Welcome to the first annual report for the San Angelo Area Foundation.

The Foundation was created in 2002 through a collaborative vision of community leaders along with the trustees of the San Angelo Health Foundation. The Health Foundation granted one million dollars to the San Angelo Area Foundation to be used to create its first unrestricted endowment fund as well as operational funds to help get this new community foundation started.

This grant has helped lessen the pressure on the start-up overhead of this organization, and we are glad to have an expense/asset ratio of 2.6% for our first full year of operations. This expense ratio will continue to decrease as assets continue to grow. This vision truly allows more of a donor’s dollar to go toward philanthropy.

In our first annual report, you will also see much evidence of the tremendous support from many folks who believe in the concept of a vibrant community foundation.

The financial numbers show the Foundation with assets of $6.7 million at the end of 2003. As of fall 2004, the number of funds created at the Foundation has increased the assets to $9 million. To date, we have received donations from more than 250 people and more than 60 funds have been created.

Foundation investments are growing rapidly. Funds on hand for all of 2003 grew an average of 25%. This type of growth helps ensure our funds will be able to award grants, even during down times.

We are grateful to the many organizations and people who dedicate their efforts to helping others. We are equally grateful to our donors who believe enough in this community to provide the resources that support those on the front lines.

If you are learning about the SAAF for the first time, we welcome your questions and comments in person or by telephone or email. Together, we can all help build a strong foundation that helps us all build a stronger community.

Yours truly,

F.L. (Steve) Stephens
Chairman of the Board

Matt Lewis
President & CEO