2019 Financials | The New York Community Trust
Total Assets
Total Grants

Consolidated Statements of Financial Positions

Consolidated Statement of Activities

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

December 31, 2019 and 2018

(1) Organization

The New York Community Trust and Community Funds, Inc. (including its Long Island and Westchester Divisions)(The Trust) are community foundations created to build permanent charitable endowments for the greater metropolitan region. The Trust, as the consolidated foundations are hereinafter referred to, is tax-exempt underSection 501(c)(3) of the Internal Revenue Code (the Code) and has been determined not to be a private foundation under Section 509(a)(1) of the Code. The Trust administers more than 2,000 individual charitable funds, each established with an instrument of gift describing either the general or specific purposes for which grants are to be made, from a spending plan distribution, income, and in some cases from principal.

(2) Summary of Significant Accounting Policies

Accounting standards provide that if the governing body of an organization has the ability to remove a donor restriction, the contributions should be classified as net assets without donor restrictions. However, under NewYork State law and The Trust’s governing instruments, the assets are held as endowment funds until such time (ifever) as the governing body deems it prudent and appropriate to expend some part of the principal or appreciation. Accordingly, the consolidated financial statements classify all net assets as without donor restrictions.

Cash equivalents represent short-term investments with original maturities of 90 days or less, except for those short-term investments managed as part of long-term investment strategies.

Fixed assets are recorded at cost and are depreciated on a straight-line basis over the estimated life of the respective asset. Leasehold improvements are depreciated over the life of the respective improvement or the remaining term of the lease, whichever is shorter. Fixed assets are reported net of accumulated depreciation of $796,600 in 2019 and $3,729,970 in 2018.

Grants and services to beneficiaries (Grantmaking) are expensed with approval of the Distribution Committee of The New York Community Trust (NYCT) or the Board of Directors of Community Funds, Inc. (CFI), and are usually paid within one year.

The Trust has adopted a constant growth spending plan for many of its funds. This approach allows spending to increase at a steady rate within the confines of a floor, a ceiling, and a cap. The spending plan is not applied to funds in CFI that are considered to be underwater, as defined by New York State law. At December 31, 2019 and 2018, no fund was considered to be underwater.

Accounting estimates are an integral part of the consolidated financial statements prepared by management and are based upon management’s current judgments. Actual results could differ from those estimates.

In 2019, The Trust adopted Financial Accounting Standards Board Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Certain amounts in 2018 were reclassified to conform with the current year presentation. Also in 2019, The Trust adopted ASU No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, with respect to contributions received. The adoption of this portion of the ASU did not have a significant impact on The Trust’s consolidated financial statements. The portion of this ASU related to contributions made will be adopted by The Trust in 2020. Management is currently assessing the impact of this portion of the ASU on The Trust’s consolidated financial statements.

(3) Liquidity and Availability of Financial Assets

Resources available to The Trust to fund general expenditures, such as operating expenses and grants, have seasonal variations related to the timing of spending plan distributions and receipt of gifts. The Trust actively manages its resources, utilizing a combination of short-, medium-, and long-term operating investment strategies to align its cash inflows with anticipated outflows. Furthermore, there are likely to be additional components of The Trust’s investments that may be available and liquid within one year. These components include certain portions of marketable alternatives, as well as return of capital from private equity. At December 31, 2019 and2018, financial assets available within one year to fund general expenditures were as follows:

NYCT Finance 2019


(4) Investments and Fair Value Measurements

Fair value is defined as the exchange price that would be received to sell an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy requires The Trust to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are:

  • Level 1 inputs are quoted or published prices in active markets for identical assets or liabilities.
  • Level 2 inputs are inputs other than prices included within Level 1 that are observable for the asset, such as quoted prices for similar assets or liabilities.
  • Level 3 inputs are unobservable inputs for the asset or liability.

ASC 820, Fair Value Measurement, allows The Trust, as a practical expedient, to estimate the fair value using net asset value (NAV) for commingled investments that do not have a readily determinable fair value.

Most of The Trust’s investments are in publicly traded securities or in commingled funds that invest in publicly traded securities. Fair value for these investments is based on quoted market or published prices. The Trust also invests in hedge funds and private equity investments, including private real estate investments. The fair value of these investments has been determined primarily through the net asset values provided by the fund managers utilizing quoted market prices for underlying securities, market values for comparable companies, an income-based approach, or discounted cash flow projections. The Trust received gifts of interests in a limited partnership investment holding company and a limited liability company (LLC), which are carried at fair value, based on either an appraisal or The Trust’s interest in the net assets of the LLC. These valuations are reviewed for reasonableness by management of The Trust.

The Trust invests for long-term growth in real terms, consistent with a reasonable degree of risk. Donor advised funds that require a high degree of liquidity are invested in cash equivalents. The investments of NYCT are held in individual trusts at the bank designated by the donor in the instrument of gift.

The following tables present The Trust’s investments at December 31, 2019 and 2018, respectively:

NYCT Finances 2019


The Trust’s investments valued at NAV include:

Hedge Funds – Consist mainly of multi-strategy funds that attempt to generate consistent positive returns by focusing on opportunities that are not correlated with the overall markets. This category also includes two funds that seek to achieve equity-like returns with lower volatility than the equity markets. These funds may be redeemed at net asset value at least annually and in most cases more frequently. Advance notice of 30-90 days is required to redeem these investments.

Private Equity – These funds focus on buyouts—primarily of midcap companies. Certain funds of funds also have a small allocation to venture capital. As the underlying investments are liquidated, assets are distributed. The liquidation occurs over the life of each vehicle, which is typically 10 years. Certain of The Trust’s investments in private equity involve future cash commitments, which amounted to approximately $52 million as of December 31, 2019.

The following table presents a reconciliation for all Level 3 assets measured at fair value for the period from January 1 to December 31:

NYCT Finances 2019, Level 3 Assets

(5) Functional Expenses

Salaries and benefits, occupancy, and office expenses are attributable to grantmaking, administrative, or development functions, and are allocated consistently based on estimates of time and effort. The following tables illustrate the functional expenses for the years ended December 31, 2019 and 2018, respectively:

NYCT Functional Expenses 2019










(6) Commitments

On March 30, 2004, The Trust entered into a lease agreement for office space expiring March 31, 2020. In June 2017, The Trust signed the Amendment of Lease to extend the lease term through August 31, 2030. Future minimum annual rental payments are approximately $1.2 million in 2020, $2.0 million in 2021 to 2024, and a total of $12.0 million thereafter through 2030.

Rental expense is recognized on a straight-line basis, in accordance with ASC 840 – Accounting for Leases. The excess of recognized expense over actual rent payments as well as landlord-provided improvements has been recorded as deferred rent credits. Rent expense for the years ended December 31, 2019 and 2018 amounted to $1,362,862 and $1,415,940, respectively.

(7) Pension and Postretirement Medical Benefit Plans

The Trust administers a noncontributory defined benefit pension plan covering substantially all employees. Benefits are based on years of service and the employee’s compensation during the five highest consecutive years during the last ten years of employment. The Trust also provides medical insurance benefits for its eligible retired employees. Obligations and funded status as of December 31 are as follows:

NYCT Pension and Postretirement Medical Plans 2019








The accumulated amounts not yet recognized as a component of net periodic benefit cost were $2,915,243 and $(394,162) at December 31, 2019 for the pension and postretirement medical plans, respectively. The estimated amounts that will be amortized into net periodic benefit cost in 2020 are $53,000 and $(5,000), respectively.

NYCT Finances 2019









The health care cost trend rate assumption for 2020 is 2.30%, increasing to 4.8% in 2025.

The pension plan is invested in a balanced portfolio of equity and fixed income securities. Annual projected benefit payments for the pension and postretirement medical benefit plans are expected to average $1,733,000 and $111,000, respectively, through 2029.

The following tables present The Trust’s fair value hierarchy for the investments of its defined benefit pension plan as of December 31, 2019 and 2018, respectively:

NYCT Fair Value Hierarchy chart










The Trust also sponsors a defined contribution retirement plan in which contributions are based upon a specified percentage of salaries and years of service. The expense for this retirement plan was $704,618 in 2019 and $683,437 in 2018.

(8) Subsequent Events

The Trust invests in various investment securities to support its operations. Investment securities are exposed to various risks such as interest rate, market and credit risks. The spread of coronavirus (COVID-19) around the world in the first quarter of 2020 has caused significant volatility in the U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies. The Trust has determined that COVID-19 will have minimal impact on its operations in the future.

The Trust has evaluated, for potential recognition and disclosure, events subsequent to the date of the statement of financial position through May 6, 2020, the date the financial statements were available to be issued. No additional events have occurred that would require adjustment to or disclosure in the accompanying financial statements.

Independent Auditor's Report

Distribution Committee of The New York Community Trust and Board of Directors of Community Funds, Inc.:

We have audited the accompanying consolidated financial statements of The New York Community Trust and Community Funds, Inc. (including its Long Island and Westchester Divisions) (collectively, The Trust), which comprise the consolidated statements of financial position as of December 31, 2019 and 2018, and the related consolidated statements of activities and cash flows for the years then ended, and the related consolidated notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


In our opinion, the consolidated financial statements referred to above present fairly in all material respects, the financial position of The New York Community Trust and Community Funds, Inc. (including its Long Island and Westchester Divisions) as of December 31, 2019 and 2018, and the changes in their net assets and their cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

May 6, 2020

2019 Financial Highlights


NYCT Financial Highlights 2019




Kevin R. Byrne, Committee Chairman Chief Executive Officer Pacific Global Asset Management

Elizabeth B. Dater Retired Managing Director Angelo, Gordon & Co.

Patricia Haverland Retired Vice President & Chief Investment Officer Siemens North America Pensions

David F. Holstein Retired Senior Vice President & Investment Specialist Capital Group Companies

Raymond Kanner Retired Managing Director & Chief Investment Officer IBM Retirement Funds

Rosemarie Liu Shomstein Retired Senior Vice President & Deputy Chief Investment Officer AXA Equitable Life Insurance Company

Lorie A. Slutsky President The New York Community Trust

Bruce W. Calvert, Senior Advisor Retired Chairman & Chief Executive Officer Alliance Capital Management (now known as AllianceBernstein)

Financial information about The New York Community Trust can be obtained by contacting us at: 909 Third Avenue, 22nd Floor, New York, New York 10022, (212) 686-0010, at www. nycommunitytrust.org, or as stated below: Florida: SC No. CH9514 A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE, WITHIN THE STATE, 1-800-HELP-FLA OR AT www.FloridaConsumerHelp.com REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE. Maryland: For the cost of postage and copying, from the Secretary of State. Michigan: MICS No. 22265. Mississippi: The official registration and financial information of The New York Community Trust may be obtained from the Mississippi Secretary of State’s office by calling 1-888-236-6167. New Jersey: INFORMATION FILED WITH THE ATTORNEY GENERAL CONCERNING THIS CHARITABLE SOLICITATION AND THE PERCENTAGE OF CONTRIBUTIONS RECEIVED BY THE CHARITY DURING THE LAST REPORTING PERIOD THAT WERE DEDICATED TO THE CHARITABLE PURPOSE MAY BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY BY CALLING (973) 504-6215 AND IS AVAILABLE ON THE INTERNET AT http://www.state.nj.us/lps/ca/charfrm/htm. New York: A copy of our most recent financial report is available from the Charities Registry on the New York State Attorney General’s website at www.charitiesnys.com or, upon request, by contacting the NYS Attorney General, Charities Bureau, at 120 Broadway, New York, NY 10271 or at 212-416-8401. North Carolina: Financial information about this organization and a copy of its license are available from the State Solicitation Licensing Branch at (888) 830-4989 (within N.C.) or (919) 814-5400 (outside N.C.). Pennsylvania: The official registration and financial information of The New York Community Trust may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1-800-732-0999. Virginia: From the State Office of Consumer Affairs in the Department of Agriculture and Consumer Affairs, P.O. Box 1163, Richmond, VA 23218. Washington: From the Charities Program at 1-800-332-4483, or www.sos.wa.gov/charities. West Virginia: West Virginia residents may obtain a summary of the registration and financial documents from the Secretary of State, State Capitol, Charleston, WV 25305. Wisconsin: A financial statement of the organization disclosing assets, liabilities, fund balances, revenue and expenses for the preceding fiscal year will be provided to any person upon request. CONTRIBUTIONS ARE DEDUCTIBLE FOR FEDERAL INCOME TAX PURPOSES IN ACCORDANCE WITH APPLICABLE LAW. REGISTRATION IN A STATE DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION OF THE NEW YORK COMMUNITY TRUST BY THE STATE.