| Supplemental - Program Related Investments |
Form 990-PF, Part VIII-B |
The Foundation is engaged in grant-making activities and makes program related investments to further the Foundation's charitable purposes. Thus, all program administration expenses are allocated to grant making except direct expenses incurred with respect to program related investments.The Foundation has eight outstanding program-related investments at December 31, 2021.Loans totaling $3,650,000 to Neighborhood Progress, Inc.* (1956 W. 25th Street, Suite 200 Cleveland, Ohio 44113) were converted on June 30, 2003 to one new loan of $3,285,000 and one recoverable grant of $365,000, which are to be used to finance the construction of owner occupied and/or rental housing for low and low-to-moderate income families in economically depressed neighborhoods; to finance the purchase or development of real property in connection with neighborhood revitalization economic development projects; for low interest second mortgage loans to purchase newly constructed homes in economically depressed areas; to provide compensating balances and linked deposits with local banks to induce such banks to make long-term, low interest loans for use in financing neighborhood revitalization projects. The full amount of the loan and the recoverable grant were unpaid at December 31, 2021. Interest income of $65,700 was received in 2021. The last annual report reviewed was for the year ended June 30, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, Neighborhood Progress, Inc., has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from Neighborhood Progress, Inc., and, therefore, has not independently verified them. A loan of $2,000,000 was made on July 28, 2010 to University Circle Incorporated (UCI)* (10831 Magnolia Drive Cleveland, Ohio 44106) which is to be used to revitalize the neighborhood through community development and planning, including development of residential and commercial real estate projects located in the neighborhood. No principal payments were made in 2021. No interest was received in 2021. The last report received was dated November 5, 2021 for the year ended June 30, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, UCI has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from UCI and, therefore, has not independently verified them.A loan of $2,000,000 was made on December 15, 2010 to Museum of Contemporary Art (MOCA)* (8501 Carnegie Avenue Cleveland, Ohio 44106) which is to be used to plan, construct, equip and operate in the University Circle area of Cleveland, Ohio a facility to house exhibitions of contemporary visual art, archives and educational material. No principal payments were made in 2021. No interest was received in 2021. The most recent financial information reviewed was for the year ended July 31, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, MOCA has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from MOCA and, therefore, has not independently verified them.An investment of $25,000 was made on April 25, 2011 to Noteworthy Federal Credit Union (1900 Superior Ave, Ste. 126 Cleveland, Ohio 44114), which is to be used to make additional funds available for purposes of generating loans to individuals in the musical profession. This is a deposit account, so no principal payments were received in the current year. Interest income of $527 was received in 2021, which was added to the principal balance. The financial report received was dated December 20, 2021 for the period ending September 30, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, Noteworthy has used the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from Noteworthy and, therefore, has not independently verified them.A loan agreement was entered into on February 19, 2014 with Manufacturing Advocacy & Growth Network, Inc. (MAGNET)* (1768 E. 25th Street Cleveland, Ohio 44114) for $350,000. The loan was disbursed in three payments with the initial loan payment of $30,000 being made on February 19, 2014. The second disbursement of $143,200 was made on February 18, 2015. The third and final installment of $176,800 was disbursed on February 1, 2016. The loan is to be used to revive and strengthen the manufacturing sector in Northeast Ohio. Principal payments of $72,078 were made in 2021. Interest income of $1,114 was received in 2021. The most recent financial information reviewed was for the year ended June 30, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, MAGNET has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from MAGNET and, therefore, has not independently verified them. A loan agreement was entered on September 1, 2016 with Growth Opportunity Partners (Growth Ops)* (6701 Carnegie Avenue, Suite 100 Cleveland, Ohio 44103) for $250,000. The use of funds relates to assisting small and emerging businesses in Northeast Ohio. The remaining principal balance of $63,884 was paid in full during 2021. Interest income of $640 was received in 2021. The last financial report received was dated September 12, 2022 for the year ended December 31, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, Growth Ops has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from Growth Ops and, therefore, has not independently verified them.A loan agreement was entered on December 15, 2020 with Growth Opportunity Partners* (6701 Carnegie Avenue, Suite 100 Cleveland, Ohio 44103) for $2,000,000. The use of the funds relates to reducing greenhouse gas emissions, assisting small and emerging businesses, and aiding underserved low income and minority-led businesses in Northeast Ohio. No principal were received in 2021. Interest income of $15,000 was received in 2021. The last financial report received was dated September 12, 2022 for the year ended December 31, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, Growth Ops has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from Growth Ops and, therefore, has not independently verified them.A loan agreement was entered on December 18, 2020 with CHN Housing Capital (CHN)* (2999 Payne Avenue, Suite 134 Cleveland, Ohio 44114) for $3,000,000, of which $1,000,000 was disbursed on December 18, 2020. The use of the funds relates to reducing unsafe lead levels in rental and owned housing, assisting low-income landlords and owners of properties to rehabilitate their properties, and improving the health, welfare, and safety of children and other residents of Cleveland, Ohio. No principal payments were received in 2021. Interest income of $15,667 was received in 2021. The last financial report received was dated June 28, 2022 for the year ended December 31, 2021. To the Foundation's knowledge, based on the most recent report received by the Foundation, CHN has spent the subject funds for the purposes intended and has not diverted any of such funds from such purposes. The Foundation has no reason to doubt the accuracy or reliability of the reports it has received from CHN and, therefore, has not independently verified them.A subscription agreement was entered on December 15, 2020 for one unit of limited liability company interest in Opportunity CLE Loan Fund, LLC (1240 Huron Road, Suite 300, Cleveland, Ohio 44115) in the amount of $500,000. The purpose of the investment relates to making capital investments to support transformative, strategic, and catalytic projects that provide a positive social and economic return in targeted low-income communities across Northeast Ohio. To the Foundation's knowledge, Opportunity CLE has not diverted any of such funds from its intended purposes. The Foundation requires each PRI recipient to provide annual reports specifying that the funds provided through program related investments were spent in accordance with terms of the PRI agreement and were employed to accomplish the purpose of the PRI.*Section 501 (c)(3) organization classified as a public charity. |
| Additional Grant Program Information |
Form 990-PF, Part XV, Line 2A |
What We BelieveThe George Gund Foundation is rooted in Cleveland, the community that was the home of its founder and that remains the Foundation's home. The Foundation's commitment to Cleveland derives not just from our history but also from our belief that Cleveland can continue to develop original responses to issues that can benefit people everywhere. Our focus on Cleveland offers an important point of leverage to affect issues that go well beyond the city's boundaries and includes its roles as a place for innovation and an example and a leader in Ohio, which is a politically important state that can wield outsized influence nationally and, therefore, globally.Moreover, the urban emphasis of our work stems from a belief that thriving cities are and will remain one of the nation's best hopes for addressing essential issues. We invest in this place with an eye toward building the sense of community locally, nationally, and globally that human progress requires. We commit to this for the long term, working alongside those who are making concrete progress. We also acknowledge, however, that our work is often propelled by recognition that both Cleveland and any larger sense of community are threatened by powerful forces and divisive issues. Such challenges are many but three interrelated issues stand out: -climate change and environmental degradation, -entrenched and accelerating inequality, especially racial inequity, and -weakened democracy. Climate change is a threat to the very future of humanity. Its consequences grow more apparent even as many ignore both the evidence before their eyes and the scientific consensus that calls on all of us to act. In 2016 the world community reached an agreement in Paris that set targets for greenhouse gas reductions in order to limit global temperature rise to less than two degrees Celsius. The United States government turned its back on that accord for four years but rejoined in early 2021. In response to the interruption, many states, cities, businesses and foundationsincluding The George Gund Foundationasserted their commitment to the Paris goals and took action to help achieve them. Even if the Paris targets are achieved, however, human activity already has triggered a chain of damaging climate change and environmental degradation. Adaptation to these consequences is a growing need, and it is increasingly apparent that those who suffer first and foremost will disproportionately be people of color who live in more vulnerable locations and the poor who have fewer resources to adapt. Collective action across all sectors is required to meet these challenges.Inequality also is a worldwide issue and its American dimensions pose grave societal questions. Can the American dream of upward mobility survive in an economy that distributes benefits so unequally? How does the concentration of wealth at the top affect our capacity for justice and the effectiveness of our politics? Can we finally overcome the deep-rooted racial aspect of inequality that is so conspicuous in America, repair the enduring damage of slavery and undo the countless actions, decisions and policies throughout our country's history that have embedded racial inequity into nearly all societal systems? Cleveland has its own distinct version of this history and the racial dimension of inequality is present in nearly every community issue. Likewise, issues of justice for women, the LGBTQI community, people who are disabled, immigrants, refugees and others have become more prominent in recent years. The George Gund Foundation supports targeted groups as public discussion increasingly highlights them, and especially when they are attacked with language that is xenophobic and coarse.The effectiveness of government and the democratic processes that give it legitimacy have been eroded by both foreign and domestic attacks. These include international interference with our elections, state-by-state efforts to restrict voting under the guise of preventing fraud, general apathy that has depressed voting turnout and the corrosive effect on our politics of vast amounts of money from secret sources. These distortions call into question both the willingness and the ability of government to tackle issues such as racial inequality and climate change. And the corrosion of democracy extends beyond the walls of government. Free and robust media, already unsettled by changing technology and business models, have been under unprecedented assault, damaging our country's ability to reach the shared understanding of issues so necessary to a functioning democracy. This lack of common ground has contributed to a broader decline of social cohesion and public participation in many aspects of community life. We support renewed civic engagement and democracy because they are essential to moving forward.These are great challenges, but we are continually inspired by the undaunted individuals and organizations fighting for progress. Our Foundation strives to support them through all of our work with a special emphasis on community in the various senses of that word. "Community" means a continued emphasis on Cleveland with its many needs and opportunities to be a stronger communityinclusive and welcoming for all, vibrant and successful in a global economy, and using its unique assets and resources to provide global lessons. But "community" is not just an expression of geographic proximity; it necessarily represents an inclusive outlook. In elevating community we promote and demand equity, especially with attention to those groups that continue to be victimized by systemic exclusion. Through all of our grantmaking we support efforts to unite people in community, to resist the forces that divide us into factions. "Community" also expresses our belief in democracy and its aspiration to give everyone a meaningful voice in shaping our common destiny. Without a vigorous, inclusive and functioning democracy, there can be no realistic opportunity for justice in a society beset with racial, economic and political division. We are encouraged by the countless opportunities to build the powerful collective forces that are essential to meet the challenges we face. How We WorkOur sense of community extends to how we do our work. Our program areas reflect major fields of activity that continually intersect and overlap. We work together internally as we assess grant requests and we strive for collaborative and meaningful relationships with partners. We also collaborate on issues with grantees and others in ways that go beyond making grants. We assist, convene, highlight, and advocate when it is appropriate. We recognize that everyone must contribute to the fight against climate change and we expect our grantee organizations to adopt efforts to do so. We support organizations on their journey to advance and achieve racial equity, as we are, and we expect all of our partners to actively learn about how racism continues to infect our society and to pursue ways of defeating it. We lift up the active voice of nonprofit organizations in policy deliberations as they are among the most well-informed and persuasive advocates in the halls of government and their push for policy change often can have far greater benefit for their constituents than direct charitable aid. We pursue opportunities across program areas to rebuild a vibrant democracy because all organizations and all individuals have important roles to play as advocates for active citizenship, voting rights, fair elections and honest, effective government.What We FundClimate and environmental justice. We support the use of Cleveland's unique environmental history and leadership, especially regarding water, to advance a healthy and sustainable future. In particular, we focus on projects and policies that contribute to the fight against climate change. Linked to every aspect of life, climate change increasingly threatens human lives. We support organizations led by and serving communities of color and others who historically have been underrepresented and are the most vulnerable to the effects of climate change. We support organizations that develop and advocate for public policy on climate change and to advance clean energy, transportation, water, and air. We invest in organizations that work to mitigate climate change by promoting sustainable land use, creation of accessible green spaces in Cleveland, environmental justice and the ability of all to live in a safe and healthy environment.Creative culture and arts. We promote a vibrant, diverse, and thriving arts community in Cleveland that enhances learning, strengthens pride of place, creates an emotional connection to our environment, and deepens the impact of opportunities for those who might otherwise be denied them. We seek to balance support among Cleveland's legacy institutions and smaller, emerging organizations that reflect the full breadth of our culture and neighborhoods. We promote equity by helping to fortify organizations led by and serving people of color who have been historically underrepresented. We support the Cleveland Metropolitan School District's plan to help students realize their full creative and intellectual potential through rich artistic experiences. And we encourage integrating the creative thought, energy, and inspiration that art can spark into the civic dialogue and sense of community that are needed to make progress on the complex issues that confront us. Public education. We support public education because it is fundamental to American democracy. It promotes the common good, brings together children and families across different cultures, and serves all students, regardless of means, ability, or circumstances. We believe in |