Ann Arbor Public Schools Educational Foundation Financial Review

While founded in 1991, Ann Arbor Public Schools Educational Foundation reorganized in 2007 in order to expand and provide greater support for programs in the Ann Arbor Public Schools. The reorganization was based upon knowledge that it would take an investment in time and money to achieve wide scale community support. A feasibility study conducted by Marts and Lundy was the basis for the reorganization. This growth has required an investment in staff and infrastructure that is now paying off.

The Foundation has grown steadily since 2007 in contributions, distributions to programs in the Ann Arbor Public Schools, and in public awareness of The Foundation in our community and the state. As a result, we expect current and prospective donors to conduct diligence research on our fiscal health, granting policy, and program impact. We provide this information below to inform donors and community members of our activities. If you have further questions, please contact the office.

Financial information: As with all nonprofits, our 990 reports are available through Guidestar.org
Follow this link to review the Ann Arbor Public Schools Educational Foundation files on Guidestar.

IRS 990 forms provide a picture of the financial activities of a nonprofit, but not a total picture of the activities and actions of the organization.

• AAPSEF facilitates contributions of services, programs and volunteers to the AAPS that are not accounted for in our 990’s.
• AAPSEF awards grants to the AAPS in July. AAPSEF transfers grant funds to the AAPS upon completion of the grant. In some cases, grants budgeted are not paid out in the year allocated.
• AAPSEF bylaws call for an annual review of our financials with a full audit every three years. While not required by law, the review/audit can reassure donors that the AAPSEF is properly managing all funds.

Grants as a portion of the overall budget: As AAPSEF matures as an organization and grows in contributions, administrative costs will become a smaller percentage of the overall budget.

• Based upon guidelines from Charity Navigator (an independent charity evaluator), the AAPSEF board has resolved the following: At the latest, in our fiscal year 2013 (July 1, 2012 – June 30, 2013), AAPSEF program expenses (grants to AAPS, scholarships, fund distributions) should be 65% or higher (higher is better). Charity Navigator reports that 9 out of 10 charities spend at least 65% of their budget on programs.
• Functional administrative expenses should be lower than 15% (the lower the better).
• Fundraising expenses should be lower than 10% (the lower the better).

Granting policy: The Ann Arbor Public Schools Educational Foundation makes large grants to the Ann Arbor Public Schools. Internally these are known as Initiative for Excellence grants. The Initiatives for Excellence committee, composed of Educational Foundation board members and qualified community members, reviews and researches grant applications from the District Superintendent and makes recommendations to the Educational Foundation Board for funding. The guiding principle of Initiatives for Excellence is, "All Students, All Schools". The committee works in conjunction with the Ann Arbor Public Schools to assure that major grants are in coordination with the district strategic plan.

Program Impact: The Initiatives for Excellence committee also provides ongoing oversight of funded grants to assure the success of the programs and responsible stewardship of the awarded funds.

Wendy Correll, Executive Director
ph: 734-994-1969

wcorrell@aapsef.org

Ann Arbor Public Schools Educational Foundation
2555 S. State Street
Ann Arbor, Michigan 48104

100% of every gift stays in Ann Arbor. Every gift makes a difference.

AAPSEF is an independent 501 (c)(3) non-profit organization.
©2008 Ann Arbor Public Schools Educational Foundation