Silicon Valley Community Foundation

INVESTING IN THE COMMON GOOD

CELEBRATING 10 YEARS OF GIVING
$0,000,000,000

Welcome to our

Annual Financial Report 2016

This report draws on our audited financial results to demonstrate our financial health, as well as our commitments to responsible stewardship, transparency and public accountability regarding our financial operations.

In 10 years, SVCF has grown to become the world’s largest community foundation.

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$4.3Billion

donated to local, national & global charities since 2007

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$1.3Billion

donated to charities in 2016 alone

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64Countries

including the U.S., served by SVCF in 2016 alone

Because we work with innovative people in Silicon Valley, innovative people from across the country are drawn to partner with us. Hear from our leaders about our accomplishments over the past ten years and their vision for the future.

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Emmett Carson, Ph.D.

CEO & President

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Paul Velaski

COO & CFO

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Misti Sangani

Chief Donor Experience and Engagement Officer

We know donors have options when it comes to charitable giving. So we thank our donors — with your generosity, you support your charitable interests, and you also allow Silicon Valley Community Foundation to do important community work that otherwise would not get done.

10 Years of Impact

Financial Statements

Learn about our financial position and activities over the past 10 years.

Assets

SVCF’s assets under management grew to $8.2 billion in 2016. We are proud to work with more than 2,000 individuals, families and companies. Our growth is a testament to our donors’ commitment to philanthropy and to our own adherence to a strategic investment philosophy.

83%

Donor advised funds

largest share of total assets

55%

Average payout

for advised funds in 2016

TOTAL ASSETS 2007 - 2016

10 year span

Assets by fund type | 2016

Donor Advised Funds | 2016

Fund balanceNumber of fundsAverage payout ratePercentage of funds making grants in 2016
> $25k36684.3%47%
$25k - $100k26369.1%70%
$100k - $1M32226.6%77%
$1M +15619.2%90%
Total1,10754.7%67%

Includes donor advised and committee advised funds. Excludes corporate advised, memorial and employee engagement funds. Excludes funds with zero balance. Payout figures represent the average of the calculated payout ratios for each fund. Payout ratios were calculated by dividing total grants authorized by each fund during the calendar year by each fund’s average balance for the year.

Individually Managed Funds

5-year growth

Individually Managed Fund Assets
Number of Funds in Program

With the Individually Managed Fund program at Silicon Valley Community Foundation, donors can continue to receive investment management expertise from advisors they have built relationships with while enjoying the world-class donor services of Silicon Valley’s center of philanthropy.

Investments

Our ability to fulfill our mission is directly tied to prudent stewardship of investment assets. With assistance from expert investment advisors, we steward numerous portfolios across many charitable vehicles, including donor advised funds, charitable trusts and more.

SVCF is committed to the highest standard of fiduciary duty for charitable assets entrusted to us by donors and nonprofit organizations. We’ve increased diversity among our investment managers, and this process remains a priority.
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Bert Feuss

Senior Vice President, Investments

SVCF is committed to the highest standard of fiduciary duty for the charitable assets entrusted to us by donors and nonprofit organizations. We have increased diversity among our investment managers, and this process remains a priority.

Investment Performance

3-, 5- and 7- year returns for our four main investment pools

3 year returns

5 year returns

7 year returns

Community Endowment

Benchmark 80/20

Social Impact Pool

Benchmark 70/30

Long-Term Growth Pool

Benchmark 75/25

Balanced Pool

Benchmark 50/50

As of December 31, 2016. Performance is net of investment expenses. Returns are annualized for periods greater than one year. Benchmarks are a blend of MSCI All Country World Index (equity) and Barclays Capital Aggregate Bond Index (fixed income) in the ratios indicated.

Investment Returns | 2010-2016

7-year annualized returns surpass peers

Source: Russell/Mellon Endowment & Foundation Survey, 12/31/16. 67 participants with assets over $500 million.

IMPACT INVESTMENTS

$373Million

Number of dollars SVCF and its supporting organizations steward in impact investments

Impact investing continues to gain momentum at SVCF and across the globe as more philanthropists seek to use their investment capital to generate a measurable, beneficial social or environmental impact, and as more investors of all types seek to integrate environmental, social and governance (ESG) factors into the investment decision-making process. SVCF and its supporting organizations steward over $373 million in impact investments. This includes program-related investments from donor advised funds and the Social Impact Pool, a $59-million globally diversified investment option that incorporates double-bottom-line investment funds and ESG investment strategies.

For more information, visit siliconvalleycf.org/impact-investing

committed to diversity

SVCF is committed to diversity and inclusion. We work closely with our investment consultant, Colonial Consulting, to engage minority- and women-owned investment management firms, and we apply high standards of due diligence, hiring only best-in-class firms.

For more information, visit siliconvalleycf.org/manager-diversity.

Assets Deployed to Diverse Managers by Asset Class

Assets Deployed to Diverse Managers

Assets deployed to Diverse Managers
Number of Diverse Managers

grants

We made a record $1.3 billion in grants in 2016, up 57% from the year before. This includes grants from all sources – including from SVCF’s discretionary grantmaking strategies and from funds established by individuals, families and corporations.

We thank the Sand Hill Endowment, established by the late philanthropist Tom Ford, and the many members of our Legacy Society who have chosen to make gifts to SVCF’s endowment that will benefit Silicon Valley in perpetuity.

$818M

grants to bay area charities in 2016

SVCF is the biggest giver to Bay Area causes.

5,300+

charities received SVCF grants in 2016

475 SCHOLARSHIPS

awarded in 2016

Total grants awarded | 2007 - 2016

10-year span

local, national, global grants

grants by fund type | 2016

Bay Area Grants

$818 million
for causes in nine Bay Area counties.

National Grants

$452 million
in grants throughout the United States (excluding Bay Area).

International Grants

$15 million
in international grants.

Grants by Cause

Percentage of grants that went to each cause area

$1.3B
total

community endowment grants and disbursements

Total of $19.2 million in community support in 2016

Total Grantmaking vs. Discretionary Grantmaking

Discretionary grants and disbursements are from funds directed by SVCF staff and board. Non-discretionary grants are from funds advised by SVCF fund holders and supporting organizations, including from donor advised, committee advised and corporate advised funds.

GIFTS

SVCF received $1.4 billion in charitable contributions. We are grateful to our donors and other partners – including financial advisors, nonprofit organizations and corporations – for their confidence in us as an effective steward and partner.

We created 129 new charitable funds for donors.


Bequests, charitable remainder trusts, life estates and outright gifts to SVCF’s Community Endowment Fund provide an important source of permanent charitable capital that helps meet the needs of our community.

Total Gifts

Total gifts yearly, 2007 through 2016 (10 years, as in Foundation Center report)

Gift Sources

charitable gift annuities | 2012-2016

SVCF has seen charitable gift annuities (CGAs) become a more popular choice among donors because they provide future income to donors and/or their loved ones for life, in addition to providing support for organizations that are meaningful to the donors. With a CGA, in exchange for an irrevocable gift to Silicon Valley Community Foundation, SVCF pays a guaranteed, fixed dollar amount to donors and/or their designated family member or friend for life. Donors receive a charitable deduction for a portion of the gift at the time it is established, and a portion of the gift annuity income may also be income-tax-free.

operations

In 2016 our operating revenue grew to $22.4 million, up 3% from the previous year. This revenue represented 0.3% of our assets, indicating that SVCF operated very efficiently. Among many community foundations, 1% is typical.

Support fees are the main source of our revenue. They are instrumental in allowing us to perform our community impact work. Revenue from donors, private foundations, corporations and others utilizing our Customized Philanthropy Services grew 64% in 2016.

Expenses | 2016

$22.3M
total

Fee for Services

Annual Revenue, 2012-2016

Board and Advisors

Board of Directors
  • Emmett D. Carson Ph.D
  • Rose Jacobs Gibson
  • Rebecca Guerra Ph.D
  • Marie Oh Huber
  • Samuel Johnson, Jr. Chair
  • Robert A. Keller
  • Julie Miraglia Kwon
  • Dan’l Lewin
  • Wade W. Loo
  • David P. López, Ed.D. Secretary/Treasurer
  • Laura Miele
  • Kate Mitchell
  • Catherine A. Molnar
  • Daniel Perez
  • Eduardo Rallo
  • Tom Stocky
  • Thurman V. White, Jr.
  • Erik Dryburgh Outside Counsel
Volunteer Investment Committee Advisors
  • Scott Kupor
    Managing Partner, Andreessen Horowitz
  • Jonathan Mandle
    Partner, Corrum Capital Management
  • Georganne Perkins
    Former Managing Director, Fisher Lynch Capital
  • Gabe Santos
    Managing Partner, Homestead Capital USA LLC
  • Gretchen Tai
    Former Chief Investment Officer, Hewlett-Packard Company
  • Sonya Thadhani
    Executive Vice President, Chief Investment Officer and Chief Risk Officer, Bailard, Inc.
  • Alan Zafran
    Senior Managing Director and Portfolio Manager, First Republic Investment Management

about SVCF

Silicon Valley Community Foundation advances innovative philanthropic solutions to challenging problems. We engage donors and corporations from Silicon Valley, across the country and around the globe to make our region and world better for all. Our passion for helping people and organizations achieve their philanthropic dreams has created a global philanthropic enterprise committed to the belief that possibilities start here.
MORE INFORMATION

For contact information and social media references
siliconvalleycf.org

Find a complete digital version of this financial report at
siliconvalleycf.org/commongood

Find our full financial statements and footnotes at
siliconvalleycf.org/financial-data

For a catalog of grants made by SVCF
siliconvalleycf.org/grantees

Explore our first 10 years
siliconvalleycf.org/svcf10years