Financial Overview

The Solano Community Foundation, in accordance with UPMIFA and FAS 117, is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted net assets. Classification is dependent on the "permanency" of the assets held, and further described as either endowed (permanent), or non-endowed (non-permanent).

SCF holds exclusive and permanent control of the establishing and subsequent gifts for all permanent and non-permanent donor-advised funds. However, if a fund is established by an unrelated nonprofit organization using its own assets, for its own benefit, the fund is further classified as donor-restricted. The Community Foundation holds and reports the establishing gift, and all subsequent gifts as a liability, rather than as an SCF asset.

The Community Foundation manages its assets and performs accounting functions in accordance with accounting principles generally accepted in the United States. SCF uses an accrual basis of accounting, where revenues are recognized when earned, and expenses are recognized when the obligation is incurred, regardless of the timing of the related cash flows.

The Solano Community Foundation serves our donors and the nonprofit community through sound financial management and investment practices, and Board oversight. An comprehensive audit of our financial statements and related statements is conducted annually by an independent auditor. Our audited Financial Statements and IRS Form 990 for the most recent year ending December 31st, can be viewed and downloaded using the links shown in the column to the right.

Investment Philosophy

The Solano Community provides support through grantmaking and services to a wide variety of nonprofit organizations that benefit Solano County. The Board and staff of SCF have the fiduciary responsibility to meet current needs while preserving the assets of the Foundation for long-term purposes. Investments are pooled according to class restrictions which provides maximum investment efficiency.

Investment Policy Summary

The assets of the Foundation are invested in a balanced, conservative, and diversified portfolio to:

• manage financial risk,
• receive the return commensurate with the risk,
• provide a reasonable annual distribution,
• provide flexibility to accommodate the different needs of donors and grantees,
• meet the liquidity needs of the Foundation,
• accommodate the growth plans of the Foundation,
• preserve and grow principal over the long-term.