New donations and investment gains over the last two years have erased the deep losses the Ann Arbor Area Community Foundation incurred during the economic crisis, according to the nonprofit’s 2010 annual report.

The report, released Tuesday at the organization’s annual meeting, shows that the philanthropic group’s enjoyed annualized investment gains of 13.6 percent in 2010.

That increase, in addition to 24.2 percent annualized investment gains in 2009, helped the group recover from 30.8 percent drop in 2008. Total assets were $58.7 million as of Dec. 31, 2010, up 47.6 percent from a trough of $39.7 million two years earlier.

“The foundation has earned back all of the declines from the market turmoil,” treasurer David Sarns said.

The organization reported $8.3 million in new gifts in 2010, including its largest gift ever by an individual, an estate donation of more than $6 million, Sarns said. About 550 individual donors contributed funds.

The Ann Arbor Area Community Foundation said it distributed $1.7 million in grants and scholarships in 2010.

“Our giving has been fairly consistent, even in these tumultuous times,” Sarns said.

Notably, the group also shifted its asset allocation over the last year. The group reduced its investment in private equity and venture capital from 10 percent of its assets to 5 percent; increased its commitment to fixed-income investments from 10 percent to 15 percent; boosted its investment in hedge funds from 20 percent to 25 percent; and reduced its investment in domestic equity from 25 percent to 20 percent.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.