ANNUAL REPORT 2016 - · PDF filepopulation owns a business as their primary job ... are more...
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ANNUAL REPORT 2016 Mailing Address: 100 Fillmore Street, 5 th Floor Denver, CO 80206 Phone: 303.832.3200 Fax: 303.832.4176
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Transcript of ANNUAL REPORT 2016 - · PDF filepopulation owns a business as their primary job ... are more...
ANNUALREPORT2016
MailingAddress:
100FillmoreStreet,5thFloorDenver,CO80206
Phone:303.832.3200Fax:303.832.4176
www.kennethkingfoundation.org
CONTENTS
1
TableofContents
AnnualLetterfromtheBoardChair&President..............................................................................2Revenueandexpenses(cashbasis)........................................................................................................5Boardofdirectors/keyStaff......................................................................................................................6GrantsandInvestmentsbyProgramArea............................................................................................7ContactInformation...................................................................................................................................11
KENNETHKINGFOUNDATION
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ANNUALLETTERFROMTHEBOARDCHAIR&PRESIDENTDearFriendsoftheKennethKingFoundation:
Enclosedpleasefindthe2016KennethKingFoundationAnnualReport.
In2016,theKennethKingFoundationmade$980,455ingrantsandprogram-relatedinvestmentstoColorado-basedorganizations.Ourfundingcontinuedtofocusonthepositivemomentumemploymentandaccesstoentrepreneurshipprovidesindividualsandfamilies.Whetherweareinvestinginprogramsthatcreatejobopportunitiesforat-riskpopulations,technicalassistanceandcapitalalongsidepathwaystoentrepreneurshiporhelpingremovebarrierstoemployment,webelievethejourneytoself-sufficiencybeginsandimproveswithmeaningfulwork.And,byremovingobstaclestoemploymentandentrepreneurshipforat-riskpopulations,webelievewearemakingasignificantimprovementinthelivesofthousandsofColoradans.
IntheFoundation’sthirdyearfundingprogramsprovidingresourcesfordisadvantagedentrepreneurs,wecontinuedtoinvestincommunitydevelopmentfinancialinstitutionssuchastheRockyMountainMicrofinanceCenter,ACCIONandtheColoradoLendingSource.Webelievetheseprogramsaremoresuccessfulestablishingnewentrepreneursthantraditionalandalternativelendingsourcesbecauseoftheeducation,advice,andmentorshiptheyprovideaspiringentrepreneursfromlowersocioeconomicbackgrounds.Ofcourse,theyoffercapitalatmorereasonableinterestrates,wheretraditionallendersmaynotevenconsiderlending.GivenColoradohasconsistentlyrankedinthetopfiveamongU.S.stateswithhighlevelsofnewentrepreneursperyear1,ourfocuscontinuestobeonlow-income,minority,ruralandotherdisadvantagedpopulations,wheretherateofentrepreneurshipismuchlower.
Colorado’shistoryandculturearesteepedinentrepreneurshipandsmallbusinessownership.TheKennethKingFoundationistheby-productofournamesake’swillingnesstotakerisksbysettingouttostartafinancialinstitutionwithlittlestart-upcapitalorguidance.Today,morethan8%ofColorado’sadultpopulationownsabusinessastheirprimaryjob,rankingthestatefourthinthenationforsmallbusinessownershipasapercentageofthetotaladultpopulation2.However,amongpeopleofcolor,AmericaandColorado’sfastestgrowingpopulationsegment3,barrierstosmallbusinessownershipareseeminglyinsurmountable.AmongLatinos,smallbusinessownershipasapercentageoftotalpopulationisalmosthalfoftheColoradoaverage,4.57%,andamongblacks,thefigureisevenlower,2.94%4.Givenpopulationgrowthismorethandoubletherateamongpeopleofcolorversuspeopleofwhitenon-Hispanicdescent,anincreaseinentrepreneurshipamongpeopleofcolornotonlyimprovesincomedisparityacrossracebutalsocancreatemoremeaningfulemploymentamongafastergrowingpopulationsegment,whichhappenstobedisadvantaged.
1KauffmanFoundationIndex,LargerStatesRankings:StartupActivity,November20162KauffmanFoundationcalculationsfromCPS.YearlymeasureforU.S.andthree-yearmovingaverageforstatesandmetros,November2016
3StateofColoradoDemographer’sOffice,Populationgrowthforecast2016-20254KauffmanFoundationcalculationsfromCPS.YearlymeasureforU.S.andthree-yearmovingaverageforstatesandmetros,November2016
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(Annuallettercont-d)
Growingyouth’sexposuretoentrepreneurshipandmeaningfulemploymentthrougheducation,mentorship,internshipsandapprenticeshipscontinuetobeanotherimportantfocusfortheFoundation.In2016,theFoundationcontinuedtofundprogramssuchasGoodwillIndustriesofDenver,whereearlyaccesstomentorship,leadershipskills,problem-solvingtools,andguidancechipsawayatthebarriersyouthfacetoentrepreneurshipandmeaningfulemployment.
Notsurprising,peoplewhoknowentrepreneursaremorelikelytobecomeentrepreneursandexposuretoentrepreneurshipearlierinliferaisestheprobabilityofengaginginit.Wehavelearnedthatbeforestartingabusiness,morethanhalfofallbusinessownershadafamilymemberwhowasself-employed,and,nearlyaquarterofallentrepreneursworkedinafamilybusinessofsomekindbeforeacquiringitorstartingoneoftheirown.Wethinkthepossibilityofexposingat-riskyouthtosuccessfulentrepreneursinameaningful,insightfulwaywillopenmoredoorwaystoentrepreneurshipamongpopulationsunawareofthesepossibilities.
AccordingtotheKauffmanFoundation,nationally,white-ownedfirmsexperienceddoubletheaveragesalesofAsian,Hispanicandblack-ownedbusinesses.Also,Hispanicandblack-ownedbusinesseshavehigherfailureratesthandowhite-andAsian-ownedfirms.Reasonsincludeindustrydifferences,minority-ownedbusinessesoverrepresentedinlesssuccessfulindustries;andaccesstolesscapitalandtechnicalassistanceforminorityentrepreneurs.Businessesownedbypeopleofcoloronaveragereceivedloanamounts35percentlowerthanthoseofferedtowhite-ownedfirms,andthedenialrateforwomen-ownedfirmsistwiceofwhitemale-ownedfirms5.
Althoughnoteveryone,particularlyamongat-riskpopulations,isequippedwiththecapital,risktolerance,skills,desireandwherewithaltobecomeasuccessfulentrepreneur,webelievedisadvantagedindividualswhohavethedesireandappetiteforentrepreneurshipshouldbeprovidedwiththetoolsandcapitaltheyneedtoimprovetheirodds.Afterall,althoughonlyoneintenAmericanworkersareself-employed,thissegmentofourpopulation,13millionpeople,holds37percentofallofthewealthintheUnitedStates6.
Ourinterestingrowingaccesstomeaningfulemploymentdoesnotstopwithentrepreneurship.Alongsideourinterestinlendingcapitaltoaspiringentrepreneursfromdisadvantagedbackgrounds,wecontinuetoinvestinemployeetrainingprogramsinindustrieswithexistingemploymentopportunitiesinourcommunity.Areasofinterestincludebanktellers,dieselmechanicsandhealthcarepersonnel,andwecontinuetolearnaboutotherindustries.
In2016,wegrewourimpactinvestmentportfoliobymakinginvestmentsinearlychildhoodeducationmobileapplicationWeeSchoolandsmallbusinesslendertheColoradoLendingSource.TheWeeSchoolmobileapplicationprovidesparentsofvaryingsocioeconomicbackgroundsage-appropriateactivitiestoeducateandengagewiththeirbaby.InthecaseofWeeSchool,webelieveinvestingincreativewaystoprovidedisadvantagedandlow-incomeparentswithtoolsandresourcestointeractwiththeirchildrenwillresultinlong-termpositiveoutcomes.TheColoradoLendingSourceofferscharacter-based,directloansof$50,000orlesstoresponsible,early-stagebusinessesunabletosecurefinancingonreasonableterms
5FederalReserveBoardSurveyofSmallBusinessFinances,20036KauffmanFoundation,EntrepreneurshipPolicyDigest,“IncludingPeopleofColorinthePromiseofEntrepreneurship,”December5,2016
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(Annuallettercont-d)
throughothersources.Manyofthesefirmsarewomen-owned,minority-owned,veteran-ownedandbusinesseslocatedinruralareas,allat-riskentrepreneurswiththecapabilitytopositivelyimpactthecurrentdownwardstart-uptrend,allwhileimprovingourcommunity.
Onceagain,thisyear’sColorado’sunemploymentrateisatrecordlows,currentlyat2.3%7,versusthenationalaverage4.4%,andourstateisconsistentlyoneofthetopentrepreneurialstatesintheU.S.Ourstatepromisesamultitudeofopportunityfortheappropriatelyeducatedandtrainedworkforce.
Givenstart-upcompanieslessthanfiveyearsoldhave,inthepast,created90percentofallnewjobs,andstart-upsareonadownwardtrend,withlessnewbusinessesforming,newjobsandopportunitiesforthedisadvantagedaredeclining.Nationally,partoftheissuemightbethatthefastestgrowingpopulations,peopleofcolor,arenotstartingandgrowingcompaniesatthesamerateastheirwhitecounterparts,leadingtoanoveralldeclineinstart-upgrowthwhencomparedtooverallpopulationgrowth.
Itturnsout,though,thatnomatterhowprosperousourColoradoeconomyappears,theneedforbasicneedscontinues.Forexample,ourhomelessnessratesarenotdeclining.Nomatterthepotentialcircumstanceforourriseinhomelessness(Coloradoexperienceda13%increaseinhomelessnessfrom2015-20168),werecognizetheneedtoidentifyandsupportorganizationsprovidingservicesstandinginthewaytoachieveself-sufficiency.WhetherinruralorurbanColorado,itisstilldifficulttogetun-andunder-employedpeopleintomeaningfulemployment.And,beforethehomelesscanconsideremployment,theirbasicneedsmustbemet.Alargeportionofourfundingaddressesbasichumanservicesthatstandinthewayofemployment.
Inadditiontoouremployment,entrepreneurshipandbarrierstoemploymentfundingfocus,tenpercentofour2016grantmakingwastargetedtowardsColoradoartsandcultureorganizations.
IntheFallof2016,theFoundationundertookastrategicplanningprocesswhichincludedanalysisofpastgrantmaking,assessingourstate’scurrentchallengesandopportunities;andinterviewingpastgrantrecipients.Theresultantstrategicplanrenewsourcommitmenttojobcreationthroughentrepreneurship,openingpathwaystomeaningfulemploymentandsupportingtheneedsoftheun-andunderemployedtomatchinterestsandjobtrainingneedswiththeneedsoftoday’semployers.
In2017,theFoundationcontinuestoexploredifferentimpactinvestmentswhereourdollarscanstrengthenentrepreneursinbothruralandurbanColorado.Weencourageorganizationsinterestedinexploringimpactinvestingtocontactus,eitherbyphone,303-832-3200oremail,[email protected].
ThankyouforyourcontinuedcommitmenttoimprovingthelivesofColoradans.Wearehonoredtobeasmallpartofit.
TimWelkerJaniceFritsch
BoardChairPresident
7ColoradoDepartmentofLabor,June201782016U.S.DepartmentofHousingandUrbanDevelopmentAnnualReportonHomelessness
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REVENUEANDEXPENSES(CASHBASIS)
Revenues: Interestanddividends $ 1,561,802Netrealizedgainonsaleofinvestments 463,638OtherIncome 628 Totalrevenues
2,026,068
Grantspaid 665,456Othergrantexpenses 116,022Administrativeexpenses 549,014Investmentandotherexpenses 760,242Excisetaxexpense 35,100 Totalexpenses
2,125,834
BALANCESHEET(CASHBASIS)
Assets:
NetAssets:
TheFoundation’sfinancialstatementsareauditedbyKundinger,Corder&Engle,P.C.
Expenses:
Changesinnetassets $ (99,766)
Cashandmoneymarket $ 386,902Commonstockatfairmarketvalue 46,347,258Programrelatedinvestments 292,548 Totalcashandinvestments 47,026,708Leasedeposits 5,178 Totalassets $ 47,031,886
Unrestrictednetassetsatfairmarketvalue $ 47,031,886 Totalnetassets $ 47,031,886
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BOARDOFDIRECTORS/KEYSTAFFT.E.Welker,BoardChair
MatthewR.Banner,III,Director
StaceyHekkert,Director
JohnLove,Treasurer/Director
JaredMinor,Director
JaniceK.Fritsch,President
GRANTMAKINGGUIDELINESTheKennethKingFoundationacceptsgrantapplicationsbyinvitationonly.Invitationstoapplyforagrantaresenttomission-alignedorganizationsthroughouttheyear,generallynolaterthan60daysbeforethegrantproposaldeadline.TheFoundationhasinstitutedtwodeadlinestoapplyforfunding:
March1–BasicHumanNeedsthatremovebarrierstoemployment
September1–EntrepreneurshipProgramsandJobsPrograms
Fororganizationsinterestedinapplying,whohavenotreceivedaninvitationtoapply,pleasesubmitaletterofinquiryalongsideyear-to-datefinancialstatements(stateofincomeandbalancesheet).TheFoundationwillnotifytheseorganizationsiftheyareeligibletoapplyforfundingfortheirrespectiveprogramarea.
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GRANTSANDINVESTMENTSBYPROGRAMAREA
ARTS,CULTURE,ANDTHEHUMANITIES
AlamosaLiveMusicAssociation $5,000
BroomfieldCivicChorus $2,500
ColoradoBalletCompany $5,000
ColoradoSymphonyOrchestra $10,000
DenverLyricOperaGuild $10,000
DenverMuseumofNatureandScience $35,000
HistoryColorado $6,555
Phamaly $5,000
ColoradoCollegeSummerMusicFestival$5,000
TotalArts,Culture,andtheHumanitiesFunding-9%$84,055
HUMANSERVICES
AdvocatesSafehouse $5,000
ArvadaCommunityFoodBank $5,000
BoulderShelterfortheHomeless $5,000
BoyandGirlsCluboftheSanLuisValley $5,000
CapitolHillCommunityServices $50,000
CatholicCharitiesofDenver $5,000
CelebrateAutism $5,000
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ColoradoFriendship $5,000
ColoradoLionsKidSightProgram $10,000
ColoradoYoungLeaders $10,000
CommunityResourceCenter $5,000
DenverCatholicWorkerSoupKitchen $3,000
DenverLionsFoundation $12,500
EagleValleyReligiousFoundation $15,000
FirstBaptistChurchofDenver $15,000
GatheringPlace $10,000
GlobalLivingstonInstitute $5,000
HavenHouseofMontrose $5,000
HeartofBoardwalk/CHARG $5,000
HopeCommunities $900
HouseofNeighborlyService $5,000
InnBetweenofLongmont $5,000
InvestinKids $5,000
KarisCommunity $5,000
KidsAid $5,000
LaClinicaTepeyac $10,000
LaPuenteHome $10,000
MannaSoupKitchen $5,000
MetroCaring $10,000
OURCenter $5,000
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ProjectSelfSufficiency $5,000
RockyMountainMSCenter $10,000
VolunteersofAmerica $5,000
WeeSchool $200,000
WINGSFoundation $10,000
TotalHumanServicesFunding-49%$476,400
JOBSANDENTREPRENEURSHIPACCIONNewMexico $50,000
BayaudEnterprises $10,000
BlueStarRecyclers $15,000
BridgeHouse $10,000
ColoradoLendingSource(PRI-Loan) $100,000
DiscoveryGoodwill $25,000
EmilyGriffithFoundation $10,000
EnergyResourceCenter $5,000
GirlsInc. $5,000
GoodwillIndustriesofDenver $45,000
MiCasa $25,000
REACHPikesPeak $5,000
RockyMountainMicroFinanceInstitute $25,000
RoseComm.Fdn.–ImpactFinanceDays $5,000
SaguacheWorks $5,000
SpringInstitute $10,000
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SpringsRescueMission $10,000
WorkOptionsforWomen $20,000
TotalEntrepreneurialismFunding-39%$380,000
EDUCATIONSigmaChiFoundation $10,000
SnowboardOutreachSociety $10,000
St.Elizabeth’sSchool $10,000
WilliamRobertsSchoolSTEMLab $15,000
TotalEducationFunding-5%$45,000
TotalGrantFundingin2016$980,455
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CONTACTINFORMATION
MailingAddress:
KennethKingFoundation100FillmoreStreet,5thFloor
Denver,CO80206Phone:303.832.3200Fax:303.328.2322
