The REACH Foundation’s spending policy is based on a three-year quarterly rolling average of asset value. This approach enables the foundation to minimize the budget impact of dramatic market fluctuations to provide a more consistent stream of resources that can be invested in the work of our grantees. It also means that annual mission-related investments will lag increases in the foundation’s asset base because of the foundation’s obligation to maintain spending power into perpetuity.
The foundation strives to be a reliable source of funding for our community partners and as a result, committed $5 million in grant awards in 2020, which included $1.4 million in unrestricted funding to support urgent and unanticipated operating needs of nonprofits due to the COVID-19 pandemic. In total, 63 percent of 2020 funding was unrestricted, in recognition of the significant health, administrative and safety requirements that emerged during the nation's health crisis.
Each year, REACH reports on expenses associated with grants and other mission-related expenses. Over the length of our grantmaking history, more than 75 percent of total expenses reflect direct investments made in the REACH Foundation's six-county service area. The remainder of annual expenditures are indirect investments in the foundation’s mission via staff time and related operating expenses. This information is available in our annual reports and audited financial statements.