The Nieman Foundation completed a successful programmatic year and leadership transition in FY11, despite a continuing decline in revenue. This was the second year of sharp reductions in Harvard’s endowment distributions, with an 8 percent decline over fiscal 2010. Current-use gifts, some of which are intended to be used in future years, offset the endowment decline somewhat, with total revenue down by 5 percent.
Expenses increased by five percent, primarily due to an increase in spending for the Nieman Journalism Lab, which received sponsorship for investigations into the future of news. Other expenses remained flat and in some areas we were able to spend less, resulting in a positive balance of $263,000.
Our balance sheet strengthened in FY11, thanks to the Harvard Management Company, with the market value of long-term investments growing 15 percent to $120 million. With the $1 million pay down on the mortgage at the end of FY10, our construction debt is down to $552,000. Total net assets are at the $125 million mark.
As the Nieman Foundation evolves its programs and initiatives, we anticipate the need for increased financial resources. We look forward to partnering with organizations and alumni in fulfillment of our mission.