- Location: New York
- Website: https://www.metlife.com
Ensuring Access. Empowering Communities.
MetLife Foundation has gone global, with a new mission of bringing financial inclusion to low-income communities around the world.
“This was an ambitious and exciting year for MetLife Foundation as we expanded the reach of our work and made significant strides toward our new goal of ensuring financial inclusion Message from Steven A. Kandarian for people in need around the globe.” Chairman, President & CEO of MetLife, Inc. We believe in the transformative power of improved savings outcomes for low- and “MetLife is committed to affordable, convenient financial services, and moderate-income communities in the U.S. being a world-class company we have already begun to see the impact that our new focus can have. Thanks to the In all cases, our contributions and efforts in everything it does. efforts of our partners, we are helping to are guided by the three pillars of our vision: With the repositioning of build a more secure future for low-income Access to Knowledge, Access to Services and individuals, families and communities. Access to Insights. MetLife Foundation, we are now pursuing a world- The following pages detail our contributions With sustained commitment to our mission for this year and highlight steps taken toward and our partners, MetLife Foundation class philanthropic goal – our ambitious commitment of $200 million looks confidently to a future where people strengthening the financial to financial inclusion over the next five years. everywhere have the financial tools to Among our first round of initiatives is a achieve their dreams and pursue more from capabilities of underserved global educational partnership with Sesame life. As always, we welcome your ideas, populations around the world.” Workshop. This partnership, to which we’ve insights and support as we bring our vision made a five-year, $20 million commitment, to life. will allow us to reach close to 75 million young families. We have also partnered with the Corporation for Enterprise Development on an action- A. Dennis White research project to test strategies for President & CEO, MetLife Foundation 1.
Why Financial Inclusion? Our Vision Is Based on Three MetLife Foundation Believes: Powerful Pillars Our financial support has a role to play in Access to Knowledge bringing the organizations that serve low-income Increasing low-income families’ communities together with fellow innovators in readiness, willingness and ability to engage with the technology and product development to deliver financial sector quality, affordable financial services. In collaboration with our not-for-profit and for- Access to Services profit partners, we can deliver information and Delivering high-quality financial products and services like services to underserved individuals and families savings and credit to help them manage their money reliably and efficiently. Access to Insights We can play a critical role as aggregators of Investing in research and sharing what we learn with the industry knowledge, best practices and peer financial inclusion community learning to ensure financial inclusion for those who need it most. 2.
Key Initiatives 2013 Corporation for Enterprise Development United States Learning What Encourages People Women’s World to Save Money Banking Creative approaches to savings and financial Brazil, Mexico & Peru services have shown tremendous success engaging low-income communities and Building a Safety Net Pro Mujer for Women and Families putting people on the path to financial Mexico Around the world, far too many women live stability. That’s why the Corporation for Expanding Financial Services without a safety net to temper the hardship Enterprise Development (CFED) is helping in Oaxaca of a health emergency. With support from six not-for-profit organizations across the U.S. MetLife Foundation, Women’s World Over 23 years, Pro Mujer has educated develop and test new ideas for innovative Banking (WWB) is addressing this critical issue and empowered more than 1.5 million Latin savings products and strategies. With MetLife by developing new affordable health insurance American women, developing a proven model Foundation support, CFED is launching a products. In Peru, WWB created a hospital that combines financial services, business dynamic Savings Innovation Learning Cluster, cash policy for women that will launch in training and healthcare. MetLife Foundation which will use a peer learning model to help 2014, and the organization is currently has funded the opening of Pro Mujer’s new these partners pursue common and unique developing another new product based on a Neighborhood Center in Oaxaca, contributing solutions that can help low-income households MetLife Foundation-funded feasibility study to the creation of 35 communal banks. achieve their financial goals. in Mexico. WWB will take the findings from Along with financial services, the Center will these projects and expand its work throughout provide management training and healthcare Latin America and into Africa and the Middle initiatives such as glucose testing and nutrition East. counseling, helping women in Mexico’s second poorest state build healthier, more secure lives for themselves and their families. 3.
Seoul Welfare CGAP and Foundation through King Baudouin Give2Asia Foundation Russia Trickle Up South Korea Financial Inclusion Landscapes and Intensive Financial Training India Opportunities Research for Low-Income Families Educating and Empowering As one of 34 donor members of Consultative Without adequate skills and preparation, low- the Ultra-Poor Group to Assist the Poor (CGAP), MetLife income communities struggle to take advantage Trickle Up has been remarkably successful of formal financial services. Seoul Welfare Foundation supports both their overall mission in helping those earning less than $1.25 a Foundation (SWF) reaches households directly to improve financial services for low-income day take the first steps out of poverty. Their with its Family Financial Camp, an overnight people worldwide and a variety of special programs, which combine seed capital grants, program that helps families develop financial initiatives. King Baudouin Foundation, also skills training and mentoring, lift households goals and the strategies to achieve them. With a MetLife Foundation grantee, conducted initial MetLife Foundation’s support, SWF will help insights research in Russia and then launched up and help to break the multi-generational 18,000 low-income families establish savings a partnership with CGAP to delve deeper into cycle of poverty. With support from MetLife accounts and the skills and confidence to the state of financial inclusion there, seeking Foundation, Trickle Up is implementing its use them effectively. They will also conduct leverage points to create better opportunities graduation model—a staged process that for low-income Russians. Leveraging grantees’ market research to better understand these helps women build greater skills to provide expertise and strengths develops both greater communities and help to develop new services for their economic lives—in Odisha and West that support the financially excluded. insights for the financial inclusion field and Bengal. These efforts will bring women greater stronger relationships among industry peers knowledge of and access to financial services, and professionals. along with useful community connections. 4) 4.
JA Worldwide Poland Developing Financial Skills in Sesame Workshop Young People Sharing Financial Knowledge Each year, JA Worldwide empowers more With Young Families Around the World than 10 million young people to own their economic future through hands-on education Sesame Workshop sets the global standard for making topics like math, reading and in entrepreneurship, work readiness and science accessible to young children and their families. Now—with a five-year, $20 financial literacy. Building on more than 30 million commitment from MetLife Foundation—Sesame Street programming will help years of collaboration, JA has now launched children and caregivers around the world become more financially capable. This new the MetLife Foundation Older Youth initiative will reach close to 75 million people in up to 10 countries, starting with Brazil, Development project across five countries. China, India and Mexico. In Poland, a new Entrepreneurial School is increasing secondary school teachers’ access Expanding on their already successful partnership, Sesame Workshop and MetLife to entrepreneurial resources for the classroom. Foundation will create targeted, multimedia programs designed to help low-income This project, along with initiatives in Russia, families realize their financial goals. Content will focus on practical everyday lessons of Egypt, Korea and Mexico, is empowering basic numeracy, self-regulation and key social skills that encourage financial inclusion. disadvantaged youth to take control of their MetLife Foundation and Sesame Workshop will also work to build a coalition of local lives and succeed in the global economy. partnerships to help deliver these programs, ensuring that as many families as possible have access to the financial knowledge and tools they need to put them on the path to financial security. 5.
Financial Inclusion Profile: Local Initiatives Support Corporation and Suyapa Perez Offering dedicated financial coaching paired with creative tools, Meeting with her financial coach, Perez Financial Opportunity Centers (FOCs) throughout the U.S. help clients learned basic money management skills, such as savings, credit building and even how to boost earnings, build credit and make educated financial decisions. Local write a check. She then passed these skills on to Initiatives Support Corporation (LISC) is using a $2.25 million grant her children, bringing them to their community bank to open accounts of their own. from MetLife Foundation to strengthen the reach and impact of its nationwide network of FOCs and help more low-income individuals In less than a year, Perez began to save nearly $300 a month, and her family plans to be free achieve financial stability and independence. of credit card debt by the end of 2014. She has said that LISC’s FOC network “allows you to believe in yourself,” and benefits of the In April 2013, Perez came to Boston’s CONNECT FOC have empowered her whole family—her Suyapa Perez is a 51-year-old mother of three FOC, where she worked with a financial coach husband started his own small business, and and the wife of, in her words, “an honorable to document a budget, finding that household two of her three children have enrolled in and hard-working man.” When Perez emigrated expenses far exceeded income and that she and college programs. with her family from Honduras in 2000, she her husband were incurring credit card debt to left behind a career as a primary school teacher, make ends meet. She worked on her finances but after arriving in the U.S., she could only in the context of her goals, which included find work cleaning or doing menial tasks in becoming a minister and seeing her children restaurant kitchens. graduate from college in the U.S. 6.
MetLife Foundation Board of Directors Board Officers Staff Michael Zarcone Stacey Lituchy Eric Goldberg Chairman of the Board Assistant Treasurer April Hawkins Frans Hijkoop Robert C. Tarnok Mavel Jones Controller Michel Khalaf Rick Love Phyllis Zanghi Maria R. Morris Counsel and Secretary Charles Pettigrew Evelyn Stark John Rosenthal Treasurer Krishna Thacker Oscar Schmidt Eric Steigerwalt Christopher Townsend A. Dennis White President and CEO 7.
Organization Location 2013 Paid Organization Location 2013 Paid Financial Inclusion Alzheimer’s & Healthy Aging Access to Knowledge Alzheimer’s Financial Overview Behavioral Ideas Lab (ideas42) NY 5,000 Alzheimer’s Association IL 300,000 Center for Community Self Help NC 800,000 Alzheimer’s Association, Korea Korea 75,000 Credit Builders Alliance DC 50,000 Alzheimer’s Association, NYC Chapter NY 35,000 Girl Scouts of the USA NY 75,000 Alzheimer’s Disease International IL 200,000 Grameen Foundation DC 5,000 Alzheimer’s Disease Research Foundation MA 250,000 Junior Achievement of New Jersey NJ 1,000,000 Awards for Medical Research working Junior Achievement Worldwide CO 1,305,000 with American Federation for Junior Achievement (Various) Various 94,000 Aging Research Various 700,000 Local Initiatives Support Corporation NY 2,000,000 Dana Alliance for Brain Initiatives NY 60,000 Pro Mujer NY 150,000 Museum of Modern Art NY 50,000 Sesame Workshop NY 3,600,000 National Council of La Raza DC 100,000 The Resource Foundation NY 288,200 Alzheimer’s Total $1,770,000 Trickle Up Program NY 250,000 Access to Knowledge Total $9,622,200 Healthy Aging Access to Services American Federation for Aging Research NY 220,000 Center for Financial Services Innovation IL 250,000 American Society on Aging CA 150,000 Common Ground Communities NY 250,000 Children’s Health Fund NY 500,000 Community Reinvestment Fund MN 150,000 Encore.org CA 500,000 Corporation for Enterprise Development DC 800,000 Council for Adult and D2D Fund MA 240,000 Experiential Learning IL 125,000 FINCA International DC 110,000 EngAGE CA 50,000 Habitat for Humanity International GA 250,000 Generations United DC 280,000 Innovations for Poverty Action CT 150,000 Gerontological Society of America DC 100,000 Local Initiatives Support Corporation NY 250,000 Grantmakers in Health DC 8,500 Rockefeller Philanthropy Advisors working Johns Hopkins School of Public Health MD 150,000 with Bankable Frontiers Associates MA 500,000 Jumpstart for Young Children MA 250,000 SaveUSA NY 230,000 National Center for Creative Aging DC 100,000 Technoserve DC 250,000 National Council on the Aging DC 100,000 The Financial Clinic NY 30,000 NCB Capital Impact VA 250,000 Access to Services Total $3,460,000 Partners for Livable Communities DC 125,000 Rubin Museum of Art NY 50,000 Access to Insights Healthy Aging Total $2,958,500 Accion International MA 364,000 Alzheimer’s & Healthy Aging Total $4,728,500 Consultative Group to Assist the Poor DC 500,000 Corporation for Enterprise Development DC 250,000 Community Development Encore.org CA 250,000 Give2Asia/country research CA 16,250 American Red Cross/Hurricane Give2Asia working with Seoul Sandy Relief NY 145,000 Welfare Foundation CA 201,944 AmeriCares Foundation CT 100,000 Give2Asia working with Vietnam BELL Foundation MA 50,000 Microfinance Working Group CA 184,523 Boston Foundation MA 40,000 Global Banking Alliance for Women NY 350,000 Chicago Community Loan Fund IL 50,000 King Baudouin Foundation Citizens Committee for New York City NY 25,000 United States/country research NY 310,000 Community Hope NJ 15,000 MDRC NY 82,000 Community Loan Fund of New Jersey NJ 35,000 Microfinance Centre Foundation Poland 235,000 Enterprise Community Partners MD 300,000 National League of Cities DC 250,000 Food Bank Initiative Various 400,000 United Way Worldwide VA 140,000 Give2Asia/Sichuan Earthquake Women’s World Banking NY 555,000 Disaster Relief CA 162,000 Access to Insights Total $3,688,717 Housing and Community Development Network of NJ NJ 25,000 8. Financial Inclusion Total $16,770,917
Organization Location 2013 Paid Organization Location 2013 Paid Interfaith Food Pantry NJ 10,000 Americas Society NY 75,000 International Medical Corps/Japan Arts Council of the Morris Area NJ 10,000 Earthquake and Tsunami Rebuilding Asian American Arts Alliance NY 25,000 Efforts CA 150,000 Association of Children’s Museums DC 235,000 Living Cities NY 450,000 Ballet Hispanico of New York NY 125,000 Local Initiatives Support Corporation NY 485,000 Baltimore Symphony Orchestra MD 15,000 Local Initiatives Support Corporation/ Boston Symphony Orchestra MA 25,000 Veterans Housing NY 150,000 Brooklyn Academy of Music NY 50,000 Massachusetts Association of CDCs MA 10,000 Brooklyn Children’s Museum NY 35,000 Neighborhood Housing Services Carnegie Hall NY 50,000 of New York City NY 50,000 Catalog for Giving of NYC NY 10,000 One Fund Boston MA 100,000 Chamber Music Society of Lincoln Center NY 35,000 Robin Hood/Hurricane Sandy Relief NY 15,000 Charlotte Symphony Orchestra Society NC 25,000 Trust for Public Land CA 402,500 Chicago Children’s Museum IL 25,000 United Way Worldwide/Argentina Children’s Museum of Manhattan NY 200,000 Flood Relief and Recovery VA 21,000 Cityfolk OH 10,000 Community Development Total $3,190,500 Dancing Wheels OH 35,000 EMCArts NY 492,000 Civic Engagement Grantmakers in the Arts WA 10,000 Greater Hartford Arts Council CT 35,000 American Corporate Partners/ Hartford Symphony Orchestra CT 30,000 Veterans Mentoring NY 50,000 High Line NY 50,000 ARC of the United States DC 100,000 Holocaust Memorial Foundation of Illinois IL 15,000 Blue Star Families/Military Families VA 500,000 HT Chen & Dancers NY 30,000 CASA of Morris & Sussex Counties NJ 15,000 Japan Society NY 60,000 Damon Runyon Cancer Research Jewish Museum NY 20,000 Foundation NY 400,000 Joyce Theater NY 30,000 Foundation Center NY 7,500 Lincoln Center for the Performing Arts NY 50,000 Hiring Our Heroes DC 50,000 Los Angeles Philharmonic CA 25,000 Human Rights Campaign Foundation DC 25,000 Lower East Side Tenement Museum NY 15,000 Independent Sector MD 15,000 Manhattan Theatre Club NY 25,000 Lawyers Alliance for New York NY 10,000 Mark Morris Dance Company NY 125,000 Midland Adult Services NJ 10,000 Metropolitan Museum of Art NY 130,000 Morristown Neighborhood House NJ 25,000 Miami Art Museum FL 25,000 National Organization on Disability DC 100,000 Midori Foundation NY 50,000 National Urban League NY 500,000 Mint Museum of Art NC 50,000 New York Blood Center NY 250,000 Morris Museum NJ 10,000 New York City Partnership Foundation NY 70,000 Munson Williams Proctor Institute NY 10,000 PFLAG DC 35,000 Museum of Science and Industry FL 25,000 Regional Plan Association NY 25,000 Museum of Science, Boston MA 50,000 Riverfront Recapture CT 10,000 National Guild for Community Rosie’s Place MA 10,000 Arts Education NY 300,000 SAGE NY 50,000 National Performance Network LA 25,000 Somerset County Business Partnership NJ 10,000 New England Foundation for the Arts MA 300,000 ULI Foundation DC 2,500 New York Botanical Garden NY 600,000 University of Scranton PA 10,000 New York City Ballet NY 25,000 Women In Need NY 20,000 New York City Center NY 175,000 Wounded Warrior Project FL 15,000 New York Hall of Science NY 125,000 Civic Engagement Total $2,315,000 New York Philharmonic NY 325,000 New York Public Library NY 25,000 Arts & Culture New York Public Radio NY 50,000 Orpheus Chamber Orchestra NY 150,000 Aaron Davis Hall NY 35,000 Pan Asian Repertory Theatre NY 15,000 Alvin Ailey Dance Foundation NY 90,000 Paper Mill Playhouse NJ 15,000 American Symphony Orchestra League NY 160,000 9.
Organization Location 2013 Paid Organization Location 2013 Paid Paul Taylor Dance Foundation NY 125,000 National 4-H Council MD 200,000 Ping Chong Company NY 35,000 National Association of Elementary School Principals VA 250,000 Financial Overview Providence Children’s Museum RI 25,000 Public Theater NY 35,000 National Association of Secondary Repertorio Español NY 100,000 School Principals VA 415,000 Sphinx Organization MI 25,000 National FFA Foundation IN 21,250 St. Louis Art Museum MO 10,000 New Teacher Center CA 425,000 St. Louis Symphony Orchestra MO 20,000 Opportunity Network NY 25,000 State Theatre Regional Arts Center Police Athletic League NY 50,000 at New Brunswick NJ 15,000 Reach Out and Read/Military Families MA 100,000 Studio in a School Organization NY 50,000 Reading Excellence and Discovery Studio Museum in Harlem NY 25,000 Foundation NY 7,500 Tampa Bay Performing Arts Center FL 25,000 Rhode Island Mentoring Partnership RI 15,000 Theatre Communications Group NY 250,000 School Leaders Network MA 150,000 Theatre Development Fund NY 15,000 STRIVE OH 250,000 Whitney Museum of American Art NY 100,000 United Negro College Fund NY 50,000 Young Audiences NY 50,000 Wake Education Partnership NC 5,000 Arts & Culture Total $5,667,000 Wellness in the Schools NY 15,000 What Kids Can Do RI 50,000 Youth/Education YMCA of Metropolitan Chicago IL 15,000 Youth/Education Total $6,406,250 ACCESS MA 175,000 ACHIEVE DC 150,000 Employee-Related Programs Actuarial Foundation IL 10,000 Afterschool Alliance DC 300,000 Employee Children’s All Stars Project NY 100,000 Scholarship Programs Various 411,407 Alliance for Excellent Education DC 100,000 Employee Volunteer Programs Various 1,211,325 American Indian College Fund CO 15,000 Local United Ways Various 891,000 Asia Society NY 250,000 Matching Gifts Various 896,951 Association of American Colleges Employee-Related Programs Total $ 3,410,683 and Universities DC 250,000 Big Brothers Big Sisters of America PA 370,000 Grand Total $42,488,850 Boys & Girls Clubs of America GA 370,000 Boys & Girls Club of Trenton & Mercer County NJ 5,000 Boys & Girls Clubs of Hartford CT 25,000 Center for Teaching Quality NC 200,000 Center on School, Family and Community Partnerships MD 75,000 Children’s Aid Society NY 50,000 Citizen Schools NY 150,000 City Year MA 150,000 College Summit DC 200,000 Cornerstone OnDemand Foundation CA 35,000 Developmental Studies Center CA 500,000 Editorial Projects in Education MD 250,000 Education Pioneers CA 80,000 Farm Foundation IL 5,000 Girls, Inc. NY 50,000 Greater Johnstown YMCA PA 12,500 Hispanic Scholarship Fund CA 30,000 INROADS MO 50,000 Learning Forward OH 300,000 Madison Area YMCA NJ 5,000 MENTOR: The National Mentoring 10. Partnership MA 100,000
INDEPENDENT AUDITORS’ REPORT or error. In making those risk assessments, the auditor considers internal To the Board of Directors of MetLife Foundation: control relevant to the Foundation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate We have audited the accompanying financial statements of MetLife in the circumstances, but not for the purpose of expressing an opinion on the Foundation (the “Foundation”), which comprise the statements of financial effectiveness of the Foundation’s internal control. Accordingly, we express position as of December 31, 2013 and 2012, and the related statements of no such opinion. An audit also includes evaluating the appropriateness of activities and changes in net assets and cash flows for the years then ended, accounting policies used and the reasonableness of significant accounting and the related notes to the financial statements. estimates made by management, as well as evaluating the overall presentation Management’s Responsibility for the Financial Statements of the financial statements. Management is responsible for the preparation and fair presentation We believe that the audit evidence we have obtained is sufficient and of these financial statements in accordance with accounting principles appropriate to provide a basis for our audit opinion. generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the Opinion preparation and fair presentation of financial statements that are free from In our opinion, the financial statements referred to above present fairly, in all material misstatement, whether due to fraud or error. material respects, the financial position of the Foundation as of December 31, 2013 and 2012, and the changes in its net assets and its cash flows for the years Auditors’ Responsibility then ended in accordance with accounting principles generally accepted in the Our responsibility is to express an opinion on these financial statements based United States of America. 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected February 19, 2014 depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud METLIFE FOUNDATION STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2013 AND 2012 ASSETS NOTES 2013 2012 Investments: Investments, at fair value: Equity investments $151,164,794 $132,287,923 Short-term investments 14,496,291 28,192,568 Program-related investments 1 4,012,690 3,512,691 Total investments 169,673,775 163,993,182 Cash and cash equivalents 1 9,315,562 2,321,933 Due and accrued investment income 3,472 3,859 TOTAL ASSETS $178,992,809 $166,318,974 LIABILITIES AND NET ASSETS NOTES 2013 2012 Cash overdraft 1 $ 2,848,511 $ 925,589 Amounts payable for investments acquired 1,855,269 7,999,203 Accrued expenses and other payables 317,425 447,500 Federal excise tax payable 362,429 164,547 Total liabilities 5,383,634 9,536,839 Net assets – unrestricted 173,609,175 156,782,135 TOTAL LIABILITIES AND NET ASSETS $178,992,809 $166,318,974 See notes to financial statements 11.
METLIFE FOUNDATION STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 REVENUE NOTES 2013 2012 Investment income: Dividends and interest $ 3,461,763 $ 3,351,804 Change in fair value of investments 1 11,820,558 8,196,133 Contributions from MetLife 3 45,000,000 47,500,000 Total revenue 60,282,321 59,047,937 GRANTS AND EXPENSES Grants: Paid 42,488,850 41,107,662 General expenses 4 651,549 498,800 Federal excise tax 5 314,882 225,980 Total grants and expenses 43,455,281 41,832,442 CHANGE IN NET ASSETS 16,827,040 17,215,495 Net assets – beginning of year 156,782,135 139,566,640 NET ASSETS – end of year $173,609,175 $156,782,135 See notes to financial statements METLIFE FOUNDATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 CASH FLOWS FROM OPERATING ACTIVITIES: 2013 2012 Change in net assets $ 16,827,040 $ $17,215,495 Adjustments to reconcile change in net assets to net cash provided by operating activities: Change in fair value of investments (11,820,558) (8,196,133) Accretion of discount/amortization of premiums on investments (12,015) (15,089) Change in due and accrued investment income 387 5,051 Change in cash overdraft 1,922,922 503,419 Change in accrued expenses and other payables (130,075) 446,000 Change in federal excise tax payable/recoverable 197,882 225,979 Net cash provided by operating activities 6,985,583 10,184,722 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 72,114,286 40,618,668 Purchase of investments (72,106,240) (50,812,057) Net cash provided by (used in) investing activities 8,046 (10,193,389) NET CHANGE IN CASH AND CASH EQUIVALENTS 6,993,629 (8,667) Cash and cash equivalents – beginning of year 2,321,933 2,330,600 CASH AND CASH EQUIVALENTS – end of year $ 9,315,562 $ 2,321,933 Supplemental disclosures of cash flow information – Federal excise taxes paid $ 117,000 $- See notes to financial statements 12.
METLIFE FOUNDATION December 31, 2012, this allowance was results could differ from these estimates. NOTES TO FINANCIAL STATEMENTS zero. In addition, the income generated Since the obligation to make payment FOR THE YEARS ENDED DECEMBER 31, 2013 by the program-related loans is generally of conditional multi-year grants and AND 2012 dependent upon the financial ability of program-related loans is dependent upon the borrowers to keep current on their each grantee/borrower’s satisfaction of The MetLife Foundation (the “Foundation”) obligations. For disclosure purposes, a the applicable conditions, the amount of was formed for the purpose of supporting reasonable estimate of fair value was not conditional multi-year grants and program- various philanthropic organizations and made since the difference between fair value related loans reported as commitments activities, principally in the United States. and the outstanding indebtedness or cost is based upon the expected or estimated During 2013, the Foundation began an would not be significant. Maturities of the fulfillment of such conditions. initiative of devoting resources to advancing loan investments range from 2021 through financial inclusion, helping to build a secure 2022. 2. FAIR VALUE future for individuals and communities The Foundation has elected to measure its around the world. Cash Equivalents and Cash Overdraft – Cash equity investments, short-term investments equivalents are highly liquid investments and cash equivalents at fair value with 1. ACCOUNTING POLICIES purchased with an original or remaining related holdings gains and losses reported in Summary of Significant Accounting Policies maturity of three months or less at the date investment income. The Foundation’s financial statements of purchase and are carried at fair value. The Foundation generally invests funds required When developing estimated fair values, the have been prepared in accordance with Foundation considers three broad valuation accounting principles generally accepted in for cash disbursements in cash equivalents and transfers such funds to its operating techniques: (i) the market approach, (ii) the United States of America (“GAAP”) which the income approach, and (iii) the cost recognize income when earned and expenses bank account when checks are presented for payment. The cash overdrafts at December approach. The Foundation determines the when incurred. most appropriate valuation technique to 31, 2013 and December 31, 2012 represent Investments at Fair Value – The Foundation’s grant disbursements that cleared the use, given what is being measured and equity investments are principally comprised operating bank account in 2014 and 2013, the availability of sufficient inputs, giving of Exchange Traded Funds (ETFs). Short- respectively. priority to observable inputs. The Foundation term investments include investments with categorizes its assets and liabilities measured remaining maturities of one year or less, but Contributions – All contributions received at estimated fair value into a three-level greater than three months, at the time of to date by the Foundation have been hierarchy, based on the significant input with acquisition. Related holdings gains and losses unrestricted and, therefore, all of its the lowest level in its valuation. The input are reported in investment income. The net assets are similarly unrestricted. All levels are as follows: Foundation is not exposed to any significant contributions received during 2013 and 2012 have been from MetLife, Inc. and subsidiaries Level 1 concentration of credit risk in its investment Unadjusted quoted prices in active markets portfolio. (“MetLife”). for identical assets or liabilities. The Grants – Such transactions are authorized by Foundation defines active markets based Program-Related Investments – Such the Board of Directors. Conditional grants on average trading volume for equity investments are authorized by the Board authorized for payment in future years are securities. The size of the bid/ask spread is of Directors and represent loans to or subject to further review and approval by the used as an indicator of market activity for equity investments in qualified charitable Foundation. fixed maturity securities. organizations or investments for appropriate charitable purposes as set forth in the Estimates – The preparation of the financial Level 2 Internal Revenue Code and regulations statements in conformity with GAAP requires Quoted prices in markets that are not thereunder, and are carried at outstanding management to make estimates and active or inputs that are observable either indebtedness or cost. An allowance for assumptions that affect the reported directly or indirectly. These inputs can possible losses is established when the amounts of assets and liabilities and the include quoted prices for similar assets or Foundation does not expect repayment in disclosure of contingent assets and liabilities liabilities other than quoted prices in Level full on any program-related loan and when at the date of the financial statements and 1, quoted prices in markets that are not such uncollectible amount can be reasonably the reported amounts of revenues and active, or other significant inputs that are estimated. As of December 31, 2013 and expenses during the reporting period. Actual observable or can be derived principally 13.
from or corroborated by observable Considerable judgment is often required market data for substantially the full term in interpreting market data to develop of the assets or liabilities. estimates of fair value, and the use of different assumptions or valuation Level 3 methodologies may have a material effect on Unobservable inputs that are supported the estimated fair value amounts. by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants Recurring Fair Value Measurements would use in pricing the asset or liability. The assets and liabilities measured at Financial markets are susceptible to severe estimated fair value on a recurring basis and events evidenced by rapid depreciation in their corresponding placement in the fair asset values accompanied by a reduction in value hierarchy presented below. asset liquidity. The Foundation’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Total Estimated Level 1 Level 2 Level 3 Fair Value December 31, 2013: Equity investments $151,149,794 $- $ 15,000 $151,164,794 Short-term investments 12,196,345 2,299,946 - 14,496,291 Cash equivalents - 9,199,864 - 9,199,864 Total $163,346,139 $11,499,810 $ 15,000 $174,860,949 December 31, 2012: Equity investments $132,272,923 $- $ 15,000 $132,287,923 Short-term investments 27,192,568 - 1,000,000 28,192,568 Cash equivalents - 2,099,780 - 2,099,780 Total $159,465,491 $ 2,099,780 $1,015,000 $162,580,271 14.
The following describes the valuation Level 2 Valuation Techniques and Key Inputs: Short-term investments methodologies used to measure assets and liabilities at fair value. The description This level includes short-term investments These investments are principally valued includes the valuation techniques and key and cash equivalents priced principally using the market approach. Valuations are inputs for each category of assets or liabilities by independent pricing services using based primarily on matrix pricing or other that are classified within Level 2 and Level 3 observable inputs. These securities are similar techniques that utilize unobservable of the fair value hierarchy. principally valued using the market inputs or inputs that cannot be derived approach. Valuation is based primarily principally from, or corroborated by, Equity Investments, Short-term Investments on quoted prices in markets that are not observable market data; and inputs including and Cash Equivalents active or using matrix pricing or other quoted prices for identical or similar similar techniques using standard market securities that are less liquid and based on When available, the estimated fair value observable inputs such as benchmark U.S. lower levels of trading activity than securities of these financial instruments is based on Treasury yield curve, the spread off the U.S. classified in Level 2. Certain valuations are quoted prices in active markets that are Treasury yield curve for the identical security based on independent non-binding broker readily and regularly obtainable. Generally, and comparable securities that are actively quotations. these are the most liquid of the Company’s traded. securities holdings and valuation of these Transfers between Levels securities does not involve management’s Level 3 Valuation Techniques and Key Inputs: judgment. During the years ended December 31, 2013 In general, securities classified within Level 3 and 2012, there were no transfers between When quoted prices in active markets are not use many of the same valuation techniques levels. available, the determination of estimated fair and inputs as described previously for Level 2. value is based on market standard valuation However, if key inputs are unobservable, or methodologies, giving priority to observable if the investments are less liquid and there is inputs. The significant inputs to the market very limited trading activity, the investments standard valuation methodologies for are generally classified as Level 3. The certain types of securities with reasonable use of independent non-binding broker levels of price transparency are inputs that quotations to value investments generally are observable in the market or can be indicates there is a lack of liquidity or a lack derived principally from, or corroborated by, of transparency in the process to develop the observable market data. When observable valuation estimates, generally causing these inputs are not available, the market standard investments to be classified in Level 3. valuation methodologies rely on inputs that are significant to the estimated fair Equity investments value that are not observable in the market or cannot be derived principally from, or These investments are principally valued corroborated by, observable market data. using the market approach. Valuations are These unobservable inputs can be based based primarily on quoted prices in active in large part on management’s judgment markets that are readily and regularly or estimation and cannot be supported by obtainable and are classified in Level 1. reference to market activity. Even though Certain of these securities including privately these inputs are unobservable, management held securities, are valued based on the believes they are consistent with what market approach matrix pricing and the other market participants would use when inputs include quoted prices for identical pricing such securities and are considered securities that are less liquid and based on appropriate given the circumstances. lower levels of trading activity than securities classified in Level 2 and independent non- binding broker quotations. 15.
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2013 December 31, 2012 Impact of Increase in Significant Input on Estimated Valuation Techniques Unobservable Inputs Range Weighted Average (1) Range Weighted Average (1) Fair Value (2) Short-term • Consensus • Offered quotes (3) 100 - 100 100 Increase investments pricing (1) The weighted average for fixed maturity securities is determined based on (3) Range and weighted average are presented in accordance with the market the estimated fair value of the securities. convention for fixed maturity securities of dollars per hundred dollars of par. (2) The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes are based on liability positions. The following tables summarize the change of all assets measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3). There were no unrealized or realized gains (losses) on Level 3 assets during the years ended December 31, 2013 and 2012. December 31, 2013: Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 Equity investments $ 15,000 $- $- $- $ 15,000 Short-term investments 1,000,000 718 - (1,000,718) - Cash equivalents - - - - - Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 December 31, 2012: Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 Equity investments $ 15,000 $- $- $- $ 15,000 Short-term investments 3,999,553 447 1,000,000 (4,000,000) 1,000,000 Cash equivalents 2,198,718 514 - (2,199,232) - (1) Amortization of premium/discount is included within investment income. Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. 16.
3. CONTRIBUTIONS 5. FEDERAL TAXES In 2013 and 2012, MetLife contributed cash of $45,000,000 and $47,500,000, The Foundation is exempt from Federal income taxes; however, as a private respectively, to the Foundation. foundation, it is subject to Federal excise taxes on its net taxable investment income and realized capital gains. The rate for current excise taxes was 2% in 4. RELATED PARTY TRANSACTIONS 2013 and 2012. The rate for deferred excise taxes was 2% in 2013 and 2012. The Foundation is supported by MetLife. MetLife also provides the Foundation There were no uncertain tax positions taken by the Foundation as of December with management and administrative services. However, the Statements of 31, 2013. Activities and Changes in Net Assets do not include such costs since they are not significant. 6. COMMITMENTS As of December 31, 2013, the Board of Directors had authorized grants and program-related investments for future years as follows: Conditional Grants Program-Related Investments 2014 $ 4,350,000 $500,000 2015 4,100,000 2016 4,100,000 2017 4,100,000 $16,650,000 $500,000 As of December 31, 2013, none of the conditional grants required further review and approval by the Board of Directors prior to payment. 7. SUBSEQUENT EVENTS The Foundation has evaluated all subsequent transactions and events after the statement of financial position date and through February 19, 2014, which is the date these financial statements were available to be issued. There are no transactions or events requiring disclosure. 17.
MetLife Foundation 1095 Avenue of the Americas New York, NY 10036 www.metlife.org © 2013 METLIFE, INC. PHOTOGRAPHY: COVER (L-R): TRICKLE UP, ACCION USA INSIDE COVER: JOHN RAE FOR ACCION