The Pittsburgh Foundation

Continued strong growth in foundation asset base

Continued strong growth in foundation asset base

Numbers reflect donor trust and commitment

Gifts to The Pittsburgh Foundation’s individual and family donors’ funds nearly doubled last year, setting a record and opening up the prospect of more robust giving to a broad range of charitable organizations this year.

The leap from $11.6 million to nearly $21.3 million in individual gifts is the latest in a series of record-breaking achievements going back several years that have greatly enhanced the  Foundation’s reputation as a trusted steward of donor funds, as well as a philanthropic force on its own for improving quality of life in Pittsburgh and the surrounding region.

“This very positive year-end report tells us that donors, philanthropic partners and the general public continue to value The Pittsburgh Foundation for its special role as the community’s philanthropy,” said President and CEO Maxwell King. “We take this as a sign of confidence from donors that their experience with us gives them greater power in their giving, and that the Foundation itself has greater credibility in its institutional grant making.”

Also last year, eight donors established funds worth more than $1 million each, while in 2013 four were started with that valuation. Those were among 92 new funds created in 2014, a number second only to the record-setting 105 funds established the year before.

And 2014 was the fifth consecutive year that the Foundation raised over $50 million for existing funds and establishment of new funds. King attributed last year’s increase to an improved economy, especially in the performance of the stock market, and donors taking advantage of the appreciation in securities to enable their charitable giving. “But a lot of credit has to go to the tremendous work of this foundation’s staff in meeting the needs of donors and using resources wisely in meeting needs in the community.”

King said the increases in fundraising come at the same time that Pittsburgh is experiencing a revitalized economy. “What our donors are mindful of in adding to their funds is the reality that there are many groups not sharing in the new prosperity. We in the foundation community know that we must seize opportunities to get the whole community engaged in the momentum of the new Pittsburgh.”   

Yvonne Maher, vice president for Development and Donor Services, pointed to continued growth of the larger funds in the Foundation’s Center for Philanthropy, where donors receive customized services that enable them to be more effective in their charitable giving.

”Many families are choosing our Family Foundation Funds over establishing a private foundation because of the Center, which offers expert guidance in multi-generational philanthropic planning, opportunities to work closely with our experienced program officers, and advice on crafting charitable giving plans that can lead to grant making that is more informed and has greater impact.”

The Foundation also reported growth in the number of participants in its Third Party Manager Program, which offers donors establishing funds of $250,000 or higher the opportunity to continue using their personal financial managers as investment advisors. Last year, nine professionals joined the program, bringing the total to 34 active managers.

One fundraising area experiencing a downturn last year was bequests. Gifts realized from estates were $10.3 million, the lowest in five years. 

But overall, the Foundation continues to build beyond its 2013 record-setting leap to $1 billion in total assets, a financial milestone in its 70-year history. Foundation officials cited continued strong growth in annual fundraising, a record creation of new charitable funds by families and individuals, and results of a disciplined investment strategy.

The Foundation, including its affiliate organizations, ended 2014 with assets of about $1.13 billion, up from its 2013 total assets of $1.07 billion. This is a 40-percent growth compared to the $785 million asset total at the end of 2007 when markets were at their peak prior to the onset of the economic recession.

“2014 was the year in which the U.S. economy demonstrated that it had found its footing,” said Jonathan Brelsford, the Foundation’s vice president for investments. “U.S. financial markets performed well and the country benefited from a healthy investment environment supported by quantitative easing,” Brelsford said, “but most of the world economies did not reflect that.”

In recent years, the Foundation has also developed a new and diversified investment strategy focusing on a portfolio of stocks, bonds and alternative investments that favor equity risk. Last year, investment returns averaged 4.88 percent. Over the past three years, investment returns were 10.15 percent.