Letter from the CFO and Treasurer
In 2006 the Foundation’s total assets surpassed $10 billion, driven by a return of 14 percent on the Foundation’s endowment. Net assets increased by 8.9 percent or $760 million, reflecting the income and gains generated by our investment portfolio net of the costs associated with our charitable activities.
During 2006 the Foundation completed another active year of programming, awarding $403 million in grants and contracts, up 9 percent compared with activity in 2005 (see statistical highlights). Program Development and Evaluation expenses and General Administration costs totaled $51.3 million, a 4.4 percent increase over 2005 and reflective of the Foundation's efforts to contain costs as grantmaking expands.
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 Robert Wood Johnson Foundation completed its 2005 distribution requirement in 2006; the 2006 distribution requirement was met during the first quarter of 2007.
