On behalf of The Dayton Foundation, I would like to personally thank the Foundation's donors, who continue to give and make charitable commitments to our community, demonstrating their ongoing dedication to philanthropy.

During the fiscal year (July 1, 2007 – June 30, 2008), the Foundation received contributions of $42.0 million from these generous donors. Documented legacies (planned and deferred gifts) increased by $3.6 million over last year, to total $219 million as of June 30, 2008.

Over 16,000 grants and distributions, totaling $40.9 million, were made to nonprofit organizations this year from the assets of The Dayton Foundation. In the last decade, the Foundation has distributed more than 139,000 grants totaling $365 million.

The Dayton Foundation’s total assets were $325 million as of June 30, 2008, a decrease of $21.1 million from the prior year. Of this amount, $294.4 million represents investments and marketable securities ($317.5 million in 2007). These declines are the result of broad declines in equity markets both domestically and internationally, as well as declines in high-yield bond markets. For the fiscal year ending June 30, 2008, the Foundation’s composite time-weighted total expected return of its discretionary assets, after fees, was -5.5 percent, as computed by The Fund Evaluation Group (FEG), The Dayton Foundation’s investment consultant. The actual return on these assets lagged the benchmark slightly at -5.8 percent.

During the months subsequent to June 30, 2008, the stock market volatility and declines have continued, at rates that are unprecedented in recent years. During the three-month period ended September 30, 2008, the Foundation received donations of approximately $9.2 million and made grants and distributions of $12.5 million. The Foundation’s investment and marketable securities are $269.3 million as of September 30, 2008. The Foundation’s Finance Committee and management team continue to work diligently with FEG, not only in monitoring the Foundation’s professional investment managers, but in FEG’s expanded role as investment consultant.

Finally, I am pleased to report that the independent accounting and auditing firm of Battelle & Battelle has completed its fiscal year-end audit of the combined financial statements of The Dayton Foundation and related entities and has issued an unqualified opinion thereon.

A complete copy of the audited financial statements may be obtained from Steve Darnell, vice president of Finance, at The Dayton Foundation, 500 Kettering Tower, Dayton, Ohio 45423, or by calling the Foundation at (937) 222-0410 or toll free at (877) 222-0410. My thanks also go to the Foundation's Finance and Audit Committee members, the investment managers, and our Finance and Accounting staff for their effort, support and advice.