Financial Statement
2019 Financial Highlights
Statements of Financial Position
| Assets | 2019 | 2018 |
|---|---|---|
| Cash and cash equivalents | 11,057,845 | 14,966,607 |
| Short-term investments (notes 5 and 9) | 14,883,611 | 14,091,990 |
| GMSP short-term investments (notes 5 and 9) | 57,036,415 | 48,066,010 |
| Receivable for unsettled investment trades (notes 7 and 8) | 12,938 | - |
| Pledges receivable, net (note 6) | 35,769,594 | 31,785,052 |
| Accrued investment income | 1,510,848 | 2,708,141 |
| Long term investments (notes 7 and 9) | 179,380,474 | 188,117,352 |
| GMSP long term investments (notes 8 and 9) | 271,882,601 | 349,618,250 |
| Property and equipment, net (note 10) | 26,205,796 | 27,054,396 |
| Collections acquired (note 11) | 1,414,250 | 1,414,250 |
| Other assets | 4,974,708 | 6,342,727 |
| Total assets | 604,129,080 | 684,164,775 |
| Liabilities and Net Assets | ||
| Liabilities: | ||
| Accounts payable and accrued expenses | 6,347,218 | 6,132,991 |
| Accrued wages, vacation, and other related expenses | 2,951,417 | 2,673,172 |
| Payable for unsettled investment trades (notes 7 and 8) | - | 14,297 |
| Accrued distribution to member institutions | 7,651,660 | 7,288,830 |
| Notes payable (notes 13) | 889,620 | 1,925,455 |
| Bonds payable (note 14) | 28,032,770 | 28,876,518 |
| Total liabilities | 45,872,685 | 46,911,263 |
| Net assets (deficit): (note 16) | ||
| Without donor restrictions | (2,278,596) | (3,909,847) |
| With donor restrictions (note 15) | 560,534,991 | 641,163,359 |
| Total net assets | 558,256,395 | 637,253,512 |
| Commitments and contingencies (note 20) | ||
| Total liabilities and net assets | 604,129,080 | 684,164,775 |
Statement of Activities
| 2019 | 2018 | |||
|---|---|---|---|---|
| Without donor restriction | With donor restrictions | Total | Total | |
| Revenue, gains, and other support: | ||||
| Support: | ||||
| Contributions for grants and scholarships | - | 22,984,325 | 22,984,325 | 29,134,387 |
| Contributions and gifts (notes 2 and 18) | 33,056,594 | 31,104 | 33,087,698 | 31,861,166 |
| Bequests and legacies | 3,803,607 | 910,662 | 4,714,269 | 6,943,709 |
| Gifts-in-kind and donated services (note 17) | - | 912,233 | 912,233 | 1,105,047 |
| Total support | 36,860,201 | 24,838,324 | 61,698,525 | 69,044,309 |
| Investment Income: | ||||
| Interest and dividends | 410,080 | 11,225,404 | 11,635,484 | 13,080,748 |
| Amortization of investment premium and discount | - | 2,311,670 | 2,311,670 | 2,128,865 |
| Realized gains/(losses) | 94,031 | (2,065,719) | (1,971,688) | 4,538,105 |
| Unrealized gains/(losses) | 441,414 | 5,987,970 | 6,426,384 | (2,137,585) |
| Total investment income | 945,525 | 17,459,325 | 18,404,850 | 17,610,133 |
| Net assets released from restrictions (note 15) | 122,926,017 | (122,926,017) | - | - |
| Total revenue, gains, and other support | 160,731,743 | (80,628,368) | 80,103,375 | 86,654,442 |
| Expenses: | ||||
| Program services: | ||||
| GMSP | 81,511,729 | - | 81,511,729 | 97,137,103 |
| Scholarships and special projects | 41,528,867 | - | 41,528,867 | 36,046,087 |
| Distributions to member institutions | 14,565,561 | - | 14,565,561 | 14,163,241 |
| Institutional services | 1,885,649 | - | 1,885,649 | 2,022,170 |
| Other program services | 705,423 | - | 705,423 | 795,566 |
| Total program services | 140,197,229 | - | 140,197,229 | 150,164,167 |
| Supporting services: | ||||
| Management and general | 5,493,407 | - | 5,493,407 | 6,411,504 |
| Fundraising | 13,409,856 | - | 13,409,856 | 13,789,183 |
| Total expenses | 159,100,492 | - | 159,100,492 | 170,364,854 |
| Change in net assets | 1,631,251 | (80,628,368) | (78,997,117) | (83,710,412) |
| Net assets, beginning of year | (3,909,847) | 641,163,359 | 637,253,512 | 720,963,924 |
| Net assets (deficit), end of year | (2,278,596) | 560,534,991 | 558,256,395 | 637,253,512 |
Statement of Functional Expenses
| Supporting services | |||||
|---|---|---|---|---|---|
| Management and general | Fund-raising | Total supporting services | Total program service and supporting service expenses | ||
| 2019 | 2018 | ||||
| Distributions: | |||||
| Capital and operational support | - | - | - | 14,565,561 | 14,163,241 |
| Grants and scholarships | - | - | - | 102,230,840 | 116,106,913 |
| Total distributions | - | - | - | 116,796,401 | 130,270,154 |
| Expenses before depreciation, amortization, and bad debts: | |||||
| Salaries and wages | 4,611,619 | 5,597,945 | 10,209,564 | 16,382,649 | 16,011,174 |
| Employee benefits | 1,228,309 | 1,440,987 | 2,669,296 | 4,203,757 | 4,097,799 |
| Advertisements and promotions | 17,008 | 64,286 | 81,294 | 263,641 | 296,771 |
| Professional and consulting fees | 1,782,101 | 724,124 | 2,506,225 | 5,640,857 | 5,516,835 |
| Information technology support | (1,747,457) | 574,715 | (1,172,742) | - | - |
| Office expenses | 160,783 | 249,794 | 410,577 | 573,208 | 839,985 |
| Telephone | 729,095 | 12,178 | 741,273 | 746,501 | 888,373 |
| Postage and shipping | 38,293 | 1,065,403 | 1,103,696 | 1,141,733 | 1,993,413 |
| Occupancy | (610,879) | 983,491 | 372,612 | 1,599,742 | 1,636,472 |
| Printing and publications | 58,951 | 2,123,742 | 2,182,693 | 2,482,150 | 1,787,530 |
| Travel | 124,738 | 333,626 | 458,364 | 2,977,682 | 1,646,485 |
| Meetings | 35,494 | 128,665 | 164,159 | 2,640,850 | 1,654,240 |
| Equipment rental and maintenance | 85,997 | 95,844 | 181,841 | 225,951 | 246,408 |
| Interest expense | 1,126,193 | - | 1,126,193 | 1,126,193 | 1,188,372 |
| Indirect cost recovery | (3,020,860) | - | (3,020,860) | - | - |
| Total expenses before depreciation, amortization, and bad debts | 4,619,385 | 13,394,800 | 18,014,185 | 156,801,315 | 168,074,011 |
| Depreciation and amortization expense | 874,022 | - | 874,022 | 1,500,537 | 1,456,553 |
| Bad debt expense | - | 15,056 | 15,056 | 798,640 | 834,290 |
| Total expenses | 5,493,407 | 13,409,856 | 18,903,263 | 159,100,492 | 170,364,854 |
Statements of Cash Flow
| 2019 | 2018 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Change in net assets | (78,997,117) | (83,710,412) |
| Adjustments to reconcile change in net assets to net cash used in operating activities: | ||
| Realized gains/(losses) on investments | 1,971,688 | (4,538,105) |
| Unrealized losses (gains) on investments | (6,429,384) | 2,137,585 |
| Amortization of investment premium and discount | (2,311,670) | (2,128,865) |
| Bad debt expense | 798,640 | 864,290 |
| Depreciation and amortization | 1,500,537 | 1,456,553 |
| Collections and gifts-in-kind | - | 175,000 |
| Contributions restricted for investment in endowment funds | (675,106) | (1,804,776) |
| (Increase) decrease in assets: | ||
| Pledges receivable | (4,101,178) | (8,330,914) |
| Accrued investment income | 1,197,293 | 540,409 |
| Other assets | 2,002,846 | 607,717 |
| Increase (decrease) in liabilities: | ||
| Accounts payable and accrued expenses | 214,227 | 938,882 |
| Accrued wages, vacation, and other related personnel expenses | 278,243 | (131,898) |
| Accrued distributions to member institutions | 362,830 | 40,788 |
| Net cash used in operating activities | (84,188,151) | (93,913,746) |
| Cash flows from investing activities: | ||
| Purchases of investments | (2,181,984,986) | (1,965,948,824) |
| Proceeds from sales of investments | 2,263,231,443 | 2,062,197,002 |
| With donor restrictions (note 15) | 237,409 | (471,149) |
| Net cash provided by investing activities | 81,483,866 | 95,777,029 |
| Cash flows from financing activities: | ||
| Repayments of note payable | (1,035,835) | (1,002,304) |
| Repayments of bonds payable | (843,748) | (818,748) |
| Contributions restricted for investment in endowment funds | 675,106 | 1,804,776 |
| Net cash used in financing activities | (1,204,477) | (16,276) |
| (Decrease) increase in cash and cash equivalents | (3,908,762) | (1,847,007) |
| Cash and cash equivalents, beginning of year | 14,966,607 | 13,119,600 |
| Cash and cash equivalents, end of year | 11,057,845 | 14,966,607 |
| Cash paid for interest | 1,099,941 | 1,214,624 |