1. Payout Planning in Volatile Times Grant Makers in Health Conference March 13, 2013

2. Foundation Alignment Spending Policy Program Strategy Asset Allocation Strategy

3. Spending Policy § RWJF should exist in perpetuity § RWJF seeks to maintain purchasing power over time § RWJF can reduce purchasing power for periods of time

4. Progress Since 1972

6. Program Strategy We drive social change to improve health Target defined areas (Impact Framework) Make dollar commitments to certain fields public (e.g., Childhood Obesity) Approve multi-year awards and programs

7. Program Strategy We drive social change to improve health Target defined areas (Impact Framework) Make dollar commitments to certain fields public (e.g., Childhood Obesity) Approve multi-year awards and programs This approach Uses the strength of our brand and reputation Enables us to attract some of the best scientists and leaders Allows for sustained focus to drive change

8. Program Strategy We drive social change to improve health Target defined areas (Impact Framework) Make dollar commitments to certain fields public (e.g., Childhood Obesity) Approve multi-year awards and programs But this approach creates financial challenges

9. RWJF Programming Program Budget Approved Awards Cash Approved Authorizations Draw down Awards Cash Current Year Current & Future Years Approvals

10. Approvals are Not the Same as Payout 2012 Approvals 2012Payout 2012 Approved and Paid

11. Program Inventory $ in Millions

12. Asset Allocation Question § Should we limit volatility given programming style? or § Adjust programming style to absorb volatility?

13. How to Manage in Downturns § Protecting against downturns: Reduce the length of program authorizations and awards Limit ratio of commitments to average assets § To get there: Approve shorter programs Approve “up to” (not fixed) amounts for some programs Use more planning grants and milestone funding Be cautious about beginning new branded programs § Side benefit: more frequent program assessment

14. How to Manage Growth § Scale up without long-term commitments Absorb Growth with awards that payout quickly Keep multi-year budgets steady; increase gradually

15. How to Manage Growth § Scale up without long-term commitments Absorb Growth with awards that payout quickly Keep multi-year budgets steady; increase gradually § Ways to get there Waiting lists of additional projects Pre-funding disaster relief or future studies Pre-funding programs for accelerated payment

16. Foundation Alignment Spending Policy Program Strategy Asset Allocation Strategy