The Hertz Foundation’s role in expanding the national pipeline of science and technology leaders, accelerating their opportunities, and building an essential ecosystem of the nation’s top scientific minds is of vital importance to the health of our world.
Please take a few minutes to explore our financial information in more detail, and don't hesitate to contact us if you have any questions. We look forward to your continuing engagement and support.
In spite of increased inflation and continued volatility in the financial markets, the Hertz Foundation experienced a very strong fundraising year, raising $5.94 million from 362 fellows, organizations and other friends, 33 of whom were new donors. Our generous community provided fellowship support for 15 new Hertz Fellows, while ensuring that the fellowship experience is unparalleled in comparison to other graduate student funding programs, and that the Hertz Community continues to thrive.
A successful Anonymous Fellowship Challenge unleashed incredible generosity from our donors, helping to create 7 new named fellowships and 2 new endowed fellowships in the last year alone. Philanthropic support like this allows the foundation to identify and nurture brilliant and principled innovators whose work ensures that our nation’s economy, security and global leadership remain strong.
With the Hertz Foundation’s newly released 2023 Strategic Plan, we have ambitious goals to meet. We simply cannot do this work without you, our generous partners. We are incredibly grateful for your commitment to the Hertz Foundation and for your continued support.
While the annual percentage of fellows who supported the foundation (24%) topped graduate alumni giving to most every major U.S. research university, we did see participation from Hertz Fellows fall slightly. And although half of all Hertz Fellows have made at least one gift to the foundation, and almost 30% of our community gives consistently, we know that we need to continue to earn your support. Consistent annual giving is essential to achieving the mission of the foundation, and we thank fellows, parents, friends, staff and partners for making the Hertz Foundation a philanthropic priority.
The Hertz Foundation’s assets are increasing, putting us on a path to raise more funds and have an even greater outsized impact. As treasurer of the Hertz Board of Directors, I am pleased but never satisfied.
As of June 30, 2023, our assets totaled $35.7 million—an 11.9% increase from 2021—and included $395K in cash and equivalents, $4.4 million in pledges receivable and $30.95 million in the investment portfolio. Net assets increased 10.4% in 2023. For the sixth year in a row, our endowment withdrawal rate is below 5%, maintaining the goal set by the Board of Directors in 2016 and achieved just two years later.
A small—though telling—data point is that we withdrew $1 million in 2023 compared to $4 million in 2016. It is important that our finances stay strong as we continue to secure resources to support our 2023 Strategic Plan.
We have kept a conservative stance with our investment portfolio—a position we embraced in late 2021 that allowed us to skirt the 2022 market losses. Though this year we trailed markets, since September 1, we have vindicated our posture. The S&P index lost 5.3%, and 20-year bonds lost an astounding 13.7%.
Goldman Sachs manages our portfolio, and our investment committee, chaired by Michael Ansour, has tightly monitored and guided the asset allocations. For example, the committee decided not to follow the classic equity allocation of endowment portfolios, directing Goldman Sachs to a lower allocation and insisting that our equity and fixed income investments be done only in the United States. As a result, we have no exposure to emerging markets, China and even Europe. In spite of rising inflation and a volatile first half of the fiscal year, the investment balance increased by 21%.
To reiterate my “pleased but never satisfied” comment, we must continue to expand our fundraising efforts. Unlike universities, which also charge tuition, we rely solely on gifts and our investment portfolio to fund our fellows. Our costs to raise funds do not increase significantly as fundraising revenues increase; thus, additional gifts support Hertz Fellows directly.
As a tax-exempt charity, our fixed income investments are advantaged compared to those of our donors. If you are considering a donation and find fixed income attractive at these higher rates, consider accelerating a gift to the Hertz Foundation!
The Hertz Foundation is proud to be recognized with the highest rating from two of the world's top sources of information and evaluation on nonprofit organizations, indicating that donors can give with confidence knowing that their gifts will contribute meaningfully to the success of our mission.
Seal of Transparency
The Hertz Foundation has achieved the Platinum Seal of Transparency Rating on Guidestar, the world’s largest source of information on non-profit organizations. A platinum status demonstrates the Hertz Foundation’s exceptional trustworthiness, financial strength, fiscal management best practices, and tangible successful outcomes in support of its mission.
Give with Confidence
The Hertz Foundation has a 100% score on Charity Navigator, earning it a Four-Star rating, the highest indicator of organizational effectiveness and transparency from the world’s most-utilized independent charity evaluator. This powerful trust indicator demonstrates that donors can give with confidence due the Hertz Foundation’s financial health, fiscal responsibility, and accountability.
The Fannie and John Hertz Foundation is a tax-exempt 501(c)(3) not-for-profit organization.
Our tax ID is 36-2411723.