Cambodian Childrens Fund Endowment

What it reported doing in 2025

Investment Policy Investment ObjectiveThe Endowment seeks long-term real capital growth while maintaining a risk profile consistent with its charitable purpose and distribution objectives. Investment StrategyThe Endowment will be invested in a diversified portfolio appropriate for a long-term institutional investor.Long-Term Return AssumptionFor planning purposes, CCFE assumes a target nominal long-term investment return of approximately 9%, net of fees and prior to distributions. This assumption is used solely for long-term planning and does not represent a guarantee of future results.Distribution PolicyNear-Term Distribution Approach (Build Phase)During the current build phase, absent a change in circumstances at CCF, CCFE will make regular but measured distributions given the focus on reinvestment of returns to grow the Endowment. For the 2026 fiscal year, CCFE plans to issue semi-annual distributions totaling $100,000 annually, representing approximately 0.36% of Endowment assets as of December 31, 2025.All distributions are made as unrestricted charitable support to Cambodian Childrens Fund.Rationale for Predominant ReinvestmentCCFE reinvests a substantial portion of annual returns in order to: Progress toward the Endowments long-term target corpus of approximately $100 million.Build capacity to support a significant portion of CCFs operating budget.Provide financial resilience during periods of stress or transition.This reinvestment approach is intentional, mission-driven, and reviewed annually.Transition to Steady-State Distribution PolicyAs the Endowment grows toward its long-term target corpus, CCFE anticipates that it will assume an increasingly significant role in supporting CCFs operations. Over time, the Endowment is intended to have the capacity to support 50% or more of CCFs regular operating budget, subject to Endowment size, investment performance, and Board discretion.Once the Board determines the Endowment has reached sufficient scale, CCFE intends to adopt a steady-state annual spending policy of approximately 35% of a trailing multi-year average market value.Governance and ReviewThe Board is responsible for oversight of investment performance, distribution decisions, and alignment with charitable purpose. This policy will be reviewed at least annually, and the Board will periodically reassess the appropriateness of the Endowments target corpus and distribution policy. CCFE's board of directors consists of three voting members. No donor to CCFE, including Cambodian Children's Fund (CCF) or Cambodia Children's Fund Australia (CCF Australia), has the right to appoint or remove a majority of CCFE's board, and no single donor or its representatives otherwise control the board. The majority of CCFE's board are members of the public who are disinterested from CCFE as well as CCF and CCF Australia. CCFE carefully adheres to its written conflict-of-interest policy when applicable, including regarding distributions to or transactions with CCF or CCF Australia. Investment and distribution decisions are made by the full board acting in its fiduciary capacity to advance CCFE's exempt purpose.

Financial Efficiency

• Mission deployment rate: 0%; rating input score 0
• Program expense ratio: 0%; rating input score 0
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 6 of 7 controls in place; rating input score 86
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Fail
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 99.5%; rating input score 100; 100th percentile among comparable filings
• Total-asset coverage ratio: 2,036.08; rating input score 100; 100th percentile among comparable filings
• Liabilities to assets ratio: 0; rating input score 92; 92nd percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 90; 90th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: -62.7% per year; rating input score 0; 0th percentile among comparable filings
• Asset growth: 20.3% per year; rating input score 100; 84th percentile among comparable filings