Consolidated Financial Statements and Report of
Independent Certified Public Accountants
June 30, 2023 and 2022

Independent Auditors’ Report
Board of Directors
The Pew Charitable Trusts:
OpinionWe have audited the consolidated financial statements of The Pew Charitable Trusts and its subsidiaries (theOrganization), which comprise the consolidated statement of financial position as of June 30, 2023, and therelated consolidated statement of activities, and cash flows for the year then ended, and the related notes tothe consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, thefinancial position of the Organization as of June 30, 2023, and the changes in their net assets and their cash
flows for the year then ended in accordance with U.S. generally accepted accounting principles.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica (GAAS). Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to
be independent of the Organization and to meet our other ethical responsibilities, in accordance with therelevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.
Other Matter
The consolidated financial statements of the Organization as of and for the year ended June 30, 2022 wereaudited by another auditor, who expressed an unmodified opinion on those statements on November 30, 2022.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with U.S. generally accepted accounting principles, and for the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there areconditions or events, considered in the aggregate, that raise substantial doubt about the Organization’s ability
to continue as a going concern for one year after the date that the consolidated financial statements are issued.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance andtherefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control. Misstatements are considered material if there is a

substantial likelihood that, individually or in the aggregate, they would influence the judgment made by areasonable user based on the consolidated financial statements.
In performing an audit in accordance with GAAS, we:●

Exercise professional judgment and maintain professional skepticism throughout the audit.

●

Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks. Suchprocedures include examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements.

●

Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Organization’s internal control. Accordingly, no such opinion is expressed.

●

Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of theconsolidated financial statements.

●

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, thatraise substantial doubt about the Organization’s ability to continue as a going concern for a reasonable
period of time.

We are required to communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, and certain internal control related matters that
we identified during the audit.

McLean, Virginia
November 30, 2023

The Pew Charitable Trusts
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(In thousands)
As of June 30,

ASSETS

2023

Cash and cash equivalents
Accounts receivable
Prepaid expenses
Contributions receivable, net
Investments
Property and equipment, net
Operating lease right-of-use assets
Beneficial interest in supporting charitable trusts
Retirement plan assets
Other assets
Total assets

2022

$

24,408 9l
338
3,978
16,924
1,069,000
178,168
16,6985,928,541
3,717
486

$

2,597
547
3,993
12,9291,033,685
183,734
19,387
6,016,440
3,325
455

$

7,242,258$

7,277,092$

10,383
9,328
119,393
24,09831,532
124,535
7,549
1,709

$

9,820
9,455
133,184
27,88531,001
130,749
14,3403,330

LIABILITIES AND NET ASSETSLIABILITIES
Accounts payable and accrued expenses
Accrued vacation
Grants payable, net
Operating lease liabilities
Accrued pension and postretirement obligation
Bonds payable, net
Interest rate swaps
Other liabilities
Total liabilities

359,764

328,527

NET ASSETS
Without donor restrictions
With donor restrictions - other
With donor restrictions - beneficial interest in trusts

946,109
39,081
5,928,541

Total net assets

7h
7g
7f

873,819
27,0696,016,440
6,917,328

6,913,731

Total liabilities and net assets$

7,242,258

The accompanying notes are an integral part of these consolidated financial statements.
4$

7,277,092

The Pew Charitable Trusts
CONSOLIDATED STATEMENT OF ACTIVITIES(In thousands)
Year ended June 30, 2023

Without donor
restrictions
Revenues
Distributions from supporting charitable trusts
Contributions
Investment returns, net
Other revenue
Net assets released from restrictions$

269,169
93
59,977
1,337
101,130

With donor
restrictions$

57,80255,050290(101,130)

Total

$

326,971
55,14360,267
1,337-

Total revenues

431,706

12,012443,718

Operating expenses
GrantsProgramManagement and generalFundraising

108,711
213,311
38,247
6,593-

108,711
213,311
38,247
6,593

Total operating expenses

366,862-

366,862

Change in net assets from operating activities

64,84412,012

76,856

Non-operating activities
Change in fair value of beneficial interest in trusts
Change in fair value of interest rate swaps
Net periodic benefit cost other than service cost
Other changes in postretirement benefits

6,791
2,448
(1,793)(87,899)-(87,899)
6,791
2,448
(1,793)

Change in net assets

72,290(75,887)(3,597)

873,819

6,043,509

6,917,328

Net assets, beginning of year

6d

Net assets, end of year

6h$946,109$

5,967,622

The accompanying notes are an integral part of these consolidated financial statements.
5$

6,913,731

The Pew Charitable Trusts
CONSOLIDATED STATEMENT OF ACTIVITIES(In thousands)
Year ended June 30, 2022

Without donor
restrictions
Revenues
Distributions from supporting charitable trusts
Contributions
Investment returns, net
Other revenue
Net assets released from restrictions$

246,766
99(119,012)
1,392
76,469With donor
restrictions$

52,992
19,574
91(76,469)

Total$

299,758
19,673(118,921)
1,392-

Total revenues

205,714(3,812)201,902

Operating expenses
GrantsProgramManagement and generalFundraising

132,423
204,578
35,3496,223-

132,423
204,578
35,3496,223

Total operating expenses

378,573-378,573

Change in net assets from operating activities(172,859)(3,812)(176,671)

Non-operating activities
Change in fair value of beneficial interest in trusts
Change in fair value of interest rate swaps
Net periodic benefit cost other than service cost
Other changes in postretirement benefits

16,3271,604
5,474(182,587)-(182,587)
16,3271,604
5,474(149,454)(186,399)(335,853) 9a

1,023,273

6,229,908

7,253,181

Change in net assets
Net assets, beginning of year

6d

Net assets, end of year

6h873,819 6g$$

6,043,509

The accompanying notes are an integral part of these consolidated financial statements.
6$

6,917,328

The Pew Charitable Trusts
CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
Years ended June 30,
2023
Cash flows from operating activities
Change in net assets
Adjustments to reconcile change in net assets to net cash provided by operating
activities
Depreciation
Amortization
Net realized and unrealized (gains) losses on investments
Change in beneficial interest in supporting charitable trusts excluding distributions
Change in accrued pension and postretirement obligation
Change in fair value of interest rate swaps
Changes in assets and liabilities
Accounts receivable
Prepaid expenses
Contributions receivable, net
Retirement plan assets
Operating lease right-of-use assets and liabilites
Beneficial interest in supporting charitable trusts, distributions
Accounts payable and accrued expenses
Accrued vacation
Grants payable, net
Other assets and liabilities

$

2022

(3,597)$(335,853)

6,921
62(33,822)(239,072)
531(6,791)

6,747
62
140,117(117,171)(10,372)(16,327)209
15(3,995)(392)(1,098)326,971563(127)(13,791)(1,652)

(52)
(64)
2,444
4,388
(1,290)299,758
601(822)
22,3892,704

30,935(2,741)(907,975)
906,482(1,355)(1,154,746)
1,162,046(1,010)(2,848)6,290(6,276)(6,060)Net cash used in financing activities(6,276)(6,060)Net increase (decrease) in cash and cash equivalents

21,811(2,511)

2,597

5,108

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investments
Sale of investments
Purchase of property and equipment
Net cash (used in) provided by investing activities
Cash flows from financing activities
Payment of bond principal

Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year$

Total interest paid was $4,177 and $4,598 for the years ended June 30, 2023 and 2022, respectively.

The accompanying notes are an integral part of these consolidated financial statements.
7

24,408$2,597

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(In thousands)
June 30, 2023 and 2022

NOTE A - ORGANIZATION
The accompanying consolidated financial statements present the financial position, activities, and cash flows of The
Pew Charitable Trusts (Pew) and its subsidiaries, The Pew Research Center (the Center) and the Elections Trust
Initiative, LLC (ETI, formerly known as the Election Performance Project, LLC) (collectively, the Organization). All
significant intra-Organization accounts and transactions have been eliminated in consolidation.
With primary offices in Philadelphia, Pennsylvania and Washington, D.C., and other locations throughout the world,
Pew serves the public interest by improving public policy, informing the public, and invigorating civic life.
The Center and ETI are based in Washington, D.C. The Center is a nonpartisan “fact tank” that informs the public
about the issues, attitudes, and trends shaping America and the world. ETI is a nonpartisan charitable grant-making
fund working to strengthen the field of election administration in the United States.
In addition to funding, Pew provides the Center and ETI with administrative support services, including fundraising,accounting, human resources, facilities management, and technology services.
Pew and the Center are Pennsylvania nonprofit corporations, recognized as exempt from federal income tax as
publicly-supported charitable organizations described under Section 501(c)(3) of the Internal Revenue Code of 1986.
ETI is a Delaware limited liability company whose sole member is Pew; it is treated as a disregarded entity for federal
income tax purposes. The Organization has no material uncertain tax positions.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation
The accompanying consolidated financial statements have been prepared and are presented on the accrual basis ofaccounting in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of revenues and expenses during the reported
period. The most significant management estimates relate to the determination of useful lives of property andequipment, actuarial estimates for the Organization’s pension and postretirement plans, value of the beneficial
interest in supporting charitable trusts, value of interest rate swaps, functional expense allocation, and fair value ofcertain of the Organization’s assets and liabilities. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Organization considers cash, short-term securities purchased with an original maturity of three months or less,and money market mutual funds to be cash and cash equivalents. Cash and cash equivalents held in brokerage
accounts are reported as investments and not considered cash and cash equivalents for purposes of the cash flow
statements. The Organization’s cash and cash equivalents are held in accounts that are not covered by federal
deposit insurance or have balances in excess of federally insured limits. The Organization has not experienced losseson these accounts and believes that it is not exposed to significant credit risk.

8

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

Beneficial Interest in Supporting Charitable Trusts
Pew is the sole beneficiary of seven individual trusts established by the children of Sun Oil Company founder Joseph
N. Pew and his wife, Mary Anderson Pew. As the trustee for each of the trusts, The Glenmede Trust Company, NA(Glenmede) is responsible for the management of trust assets and for making the required annual distributions toPew. Distributions from the trusts are based on a formula which in part is determined by the value of their assets.
Pew’s beneficial interest in the trusts is reported at the fair value of the assets held by the trusts, and is classified in
net assets with donor restrictions.
The investments held by the trusts consist of cash and cash equivalents, government obligations, corporate
obligations, mutual funds, equity securities, and asset-backed securities, as well as various alternative investments
including hedge, real estate, and private equity funds.
In the absence of a readily determinable fair value, the fair value of alternative investments is based on the valuation
as reported by the respective fund managers. Glenmede corroborates the valuations by reviewing the audited
financial statements of the underlying funds, when available, and information provided by the fund managers,
general partners, and research performed by Glenmede. At June 30, 2023 and 2022, the trusts held alternative
investments with a fair value of $4,394,225 and $4,680,507, respectively. Alternative investments carry certain risks,
including reduced regulatory oversight, liquidity risk, interest rate risk, and market risk.
Investment returns
Investment returns consist of realized and unrealized gains and losses, interest, and dividends, net of investment
management fees.
NOTE C - FINANCIAL ASSETS AND LIQUIDITY
Investments consist of liquid financial assets, including cash, investment grade short-to-medium-term fixed-income
securities, and equity funds. Undesignated investment balances sufficient to meet six months or more of operating
costs are continually maintained. Cash balances are monitored to ensure short term operating needs are met.
Financial assets available for general expenditures within one year were as follows at June 30:
2023

2022

Cash and cash equivalents
Accounts receivable
Contributions receivable due within one year
Investments, net of donor-advised funds$

24,408338
9,527
945,236

$

2,597
547
6,541
893,776

Financial assets available for general expenditures within one year$

979,509$903,461

NOTE D - CONTRIBUTIONS REVENUE AND RELATED CONTRIBUTIONS RECEIVABLE, NET
Unconditional contributions, including cash, promises to give, and other assets are recorded as revenue at fair value
when received. Contributions receivable are recorded at the present value of expected future cash flows discounted
at rates ranging from 0.87% to 4.87%. Conditional contributions are recorded as revenue when stipulated conditions

9

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

are substantially met. Contributions whose stipulated conditions had not been met, and for which revenue had notbeen recognized, as of June 30, 2023 and 2022 were $43,634 and $36,440, respectively.
Management monitors receivables to determine if an allowance is needed. There was no allowance for doubtful
accounts at June 30, 2023 and 2022, as management deems all receivables to be collectible.
Contributions receivable were expected to be collected as follows at June 30:

Less than one year
One to five years
Thereafter$

Present value discountContributions receivable, net

$

2023
9,527
7,907
74
17,508(584)
16,924

$

2022
6,541
6,644
139
13,324(395)$

12,929NOTE E - FAIR VALUE MEASUREMENTS
The Organization has categorized its financial instruments into a three-level fair value hierarchy, based on the priorityof the inputs to the valuation technique. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). The three levels of the hierarchy are:Level 1

Financial assets and liabilities whose values are based on unadjusted quoted prices in active
markets that are accessible at the measurement date for identical unrestricted assets or liabilities.

Level 2Financial assets and liabilities whose values are based on one or more of the following:
1. Quoted prices for similar assets or liabilities in active markets;
2. Quoted prices for identical or similar assets or liabilities in non-active markets;
3. Pricing models whose inputs are observable for substantially the full term of the asset or
liability; or
4. Pricing models whose inputs are derived principally from, or corroborated by, observable
market data through correlation or other means for substantially the full term of the asset or
liability.

Level 3Financial assets and liabilities whose values are based on valuation techniques that require inputs
that are both significant to the fair value measurement and unobservable. These inputs reflect
management’s judgments regarding the assumptions a market participant would use in pricing theasset or liability.

10The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

When the inputs used to measure fair value fall into different levels of the fair value hierarchy, the reported level isbased on the lowest level of input that is significant to the fair value measurement. The Organization’s assessmentof the significance of a particular input to the fair value measurement in its entirety requires judgment and considers
factors specific to the asset or liability.
The Organization’s financial assets and liabilities measured at fair value by level within the fair value hierarchy wereas follows at June 30:
2023
Level 1

Level 2

Level 3

Total

AssetsInvestments
Cash and cash equivalents
U.S. Treasuries
Mutual funds
Equity securities
Corporate obligations
Asset-backed securities
Mortgage-backed securities
Government obligations
Total investments$

Beneficial interest in
supporting charitable trusts

87,143
214,319
89,872272,038
663,372$

196,880
93,263
94,68820,797
405,628$-$

87,143
214,319
89,872272,038
196,880
93,263
94,68820,797
1,069,000--

5,928,541

5,928,541

3,717

-

-

3,717

Retirement plan assets
Mutual funds
Liabilities
Interest rate swaps

$

-

$

11

7,549

$

-

$

7,549

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

2022
Level 1

Level 2

Level 3

Total

AssetsInvestments
Cash and cash equivalents
U.S. Treasuries
Mutual funds
Equity securities
Corporate obligations
Asset-backed securities
Mortgage-backed securities
Government obligations
Total investments$

46,605
221,433
160,293
197,910626,241

Beneficial interest in
supporting charitable trusts
Retirement plan assets
Mutual funds$

210,222
90,17394,021
13,028407,444$-$

46,605
221,433
160,293
197,910210,222
90,17394,021
13,0281,033,685--

6,016,440

6,016,440

3,325

-

-

3,325

Liabilities
Interest rate swaps

$

-

$

14,340$-$14,340Changes in the fair value of Level 3 assets were as follows for the years ended June 30:
2023

2022

Balance, beginning of year
Change in fair value of assets
Distributions from supporting charitable trusts$

6,016,440
239,072(326,971)$

6,199,027
117,171(299,758)

Balance, end of year$

5,928,541$

6,016,440

12

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

NOTE F - PROPERTY AND EQUIPMENT, NET
Property and equipment are capitalized at cost and depreciated using the straight-line method over their estimateduseful lives. Land is recorded at cost and is not depreciated. Maintenance and repairs are expensed as incurred. The
estimated useful lives of depreciable assets are as follows:
Building
Building improvements
Furniture and equipment
Information technology equipment and software
Leasehold and tenant improvements

39 years
Remaining useful life of the building
7 years
3 years
Lesser of the useful life of the improvements or lease term

Property and equipment at June 30 consisted of:
2023
Land
Building and tenant improvements
Furniture and equipment
Information technology equipment and software
Leasehold improvements$

90,000130,911
7,515
29,114
11,673
269,213(91,045)$

90,000131,4127,460
28,918
11,793
269,583(85,849)$

178,168$

183,734

Accumulated depreciation
Property and equipment, net

2022

NOTE G - LEASESThe Organization has operating leases for offices in Philadelphia, Washington, D.C., and other locations, as well as
for office equipment. Certain office space is subleased to third parties.
The leases have remaining terms ranging from one to six years. Based on the Organization’s reasonably certain
expectations at the time it entered these leases, the lease terms exclude periods covered by lease extension options
and include periods covered by lease termination options.
The Organization has made an accounting policy election to discount all leases at the risk-free rate for periods
comparable with that of the individual lease terms.

13

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

The components of lease cost were as follows for the years ended June 30:
2023
Operating lease cost
Variable lease cost
Sublease income$

Total lease cost

$

2022

4,141

$

32
(182)
3,991

4,134
89
(261)

$

3,962

Supplemental information related to leases was as follows for the years ended June 30:
2023
Operating cash flows from operating leases
Right-of-use assets obtained in exchange for new operating leaseliabilities
Weighted-average remaining lease term
Weighted-average discount rate

2022

$

(5,274)$(5,376)

$

663

$

-

5 years
2.90%

6 years
2.86%

Maturities of lease liabilities are as follows for the years ending June 30:
2024
2025
2026
2027
2028
Thereafter

$

4,744
4,620
4,532
4,657
4,762
2,818
26,133

Less imputed interest(2,035)

Operating lease liabilities$

24,098NOTE H - GRANTS PAYABLE, NET
Grants payable are recorded at the present value of expected future payments, discounted at rates ranging from
0.24% to 4.87%. Conditional grants are recognized when the stated conditions are met. Pew had unpaid conditional
grants outstanding of $83,293 and $69,023 at June 30, 2023 and 2022, respectively, whose conditions had not been
met as of these dates.

14

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

Grants payable are expected to be paid as follows for the years ending June 30:
2024
2025
2026
2027
2028
Thereafter$

86,84019,401
6,731
3,877
3,900
1,963
122,712(3,319)Present value discountGrants payable, net$

119,393

NOTE I - BONDS PAYABLE, NET
At June 30, 2023 and 2022, Pew had $125,440 and $131,715, respectively, of tax exempt bonds outstanding with amaturity date of April 1, 2038. The interest rate on the bonds was 3.96% and 0.91% on June 30, 2023 and 2022,
respectively. This rate is set through a weekly public remarketing of the bonds and generally reflects the weekly
index rate published by the Securities Industry and Financial Markets Association (SIFMA). The bonds arecollateralized by an irrevocable letter of credit which expires on October 24, 2024. The bonds are remarketed weekly
by a remarketing agent on a best efforts basis. If the bonds tendered are not remarketed, the letter of credit is inplace to satisfy the bond obligation. If the liquidity facility provided by the letter of credit is drawn upon, Pew isobligated to repay the principal on demand. Pew expects that bonds submitted for tender will continue to beremarketed successfully due to the credit-worthiness of the letter of credit provider. The letter of credit requiresthat Pew comply with certain financial covenants with which it was in compliance for the year ended June 30, 2023.
The available amount under the letter of credit as of June 30, 2023 was $127,502.
Principal payments are due as follows for the years ending June 30:
2024
2025
2026
2027
2028
Thereafter

$

6,495
6,720
6,960
7,205
7,455
90,605
125,440(905)$

124,535

Deferred financing costs, net of amortization
Bonds payable, net

Bond interest expense for the years ended June 30, 2023 and 2022 totaled $3,296 and $308, respectively.

15

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

NOTE J - INTEREST RATE SWAPSPew entered into the following interest rate swap agreements to hedge interest rate exposure on its variable rate
tax exempt bonds:
Pew expensed $903 and $4,265 under the interest rate swap agreements for the years ended June 30, 2023 and2022, respectively.
Notional amount

Maturity date

Fixed rate

Floating rate

$62,058$63,382

4/1/2038
4/1/2038

3.366%
3.327%

67% of USD-LIBOR
67% of USD-LIBORNOTE K - NET ASSETS
Based on the existence or absence of donor-imposed restrictions, resources are classified as follows:
Net assets without donor restrictions are free of donor-imposed stipulations. Revenues, gains, and losses thatare not restricted by donors and all expenses are included in this classification.
Net assets with donor restrictions are subject to donor-imposed stipulations that may be met by actions of
the Organization, the passage of time, or both. Revenues, gains, and losses that are restricted by donors areincluded in this classification. Satisfaction of donor restrictions on net assets are reported as net assets
released from restrictions.
Two of the supporting charitable trusts are purpose restricted. Distributions from the J. Howard Pew Freedom Trust
are restricted to purposes related to freedom, the American form of government, and religious faith. Distributions
from the Medical Trust are restricted to general medical purposes, including research, education, treatment, andconvalescence. Distributions from the J. Howard Pew Freedom Trust and the Medical Trust were fully expensed asof June 30, 2023 and 2022. Net assets with donor restrictions at June 30 consisted of the following:
2023

2022

Specific programmatic expenditures
Beneficial interest in trusts$

39,081
5,928,541$

27,0696,016,440

Total net assets with donor restrictions$

5,967,622$

6,043,509

NOTE L - RETIREMENT PLANS
401(k) Plan
Organization-funded 401(k) contributions for the years ended June 30, 2023 and 2022 were $13,988 and $13,916,
respectively.

16

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

Supplemental Employee Retirement Plan Assets
Certain Pew employees participate in a supplemental employee retirement plan (SERP) that provides employer
contributions above the Internal Revenue Service 401(k) limit. The SERP is now frozen. The SERP assets andcorresponding liabilities are included in the consolidated statements of financial position in retirement plan assets
and accrued pension and postretirement obligation, respectively.
Postretirement Medical and Life Insurance Plan
Retirees who are eligible to participate in The Pew Charitable Trusts Retiree Health and Welfare Plan (the Plan) bymeeting certain requirements, including a combination of a minimum service requirement and a minimum age
requirement, may receive health insurance premium reimbursement benefits, and life insurance benefits. The Plan
was amended in June 2016 to eliminate coverage for staff who retire on or after July 1, 2016, with the exception ofcertain grandfathered employees who meet stated requirements. The Plan is unfunded and Pew pays benefits asthey become due.
The following table summarizes the changes in the benefit obligation for the years ended June 30:
2023

2022

Benefit obligation, beginning of year
Service cost
Interest cost
Actuarial gain
Benefits paid$

26,220922
1,292(1,213)(765)$

31,794
1,221
943(7,029)(709)

Benefit obligation, end of year$

26,456$

26,220

The actuarial gains for the years ended June 30, 2023 and 2022 were primarily due to an increase in the discountrate and a decrease in the cost assumption, partially offset by losses from plan experience. The actuarial gain for theyear ended June 30, 2022 was also impacted by an increase in the assumed rate of spousal participation.
Net periodic benefit cost was comprised of the following for the years ended June 30:
2023

2022

Service cost
Interest cost
Amortization of prior service cost
Recognized actuarial gain

$

922
1,292
(917)
(2,854)

$

1,221
943
(917)
(1,347)

Net periodic benefit cost$

(1,557)

$

(100)

17

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

Other changes in plan assets and benefit obligations recognized in net assets without donor restrictions consistedof the following for the years ended June 30:
2023

2022

Net actuarial loss
Recognized actuarial gain
Recognized prior service cost$

(1,213)
2,854
917

$

(7,029)1,347
917

Total recognized in net assets without donor restrictions

$

2,558

$

(4,765)

$

1,001

$

(4,865)

Total recognized in net periodic benefit cost and net assets
without donor restrictions

Weighted average assumptions used to determine the benefit obligation and net periodic benefit cost were as
follows for the years ended June 30:

Discount rate
Assumed health care cost trend rates
Initial trend rate (flat-dollar subsidy)
Ultimate trend rate (flat-dollar subsidy)
Year ultimate trend rate is reached (flat-dollar subsidy)
Initial trend rate (Medicare cost)
Ultimate trend rate (Medicare cost)
Year ultimate trend rate is reached (Medicare cost)

2023

2022

5.25%

5.00%

3.00%
3.00%
2023
6.75%
4.50%
2032

3.00%
3.00%
2022
7.00%
4.50%
2032

Future benefits are expected to be paid as follows for the years ending June 30:
2024
2025
2026
2027
2028
2028-2032

$

904
1,070
1,238
1,369
1,518
9,098

NOTE M - GUARANTEESPew is a guarantor of a lease agreement for office space occupied by a Pew grantee. The lease term extends throughFebruary 28, 2026. Cumulative remaining lease payments under this lease agreement at June 30, 2023 total $717.
No liability has been recorded for this guaranty.

18

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

NOTE N - CLASSIFICATION AND ALLOCATION OF EXPENSES
Expenses benefiting multiple functions are allocated on the basis of estimated time and effort or the proportion of
full-time employee equivalents attributable to each function. The Organization’s expenses by functional andnatural classification were as follows for the years ended June 30:
2023
Grants andProgram
Grants
Personnel
Professional services
Office and occupancy
Travel and meetings
Subscriptions and publications
Depreciation and amortization
Bond and swap interest
Other

$

Total operating expenses
Net periodic benefit cost otherthan service cost
Total expenses$

108,711
137,437
40,254
12,569
8,712
1,952
5,799
3,416
3,172

Management
and GeneralFundraising$$

27,364
4,615
2,436
369
155
1,005
664
1,639

5,454
211
254
183
82
179
119
111

Total
$

108,711
170,255
45,08015,259
9,264
2,189
6,983
4,199
4,922

322,022

38,247

6,593

366,862(1,927)

(437)

(84)

(2,448)320,095$

19

37,810

$

6,509

$

364,414

The Pew Charitable Trusts
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED(In thousands)
June 30, 2023 and 2022

2022
Grants andProgram
Grants
Personnel
Professional services
Office and occupancy
Travel and meetings
Subscriptions and publications
Depreciation and amortization
Bond and swap interest
Other

$

Total operating expenses
Net periodic benefit cost otherthan service cost
Total expenses$

132,423
137,084
37,271
12,178
3,930
1,689
5,580
3,735
3,111

Management
and GeneralFundraising$$

26,026
3,315
2,503
186
117
1,036
699
1,467

5,292
152
230
63
38
193
139
116

Total
$

132,423
168,40240,73814,911
4,179
1,844
6,809
4,573
4,694

337,001

35,3496,223

378,573(1,275)

(275)

(54)

(1,604)

335,726$

35,074

$

6,169

$

376,969

NOTE O - SUBSEQUENT EVENTSThe Organization evaluated subsequent events through November 30, 2023, the date the consolidated financial
statements are issued. Based on the Organization’s evaluation, no subsequent events meet the criteria under U.S.
GAAP for disclosure.

20