annualREPORT2012 - 2013

ABOUTThe Heat and Warmth Fund

Mission Statement

THAW is a leading provider of utility assistance for Michigan residents in need. We collaborate with our partners to deliver services that support long- term energy solutions.

The Heat And Warmth Fund, THAW, is an independent non-profit (501(c)(3) agency that provides low-income individuals and families in Michigan with emergency energy assistance.Heat and electricity are essential and basic human needs during a Michigan winter. THAW was established in 1985 in order to improve the quality of life in Michigan and prevent human suffering by helping low-income families who were falling through the ever-widening cracks of existing social service programs. Now, more than 28 years later, the number of Michigan households facing huge energy burdens is staggering. Since its inception, THAW has distributed more than $125 million in assistance to more than 175,000 Michigan households.Recipients of THAW assistance include the elderly, unemployed, underemployed and disabled individuals who found themselves in an energy crisis. More than 70% of the households we assist have a child or senior in the home; these populations are especially vulnerable to the cold. THAW programs are open to eligible Michigan residents.

Additional information aboutTHAW can be found atwww.thawfund.org

THE HEAT AND WARMTH FUND Leadership & Governance

EXECUTIVE COMMITEE

PRESIDENT Linda Blair ITC Holdings Corp.VICE PRESIDENT Mark Stiers DTE EnergyTREASURER Terry Oprea Mort Crim Communications, Inc.SECRETARY Bertram Marks Litigation Associates Trial Law Firm

BOARD OF DIRECTORS

Jo Arnold ViSalus SciencesCarl Bentley Strategic Staffing SolutionsJerry Carlson MicrosoftDavid Ellis AABECarl EnglishAmerican Electrical Power(Retired)Susan FoleyUniversity of MichiganHealth SystemDaniel ForsythSEMCO EnergyMichelle LemerondComerica BankMark LichtmanZenaComp Incorporated Kirk MayesBrightmoor AllianceTom O’MastaConsumers Energy(Retired)Patti PoppeConsumers Energy

HONORARY FOUNDING MEMBERS

Frank W. CulverJack SchwabCommunity VolunteerGeneva WilliamsDetroit City Connect

In addition to gas and electricity, THAW also provides assistance for fuels such as wood and propane. We have more than 80 screening sites that span from Detroit to the Upper Peninsula.

Last year, THAW provided assistance to:

15,000 Michigan Households

23,000 Children

w/7,000 ages newbornto preschool

17% Senior Citizens

40% are working

40% of THAW’s assistance dollars are distributed outside Macomb, Oakland, and Wayne County.

THAW Highlights

THAW Innovation Programs Social Entrepreneurship Challenge

Thank You Consumers Energy

The future goal of THAW is to also provide customer assistance prior to crisis through energy education and income-eligible programs. Partnerships with utility companies allow us to create programs aimed to provide solutions for low-income households to empower the customer and take control of their energy use.

Ecotelligent Homes and ReSource Fund received awards from Consumers Energy and THAW as winners of a Fostering Energy Affordability Award sponsored through the Pure Michigan Social Entrepreneurship Challenge. The challenge encouraged new business ideas and emerging companies that focused on sustainable social change in a wide range of areas including energy, environment and health.

Each year Consumers Energy selects charities that provide emergency assistance and crisis management to their customers. In addition to providing financial assistance to those in need, this investment will support the future goal of creating innovative customer solutions.

Michigan Energy Assistance Program (MEAP) Grant

Microsoft Grant

Microsoft celebrated its retail store Grand Opening at the Somerset Collection in Troy by awarding grants to local non-profits. THAW is proud to have been chosen as a Microsoft Community Partner and recipient of a $125,000 software grant.

THAW was awarded $15.5 million from the newly legislated State funding - Michigan Energy Assistance Program (MEAP). A portion of this grant will be invested in innovative programs and THAW customer solutions.

Week of Warmth

In partnership with DTE Energy, THAW raised over $600,000 during the 2012 Week of Warmth. This week-long series of events helps raise awareness of our customer’s needs, raise funds to provide assistance, and highlights the partnership between THAW and DTE Energy,

2012 - 2013Financial Snapshot

ExpensesProgram ServicesManagement & GeneralFundraisingTotal Expenses

SupportPublic and Corporate SupportUtility and Fuel Company Cash SupportFoundations and GrantsFaith-Based and St. Vincent de PaulInterest and Misc. IncomeTotal Cash Support

In-Kind (donated) SupportUtility Match or Bill CreditsTotal Non-Cash SupportGrand Total

Program Services ExpensesTotal Functional ExpensesProgram Ratio

201317,573,772

647,161867,408

19,088,341

20135,338,3762,208,9068,112,8861,379,500

146,73117,186,399

63,2681,406,2831,469,551

18,655,950

17,573,77219,088,341

92%

Revenue & Expenses

Assets & Liabilities

THE HEAT AND WARMTH FUND STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR 2012

Revenue & Support 2013 2012GrantsPublic/Corporate SupportFoundationsUtility Support and MatchInterestFaith Based/St. Vincent de PaulMiscellaneousTotal Revenue/Support

Expenses 2013 2012Direct AssistanceSalaries & BenefitsOffice ExpensesContractual ExpensesApplicant Screening/ReferralTravel & MeetingsPromotion & AdvertisingBad Debt ExpenseEquipment: Purch./Repair/Maint.Web Based System: Updates/Maint.DepreciationOther ExpenseTotal Expenditures

THE HEAT AND WARMTH FUND STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR 2012

Assets 2013 2012

Liabilities and Net Assets 2013 2012

10,907,4352,220,563

425,4702,212,325

3,066585,760

2,001,00618,355,625

8,602,9751,288,749

314,385395,974

92,68891,803

128,25018,00037,46628,98429,32064,042

11,092,636

15,598,0401,452,583

302,6741,100,527

194,083108,834110,138

8,44744,59352,416

5,177110,829

19,088,341

7,662,3175,338,376

450,5692,208,906

2,3811,379,500

144,350

Current Assets: Cash Equivalents Pledges Receivable Prepaid Expenses Grants ReceivableTotal Current Assets

8,249,61830,184

100,2528,045

8,388,0996,097

8,394,196

9,933,4029,337

23,940213,182

10,179,86111,274

10,191,135

At cost, less acucumulated depreciation of $552,945 in 2013 and $549,443 in 2012.

Total Assets

Current Liabilities: Accounts Payable Accrued LiabiltiesTotal Current Liabilities

Net Assets: Temporarily Restricted UnrestrictedTotal Net Assets

Total Liabilities & Net Assets

36,769150,351187,120

2,482,6255,724,4518,207,076

8,394,196

15,497129,888145,385

5,790,8504,254,900

10,045,750

10,191,135

CORPORATE SUPPORT

FOUNDATION SUPPORT

$50,000+ $10,000-$49,999

$2,500-$9,999

Consumers EnergyDTE EnergySEMCO Energy

Barton Malow CompanyComerica BankCommunity FinancialDiversified Minority Services, Inc.DTE Energy - Nuclear DevelopmentFifth Third BankFlagstar BankITC Holdings Corp.JP Morgan ChasePanhandle EnergyStrategic Staffing Solutions, Inc.Total Foundations LLC

AAA MichiganABB Inc.American Jewelry and LoanArt Van FurnitureAT&T Services, Inc.Bigard & Huggard Drilling, Inc.Blue Cross Blue Shield of Michigan and Blue Care NetworkCitizens Gas Fuel CompanyDeMaria Building CompanyDevon Facility ManagementDoeren MayhewDykema Gossett, PLLCEagle Excavation, Inc.Environmental Consutling & Technology, Inc.ExperianFerndale Electric CompanyGuaranty BankGuardian Plumbing & Heating, Inc.Hainer & Berman PCHAPHarris & Harris, LTDHolland Engineering, Inc.Ilitch Holdings, Inc.Immersion Graphics, Inc.Inner-Tite Corporation

Invenergy, LLCJ.J. Barney Construction, Inc.Jim Causley Buick GMCLambert, Edwards & Associates, Inc.Les Project Holdings, LLCM.J. Electric, LLCManpower International, Inc.Masco CorporationMeritorMG Strategy, LLCMiller Pipeline CorporationMitsubishi Electric Power Products, Inc.Power Line SupplyProfessional Building MaintenancePVS-Nolwood Chemicals, Inc.Quicken LoansR.L. Coolsaet Construction Co.Schaller CorporationSeel, LLCThe Active Network, Inc.The Bradley Co.The Hydraker - Wheatlake CompanyThe Taubman CompanyUtility Resource Group, LLCVector Pipeline, L.P.Verizon

Asplundh Family Public FoundationBank Of America Charitable FoundationBellaimey Family FoundationCarl and Irene Morath FoundationErb Family Foundation Employee & Matching Gift ProgramFord Motor Company FundInnogive Foundatoin

Max M. & Marjorie S. Fisher Foundation, Inc.PNC FoundationSkillman FoundationThe Harvey Hubbell FoundationThe Kresge FoundationThe Seed FoundationThe W.J. Lillian Kemler Foundation

607 Shelby, Suite 400Detroit, MI 48226PHONE:313.226.9465FAX:313.963.2777www.thawfund.org