In 2012 Acumen raised $10.0 million in philanthropic capital, affirming our strong cash position. In addition, we had non-cash revenue of $3.2 million in donated legal services, primarily to support our investing work, as well as donated office space. We received $1.0 million in interest from portfolio loans, and have a loss provision of $1.4 million for portfolio investment losses, representing a conservative valuation policy. Acumen Fund carries our program investments at cost, and we lower these valuations when impairment exists. We do not mark up our equity investments to fair market value, even when our holdings increase in value in subsequent funding rounds. We only realize gains or profits when we exit an equity investment.
Operating Expenses & Program Investments
Operating expenses cover all the direct costs of running Acumen Fund programs as well as our management and general and fundraising costs. They do not reflect any of our program investments in our portfolio companies. Total expenses for the 2012 year were $12.7 million which was flat compared to the prior year.
Program work constitutes 73% of expenses. Portfolio expenses were $5.9 million, representing the cost of finding, diligencing and executing $12.3 million in new investment approvals as well as managing our active portfolio of 44 companies. Outreach, Impact and Communications expenses were $2.4 million, representing our work in metrics, research, and sharing our insights on patient capital investing. Our Global Fellows program, in its eighth year, had costs of $0.9 million. Fundraising costs and Management and General expense accounted for $3.5 million. These overhead costs continue to be funded entirely by Acumen’s Board of Directors.