The report accompanying these financial statements was issued by 

BDO USA, LLP, a Delaware limited liability partnership and the U.S. member 

of BDO International Limited, a UK company limited by guarantee. 

National Park Foundation

Financial Statements

For the Years Ended September 30, 2019 and 2018
National Park Foundation

Financial Statements

For the Years Ended September 30, 2019 and 2018
National Park Foundation

Contents

Independent Auditor’s Report 1-2

Financial Statements

Statements of Financial Position 3

Statements of Activities 4-5

Statements of Functional Expenses 6-7

Statements of Cash Flows 8

Notes to Financial Statements 9-30

Management Prepared Document

Appendix A – Management’s Discussion and Analysis A-1 – A-4
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part 

of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

1

Independent Auditor’s Report 

To the Board of Directors

National Park Foundation

Washington, D.C.

We have audited the accompanying financial statements of National Park Foundation (the 

Foundation), which comprise the statement of financial position as of September 30, 2019, and 

the related statements of activities, functional expenses, and cash flows for the year then ended, 

and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements 

in accordance with accounting principles generally accepted in the United States of America; this 

includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We 

conducted our audit in accordance with auditing standards generally accepted in the United 

States of America. Those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor considers 

internal control relevant to the entity’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not 

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of 

accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

12505 Park Potomac Avenue 

Suite 700 

Potomac, MD 20854 

Tel: 301-354-2500 

Fax: 301-354-2501 

www.bdo.com 
2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of National Park Foundation as of September 30, 2019, and the changes in 

its net assets and its cash flows for the year then ended in accordance with accounting principles 

generally accepted in the United States of America.

Other Matters

2018 Financial Statements 

The 2018 financial statements of the Foundation were audited by other auditors, whose report 

dated February 9, 2019, expressed an unmodified opinion on those financial statements.

May 11, 2020
Financial Statements
September 30, 2019 2018

Assets

Cash and cash equivalents $ 12,103,773 $ 11,447,828

Pledges receivable, net 53,941,456 57,203,108

Investments 184,986,561 167,884,438

Prepaid and other assets 1,499,089 8,952,442

Furniture and equipment, net 501,637 571,966

Conservation property 442,775 702,775

Total assets $ 253,475,291 $ 246,762,557

Liabilities and Net Assets

Liabilities

Accounts payable and accrued expenses $ 4,534,034 $ 4,777,906

Deferred revenue - 1,089,156

Grants payable, net 1,746,922 1,442,907

Note payable, net 182,444 1,142,023

Funds managed as agent for other entities 40,729,213 40,625,012

Total liabilities 47,192,613 49,077,004

Commitments and contingencies

Net assets

Without donor restrictions

Undesignated 24,797,312 19,614,791

Designated 24,694,084 24,463,790

Total without donor restrictions 49,491,396 44,078,581

With donor restrictions 156,791,282 153,606,972

Total net assets 206,282,678 197,685,553

Total liabilities and net assets $ 253,475,291 $ 246,762,557

National Park Foundation

Statements of Financial Position

See accompanying notes to financial statements.

3
Without Donor With Donor

Year ended September 30, 2019 Restrictions Restrictions Total

Revenue and support

Contributions and endowment gifts $ 29,011,120 $ 25,437,207 $ 54,448,327

Contributed property, 

goods and services 8,079,120 4,539,867 12,618,987

Government grants and support - 10,064,169 10,064,169

Management and other income 492,562 507,382 999,944

Net assets released from 

restrictions - satisfaction of

program and time restrictions 40,585,276 (40,585,276) -

Total revenue and support 78,168,078 (36,651) 78,131,427

Expenses

Program services:

Program grants 25,619,370 - 25,619,370

Program grants (land) 537,000 - 537,000

Program support 15,900,024 - 15,900,024

Total program services 42,056,394 - 42,056,394

Supporting services:

General and administrative 16,613,835 - 16,613,835

Fundraising 15,687,309 - 15,687,309

Total supporting services 32,301,144 - 32,301,144

Total expenses 74,357,538 - 74,357,538

Change in net assets from operations 3,810,540 (36,651) 3,773,889

Non-operating activity

Investment return, net 1,602,275 3,220,961 4,823,236

Change in net assets 5,412,815 3,184,310 8,597,125

Net assets, beginning of year 44,078,581 153,606,972 197,685,553

Net assets, end of year $ 49,491,396 $ 156,791,282 $ 206,282,678

National Park Foundation

Statement of Activities

See accompanying notes to financial statements.

4
Without Donor With Donor

Year ended September 30, 2018 Restrictions Restrictions Total

Revenue and support

Contributions and endowment gifts $ 26,564,112 $ 37,495,942 $ 64,060,054

Contributed property, 

goods and services 9,738,527 667,365 10,405,892

Government grants and support - 10,280,068 10,280,068

Management and other income 427,046 1,901,119 2,328,165

Net assets released from 

restrictions - satisfaction of

program and time restrictions 32,751,268 (32,751,268) -

Total revenue and support 69,480,953 17,593,226 87,074,179

Expenses

Program services:

Program grants 23,048,600 - 23,048,600

Program grants (land) 27,500 - 27,500

Program support 12,386,670 - 12,386,670

Total program services 35,462,770 - 35,462,770

Supporting services:

General and administrative 17,603,600 - 17,603,600

Fundraising 15,131,880 - 15,131,880

Total supporting services 32,735,480 - 32,735,480

Total expenses 68,198,250 - 68,198,250

Change in net assets from operations 1,282,703 17,593,226 18,875,929

Non-operating activity

Investment return, net 2,120,004 4,435,370 6,555,374

Change in net assets 3,402,707 22,028,596 25,431,303

Net assets, beginning of year 40,675,874 131,578,376 172,254,250

Net assets, end of year $ 44,078,581 $ 153,606,972 $ 197,685,553

National Park Foundation

Statement of Activities

See accompanying notes to financial statements.

5
Program Total General Total

Program Grants Program Program and Supporting

Year ended September 30, 2019 Grants (Land) Support Services Administrative Fundraising Services Total Expenses

Salaries and related benefits $ - $ - $ 2,733,351 $ 2,733,351 $ 4,459,438 $ 4,234,682 $ 8,694,120 $11,427,471

Program grants 25,619,370 260,000 - 25,879,370 - - - 25,879,370

In-kind - 277,000 4,262,867 4,539,867 8,079,120 - 8,079,120 12,618,987

Direct response - - - - - 8,398,008 8,398,008 8,398,008

Professional services - - 6,406,168 6,406,168 1,735,554 2,105,686 3,841,240 10,247,408

Staff development and subscription - - 31,877 31,877 133,622 57,583 191,205 223,082

Supplies, phone and postage - - 33,931 33,931 72,637 307,653 380,290 414,221

Communications - - 339,538 339,538 339,144 37,192 376,336 715,874

Staff travel - - 193,866 193,866 158,183 211,261 369,444 563,310

Meetings and events - - 1,592,181 1,592,181 329,223 90,578 419,801 2,011,982

Facilities, net, and insurance - - 52,883 52,883 1,088,141 - 1,088,141 1,141,024

Depreciation and amortization - - 229,148 229,148 134,794 - 134,794 363,942

Bank charges and other - - 24,214 24,214 83,979 244,666 328,645 352,859

$25,619,370 $ 537,000 $15,900,024 $42,056,394 $16,613,835 $15,687,309 $32,301,144 $74,357,538

National Park Foundation

Statement of Functional Expenses

See accompanying notes to financial statements.

Program Services Supporting Services

6
Program Total General Total

Program Grants Program Program and Supporting

Year ended September 30, 2018 Grants (Land) Support Services Administrative Fundraising Services Total Expenses

Salaries and related benefits $ - $ - $ 2,392,822 $ 2,392,822 $ 3,570,779 $ 3,881,488 $ 7,452,267 $ 9,845,089

Program grants 23,048,600 27,500 - 23,076,100 - - - 23,076,100

In-kind - - 667,365 667,365 9,738,527 - 9,738,527 10,405,892

Direct response - - - - - 8,449,959 8,449,959 8,449,959

Professional services - - 6,264,052 6,264,052 1,866,131 1,736,511 3,602,642 9,866,694

Staff development and subscription - - 49,242 49,242 124,810 82,330 207,140 256,382

Supplies, phone and postage - - 39,694 39,694 64,942 180,944 245,886 285,580

Communications - - 320,710 320,710 395,133 62,895 458,028 778,738

Staff travel - - 162,320 162,320 213,439 190,202 403,641 565,961

Meetings and events - - 2,141,018 2,141,018 208,155 347,684 555,839 2,696,857

Facilities, net, and insurance - - 32,272 32,272 1,153,726 - 1,153,726 1,185,998

Depreciation and amortization - - 300,011 300,011 170,229 - 170,229 470,240

Bank charges and other - - 17,164 17,164 97,729 199,867 297,596 314,760

$ 23,048,600 $ 27,500 $ 12,386,670 $ 35,462,770 $ 17,603,600 $ 15,131,880 $ 32,735,480 $ 68,198,250

National Park Foundation

Statement of Functional Expenses

See accompanying notes to financial statements.

Program Services Supporting Services

7
Years ended September 30, 2019 2018

Cash flows from operating activities:

Change in net assets $ 8,597,125 $ 25,431,303

Adjustments to reconcile change in net assets to net cash 

provided by operating activities:

Endowment contributions (10,000,000) (10,994,256)

Net realized and unrealized losses (gains) on investments 81,004 (3,308,013)

Depreciation and amortization 363,942 470,240

Distribution of conservation property 260,000 27,500

Present value change of pledges receivable (132,786) (31,869)

Bad debt recovery (37,018) (7,500)

Amortization of note payable discount 36,099 154,023

(Increase) decrease in assets

Pledges receivable, net 3,431,456 619,276

Prepaid and other assets 7,453,353 (7,458,436)

Increase (decrease) in liabilities

Accounts payable and accrued expenses (243,872) 1,409,842

Deferred revenue (1,089,156) (1,161,790)

Grants payable, net 304,015 1,442,907

Funds managed as agent for other entities 104,201 3,373,942

Net cash provided by operating activities 9,128,363 9,967,169

Cash flows from investing activities:

Purchases of furniture and equipment (293,613) (181,030)

Purchases of investments (63,306,893) (75,154,151)

Proceeds from sale of investments 46,123,766 32,363,655

Net cash used in investing activities (17,476,740) (42,971,526)

Cash flows from financing activities:

Endowment contributions 10,000,000 10,994,256

Principal payments on note payable (995,678) (3,932,642)

Net cash provided by financing activities 9,004,322 7,061,614

Net increase (decrease) in cash and cash equivalents 655,945 (25,942,743)

Cash and cash equivalents, beginning of the year 11,447,828 37,390,571

Cash and cash equivalents, end of the year $ 12,103,773 $ 11,447,828

Supplemental disclosures of cash flow information:

Interest paid $ 3,662 $ 74,365

National Park Foundation

Statements of Cash Flows

See accompanying notes to financial statements.

8
National Park Foundation

Notes to Financial Statements

9

1. Purpose and Organization

Purpose - As the official national nonprofit partner of the National Park Service (NPS), the National 

Park Foundation (NPF or the Foundation) seeks to generate private support and build strategic 

partnerships to protect and enhance America’s national parks for present and future generations. 

NPF strives to ensure that America’s national parks reach their fullest potential and touch as many 

lives as possible. This translates into protecting natural landscapes, wilderness, historical sites and 

places of cultural significance, connecting people to the national parks and connecting partners to 

the national parks. NPF does this in full partnership with NPS. 

The guiding principles of the Foundation are:

• Stewardship: The Foundation fosters a culture of community and stewardship over the national 

parks.

• Strategic Partnership with NPS: The Foundation works closely with NPS to identify, fund, and 

advance priority initiatives.

• Impact: The Foundation invests in critical projects that provide long-lasting, measurable 

benefits to national parks.

• Philanthropy: The Foundation excites philanthropic support and stewards that support to have 

a direct and meaningful impact on national parks.

• Common Ground: The Foundation provides common ground where all who love the national 

parks can contribute to a shared vision in support of them.

• Partnership: The Foundation convenes and enhances strategic partnerships to achieve broader 

impacts within the national parks.

• Innovation: The Foundation employs an entrepreneurial approach to address the complex 

challenges facing the national parks.

• Education: The Foundation helps to educate the public on the value of national parks and why 

they must be protected and preserved for current and future generations.

• Diversity: NPF is committed to fostering, cultivating and preserving a culture of diversity, equity 

and inclusion among the staff, Board of Directors and partners.

• Future Orientation: The Foundation provides thought leadership, helps NPS to anticipate future 

challenges and creates long-term solutions.

Organization - The Foundation, a not-for-profit, charitable corporation located in Washington, D.C., 

was established in 1967 by an Act of the U.S. Congress (Public Law 90-209) to help support NPS. 

Effective December 16, 2016, Public Law 90-209 was amended by enactment of Public Law 114-289. 

Public Law I 14-289 provides that the Foundation shall consist of a Board of Directors having as 

members no fewer than six private citizens of the United States appointed by the Secretary of the 

Interior. The Secretary and the Director of NPS shall be non-voting, ex officio members of the Board. 

The Chairman of the Board of Directors shall be elected by the Board of Directors from its members 

for a 2-year term. Activities of the Foundation to solicit, accept, administer, and use any gifts, 

devises, or bequests for the benefit of, or in connection with NPS shall be undertaken after 

consultation with the Director of NPS to ensure that these activities are consistent with NPS 

programs and policies.
National Park Foundation

Notes to Financial Statements

10

2. Significant Accounting Policies

Basis of Accounting

The accompanying financial statements are prepared in accordance with accounting principles 

generally accepted in the United States of America (U.S. GAAP) and are presented in accordance 

with the accrual basis of accounting, whereby, support and revenue is recognized when earned and

expenses are recognized when incurred.

Basis of Presentation

The financial statements are presented in accordance with Financial Accounting Standards Board 

(FASB) Accounting Standards Codification (ASC) 958-205 Presentation of Financial Statements of 

Not-for-Profit Entities, whereby the Foundation is required to report information regarding its 

financial position and activities according to two classes of net assets: net assets without donor 

restrictions and net assets with donor restrictions. As of September 30, 2019 and 2018, and for the 

years then ended, the Foundation has recorded activities in the following net asset classes:

Net assets without donor restrictions: Net assets that are not subject to donor-imposed 

restrictions and may be expended for any purpose in performing the primary objectives of 

the Foundation. Net assets without donor restrictions are composed of the following:

Undesignated: Represents resources available to support operations.

Board designated: The Board of Directors designated certain net assets without 

donor restrictions to support programmatic or other strategic needs of the 

Foundation in the future.

NPF designated: The category is composed of net assets without donor restrictions

the Foundation has designated to be used toward signature projects consistent with 

its strategic mission. 

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and 

grantors. Some donor restrictions are temporary in nature; those restrictions will be met by 

actions of the Foundation or by the passage of time. Other donor restrictions are perpetual 

in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donorimposed restrictions are released when a restriction expires, that is, when the stipulated 

time has elapsed, when the stipulated purpose for which the resources were restricted has 

been fulfilled, or both.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make 

estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure 

of contingent assets and liabilities at the date of the financial statements, and the reported amounts 

of revenues and expenses during the reporting period. On an ongoing basis, the Foundation 

evaluates the estimates and assumptions based upon historical experience and various other factors 

and circumstances. The Foundation believes that the estimates and assumptions are reasonable in 

the circumstances; however, the actual results could differ from those estimates under different 

future conditions.
National Park Foundation

Notes to Financial Statements

11

Cash and Cash Equivalents

Cash includes interest and non-interest-bearing operating accounts with insured financial 

institutions. Deposits often exceed federally insured limits. Management, however, does not 

consider this a significant concentration of credit risk. Cash equivalents include money market 

accounts. Cash and cash equivalents exclude such amounts included within investments as those 

funds are part of the investment strategy and portfolio.

Pledges Receivable

Pledges are recognized as support in the period acknowledged by the donor. Pledges are initially 

recorded at fair value less an estimate made for doubtful pledges based on a review of all 

outstanding pledges on a quarterly basis. Pledges to be received after one year are discounted to 

present value at a discount rate commensurate with the risks involved. The Foundation uses discount 

rates that approximate U.S. Treasury borrowing rates at the end of the fiscal year in which the 

promise to give was received based on the respective duration of the donor’s payment plan. 

Amortization of the discount is recorded as contribution revenue. 

The Foundation records an allowance for uncollectible pledges receivable based on a determination 

of the likelihood of collection for each pledge receivable balance considering the age of the 

receivable and other factors that would impact collection. Uncollectible amounts are written off 

when all efforts to collect these receivables have been exhausted.

Investments

Investments are measured and reported at fair value in accordance with FASB ASC No. 820 Fair 

Value Measurement (ASC 820). Dividends and interest are reflected as income when earned. 

Investments in money market funds, mutual funds, and exchange-traded funds are measured and 

reported at fair value based on quoted market prices provided by the investment managers, with 

related gains and losses included in the statements of activities.

Investments are exposed to risks, such as interest rate, market volatility and credit risks. Due to 

the level of risk associated with certain investments, it is at least reasonably possible that changes 

in the values of investments will occur in the near term and such changes could materially affect 

the fair value of investments reported in the accompanying statements of financial position.

Furniture and Equipment

The Foundation capitalizes all property and equipment purchased with non-Federal funds with a 

cost of $5,000 or more. Furniture and equipment is recorded at cost and depreciated on the straightline basis over estimated useful lives of 3 to 8 years.

Leasehold improvements are recorded at cost and are amortized over their estimated useful lives 

or terms of the lease, whichever is shorter.

Maintenance and repair costs are expensed as incurred. Replacements and betterments are 

capitalized. At the time properties are retired or otherwise disposed of, the property and related 

accumulated depreciation or amortization accounts are relieved of the applicable amounts and any 

gain or loss is credited or charged to income.
National Park Foundation

Notes to Financial Statements

12

Conservation Property

The Foundation acquires conservation property through donations or purchases for subsequent sale 

or donation to or for the benefit of NPS. Real property donated is valued at its estimated fair market 

value at the time of donation. The carrying value is reduced if the estimated market value decreases 

below the original recorded value.

Covenants on the properties restrict their future use to conservation activities. 

Funds Managed as Agent for Other Entities

In accordance with ASC 958-605 Non-Profit Entities – Revenue Recognition, funds managed as agent 

for other entities are excluded from net assets. The Foundation acts as the custodial agent of these 

funds, so the related revenues and expenses are not recognized in the accompanying statements of 

activities.

Impairment of Long-Lived Assets

The Foundation reviews asset carrying amounts whenever events or circumstances indicate that 

such carrying amounts may not be recoverable. When considered impaired, the carrying amount of 

the asset is reduced, by a charge to the statements of activities, to its current fair value. 

Income Taxes

The Foundation is exempt from federal income taxes under Public Law 90-209, as described in 

Section 501(c)(1)(a)(i) of the Internal Revenue Code (IRC). In addition, in 1981, the Foundation 

received a determination that it is exempt from federal income taxes under Section 501(c)(3) of the 

IRC and it qualifies as a public charity under Section 509(a)(1) of the IRC. The Foundation received 

a determination letter in 2000 that specifically states it is exempt from filing the Return of 

Organizations Exempt from Income Tax, Form 990, unless the Foundation has unrelated business 

income. Effective fiscal year 2012, the Board of Directors elected to file Form 990 on an annual 

basis. Contributions are tax deductible to donors under section 170 of the Code.

Under FASB ASC No. 740-10, Income Taxes, the Foundation must recognize the tax benefit associated 

with tax positions taken for tax return purposes when it is more-likely-than-not that the position 

will be sustained. The Foundation does not believe there are any material uncertain tax positions 

and; accordingly, will not recognize any liability for unrecognized tax benefits. The Foundation 

believes that it is no longer subject to U.S. federal, state and local, or non-U.S. income tax 

examinations by tax authorities for fiscal years before 2017. For the years ended September 30, 

2019 and 2018, respectively, there were no interest or penalties related to uncertain tax positions 

recorded or included in the accompanying statements of activities.

Grants Payable

The Foundation is both a recipient and provider of grants to further its mission. As a grantor, the 

Foundation recognizes program grants expense when the Board of Directors has awarded a grant 

and the grant becomes an enforceable liability (i.e., when substantially all conditions placed on the 

grantee are met). Grants payable represent grants awarded but not yet disbursed.
National Park Foundation

Notes to Financial Statements

13

Fair Value of Financial Instruments

Fair value measurements reflected in the accompanying financial statements represent the price 

that would be received to sell an asset or paid to transfer a liability in an orderly transaction 

between market participants on the measurement date. U.S. GAAP provides a hierarchy that 

prioritizes the inputs to fair value measurements based on the extent to which inputs to valuation 

techniques are observable in the marketplace. The hierarchy assigns a higher priority to observable 

inputs that reflect verifiable information obtained from independent sources, and a lower priority 

to unobservable inputs that would reflect the Foundation’s assumptions about how market 

participants would value an asset or liability based on the best information available. Financial 

instruments include cash and cash equivalents, pledges receivable, investments and accounts and 

grants payable. Fair value measurements must maximize the use of observable inputs and minimize 

the use of unobservable inputs. 

The three levels of the hierarchy of inputs used to measure fair value are described briefly as 

follows:

• Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that are 

available at the measurement date.

• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset 

or liability, either directly or indirectly, at the measurement date. Level 2 also includes 

investments redeemable on or near the measurement date.

• Level 3—Unobservable inputs for the asset or liability, used in situations in which little or no 

market activity exists for the asset or liability at the measurement. Level 3 also includes 

alternative investments not redeemable near the measurement date.

The categorization of fair value measurements by level of the hierarchy is based upon the lowest 

level input that is significant to the overall fair value measurement for a given asset or liability.

In the event that changes in the inputs used in the fair value measurement of an asset or liability 

result in a transfer between fair value hierarchies, such transfers are recognized at the end of the 

reporting period. 

Management estimates that the respective fair values of the financial instruments, other than 

investments, approximate their recorded values in the accompanying statements of financial 

position due to the relative short-term nature of those instruments. Investments are recorded at 

fair value in the accompanying statements of financial position as discussed in Notes 3 and 16.

Revenue Recognition

Contributions and Endowment Gifts

Contributions are recorded as support, at fair value, when received with or without donor 

restrictions, depending on the existence and/or nature of any donor restriction, including inherent 

time restrictions. Contributions that are restricted by the donor as to time or purpose are reported 

as an increase in net assets with donor restrictions. When a time restriction ends, or a purpose 

restriction is accomplished, net assets with donor restrictions are reclassified to net assets without 

donor restrictions and reported in the statement of activities as net assets released from 

restrictions.
National Park Foundation

Notes to Financial Statements

14

Unconditional promises to give are reported at their net realizable value as pledges receivable in 

the accompanying statements of financial position. Unconditional promises to give that are 

expected to be collected in future years are discounted to present values using a risk-free rate of 

return, at the date the contribution is made. The collectability of the pledges receivable is 

evaluated by management periodically throughout the year, and an allowance for uncollectible 

amounts, is recorded in the period such a determination is made. Conditional promises to give are 

not recorded as pledges receivable until the conditions are satisfied. Contributions received by the 

Foundation consist of support provided primarily by individuals, corporations and foundations.

Endowment gifts are recognized as support when received. The principal amount of the gift is 

maintained intact. Investment income on endowment gifts is recognized as an increase in net assets 

without restriction, unless the income is explicitly restricted by donor or law and such restrictions 

have not been met. The Foundation follows the enacted version of the Uniform Prudent Management 

of Institutional Funds Act of 2006 (the UPMIFA). The required expanded disclosures are included in 

Note 8.

Contributed Property, Goods and Services

Contributed property is recorded at fair value at the date of donation. If donors stipulate how the 

property must be used, the contributed property is recorded as support with donor restrictions. In 

the absence of such stipulations, contributed property is recorded as support without donor 

restrictions.

From time to time, the Foundation receives contributed goods and services from third parties. While 

such contributed goods and services primarily support programmatic activities, some contributed 

goods and services also support general and administrative and fundraising activities. Contributed

goods and services received are measured at their estimated fair value based on a similar value of 

like goods and services and are included as revenue and expense in the accompanying statements 

of activities. 

The Foundation receives non-professional contributed services from volunteers in connection with 

its operations. These services do not require specialized skills and, therefore, do not meet the 

requirement to be recognized as revenue and expense in the accompanying statements of activities. 

Government Grants and Support

Revenue and support from government contracts and grants that provide for cost reimbursement 

are recognized when the related direct and allocated indirect expenses are incurred, deliverables 

are met, or per-diem services are provided. Revenue recognized in excess of cash received is 

reported as grants receivable. Cash received in excess of revenue recognized is reported as deferred 

revenue.
National Park Foundation

Notes to Financial Statements

15

Program and Supporting Services 

Program Grants

The Foundation grants funds in support of strategic programmatic initiatives. Specific programmatic 

focus areas include enhancing the visitor experience, conserving and preserving natural and cultural 

resources, connecting people to national parks, and connecting partners to national parks. The 

Foundation monitors the use of granted funds through grantee reporting governed by formally 

executed agreements with each grantee. These agreements require grantees to certify that the 

usage of funds meet the requirements of the grant.

Program Grants (Land)

The Foundation acquires conservation property through various donations or purchases for 

subsequent sale or donation to or for the benefit of NPS. Real property donated is valued at its 

estimated fair market value at the time of donation. The carrying value is reduced if the estimated 

market value decreases below the original recorded value based on “end use” considerations. 

Covenants on the properties restrict their future use to conservation activities.

Program Support

The Foundation currently appropriates funds for program support activities based upon program 

demands and availability of funds during a particular year. Support expenses include payroll costs 

for time spent on specific programs, as well as direct costs that are relevant to activities that benefit 

the program. 

General and Administrative

General and administrative expenses include the Foundation’s general operations such as execution 

and oversight of the operating strategy, office administration, financial administration, Board of 

Directors oversight, human resource management, information technology, security, and related 

elements.

Fundraising

Fundraising activities include publicizing and conducting fund-raising campaigns; maintaining donor 

lists; conducting special fund-raising events; and conducting other activities involved with soliciting 

contributions from individuals, and corporations and foundations.

Expense Classifications

The cost of providing various programs and other activities has been summarized on a functional 

basis in the accompanying statements of activities and statements of functional expenses. All 

expenses are identified with specific program services or supporting services and charged directly 

according to their natural expenditure classifications. As such, the Foundation does not allocate 

expenses across program services or supporting services. General and administrative expenses 

include those costs that are not directly identifiable with any specific function, but which provide 

for the overall support and direction of the Foundation.
National Park Foundation

Notes to Financial Statements

16

Fundraising costs incurred in one year, which may result in contributions received in future years, 

are expensed as incurred. Additionally, advertising costs are expensed as incurred.

Reclassifications

Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019 

presentation. These reclassifications have no effect on the previously reported change in net assets.

Recent Accounting Pronouncement Adopted

In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities

(Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. ASU 2016-14 amends 

the current reporting model for non-profit organizations and enhances their required disclosures. 

The major changes include: (a) requiring the presentation of only two classes of net assets now 

entitled “net assets without donor restrictions” and “net assets with donor restrictions”, (b) 

modifying the presentation of underwater endowment funds and related disclosures, (c) requiring 

the use of the placed in service approach to recognize the expirations of restrictions on gifts used 

to acquire or construct long-lived assets absent explicit donor stipulations otherwise, (d) requiring 

that all non-profit organizations present an analysis of expenses by function and nature in either 

the statement of activities, a separate statement, or in the notes and disclose a summary of the 

allocation methods used to allocate costs, (e) requiring the disclosure of quantitative and qualitative 

information regarding liquidity and availability of resources, (f) presenting investment return net of 

external and direct internal investment expenses, and (g) modifying other financial statement 

reporting requirements and disclosures intended to increase the usefulness of non-profit 

organization financial statements.

Management adopted the new reporting model effective for the year ended September 30, 2019. 

ASU 2016-14 has been applied retrospectively to all periods presented. The Foundation has elected 

to use the practical expedient to only present liquidity and availability information for the year of 

adoption. There was no effect on the change in net assets reported at September 30, 2018.

Recent Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606). The 

update establishes a comprehensive revenue recognition standard for virtually all entities under 

U.S. GAAP including those that previously followed industry-specific guidance. The FASB issued ASU 

2015-14 in August 2015 that deferred the effective date of ASU 2014-09 by a year. In addition, the 

FASB issued ASU 2016-20 in December 2016 that does not change the core principles of the standard 

but clarifies certain narrow aspects of the standard including its scope, contract cost accounting, 

disclosures, illustrative examples, and other matters. ASU 2016-20 becomes effective concurrently 

with ASU 2014-09. ASU 2014-09 is effective for fiscal years beginning after December 15, 2018. 

Management is currently evaluating the impact the ASU will have on the financial statements.
National Park Foundation

Notes to Financial Statements

17

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), 

Recognition and Measurement of Financial Assets and Financial Liabilities. The update affects the 

accounting for equity investments and financial liabilities, and the presentation and disclosure 

requirements for financial instruments. ASU 2016-01 is effective for fiscal years beginning after 

December 15, 2018. Early adoption is permitted and should be applied on a retrospective transition 

method to each period presented. Management is currently evaluating the impact the ASU will have 

on the financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes the current lease guidance 

under Leases (Topic 840) and makes several changes, such as requiring an entity to recognize a 

right-of-use ("ROU") asset and corresponding lease obligation on the balance sheet, classified as 

financing or operating, as appropriate. In July 2018, the FASB issued ASU 2018-10, Codification 

Improvements to Topic 842, Leases to add clarity to certain areas within ASU 2016-02 and ASU 2018-

11, Targeted Improvements, to add an additional and optional transition method to adopt the new 

leases standard by allowing recognition of a cumulative-effect adjustment to the opening balance 

of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20,

Narrow-Scope Improvements for Lessors to add clarity to lessors accounting for sales taxes and other 

similar taxes collected from lessees, accounting for variable payments for contracts with lease and 

non-lease components, and accounting for certain lessor costs. The effective date and transition 

requirements of these updates will be the same as ASU 2016-02. On July 17, 2019, the FASB 

postponed the effective date for private companies for twelve months. The ASU is effective for 

fiscal years beginning after December 15, 2020. Management is currently evaluating the impact the 

ASU will have on the financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification 

of Certain Cash Receipts and Cash Payments which clarifies how certain cash receipts and cash 

payments are presented and classified in the statement of cash flows. The amendments are 

intended to reduce diversity in practice. ASU 2016-15 contains additional guidance clarifying when 

an entity should separate cash receipts and cash payments and classify them into more than one 

class of cash flows (including when reasonable judgment is required to estimate and allocate cash 

flows) versus when an entity should classify the aggregate amount into one class of cash flows on 

the basis of predominance. The ASU is effective for fiscal years beginning after December 15, 2018, 

with early adoption permitted. Management is currently evaluating the impact the ASU will have 

on the financial statements.

In June 2018, the FASB issued ASU 2018-08, Not-for-Profit Entities (Topic 958), Clarifying the Scope 

and the Accounting Guidance for Contributions Received and Contributions Made. ASU 2018-18 was 

issued to standardize how grants and other contracts received and made are classified across the 

sector, as either an exchange transaction or a contribution. The standard provides guidance to assist 

in the determination of whether a transaction is a contribution or an exchange transaction. If the 

transaction is deemed to be a contribution the guidance provides factors to consider with regard to 

whether the contribution is conditional or unconditional. For contributions received, if determined 

to be an unconditional contribution, the determination will then need to be made as to whether the 

contribution is restricted. The ASU will assist in the determination of the nature of the transaction 

which will then govern the revenue and expense recognition methodology and timing of the 

transaction. The ASU is effective for transactions in which the entity serves as the resource recipient 

for annual periods beginning after December 15, 2018. The ASU is effective for transactions in which 

the entity serves as the resource provider for annual periods beginning after December 15, 2019. 

Management is currently evaluating the impact the ASU will have on the financial statements.
National Park Foundation

Notes to Financial Statements

18

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure 

Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update 

modifies certain disclosure requirements in Topic 820, Fair Value Measurement. The ASU is effective 

for fiscal years beginning after December 15, 2019. Management is currently evaluating the impact 

the ASU will have on the financial statements.

3. Investments

Investments consist of the following at September 30:

2019 2018

Money market funds $ 30,820,199 $ 26,747,439

Mutual funds 150,398,768 140,260,784

Exchange traded funds 717,191 876,215

Cash 3,050,403 -

Total investments 184,986,561 167,884,438

Less: funds managed as agent for other entities 40,552,227 38,297,717

Total investments, net of other entities’ funds $ 144,434,334 $ 129,586,721

Investment return, net is comprised of the following for the years ended September 30, 2019 and 

2018:

2019 2018

Interest and dividend income $ 4,921,744 $ 3,297,837

Net realized and unrealized (losses) gains (81,004) 3,308,013

Investment management fees (17,504) (50,476)

Investment return, net $ 4,823,236 $ 6,555,374

Donated Securities

During the year ended September 30, 2016, the Foundation received donated securities from a 

private foundation organized for charitable purposes and exempt from federal income taxation 

under Section 501(c)(3). The grant was composed of 39 non-voting, restricted class B shares of an 

exempt entity, related to the donor, organized for charitable purposes whose class A shares are 

owned by the donor. As an owner of the class B shares, the Foundation will receive dividends for 

use toward restricted charitable purposes, but has no voting rights or other ownership rights.

At the time of the grant, the Foundation was not able to establish a supportable fair market value 

of the class B shares. Accordingly, the Foundation recorded an asset for an estimated value for 

management tracking purposes and fully reserved the asset to yield a net asset value of $0 for 

reporting purposes.
National Park Foundation

Notes to Financial Statements

19

Dividends received during the years ended September 30, 2019 and 2018 totaled approximately $4.6

million and $6.8 million, respectively, which have been recorded as contributions with donor 

restrictions.

4. Furniture and Equipment

Furniture and equipment consist of the following at September 30:

2019 2018

Computer software and hardware $ 1,970,161 $ 1,707,781

Furniture and equipment 218,146 229,906

2,188,307 1,937,687

Less: accumulated depreciation and amortization (1,686,670) (1,365,721)

Furniture and equipment, net $ 501,637 $ 571,966

Depreciation and amortization expense totaled $363,942 and $470,240 for the years ended 

September 30, 2019 and 2018, respectively.

5. Pledges Receivable

Pledges receivable that are expected to be collected in future years are discounted to present 

values using a blended rate that contemplates the donor’s estimated borrowing rate, and a riskfree rate of return, at the time the unconditional promises are made. The discount rates for 2019 

and 2018 range from 1.79% to 4.01%. The stated balance also factors in circumstances that may 

impact the Foundation’s ability to collect individual pledge balances. An allowance for uncollectible 

pledges is annually assessed utilizing a five-year average of actual uncollectible accounts as a 

percentage of then outstanding receivable balance. At September 30, 2019 and 2018, the allowance 

for uncollectible pledges totaled $378,681 and $415,699, respectively and were netted in the 

pledges receivable balances.

Pledges receivable at September 30, 2019 and 2018 consists of the following:

2019 2018

Due in less than one year $ 40,707,860 $ 40,816,788

Due in two to five years 14,334,289 17,427,253

Due after five years 255,436 485,000

Total pledge receivable 55,297,585 58,729,041

Less:

Discount for present value (977,448) (1,110,234)

Allowance for doubtful pledges (378,681) (415,699)

Pledges receivable, net $ 53,941,456 $ 57,203,108
National Park Foundation

Notes to Financial Statements

20

6. Grants Payable 

Grants payable greater than one year are discounted using the Treasury bill rate at the time the 

commitments are made. At September 30, 2019 and 2018, grants outstanding of $1,746,922 and 

S1,442,907, respectively, were due in less than one year.

7. Net Assets

To ensure observance of the limitations and restrictions placed on the use of resources available to 

the Foundation, the accounts of the Foundation are internally maintained in accordance with the 

principles of project or fund accounting. Separate accounts are maintained for each fund. However, 

in the accompanying financial statements, funds are classified for presentation purposes under ASU 

2016-14 as undesignated, designated, or with donor restrictions.

Net assets without donor restrictions include undesignated funds for general operations, and funds 

designated by the board for grants, or funds designated by the Foundation for other projects. At 

September 30, 2019 and 2018, net assets without donor restrictions were as follows:

2019 2018

Without donor restrictions – undesignated $ 24,797,312 $ 19,614,791

Without donor restrictions – board designated for strategic 

programmatic use in the future 24,172,592 24,317,298

Without donor restrictions – NPF designated:

NPS Centennial 66,500 66,500

Innovation 79,992 79,992

Land 375,000 -

Total NPF designated amounts 521,492 146,492

Total net assets without donor restrictions $ 49,491,396 $ 44,078,581

Net assets with donor restrictions, some of which are time restricted, are primarily available to 

support program grant and program support activities or are restricted to investments in perpetuity, 

the income from which is expendable to support program activities.
National Park Foundation

Notes to Financial Statements

21

At September 30, 2019 and 2018, net assets with donor restrictions were as follows:

2019 2018

Subject to expenditure for specified purpose:

Core programs $ 62,470,636 $ 68,265,480

Other programs 16,702,130 18,039,850

Total subject to expenditure for specified purpose 79,172,766 86,305,330

Subject to endowment spending policy and appropriation:

Endowments 77,618,516 67,301,642

Total net assets with donor restrictions $ 156,791,282 $ 153,606,972

Net assets were released from donor restrictions by incurring expenses satisfying the restricted 

purpose or by occurrence of the passage of time or other events specified by the donors as follows 

for the years ended September 30, 2019 and 2018:

2019 2018

Satisfaction of purpose restrictions:

Core programs $ 35,932,575 $ 25,966,775

Other programs 3,094,820 5,468,550

Total satisfaction of purpose restrictions 39,027,395 31,435,325

Restricted-purpose spending-rate distributions and 

appropriations:

Endowments 1,557,881 1,315,943

Total net assets released from donor restrictions $ 40,585,276 $ 32,751,268

8. Endowment Funds

The Foundation’s endowment consists of multiple individual funds established to support program 

activities. Its endowment includes both donor-restricted endowment funds and funds designated by 

the Board of Directors to function as a quasi-endowment. Net assets associated with endowment 

funds, including funds designated as a quasi-endowment by the Board of Directors, are classified 

and reported based on the existence or absence of donor-imposed restrictions.

Interpretation of Relevant Law

The Board of the Foundation has interpreted the State Prudent Management of Institutional Funds 

Act (the Act) as requiring the preservation of the fair value of the original gift as the gift date of 

the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result 

of this interpretation, the Foundation classifies as net assets with donor restrictions (a) the original 

value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to 

the permanent endowment, and (c) accumulations to the permanent endowment made in 
National Park Foundation

Notes to Financial Statements

22

accordance with the direction of the applicable donor gift instrument at the time the accumulation 

is added to the fund.

In accordance with the Act, the Foundation considers the following factors in making a 

determination to appropriate or accumulate donor-restricted endowment funds:

(1) The duration and preservation of the fund

(2) The purposes of the Foundation and the donor-restricted endowment fund

(3) General economic conditions

(4) The possible effect of inflation and deflation

(5) The expected total return from income and the appreciation of investments

(6) Other resources of the Foundation

(7) The investment policies of the Foundation

Return Objectives and Risk Parameters

The Foundation has adopted investment and spending policies for endowment assets that attempt 

to provide a predictable stream of funding to programs supported by its endowment while seeking 

to maintain the purchasing power of the endowment assets.

Endowment assets include those assets of the donor-restricted funds that the Foundation must hold 

in perpetuity or for a donor-specified period(s) as well as board designated funds. Under this policy, 

as approved by the Board of Directors, the endowment assets are invested in a manner that is 

intended to provide growth and to preserve or increase the real value of the endowment to meet 

the future needs of the national parks, always with the objective of selecting investment vehicles 

that are at an appropriate level of risk for a non-profit organization. Actual returns in any given 

year may vary.

Funds with Deficiencies

From time to time, the fair value of assets associated with individual donor-restricted endowment 

funds may fall below the level that the donor or the UPMIFA requires the Foundation to retain as a 

fund of perpetual duration. 

These deficiencies may result from unfavorable market fluctuations that occurred shortly after the 

investment of new contributions for donor restricted endowment funds. For one of the Foundation’s 

endowments, the donor permitted spending from endowment funds for the initial three-year start 

up period, in order to support the program’s mission. 

The Foundation has a policy that permits spending from underwater endowment funds depending 

on the degree to which the fund is underwater, unless otherwise precluded by donor intent or 

relevant laws and regulations. 

As of September 30, 2019 and 2018, deficiencies of this nature were $0.7 million and $0 million,

respectively, which was reported in net assets with donor restrictions.

Spending Policy

The Foundation currently appropriates funds for the distribution of program support activities based 

upon the demand for these purposes and on the availability of funds during the particular year. The 

Foundation has a board policy that permits as part of its annual budget process a transfer from the 
National Park Foundation

Notes to Financial Statements

23

without donor restrictions Board-designated net assets to the without donor restrictions

undesignated net assets of up to 5% of the average market value of the without donor restrictions 

Board-designated net assets as of March 31 for the three preceding years. Additional transfers are

permitted by Board of Directors action. 

The net asset composition of the endowment funds as of September 30, 2019 were as follows:

Without Donor With Donor

Restrictions Restrictions Total

Board designated quasi-endowments $ 24,172,592 $ - $ 24,172,592

Donor-restricted endowments 

Original donor-restricted gift amount and 

amounts required to be maintained in 

perpetuity by the donor - 61,347,512 61,347,512

Accumulated investment gains - 16,271,004 16,271,004

Total funds $ 24,172,592 $ 77,618,516 $ 101,791,108

The following table represents the changes in endowment net assets for the year ended September 

30, 2019:

Without Donor With Donor

Restrictions Restrictions Total

Endowment net assets, beginning of year $ 24,317,298 $ 67,301,642 $ 91,618,940

Contributions - 10,118,435 10,118,435

Investment return, net 855,294 1,756,320 2,611,614

Appropriation of endowment assets for 

expenditure (1,000,000) (1,557,881) (2,557,881)

Endowment net assets, end of year $ 24,172,592 $ 77,618,516 $ 101,791,108

The net asset composition of the endowment funds as of September 30, 2018 were as follows:

Without Donor With Donor

Restrictions Restrictions Total

Board designated quasi-endowments $ 24,317,298 $ - $ 24,317,298

Donor-restricted endowments:

Original donor-restricted gift amount and 

amounts required to be maintained in 

perpetuity by the donor - 51,294,291 51,294,291

Accumulated investment gains - 16,007,351 16,007,351

Total funds $ 24,317,298 $ 67,301,642 $ 91,618,940
National Park Foundation

Notes to Financial Statements

24

The following table represents the changes in endowment net assets for the year ended September 

30, 2018:

Without Donor With Donor

Restrictions Restrictions Total

Endowment net assets, beginning of year $ 23,594,233 $ 54,951,923 $ 78,546,156

Contributions - 10,713,770 10,713,770

Investment return, net 1,832,065 2,951,892 4,783,957

Appropriation of endowment assets for 

expenditure (1,109,000) (1,315,943) (2,424,943)

Endowment net assets, end of year $ 24,317,298 $ 67,301,642 $ 91,618,940

9. Commitments and Contingencies

Operating Lease Commitments

The Foundation has entered into a lease agreement with terms ending in May 2020 for subleased 

premises at 1110 Vermont Avenue. Rent payments are recognized as expense on a straight line-basis 

over the term of the lease. The deferred rent liability balance as of September 30, 2019 and 2018 

was $67,184 and $139,159, respectively. Rental expense as of September 30, 2019 and 2018 totaled 

$867,343 and $867,307, respectively.

The Foundation has executed a lease agreement for relocation to new office space located at 1500 

K Street, NW, effective June 1, 2020. The terms of the new lease agreement consist of 89 months, 

with the option to extend the lease up to two consecutive periods of 60 months each. The terms 

also include abatement for the first 5 months upon occupation of the space and a tenant leasehold 

improvement allowance of approximately $2.7 million which includes a commission rebate of $0.1 

million. The agreement permits subletting the space, subject to approval. 

The Foundation’s leases for office space provide for rent abatement and escalations of the base 

rent. Accordingly, the Foundation recognizes rent expense based on total minimum future lease 

payments on a straight-line basis over the life of the lease. 

The future minimum payments under the lease agreements are as follows:

Years ending September 30,

2020 $ 645,000

2021 1,338,000

2022 1,516,000

2023 1,576,000

2024 1,634,000

Thereafter 5,202,000

$ 11,911,000

The minimum commitment for fiscal year 2020 was $645,380, which consists of the existing lease 

of $645,380 and the new lease agreement of $0, due to rent abatement.
National Park Foundation

Notes to Financial Statements

25

10. Line-of-Credit

The Foundation has an unsecured line-of-credit. The total amount available under the line-of-credit 

as of September 30, 2019 and 2018 was $3,000,000. Borrowings bear interest at the one-month 

London Interbank Offered Rate (LIBOR) as quoted by the bank, two business days prior to the date 

of the draw. Such rate is to be effective and adjusted for Federal Reserve board reserve 

requirements and FDIC Insurance, plus 1.5%. The effective interest rate at September 30, 2019 and 

2018 was 3.52% and 3.78%, respectively. There was no balance outstanding at September 30, 2019 

and 2018. The line has not been drawn down during the years ended September 30, 2019 and 2018.

11. Note Payable

During December 2016, the Foundation entered into an agreement with an unrelated nonprofit 

public benefit corporation for a four-year loan for $9,523,704. Interest on the unpaid principal is 

due monthly at a rate of 1%. Principal payments are due through January 31, 2021. The Foundation 

recorded imputed interest on the note payable based on the difference between the stated rate on 

the loan and the prevailing market interest rate of 3.5% in 2016. At September 30, 2019 and 2018, 

the balance of the loan was $182,444 and $1,142,023, respectively, net of imputed interest 

unamortized discount of $6,291 and $42,390, respectively. As of September 30, 2019, the future 

minimum principal payment under the note payable is $188,735 due in September 30, 2021.

12. Donated Property, Goods and Services

During 2019 and 2018, the Foundation received donated property, goods and services valued at

$12,618,987 and $10,405,892, respectively. These include recycled lumber for trails, travel-related 

support, and media support as well as call to action communications and outreach related to the 

National Park System as a whole.

13. Litigation Settlement Contributions (Community Service Payments)

Since 1999, the Foundation has received over $20 million from several litigation settlements. These 

funds represent voluntary community service payments from corporations that have entered into a 

plea agreement related to charges by the Department of Justice for violations of certain 

environment regulations such as polluting or the mistreatment of hazardous waste materials. The 

plea agreements specify the national parks or areas to which the funds are to be allocated by the 

Foundation. The Foundation received $18,214 and $8,134, respectively, under these agreements for 

the years ended September 30, 2019 and 2018. The Foundation believes that these plea agreements 

represent voluntary non-reciprocal payments to the Foundation and has, therefore, classified them 

as net assets with donor restrictions support.

14. Employee Benefit Plans

The Foundation has maintained a 403(b) retirement plan (the Plan) for its employees since 1992. 

All employees over 21 years of age with at least one year of service to the Foundation (consisting 

of at least 1,000 hours of service in a 12-month period) are eligible to receive an employer matching 

contribution to the Plan. The Foundation matches 100% of employee contributions, up to 3% of 

salary, and 50% of the next 2%, with a maximum contribution by the Foundation of 4%.
National Park Foundation

Notes to Financial Statements

26

Participants are eligible to participate after one year of service and are fully vested in all 

contributions of the Plan. The Foundation’s contributions to the plan were $230,200 and $203,488, 

respectively, for the years ended September 30, 2019 and 2018.

The Foundation established a 457(f) deferred compensation plan during 2017 and 457(b) deferred 

compensation plan during 2019 for its President and CEO. At September 30, 2019 and 2018, the 

amounts accrued under these arrangements were $130,575 and $71,503, respectively.

15. Funds Managed as Agent for Other Entities

The Foundation acts as a fiscal agent of funds from other entities, for the benefit of, or in connection 

with, NPS, its activities, or its services. At September 30, 2019 and 2018, the funds managed as an 

agent for other entities were invested in cash and cash equivalents, money market funds, mutual 

funds, and exchange-traded funds totaling $40,729,213 and $40,625,012, respectively.

The funds are held for the following purposes as of September 30, 2019 and 2018:

2019 2018

Wetland mitigation – Everglades National Park $ 36,878,504 $ 36,576,396

Washington Metropolitan Area Transit Authority (WMATA) 

– park land 2,151,929 2,111,321

WMATA – tree and shrub replacement 1,428,310 1,406,692

Other 270,470 530,603

Total funds managed as agent for other entities $ 40,729,213 $ 40,625,012

The funds are held in the following financial assets as of September 30, 2019 and 2018:

2019 2018

Cash and cash equivalents $ 176,986 $ 2,327,295

Investments 40,552,227 38,297,717

Total funds managed as agent for other entities $ 40,729,213 $ 40,625,012

The activity during the years ended September 30, 2019 and 2018 were as follows:

2019 2018

Balance, beginning of the year $ 40,625,012 $ 37,251,070

Receipts 3,322,551 4,476,431

Disbursements (5,071,265) (2,647,701)

Investment return, net 1,852,915 1,545,212

Balance, end of the year $ 40,729,213 $ 40,625,012
National Park Foundation

Notes to Financial Statements

27

16. Fair Value Measurements

The determination of the fair value level within which the entire fair value measurement falls is 

based on the lowest level input that is significant to the fair value measurement in its entirety. The 

Foundation’s assessment of the significance of the particular input to the fair value measurement 

in its entirety requires judgment and considers factors specific to the assets or liabilities.

The availability of observable market data is monitored to assess the appropriate classification of 

financial instruments within the fair value hierarchy. Changes in economic conditions or modelbased valuation techniques may require the transfer of financial instruments from one fair value 

level to another. In such instances, the transfer is reported as of the end of the reporting period. 

For the years ended September 30, 2019 and 2018 there were no significant transfers in or out of 

levels 1, 2 or 3.

Investments in money market and mutual funds (Note 3 and Note 15) are valued at the net asset 

value of shares held by the Foundation at year-end reported in the listing of the applicable major 

exchanges.

The following summarizes information about the fair value measurements used as of September 30, 

2019 and 2018:

As of September 30, 2019

Fair Value Hierarchy Level

Total Level 1 Level 2 Level 3

Investments at fair value:

Money market funds $ 30,820,199 $ 30,820,199 $ - $ -

Mutual funds 150,398,768 150,398,768 - -

Exchange traded funds 717,191 717,191 - -

Total investments at fair 

value level $181,936,158 $ 181,936,158 $ - $ -

Investments at cost*

Cash 3,050,403

Total investments $184,986,561
National Park Foundation

Notes to Financial Statements

28

As of September 30, 2018

Fair Value Hierarchy Level

Total Level 1 Level 2 Level 3

Investments at fair value:

Money market funds $ 26,747,439 $ 26,747,439 $ - $ -

Mutual funds 140,260,784 140,260,784 - -

Exchange traded funds 876,215 876,215 - -

Total investments at fair 

value level $ 167,884,438 $ 167,884,438 $ - $ -

Investments at cost*

Cash -

Total investments $ 167,884,438

* Cash included in the investment portfolio is not subject to the provisions of fair value measurements as they are recorded at cost 

and are only shown here to reconcile to the accompanying statements of financial position.

17. Government Support

Commemorative Coin Proceeds

During 2017, the Foundation was the recipient of $2,228,780 from the U.S. Mint for the sale of coins 

in commemoration of the 100th anniversary of the establishment of the National Park Service in 

accordance with Public Law 113-291 and The Carl Levin and Howard P. “Buck” McKeon National 

Defense Authorization Act of Fiscal Year 2015. The proceeds must be designated for use toward 

programs of the National Park Service. As of September 30, 2017, the Foundation had not designated 

how the proceeds would be spent. Accordingly, the Foundation recorded deferred revenue of 

$2,228,780, the total amount of proceeds received from the U.S. Mint at September 30, 2017.

During the years ended September 30, 2019 and 2018, the Foundation spent $389,050 and 

$1,839,730, respectively, of the U.S. Mint proceeds on designated programs, which was recognized 

with management and other income within the accompanying statement of activities.

National Park Service Endowment

During 2019 and 2018, the Foundation was awarded an endowment of $10,000,000 each year under 

the National Park Service Centennial Act. At September 30, 2019, the corpus of the National Park 

Service endowment totaled $30,000,000. Endowment earnings totaled $857,489 and $575,187 for 

the years ended September 30, 2019 and 2018, respectively. The earnings are to be used to help 

finance the needs of the national parks. As of September 30, 2019, none of the earnings have been

expended.

18. Concentrations

As of September 30, 2019 and 2018, pledges receivable from three donors represented 

approximately 61% and 60%, respectively, of total pledges receivable.
National Park Foundation

Notes to Financial Statements

29

19. Liquidity and Availability of Resources

The following reflects the Foundation’s financial assets available for general expenditure within one 

year of the statement of financial position as of September 30, 2019. 

September 30, 2019

Financial assets at year end:

Cash and cash equivalents $ 12,103,773

Pledges receivable, net 53,941,456

Investments 184,986,561

Total financial assets 251,031,790

Less: Amounts unavailable for current expenditure due to

Funds managed as agent for other entities 40,729,213

Pledges without donor restrictions collectable beyond one year 1,493,184

Net assets with donor restrictions 156,791,282

Total amounts unavailable for general expenditure within one year 199,013,679

Less: Amounts unavailable to management without Board approval

Board designated quasi-endowments 24,172,592

Total financial assets available to management for general 

expenditure within one year $ 27,845,519

The Foundation regularly monitors liquidity required to meet its general operating needs and other 

contractual commitments. The Foundation’s liquidity management includes a policy of structuring 

its financial assets to be available to meet its grant-making and general expenditures, liabilities and 

other obligations as they come due. As part of its liquidity plan, excess cash is invested in publicly 

traded investment plans such as money market and mutual funds that aim to maximize return on 

investments based on acceptable levels of risk. The Foundation’s investments can be liquidated 

anytime, and therefore are available to meet current cash flow needs, except for investments held 

in perpetuity. The Foundation’s board-designated net assets include funds designated for specific 

programs. While the board of directors does not intend to spend for the purposes other than those 

identified, board-designated funds could be spent for operations, if necessary.

20. Related Parties

During the years ended September 30, 2019 and 2018, the Foundation received contributions and 

gifts of $2,950,967 and $4,812,106, respectively, from board members of the Foundation. At 

September 30, 2019 and 2018, $4,193,286 and $3,460,489, respectively, was due to the Foundation.
National Park Foundation

Notes to Financial Statements

30

21. Subsequent Events 

Management has evaluated subsequent events through May 11, 2020, which is the date the 

accompanying financial statements were available to be issued. 

On March 11, 2020 the World Health Organization declared the novel coronavirus (COVID-19) a global 

pandemic. As of the date of issuance, this public health emergency stands to substantially impact 

the global economy, including significant volatility in the financial markets. The Foundation cannot 

reasonably estimate the length or severity of this pandemic or the impact on the economy. 

Management is continually monitoring the impact of the pandemic on operations and it may have a 

material impact on the amount of reported assets and net assets associated with the market value 

of investments in the near term. Although the Foundation cannot estimate the length or gravity of 

the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have an adverse 

effect on the Foundation’s results of future operations, financial position, and liquidity in fiscal year 

2020. In response to the COVID-19 pandemic and its related economic impact, the Foundation is 

carefully assessing its operating and financial health. This includes review of its financial position, 

its operating reserves, assessing the crisis’ potential impact on future revenue (especially revenue 

without donor restriction which supports the Foundation’s day-to-day operations), assessing 

budgeted operating expenses and cost containment measures that could be instituted if needed, 

and the Foundation’s access to other sources of funding in emergency circumstances including its 

board designated fund, lines-of-credit and various federal economic relief packages enacted by 

Congress. 

On March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act”, (CARES Act) was 

signed into law in response to the coronavirus pandemic. The Foundation has applied for, and has 

received, funds under the Paycheck Protection Program after the period end in the amount of 

$1,791,500. The application for these funds requires the Foundation to, in good faith, certify that 

the current economic uncertainty made the loan request necessary to support the ongoing 

operations of the Foundation. This certification further requires the Foundation to take into account 

its current business activity and its ability to access other sources of liquidity sufficient to support 

ongoing operations in a manner that is not significantly detrimental to the business. The receipt of 

these funds, and the forgiveness of the loan attendant to these funds, is dependent on the 

Foundation having initially qualified for the loan and qualifying for the forgiveness of such loan 

based on its future adherence to the forgiveness criteria. The Foundation is currently evaluating 

potential impacts of the CARES Act on their 2020 operations.
Management Prepared Document 
Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2019

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A-1

Executive Summary

The National Park Foundation (“NPF” or the “Foundation”) generates private support and builds 

strategic partnerships to protect and enhance America’s national parks for present and future 

generations. NPF was congressionally chartered in 1967 as the non-profit, non-governmental, 

philanthropic partner of the National Park Service (“NPS”). NPF is positioned to engage with 

individuals, institutions and corporate America in support of national parks in ways that NPS cannot 

due to federal regulations, and enjoys a unique partnership with NPS that allows it to leverage and 

direct philanthropic support toward NPS’s nationwide priorities. 

At its core, the Foundation focuses on four core areas to drive positive impact: (i) enhance the 

visitor experience, (ii) conserve and preserve parks’ natural & cultural resources, (iii) connect 

people to parks, and (iv) connect partners to parks. In fiscal 2019, NPF raised over $78 million in 

contributions and other support to fund its mission. NPF’s work is implemented through strategic

partnerships with NPS, park friend’s groups, corporate partners, and other park partners. 

NPF takes a strategic approach in advancing its mission. Key elements of the approach include:

• Aligning areas of programmatic focus with NPS’ priorities. Helps to ensure that the 

projects NPF undertakes are a priority and can be completed.

• Developing diverse and robust fundraising channels. Helps to ensure NPF can deliver on 

its mission while yielding steady growth in contributions over time.

• Keeping programmatic spending ratios high over time. Helps to ensure NPF successfully 

delivers financially on its mission.

• Controlling general, administrative and fundraising costs. Ensures focus on primary goals.

• Strategic investments in operations. Allows NPF to continue leveraging competitive 

advantages and increase its efficiency in delivering its mission.

• Mission aligned investment portfolios. Ensures portfolios are optimized for sustainable

asset growth over time.

• Maintaining a strong financial position. Ensures NPF takes actions needed to sustain 

delivery of mission over long term.

Areas of Programmatic Focus

NPF’s overarching goal is to ensure America’s national parks reach their fullest potential and touch 

as many lives as possible. NPF delivers programmatic impact to the parks in the following strategic 

areas: 

Enhancing the Visitor Experience – NPF aims to facilitate enduring high-quality park experiences 

that include the public’s enjoyment of modern facilities and amenities. NPF works with NPS to 

identify long term solutions for pressing challenges that parks face. 
Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2019

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A-2

Conserving and Preserving Natural & Cultural Resources – NPS is already a world-class leader in 

the preservation and restoration of natural and historical resources. NPF strives to support this work 

to ensure these places are preserved and can be enjoyed by future generations. Focus areas include 

wildlife protection, habitat stewardship, cultural and historical preservation, land conservation and 

protection, restoration to increase resilience and protecting sites of historical and cultural 

significance. NPF also supports the creation of new sites. 

Connecting People to Parks – By connecting broader audiences to parks, NPF helps to ensure that 

parks across the system are appreciated and enjoyed by people of all backgrounds. This core 

strategy helps to improve diversity in visitation, helps to increase access to parks for all age groups 

and helps to foster life-long individual enjoyment, engagement and support of parks. Examples of 

these programs include Bring Parks to People, Introductory Experiences, and Parks as Places of 

Learning, Open Outdoors for Kids, Citizen Science 2.0, and Find Your Park. 

Connecting Partners to Parks – NPF, as the official philanthropic partner of NPS, is only one of 

many partners that work to support national parks. NPF works to build and sustain a strong network 

of diverse partners through collective action, capacity building, peer learning and thought 

leadership in support of America’s national parks. Programs such as Youth Service Corps, 

Volunteerism, Strong Parks - Strong Communities along with capacity-building grants and support 

for the Friends Alliance are core to this strategy. 

Overall in fiscal 2019, NPF provided more than $43.7 million in grants and support to many of the 

more than 400 units across the country. 

Fundraising Activities

NPF secures funding for its mission largely through its own fundraising efforts. Funds are raised from 

individuals, corporate partners, and institutional entities. NPF’s ability to raise these funds is driven 

largely by its consistent, effective and timely delivery of programmatic impact with a margin of 

excellence. 

From fiscal 2013 through fiscal 2018, NPF raised roughly $550 million dollars as part of its Centennial 

Campaign which was designed to yield transformative support and impact for America’s national 

parks as the system turned 100 years old. The campaign and ensuing impact on parks garnered new 

opportunities to generate extraordinary gifts, diversify NPF’s revenue channels and elevate NPF’s 

ability to further leverage its unique partnership with NPS. 

Over the years, through strategic investments, NPF has developed a strong corporate partnerships 

channel, strengthened its individual giving pipeline across all levels (direct mail through major 

giving) and bolstered its strategic partnerships with institutional foundations. 
Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2019

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A-3

In 2016, NPF secured passage of congressional legislation that allows up to $5 million in federally 

appropriated funds to flow to NPF annually. The funds are available to NPF for programmatic use 

and require a philanthropic match. The legislation also created the “Second Century Endowment”,

an annual federal contribution of the first $10 million in sales of Federal Recreation Land Passes 

into an NPF endowment fund. Also available for NPF to access and use, subject to philanthropic 

match, are challenge funds reserved for NPS programmatic priorities. In general, NPF’s federal 

funding vehicles are designed to further increase and excite philanthropic giving (matching private 

donations with federal dollars) by leveraging NPF’s unique position as NPS’s philanthropic partner. 

Overall, NPF has set a strong foundation for continued success in fundraising growth through a 

diversification of its revenue channels. 

Measuring Revenue Performance

The Centennial Campaign helped elevate NPF’s philanthropic capacity. Recurring funding streams 

boosted the Foundation’s ability to advance its mission while transformative contributions addressed 

key nationwide priorities. Transformative contributions, however, take time to develop, steward 

and execute. This variability in timing can cause major fluctuations in total revenue, year to year.

As such, NPF measures revenue growth over three to five- year increments. NPF expects steady 

growth in revenues over this time horizon despite fluctuations that may occur year over year. 

High Programmatic Impact Over Time

To support effective delivery of its mission, NPF aspires to keep its ratio of programmatic expenses 

to total expenses at a high level over time. However, as with revenue, the programmatic expense 

ratio may fluctuate for various reasons, year to year. Grants and support expenses may deviate 

from the budget due to changing project timelines, shifting priorities within NPS, a change in size 

or scope of projects, and federal restrictions on the timing of federally sourced disbursements. 

Non-programmatic costs (administrative or fundraising) may also be higher in a given year due to 

strategic investments in operations from time to time. This scenario can temporarily increase total 

costs and lower the programmatic expense ratio despite increases in programmatic spending. 

Over time, NPF expects to maintain a high programmatic impact ratio and continue to steadily 

increase its total programmatic expenses. 

Controlling General, Administrative and Fundraising Costs 

NPF’s primary goal is to maximize deployment of funds for programmatic purposes in support of its 

mission. Consequently, NPF carefully controls its general, administrative and fundraising costs 

through various means including annual budgeting, performance management, strong internal 

controls, formal cost benefit analyses, and a regular review of operations. 
Appendix A - Management’s Discussion and Analysis

Year Ended September 30, 2019

Unaudited

A-4

Strategic Investment in Operations

NPF regularly invests in its operations to bolster its competitive advantages or to increase its 

efficiency in delivering its mission. Examples of this include improving enterprise technology

systems, adding productivity tools, professional development of its staff, and elevating NPF’s

fundraising effectiveness.

 

Mission Aligned Investment Portfolios

 

NPF regularly monitors the financial performance, spending policies and asset allocations of its 

invested assets to ensure portfolios are optimally designed to support NPF’s mission and sustainable 

growth in asset value over time. NPF utilizes outside professional advisors to design and manage its 

investment portfolios. Each portfolio’s asset allocations are designed to balance earnings potential 

with risk tolerance based on each asset group’s purpose and spending needs or time horizons. NPF 

utilizes the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) to govern its 

permanently restricted net assets. 

Maintaining Strong Financial Position

NPF closely manages its financial position, liquidity and general financial health to ensure 

sustainable performance in mission delivery over the long term. The following are key elements 

of NPF’s financial management strategy:

• Employing strong oversight, risk management and internal controls over all transactions. 

• Efficient use of working capital to fund grants, operations and to generate excess 

investment earnings where possible. 

• Maintaining an optimal level of unrestricted operating reserves. 

• Disciplined review and analysis of NPF financial activities versus plan, risks, opportunities 

and obligations on an ongoing basis.