2018 Annual Report to the Community GOVERNANCE | 2019 CFA BOARD OF DIRECTORS Donald W. Washington* Robert “Rob” Eddy Jr. Jerry E. Shea Jr. Kam Movassaghi, PhD, PE Anita M. Fontenot Jones Walker The Pinnacle Group Touché Ventures, LLC Movassaghi, LLC Southwest Fidelity Corporation Chair Vice-Chair Secretary / Treasurer Immediate Past Chair Business Development Civic Leadership Cmte. Chair Investment Cmte. Chair Cmte. Chair William Hendrix Raymond J. Hébert Bill Fenstermaker Donald A. Capretz Elena Arcos Pecoraro Whitney Bank Community Foundation C.H. Fenstermaker A Professional Law Pecoraro Law Finance Cmte. Chair of Acadiana & Associates, LLC Corporation President & CEO Gregory J. Hamer Sr. James Parkerson Roy Jason Freyou Joey Durel Mike Michot B&G Foods Domengeaux Wright Roy Home Bank IberiaBank The Picard Group & Edwards, LLC Patrick Patout Randy K. Haynie Rodney L. Savoy Keith Myers Gulf Coast Bank Haynie & Associates RR Company of America, LLC LHC Group Community Foundation of Acadiana’s Board of Directors consists of individuals who reside in and represent each of the eight parishes of its primary service area in Acadiana including Acadia, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, St. Mary and Vermilion. CFA seeks directors with integrity and a variety of perspectives, opinions and experiences who are capable and committed to the Foundation’s core purpose of building legacies and improving communities by connecting generous people to the cause they care about. *In 2018, President Trump nominated Washington to be the Director of the U.S. Marshals Service. In 2019, the U.S. Senate confirmed this nomination. At the time of Mr. Washington’s departure, Rob Eddy, Jr. will assume the position of Chairman, Jerry Shea Jr. will be Vice-Chairman, and Anita Fontenot will be Secretary / Treasurer. Our core purpose is to build legacies and improve communities by connecting generous people to the causes they care about. BUILDING LEGACIES Generous donors have the opportunity to establish a charitable savings account in numerous ways. Donors establish a fund at CFA that they name and they direct. CFA’s impermanent Donor Advised Funds are easy to establish and can be done with any amount. Contributions to the fund are tax deductible. Donors use these funds to make grants to nonprofits, churches and schools, and CFA manages all of the paperwork for you. Establishing gifts and fund balances are never public, not even to the CFA Board of Directors, and the funds can benefit from the appreciation of its invested dollars. At any time or as part of a succession plan, donors transition to other permanent named funds. Such permanent named funds include Scholarship Funds; Designated Funds allocated for particular churches, schools or nonprofits; or Fields of Interest Funds that benefit particular causes or a particular parish. This is a powerful tool to build one’s legacy and memorialize or honor parents, grandparents and others. “I want my life’s work to benefit others,” said one generous donor. IMPROVING COMMUNITIES CFA’s primary service area includes the eight (8) Acadiana parishes of Acadia, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, St. Mary and Vermilion. CFA grows and enhances philanthropy throughout this region. CFA’s most prominent civic leadership endeavors include the establishment of the Iberia Parish Foundation and St. Mary Parish Foundation, affiliate foundations of CFA. Community leaders and philanthropists in surrounding parishes are working to establish an affiliate foundation for their respective parishes. CONNECTING GENEROUS PEOPLE TO THE CAUSES THEY CARE ABOUT Through the power of our donors and investors of CFA, we are making a substantial impact on the causes that you care about. In 2018, we witnessed our assets increase to $129 million. Additionally, we received nearly $28 million in gifts and distributed more than $20 million in grants and scholarships. You can view our 2018 financial report on pages 6 and 7. 3 Funds at Community Foundation of Acadiana PERMANENT OR NON-PERMANENT FUNDS The first decision a donor makes in establishing a fund at CFA is whether the fund is to be permanent or non-permanent. PERMANENT FUND A permanent gift whereby the principal is invested and preserved ensuring the donor’s long-term intent of its use. The gift is invested and annually a portion of the earnings is available to be granted to the philanthropic causes defined by the donor. NON-PERMANENT FUND The donor can use the principal donated and any earnings to benefit their philanthropic causes defined by the donor. DONOR ADVISED AND CORPORATE ADVISED FUNDS Essentially, a charitable savings account, this option is our most popular and makes giving easy. Individuals, families or companies can make tax-deductible contributions at any time. Grants are then made to any number of US 501(c)(3) nonprofits, churches, schools or public entities at the discretion of the donor(s). DESIGNATED AND AGENCY FUNDS These Funds benefit a non-profit organization the donor supports. Donor(s) name the designated organization(s) that will benefit from this Fund. A nonprofit can also establish this type of Fund to support its own charitable mission, ensure continuity of its programs and meet emergencies and financial deficits. FIELD OF INTEREST These Funds benefit an interest and cause that is important to the donor. Donor(s) may define the field of interest broadly or specifically such as the arts, childhood obesity, or a particular community or parish. SCHOLARSHIP FUND These Funds provide assistance to students at any education level or for a specific institution. They can also be established to honor a loved one. Scholarship awards are granted to the student and designated entity per purpose and criteria. EMPLOYEE EMERGENCY RELIEF FUND Funds provide immediate financial assistance to employees of a company or members of an association who experience a financial hardship due to an emergency situation that is beyond their control and is not caused by the employer. PERMANENT DISCRETIONARY FUND From these Funds, the CFA Board of Directors award grants to organizations that meet emerging needs and opportunities in the communities we serve. LEGACY FUND A donor can establish a Fund with CFA to be funded with a future “planned gift.” The most popular planned gift is a simple bequest via a will. Other planned gifts include charitable remainder trusts or charitable lead trusts, gifts of remainder interest in a home or real estate, life insurance proceeds and life estates. Today, the donor determines the type of Fund and its future beneficiaries. This is a simple and powerful vehicle to create a legacy for oneself and one’s family. 4 Establishing Your Donor Advised Fund is Simple 1 YOUR GIFT 2 GIFT OPTIONS INDIVIDUAL OR FAMILY CASH WILLS & ESTATE GIFTS REAL ESTATE CORPORATION, BUSINESS OR STOCKS, BONDS CLOSELY HELD NONPROFIT ORGANIZATION & MUTUAL FUNDS STOCK CHOOSE YOUR CREATE & NAME YOUR FUND 3 INVESTMENT POOL 4 AGGRESSIVE MIX MODERATE AGRESSIVE MIX DONOR & DESIGNATED & FIELD OF SCHOLARSHIP MODERATE MIX CORPORATE AGENCY FUND INTEREST FUND ADVISED FUND CATHOLIC VALUES FUND CONSERVATIVE MIX RISK AVERSE CUSTOMIZED ALLOCATION PERMANENT EMPLOYEE LEGACY FUND SEPARATELY MANAGED (DISCRETIONARY) EMERGENCY RELIEF by your trusted Financial Advisor FUND FUND GRANT TO 5 CHARITABLE ORGANIZATIONS EDUCATION HEALTH CHURCHES DISASTER NONPROFIT YOUTH & HUMAN COMMUNITY DEVELOPMENT SERVICES ORGANIZATIONS 5 Foundation Financials FOUNDATION ASSETS, GIFTS & GRANTS Since its inception in 2000, Community Foundation of Acadiana has received cumulative gifts of more than $253 million and has made cumulative grants of more than $127 million (as of December 31, 2018). CFA stewards 893 funds with 53.1% of the balances separately managed by donors’ trusted financial advisors. $129.0M $27.9M $20.1M 2,666 2,044 2018 2018 2018 2018 2018 Total Assets Total Gifts Total Grants & Individual Donors Grants Awarded Received Program Expenses* *Program expenses include expenses related to a fund’s charitable projects as directed by the fund owner(s). FOUNDATION ASSETS 2018 GRANTS BY SUPPORT AREA CFA’s assets as of December 31, 2018 were $129.0 million. Donor and The Foundation’s grantmaking is largely Corporate Advised Funds make up 61% of this asset base. CFA’s assets donor-directed to the causes they care exist in our primary service area of Acadiana. about such as Community Development, Education, Religious Support and Health and Human Services. 2018 Assets by Fund Type 2018 Assets by Parish* 2018 Grants by Support Area* n Donor/Corporate Advised Funds (61%) n Acadia (7%) n Community Development (36%) n Real Estate & Alternative Assets (19%) n Evangeline (1%) n Religious Support (27%) n Agency/Designated Funds (15%) n Iberia (9%) n Education / Scholarship (14%) n Field of Interest Funds (3%) n Lafayette (53%) n Health & Human Services (11%) n Scholarship Funds (1%) n St. Landry (12%) n Youth Development (7%) n Special Project Funds (1%) n St. Martin (1%) n Disaster Relief (3%) n St. Mary (4%) n Other (2%) n Vermilion (2%) n Other (11%) *Excludes holdings in real estate *Excludes Program Expenses and other non-investable assets 6 2018 OPERATING COSTS RATIO IS 0.79% OF TOTAL ASSETS 61% INCREASE IN INVESTABLE ASSETS MANAGED IN SEPARATELY-INVESTED ACCOUNTS VIA CFA’S FINANCIAL ADVISOR PROGRAM 49.1% INCREASE IN TOTAL GRANT & PROGRAM EXPENSE DISTRIBUTIONS FROM 2017 TO 2018 INVESTING YOUR GENEROUS RESOURCES CFA is focused on long-term growth of investable charitable assets and provides various managed and passive investment strategies to help donors achieve their charitable objectives. The range of 2019 investment options include Aggressive Mix, Moderate Aggressive AUDIT COMMITTEE Mix, Moderate Mix, Catholic Values, Conservative Mix, Risk Averse Jerry Shea Jr., Chair and any customized allocation a donor chooses. Larry Callais Darren Guidry Donors can even opt for a separately-invested account and to retain Paul Patout their investment professionals via our Financial Advisor Program. Arthur J.