It is our great pleasure to introduce the 2013 Annual Report of the John A. Hartford Foundation. As we continue to move our focus from academic capacity building to practice change, we are reminded that some critical elements of the Foundation’s work remain steadfast. Among the most important of these are the creation and maintenance of productive partnerships. This report presents a special appreciation and celebration of those collaborations, as they have, in particular, characterized all of our achievements. We do not travel alone.
Our partners—currently 104 academic institutions, nonprofit organizations, governmental agencies, and other philanthropies who work closely and diligently with us to help improve the health of older adults—have allowed us to leverage and magnify our funding investments to far greater effect than they ever could have achieved on their own. In fact, during the past 14 years, our partnerships have amplified the Foundation’s $398 million investment in older adult health to nearly $2 billion in funding for other related projects—a 500 percent return on investment.
We have joined with the National Institute on Aging, the Administration for Community Living, the Department of Veterans Affairs in the government sector, and the F.B. Heron Foundation, the Margaret A. Cargill Foundation, the SCAN Foundation, the Rasmuson Foundation, and so many others in the nonprofit philanthropic world.
The rewards of these partnerships go well beyond advantages in additional project funding. Collaboration augments creativity, productivity, and efficiency, maximizing the effect and broadening the scope of our efforts. And it has substantially extended our reach, with one collaboration often leading to another.
This Annual Report recounts the stories of many of the productive partnerships the Hartford Foundation has been privileged to enjoy, particularly during the last 30 years.
Notable Grants in 2013
Several grants were illustrative not only of the Foundation’s shift in focus from academic capacity building to practice change, but also of the kind of collaborative partnerships that have always energized our work. Notably, the Foundation granted $5,062,819 over three years to the Gerontological Society of America to launch the Hartford Change AGEnts Initiative, under the direction of Laura Gitlin, PhD, and Nancy Whitelaw, PhD. This interdisciplinary effort will harness the talents and energy of the more than 3,000 scholars and health systems leaders the Foundation has supported during the last three decades and encourage them to work directly on changes in practice and service delivery that improve the health of older patients.
With co-funding from the Tufts Health Plan Foundation and the Archstone Foundation, the Foundation awarded Partners in Care Foundation, Inc., in San Fernando, CA, $2,068,500 for a period of three years to conduct an initiative called Improving the Health of Older Adults Using Integrated Networks for Medical Care and Social Services. Under the direction of W. June Simmons, MSW, this project will develop two large-scale prototype networks—one in California and one in Massachusetts—that link community-based, social service agencies to the health care sector. With the collaboration of the Administration for Community Living and other similar efforts around the country, our hope is that these networks can serve as replicable models of the kind of integrated health care and social services delivery systems older patients and their families so desperately need.
Finally, with co-funding from the SCAN Foundation, the Foundation funded the National Committee for Quality Assurance in Washington, DC to initiate Quality Measures to Assess the Performance of Goal Setting and Achievement in the Delivery of Medical and Long-Term Care. A grant of $415,222 over 18 months will support the first stage of a multi-phase initiative that will develop critically needed outcomes-based performance measures that can be used to improve the quality and experience of care for dually enrolled Medicare/Medicaid beneficiaries.
In total, the Foundation paid out $18.2 million in grants, of which $17.5 million went to the Foundation’s aging & health initiative.
Favorable markets, especially U.S. equities, propelled the Foundation’s well-diversified portfolio to another year of solid performance, continuing its march forward with a gain of about 14 percent. This was the fourth year in which the portfolio delivered a double-digit return since the financial crisis of 2008-09. The Foundation’s endowment ended 2013 at approximately $550 million, representing a net increase of $38 million after disbursement for grants and expenses during the year. Furthermore, we are pleased that the Foundation was able to preserve and enhance the real value of its endowment over the past 26 years; the portfolio delivered a net annualized return of 9.1 percent, while spending over $784 million in today’s dollars for grants and expenses during this period of time. However, after a nearly five-year strong performance run since the financial crisis, we believe that maintaining a disciplined, prudent investment approach becomes more critical than ever. With Goldman Sachs’ assistance, we are confident that our portfolio has positioned us well to pursue investment opportunities and to better withstand dramatic swings in the financial markets in 2014 and beyond.
We would like to express our gratitude and best wishes to William T. Comfort, Jr., who retired from the Hartford Foundation’s Board of Trustees in 2013 as its secretary after 13 years of service. Mr. Comfort is a Managing Partner at Court Square Capital Partners and Chairman of Citicorp Venture Capital and was first elected to the Board in June 2000.
We would also like to acknowledge some additions to the Hartford family. On June 6, 2013, two new Trustees, Elizabeth A. Palmer and Earl A. Samson III were elected to the Board.
Ms. Palmer is Head of North American Marketing and Client Services at Lindsell Train and the former Senior Managing Director of Global Product Management at MFS Investment Management, Boston, MA. She is also a Trustee and Chair of the Mt. Holyoke College Investment Committee.
Mr. Samson is President and Chief Investment Officer at Landmark Management, Inc.; Treasurer and Chair of Finance and Investment Committees and Former Chairman of the Board of Trustees of the Darrow School in New Lebanon, NY; and Founding President of the Sakonnet Point Club, a nonprofit organization in Little Compton, RI.
On the Hartford staff, we were pleased to welcome Crystal Tsoi, who joined us in June 2013 as administrative assistant. Ms. Tsoi comes to us from the University of Chicago, where she earned her B.A. in political science.
Finally, we would like to express our profound gratitude to our Board of Trustees, staff, and grantees for their extraordinary support over the past year as we continued to make the transition in our funding focus. It is only through their extraordinary skills and dedication that we have been able to achieve the successes we have in so short a time. They are our most important partners of all.