SAE Foundation Annual Report 2017 - SAE-18

SAE Foundation
Notes to the Financial Statements (Continued)

4. Pledges Receivable (Continued)
Unconditional promises to give due in more than one year are reflected at the present value of
estimated future cash flows using discount rates ranging from 1.7% to 4%.
At December 31, 2017, 76% of pledges receivable were due from two donors. Pledges receivable
from two donors represents 89% of total pledge income in 2017. At December 31, 2016, 76% of
pledges receivable were due from two donors. Pledges receivable from two donors represents 94%
of total pledge income in 2016.
Conditional pledges of approximately $47,000 at December 31, 2017 and 2016 represents amounts
that are receivable upon annual review and approval by the donor. Since the pledges are
conditional, they have not been recorded in the accompanying financial statements.

5. Charitable Gift Annuities
The Foundation received charitable gift annuities aggregating to $477,000. The gift annuity
agreements call for annual annuity payments totaling $39,750 for the term of the donors' natural
lives. The present value of estimated future payments to the donors is calculated based on a
discount rate ranging from 1.8% to 4.2% and applicable mortality tables. At December 31, 2017,
the remaining liability on the annuities was approximately $111,000. The current portion of
approximately $40,000 is recorded in accounts payable and accrued expenses and the long-term
portion of approximately $71,000 is recorded in charitable gift annuities in the accompanying
statements of financial position.

6. Expenses
Expenses by functional classifications were as follows:
December 31,

2017

2016
(in thousands)

Program service
General and administrative
Fundraising

2,208
411
300

2,165
397
204

Expenses

2,919

2,766

Certain costs not charged directly to a program have been allocated among the programs and
supporting services benefited based on the Foundation's cost allocation plan.

SAE Foundation Annual Report 2017

Table of Contents for the Digital Edition of SAE Foundation Annual Report 2017