Princeton Area Community Foundation Inc

What it reported doing in 2024

The community foundation is an active grantmaker through several grant programs (including greater mercer grants and the fund for women & girls) and grantmaking from donor-advised, designated, nonprofit, and field-of-interest funds. The community foundation's strategic grantmaking program, all kids thrive, was designed to address high rates of chronic absenteeism in local public schools. In 2023, the first phase of the program concluded. We evaluated the program, celebrated its successes, and took steps to begin designing the next phase of the program to help continue to meet the needs of low-income students and their families. Community impact grants support nonprofits working to improve the quality of life for children, families and communities, including nonprofits focusing on food insecurity, mental health, economic development and arts education. We also support giving circles and field of interest funds to engage women and millennials in philanthropy. The community foundation also makes grants from donor-advised, designated, nonprofit and field of interest funds. Its primary focus is central New Jersey, but grants from donor-advised funds are made regionally and nationally as well. Competitive grants address the needs of low-income people in greater mercer county, provide operating support for nonprofits working with low-income people, and provide support for work to build the social capital of the region. In 2015 the board defined social capital as building communities. The community foundation's grantmaking touches many programmatic areas including education, basic services, health, arts & culture, housing, the environment, historic preservation, and animal welfare. Promoting philanthropy and providing education: the community foundation actively engages its donors, grantees, and the professional advisors in the region to encourage charitable giving broadly, and to build over time a community-wide commitment to philanthropy. It sponsors seminars and workshops on topics such as endowment-building, good governance, grant-seeking best practices, risk management, and planned giving. The community foundation positions itself as a resource to the region and regularly responds to requests for information and guidance. The community foundation partners with other organizations such as the council of nj grantmakers, the gift planning council of New Jersey, nj center for nonprofits, and the support center partnership in philanthropy to expand its educational offerings. Outside non-profit groups conduct related workshops on its premises. Staff are available to consult with donors, nonprofits, professional advisors, and community leaders on issues related to gifts, grants, partnerships and collaborations, and effective philanthropy and nonprofit management. It shares its expertise widely as it works to meet its mission to "promote philanthropy to advance the well-being of our communities forever." the community foundation includes many scholarship funds. It grants scholarships and awards through competitive processes to support college study and to honor achievement in the arts, music, and community service. The community foundation's liabilities to assets ratio increases as the community foundation's portfolio of non-profit funds increase. As part of its mission, the community foundation assists local non-profit organizations invest their money. This relationship with local non-profit fundholders is important to our mission and shows as a liability on our financial statements.

Financial Efficiency

• Mission deployment rate: 100%; rating input score 100
• Program expense ratio: 93.5%; rating input score 94
• Fundraising efficiency: $12.77 raised per $1 spent on fundraising; rating input score 45; 45th percentile among comparable filings

Transparency & Controls

• Consistency checks: 94.1%; rating input score 94; 20th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: 96.4%; rating input score 96; 26th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 66th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -76.2%; rating input score 1; 1st percentile among comparable filings
• Total-asset coverage ratio: 7.6; rating input score 89; 89th percentile among comparable filings
• Liabilities to assets ratio: 0.33; rating input score 43; 43rd percentile among comparable filings
• Officer compensation ratio: 4%; rating input score 60; 60th percentile among comparable filings

Growth

• Program expense growth: 8.3% per year; rating input score 100; 63rd percentile among comparable filings
• Revenue growth: 3.7% per year; rating input score 100; 32nd percentile among comparable filings
• Asset growth: 9.9% per year; rating input score 100; 64th percentile among comparable filings