Annual Report 2016 : simplebooklet.com

CONTENTS!!! ! ! ! ! ! ! ! ! ! ! ! 1!Table!of!Contents!!""#$%&'())(*&+*,-&).(&/,$*0&1.$2*&3&4*(520(")&666666666666666666666666666666666666666666666666666666666666666666666666666666&7!8(9("#(&$"0&(:;("5(5&<=$5.&>$525?&66666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666&@!/,$*0&,+&02*(=),*5AB(C&D)$++&6666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666&E!F*$")5&$"0&G"9(5)-(")5&>C&4*,H*$-&!*($&66666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666&I!1,")$= ) &G " +,*-$)2,"&66666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666&JJ!!&&&

Page 3

KENNETH!KING!FOUNDATION!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! 2!ANNUAL!LETTER!FROM!THE!BOARD!CHAIR!&!PRESIDENT!Dear!Friends!of!the!Kenneth!King!Foundation:!Enclosed!please!find!the!2016!Kenneth!King!Foundation!Annual!Report.!In!2016,!the!Kenneth!King!Foundation!made!$980 ,45 5!in!grants!and!program-related!investments!to!Colorado-based!organizations.!Our!funding!continued!to!focus!on!the!positive!momentum!employment!and!access!to!entrepreneurship!provides!individuals!and!families.!Whether!we!are!investing!in!programs!that!create!job!opportunities!for!at-risk!populations,!technical!assistance!and!capital!alongside!pathways!to!entrepreneurship!or!helping!rem ove!barriers!to!employment,!we!believe!the!journey!to!self-sufficiency!begins!and!improves!with!meaningful!work.!And,!by!removing!obstacles!to!employment!and!entrepreneurship!for!at-risk!populations,!we!believe!we!are!making!a!significa n t!im p rovement!in!the!lives!of!thousands!of!Coloradans.!!In!the!Foundation’s!third!year!funding!programs!providing!resources!for!disadvantaged!entrepreneurs,!we!continued!to!invest!in!community!development!financial!institutions!such!as!the!Rocky !Moun tain!Microfinance!Center,!ACCION!and!the!Colorado!Lending!Source.!We!believe!these!programs!are!more!successful!establishing!new!entrepreneurs!than!traditional! and!alternative!lending!s ou rces!beca us e!o f!the !education,!advice,!and!mentorship!they!provide!aspiring!entrepreneurs!from!lower!socioeconomic!backgrounds.!Of!course,!they!offer!capital!at!more!reasonable!interest!rates,!where!traditional!lenders!may!not!even!consider!lending.!Given!Colorado!has!consistently!ranked!in!the!top!five!among!U.S.!states!with!high!levels!of!new!entrepreneurs!per!year1,!our!focus!continues!to!be !o n!low-incom e ,!m in o rit y,!rural!and!other!disadvantaged!pop ulations,!where!the!rate!of!entrepreneurship!is!much!lower.!!Colorado’s!history!and!culture!are!steeped!in!entrepreneurship!and!small!business!ownership.!The!Kenneth!King!Foundation!is!the!by-product!of!our!namesake’s!willingness!to!take!risks!by!setting ! out!to!start!a!financial!institu tio n !with!little!start-up!capital!or!guidance.!Today,!more!than!8%!of!Colorado’s!adult!population!owns!a!business!as!their!primary!job,!ranking!the!state!fourth!in!the!nation!for!small!business!owners h ip !a s !a !percentage!of!the!total!adult!population2.!However,!among!p eople!of!color,!America!a n d !Colorado’s!fastest!growing!population!segment3,!barriers !to!small!busin e ss !ownership!are!seemingly!insurmo u n ta b le .!Among!Latinos ,!small!business!ow n er sh ip !as !a!p e rcentag e !of!tot al!population!is!almost!half!of!the!Colorado!average,!4.57%,!and!among!blacks,!the!figure!is!even!lower,!2.94%4.!Given!pop u l a t io n !growth!is!more!than!double!the!rate!am ong!people!of!color!versus!people!of!white!non-Hispanic!descent,!an!increase!in!entrepreneursh ip !among!people!of!color!not!only!improves!income!disparity!across!race!but!also!can!create!more!meaningful!employment!among!a!faster!growing!population!segment,!which!happens!to!be!disadvantaged.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1!Kauffman!Foundation!Index,!Larger!States!Rankings:!Startup!Activity,!November!201 6!2!Kauffman!Foundation!calculations!from!CPS.!Yearly!measure!for!U.S.!and!three-year!moving!average!for!states!and!metros,!November!2016 3!State!of!Colorado!Demographer’s!Office,!Population!growth!forecast!2016-2025!4!Kauffman!Foundation!calculations!from!CPS.!Yearly!measure!for!U.S.!and!three-year!moving!average!for!states!and!metros,!November!2016

Page 4

KENNETH!KING!FOUNDATION!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! 3!(Annual!letter!cont-d)!Growing!youth’s!exposure!to!entrepreneurship!and!meaningful!employment!through!educatio n,!mentorship,!internships!an d !ap p rentice sh ip s!c o nt in u e!to!be !an o t he r!important!focus!for!the!Foundation.!In!20 16 ,!th e!Foundation!continued!to!fund!programs!such!as!Goodwill!Industries!of!Denver,!where!early!access!to!mentorship,!leadership!skills,!problem-solving!tools,!and!guidance!chips!away!at!the!barriers!youth!face!to!entrepreneurship!and!meaningful!employment.!!Not!surprising,!people!who!know!entrepreneurs!are!more!likely!to!become!entrepreneurs!and!exposure!to!entrepreneurship!earlier!in!life!raises!the!probability!of!engaging!in!it.!We!have!learned!that!before!starting!a!business,!more!than!half!of!all!business!owners!had!a!family!mem ber!who!was!self-employed,!and,!nearly!a!quarter!of!all!entrepreneurs!worked!in!a!family!business!of!some!kind!before!acquiring!it!or!starting!one!of!their!own.!We!think!the!possibility!of!exposing!at-risk!youth!to!successful!entrepreneurs!in!a!meaning fu l,!insightful!way!will!open!m o re!doorways!to!entrepreneurship!among!populations!unaware!of!these!possibilities.!!According !to !t he!Kauff man!Foundation , !national ly,! white-owned!firms!experience d !d o u ble!the!average!sales !of!Asian,!Hispanic!and!black-owned!businesses.!Al so,!Hispanic!a nd!black- owned!bus in e s se s !h ave!higher!failure!rates!than!do!white-!and!Asian-owne d !fir ms.!Reasons!inclu d e !i n d u s t r y !d ifferences ,!minority-owned!businesses!overrepresented!in!less!successful!industries;!and!access!to!less!capital!and!technical!assistance!for!minority!entrepreneurs.!Businesses!owned!by!people!of!color!on!average!received!loan!amounts!35!percent!lower!than!those !offered!to!white-owned !fir ms,!and!the!denial!rate!for!women-owned!firms!is!twice!of!white!male-owned!f ir ms5.!!Although!not!everyone,!particularly!among!at-risk!populations,!is!equipped!with!the!capital,!risk!tolerance,!skills,!desire!and!wherewithal!to!become!a!successful!entrepreneur,!we!believe!disadvantaged!individuals!who!have!the!desire!and!appetite!for!e n t reprene u r s h i p !s hould!be!provided!with!the!tools !a nd!capital! they!need!to!improve!their!odds.!After!all,!although!only!one!in!ten!American!workers!are!self-employed,!this!segment!of!our!population,!13!million!people,!holds!37!percent !of!all!of!the!wealth!in!the!United!States6.!!Our!interest!in!growing!access!to!meaningful!employment!does!not!stop!with!entrepreneurship.!Alongside!our!interest!in!lending!capital!to!aspiring!entrepreneurs!from!disadvantaged!backgrounds,!we!continue!to!invest!in!employee!training!programs!in!indus trie s!with!existing!employm en t!o p p o rtu n it ies ! in !ou r !community.!Areas!of!interest!include!bank!tellers,!diesel!mechanics!and!health!care!personnel,!and!we!continue!to!learn!about!other!industries.!In!2016,!we!grew!our!impact!investment!portfolio!by!making!investments!in!early!childhood!education!mobile!application!WeeSchool!and!small!business!lender!the!Colorado!Lending!Source.!The!WeeSchool!mobile!application!provides!parents!of!varying!socioeconomic!backgrounds!age-appropriate!activities!to!educate!and!engage!with!their!baby.!In!the!cas e!of!WeeScho ol,!we!believe!inves t in g !in!creative !ways!to!provide!disadvantaged!and!low-incom e !parents!with!tools!and!resources!to!interact!with!their!children!will!result!in!long-term!positive!outcomes.!The!Colorado!Lending!Source!offers!character-based,!direct!loans!of!$50,000!or!less!to!responsible,!early-stage!businesses!unable!to!secure!financing!on!reasonable!terms!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5!Federal!Reserve!Board!Survey!of!Small!Business!Finances,!2003!6!Kauffman!Foundation,!Entrepreneurship!Policy!Digest,!“Including!People!of!Color!in!the!Promise!of!Entrepreneurship,”!December!5,!2016!

Page 5

KENNETH!KING!FOUNDATION!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! 4!(Annual!letter!cont-d)!through!other!sources.!Many!of!these!firms!are!women-ow ned,!minor it y-owned,!veteran-owne d !a n d !businesses!located!in!rural!areas,!all!at-risk!entrepreneurs!with!the!capability!to!positively!impact!the!current!downward!start-up!trend,!all!while!improving!our !c o mmunity.!!Once!again,!this!year’s!Colorado’s!unemployment!rate!is!at!record!lows,!currently!at!2.3%7,!versus!the!national!average!4.4%,!and!our!state!is!consistently!one!of!the!top!entrepreneurial!states!in!the!U.S.!Our!state!promises!a!multitude!of!opportunity!for!the!appropriately!educated!and!trained!workforce.!!!Given!start-up!companies!less!than!five!years!old!have,!in!the!past,!created!90!percent!of!all!new!jobs,!and!start-ups!are!on!a!downward!trend,!with!less!new!businesses!forming,!new!jobs!and!opportunities!for! th e!disadvantaged!are!declining.!Nationally,!part!of!the!issue!might!be!that!the!fastest!growing!populations,!people!of!color,!are!not!starting!and!growing!companies!at!the!same!rate!as!their!white!counterparts,!leading!to!an!overall!decline!in!start-up!growth!when!compared!to!overall!population!growth.!!It!turns!out ,!thou gh,!that!no !m atter!how!p rosperous!our!Colorado!econo my!appears ,!the!nee d!for!basic!needs!continues.!For!example,!our!homelessness!rates!are!not!declining.!No!matter!the!potential!circumstance!for!our!rise!in!homelessness!(Colorado!experienced!a!13%!increase!in!homelessness!from!2015-20168),!we!recognize!the!need!to!identify!and!su ppo rt!organizations!providing!services!standing!in!the!way!to!achieve!self-sufficiency.!Whether!in !ru ral!or!urba n !C olo rado,!it!is!still!difficult!to!get!un-!and!under-employed!people!into!meaningful!employment.!And,!before!the!homeless!can!consider!employment,!their!basic!needs!must!b e!m et.!A!large!portion!of!o ur !fun din g!a dd resses!ba sic!h uman!services!that!stan d!in!the!way!of!employment .!In!addition!to!our!emp loyment,!entrepreneurship!and!barriers!to!employment!funding!focus,!ten!percent!of!our!2016!grantmaking!was!targeted!towards!Colorado!arts!and!culture!organizations.!!In!the!Fall!of!2016,!the!Foundation! undertook!a!strategic!planning!process!which!included!analysis!of!past!grantmaking,!assessing!our!state’s!current!challenges!and!opportunities;!and!interviewin g!p a st !grant!recipients.!The!resultant!strategic!plan!renews!our!commitment!to!job!creation!through!entrepreneurship,!opening!pathways!to!meaningful!employment!and!supporting!the!needs!of!the!un-!and!underemployed!to!match!interests!and!job!training!needs!with!the!needs!of!today’s!employers.!!In!2017,!the!Foundation!continues!to!explore!differe nt!im p ac t!investments!where!our!dollars!can!strengthen!entrepreneurs!in!both!rural!and!urban!Colorado.!We!encourage!organizations!interested!in!exploring!impact!investing!to!conta ct !us ,!eith e r!by!pho n e,! 303-832-3200!or!email,!grants@kennethkingfoundation.org.!!Thank!you!for!your!continued!commitment!to!improving!the!lives!of!Coloradans.!!We!are!honored!to!be!a!small!part!of!it.!!Tim!Welker!!!!!!!!!!!!!!!!Janice!Fritsch!Board!Chair!!!!!!!!!!!!!!!!President!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7!Colorado!Department!of!Labor,!June!2017!!8!2016!U.S.!Department!of!Housing!and!Urban!Development!Annual!Report!on!Homelessness!

Page 6

KENNETH!KING!FOUNDATION!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! 5!REVENUE!AND!EXPENSES!(CASH!BASIS)!8(9("#(5K&&G")(*(5)&$"0&02920("05&L&JM@EJMNO7&P()&*($%2Q(0&H$2"&,"&5$%(&,+&2"9(5)-(")5&&RESMESN&T).(*&G"=,-(&&&E7N&& && U,)$%&*(9("#(5&&&7MO7EMOEN&F*$")5&;$20&&EE@MR@E&T).(*&H*$")&(5;("5(5&&JJEMO77&!0-2"25)*$)29(&(:;("5(5&&@RVMOJR&G"9(5)-(" )&$"0 &,).(*&(:;("5(5&&IEOM7R7&W:=25(&)$:&&S@MJOO&&& U,)$%&(:;("5(5&&&&7MJ7@MNSR&BALANCE!SHEET!(CASH!BASIS)!!55()5K&&P()&!55()5K&!!!The!Foundation’s!financial!statements!are!audited!by!Kundinger,!Corder!&!Engle,!P.C.!W:;("5(5K&!1.$"H(5&2"&"()&$55()5&L&<VVMIEE?&1$5.&$"0&-,"(C&-$*B()&L&SNEMVO7&1,--,"&5),=B &$ ) &+$ 2 * &-$*B()&9$%#(&&REMSRIM7@N&4*,H*$-&*(%$)(0&2"9(5)-(")5&&7V7M@RN&& U,)$%&=$5.&$"0&2"9(5)-(")5&&RIMO7EMION&'($5(&0(;,52)5&&@MJIN&& U,)$%&$55()5&L&RIMOSJMNNE&X"*(5)*2=)(0&"()&$55()5&$)&+$2*&-$*B()&9$%#(&L&RIMOSJMNNE&& U,)$%&"()&$55()5&L&RIMOSJMNNE&

Page 7

KENNETH!KING!FOUNDATION!!! ! ! ! ! ! ! ! ! ! ! ! 6!BOARD!OF!DIRECTORS/KEY!STAFF!!!T.E . !Wel ker, !Board!Chair!Matthew!R.!Banner,!III,!Director!Stacey!Hekkert,!Director!John!Love,!Treasurer/Director!Jared!Minor,!Director!Janice!K.!Fritsch,!President!!GRANTMAKING!GUIDELINES!!The!Kenneth!King!Foundation!accepts!grant!applications!by!invit ation!only.!Invitations!to!apply!for!a!grant!are!sent!to!mission-aligned!organizations!throughout!the!year,!generally!no!later!than!60!days!before!the!grant!proposal!deadline.!The!Foundation!has!instituted!two!deadlines!to!apply!for!funding:!March!1!–!Basic!Human!Needs!that!remove!barriers!to!employment!September!1!–!Entrepreneurship!Programs!and!Jobs!Programs!For!organizations!interested!in!applying,!who!have!not!received!an!invitation!to!apply,!please!submit!a!letter!of!inquiry!alongside!year-to-date!financial!statements!(state!of!income!and!balance!sheet).!The!Foundation!will!notify!these!organizations!if!they!are!eligible!to!apply!for!funding!for!their!respective!program!area.!

Page 8

KENNETH!KING!FOUNDATION!!! ! ! ! ! ! ! ! ! ! ! ! 7!GRANTS!AND!INVESTMENTS!BY!PROGRAM!AREA!!ARTS,!CULTURE,!AND!THE!HUMANITIES!!Alamosa!Live!Music!Association! ! $5,000!Broomfield!Civic!Chorus! ! ! $2,500!Colorado!Ballet!Company! ! ! $5,000!Colorado!Symphony!Orchestra! ! $10,000!Denver!Lyric!O pera !Guild! ! ! $10,000!Denver!Museum!of!Nature!and!Science! $35,000!History!Colorado! ! ! ! $6,555!Phamaly!! ! ! ! ! $5,000!Colorado!College!Summer!Music!Festival!!!$5,000!U,)$%&!*)5M&1#%)#*(M&$"0&).(&Y#-$"2)2(5&Z#"02"H[&V\&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&LNRMO@@&HUMAN!SERVICES!!Adv ocates!Safehouse!! ! ! $5,000!Arvada!Community!Food!Bank! ! $5,000!Boulder!Shelter!for!the!Homeless! ! $5,000!Boy!and!Girls!Club!of!the!San!Luis!Valley! $5,000!Capitol!Hill!Community!Services! ! $50,000!Catholic!Charities!of!Denver!! ! $5,000!Celebrate!Autism! ! ! ! $5,000!

Page 9

KENNETH!KING!FOUNDATION!!! ! ! ! ! ! ! ! ! ! ! ! 8!Colorado!Friendship!! ! ! $5,000!Colorado!Lions!KidSight!Program! ! $10,000!Colorado!Young !Leaders! ! ! $10,000!Community!Resource!Center! ! $5,000!Denver!Catholic!Worker!Soup!Kitchen! $3,000!Denver!Lions!Foundation! ! ! $12,500!Eagle!Valley!Religious!Foundation! ! $15,000!First!Baptist!Church!of!Denver! ! $15,000!Gathering!Place! ! ! ! $10,000!Global!Livingston!Institute! ! ! $5,000!Haven!House!of!Montrose! ! ! $5,000!Heart!of!Boardwalk/CHARG!! ! $5,000!Hope!Communities! ! ! ! $900!House!of!Neighborly!Service! ! $5,000!Inn!Between!of!Longmont! ! ! $5,000!Invest!in!Kids!! ! ! ! $5,000!Karis!Community! ! ! ! $5,000!Kids!Aid! ! ! ! ! $5,000!La!Clinica!Tepeyac! ! ! ! $10,000!La!Puente!Home! ! ! ! $10,000!Manna!Soup!Kitchen!! ! ! $5,000!Metro!Caring! ! ! ! ! $10,000!OUR!Center! ! ! ! ! $5,000!

Page 10

KENNETH!KING!FOUNDATION!!! ! ! ! ! ! ! ! ! ! ! ! 9!Project!Self!Sufficiency!! ! ! $5,000!Rocky!Mountain!MS!Center! ! ! $10,000!Volunteers!of!America! ! ! $5,000!WeeSchool! ! ! ! ! $200,000!WINGS!Foundation! ! ! ! $10,000!U,)$%&Y#-$"&D(*92=(5&Z#"02"H[&RV\&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&LRIEMROO&JOBS!AND!E NT RE PR EN EURSHIP!ACCION!New!Mexico!! ! ! $50,000!Bayaud!Enterprises! ! ! ! $10,000!Blue!Star!Recyclers! ! ! ! $15,000!Bridge!House!! ! ! ! $10,000!Colorado!Lending!Source!(PRI-Loan)! $100,000!Discovery!Goodwill!! ! ! ! $25,000!Emily!Griffith!Foundation! ! ! $10,000!Energy!Resource!Center! ! ! $5,000!Girls!Inc.! ! ! ! ! $5,000!Goodwill!Industries!of!Denver! ! $45,000!Mi!Casa! ! ! ! ! $25,000!REACH!Pikes!Peak! ! ! ! $5,000!Rocky!Mountain!MicroFinance!Institute! $25,000!Rose!Comm.!Fdn.–Impact!Finance!Days! $5,000!Saguache!Works! ! ! ! $5,000!Spring!Institute! ! ! ! $10,000!

Annual Report 2016

Page 1

Page 2