The S. D. Bechtel, Jr. Foundation operates in partnership with the Stephen Bechtel Fund, a private pass-through foundation that provides additional dollars for grantmaking. The two entities are together referred to as “the Foundation.” In 2016, the Foundation made program investments totaling $119 million, and the projected program investment budget for 2017 is $148 million.
The following graph shows both the actual amount of grants paid and the amounts approved for 2013-2016. Forecasts are included for 2017.
From the time of the spend-down decision until mid-2015, the primary investment objective of the S.D. Bechtel, Jr. Foundation was protecting the principal value of the total portfolio with the secondary objective of attaining a total real (inflation-adjusted) return that is at least positive in “normal” market conditions.
As shown in the following chart, the asset allocation has shifted over time. In 2012-2014, funds were moved into large cap and international equity, as well as the opportunistic (i.e., distressed debt) class to capture more return. In the summer of 2015, the Investment Committee decided to start de-risking the portfolio, i.e., liquidating equities. At this point, the Committee was willing to sacrifice yield for the certainty the funds would be available when needed over the final years. The portfolio is now more liquid, with less market risk and weighted towards fixed income and cash.
The Stephen Bechtel Fund is a pass-through foundation and, as such, does not have an endowment or investments.
Federal Tax Returns
The S. D. Bechtel, Jr. Foundation and the Stephen Bechtel Fund file federal tax returns annually, typically in November, on Form 990-PF. In addition, the Foundation files Form 990-T as a consequence of some of its investments. These tax returns include financial data, such as the fair market value of all assets, revenue, and expense detail, and a complete listing of grants paid. Annual tax returns are posted after filing with the IRS. The Foundation does not produce annual reports.
S. D. Bechtel, Jr. Foundation
Stephen Bechtel Fund
In response to the critical challenges facing California, the Foundation has committed to spend down its assets by 2020.
Please note: The S. D. Bechtel, Jr. Foundation accepts proposals through invitation only. Please do not send letters of inquiry or proposals by mail or email unless requested to do so by Foundation staff.