philanthropist Donor-Advised Fund program as part of our goal to encourage philanthropy throughout generations. Entering 2018, our sights are set on increasing our presence in the three counties that St. Raphael Catholic School encompass the 8,762 square miles of the Archdiocese of Los Angeles. Our goals are and Los Angeles Chamber Orchestra always will be based on a strong, transparent, and stable foundation. Los Angeles Dodgers Foundation Our results and our future goals could not be accomplished without the leadership and guidance of our Board of Directors, our committee members, and the exceptional staff of professionals who devote themselves to our Catholic mission—to provide a better quality of life for all. Because of each of you, today CCF-LA is the power of one person in a Donor-Advised Fund and the power of many who entrust their charitable assets to us to make a difference. For that, we are proud to provide our professional philanthropy management services. Sincerely, Kathleen H. Anderson BLESSING EVENT On May 30, 2017, Archbishop José H. Gomez officially “In Los Angeles, I’ve witnessed the many good announced the Catholic Community Foundation of works of our parishes and ministries in the Los Angeles through a formal blessing that was then Archdiocese that help thousands of people, from followed by a reception for feeding the hungry to clients, board and committee sheltering the homeless members, staff, and friends.