Letter from the CFO and Treasurer
The Foundation’s total assets decreased $3.2 billion to $7.5 billion at year-end 2008, reflecting the general broad decline in financial markets during the last quarter of 2008. Net assets decreased $3 billion, reflecting the income and gains generated by our investment portfolio net of the costs associated with our charitable activities.
Despite the economic climate, the Foundation completed another active year of programming in 2008, awarding $523 million in grants and contracts (see statistical highlights). This level of activity is 7 percent higher than in 2007, reflecting a continued commitment to our strategic objectives. In addition, despite asset declines, the Foundation paid out $514 million in qualifying distributions, up 20 percent compared with the prior year. By the end of 2008, the Foundation completed both its 2007 and 2008 distribution requirement. The Internal Revenue Service computes this requirement as roughly 5 percent of the fair market value of assets.
MargareT H. einHOrn
Chief Financial Officer and Treasurer
March 2010