2016 Annual Statement of Accountability CATHOLIC COMMUNITY FOUNDATION of Los Angeles OUR MISSION EMBRACES OUR VALUES THROUGH A COMMUNITY OF FAITH AND LOVE IN ONENESS WITH THE CATHOLIC CHURCH THROUGHOUT THE WORLD. THESE VALUES INCLUDE UPHOLDING THE DIGNITY OF LIFE FOR ALL, WORKING TO ELIMINATE POVERTY, AND HELPING TO REMOVE THE BARRIERS THAT DIVIDE PEOPLE IN LARGE, COMPLEX, AND MULTICULTURAL SOCIETIES SUCH AS SOUTHERN CALIFORNIA. THIS MISSION IS CARRIED OUT THROUGH THE SUSTAINABILITY OF PARISHES, SCHOOLS, SACRAMENTAL LIFE, AND VOCATIONS FOR ALL RELIGIOUS, PLUS COMMUNITY OUTREACH AND SERVICE TO OTHER ORGANIZATIONS THAT ARE CLOSELY ALIGNED TO THESE GOALS. Chairman’s Letter Dear Friends, The Catholic Community Foundation of Los Angeles closed its second operating year on December 31, 2016. During these formative two years, over $250 million in funds were entrusted to us to manage. We made a record number of grants totaling over $50 million, and $203 million in assets under management were on our books at year-end. The highlight of our year was receiving an unrestricted grant from The Thomas and Dorothy Leavey Foundation, which allowed us to pay off all our operating debt to the Archdiocese of Los Angeles. We now have 85 separate funds, including 36 that were gifted to us. The growth in these funds, together with the large amount of grants we issued in this fiscal year, are testament to our financial strength and the impact we make on the communities we serve. Since our last report, we welcomed Tim Busch, Dorene Dominguez, Dave Misch, and Ed Roohan to our Board, all of whom provide us with more expertise in financial management and developing client relationships. We regretfully accepted the resignations of Lisa Stevens and Rick Hernandez, extending our appreciation for their service and commitment to our mission. On behalf of our Board, we are grateful to every client, to each employee, and to all of the contractors and service providers who support CCF-LA and who made 2016 so successful. Sincerely, William M. Wardlaw Financial Highlights The most significant fiscal event in 2016 for parishes, social services, religious orders, the Catholic Community Foundation of Los and other entities within the Archdiocese, Angeles was paying off our operating debt. for a 409 percent increase in grants from This was made possible by a grant from The $8.1 million in 2015. Contributions were Thomas and Dorothy Leavey Foundation to down from $66.4 million in 2015 to $43.2 pay off $561,000 owed to the Archdiocese million primarily due to timing of charitable of Los Angeles. In addition, the Archdiocese gifts made at year-end 2015. forgave $95,000 in other payables. Net assets grew by $7.3 million, or Other highlights from our second operating 12.7 percent, from $57.8 million to year included a 7.1 percent growth in assets $64.7 million in 2016. This growth was under management from $189 million to $203 due to tight controls on spending, new million. Of that amount, Agency Fund values client relationships, and an increase in increased by 5.5 percent, from $131.2 million unrestricted gifts from $500 in 2015 to $2.1 to $138.5 million, even with withdrawals of $9 million in 2016. million in funds. Operating expenses increased from We also received $43.2 million in $963,000 to $1.5 million to fund growth in contributions and distributed over $41.2 client development. million in grants to support education, 0.8% 0.7% Composite of Funds 30.3% n Agency Funds n Donor-Advised Funds— Nonpermanent 68.2% n Donor-Advised Funds— Permanent and Designated Endowments n Unrestricted Operating Grant Year Ended December 31, 2016 Statement of Activities 2016 Audited 2015 Audited Revenue, Gains (Losses), and Other Support Contributions $41,161,902 $66,466,495 Unrestricted Operating Grants 2,059,000 - Fund Maintenance Fees 1,081,996 599,550 Investment Income 1,481,933 778 Net Realized Gains on Investments 1,488,623 25,072 Net Unrealized Gains (Losses) on Investments 2,725,327 (98,609) Other Income 95,502 3,871 Net Revenues and Other Support $50,094,283 $66,997,157 Expenses Program Grants Education 40,544,259 7,613,679 Parishes 26,370 22,000 Social Services 229,588 65,250 Other Religious and Seminaries 451,593 404,112 Subtotal Program Grants $41,251,810 $8,105,041 Operating Expenses Program Services - 88,955 Management and General 1,331,130 819,530 Fundraising 167,197 21,230 Subtotal Operating Expenses $1,498,327 $929,715 Total Expenses $42,750,137 $9,034,756 Increase in Net Assets $7,344,146 $57,962,401 Net Assets, beginning of year 57,840,894 (121,507) Net Assets, end of year $65,185,040 $57,840,894 Statement of Financial Position Assets Cash and Cash Equivalents $8,828,205 $12,339,733 Other Current Assets 287,901 278,407 Investments 194,656,636 177,165,741 Noncurrent Assets—Property, Plant, and Equipment (net) 10,552 - Total Assets $203,783,293 $189,783,881 Liabilities and Net Assets Accounts Payable and Accrued Expenses 56,628 65,820 Agency Funds Held in Trust 138,530,696 131,269,260 Capitalized Lease Liability 10,929 - Long-Term Note and ADLA payable - 607,907 Total Liabilities $138,598,253 $131,942,987 Net Assets Unrestricted 63,488,141 56,589,710 Temporarily Restricted 541,919 263,522 Permanently Restricted 1,154,980 987,662 Total Net Assets $65,185,040 $57,840,894 Total Liabilities and Net Assets $203,783,293 $189,783,881 Note: For a complete set of financial statements audited by our independent auditors, RSM US LLP, CPAs, please contact our corporate offices at 213-426-1184. FOR IT IS IN GIVING THAT WE RECEIVE. ~Saint Francis of Assisi NO ONE HAS EVER BECOME POOR BY GIVING. ~Anne Frank THE VALUE OF A MAN RESIDES IN WHAT HE GIVES. ~Albert Einstein AMEN, I SAY TO YOU, WHATEVER YOU DID FOR ONE OF THESE LEAST BROTHERS OF MINE, YOU DID FOR ME. ~ Matthew 25:40 IF YOU CAN’T FEED A HUNDRED PEOPLE, THEN FEED JUST ONE. ~Mother Teresa Executive Director’s Letter Dear Stakeholders and Friends, Imagine that it was just two years ago, on March 2, 2015, that the Catholic Community Foundation of Los Angeles booked its first transactions. On that date, the groundwork was established for a truly remarkable addition to Catholic philanthropy in our Archdiocese. Today, a balance sheet of over $200 million puts our focus squarely on the impetus for growth and impact. With over $50 million in grants funded during this period, the influence has been felt within our local communities in education, healthcare, vocations, and social services. Our goal is to take advantage of this momentum to reach more charities and philanthropists to professionally manage their charitable investments and gifting. Our Development Commission sprang into action this year with ten dedicated professionals representing local regions, areas of expertise, and, most importantly, our faith. The strategic development plan involves outreach to Catholic and other faith- based entities as well as individuals and family foundations. Our product offerings include investment management for charitable organizations as well as investment and gifting management for individuals. We are now rising above the carefully laid foundation in order to reach new horizons for supporting the wide-ranging mission of our Church. This involves plans to reach multiple generations representing the ethnic diversity of our region. Our Board, staff, and stakeholders are committed to teaching and sharing the great joy that comes from giving. It is in creating new ways of giving that our mission is fulfilled to serve our Church and the people who live in our communities. Please know of the daily gratitude we have for each and every client and the value we place in your relationship and dedication to our mission. Sincerely, Kathleen H. Anderson Featured Funds CCF-LA Development Board in documented planned gifts. The Pastors Charitable Fund Endowment Fund will be used to ensure the longevity of the Cathedral at the heart of the Los Donor-Advised Fund Angeles Catholic community. The CCF-LA Development Board was established in July 2016 with a group of eight passionate Cathedral High School professionals, community leaders, and financial Agency Fund planners whose knowledge and resources are shaping the CCF-LA development plan and its As one of the model schools for Catholic high implementation. These individuals, from all school education in Los Angeles, we were proud areas of the Archdiocese, have contributed their to establish a client relationship with Cathedral time and expertise in addition to setting up a High School and school president Martin Farfan. fund to support the most pressing needs of As a Lasallian Christian Brothers school, our young organization. “As a volunteer, it’s so Cathedral High has a long history of service important for me to support the incredible work to and education of poor and working-class of the Catholic Community Foundation of Los young men in downtown Los Angeles. CCF-LA Angeles,” said committee member and donor supports this mission through the investment Cindy Galindo. “My deep belief in their mission and management of an endowment fund that to help not only Catholic organizations in our will serve Cathedral High’s staff, students, and community but also other organizations whose families long into the future. missions follow the heart of church teachings— helping those in need—enables me to live my Order of St. Gregory Endowment Fund for the faith, serve humanity, and grow philanthropy in House of Prayer for Priests our community.” Agency Fund Pastors Endowment Fund There are over 100 local members of the prestigious Order of St.