The annual financial statements for the Foundation for 2003 appear under the navigation heading Financials. Awards in 2003 are listed in the Grants & Contracts section.

In 2003 the net assets of the Foundation increased 1.4 percent. Overall, our total fund return for the year was 6.48 percent (net). This performance was offset by the large amount of program payments to grantees and contractors in support of our mission. This past year was a high watermark in that regard, with program payments totaling $441 million or 5.85 percent of our average asset value. When coupled with our program development, general administration and evaluation expenses ($46.3 million), the Foundation spent 6.46 percent of its average asset value, substantially exceeding the 5 percent payout requirement mandated by the tax law governing private foundations.

Concurrent with the increase in our program payments, we continued to focus inward on our internal expenditures. As a result, general administration expenses for the year were $20.8 million, a decrease of 9 percent compared to last year.

Investment expenses, comprised primarily of fees paid to outside investment managers, totaled $24.5 million, an increase of $319,000 compared to last year. Federal and state taxes amounted to $5.7 million.

The Internal Revenue Code requires private foundations to make qualifying distributions of 5 percent of the fair market value of assets not used in carrying out the charitable purpose of the Foundation. These distributions are to be completed within twelve months of year-end. The Foundation has fulfilled its 2002 requirement of $412 million. The 2003 requirement is approximately $378 million.

Peter Goodwin
Vice President and Treasurer