FINANCIAL SUMMARY



INVESTMENT SUMMARY


The REACH Foundation’s assets totaled $125.8 million
at year-end 2016, reflecting healthy improvement
over 2015 returns.




The REACH 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 annual mission-related investments will lag increases in the foundation’s asset base because of the foundation’s obligation to maintain spending power into perpetuity.

The foundation’s investment approach 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.

REACH experienced an investment return of 7.4 percent for the foundation’s portfolio in 2016, a noticeable improvement over the 2015 returns. The foundation strives to be a reliable source of funding for community partners and as a result, committed $4.4 million in grant awards along with an additional $200,000 in direct contribution toward strategic policy and program-related objectives. Even with this continued investment in the community, the foundation’s asset level rose to $125.8 million as of year-end, from $122.4 million at the same point in the previous year. This investment balance remains well ahead of the endowed amount of $117.2 million.


Annual Investment Return


Investments

*Total investments for 2016 equaled $125.8 million.


GRANTS & EXPENSES


Since 2005, more than 76 percent of foundation
expenses reflect direct investments in the community
through outcome and policy expenditures.



2016 Expenses


Since the first year of grant making in 2005, REACH has awarded $52.3 million in grants. More than 76 percent of the foundation’s total expenses since formation have been invested directly in the community via outcome, grants and policy investments. Another 12 percent reflects indirect investment in the mission primarily via staff time. These individuals are responsible for developing and managing the programmatic strategies. The 2016 Expenses chart presented shows direct and indirect mission-related investment in relation to other general administrative spending.



Grants & Operating Expenses


Cumulative Grants Awarded



FINANCIAL STATEMENTS


REACH’s balanced investment management
has enabled the foundation to maintain assets
ahead of the endowed amount of $117.2 million.






The financial statements in this publication are unaudited. Our full audited financial statements and auditor’s opinion prepared by BKD, LLP,
will be available on the foundation’s website upon completion.