Financial Statement
2023 Financial Highlights
Statements of Financial Position
| Assets | 2023 | 2022 |
|---|---|---|
| Cash and cash equivalents (notes 2b and 4) | $43,783,759 | $144,848,181 |
| Short-term investments (notes 5 and 9) | $133,572,075 | $13,819,284 |
| GMSP short-term investments (notes 5 and 9) | $60,308,295 | $62,751,058 |
| Receivable for unsettled investment trades (note 8) | ||
| Pledges receivable, net (note 6) | $241,069,307 | $83,311,168 |
| Accrued investment income | $2,276,316 | $682,774 |
| Long-term investments (notes 7 and 9) | $252,769,113 | $230,832,867 |
| GMSP long-term investments (notes 8 and 9) | $81,226,659 | $112,731,288 |
| Property and equipment, net (note 10) | $27,829,222 | $24,860,087 |
| Collections acquired (note 11) | $1,414,250 | $1,414,250 |
| Other assets | $4,564,097 | $4,601,002 |
| Total assets | $848,813,093 | $679,851,959 |
| Liabilities and Net Assets Liabilities: | ||
| Accounts payable and accrued expenses | $14,006,217 | $9,835,733 |
| Accrued wages, vacation, and other related expenses | $5,957,162 | $4,959,156 |
| Payable for unsettled investment trades (note 8) | $14,320 | $13,750 |
| Accrued distribution to member institutions | $8,858,535 | $12,414,602 |
| Accrued return of funds to the Gates Foundation (note 12) | $16,000,000 | $26,000,000 |
| Deferred revenue | $7,571,107 | $8,210,781 |
| Line of credit (note 13) | ||
| Bonds payable (note 14) | $24,334,966 | $25,311,526 |
| Total liabilities | $76,742,307 | $86,745,548 |
| Net assets: | ||
| Without donor restrictions: Undesignated | $29,108,497 | $27,140,131 |
| Board designated-operating reserve (note 21) | $17,580,453 | $16,920,571 |
| Board designated - member distribution reserve (note 21) | $4,849,654 | $4,807,367 |
| Total without donor restrictions | $51,538,604 | $48,868,069 |
| With donor restrictions (note 15) | $720,532,182 | $544,238,342 |
| Total net assets | $772,070,786 | $593,106,411 |
| Commitments and contingencies (note 20) | ||
| Total liabilities and net assets | $848,813,093 | $679,851,959 |
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 | $21,029,880 | $21,029,880 | ||||
| Grants and scholarships | $24,207,260 | $49,263,930 | $5,200 | $125,000 | $73,601,390 | |
| Total distributions | $24,207,260 | $49,263,930 | $21,029,880 | $5,200 | $125,000 | $94,631,270 |
| Expenses before depreciation, amortization, and bad debts | ||||||
| Salaries and wages | $1,251,565 | $8,103,095 | $963,769 | 307,895 | $10,626,324 | |
| Employee benefits | $355,937 | $2,295,808 | $142,120 | $88,132 | $2,881,997 | |
| Advertisements and promotions | $20,000 | $259,362 | $10,354 | $15,988 | $305,704 | |
| Professional and consulting fees | $272,960 | $21,505,074 | $245,113 | $208,702 | $22,231,849 | |
| Information technology support | $407,435 | $1,464,680 | ($320,376) | $1,551,739 | ||
| Office supplies and other expenses | $26,603 | $275,901 | $246,468 | $5,722 | $554,694 | |
| Telephone | $1,065 | $10,701 | $10,691 | $379 | $22,836 | |
| Postage and shipping | $852 | $32,508 | $792 | $34,152 | ||
| Occupancy | $141,816 | $798,978 | $167,058 | $14,884 | $1,122,736 | |
| Printing and publications | $1,200 | $280,871 | $51,890 | $5,978 | $339,939 | |
| Travel | $81,532 | $1,626,199 | $44,756 | $53,333 | $1,805,820 | |
| Meetings | $154,356 | $1,864,618 | $3,056 | $8,260 | $2,030,290 | |
| Equipment rental and maintenance | $3,918 | $18,135 | $2,107 | $24,160 | ||
| Interest expense | ||||||
| Indirect cost recovery | $180,000 | $6,803,626 | ($7,393) | $97,367 | $7,073,600 | |
| Total expenses before depreciation, amortization, and bad debts | $27,106,499 | $94,603,486 | $21,029,880 | $1,565,605 | $931,640 | $145,237,110 |
| Accrued return of funds to the Gates Foundation | ||||||
| Depreciation and amortization expense | ||||||
| Bad debt expense | ||||||
| Total expenses | $27,106,499 | $94,603,486 | $21,029,880 | $1,565,605 | $931,640 | $145,237,110 |
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 | $300,026,632 | $300,026,632 | $153,083,173 | |
| Contributions and gifts (notes 2 and 18) | $40,881,253 | $40,881,253 | $47,617,776 | |
| Bequests and legacies | $8,896,387 | $2,706,857 | $11,603,244 | $11,669,874 |
| Gifts-in-kind and donated services (note 17) | $1,019,343 | $1,019,343 | $981,974 | |
| Total support | $49,777,640 | $303,752,832 | $353,530,472 | $213,352,797 |
| Investment income: | ||||
| Interest and dividends | $2,234,764 | $3,712,119 | $5,946,883 | $3,268,407 |
| Amortization of investment premium and discount | -$27,186 | $144,537 | $117,351 | -$255,792 |
| Realized gains/(losses) | $376,104 | $1,592,468 | $1,968,572 | $6,962,692 |
| Unrealized gains/(losses) | -$1,675,652 | -$10,266,491 | -$11,942,143 | -$685,136 |
| Total investment income | $908,030 | -$4,817,367 | -$3,909,337 | $9,290,171 |
| Net assets released from restrictions (note 15) | $122,641,625 | -$122,641,625 | ||
| Total revenue, gains, and other support | $173,327,295 | $176,293,840 | $349,621,135 | $222,642,968 |
| Expenses: Program services: | ||||
| GMSP | $27,106,499 | $27,106,499 | $36,976,337 | |
| Scholarships and special projects | $94,603,486 | $94,603,486 | $105,974,019 | |
| Distributions to member institutions | $21,029,880 | $21,029,880 | $23,180,395 | |
| Institutional services | $1,565,605 | $1,565,605 | $1,667,454 | |
| Other program services | $931,640 | $931,640 | $210,696 | |
| Total program services | $145,237,110 | $145,237,110 | $168,008,901 | |
| Supporting services: | ||||
| Management and general | $6,742,017 | $6,742,017 | $7,058,357 | |
| Fundraising | $18,677,633 | $18,677,633 | $16,827,758 | |
| Total supporting services | $25,419,650 | $25,419,650 | $23,886,115 | |
| Total expenses | $170,656,760 | $170,656,760 | $191,895,016 | |
| Change in net assets | $2,670,535 | $176,293,840 | $178,964,375 | $30,747,952 |
| Net assets, beginning of year | $48,868,069 | $544,238,342 | $593,106,411 | $562,358,459 |
| Net assets, end of year | $51,538,604 | $720,532,182 | $772,070,786 | $593,106,411 |
Statements of Cash Flow
| Activity | 2023 | 2022 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Change in net assets | $178,964,375 | $30,747,952 |
| Adjustments to reconcile change in net assets to net cash used in operating activities: | ||
| Realized losses on investments | ($1,968,572) | -$6,962,692 |
| Unrealized losses (gains) on investments | $11,942,143 | $685,136 |
| Amortization of investment premium and discount | ($117,351) | $255,792 |
| Bad debt expense | $111,498 | $5,000,250 |
| Depreciation and amortization | $595,651 | $861,838 |
| Contributions restricted for investment in endowment funds | ($4,559,029) | ($25,970,929) |
| (Increase) decrease in assets: | ||
| Pledges receivable | ($157,758,139) | ($8,107,540) |
| Provision for uncollectible | ($4,959,250) | |
| Accrued investment income | ($1,593,542) | $279,586 |
| Other assets | $36,904 | $275,385 |
| Increase (decrease) in liabilities: | ||
| Accounts payable and accrued expenses | $4,170,484 | $4,126,569 |
| Accrued wages, vacation, and other related personnel expenses | $998,006 | $1,473,358 |
| Accrued return of funds to the Gates Foundation | ($10,000,000) | ($8,000,000) |
| Deferred revenue | ($639,674) | ($3,317,167) |
| Accrued distributions to member institutions | ($3,556,066) | $2,325,842 |
| Net cash (used in) provided by operating activities | $16,626,688 | ($11,285,870) |
| Cash flows from investing activities: | ||
| Purchases of investments | ($351,789,056) | ($251,555,153) |
| Proceeds from sales of investments | $234,190,621 | $301,224,515 |
| Purchase of property and equipment | ($3,675,144) | ($848,800) |
| Net cash provided by investing activities | ($121,273,579) | $48,820,562 |
| Cash flows from financing activities: | ||
| Repayments of note payable | ||
| Repayments of bonds payable | ($976,560) | ($943,748) |
| Contributions restricted for investment in endowment funds | $4,559,029 | $25,970,929 |
| Net cash provided by financing activities | $3,582,469 | $25,027,181 |
| (Decrease) Increase in cash and cash equivalents | ($101,064,422) | $62,561,873 |
| Cash and cash equivalents, beginning of year | $144,848,181 | $82,286,308 |
| Cash and cash equivalents, end of year | $43,783,759 | $144,848.181 |
| Cash paid for interest | $943,221 | $976,537 |
Statement of Functional Expenses
| Expense | Management and general | Fundraising | Total supporting services | 2023 Total program service and supporting service expenses | 2022 Total program service and supporting service expenses |
|---|---|---|---|---|---|
| Distributions: | |||||
| Capital and operational support | $21,029,880 | $23,180,395 | |||
| Grants and scholarships | $4,500 | $4,500 | $73,605,890 | $101,167,405 | |
| Total distributions | $4,500 | $4,500 | $94,635,770 | $124,347,800 | |
| Expenses before depreciation, amortization, and bad debts: | |||||
| Salaries and wages | $7,697,278 | $8,146,945 | $15,844,223 | $26,470,547 | $22,646,443 |
| Employee benefits | $1,698,327 | $1,989,642 | $3,687,969 | $6,569,966 | $5,601,479 |
| Advertisements and promotions | $19,741 | $198,364 | $218,105 | $523,809 | $275,660 |
| Professional and consulting fees | $3,880,873 | $1,593,225 | $5,474,098 | $27,705,947 | $23,787,667 |
| Information technology support | -$1,907,071 | $258,014 | -$1,649,057 | -$97,318 | -$174,246 |
| Office supplies and other expenses | $431,583 | $449,070 | $880,653 | $1,435,347 | $1,216,174 |
| Telephone | $370,623 | $19,523 | $390,146 | $412,982 | $428,587 |
| Postage and shipping | $35,744 | $1,648,736 | $1,684,480 | $1,718,632 | $1,508,899 |
| Occupancy | -$614,378 | $838,270 | $223,892 | $1,346,628 | $1,549,704 |
| Printing and publications | $75,912 | $2,977,118 | $3,053,030 | $3,392,969 | $2,859,366 |
| Travel | $309,058 | $366,380 | $675,438 | $2,481,258 | $358,576 |
| Meetings | $54,252 | $116,105 | $170,357 | $2,200,647 | $357,721 |
| Equipment rental and maintenance | $220,303 | $41,241 | $261,544 | $285,704 | $292,563 |
| Interest expense | $943,221 | $943,221 | $943,221 | $976,537 | |
| Indirect cost recovery | -$7,073,600 | -$4,840,935 | |||
| TOTAL EXPENSES BEFORE DEPRECIATION, AMORTIZATION, AND BAD DEBTS | $6,146,366 | $18,642,633 | $24,788,999 | $170,026,109 | $186,032,930 |
| Accrued return of funds to the Gates Foundation | |||||
| Depreciation and amortization expense | $595,651 | $595,651 | $595,651 | $861,838 | |
| Bad debt expense | $35,000 | $35,000 | $35,000 | $500,250 | |
| TOTAL EXPENSES | $6,742,017 | $18,677,633 | $25,419,650 | $170,656,760 | $191,895,018 |