Financial Statement
2022 Financial Highlights
Statements of Financial Position
| Assets | 2022 | 2021 |
|---|---|---|
| Cash and cash equivalents (notes 2b and 4) | $144,848,181 | $82,286,308 |
| Short-term investments (notes 5 and 9) | $13,819,284 | $14,581,727 |
| GMSP short-term investments (notes 5 and 9) | $62,751,058 | $71,648,593 |
| Receivable for unsettled investment trades (note 8) | $6,750 | |
| Pledges receivable, net (note 6) | $83,311,168 | $75,203,628 |
| Accrued investment income | $682,774 | $962,360 |
| Long term investments (notes 7 and 9) | $230,832,867 | $221,234,381 |
| GMSP long term investments (notes 8 and 9) | $112,731,288 | $156,337,893 |
| Property and equipment, net (note 10) | $24,860,087 | $24,629,010 |
| Collections acquired (note 11) | $1,414,250 | $1,414,250 |
| Other assets | $4,601,002 | $5,120,502 |
| Total assets | $679,851,959 | $653,425,402 |
| Liabilities and Net Assets Liabilities: | ||
| Accounts payable and accrued expenses | $9,835,733 | $5,709,164 |
| Accrued wages, vacation, and other related expenses | $4,959,156 | $3,485,798 |
| Payable for unsettled investment trades (note 8) | $13,750 | |
| Accrued distribution to member institutions | $12,414,602 | $10,088,759 |
| Accrued return of funds to the Gates Foundation (note 12) | $26,000,000 | $34,000,000 |
| Deferred revenue | $8,210,781 | $11,527,948 |
| Line of credit (note 13) | ||
| Bonds payable (note 14) | $25,311,526 | $26,255,274 |
| Total liabilities | $86,745,548 | $91,066,943 |
| Net assets: | ||
| Without donor restrictions: Undesignated | $27,140,131 | $19,589,416 |
| Board designated - disaster recovery (note 21) | $16,920,571 | $13,400,000 |
| Board designated - member distribution reserve (note 21) | $4,807,367 | $4,800,000 |
| Total without donor restrictions | $48,868,069 | $37,789,416 |
| With donor restrictions (note 15) | $544,238,342 | $524,569,043 |
| Total net assets | $593,106,411 | $562,358,459 |
| Commitments and contingencies (note 20) | ||
| Total liabilities and net assets | $679,851,959 | $653,425,402 |
Statement of Activities
| Activity | Without donor restrictions | With donor restrictions | 2022 Total | 2021 Total |
|---|---|---|---|---|
| Revenue, gains, and other support: | ||||
| Support: | ||||
| Contributions for grants and scholarships | $153,083,173 | $153,083,173 | $142,681,375 | |
| Contributions and gifts (notes 2 and 18) | $47,617,776 | $47,617,776 | $66,489,205 | |
| Bequests and legacies | $10,433,327 | $1,236,547 | $11,669,874 | $6,597,040 |
| Gifts-in-kind and donated services (note 17) | $24,250 | $957,724 | $981,974 | $952,787 |
| Total support | $58,075,353 | $155,277,444 | $213,352,797 | $216,720,407 |
| Investment income: | ||||
| Interest and dividends | $38,544 | $3,229,863 | $3,268,407 | $4,452,660 |
| Amortization of investment premium and discount | -$27,307 | -$228,485 | -$255,792 | $38,143 |
| Realized gains/(losses) | $782,225 | $6,180,467 | $6,962,692 | $2,516,172 |
| Unrealized gains/(losses) | $943,802 | -$1,628,938 | -$685,136 | $33,414,447 |
| Total investment income | $1,737,264 | $7,552,907 | $9,290,171 | $40,421,422 |
| Net assets released from restrictions (note 15) | $143,161,052 | -$143,161,052 | ||
| Total revenue, gains, and other support | $202,973,669 | $19,669,299 | $222,642,968 | $257,141,829 |
| Expenses: Program services: | ||||
| GMSP | $36,976,337 | $36,976,337 | $77,500,786 | |
| Scholarships and special projects | $105,974,019 | $105,974,019 | $53,845,193 | |
| Distributions to member institutions | $23,180,395 | $23,180,395 | $19,564,294 | |
| Institutional services | $1,667,454 | $1,667,454 | $2,130,021 | |
| Other program services | $210,696 | $210,696 | $1,035,421 | |
| Total program services | $168,008,901 | $168,008,901 | $154,075,715 | |
| Supporting services: | ||||
| Management and general | $7,058,357 | $7,058,357 | $7,004,189 | |
| Fundraising | $16,827,758 | $16,827,758 | $13,161,687 | |
| Total supporting services | $23,886,115 | $23,886,115 | $20,165,876 | |
| Total expenses | $191,895,016 | $191,895,016 | $174,241,591 | |
| Change in net assets | $11,078,653 | $19,669,299 | $30,747,952 | $82,900,238 |
| Net assets, beginning of year | $37,789,416 | $524,569,043 | $562,358,459 | $479,458,221 |
| Net assets, end of year | $48,868,069 | $544,238,342 | $593,106,411 | $562,358,459 |
Statement of Functional Expenses
| Expense | GMSP | Scholarships and special projects | Distribution to member institutions | Institutional services | Other program services | Total program services |
|---|---|---|---|---|---|---|
| Capital and operational support | $23,180,395 | $23,180,395 | ||||
| Grants and scholarships | $33,921,845 | $67,233,311 | $2,000 | $8,000 | $101,165,156 | |
| Total distributions | $33,921,845 | $67,233,311 | $23,180,395 | $2,000 | $8,000 | $124,345,551 |
| Expenses before depreciation, amortization, and bad debts | ||||||
| Salaries and wages | $1,298,953 | $6,424,154 | $1,056,526 | $113,974 | $8,893,607 | |
| Employee benefits | $306,724 | $1,705,495 | $213,895 | $29,164 | $2,255,278 | |
| Advertisements and promotions | $1,575 | $115,306 | $17,955 | $992 | $135,828 | |
| Professional and consulting fees | $181,161 | $18,307,255 | $346,588 | $7,644 | $18,842,648 | |
| Information technology support | $530,374 | $1,058,210 | ($539,489) | $1,049,095 | ||
| Office supplies and other expenses | $133,110 | $247,806 | $168,165 | $549,081 | ||
| Telephone | $7,618 | $12,725 | $11,513 | $909 | $32,765 | |
| Postage and shipping | $1,987 | $6,504 | $1,094 | $9,585 | ||
| Occupancy | $337,965 | $686,328 | $100,627 | $24,737 | $1,149,657 | |
| Printing and publications | $12,333 | $139,714 | $28,018 | $2,150 | $182,215 | |
| Travel | $4,632 | $126,782 | $13,455 | $7,609 | $152,478 | |
| Meetings | $39,618 | $270,007 | $620 | $2,216 | $312,461 | |
| Equipment rental and maintenance | $1,488 | $9,743 | $2,372 | $13,603 | ||
| Interest expense | ||||||
| Indirect cost recovery | $196,954 | $4,630,679 | $13,301 | $4,840,934 | ||
| Total expenses before depreciation, amortization, and bad debts | $36,976,337 | $100,974,019 | $23,180,395 | $1,423,339 | $210,696 | $162,764,786 |
| Accrued return of funds to the Gates Foundation | ||||||
| Depreciation and amortization expense | $244,115 | $244,115 | ||||
| Bad debt expense | $5,000,000 | $5,000,000 | ||||
| Total expenses | $36,976,337 | $105,974,019 | $23,180,395 | $1,667,454 | $210,696 | $168,008,901 |
Statement of Functional Expenses
| Expense | Management and general | Fundraising | Total supporting services | 2022 Total program service and supporting service expenses | 2021 Total program service and supporting service expenses |
|---|---|---|---|---|---|
| Distributions: | |||||
| Capital and operational support | $23,180,395 | $19,564,294 | |||
| Grants and scholarships | $2,250 | $2,250 | $101,167,405 | $79,661,261 | |
| Total distributions | $2,250 | $2,250 | $124,347,800 | $99,225,555 | |
| Expenses before depreciation, amortization, and bad debts: | |||||
| Salaries and wages | $6,952,190 | $6,800,646 | $13,752,836 | $22,646,443 | $19,141,633 |
| Employee benefits | $1,861,870 | $1,484,331 | $3,346,201 | $5,601,479 | $4,702,342 |
| Advertisements and promotions | $6,883 | $132,949 | $139,832 | $275,660 | $198,481 |
| Professional and consulting fees | $2,460,865 | $2,484,154 | $4,945,019 | $23,787,667 | $12,868,412 |
| Information technology support | -$1,673,091 | $449,750 | -$1,223,341 | -$174,246 | |
| Office supplies and other expenses | $110,636 | $556,457 | $667,093 | $1,216,174 | $1,058,848 |
| Telephone | $377,838 | $17,983 | $395,822 | $428,587 | $401,980 |
| Postage and shipping | $39,554 | $1,459,760 | $1,499,314 | $1,508,899 | $1,331,210 |
| Occupancy | -$263,037 | $663,084 | $400,047 | $1,549,704 | $1,458,976 |
| Printing and publications | $67,440 | $2,609,711 | $2,677,151 | $2,859,366 | $2,619,780 |
| Travel | $121,970 | $84,128 | $206,098 | $358,576 | $27,802 |
| Meetings | $12,850 | $32,410 | $45,260 | $357,721 | $215,394 |
| Equipment rental and maintenance | $226,814 | $52,145 | $278,960 | $292,563 | $161,273 |
| Interest expense | $976,537 | $976,537 | $976,537 | $1,010,702 | |
| Indirect cost recovery | -$4,840,935 | -$4,840,935 | |||
| TOTAL EXPENSES BEFORE DEPRECIATION, AMORTIZATION, AND BAD DEBTS | $6,440,634 | $16,827,508 | $23,268,144 | $186,032,930 | $144,422,388 |
| Accrued return of funds to the Gates Foundation | $26,000,000 | ||||
| Depreciation and amortization expense | $617,723 | $617,723 | $861,838 | $1,076,824 | |
| Bad debt expense | $250 | $250 | $500,250 | $2,742,379 | |
| TOTAL EXPENSES | $7,058,357 | $16,827,758 | $23,886,117 | $191,895,018 | $174,241,591 |
Statements of Cash Flow
| Activity | 2022 | 2021 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Change in net assets | $30,747,952 | $82,900,238 |
| Adjustments to reconcile change in net assets to net cash used in operating activities: | ||
| Realized losses on investments | -$6,962,692 | -$2,516,173 |
| Unrealized losses (gains) on investments | $685,136 | -$33,414,447 |
| Amortization of investment premium and discount | $255,792 | -$38,143 |
| Bad debt expense | $5,000,250 | $2,742,379 |
| Depreciation and amortization | $861,838 | $1,076,824 |
| Contributions restricted for investment in endowment funds | ($25,970,929) | ($7,788,628) |
| (Increase) decrease in assets: | ||
| Pledges receivable | ($8,107,540) | ($37,730,599) |
| Provision for uncollectible | -$4,959,250 | -$2,742,379 |
| Accrued investment income | $279,586 | $241,129 |
| Other assets | $275,385 | ($458,289) |
| Increase (decrease) in liabilities: | ||
| Accounts payable and accrued expenses | $4,126,569 | $1,284,520 |
| Accrued wages, vacation, and other related personnel expenses | $1,473,358 | $1,086,951 |
| Accrued return of funds to the Gates Foundation | -$8,000,000 | $21,000,000 |
| Deferred revenue | -$3,317,167 | $11,096,824 |
| Accrued distributions to member institutions | $2,325,842 | $4,638,505 |
| Net cash (used in) provided by operating activities | -$11,285,870 | $41,378,712 |
| Cash flows from investing activities: | ||
| Purchases of investments | -$251,555,153 | -$331,199,573 |
| Proceeds from sales of investments | $301,224,515 | $341,536,930 |
| Purchase of property and equipment | -$848,800 | |
| Net cash provided by investing activities | $48,820,562 | $10,337,357 |
| Cash flows from financing activities: | ||
| Repayments of note payable | ||
| Repayments of bonds payable | -$943,748 | -$903,748 |
| Contributions restricted for investment in endowment funds | $25,970,929 | $7,788,628 |
| Net cash provided by financing activities | $25,027,181 | $6,884,880 |
| Increase in cash and cash equivalents | $62,561,873 | $58,600,949 |
| Cash and cash equivalents, beginning of year | $82,286,308 | $23,685,359 |
| Cash and cash equivalents, end of year | $144,848.181 | $82,286,308 |
| Cash paid for interest | $976,537 | $1,010,702 |