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Structure and Financials of the Clinton Foundation
Structure of the Clinton Foundation
The Clinton Foundation is governed by a Board of Directors. Bruce Lindsay, a former Clinton Administration adviser, is the Chairman of the Board with Chelsea Clinton serving as the Vice Chair. Hillary Clinton aide Cheryl Mills, billionaire businessman Frank Giustra, and of course, President Clinton, of course, are also members of the Board.
Donna Shalala, the former Health and Human Secretary under the Clinton Administration, is the current CEO of the entire Clinton Foundation, but the various individual initiatives and spin off organizations also have their own CEOs. There are CEOs for the Clinton Global Initiative, Clinton Climate Initiative, Clinton Giustra Enterprise Partnership, Clinton Health Matters Initiative, and Clinton Development Initiative. Ira Magaziner, also another former Clinton Administration adviser, is the CEO of the Clinton Health Access Initiative, and Dr. Howell Wechsler runs the Alliance for a Healthier Generation. They are all part of what the Clinton Foundation calls their Leadership Team as of this writing in June 2015.
All the initiatives can seem like alphabet soup, but the main mission of the Clinton Foundation is grouped into five main issue areas:
- Climate Change
- Economic Development
- Girls and Women
- Global Health
- Health and Wellness
From these five issue areas comes the eleven major initiatives of the Clinton Foundation:
- Clinton Climate Initiative
- Clinton Development Initiative
- Clinton Foundation in Haiti
- Clinton Giustra Enterprise Partnership
- Clinton Global Initiative
- Clinton Health Matters Initiative
- Clinton Presidential Center
- No Ceilings: The Full Participation Project
- Too Small to Fail
Affiliate entities, meaning they’ve been spun off into their own organizations, round out the eleven, and they include:
- Alliance for a Healthier Generation
- Clinton Health Access Initiative
I’ll explain what each initiative does in more detail later on in this book, but for a quick guide through all of them, here they are. The Clinton Climate Initiative mainly works with reforestation assistance. The Clinton Development Initiative helps African farmers develop their lands. The Clinton Foundation in Haiti helps to rebuild the country after the earthquake (President Clinton was moved to help after visiting Haiti after the 2010 quake). The Clinton Giustra Enterprise Partnership works to develop microenterprises as well as helping to train skills of people in developing countries especially South America.
Next is the Clinton Global Initiative, and it’s like a proactive think tank revolving around annual meetings where members, mostly NGOs, the wealthy, and corporations, give pledges to make the world a better place. The Clinton Health Matters Initiative partners with state and local governments and nonprofits here in the US to develop and encourage nutrition and exercise plans. The Clinton Presidential Center is in Little Rock, AR, and the Clinton Foundation runs and maintains the facility and its grounds. The No Ceilings Project and Too Small to Fail seeks to educate on the progress of women’s rights as well as to educate parents and corporations on how best to provide children ages 0-5.
Of the affiliated entities, the Alliance for a Healthier Generation strives to reduce childhood obesity in the United States, and the Clinton Health Access Initiative, as mentioned before, has been responsible for lowering the prices of HIV/AIDS medication in the developing world.
The Clinton Foundation employs more than 2,000 people with its main offices in midtown New York with the Clinton Health Access Initiative based in Boston. It is considered an operating charity, which in philanthropic parlance means that the charity does the work themselves e.g. the World Wildlife Fund as opposed to a grant-making institution that hands out money to further its mission like the Rockefeller Foundation. In fact, other charities have given grants to the Clinton Foundation to further their missions. Charity Watch, a charity watchdog formerly called the American Institute of Philanthropy, has given the Clinton Foundation a grade of A out of a top grade of A+. According to their methodology, 89% of the Clinton Foundation’s expenditures are spent on charity with only 11% related to overhead expenses, above the average of 81% considered good for a charity.
On the latest 2013 financial statements (financial statements are a year behind – the 2013 financial statements was done in December 2014 with the 2014 financial statements coming December 2015), the Clinton Foundation detailed the financial position of their organization. These financial statements were audited by PricewaterhouseCoopers, one of the Big 5 accounting firms in the US, and they gave it their seal of approval.
As of 2013, the Clinton Foundation Statement of Financial Position reported total assets of about $351 million dollars with unrestricted cash and cash equivalents of that number at $65 million. Liabilities only came to $68 million dollars ($58 million of that is deferred revenue). Through 2013, they have raised $59 million dollars to their goal of $250 million for the Clinton Foundation endowment, designed to secure the financial future of the charity.
In the Statement of Activities, the Clinton Foundation had $292 million in revenue: $192 million in contribution and almost $93 million in grants. Expenditures amounted to $222 million dollars.
Here’s the breakdown:
As you can see, almost 89% of all expenditures went to charity. The Clinton Health Access Initiative got the lion’s share at 57%. The Clinton Global Initiative got 10% while the Clinton Presidential Center ate up just 5.5%.
For the overhead expenses, 7% went to managing the Foundation and 4.5% went to fundraising expenses. The use of numbers, however, can disguise the real life changing work of the Clinton Foundation so now it’s time to detail the individual work of the Foundation one by one over in the next set of articles of this hub.