Tab 3: Annual Report (or Equivalent)
and Other Communication Materials
The community foundation submits a variety of communication materials, including the annual report (or equivalent), the dissemination plan for the annual report, and related materials, such as press clippings, news releases, fund brochures, publications, and website printouts.
Material Changes: For the purposes of reconfirmation, a material change adds, deletes, expands or contracts your organization’s governance policies, powers or practices.
For more information, review Core materials, FAQs and a glossary of important terms
Related Standards
I. Definition of a U.S. Community Foundation
I.A A community foundation is a tax-exempt, nonprofit, autonomous, publicly supported, nonsectarian philanthropic institution with a long-term goal of building permanent, named component funds established by many separate donors to carry out their charitable interests and for the broad-based charitable interest of and for the benefit of residents of a defined geographic area.
II. Mission, Structure and Governance
II.F.8 A community foundation's governing body ensures that the community foundation reflects and serves the breadth and diversity of the community.
III. Resource Development
III.A A community foundation has, or works to develop, broad support in the form of contributions from many separate, unrelated donors with diverse charitable interests in the community served by the community foundation.
III.C A community foundation has a long-term goal of securing discretionary resources to address the changing needs of the community it serves.
III.D A community foundation accepts and administers a diversity of gift and fund types to meet the varied philanthropic objectives of donors and the needs of the community it serves.
IV. Stewardship and Accountability
IV.B A community foundation is accountable to the community it serves and regularly disseminates information on its programs and finances.
IV.H A community foundation ensures sound oversight and transparency of its investment and spending policies.
V. Grantmaking and Community Leadership
V.C A community foundation widely disseminates grant guidelines to ensure the fullest possible participation from the community it serves.
VII. Communications
VII.A A community foundation communicates openly and transparently on a regular basis.
Key Elements
- Annual Report (or equivalent) includes:
- description of the foundation’s mission, activities, and financial condition
- evidence of wide distribution and/or availability of annual report or equivalent
- language of document does not contradict the foundation’s intent to reflect the community it serves
- Evidence that the foundation reflects the community’s breadth and diversity. For this key element, community foundations should submit materials demonstrating how the foundation, broadly speaking, reflects the community’s diversity through, for example, its staff, volunteers, grantees, donors, partners, vendors, etc. Sample characteristics/qualities that might be demonstrated include age, gender, race, ethnicity, geography, socioeconomic background, skill sets, profession/occupation and political affiliation.
- Focus on a defined geographical region such as a municipality, county, state, metropolitan area or closely related aggregation of such areas that are considered for some purposes as a community. An organization serving a single greater metropolitan area would satisfy this criterion even if that greater metropolitan area included parts of several states. This criterion excludes national and multinational organizations. (Cross-check with communication materials and mission statement for consistency; can be in any one or all documents.)
- Intent to attract support from a variety of separate, unrelated donors
- Intent to address a variety of fields/issues
- Intent to attract a variety of fund/gift types
- Evidence of availability (upon request) of:
- names of investment managers
- fees charged
- body or individuals responsible for investment and oversight
- Long-term goal of securing discretionary resources to meet changing community needs (Cross-check with communication materials and mission statement for consistency; can be in any one or all documents)
- Evidence of wide dissemination of grant guidelines (Cross-check with grants guidelines; can be in either or both documents.)
- Press clippings and news releases
- Announcements of grantmaking priorities, procedures, and deadlines
- Announcements of major donations and grants
- Announcements of new funds, activities, or staff or board members
Required Documents
- Annual report (or equivalent)
Other Suggested Documents
- Fund brochures
- Newsletters
- Marketing materials
- Printouts from the website
- Dissemination plan for distribution of annual report (or equivalent)
- Press clippings
- News releases
We have not yet published an annual report. How will we meet compliance?
While a traditionally printed annual report is not required to be in compliance with the above standards, the foundation is required to submit a document that accurately describes the foundation's mission and recent activities, programs, and finances. You may submit a newsletter, electronic report, annual report, or other document(s) which contains the required information and is annually disseminated to the community.
We only publish a report every other year. Is this sufficient?
Yes, as long as the document is current and contains all the required key elements.
We make our annual report available only in an electronic format (CD or online PDF). We do not print a hard copy. Is this sufficient?
Yes, as long as the document contains all the required key elements and availability of the annual report is widely publicized.
How detailed must the description of our financial condition be?
The annual report, or equivalent, should contain at least an abridged summary of your audit or financial review, depicting revenue, expenses, assets, and liabilities, for the most recent fiscal year.
Are there any other key elements in communications that we should submit?
Among other things, sample press clippings and new releases should include announcements of grantmaking priorities, procedures, deadlines, major donations and grants, new funds, activities, and new staff or board members.
Additionally, your foundation should submit materials demonstrating how the foundation, broadly speaking, reflects the community's diversity through, for example, its staff, volunteers, grantees, donors, partners, vendors, etc. Sample characteristics/qualities that might reflect diversity include age, gender, race, ethnicity, geography, socioeconomic background, skill sets, profession/occupation and political affiliations. Diversity of the foundation's board of directors is addressed elsewhere. If such evidence is not demonstrated in the minutes, reviewers will cross check documents such as the list of funds or the annual report.
You must submit materials that show public availability of the names of the investment managers, fees charged, and who is responsible for the oversight of the investments and investment managers. This information should be easily accessible for both current and prospective donors.
A report published by a foundation describing its mission, leadership, program, services, activities, and accomplishments. In the case of community foundations, it also describes its grantmaking and donor services, and includes a listing of contributors, selected policies and guidelines, and an audited financial statement.
Dissemination plan
A written document that describes what you want to accomplish with your communications (your objectives), ways in which those objectives can be accomplished (your goals or program of work), to whom your communications will be addressed (your audiences), how you will accomplish your objectives (the tools and timetable), and how you will measure the results of your program (evaluation).
Fund types
There are a variety of fund types offered by community foundations such as scholarship, donor advised funds, field of interest funds, unrestricted funds, and agency endowment funds.
Grant guidelines
A statement of a foundation's goals, priorities, criteria and procedures for applying for a grant.
Investment manager
An advisor who manages the investments of others. In general, a manager with more than $25 million must register with the Securities and Exchange Commission (SEC).
Marketing materials
The printed pieces, such as brochures, letterhead and business cards, an organization uses to market itself.
Reconfirming?
Review all key elements and consider if your organization has made changes to your policies, powers or practices.
Pay special attention to key elements and core materials marked with ![[R icon]](/images/icon_reconfirm_body.gif){kind=icon}
and a ![[P icon]](/images/icon_pension_body.gif){kind=icon}
. These represent minimum requirements for reconfirmation as well as Pension Protection Act requirements. Items marked with a are particularly critical for those who submitted record books prior to January 2007.
Document your compliance with each of these items as well as with all other key elements where support materials may have changed.
Other Tab 3 Resources