THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidated Financial Statements and Schedules
September 30, 2014 and 2013
(With Independent Auditors’ Report Thereon)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Table of Contents
Page
Independent Auditors’ Report
1
Exhibits
Consolidated Financial Statements:
A
Consolidated Statements of Financial Position
3
B
Consolidated Statements of Activities
4
C
Consolidated Statements of Cash Flows
5
Notes to Consolidated Financial Statements
6
Schedules
Consolidating Financial Statements:
1
Consolidating Statements of Financial Position
31
2
Consolidating Statements of Activities – Unrestricted
33
3
Consolidating Statements of Activities – Temporarily Restricted
35
4
Consolidating Statements of Activities – Permanently Restricted
37
KPMG LLP
Aon Center
Suite 5500
200 East Randolph Drive
Chicago, IL 60601-6436
Independent Auditors’ Report
The Executive Committee
The Chicago Community Trust:
We have audited the accompanying consolidated financial statements of The Chicago Community Trust
(the Trust), which comprise the consolidated statements of financial position as of September 30, 2014 and
2013, and the related consolidated statements of activities and cash flows for the years then ended, and the
related notes to the consolidated financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with U.S. generally accepted accounting principles; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of The Chicago Community Trust as of September 30, 2014 and 2013, and the changes
in its net assets and its cash flows for the years then ended in accordance with U.S. generally accepted
accounting principles.
KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.
Other Matter
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as
a whole. The consolidating information included in schedules 1 through 4 is presented for purposes of
additional analysis and is not a required part of the consolidated financial statements. Such information is
the responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the consolidated financial statements. The information has been subjected to
the auditing procedures applied in the audit of the consolidated financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the consolidated financial statements or to the consolidated financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated in all material respects in relation
to the consolidated financial statements as a whole.
Chicago, Illinois
April 22, 2015
2
Exhibit A
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidated Statements of Financial Position
September 30, 2014 and 2013
Assets
Cash and cash equivalents
Investments (note 4)
Contributions receivable (note 6)
Government grants and contracts receivable
Land, office equipment and leasehold improvements, less
accumulated depreciation and amortization of $4,150,017
and $3,795,633 in 2014 and 2013, respectively
Other assets
Beneficial interest in charitable term trusts (note 2(h))
Beneficial interest in charitable perpetual trusts
Total assets
2014
2013
87,266,399
1,816,650,448
32,045,549
1,517,674
74,920,292
1,652,867,130
20,178,439
1,739,345
3,050,496
1,036,784
307,790,301
41,376,720
2,894,491
824,737
294,089,393
39,498,021
$
2,290,734,371
2,087,011,848
$
4,909,857
481,396
29,768,141
6,098,373
2,929,293
609,605
29,853,954
5,256,819
41,257,767
38,649,671
1,833,725,146
339,063,161
76,688,297
1,661,486,899
314,269,831
72,605,447
2,249,476,604
2,048,362,177
2,290,734,371
2,087,011,848
$
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued expenses
Annuity payable
Grants payable (note 7)
Funds held for others
Total liabilities
Commitments (note 8)
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
$
See accompanying notes to consolidated financial statements.
3
Exhibit B
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidated Statements of Activities
Years ended September 30, 2014 and 2013
2014
2013
50,656,776
11,373,743
1,781,847
108,511,937
890,565
24,830,307
48,375,535
7,886,854
4,915,103
100,461,979
1,400,216
24,095,633
198,045,175
187,135,320
163,616,624
129,618
5,715,628
1,652,229
4,079,261
15,627,709
60,351
150,313,429
3,793,077
3,747,765
925,396
3,554,257
14,292,927
48,681
190,881,420
176,675,532
7,163,755
10,459,788
168,361,127
96,426,546
(188,938)
54,207
(108,511,937)
166,287
8,767,200
187,566,175
153,771,001
(248,326)
(38,553)
(100,461,979)
(25,427)
15,108,409
Net nonoperating activities
165,074,492
255,671,300
Increase in unrestricted net assets before effect of change in accounting principle
172,238,247
266,131,088
Unrestricted activities:
Operating activities:
Support, revenue, and transfers:
Investment payout (note 4)
Contributions
Government grants and contracts revenue
Transfers from nonoperating activities (note 2(e))
Other income
Net assets released from restrictions (note 2(b))
$
Total operating support, revenue, and transfers
Expenses (note 10):
Grants, net of refunds
Government grants and contracts expenses
Program-related expenses (note 9)
Program-related expenses – government grants
Investment management and custodian fees
Administrative expenses (note 10)
Other expenses
Total operating expenses
Excess of operating support, revenue, and transfers over expenses
Nonoperating activities:
Contributions
Net return on investments after investment payout (note 4)
Investment management and custodian fees (note 10)
Change in value of charitable gift annuity and life insurance policy
Transfer to operating activities (note 2(e))
Other income (expenses) (note 10)
Net assets released from restrictions (note 2(b))
Cumulative effect of change in accounting principle (note 2(a))
—
11,416,914
172,238,247
277,548,002
21,063,921
37,326,916
(33,597,507)
12,658,714
25,255,390
(39,204,042)
24,793,330
(1,289,938)
—
1,796,359
Increase in temporarily restricted net assets
24,793,330
506,421
Permanently restricted activities:
Net gain on investments (note 4)
Gain on beneficial interest in charitable perpetual trusts
2,204,151
1,878,699
2,716,228
2,358,171
Increase in unrestricted net assets
Temporarily restricted activities:
Contributions
Gain on beneficial interest in charitable term trusts (note 2(h))
Net assets released from restrictions (note 2(b))
Increase (decrease) in temporarily restricted net assets before effect of change in
accounting principle
Cumulative effect of change in accounting principle (note 2(a))
Increase in permanently restricted net assets
Increase in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to consolidated financial statements.
4
4,082,850
5,074,399
201,114,427
283,128,822
2,048,362,177
1,765,233,355
$ 2,249,476,604
2,048,362,177
Exhibit C
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidated Statements of Cash Flows
Years ended September 30, 2014 and 2013
Cash flows from operating activities:
Increase in net assets, including cumulative effect of change in
accounting principle
Adjustments to reconcile increase in net assets to net cash
provided by operating activities:
Depreciation and amortization
Net gain on investments
Net gain on beneficial interest in charitable trusts
Changes in assets and liabilities:
Contributions receivable
Government grants and contracts receivable
Other assets
Beneficial interest in charitable trusts
Accounts payable and accrued expenses
Annuity payable
Grants payable
Funds held for others
$
Net cash provided by operating activities
Cash flows from investing activities:
Proceeds from sale of investments
Purchase of investments
Capital expenditures
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$
See accompanying notes to consolidated financial statements.
5
2014
2013
201,114,427
283,128,822
354,384
(115,619,970)
(39,205,615)
387,276
(173,258,676)
(27,613,561)
(11,867,110)
221,671
(212,047)
23,626,008
1,980,564
(128,209)
(85,813)
841,554
4,406,928
(129,660)
(221,102)
20,344,040
509,176
(27,236)
(2,619,395)
1,657,726
61,019,844
106,564,338
386,626,718
(434,790,066)
(510,389)
464,862,205
(558,003,692)
(1,788,868)
(48,673,737)
(94,930,355)
12,346,107
11,633,983
74,920,292
63,286,309
87,266,399
74,920,292
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(1)
Description of Organization
The Chicago Community Trust (the Trust) is the Chicago region’s community foundation, established in
1915 to promote, guide, and manage philanthropy for the benefit of the residents of the greater Chicago area.
The mission of the Trust is to lead and inspire philanthropic efforts that measurably improve the quality of
life and the prosperity of the region. Over the years, thousands of individuals and families, businesses, and
corporations have contributed to the Trust’s endowment funds. Today, donors recognizing the importance
of a strong endowment for the community continue to add to these funds with contributions, including
provisions for the Trust in their estate planning. In addition, many donors have established donor-advised
funds to manage their giving during their lifetime. The income from the Trust’s endowments is used to
respond to the current needs of the community and will be used in the future to respond to the ever-changing
needs of the region.
The accompanying consolidated financial statements include all funds held by or created for the benefit of
the Trust and its affiliated organizations.
The Trust and its affiliated organizations are recognized as public charities and have received determination
letters from the Internal Revenue Service indicating that they are exempt from federal income taxes on
related income under Section 501(c)(3) of the Internal Revenue Code of 1986.
(2)
Summary of Significant Accounting Policies
(a)
Basis of Consolidation
The consolidated financial statements include the accounts of the Trust; The Chicago Community
Foundation (the Foundation); The Burridge D. Butler Memorial Trust of Chicago, Illinois (the Butler
Trust); The Lavin Family Supporting Foundation; The S&C Foundation; The Springboard Foundation;
The Pert Foundation; The Lake County Community Foundation; The Community Foundation of Will
County; Revere Community Partners Fund; Metropolis Strategies; The McHenry County Community
Foundation (effective in 2013); and The Glasser and Rosenthal Family Foundation (effective in 2013).
Interorganizational transactions and balances have been eliminated in consolidation.
The Foundation was incorporated in October 1985 for the purpose of providing additional flexibility
to donors with respect to the investment of funds and to broaden the geographic area served.
The Butler Trust was created in 1951 under the provisions of the will of Burridge D. Butler. The net
income of the Butler Trust, together with any accumulations of net income, is to be distributed by the
Trust.
The Lavin Family Supporting Foundation is a not-for-profit organization incorporated in
December 1996 to foster, support, develop, and maintain charitable activities and vital human and
educational services by supporting and furthering the charitable objectives of the Trust.
The S&C Foundation was incorporated in December 1998 as a supporting organization of the Trust
for the purpose of furthering the charitable objectives of the Trust.
6
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The Springboard Foundation was created in November 2001 and is a supporting organization of the
Trust and Foundation to improve the quality of life in Chicago’s economically challenged
neighborhoods by supporting after-school and youth programs at small, not-for-profit organizations
throughout the city.
The Pert Foundation was incorporated in December 2002 and is a supporting organization of the Trust
and Foundation for the purpose of furthering the charitable objectives of the Foundation.
The Lake County Community Foundation was incorporated in September 2005 and is a supporting
organization of the Trust and Foundation to improve the mental, moral, intellectual, and physical
improvement, assistance, and relief of the inhabitants of Lake County, Illinois, by making grants and
otherwise working for the betterment of the quality of life of the inhabitants of Lake County.
The Community Foundation of Will County was incorporated in February 2006 and is a supporting
organization of the Trust and Foundation to improve the mental, moral, intellectual, and physical
improvement, assistance, and relief of the inhabitants of Will County, Illinois, by making grants and
otherwise working for the betterment of the quality of life of the inhabitants of Will County.
Revere Community Partners Fund was incorporated in February 2006 as a supporting organization of
the Trust. The corporation is organized and shall be operated in a manner to foster, support, develop,
and maintain charitable activities, vital human and educational services, and economic development,
by supporting and carrying out the same purposes of the Trust in the residential community located in
Chicago, Illinois, served by Paul Revere Elementary School. The Revere Community Partners Fund
was dissolved on September 30, 2014.
Metropolis Strategies (formerly, Metropolis 2020) became a supporting organization of the Trust on
March 1, 2011. A major goal of Metropolis Strategies is to assist in the advancement of the overall
mission of the Trust by leveraging its expertise and program activities to advance opportunities for
human and economic development, securing conditions for healthy, safe, just, and caring communities
and transforming the region through sustainable development.
The Glasser and Rosenthal Family Foundation was incorporated in October 2011 and is a supporting
organization of the Trust to improve the quality of life in the Chicago area through nurturing
organizations related to education, civic affairs, urban problems, and cultural activities with the end
goal of helping Chicago thrive.
The McHenry County Community Foundation was incorporated in May 2001 and became a supporting
organization of the Trust and Foundation on January 1, 2013, to meet the social, cultural, educational,
and charitable needs throughout McHenry County, Illinois, by making grants and otherwise working
for the betterment of the quality of life of the inhabitants of McHenry County. The net assets of
McHenry County Community Foundation as of January 1, 2013 are reflected as a cumulative effect of
change in accounting principle in the consolidated statement of activities.
7
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The net assets presented below and in the accompanying consolidated statements of financial position
include the net assets (net of eliminations) of the organizations described above as of September 30,
2014 and 2013:
2014
The Chicago Community Trust
The Chicago Community Foundation
The Burridge D. Butler Memorial Trust of Chicago,
Illinois
The Lavin Family Supporting Foundation
The S&C Foundation
The Springboard Foundation
The Pert Foundation
The Lake County Community Foundation
The Community Foundation of Will County
Metropolis Strategies
The Glasser and Rosenthal Family Foundation
The McHenry County Community Foundation
$ 1,249,403,258
865,730,011
35,369,739
17,855,167
25,648,919
620,360
20,575,351
9,711,971
2,493,302
114,510
3,365,700
18,588,316
$ 2,249,476,604
(b)
2013
1,172,593,293
752,583,353
33,081,794
17,557,137
23,237,965
354,883
19,946,079
8,978,121
1,999,068
1,076,743
3,228,255
13,725,486
2,048,362,177
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the United States of
America.
To ensure the observance of limitations and restrictions placed on the use of available resources, the
Trust maintains its accounts in accordance with the principles and practices of fund accounting. Fund
accounting is the procedure by which resources for various purposes are classified for accounting
purposes into funds that are maintained in accordance with activities or objectives of the Trust.
For external reporting purposes, however, the Trust’s consolidated financial statements have been
prepared to focus on the organization as a whole and to follow the reporting requirements of the
Financial Accounting Standards Board (FASB) and the American Institute of Certified Public
Accountants (AICPA) Audit and Accounting Guide for Not-for-Profit Organizations, which requires
that resources be classified for reporting purposes based on the existence or absence of donor-imposed
restrictions. This is accomplished by classification of fund balances into three classes of net assets –
unrestricted, temporarily restricted, and permanently restricted. Descriptions of the three net asset
categories and related activities are as follows:
Unrestricted – Net assets that are not subject to donor-imposed restrictions.
FASB Accounting Standards Codification (ASC) Topic 958, Not-for-Profit Entities (Topic 958), and
its interpretations provide that if the governing body of the organization has the ability to remove a
8
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
donor restriction (i.e., variance power), the contribution should be classified as unrestricted. Under the
Trust’s declaration of trust, the assets are held and invested in a manner similar to endowment funds;
however, the Trust’s Executive Committee has the authority, if it deems it prudent and appropriate, to
expend the entirety of the principal or appreciation. Accordingly, all net assets and related activity
over which the management of the Trust exercises direct control are classified as unrestricted net assets
in the accompanying consolidated financial statements.
In addition, the bylaws of the Foundation include a variance power provision giving the board of
directors the power, whenever any restriction or condition on the distribution of funds becomes, in
effect, unnecessary, undesirable, impractical, or impossible for literal compliance with the terms of
such instrument, to modify any restriction without regard to and freed from any specific restriction,
limitation, or direction contained in such instrument. Accordingly, all net assets and related activity
over which the management of the Foundation exercises direct control are classified as unrestricted
net assets in the accompanying consolidated financial statements.
The Trust and its related organizations solicit a variety of contributions to fund its grants, including
donor-advised funds. Donor-advised funds allow for the donor to recommend distributions to various
trust programs or other charitable organizations approved by the Trust and its related organizations.
Although the donor’s recommendations are generally fulfilled, they are subject to the approval of the
governing board and the variance power described above and are, therefore, classified as unrestricted
net assets.
Temporarily Restricted – Net assets subject to donor-imposed restrictions that will be met either by
actions of the Trust or by the passage of time. Net assets and related activity from term trusts, whereby
the Trust has a beneficial interest in a stream of income over a specified period of time, as well as
contributions receivable restricted to use in future periods, are recorded as temporarily restricted net
assets. These assets are released from their implicit time restriction when cash is collected.
Net assets released from restrictions, as reported in the consolidated statements of activities, were
$33,597,507 and $39,204,042 in fiscal years 2014 and 2013, respectively.
Permanently Restricted – Net assets subject to donor-imposed restrictions to be maintained
permanently. Net assets and related activity from perpetual trusts, whereby the Trust has a beneficial
interest in a stream of income in perpetuity, are recorded as permanently restricted net assets.
FASB Staff Position FAS 117-1 (FAS 117-1), Endowments of Not-for-Profit Organizations: Net Asset
Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of
Institutional Funds Act, and Enhanced Disclosures for All Endowed Funds (included in Topic 958)
provides guidance on the net asset classification of donor-restricted endowment funds for a
not-for-profit organization that is subject to an enacted version of the Uniform Prudent Management
of Institutional Funds Act of 2006 (UPMIFA). The FAS 117-1 also improves disclosures about an
organization’s endowed funds (both donor-restricted endowment funds and board-designated
endowment funds) whether or not the organization is subject to UPMIFA.
9
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The State of Illinois enacted UPMIFA effective June 30, 2009. The Executive Committee has
determined that the majority of the consolidated assets of the unit Trust do not meet the definition of
endowment under UPMIFA. As discussed above, the unit Trust is governed subject to The Declaration
of Trust creating The Chicago Community Trust and the assets of the Trust are held and managed by
Corporate Trustees. In addition, the governing body has determined that the majority of the assets of
the unit Foundation are subject to the bylaws of the Foundation, which contain a variance power
provision that grants the governing board the ability to distribute the principal or corpus of the fund
and thus excludes the assets as endowments as defined under UPMIFA. While the assets of the Trust
and Foundation do not meet the definition of endowment as defined under UPMIFA, the assets, with
the exception of donor-advised funds, function as endowments and are managed by the Trust and
Foundation similar to endowment funds.
(c)
Revenue and Expenses
Revenue is reported as an increase in unrestricted net assets unless use of the related asset is limited
by donor-imposed time or purpose restrictions. Expenses are reported as decreases in unrestricted net
assets. Gains and losses on investments and other assets and liabilities are reported as increases or
decreases in unrestricted net assets unless their use is limited by a donor-imposed time restriction.
Expirations of temporary restrictions on net assets (i.e., the stipulated time period has elapsed or the
cash has been collected) are reported as net assets released from restrictions.
Contributions, including unconditional pledges, are recognized in the period received. Conditional
pledges are not recognized until the conditions on which they depend are substantially met.
Contributions of assets other than cash are recorded at estimated fair value. Contributions to be
received after one year are discounted at an appropriate rate commensurate with the risk involved.
Amortization of discount is recorded as additional contribution revenue.
Grant awards without substantial conditions are recognized in the period in which they are approved
by the governing bodies. Grants to be paid after one year are discounted at an appropriate rate
commensurate with the risk involved. Amortization of the discount is recorded as additional grant
expense. Grants with substantial conditions are not recognized until the conditions on which they
depend are met.
(d)
Endowment Investment and Spending Policies
The Trust and Foundation have adopted investment and spending policies for its assets held as funds
functioning as endowments that seek to provide a total return that will allow the Trust and Foundation
to provide a predictable stream of resources for current operations while maintaining the purchasing
power of the assets. To achieve this investment objective, the Trust and Foundation have adopted a
long-term strategy that invests in cash and short-term investment funds, fixed-income securities
(domestic and international), domestic equities, international equities, hedge funds, absolute return
funds, and other assets. Diversification by asset class, investment style, investment manager, etc. is
employed to avoid undue risk concentration and as a means to enhance total return. The primary
performance objective is to achieve an annualized total rate of return, net of investment fees, that is
equal to or greater than 6% plus inflation over long periods of time.
10
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
In line with the total return policy, the Trust and Foundation have adopted a spending policy that moves
toward distributing annually an amount in the form of an investment payout equal to 4.5% of a moving
12-quarter average of the fair value of the funds functioning as endowments. The payout percentage
is reviewed annually by the board of directors and was 5.0% and 5.25% for the fiscal years ended
September 30, 2014 and 2013, respectively. Effective October 1, 2012 (FY 2013), the Trust adopted a
long-term spending rate of 4.5% (reduced from 5.5%) of a moving 12-quarter average of the fair value
of the funds functioning as endowments. In conjunction with this change, the Trust has also adopted a
short-term transitional spending policy of constant-based spending (based on spending levels during
the year of adoption with a spending collar of no less than 4% and no more than 6% of the asset value).
The constant-based spending model will be used until the Trust is able to achieve the long-term goal
of 4.5%. The constant-based spending methodology will be reviewed on an annual basis.
All funds of the Trust and Foundation, exclusive of donor-advised funds that are not managed similar
to endowment funds and funds that are prohibited because of the gift instrument, are subject to the
spending policy.
If investment income received is not sufficient to support the total return objective, the balance is
provided from accumulated capital gains. If income received is in excess of the objective, the balance
is reinvested in the endowment.
(e)
Operations
Operating results in the consolidated statements of activities reflect all transactions increasing or
decreasing net assets except those items of a long-term capital nature (classified as nonoperating
activities), such as contributions of principal assets, donor-advised funds, and reinvested investment
income, and gains and losses on investments. Transfers from nonoperating activities to operating
activities represent dollars that are transferred to match grants that have been committed from funds
previously classified as nonoperating. The transfers are primarily from donor-advised funds.
(f)
Cash Equivalents
Cash equivalents include amounts held in certificates of deposit and money market accounts with
original maturities of three months or less, except for such instruments included within the investment
portfolio.
(g)
Investments
Investments are recorded in the consolidated financial statements at estimated fair value. The estimated
fair value of investments is based on quoted market prices, except for certain alternative investments
such as hedge funds and absolute return funds, for which quoted market prices may not be available.
Investments for which observable market prices in active markets do not exist are reported at fair value
based on net asset values provided by the external managers and represented approximately 11% and
10% of the total investments at September 30, 2014 and 2013, respectively.
The valuations for these alternative investments involve estimates, appraisals, and assumptions. To
minimize the risk of loss, alternative investments are diversified by strategy, external manager, and
11
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
number of positions. In addition, the activities of all alternative fund managers are regularly reviewed
by their independent auditors, Trust staff, and the Trust’s outside investment consultant.
See note 4 for further discussion relating to the classification of the Trust’s assets based on the
three-tier fair value hierarchy.
(h)
Legacies, Bequests, and Beneficial Interest in Trusts
The Trust is a beneficiary under various wills, the total realizable value of which is not presently
determinable. Such amounts are recorded as contributions when clear title is established and the
proceeds are clearly measurable. In the absence of donor-imposed conditions, the Trust recognizes its
beneficial interest in a trust as a contribution in the period in which it receives notice that the trust
agreement conveys an unconditional right to receive benefits.
The Trust is also the income beneficiary under various charitable term and perpetual trusts, the corpus
of which is not controlled by the management of the Trust. Although the Trust has no control over the
administration or investment of the funds held in the charitable term trusts, in accordance with
generally accepted accounting principles, the current fair value of the beneficial interest in various
charitable term trusts is recognized as an asset in the accompanying consolidated financial statements.
The beneficial interest in various charitable term trusts at September 30, 2014 and 2013 is reflected in
the accompanying consolidated financial statements as $307,790,301 and $294,089,393, respectively.
During 2014 and 2013, the beneficial interest in various term trusts increased by $37,326,916 and
$25,255,390, respectively.
In determining the fair value of The Chicago Community Trust’s beneficial interest in the various
charitable term trusts, the assumed discount rates used in the present value calculations ranged from
3.21% to 9.95% and from 3.69% to 10.39% at September 30, 2014 and 2013, respectively, and the
average discount rate was 9.68% and 10.05% at September 30, 2014 and 2013, respectively. Assumed
investment returns for the various charitable term trusts that provide payouts based upon the fair value
of assets over the life of the trusts range from 9.13% to 9.95% and from 8.88% to 10.39% at
September 30, 2014 and 2013, respectively. The fair value of these computations resulted in estimated
present values of $305,990,643 and $292,249,793 at September 30, 2014 and 2013, respectively. The
value reflected on the consolidated statements of financial position at September 30, 2014 and 2013 is
the lower of the expected future cash flows or the current fair value of the underlying assets.
In addition, one of the Trust’s affiliates is a beneficiary of three charitable remainder unit trusts, for
which the affiliate will receive 50% of the income until September 2048. At that time, the proceeds of
50% of the market value of the unit trusts will be distributed to the affiliate. The value of the affiliate’s
portion of the charitable remainder unit trusts is $1,799,658 and $1,839,600 at September 30, 2014
and 2013, respectively.
The Trust received distributions from various term trusts of $23,626,008 and $22,140,399 in 2014 and
2013, respectively, which are reported in the net assets released from restriction financial statement
caption.
12
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
In addition to the charitable term trusts noted above, the Trust is also the beneficiary of several
charitable perpetual trusts. The beneficial interest in the charitable perpetual trusts is reflected in the
consolidated financial statements at the fair value of the underlying assets. The beneficial interest in
charitable perpetual trusts at September 30, 2014 and 2013 was $41,376,720 and $39,498,021,
respectively. The Trust received distributions from various charitable perpetual trusts of $1,531,910
and $1,349,500 in 2014 and 2013, respectively, which are reported in the investment payout financial
statement caption.
(i)
Fixed Assets
Office equipment and leasehold improvements are stated at cost. Depreciation of equipment is
provided over the estimated useful lives of the respective assets on a straight-line basis. Depreciation
expense was $295,470 and $334,544 in 2014 and 2013, respectively. Leasehold improvements are
amortized on a straight-line basis over the term of the leases. Amortization expense was $58,914 and
$52,732 in 2014 and 2013, respectively.
(j)
Use of Estimates
In order to prepare these consolidated financial statements in conformity with U.S. generally accepted
accounting principles, management of the Trust has made a number of estimates and assumptions
related to the reporting of assets, including investments in hedge funds, absolute return funds, term
and perpetual trusts, liabilities, and the disclosure of contingent assets and liabilities at the date of the
financial statements, and the reporting of revenue, expenses, gains, and losses during the reporting
period. Actual results could differ from the amounts reflected in the consolidated financial statements
and the differences could be material.
The Trust invests in, and is the beneficiary of, several term and perpetual trusts, which are invested in
various investment securities. Investment securities are exposed to various risks such as interest rate,
market, and credit risk. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investment securities will occur and that such changes
could materially affect the amounts reported in the consolidated statements of financial position.
(k)
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year
presentation.
(3)
Income Taxes
The Trust and its affiliates received tax determination letters from the Internal Revenue Service indicating
that they are tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code and, except for
taxes pertaining to unrelated business income, are exempt from federal and state income taxes. No provision
has been made for income taxes in the accompanying consolidated financial statements as the Trust has had
no significant unrelated business income.
13
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The Trust accounts for uncertain tax positions in accordance with FASB Interpretation No. 48, Accounting
for Uncertainty in Income Taxes (included in FASB ASC Subtopic 740-10, Income Taxes – Overall). There
is no impact on the consolidated financial statements as a result of this pronouncement as the Trust has no
significant uncertain tax positions.
(4)
Investments
The fair value of investments held at September 30, 2014 and 2013 is as follows:
2014
Short-term investment funds
Fixed income – domestic
Fixed income – international
Domestic equities
International equities
Hedge funds
Absolute return funds
Real estate
Other
2013
$
94,606,300
302,842,844
33,431,912
864,236,465
293,281,787
123,974,844
65,792,699
926,480
37,557,117
67,665,134
301,753,782
35,641,174
798,769,638
242,337,693
112,038,466
56,229,691
780,203
37,651,349
$
1,816,650,448
1,652,867,130
FASB ASC Topic 820, Fair Value Measurement (Topic 820), defines fair value, establishes a framework
for measuring fair value, and expands disclosures about fair value instruments. In accordance with
ASC Topic 820, fair value is defined as the price that the Trust would receive upon selling an investment in
an orderly transaction to an independent buyer in the principal or most advantageous market of the
investment. ASC Topic 820 also prioritizes, within the measurement of fair value, the use of market-based
information over entity-specific information. ASC Topic 820 establishes a three-tier hierarchy to maximize
the use of observable market data and minimize the use of unobservable inputs, and to establish classification
of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market
participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be
observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants
would use in pricing the asset or liability developed based on market data obtained from sources independent
of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions
about the assumptions market participants would use in pricing the asset or liability developed based on the
best information available. The three-tier hierarchy of inputs is summarized in the three broad levels listed
below:

Level 1 – Quoted prices in active markets for identical investments. Quoted prices are available in
active markets for identical investments as of the reporting date. The types of investments in Level 1
include listed equities held in the name of the Trust, and exclude listed equities and other securities
held indirectly through commingled funds.

Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.). Pricing inputs, including broker quotes, are generally those
14
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
other than exchange quoted prices in active markets, which are either directly or indirectly observable
as of the reporting date, and fair value is determined through the use of models or other valuation
methodologies.

Level 3 – Significant unobservable inputs (including the Trust’s own assumptions in determining the
fair value of investments). Pricing inputs are unobservable for the investment and include situations
where there is little, if any, market activity for the investment. The inputs into the determination of
fair value require significant management judgment or estimation.
15
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
ASC Topic 820 permits, as a practical expedient, the Trust to measure the fair value of an investment that is
within the scope of the amendments on the basis of the net asset value per share of the investment or its
equivalent determined as of September 30, 2014, the Trust’s measurement date. Under this approach, certain
attributes of the investment such as restrictions on redemption and transaction prices from
principal-to-principal or brokered transactions are not considered in measuring the fair value of an
investment. The following table summarizes the Trust’s investments and other assets by major category in
the fair value hierarchy as of September 30, 2014, as well as the related strategy and liquidity:
2014
Level 1
Cash and cash equivalents:
Cash and cash equivalents
Level 2
Level 3
Total
Redemption
or liquidation
Days’ notice
Daily
One
Daily
One
Daily
Daily
Daily
Illiquid (4)
Daily
Monthly
One
One
One
N/A
One
One
Daily
Daily
Monthly
One
One
5–10
Daily
Daily
Monthly
One
One
6
87,266,399
—
—
87,266,399
87,266,399
—
—
87,266,399
94,606,300
—
—
94,606,300
94,606,300
—
—
94,606,300
42,422,828
—
199,837,270
—
8,468,992
—
—
51,485,643
—
—
—
403,111
—
—
—
225,000
—
—
42,422,828
51,485,643
199,837,270
225,000
8,468,992
403,111
Total
250,729,090
51,888,754
225,000
302,842,844
Fixed income – international:
International bonds
International fixed income funds
International fixed income funds
—
12,316,259
—
17,772,272
—
3,343,381
—
—
—
17,772,272
12,316,259
3,343,381
Total
12,316,259
21,115,653
—
33,431,912
732,498,046
83,548,119
—
—
—
48,190,300
—
—
—
732,498,046
83,548,119
48,190,300
816,046,165
48,190,300
—
864,236,465
Total
Short-term investment funds:
Short-term investment funds
Total
Fixed income – domestic:
U.S. Treasuries and agency fixed
income (includes funds)
U.S. corporate fixed income
U.S. corporate fixed income funds
U.S. fixed income funds
Common trust funds
Common trust funds
Domestic equities:
Domestic equities and funds
Common trust funds
Common trust funds
Total
$
16
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
2014
International equities:
International equities
International equities
International equities
International equities
Common trust funds
Common trust funds
Total
Hedge funds:
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Total
Absolute return:
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Total
Real estate:
Real estate property
Total
Other:
Commodity funds
Private equities
Private equities
Limited partnership
Total
Total – all investments
Other assets:
Beneficial interest in charitable term
trusts
Beneficial interest in charitable
perpetual trusts
Total – other assets
Total – all assets
Total
Redemption
or liquidation
Days’ notice
—
—
—
—
—
—
227,672,821
1,003,860
9,980,275
28,158,203
10,260,799
16,205,829
Daily
Daily
Semi-monthly
Monthly
Daily
Monthly
One
28
5
5-30
One
6
55,348,167
—
293,281,787
12,716,065
—
—
—
—
—
—
—
—
527,207
70,841,702
—
—
—
—
—
—
—
—
6,598,672
979,129
17,822,496
7,800,760
6,688,813
12,716,065
527,207
70,841,702
6,598,672
979,129
17,822,496
7,800,760
6,688,813
Daily
Monthly (1)
Quarterly (1)
Quarterly (3)
Quarterly (7)
Quarterly (5)
Semi-annual (1)
Annual (1)
One
30
30-90
45-90
45
65
45
45/60/95
12,716,065
71,368,909
39,889,870
123,974,844
515,273
—
—
—
—
—
—
13,869,397
—
—
—
—
—
—
22,531,532
2,062,198
1,024,744
25,789,555
515,273
13,869,397
22,531,532
2,062,198
1,024,744
25,789,555
Daily
Quarterly (1)
Quarterly (2)
Quarterly (3)
Quarterly (7)
Annual (1)
One
30-90
60-70
45-90
65
45
515,273
13,869,397
51,408,029
65,792,699
—
—
926,480
926,480
Illiquid
N/A
—
—
926,480
926,480
13,513,422
—
—
—
—
—
—
—
—
285,676
9,283,718
14,474,301
13,513,422
285,676
9,283,718
14,474,301
Daily
Illiquid (4)
Illiquid (8)
Illiquid (4)
One
N/A
N/A
N/A
13,513,422
—
24,043,695
37,557,117
261,781,180
116,493,074
1,816,650,448
—
—
307,790,301
307,790,301
Illiquid (6)
N/A
—
—
41,376,720
41,376,720
Illiquid (6)
N/A
—
—
349,167,021
349,167,021
261,781,180
465,660,095
2,253,083,868
Level 1
Level 2
227,672,821
—
—
—
10,260,799
—
—
1,003,860
9,980,275
28,158,203
—
16,205,829
237,933,620
1,438,376,194
$ 1,525,642,593
17
Level 3
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(1)
As of September 30, 2014, 90% of the investments in this category have passed their initial lock-up
period.
(2)
As of September 30, 2014, the investments in this category have passed their initial lock-up period;
however, the investments in this category include terms that make full liquidity unavailable at the
Foundation’s report date.
(3)
As of September 30, 2014, the investments in this category have not passed their initial lock-up period.
Once the lock-up period has expired, 90% of the investment will be available to be liquidated.
(4)
These funds are expected to liquidate in approximately 3–7 years.
(5)
As of September 30, 2014, the investments in this category have passed their initial lock-up period.
Funds may be redeemed quarterly subject to the approval of the Directors of the Fund.
(6)
Refer to note 2(h) for explanation of the beneficial interest in charitable trusts.
(7)
As of September 30, 2014, the investments in this category have not passed their initial lock up period.
Once the initial lock up period has expired, funds may be redeemed quarterly subject to the approval
of the Directors of the Fund.
(8)
Represents ownership of stock in a private company.
Investments in the hedge fund asset class are primarily invested in the long-short equities strategy.
Long-short equity hedge funds have greater flexibility to adjust their investment strategy by style (growth
versus value), market capitalization (large cap, mid cap, and small cap), and geographically (domestic versus
developed international versus emerging markets). In addition, these strategies are not constrained by sector
and market cap biases of a market index and have the ability to adjust their long and short exposures over
time. The geographic focus of these strategies is approximately 73% invested in the United States, 16% in
developed international, and 11% in emerging markets.
Investments in the absolute return fund asset class allow for investment flexibility to invest across the capital
structure of businesses where investment returns are generated through mispricing of assets or events that
will result in the convergence of valuations and not primarily by market direction. Strategies that could be
included in this asset class include merger arbitrage, distressed debt/credit, convertible arbitrage, and equity
restructuring. The geographic focus of these strategies is primarily in the United States with some global
exposure.
18
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The following table summarizes the Trust’s investments and other assets by major category in the fair value
hierarchy as of September 30, 2013, as well as the related strategy and liquidity:
2013
Level 1
Cash and cash equivalents:
Cash and cash equivalents
Level 2
Level 3
Total
Redemption
or liquidation
Days’ notice
Daily
One
Daily
One
Daily
Daily
Daily
Illiquid (4)
Daily
Monthly
One
One
One
N/A
One
One
Daily
Daily
Monthly
One
One
5–10
Daily
Daily
Monthly
One
One
6
Daily
Semi-monthly
Monthly
Daily
Monthly
One
5
5–30
One
6
74,920,292
—
—
74,920,292
74,920,292
—
—
74,920,292
67,665,134
—
—
67,665,134
67,665,134
—
—
67,665,134
33,559,383
—
179,419,079
—
11,345,247
—
—
76,831,329
—
—
—
373,744
—
—
—
225,000
—
—
33,559,383
76,831,329
179,419,079
225,000
11,345,247
373,744
224,323,709
77,205,073
225,000
301,753,782
Fixed income – international:
International bonds
International fixed income funds
International fixed income funds
—
6,776,723
—
24,835,680
—
4,028,771
—
—
—
24,835,680
6,776,723
4,028,771
Total
6,776,723
28,864,451
—
35,641,174
667,023,839
77,909,967
—
—
—
53,835,832
—
—
—
667,023,839
77,909,967
53,835,832
744,933,806
53,835,832
—
798,769,638
191,216,329
—
—
9,274,489
—
—
9,695,548
20,611,720
—
11,539,607
—
—
—
—
—
191,216,329
9,695,548
20,611,720
9,274,489
11,539,607
200,490,818
41,846,875
—
242,337,693
Total
Short-term investment funds:
Short-term investment funds
Total
Fixed income – domestic:
U.S. Treasuries and agency fixed
income (includes funds)
U.S. corporate fixed income
U.S. corporate fixed income funds
U.S. fixed income funds
Common trust funds
Common trust funds
Total
Domestic equities:
Domestic equities and funds
Common trust funds
Common trust funds
Total
International equities:
International equities
International equities
International equities
Common trust funds
Common trust funds
Total
$
19
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
2013
Hedge funds:
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Multiple strategies
Total
Absolute return:
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Absolute return/multiple strategies
Total
Real estate:
Real estate property
Total
Other:
Commodity funds
Private equities
Limited partnership
Total
Total – all investments
Other assets:
Beneficial interest in charitable term
trusts
Beneficial interest in charitable
perpetual trusts
Total – other assets
Total – all assets
Level 1
Level 2
Level 3
Total
Redemption
or liquidation
Days’ notice
16,687,479
—
—
—
—
—
—
—
64,951,737
—
—
—
—
—
—
—
3,175,515
149,309
15,747,127
2,949,068
8,378,231
16,687,479
64,951,737
3,175,515
149,309
15,747,127
2,949,068
8,378,231
Daily
Quarterly (1)
Quarterly (3)
Illiquid (7)
Quarterly (5)
Semi-annual (1)
Annual (1)
One
30–90
45–60
N/A
65
45
45/60/95
16,687,479
64,951,737
30,399,250
112,038,466
858,603
—
—
—
—
11,850,802
—
—
—
—
19,255,473
24,264,813
858,603
11,850,802
19,255,473
24,264,813
Daily
Quarterly (1)
Quarterly (2)
Annual (1)
One
30
60
45
858,603
11,850,802
43,520,286
56,229,691
—
—
780,203
780,203
Illiquid
N/A
—
—
780,203
780,203
15,424,408
—
—
—
—
—
—
318,479
21,908,462
15,424,408
318,479
21,908,462
Daily
Illiquid (4)
Illiquid (4)
One
N/A
N/A
15,424,408
—
22,226,941
37,651,349
278,554,770
97,151,680
1,652,867,130
—
—
294,089,393
294,089,393
Illiquid (6)
N/A
—
—
39,498,021
39,498,021
Illiquid (6)
N/A
—
—
333,587,414
333,587,414
278,554,770
430,739,094
2,061,374,836
1,277,160,680
$ 1,352,080,972
(1)
As of September 30, 2013, 90% of the investments in this category have passed their initial lock-up
period.
(2)
As of September 30, 2013, the investments in this category have passed their initial lock-up period;
however, the investments in this category include terms that make full liquidity unavailable at the
Trust’s report date.
20
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(3)
As of September 30, 2013, the investments in this category have not passed their initial lock-up period.
Once the lock-up period has expired, 90% of the investment will be available to be liquidated.
(4)
These funds are expected to liquidate in approximately 3–7 years.
(5)
As of September 30, 2013, the investments in this category have passed their initial lock-up period.
Funds may be redeemed quarterly subject to the approval of the Directors of the Fund.
(6)
Refer to note 2(h) for explanation of the beneficial interest in charitable trusts.
(7)
The Board will determine when it will offer to repurchase interests (or portion of interests).
Investments in the hedge fund asset class are primarily invested in the long-short equities strategy.
Long-short equity hedge funds have greater flexibility to adjust their investment strategy by style (growth
versus value), market capitalization (large cap, mid cap, and small cap), and geographically (domestic versus
developed international versus emerging markets). In addition, these strategies are not constrained by sector
and market cap biases of a market index and have the ability to adjust their long and short exposures over
time. The geographic focus of these strategies is approximately 76% invested in the United States, 14% in
developed international, and 10% in emerging markets.
Investments in the absolute return fund asset class allow for investment flexibility to invest across the capital
structure of businesses where investment returns are generated through mispricing of assets or events that
will result in the convergence of valuations and not primarily by market direction. Strategies that could be
included in this asset class include merger arbitrage, distressed debt/credit, convertible arbitrage, and equity
restructuring. The geographic focus of these strategies is primarily in the United States with some global
exposure.
Aggregate investment liquidity as of September 30, 2014 is presented below based on redemption or sale
period:
Investment
fair values
Investment redemption or sale period:
Daily
Weekly
Semimonthly
Monthly
Quarterly
Semiannual
Annual
Illiquid
Total as of
September 30, 2014
21
$
1,508,637,969
—
9,980,275
96,828,031
135,729,870
7,800,760
32,478,368
25,195,175
$
1,816,650,448
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
Private equity and venture capital investments are generally made through limited partnerships. Under the
terms of these agreements, the Trust is obligated to remit additional funding periodically as capital or
liquidity calls are exercised by the manager. These partnerships have a limited existence and, under such
agreements, may provide for annual extensions for the purpose of disposing portfolio positions and returning
capital to investors. However, depending on market conditions, the inability to execute the fund’s strategy,
and other factors, a manager may extend the terms of a fund beyond its originally anticipated existence or
may wind the fund down prematurely. The Trust cannot anticipate such changes because they are based on
unforeseen events, but should they occur, they might result in less liquidity or return from the investment
than originally anticipated. As a result, the timing and amount of future capital or liquidity calls in any
particular future year are uncertain.
The following table presents the Trust’s activity for the fiscal year ended September 30, 2014 for investments
and other assets measured at fair value on a recurring basis classified in Level 3:
Fixed income
domestic
Hedge funds
Investments
Absolute
return funds
Real estate
Other
Beneficial
interest in
charitable
trusts
Consolidated
total
Balance at September 30, 2013
$
Transfers to Level 2
Total net realized gains
Total net unrealized gains (losses)
Gain on beneficial interest in
charitable trusts
Purchases, issuances, and
settlements
Proceeds from sales,
redemptions, and distributions
225,000
—
—
—
30,399,250
(3,715,731)
517,685
224,785
43,520,286
—
181
3,884,957
780,203
—
—
146,277
22,226,941
—
14,557,655
(1,654,915)
333,587,414
—
—
—
430,739,094
(3,715,731)
15,075,521
2,601,104
—
—
—
—
—
39,205,615
39,205,615
—
14,964,094
4,010,776
—
2,703,335
—
21,678,205
—
(2,500,213)
(8,171)
—
(13,789,321)
(23,626,008)
(39,923,713)
Balance at September 30, 2014
225,000
39,889,870
51,408,029
926,480
24,043,695
349,167,021
465,660,095
$
22
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
The following table presents the Trust’s activity for the fiscal year ended September 30, 2013 for investments
and other assets measured at fair value on a recurring basis classified in Level 3:
Fixed income
domestic
Balance at September 30, 2012
$
Transfers to Level 2
Total net realized gains
Total net unrealized gains (losses)
Gain on beneficial interest in
charitable trusts
Purchases, issuances, and
settlements
Cumulative effect of change
in accounting principle
Proceeds from sales,
redemptions, and distributions
Balance at September 30, 2013
$
—
—
—
—
Hedge funds
Investments
Absolute
return funds
Real estate
38,740,383
(15,265,205)
7,163
3,758,780
39,407,902
—
—
4,148,207
780,203
—
—
—
Other
Beneficial
interest in
charitable
trusts
Consolidated
total
32,079,862
—
21,978,663
(3,645,777)
326,317,893
—
—
—
437,326,243
(15,265,205)
21,985,826
4,261,210
—
—
—
—
—
27,613,561
27,613,561
225,000
8,205,852
—
—
247,494
—
8,678,346
—
—
—
—
—
1,796,359
1,796,359
—
(5,047,723)
(35,823)
—
(28,433,301)
(22,140,399)
(55,657,246)
225,000
30,399,250
43,520,286
780,203
22,226,941
333,587,414
430,739,094
During fiscal years 2014 and 2013, there were no transfers between investment Level 1 and 2 which are
considered material to the financial statements. During fiscal years 2014 and 2013, transfers occurred
between investment Levels 2 and 3 as a result of the lock-up period expiring for these investments.
Return on investments for the years ended September 30, 2014 and 2013 consists of the following (does not
include beneficial interest in charitable trusts):
Investment return:
Investment income
Net realized gain on sale of investments
Unrealized gain on investments
$
Total return on investments
Investment payout
Net return on investments after investment
payout (includes permanently restricted net
gain on investments)
23
$
2014
2013
33,667,503
66,026,208
49,593,762
31,604,088
72,110,367
101,148,309
149,287,473
204,862,764
(50,656,776)
(48,375,535)
98,630,697
156,487,229
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(5)
Funds Functioning as Endowments
Changes in the fair value of the funds functioning as endowments (quasi-endowments) for the fiscal years
ended September 30, 2014 and 2013 are as follows:
2014
Quasi-endowment net assets, beginning of year
$ 1,023,887,310
918,243,017
21,820,030
21,146,648
83,185,676
(40,064,573)
3,442,988
6,120,652
21,146,426
94,928,317
(39,079,720)
22,528,618
89,530,769
105,644,293
$ 1,113,418,079
1,023,887,310
Contributions
Interest and dividends
Net realized/unrealized gain
Amounts appropriated for expenditure
Reclassifications and transfers
Change in quasi-endowment net assets
Quasi-endowment net assets, end of year
(6)
2013
Contributions Receivable
At September 30, 2014, outstanding pledges (net of discount) consist of unconditional promises of
$32,045,549. Contributions receivable are expected to be collected as follows:
Year ending September 30:
2015
2016
2017
2018
2019 and beyond
$
12,728,407
7,903,800
6,446,200
4,624,280
386,000
32,088,687
Less discount
(43,138)
$
24
32,045,549
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(7)
Grants Payable
Grants were approved by the governing bodies of the following organizations as of September 30, 2014 and
2013; however, the grants were not due for payment until after that date:
The Chicago Community Trust
The Chicago Community Foundation
The Lavin Family Supporting Foundation
The S&C Foundation
The Lake County Community Foundation
The McHenry County Community Foundation
2014
2013
$
23,257,441
4,208,300
2,000,000
100,000
130,000
72,400
22,714,949
2,035,171
4,250,000
716,334
137,500
—
$
29,768,141
29,853,954
These approved grants as of September 30, 2014 are expected to be paid as follows:
Year ending September 30:
2015
2016
2017
25
$
27,183,141
2,575,000
10,000
$
29,768,141
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(8)
Commitments
(a)
Leases
The Trust entered into various lease agreements (includes amendments for expansion of office space),
under an operating lease, which expires in 2027 for a space located at 225 North Michigan Avenue in
Chicago, Illinois. The minimum lease payments will be abated for the first 14 to 18 months of the
various leases and will not be payable by the Trust unless the Trust defaults by failing to make timely
lease payments. The amount abated is $728,191. The following is a schedule by years of future
minimum lease payments, net of the abatement, required under these operating leases that have initial
or remaining noncancelable lease terms as of September 30, 2014:
Year ending September 30:
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Total minimum
payments required
$
405,487
514,025
567,350
585,172
602,995
620,817
638,640
656,462
674,285
692,107
709,930
727,752
493,087
$
7,888,109
The Trust’s affiliates also entered into various lease agreements for office space as reflected on the
following schedule as of September 30, 2014:
Year ending September 30:
2015
2016
2017
Total minimum
payments required
$
35,435
16,200
12,150
$
63,785
Total rental expense for all operating leases was $1,019,970 and $930,179 in fiscal years 2014 and
2013, respectively, which are reported in the administrative expenses financial statement caption.
There were no contingent or sublease rentals.
26
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(b)
Guarantees
On July 17, 2003, the Trust executed a guaranty to secure a line of credit of $750,000 on behalf of one
of its grantees, toward the purchase and renovation of a new building. At September 30, 2014 and
2013, no amounts have been drawn on the guarantee. The guarantee expires on July 1, 2033.
On November 30, 2012, the Trust executed a guaranty on behalf of one of its grantees for up to
$562,500 (75% of $750,000) to secure a promissory note of $750,000 that has a maturity date of
November 29, 2017.
(9)
Program-Related Expenses
Program-related expenses include expenses paid on behalf of a third-party beneficiary in lieu of a grant
award to the beneficiary. In addition, program-related expenses include costs associated with staff and other
related expenses incurred by Operating Funder Collaborative Accounts and affiliated organizations of the
Trust.
27
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
(10) Expenses by Functional Expense Classification
The Trust’s mission is to promote, guide, and manage philanthropy for the benefit of the residents of the
greater Chicago area. Our grant making is a significant undertaking towards accomplishing our mission.
Administrative expenses included under program are incurred in support of direct program activities. The
Trust’s expenses by functional classification for the year ended September 30, 2014 are as follows:
Program
Grants
$
Government grants and contracts
expenses
Program-related expenses
Program-related expenses –
government grants
Investment management and
custodian fees
Other expenses
Administrative expenses:
Salaries and benefits
Professional fees
Meetings and travel
Occupancy, utilities, and
insurance
Depreciation and amortization
Printing and publications
Other expenses
Total administrative
expenses
2013
Total
—
—
163,616,624
150,313,429
129,618
5,715,628
—
—
—
—
129,618
5,715,628
3,793,077
3,747,765
1,652,229
—
—
1,652,229
925,396
—
—
4,268,199
60,351
—
—
4,268,199
60,351
3,802,583
74,108
4,589,812
613,170
187,996
1,946,664
2,211,633
173,292
2,006,263
326,110
101,289
8,542,739
3,150,913
462,577
8,234,949
2,233,849
555,307
626,419
182,291
218,985
376,715
257,190
90,082
97,238
959,426
275,128
82,010
120,595
185,401
1,158,737
354,383
436,818
1,521,542
1,079,344
387,276
325,644
1,476,558
6,795,388
5,735,525
3,096,796
15,627,709
14,292,927
43.5%
$
Total
163,616,624
Percentage of administrative
expenses
Total expenses
2014
Management
and general
Fund-raising
177,909,487
Percentage of total expenses
36.7%
10,064,075
93.1%
5.3%
19.8%
3,096,796
1.6%
100.0%
191,070,358
100.0%
100.0%
176,949,285
100.0%
The Trust’s expenses by functional classification for the year ended September 30, 2013 are as follows:
Program
Total expenses
Percentage of total expenses
$
165,651,341
93.6%
28
2013
Management
and general
Fund-raising
8,477,656
4.8%
2,820,288
1.6%
Total
176,949,285
100.0%
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
For fiscal years 2014 and 2013, nonoperating investment management and custodian fees of $188,938 and
$248,326, respectively, are reported in the consolidated statements of activities and are included in the above
analysis. For fiscal year 2013, nonoperating other expenses of $25,427 are reported in the consolidated
statements of activities and are included in the above analysis.
(11) Retirement Plans
The Trust has a 401(k) plan. Eligible employees include full-time and part-time employees who are at least
21 years of age and have at least one year of service with the Trust. Employees are 100% vested upon the
attainment of normal retirement age, or if earlier, upon the completion of three years of vesting service. The
Trust has the sole discretionary right to determine the amount of the employer contribution for a plan year.
For the fiscal years ended September 30, 2014 and 2013, the Trust contribution was 4.5% of eligible
compensation.
In addition, the Trust has a 401(k) plan, which provides employees an incentive to contribute a portion of
their salaries into a tax-deferred investment account. The elective contributions by the employee can be made
immediately upon employment. After one year of service, the Trust provides an employer matching
contribution to the 401(k) plan equal to 100% of the employee’s elective contribution up to 4% of eligible
compensation.
Total retirement benefit costs for the years ended September 30, 2014 and 2013 were approximately
$401,000 and $377,400, respectively.
(12) Transactions with Affiliates
During the years ended September 30, 2014 and 2013, the Trust approved grant awards totaling $4,787,784
and $4,053,982, respectively, to the Foundation.
During the years ended September 30, 2014 and 2013, the Foundation approved grant awards totaling
$1,469,636 and $1,261,216, respectively, to the Trust.
During the years ended September 30, 2014 and 2013, the Trust received grants totaling $435,000 and
$332,000, respectively, from the Butler Trust.
During the years ended September 30, 2014 and 2013, the Foundation approved grant awards totaling
$43,000 and $51,250, respectively, to The Springboard Foundation.
During the years ended September 30, 2014 and 2013, the Trust approved grant awards totaling $275,468
and $275,200, respectively, to The Lake County Community Foundation.
During the years ended September 30, 2014 and 2013, The Pert Foundation approved grant awards totaling
$100,000 and $25,000, respectively, to the Trust.
During the years ended September 30, 2014 and 2013, the Foundation approved grant awards totaling $2,550
and $500, respectively, to The Lake County Community Foundation.
29
(Continued)
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Notes to Consolidated Financial Statements
September 30, 2014 and 2013
During the years ended September 30, 2014 and 2013, the Trust approved grant awards totaling $200,000
and $225,100, respectively, to The Community Foundation of Will County.
During the years ended September 30, 2014 and 2013, the Trust approved grant awards totaling $375,000
and $400,000, respectively, to Metropolis Strategies.
During the years ended September 30, 2014 and 2013, The S&C Foundation approved grant awards totaling
$10,000 to the Trust.
During the year ended September 30, 2013, the Revere Community Partners Fund approved grant awards
totaling $21,972 to the Trust.
During the years ended September 30, 2014 and 2013, The Pert Foundation approved grant awards totaling
$50,000 to The Lake County Community Foundation.
During the year ended September 30, 2013, The Chicago Community Trust approved grant awards totaling
$1,000 to the McHenry County Community Foundation.
During the year ended September 30, 2013, The Chicago Community Foundation approved grant awards
totaling $2,070,814 to The Glasser and Rosenthal Family Foundation.
During the years ended September 30, 2014 and 2013, The Pert Foundation approved grant awards totaling
$450,000 and $390,000, respectively, to the McHenry County Community Foundation.
During the year ended September 30, 2014, the Foundation approved grant awards totaling $5,000 to
Metropolis Strategies.
Each of these affiliate transactions have been eliminated in consolidation.
(13) Subsequent Events
In connection with the preparation of the consolidated financial statements and in accordance with
FASB ASC Topic 855, Subsequent Events, the Trust’s management evaluated subsequent events after the
consolidated statement of financial position date of September 30, 2014 through April 22, 2015, the date the
consolidated financial statements were available to be issued.
In February 2015, the “A” shares of a private equity investment of $9,283,718 went public with an IPO.
After the lock up has expired (August 2015) the “B” shares held can be exchanged for “A” shares, which
can be sold at the listed market value.
30
Schedule 1
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statements of Financial Position
September 30, 2014
The
Chicago
Community
Trust
Assets
Cash and cash equivalents
$
The
Chicago
Community
Foundation
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
The
Lavin
Family
Supporting
Foundation
The
S&C
Foundation
65,939,461
18,885,793
180,754
48,939
476,010
Investments:
Short-term investment funds
Fixed income – domestic
Fixed income – international
Domestic equities
International equities
Hedge funds
Absolute return funds
Real estate
Other
25,368,517
143,853,995
25,464,843
459,184,627
155,842,957
43,607,908
113,343
926,480
10,562,539
65,231,252
129,339,410
4,617,056
346,110,754
109,799,523
76,863,698
61,641,212
—
26,994,578
278,876
11,963,440
2,962,693
12,964,006
7,019,970
—
—
—
—
9
2,511,429
—
5,803,823
3,995,568
3,503,238
4,038,144
—
—
983,849
5,230,183
—
12,325,773
6,733,139
—
—
—
—
Total investments
864,925,209
820,597,483
35,188,985
19,852,211
25,272,944
4,704,043
1,517,674
1,457,808
2,075,157
305,990,643
41,376,720
36,947,923
—
—
—
—
—
$
1,287,986,715
876,431,199
$
4,610,778
481,396
33,473,358
17,925
778,011
—
4,233,300
5,689,877
Contributions receivable
Government grants and contracts receivable
Land, office equipment and leasehold improvements, net
Other assets
Beneficial interest in charitable term trusts
Beneficial interest in charitable perpetual trusts
Total assets
—
—
—
—
—
—
35,369,739
—
—
—
—
—
—
—
—
—
—
—
—
The
Springboard
Foundation
654,640
The
Pert
Foundation
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
Revere
Community
Partners
Fund
The Glasser
and Rosenthal
Family
Foundation
The McHenry
County
Community
Foundation
470
142,856
87,266,399
—
87,266,399
—
—
—
—
—
—
—
—
—
136,209
628,842
—
1,245,836
1,354,343
—
—
—
—
1,951,536
3,026,373
—
9,690,534
681,853
—
—
—
—
94,606,300
302,842,844
33,431,912
864,236,465
293,281,787
123,974,844
65,792,699
926,480
37,557,117
—
—
—
—
—
—
—
—
—
94,606,300
302,842,844
33,431,912
864,236,465
293,281,787
123,974,844
65,792,699
926,480
37,557,117
—
3,365,230
15,350,296
1,816,650,448
—
1,816,650,448
—
—
1,592,688
111,603
1,799,658
—
42,286,466
1,517,674
3,050,496
2,186,760
307,790,301
41,376,720
(10,240,917)
—
—
(1,149,976)
—
—
32,045,549
1,517,674
3,050,496
1,036,784
307,790,301
41,376,720
18,997,101
2,302,125,264
(11,390,893)
2,290,734,371
66,180
—
72,400
270,205
6,059,833
481,396
40,009,058
6,098,373
(1,149,976)
—
(10,240,917)
—
4,909,857
481,396
29,768,141
6,098,373
Metropolis
Strategies
359
207,125
400,458
—
—
—
—
—
—
—
—
—
—
592,840
3,929,798
378,430
9,995,589
5,678,335
—
—
—
—
18,780
1,862,282
—
5,815,352
1,842,118
—
—
—
—
44,432
497,092
8,890
1,100,171
333,981
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20,574,992
9,538,532
1,984,566
—
275,000
—
—
—
—
—
200,000
—
—
—
—
—
—
—
—
—
—
—
159,500
—
—
—
—
—
10,020,657
2,585,024
—
489,034
89,152
—
130,000
89,534
60,890
—
—
30,832
—
—
—
—
374,524
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19,901,150
25,748,954
654,640
45,983
—
2,000,000
—
35
—
100,000
—
34,280
—
—
—
20,575,351
329,534
—
—
—
—
—
—
3,365,700
Total
Eliminations
Consolidated
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued expenses
Annuity payable
Grants payable
Funds held for others
Total liabilities
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
$
—
—
—
—
—
—
—
—
—
38,583,457
10,701,188
2,045,983
100,035
34,280
897,331,853
310,694,685
41,376,720
829,805,996
35,924,015
—
58,162
—
35,311,577
17,855,167
—
—
25,648,919
—
—
620,360
—
—
20,575,351
—
—
—
1,249,403,258
865,730,011
35,369,739
17,855,167
25,648,919
620,360
20,575,351
9,711,971
1,287,986,715
876,431,199
35,369,739
19,901,150
25,748,954
654,640
20,575,351
10,020,657
—
—
—
—
308,686
91,722
—
374,524
408,785
52,648,660
(11,390,893)
41,257,767
9,436,971
275,000
—
2,293,302
200,000
—
—
—
—
(44,990)
159,500
—
3,365,700
—
—
16,918,666
1,669,650
—
1,823,865,457
348,922,850
76,688,297
9,859,689
(9,859,689)
—
1,833,725,146
339,063,161
76,688,297
—
114,510
3,365,700
18,588,316
2,249,476,604
—
489,034
3,365,700
18,997,101
2,302,125,264
2,493,302
2,585,024
—
—
(11,390,893)
2,249,476,604
2,290,734,371
See accompanying independent auditors’ report.
31
(Continued)
Schedule 1
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statements of Financial Position
September 30, 2013
The
Chicago
Community
Trust
Assets
Cash and cash equivalents
$
The
Chicago
Community
Foundation
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
The
Lavin
Family
Supporting
Foundation
The
S&C
Foundation
53,746,919
18,845,439
3,800
53,276
3,632
Investments:
Short-term investment funds
Fixed income – domestic
Fixed income – international
Domestic equities
International equities
Hedge funds
Absolute return funds
Real estate
Other
23,320,215
142,748,159
28,273,693
433,616,024
134,898,673
43,214,325
119,215
780,203
12,268,051
36,689,734
115,044,590
4,243,757
320,302,812
87,645,671
68,824,141
56,110,476
—
25,383,298
946,051
8,775,971
1,987,609
13,335,988
8,032,375
—
—
—
—
163,976
21,593,116
—
—
—
—
—
—
—
4,885,732
3,836,029
—
9,524,396
5,705,100
—
—
—
—
Total investments
819,238,558
714,244,479
33,077,994
21,757,092
23,951,257
354,029
—
25,515,080
1,739,345
Contributions receivable
Government grants and contracts receivable
Land, office equipment and leasehold
improvements, net
Other assets
Beneficial interest in charitable term trusts
Beneficial interest in charitable perpetual trusts
Total assets
1,297,477
2,123,600
292,249,793
39,498,021
—
—
—
—
$
1,208,508,397
760,344,343
$
2,491,600
609,605
32,784,147
29,752
868,375
—
2,060,171
4,832,444
The
Springboard
Foundation
The
Pert
Foundation
376,822
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
559
615,412
425,525
5,776
—
—
—
—
—
—
—
—
—
483,632
3,996,573
—
9,704,216
3,228,099
—
—
—
—
217,197
1,711,874
—
5,342,311
1,122,593
—
—
—
—
12,317
420,766
—
814,366
175,557
—
—
—
—
—
—
—
16,363
—
—
—
—
—
16,363
—
17,412,520
8,393,975
1,423,006
—
—
—
—
—
—
—
—
2,908,000
—
275,000
—
225,000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33,081,794
Revere
Community
Partners
Fund
—
—
—
—
—
—
—
—
—
—
—
—
Metropolis
Strategies
780,539
The Glasser
and Rosenthal
Family
Foundation
—
The McHenry
County
Community
Foundation
Total
Eliminations
Consolidated
62,593
74,920,292
—
74,920,292
—
—
—
—
—
—
—
—
—
67,665,134
301,753,782
35,641,174
798,769,638
242,337,693
112,038,466
56,229,691
780,203
37,651,349
—
1,652,867,130
—
—
—
—
—
—
—
—
—
160,484
611,683
—
1,208,858
1,257,420
—
—
—
—
785,796
3,015,021
1,136,115
4,904,304
272,205
—
—
—
—
67,665,134
301,753,782
35,641,174
798,769,638
242,337,693
112,038,466
56,229,691
780,203
37,651,349
—
3,238,445
10,113,441
1,652,867,130
—
—
1,017,500
—
—
—
375,000
—
30,669,609
1,739,345
(10,491,170)
—
20,178,439
1,739,345
—
—
—
—
375
10,000
—
—
—
—
—
—
1,596,639
113,990
1,839,600
—
2,894,491
2,247,590
294,089,393
39,498,021
—
(1,422,853)
—
—
2,894,491
824,737
294,089,393
39,498,021
21,810,368
23,954,889
376,822
20,321,079
9,284,387
2,073,531
22,139
1,808,414
3,238,445
14,101,263
2,098,925,871
(11,914,023)
2,087,011,848
3,231
—
4,250,000
—
590
—
716,334
—
21,939
—
—
—
—
—
375,000
—
83,943
—
137,500
84,823
33,972
—
—
40,491
167
—
21,972
—
731,671
—
—
—
10,190
—
—
—
106,468
—
—
269,309
4,352,146
609,605
40,345,124
5,256,819
(1,422,853)
—
(10,491,170)
—
2,929,293
609,605
29,853,954
5,256,819
22,139
731,671
10,190
375,777
50,563,694
(11,914,023)
38,649,671
59,243
1,017,500
—
3,228,255
—
—
11,510,887
2,214,599
—
1,652,032,229
323,724,501
72,605,447
9,454,670
(9,454,670)
—
1,661,486,899
314,269,831
72,605,447
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued expenses
Annuity payable
Grants payable
Funds held for others
Total liabilities
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
$
—
—
—
—
35,915,104
7,760,990
4,253,231
716,924
21,939
375,000
306,266
74,463
840,491,450
292,603,822
39,498,021
728,102,773
24,480,580
—
(25,632)
—
33,107,426
—
17,557,137
—
—
23,237,965
—
—
354,883
—
—
17,038,079
2,908,000
—
8,703,121
275,000
—
1,774,068
225,000
—
1,172,593,293
752,583,353
33,081,794
17,557,137
23,237,965
354,883
19,946,079
8,978,121
1,999,068
—
1,076,743
3,228,255
13,725,486
2,048,362,177
1,208,508,397
760,344,343
33,081,794
21,810,368
23,954,889
376,822
20,321,079
9,284,387
2,073,531
22,139
1,808,414
3,238,445
14,101,263
2,098,925,871
See accompanying independent auditors’ report.
32
—
—
—
—
(11,914,023)
2,048,362,177
2,087,011,848
Schedule 2
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statement of Activities – Unrestricted
Year ended September 30, 2014
Operating activities:
Support, revenue, and transfers:
Investment payout
Contributions
Government grants and contracts revenues
Transfer from nonoperating activities
Other income
Net assets released from restrictions
$
Total operating support, revenue, and transfers
Expenses:
Grants, net of refunds
Government grants and contracts expenses
Program-related expenses
Program-related expenses – government grants
Investment management and custodian fees
Administrative expenses
Other expenses
Total operating expenses
Excess (deficiency) of operating support,
revenue, and transfers over expenses
Nonoperating activities:
Contributions
Net return on investments after investment payout
Investment management and custodian fees
Change in value of charitable gift annuity and life
insurance policy
Transfer to operating activities
Other Income
Net assets released from restrictions
The
Chicago
Community
Trust
The
Chicago
Community
Foundation
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
The
Lavin
Family
Supporting
Foundation
The
S&C
Foundation
The
Springboard
Foundation
The
Pert
Foundation
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
Revere
Community
Partners
Fund
Metropolis
Strategies
33,651,242
12,116,078
1,613,434
682,829
2,882,746
23,802,799
14,430,304
2,051,200
168,413
105,428,802
306,395
—
919,506
—
—
—
—
—
121,602
—
—
—
2,634
—
363,398
—
—
195,725
—
—
127
639,234
—
—
—
—
418,874
—
—
611,678
—
—
187,657
152,851
—
304,011
428
275,000
37,474
9,667
—
101,678
397
225,000
—
—
—
—
—
—
366
453,883
—
—
130,408
997,500
152,690
—
—
—
—
—
373,536
—
—
1,187,214
19,878
130,008
50,656,776
15,422,913
1,781,847
108,511,937
3,342,886
25,430,307
The Glasser
and Rosenthal
Family
Foundation
The McHenry
County
Community
Foundation
Total
Eliminations
Consolidated
—
(4,049,170)
—
—
(2,452,321)
(600,000)
50,656,776
11,373,743
1,781,847
108,511,937
890,565
24,830,307
74,749,128
122,385,114
919,506
124,236
559,123
639,361
1,030,552
919,947
374,216
—
1,582,157
152,690
1,710,636
205,146,666
(7,101,491)
198,045,175
53,960,213
—
3,275,609
1,613,434
2,311,848
12,140,210
57,176
114,258,347
129,618
2,493,128
38,795
1,233,700
2,706,784
—
435,000
—
—
—
275,236
125,476
—
—
—
—
—
5,260
42,752
—
551,288
—
—
—
7,789
46
—
281,850
—
—
—
—
90,815
1,741
885,000
—
—
—
72,461
73,091
—
424,711
—
—
—
—
435,552
668
125,238
—
—
—
3,811
234,918
572
—
—
—
—
—
—
—
—
—
145,000
—
—
1,541,390
—
117,500
—
—
—
—
19,237
—
1,142,406
—
53,620
—
169,156
418,030
194
172,181,553
129,618
5,967,357
1,652,229
4,079,261
17,828,301
60,351
(8,564,929)
—
(251,729)
—
—
(2,200,592)
—
163,616,624
129,618
5,715,628
1,652,229
4,079,261
15,627,709
60,351
73,358,490
120,860,372
835,712
48,012
559,123
374,406
1,030,552
860,931
364,539
—
1,686,390
136,737
1,783,406
201,898,670
(11,017,250)
190,881,420
1,390,638
1,524,742
83,794
76,224
—
264,955
—
59,016
9,677
—
(104,233)
15,953
(72,770)
3,247,996
3,915,759
7,163,755
8,259,651
47,819,335
(188,938)
155,090,601
43,682,844
—
—
—
—
—
221,806
—
440,000
2,166,679
—
—
522
—
—
1,268,596
—
312,728
666,117
—
481,745
129,490
—
—
—
—
—
—
—
—
121,492
—
5,813,170
349,665
—
170,397,895
96,426,546
(188,938)
(2,036,768)
—
—
168,361,127
96,426,546
(188,938)
54,287
(682,829)
166,287
21,972
—
(105,428,802)
—
6,833,838
—
—
—
—
—
—
—
—
—
(195,725)
—
—
—
—
—
—
—
(611,678)
—
2,880,354
—
(304,011)
—
—
—
(101,678)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(80)
(1,187,214)
—
505,008
54,207
(108,511,937)
166,287
10,241,172
—
—
—
(1,473,972)
54,207
(108,511,937)
166,287
8,767,200
165,074,492
Net nonoperating activities
55,449,765
100,178,481
—
221,806
2,410,954
522
3,537,272
674,834
509,557
—
Increase (decrease) in net assets
56,840,403
101,703,223
83,794
298,030
2,410,954
265,477
3,537,272
733,850
519,234
—
840,491,450
728,102,773
(25,632)
17,557,137
23,237,965
354,883
17,038,079
8,703,121
1,774,068
—
59,243
3,228,255
11,510,887
1,652,032,229
9,454,670
1,661,486,899
897,331,853
829,805,996
58,162
17,855,167
25,648,919
620,360
20,575,351
9,436,971
2,293,302
—
(44,990)
3,365,700
16,918,666
1,823,865,457
9,859,689
1,833,725,146
Net assets at beginning of year
Net assets at end of year
$
—
(104,233)
121,492
5,480,549
168,585,232
(3,510,740)
137,445
5,407,779
171,833,228
405,019
172,238,247
See accompanying independent auditors’ report.
33
(Continued)
Schedule 2
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statement of Activities – Unrestricted
Year ended September 30, 2013
Operating activities:
Support, revenue, and transfers:
Investment payout
Contributions
Government grants and contracts revenues
Transfer from nonoperating activities
Other income
Net assets released from restrictions
$
Total operating support, revenue, and transfers
Expenses:
Grants, net of refunds
Government grants and contracts expenses
Program-related expenses
Program-related expenses – government grants
Investment management and custodian fees
Administrative expenses
Other expenses
Total operating expenses
Excess (deficiency) of operating support,
revenue, and transfers over expenses
Nonoperating activities:
Contributions
Net return on investments after investment payout
Investment management and custodian fees
Change in value of charitable gift annuity and life
insurance policy
Transfer to operating activities
Other expenses
Net assets released from restrictions
The
Chicago
Community
Trust
The
Chicago
Community
Foundation
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
The
Lavin
Family
Supporting
Foundation
The
S&C
Foundation
The
Springboard
Foundation
The
Pert
Foundation
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
Revere
Community
Partners
Fund
Metropolis
Strategies
34,253,235
8,547,109
—
1,353,808
2,528,360
23,181,741
12,562,622
2,393,547
4,865,103
97,034,932
273,381
—
652,514
—
—
—
—
—
173,101
—
—
—
—
—
302,812
—
—
499,608
—
—
211
451,283
—
—
—
—
207,724
—
—
460,505
—
—
82,085
222,661
—
125,125
482
300,000
24,529
15,155
—
33,500
—
250,000
12
638
—
22,122
—
—
620
552,527
50,000
—
484,180
938,473
12,879
—
—
—
925
—
103,191
15,900
—
932,379
—
75,419
48,375,535
12,198,820
4,915,103
100,461,979
3,287,328
24,745,633
—
(4,311,966)
—
—
(1,887,112)
(650,000)
48,375,535
7,886,854
4,915,103
100,461,979
1,400,216
24,095,633
652,514
173,101
802,420
451,494
668,229
730,353
323,184
22,772
2,025,800
13,804
1,126,889
193,984,398
(6,849,078)
187,135,320
332,000
—
—
—
204,272
123,375
—
—
—
—
—
—
205
—
794,613
—
—
—
7,754
53
—
309,815
—
—
—
—
88,046
1,537
615,000
—
—
—
20,985
32,244
—
320,506
—
16,434
—
—
443,128
448
85,000
—
—
—
—
201,844
319
21,972
—
—
—
800
—
—
—
—
80,000
50,000
—
1,925,146
—
—
—
—
—
—
10,190
—
749,799
—
20,202
—
48,964
267,831
—
159,847,218
3,793,077
3,894,918
925,396
3,554,257
16,032,886
48,681
(9,533,789)
—
(147,153)
—
—
(1,739,959)
—
150,313,429
3,793,077
3,747,765
925,396
3,554,257
14,292,927
48,681
66,801,677
114,522,274
659,647
205
802,420
399,398
668,229
780,516
287,163
22,772
2,055,146
10,190
1,086,796
188,096,433
(11,420,901)
176,675,532
3,062,576
2,607,311
(7,133)
172,896
—
52,096
—
(50,163)
36,021
—
(29,346)
3,614
40,093
5,887,965
4,571,823
10,459,788
1,634,164
58,345,054
(248,326)
183,930,370
91,498,168
—
—
—
—
—
(60,360)
—
360,000
1,430,457
—
—
367
—
—
708,464
—
314,696
1,103,544
—
596,975
105,629
—
—
3,735
—
—
—
—
3,070,814
153,827
—
471,280
482,116
—
190,378,299
153,771,001
(248,326)
(2,812,124)
—
—
187,566,175
153,771,001
(248,326)
(71,416)
(1,353,808)
(25,427)
1,371,742
—
(97,034,932)
—
4,246,667
—
—
—
—
—
(499,608)
—
—
—
—
—
—
—
(460,505)
—
12,200,000
—
(125,125)
—
—
—
(33,500)
—
—
—
(22,122)
—
—
—
—
—
—
—
—
—
—
32,863
(932,379)
—
—
(38,553)
(100,461,979)
(25,427)
17,818,409
—
—
—
(2,710,000)
(38,553)
(100,461,979)
(25,427)
15,108,409
—
3,224,641
53,880
261,193,424
(5,522,124)
255,671,300
3,228,255
93,973
267,081,389
(950,301)
266,131,088
—
11,416,914
11,416,914
182,640,273
185,247,584
—
—
$
Consolidated
117,129,585
59,651,983
Net assets at end of year
Eliminations
104,502,925
3,793,077
1,894,968
875,396
1,155,369
2,300,539
—
62,714,559
Increase (decrease) in net assets
Total
69,864,253
Net nonoperating activities
Net assets at beginning of year
The McHenry
County
Community
Foundation
52,115,588
—
1,883,314
—
2,116,113
10,640,285
46,377
Increase (decrease) in net assets before
effect of change in accounting principle
Cumulative effect of change in accounting principle
The Glasser
and Rosenthal
Family
Foundation
—
(7,133)
—
—
—
—
—
(60,360)
1,290,849
367
12,447,959
1,293,115
669,104
(18,387)
112,536
1,290,849
52,463
12,447,959
1,242,952
705,125
(18,387)
—
—
—
—
—
—
—
(29,346)
—
—
11,416,914
62,714,559
185,247,584
(7,133)
112,536
1,290,849
52,463
12,447,959
1,242,952
705,125
(18,387)
(29,346)
3,228,255
11,510,887
278,498,303
(950,301)
277,548,002
777,776,891
542,855,189
(18,499)
17,444,601
21,947,116
302,420
4,590,120
7,460,169
1,068,943
18,387
88,589
—
—
1,373,533,926
10,404,971
1,383,938,897
840,491,450
728,102,773
(25,632)
17,557,137
23,237,965
354,883
17,038,079
8,703,121
1,774,068
—
59,243
3,228,255
11,510,887
1,652,032,229
9,454,670
1,661,486,899
See accompanying independent auditors’ report.
34
3
Schedule 3
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statement of Activities – Temporarily Restricted
Year ended September 30, 2014
Operating activities:
Support and revenue:
Investment payout
Contributions
Other income
Net assets released from restrictions
$
Total operating support and revenue
Expenses:
Grants, net of refunds
Program-related expenses
Investment management and custodian fees
Administrative expenses
Other expenses
Total operating expenses
The
Chicago
Community
Trust
The
Chicago
Community
Foundation
The
Pert
Foundation
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
—
—
—
(23,802,799)
—
—
—
—
—
—
—
—
—
275,000
—
(275,000)
—
200,000
—
(225,000)
—
139,500
—
(997,500)
—
—
—
(130,008)
(23,802,799)
—
—
—
(25,000)
(858,000)
(130,008)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Deficiency of operating support and revenue
over expenses
(23,802,799)
Nonoperating activities:
Contributions
Net gain on investments after investment payout
Investment management and custodian fees
Gain on beneficial interest in charitable perpetual trusts
Gain on beneficial interest in charitable term trusts
Change in value of charitable gift annuity
Other income
Net assets released from restrictions
4,678,785
—
—
—
37,236,849
—
—
(21,972)
18,277,273
—
—
—
—
—
—
(6,833,838)
(27,646)
—
—
—
—
—
—
(2,880,354)
—
—
—
—
—
—
—
—
Net nonoperating activities
41,893,662
11,443,435
(2,908,000)
—
Increase (decrease) in net assets
18,090,863
11,443,435
(2,908,000)
—
292,603,822
24,480,580
2,908,000
310,694,685
35,924,015
—
Net assets at beginning of year
Net assets at end of year
$
(25,000)
—
—
—
—
—
—
—
—
—
Metropolis
Strategies
(858,000)
—
—
—
—
—
—
—
—
—
(25,000)
(858,000)
275,000
225,000
1,017,500
275,000
200,000
159,500
The McHenry
County
Community
Foundation
Total
Eliminations
Consolidated
—
614,500
—
(25,430,307)
—
(587,500)
—
600,000
—
27,000
—
(24,830,307)
(24,815,807)
12,500
(24,803,307)
(130,008)
(24,815,807)
12,500
(24,803,307)
—
—
—
—
90,067
—
—
(505,008)
22,928,412
—
—
—
37,326,916
—
—
(10,241,172)
(1,891,491)
—
—
—
—
—
—
1,473,972
21,036,921
—
—
—
37,326,916
—
—
(8,767,200)
(414,941)
50,014,156
(417,519)
49,596,637
(544,949)
25,198,349
(405,019)
24,793,330
2,214,599
323,724,501
(9,454,670)
314,269,831
1,669,650
348,922,850
(9,859,689)
339,063,161
See accompanying independent auditors’ report.
35
(Continued)
Schedule 3
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statement of Activities – Temporarily Restricted
Year ended September 30, 2013
Operating activities:
Support and revenue:
Investment payout
Contributions
Other income
Net assets released from restrictions
$
Total operating support and revenue
Expenses:
Grants, net of refunds
Program-related expenses
Investment management and custodian fees
Administrative expenses
Other expenses
Total operating expenses
The
Chicago
Community
Trust
The
Chicago
Community
Foundation
The
Pert
Foundation
The Lake
County
Community
Foundation
The
Community
Foundation
of Will
County
—
25,000
—
(23,181,741)
—
—
—
—
—
—
—
—
—
275,000
—
(300,000)
—
225,000
—
(250,000)
—
227,500
—
(938,473)
—
—
—
(75,419)
(23,156,741)
—
—
(25,000)
(25,000)
(710,973)
(75,419)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Deficiency of operating support and revenue
over expenses
(23,156,741)
Nonoperating activities:
Contributions
Net gain on investments after investment payout
Investment management and custodian fees
Gain on beneficial interest in charitable perpetual trusts
Gain on beneficial interest in charitable term trusts
Change in value of charitable gift annuity
Other income
Net assets released from restrictions
153,772
—
—
—
25,136,731
—
—
(1,371,742)
11,522,141
—
—
—
—
—
—
(4,246,667)
2,265,000
—
—
—
—
—
—
(12,200,000)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23,918,761
7,275,474
(9,935,000)
—
—
762,020
7,275,474
(9,935,000)
—
—
762,020
7,275,474
(9,935,000)
(25,000)
(25,000)
291,841,802
17,205,106
12,843,000
300,000
292,603,822
24,480,580
2,908,000
275,000
Increase (decrease) in net assets before
effect of change in accounting principle
Cumulative effect of change in accounting principle
Increase (decrease) in net assets
Net assets at beginning of year
Net assets at end of year
$
(25,000)
(25,000)
—
—
See accompanying independent auditors’ report.
36
(25,000)
(25,000)
Metropolis
Strategies
(710,973)
The McHenry
County
Community
Foundation
Total
Eliminations
Consolidated
—
752,500
—
(24,745,633)
—
(625,000)
—
650,000
—
127,500
—
(24,095,633)
(23,993,133)
25,000
(23,968,133)
(75,419)
(23,993,133)
25,000
(23,968,133)
—
—
—
—
—
—
—
—
375,000
—
—
—
118,659
—
—
—
14,315,913
—
—
—
25,255,390
—
—
(17,818,409)
(1,784,699)
—
—
—
—
—
—
2,710,000
12,531,214
—
—
—
25,255,390
—
—
(15,108,409)
—
493,659
21,752,894
925,301
22,678,195
418,240
(2,240,239)
950,301
(1,289,938)
1,796,359
1,796,359
—
1,796,359
(710,973)
2,214,599
(443,880)
950,301
506,421
250,000
1,728,473
—
324,168,381
(10,404,971)
313,763,410
225,000
1,017,500
2,214,599
323,724,501
(9,454,670)
314,269,831
—
(710,973)
—
Schedule 4
THE CHICAGO COMMUNITY TRUST
(Funds Held by the Trustees or Created for the
Benefit of The Chicago Community Trust)
Consolidating Statements of Activities – Permanently Restricted
Years ended September 30, 2014 and 2013
The
Chicago
Community
Trust
2014
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
The
Chicago
Community
Trust
2013
The
Burridge D.
Butler
Memorial
Trust of
Chicago,
Illinois
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Expenses:
Grants, net of refunds
Program-related expenses
Investment management and custodian fees
Administrative expenses
Other expenses
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Total operating expenses
—
—
—
—
—
—
Excess of operating support and revenue over expenses
—
—
—
—
—
—
—
—
—
1,878,699
—
—
2,204,151
—
—
—
—
2,204,151
—
1,878,699
—
—
—
—
2,358,171
—
—
2,716,228
—
—
—
—
2,716,228
—
2,358,171
—
1,878,699
2,204,151
4,082,850
2,358,171
2,716,228
5,074,399
Operating activities:
Support and revenue:
Investment income
Contributions
Gain on beneficial interest in charitable term trusts
Other income
Net assets released from restrictions
$
Total operating support and revenue
Nonoperating activities:
Contributions
Net gain (loss) on investments
Investment management and custodian fees
Gain (loss) on beneficial interest in charitable perpetual trusts
Transfer to nonoperating activities – unrestricted
Net nonoperating activities
Increase (decrease) in net assets
Net assets at beginning of year
Net assets at end of year
$
Consolidated
Consolidated
1,878,699
2,204,151
4,082,850
2,358,171
2,716,228
5,074,399
39,498,021
33,107,426
72,605,447
37,139,850
30,391,198
67,531,048
41,376,720
35,311,577
76,688,297
39,498,021
33,107,426
72,605,447
See accompanying independent auditors’ report.
37