Forest Highlands Foundation 2020 Annual Report

FINANCIAL REPORT

As mentioned in the Chairman’s Letter, the Foundation has switched to calendar year reporting for 2020. The 2019 numbers presented below have been reset to a calendar year basis for comparison purposes.

Comments

The Foundation does not have a balance sheet in the conventional sense. The only asset is a cash account that is maintained with the Arizona Community Foundation as a Donor Advised Account and that is invested in a Money Market Fund. There are expenses which are mostly discretionary and no longer term liabilities.

2019 was a pre pandemic year and the Foundation was able to hold all of its usual fund raising activities, while 2020 was affected by Covid and as a result, fund raising was limited to two Asks for cash donations. This explains the differences in Other Income, and some of the Expense variance. Given the circumstances of 2020, the Forest Highlands community was extremely generous in its response. 201 members of Forest Highland and 2 sponsors combined to make donations totaling $427,953. These donations, coupled with the strong cash position with which the Foundation entered the year, financed the distributionof $417,218 inGrants to Flagstaff not-for-profits. This is the largest Grants total in Foundation history and compares with an average Grants total of $250,000 over a 20 year span. Increased support for grantees was essential as they were all experiencing increased demand for services because of the economic effects of the pandemic. Additionally, the Foundation has maintained a strong cash position entering 2021. The expectation is for a difficult winter season for the not-for-profit community in Flagstaff and the Foundation is positioned to offer support to key grantees during this period, as we did in 2020. 2021 is a difficult year to anticipate. Will it look like 2020; will we return to normalcy; or will it be somewhere in between. With continued support from the Forest Highlands community, your foundation is positioned to deal with this uncertainty.

The most useful way to portray the Foundation’s financial picture is with cash flow statements as shown below.

2019

2020

Beginning Cash In ACF Acct. $224,901 $439,863

Donations

367,571 427,953*

Net Investment Income Other Income

5,386

1,493

187,066 845

Total Income

$560,023 $430,291*

Misc. Expense 73,598

42,586

ACF Fees

4,658

5,621

Total Expenses

$78,256 $48,207

Grants

$266,805 $417,218

Ending Cash In ACF Acct.

$439,863 $404,729*

*These amounts have been increased by $6,800 to correct computer errors in the transfer of credits to the ACF account. The actual cash correction will occur in January and February of 2021.

FOREST HIGHLANDS FOUNDATION ANNUAL REPORT 2020

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