Letter from the Chief Financial Officer and Treasurer
The Foundation’s total assets increased $628 million, to $10.7 billion at year-end, driven by a return of 11.7 percent on the Foundation’s endowment. Net assets increased by 5.5 percent or $512 million, reflecting the income and gains generated by our investment portfolio net of the costs associated with our charitable activities.
During 2007, the Foundation completed another active year of programming, awarding $488 million in grants and contracts, up 21 percent compared with activity in 2006 (see statistical highlights). Program Development and Evaluation expenses and General Administration costs totaled $52.7 million, a 2.7 percent increase over 2006 and reflective of the Foundation’s continuing efforts to contain costs as programming 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 2006 distribution requirement in 2007; the 2007 distribution requirement was met during the first quarter of 2008.
