The Pittsburgh Foundation

Foundation assets exceed $1 billion

Foundation assets exceed $1 billion for first time
 
-- aided by strong fundraising and robust investment strategy

PITTSBURGH, Pa., Feb. 28, 2014 –The Pittsburgh Foundation last year exceeded $1 billion in total assets for the first time in its 69-year history, helped by continued strong growth in its annual fundraising, the creation of new charitable funds by families and individuals, and the results of its robust investment strategy.

The Foundation, including its affiliate organizations, ended 2013 with assets of approximately $1.05 billion, up from its 2012 total assets of $905 million. This is a growth of 33 percent compared with the Foundation’s total assets of $785 million at the end of 2007 when markets were at their peak prior to the onset of the economic recession.

A major record was set by the Foundation in 2013 when a total of 105 new funds were established with the organization, together valued at over $20 million. This represents a 38 percent increase on the previous record achieved in 2012 when 76 new funds were created. An additional nine new funds were established by the Community Foundation for Westmoreland County (CFWC).

Overall, the Foundation raised $59.6 million in 2013, the third highest in its history and continuing a trend that has seen the organization significantly strengthen its annual fundraising, including successive records set over the previous three years: 2012, $67.7 million; 2011, $60.5 million; and 2010, $53.2 million. For 2009, annual fundraising totaled $26.3 million.

In recent years the Foundation has also developed a new and diversified investment strategy focusing on a portfolio of stocks, bonds and alternative investments that favor equity risk. In 2013, investment returns averaged almost 15 percent, helping to drive the Foundation’s asset growth.

“I am delighted with our performance in what proved to be another extraordinary year for the Foundation,” said Grant Oliphant, the Foundation’s President and CEO. “In becoming Pittsburgh’s third billion dollar-plus foundation, we reinforce our position as a leading philanthropic resource for our region and nationally. It is an historic milestone, but most important, it further strengthens our ability to tackle big and important issues that are critical to the well-being of our regional community.”

The Foundation continued to develop its successful partnerships with finance sector professionals, and of the new funds established in 2013, 45 were referred by local financial advisors. Under an initiative launched by the Foundation in 2008, financial advisors are able to continue to manage the charitable investments of clients they introduce to the Foundation, subject to approvals.

Currently, local financial advisors manage 25 portfolios of donor funds (up from 17 in 2012) which in 2013 increased to a total of 382 funds, together valued at over $107 million. Five new local financial advisors joined the Foundation’s program in 2013 and more are approved to partner with the organization this year.

To qualify, financial management firms are required to complete a due diligence and approval process and to oversee an investment portfolio of a minimum of $250,000 comprising one or more funds at the Foundation.

A strategy launched in 2010 to enable the conversions of private family foundations to Family Foundation Funds at The Pittsburgh Foundation continued to develop, offering a comprehensive range of personalized options and professional expertise as an alternative to the administrative and investment issues of independent management.

In 2013, five private family foundations converted to funds at the Foundation, together valued at $2.4 million. Since the start of this initiative, 16 private family foundations have converted to funds at The Pittsburgh Foundation, valued at $13.5 million.

In total, The Pittsburgh Foundation received $12.2 million in gifts from individual donors in 2013 and $22.4 million in bequests. Included in the 2013 results is $1.6 million raised by The Pittsburgh Foundation’s affiliate, the Community Foundation for Westmoreland County.

The big increase in the number of new funds established at The Pittsburgh Foundation last year is attributed partly to its vigorous new approach in enhancing donor engagement through the organization’s new Center for Philanthropy, introduced in early 2013. The Center offers a comprehensive range of personal services to support donors with their charitable outreach, including grantmaking, advice and guidance around multi-generational philanthropic issues.

“We have raised the bar very significantly in the way that we are able to help and partner with donors with their charitable missions and in providing the highest levels of service and expertise,” said Yvonne Maher, the Foundation’s Vice President for Development and Donor Services. “The Center for Philanthropy was started in direct response to needs expressed by our donors, and it is an integral resource that we will continue to develop this year.”

The Pittsburgh Foundation including its affiliate organizations ended 2013 with a total of 1,934 individual funds. Last year, the organization awarded total grants of $40.5 million, compared with $43.5 million in 2012.