FINANCIAL SUMMARY

Investment Summary

As of December 31, 2015, the REACH Healthcare Foundation’s assets totaled $122.4 million, reflecting a negative annual return on investments in line with broader economic conditions.

The REACH Foundation experienced an investment return of -4.7 percent for the Foundation’s portfolio in 2015, consistent with broader economic indices for the same period. When compared to a return performance of 2.7 percent in 2014 and 13.9 percent in 2014, the 2015 results were sobering. Despite this, in 2015 the Foundation committed $4.5 million in grant awards and an additional $200,000 in direct investment toward strategic program-related objectives. With these investments and the poor investment returns, the Foundation’s asset level dropped to $122.4 million as of year-end, from $134.3 million at the same point in the previous year. This investment balance remains ahead of the endowed amount of $116.9 million.

The Foundation continues an investment approach that maintains a broadly diversified portfolio with allocation to a variety of asset classes, designed to manage risk and with an aim of achieving strong net returns comparable to other institutions with similar asset allocations.

The Foundation’s spending policy is based on a three-year quarterly rolling average of asset value. The basis for this budgeting process allows the Foundation to minimize the impact of dramatic market fluctuations and provide a more consistent funding stream to grantees. It also means that future mission-related investments will lag increases in the Foundation’s asset base.

Grants and Expenses

Since the first year of grant making in 2005, REACH has awarded $47.9 million in grants. Nearly 77 percent of the Foundation’s total expenses since formation have been invested directly in the community via grants and funded initiatives. Another 12 percent reflects investment in the Foundation’s mission via staff time and related operating expenses. These individuals are responsible for developing and managing the Foundation’s programmatic strategies. The Expenses chart presented shows direct and indirect mission-related investment for 2015 in relation to other administrative spending.

FINANCIAL POSITION

DECEMBER 31, 2015 and 2014
ASSETS
CASH
RECEIVABLES AND OTHER ASSETS
INVESTMENTS
FIXED ASSETS, NET

TOTAL ASSETS
2015
51,767
35,726
122,420,958
         31,163

122,539,614
2014
112,899
36,156
134,295,024
         49,304

134,493,383
LIABILITIES & NET ASSETS
Accounts payable & accrued expenses
Grants payable

TOTAL LIABILITIES


TOTAL NET ASSETS

TOTAL LIABILITIES & NET ASSETS

150,547
    1,333,536

$1,484,083



   121,055,531

122,539,614

174,014
   1,238,910

$1,412,924


   133,080,459

134,493,383

ACTIVITIES AND CHANGES IN NET ASSETS

YEARS ENDED DECEMBER 31, 2015 AND 2014
Revenues, Gains & Other Support
Contributions
Investment Income (Loss), Net

TOTAL revenues, gains & other support
2015
-
       (5,526,306)

(5,526,306)
2014
600,330
         4,484,991

5,085,321
Expenses
Grants and program expenses
Operating Expenses

TOTAL Grants & operating Expenses

5,809,188
         689,434

6,498,622

5,533,126
         690,452

6,223,578
Change in NET ASSETS:

Net Assets, Beginning of Year

Net Assets, End of Year

(12,024,928)

    133,080,459

$121,055,531
(1,138,257)

   134,218,716

$133,080,459