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The Community Foundation for Greater New Haven
Financial Statements (2012)
Form 990 (2012)
IRS Designation Letter
The Valley Community Foundation (Affiliate)
Form 990 (2012)
Financial Statements (2012)
IRS Designation Letter
The communities' charitable assets are held either by The Foundation's corporation known as the The Community Foundation for Greater New Haven, Inc. (The Corporation) or in trust by one of four trustee banks: Wells Fargo (represented by Steve Hudd), Bank of America (represented by Sandy Senich), First Niagra (represented by David Ring) and People's United Bank. Donors determine whether their the gifts will be held in a beneficial trust for The Community Foundation at one of the trustee banks, or within the Corporation.
Each document below shows a snapshot of the relative investment performance of The Corporation, including those endowments managed for the Valley Community Foundation, and its two largest trustee banks, and includes each entity's market-driven investment performance benchmark as reported by Colonial Consulting, LLC.
Investment Performance 1st Quarter - 2013
Corporation Asset Summary and Detail - March 2013
Investment Performance - February 2013
Corporation Asset Summary and Detail - February 2013
Investment Performance - January 2013
Corporation Asset Summary and Detail - January 2013
Investment Performance - 4th Quarter 2012
Investment Performace 3rd Quarter 2012
Investment Performance 2nd Quarter 2012
Investment Performance 1st Quarter 2012
Investment Performance 4th Quarter 2011
In addition to benchmarking the performance against market-driven indices, The Corporation (CFGNH, Inc.) also compares its performance against its community foundation peers nationally. Since inception of the national survey, The Corporation has consistently ranked among the top of its peer group ($250 million - $499 million) as reflected in the chart below.
The chart represents the Council on Foundations’ national investment survey comprising more than $8.3 billion in charitable assets of more than one hundred of community foundations, for the periods ended December 31, 2012 as reported in February 2013. All data is expressed as percentages, and annualized for periods of more than one year. Effective in 2008, The Council on Foundations began to express performance net of investment management and custodial fees. Therefore, the 3-year through 10-year returns are a blend of next and gross performance. N = number of survey participants and ( ) is a negative number.
Median Annualized Rates of Return: All Community Foundations
|
YTD |
|
1 year |
|
3 years
|
|
5 years
|
|
7 years |
|
10 years |
| |
n=167 |
|
n=167 |
|
n=153 |
|
n=135 |
|
n=119 |
|
n=100 |
| CFGNH Inc. |
14.4 |
|
14.4 |
|
8.2 |
|
2.6 |
|
5.5 |
|
8.2 |
Peer Data
(250 Million to $499.9 Million) |
13.2 |
|
13.2 |
|
8.0 |
|
2.5 |
|
5.2 |
|
7.17 |
| All Community Foundations |
12.6 |
|
12.6 |
|
7.6 |
|
2.4 |
|
4.6 |
|
7.1 |
The following chart indicates the Administrative fees for funds administered by The Community Foundation:
Type of Fund
|
Minimum Fund Balance*
|
Fees Assessed
|
|
Unrestricted, Preference & Designated
|
$10,000
|
1% annually of a fund's market value withdrawn quarterly
|
Donor Advised
|
$10,000
|
1% annually of a fund's market value withdrawn quarterly; for funds under $10,000, a minimum fee of $75 per quarter will apply unless the fund fits criteria of a Build-A-Fund
|
| Scholarship |
$25,000
|
If the scholarship requires application and review process, 1.5% annually of a fund's market value withdrawn quarterly; if a scholarship is designated to a single organization, then the designated fund minimum ($10,000) and fees apply (1%)
|
Organization Endowment
|
$10,000
|
0.40% annually of a fund's market value withdrawn quarterly with a minimum fee of $25 per quarter
|
* Funds can be built to fund-minimum in recommended period of 3-5 years or other time period per written fund agreement, except for organization endowment funds. Administrative fees will not be assessed during the "building" period.
Donors May Choose Between Two Investment and Spending Options:
Managed within the endowment pool
If the requested grant amount is larger than the amount available from the spending policy, or larger than the grant amount determined at the establishment of a fund, at least sixty (60) days notice is required for an amount up to 50% of the fund’s then market value, and at least ninety (90) days is required for a distribution amount more than 50% of the fund’s then market value.
Available for Current-use Grantmaking
The amount available for grantmaking will be immediately available on a current basis and will not be managed within the endowment pool and therefore will not have investment performance attributed to the fund.
The Community Foundation for Greater New Haven for more than eighty years has been primarily
an endowment organization designed to maintain the communities’
charitable assets in perpetuity. Therefore, the investment management
concepts and best practices contained within Connecticut law, such as
the Uniform Prudent Management of Institutional Funds Act, and the
Uniform Prudent Investors Act form the basis of our investment
philosophy and strategy. Specifically:
The Community Foundation’s Corporation, The Community Foundation for
Greater New Haven, Inc. ( “CFGNH, Inc.” or “The Corporation”), which
includes those funds held by The Community Foundation’s affiliate – The
Valley Community Foundation, in order to preserve the purchasing power
and real economic spending of the endowment, shall manage its assets in
accordance with a total-return approach, which does not distinguish
between an asset’s yield and appreciation, but rather on the total
expected return of the assets over the long-term. The Foundation will
withdraw a specific percentage of the market value from the endowment
in accordance with a Spending Rule Policy, which is designed to
prudently release a predictable stream of revenue during each fiscal
year to meet the region’s charitable needs, while at the same time
allowing for maximum flexibility and efficiency of the investment
management process.
In order to achieve the spending requirements and maintain the
endowment’s purchasing power, the The Corporation operates in
accordance with two policies: 1)
The Spending Rule Policy and, 2)
The Asset Allocation Policy.
Generally, and in the absence of an institution’s desire to retain the right to withdraw principal from its organization endowment within the meaning of Financial Accounting Standard No. 136 under Generally Accepted Accounting Principles, the process for extracting financial resources from endowment funds to meet the charitable needs of our community is accomplished through a Spending Rule Policy, which is defined as follows:
A Spending Rate, which is determined annually by The Corporaton's Board of Directors, equal to the greater of: a) Fixed percentage1 of the endowment assets available for investment based on a trailing five-year moving average; or b) Four and One-Quarter Percent (4.25%) (the “Floor”) of the market valuation of the endowment assets at the end of the most recent calendar quarter; provided however in no event shall The Community Foundation spend more than Five and Three-Quarters Percent (5.75%) (the “Cap”) of the market valuation of the endowment at the end of the most recent calendar quarter.
1 The Spending Rate for 2012 is equal to Five and Three-Quarter Percent (5.75%).
The Corporation's long-term asset allocation model is as follows
1:
1 Adopted by the Investment Committee of The Community Foundation's Corporation April 2012, effective July 1, 2012.
The external investment managers listed below are retained to perform specific asset class services in accordance with the long-term asset allocation model, and are chosen through a competitive selection process conducted by The Community Foundation's Investment Committee.
The thirty managers* currently retained are:
* As approved by the Investment Committee, through February 26, 2013.
The Community Foundation's Corporation and The Community Foundation measure and assess its investment performance monthly, both on a manager-by-manager and cumulatively, through an external third party. All investment performance data, including holdings and transactions, is independently provided by each manager The Community Foundation’s independent auditor and to Colonial Consulting, L.L.C., a New York based firm that provides evaluation and investment advisory services to more than seventy foundations and endowments nationally, including more than twenty community foundations. Investment performance is assessed against two benchmarks, as follows:
“Absolute”: The Absolute investment performance benchmark is equal to the Consumer Price Index plus effective Spending Rate.
“Relative”: The Relative investment performance benchmark is equal to fifty (50) basis points (0.5%) above the rate of return produced by specific market benchmarks, which represent the asset classes contained in the long-term asset allocation model, with such market benchmarks weighted in accordance with the model’s target allocation.
The total expected annual cost for
investment management process is approximately sixty-seven (67) basis points (0.67%). The Community Foundation has and will continue to present any investment performance statistics on a “net of fee basis” (i.e. after the payment of all direct costs associated with the investment management process) when comparing its results against the Absolute and Relative benchmarks. In fiscal year 2011 (audited, 20 February 2012), the cost of investment management for the endowment was fifty-six (56) basis points (0.56%).
The Community Foundation’s Board of Directors annually appoints an Investment Committee consisting of six (6) members, not necessarily from the its own membership, which shall be responsible for complete oversight and implementation of the strategies, models, and managers for the investment of the charitable assets entrusted to The Corporation. In concert with the professional staff, the Investment Committee may engage consultants as necessary or desirable to discharge its duties, and shall report such results, activities, and actions to the Board of Directors, the donors, and the general public via The Community Foundation’s website, at regular intervals.
Currently, the Investment Committee consists of three (3) members of The Community Foundation’s Board of Directors and three (3) independent investment experts selected by the committee’s membership. In addition, The Community Foundation will annually appoint an investment advisory group, which membership includes representation from each of The Community Foundation’s trustee banks, The Community Foundation and Colonial, so that collaborative and integrated approaches, multi-faceted due diligence analyses, and various assessment tools and perspectives can be employed for the overall management of The Community Foundation’s endowment.