REPORT TO THE COMMUNITY 2014 Berkshire Taconic COMMUNITY FOUNDATION
DEAR FRIENDS, Many kinds of people—teachers and teenagers, business owners and retirees, high-profile figures and the neighbor next door—choose to work with Berkshire Taconic Community Foundation. What unites them is their generosity and a desire to strengthen the communities they love. Some opt to organize their charitable giving by opening a donor advised fund with us. With a few clicks, they direct gifts to organizations they cherish, wherever they are and whenever they wish. This kind of giving accounted for about one-third of our grantmaking activity last year. Others come to us with a love of the arts or the environment, or an urge to fight poverty or cancer. Many hope to memorialize a departed loved one with a scholarship. We partner with these donors to establish criteria for competitive grantmaking, and over time, a highly focused and permanent charitable legacy takes root. Together with our area funds (for specific towns or regions) and our education enrichment funds (for all 33 school districts in our region), these funds form an even larger part of our grantmaking each year.
OUR MISSION BERKSHIRE TACONIC COMMUNITY FOUNDATION BUILDS STRONGER COMMUNITIES BY INSPIRING CHARITABLE GIVING OUR MISSION IN ACTION CULTIVATING & STEWARDING LONG-TERM CHARITABLE ASSETS CONNECTING DONORS TO SIGNIFICANT INITIATIVES & ORGANIZATIONS IN OUR COMMUNITIES LEADING & LEVERAGING PARTNERSHIPS TO ADDRESS CRITICAL ISSUES
At the other end of all this purposeful philanthropy are the hundreds of nonprofits and individuals who are flourishing as a result of it. Chances are good that the program at your local library, the student whose travels abroad you read about in the paper or the historic trail you take visitors to on weekends received funding from a Berkshire Taconic donor. After 28 years, our donors’ interests are broad and their reach is wide as they seek new ways to make lives better. We invite you to take a glimpse at 2014 through people, places and numbers—they all add up to a rich tapestry of generosity covering our entire region. Berkshire Taconic is your community foundation, and we’re here to help you make a difference.
J. Williar Dunlaevy Chair, Board of Directors
Jennifer Dowley President
BOTTOM ROW: (Left) DUNCAN CALHOUN and RUSSELL GIBSON own and operate the Barlow Hotel and the Croff House in bustling Hudson. They’re also legacy donors at Berkshire Taconic, with funds that will support their adopted city and cherished institutions. (Middle) KATIE PALMER-HOUSE chairs the advisory board of BTCF’s new education enrichment fund for the Dover Union Free School District. Her team of volunteer leaders is funding extracurricular projects to build leadership skills and expand horizons. (Right) A thriving Berkshire Community College student and New World Fund grantee, EDSON CHIPALO was orphaned as a child and raised by grandparents in rural Zambia. An associate’s degree in hand, he seeks a diploma from a four-year college and ultimately a career in law.
FACES OF BERKSHIRE TACONIC COMMUNITY FOUNDATION
TOP ROW: (Left) In her role as a family nurse practitioner at Community Health Programs in Great Barrington, LAURA ELLIOTT is a vital part of the Reach Out and Read team that is helping to boost literacy in the earliest learners through a grant from Berkshire Taconic. (Middle) CONNOR CHIRICHELLA, a junior at Taconic Hills High School, received funding from BTCF’s Tupelo Award Fund to conduct research on Russell-Silver syndrome, a rare growth disorder he was diagnosed with as an infant. (Right) A scholarship from the Tabor Foundation Fund, which supports training in health care fields, helped TERRE LEFFERTS of Salisbury earn her massage therapy certification and pursue a degree in physical therapy from Berkshire Community College.
EARLY CHILDHOOD DEVELOPMENT Our newest region-wide initiative is focused on children from birth to five, particularly those from low-income homes who lag behind their peers in pre-literacy skills and school readiness. Over the last year, we have assembled a group of donors, community partners and school district staff to provide multi-year funding for two national, evidence-based programs: Reach Out and Read, which mobilizes trusted pediatric care providers to promote reading at their practices, and the Parent-Child Home Program, which models reading, play and conversation for parents and caregivers in their own homes. In Columbia County, we are working with donors and local experts on a needs assessment to find gaps in early childhood services and produce a roadmap to help every child find success in school and later in life. CENTER FOR NONPROFIT EXCELLENCE One measure of the health of our communities is the strength and stability of our nonprofit organizations, which help drive the economy and improve the quality of life. First held in 1990, Berkshire Taconic’s seminar series for nonprofit leaders reached peak attendance last year, drawing national experts to the region. We sent two more leaders to Harvard in July for a week of world-class peer learning. And a second group of seven executive directors met over the course of the year for a facilitated management training program that participants call transformative. We want our nonprofits to build strong boards that hire expert staff to run quality programs—because we all benefit in the end. NEIGHBOR-TO-NEIGHBOR An aging workforce and declining population have slowed our region’s recovery from the recession. For families continuing to experience hardship, our Neighbor-to-Neighbor Fund remains a lifeline. Last year, the fund made one-time, emergency grants totaling over $200,000 to pay the bills of people in crisis. Most grants were under $500, and one-third helped cover the cost of heating fuel. Working with eight nonprofit partners, we shared the gifts of many generous donors through this fund to reach families throughout the region in greatest need. HOUSINGUS HousingUs is our tristate partnership to increase the rate of affordable housing in the region and help seniors and working families thrive. In 2014, we set several ambitious goals, including: helping facilitate the development of 50 units of affordable housing over two years; securing funding for the building of accessory apartments; and launching an economic development initiative in northern Dutchess County.
Participants in the 2014 Nonprofit Leadership Institute with consultant Janet André Block (center).
LEADING & LEVERAGING PARTNERSHIPS
A CATALYST AND CONVENER, BERKSHIRE TACONIC IS AMONG THE FIRST TO STEP FORWARD TO MEET AN EMERGING NEED. WE BUILD RESOURCES AND PARTNERSHIPS TO ADDRESS CHALLENGES AND HELP OUR REGION PREPARE FOR THE FUTURE. WE BROUGHT TOGETHER PEOPLE, IDEAS AND FUNDING FOR NEW AND CONTINUING PROJECTS IN 2014.
FILLING GAPS IN MENTAL HEALTH CARE Demand for prevention and counseling services was already growing at Housatonic Youth Service Bureau in Falls Village. Then last October, the only other organization providing mental health services for kids in crisis and their parents closed its Lakeville location. With a sizable state grant in hand to help renovate new space on the Housatonic Valley Regional High School campus, the challenge for HYSB staff and board was to create a plan to grow responsibly while preparing for the future. A $150,000 grant from a BTCF fund held by a group of Northwest Corner donors significantly boosted fundraising efforts. It also gave other donors confidence in the value of HYSB’s services. Additional grants from two other BTCF funds followed. HYSB staff is now well on its way to having new headquarters and increased staff to serve the children, teens and families in the Region One School District who need them. SAVING AFTER-SCHOOL PROGRAMMING Millerton’s North East Community Center, the trusted provider of an after-school program for 50 kids grades K-8, learned in August that state funding for the program would not be renewed due to budget cuts. The center had just four weeks to raise $80,000 while parents—many of whom are hourly or service workers—and staff anxiously awaited news on the program’s fate. The community quickly rallied around NECC and donations poured in. The committee that leads Berkshire Taconic’s Northeast Dutchess Fund moved fast to issue a $15,000 challenge grant to close the remaining gap, and that daunting fundraising goal was handily met. Heightened awareness of NECC’s after-school program has led to increased enrollment, and in a turnabout, New York State reversed its decision and awarded NECC funding—leaving the organization with welcome decisions about how to strengthen its programs. CARING FOR NEW PARENTS With the closing of North Adams Regional Hospital last March, Berkshire Nursing Families lost its rent-free home. Worse still, its lactation consultants and educators were now separated from the mothers they had served right in the maternity ward. New costs and risks were looming. Meeting in April, the committee for the James and Robert Hardman Fund, an area fund for nearby towns, doubled BNF’s grant request as part of a decision to fund only basic or emergency services. The group was bolstered by another area fund, The William J. and Margery S. Barrett Fund, which covered costs of one-on-one executive coaching during this critical time from a nationally recognized consultant in nonprofit management. Back on solid ground, BNF is sending its leadership team through BTCF’s Nonprofit Learning Program, a five-session group training with other nonprofit executives and board members that concludes with a small implementation grant—also courtesy of the Barrett Fund. In this way, the unique resources of Berkshire Taconic have been deployed to help stabilize a vital organization.
Staff and students from the Housatonic Youth Service Bureau in Falls Village.
CONNECTING DONORS TO INITIATIVES & ORGANIZATIONS
BERKSHIRE TACONIC OCCUPIES A PIVOTAL POSITION BETWEEN A GROWING FAMILY OF GENEROUS DONORS WHO WISH TO LEVERAGE THEIR PHILANTHROPY AND A ROBUST NONPROFIT SECTOR THAT RESPONDS TO CHALLENGES AND SERVES ITS COMMUNITIES WITH CARE AND COMPETENCE. BERKSHIRE TACONIC CONNECTED DONORS WITH THEIR COMMUNITIES POWERFULLY LAST YEAR.
J. Williar Dunlaevy Chair Gloria G. Callen Sheldon Evans Ann M. Goodbody Edward Hoe Christopher Kennan Ellen L. Kennedy Diane Monti-Catania Kelly Morgan Holly J. Nelson Robert W. Norris Emilie M. Pryor Henry Putzel III Thomas Quinn David Rich Sarah S. Stack Vera V. J. Weintraub
Berkshire Taconic Community Foundation maintained a strong financial position in 2014 and provided unprecedented support to the communities we serve. Total assets grew to $119 million with a record number of grants, scholarships and distributions to nonprofits. Gifts and contributions continued to outpace the prior year, setting the stage for long-term sustainability and growth. FINANCIAL HIGHLIGHTS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2014 & 2013 2014 (unaudited) 2013 ASSETS Donor advised funds $ 22,881,151 $ 21,869,612 Funds held for nonprofit organizations 39,497,600 41,998,298 Funds designated to specific organizations 6,634,267 6,254,264 Scholarship funds 9,737,568 9,234,912 Area funds 10,937,649 10,794,545 Education enrichment funds 7,669,200 7,256,937 Field of interest funds 16,167,995 15,868,761 BTCF endowment and building funds 5,329,691 5,225,817 TOTAL ASSETS $ 118,855,122 $ 118,503,145 GRANTS, SCHOLARSHIPS AND DISTRIBUTIONS (From) Donor advised funds $ 3,410,876 $ 2,881,548 Funds held for nonprofit organizations 5,491,303 2,432,571 Funds designated to specific organizations 212,135 187,979 Scholarship funds 318,701 386,262 Area funds 601,274 784,052 Education enrichment funds 493,900 436,925 Field of interest funds 819,329 793,314 Other funds 220,437 219,400 TOTAL GRANTS AND DISTRIBUTIONS PAID $ 11,567,955 $ 8,122,051 GIFTS AND CONTRIBUTIONS RECEIVED Donor advised funds Funds held for nonprofit organizations Funds designated to specific organizations Scholarship funds Area funds Education enrichment funds Field of interest funds Other funds TOTAL GIFTS
$ 3,659,193 $ 3,165,061 502,374 624,542 915,271 444,598 375,444 447,357 230,954 218,497 467,250 616,843 481,647 443,251 27,450 41,841 $ 6,659,583 $ 6,001,990
The annual audit of the 2014 statements was not complete at the time this report was prepared. For a copy of our audited financial statements and/or Internal Revenue Service filing please contact Vice President for Finance & Administration A. J. Pietrantone by email at firstname.lastname@example.org or by phone at (413) 229-0370. You can also visit www.berkshiretaconic.org to view audited statements, tax returns and investment information. Berkshire Taconic complies with the Uniform Prudent Management of Institutional Funds Act (UPMIFA) in the management of all its funds.
CULTIVATING & STEWARDING LONG-TERM CHARITABLE ASSETS
BOARD OF DIRECTORS
INTERNATIONAL EQUITY 22%
BTCF Managed Pool
EMERGING MARKETS EQUITY 4% GLOBAL PRIVATE EQUITY 6%
DOMESTIC EQUITY 36%
FLEXIBLE CAPITAL 15%
INFLATION HEDGING 1%
DOMESTIC FIXED INCOME 8%
INTERNATIONAL FIXED INCOME 5%
INVESTMENT STRATEGY Our investment objective is to maximize the return from our portfolio, preserve capital and liquidity, and produce long-term growth for fund stakeholders. The foundation strives to perform in the top quartile of its peer group and produce average, long-term returns that will offset grants, inflation and administrative fees. Key to that objective is a diversified asset allocation measured against accepted standards. The foundation uses over 20 different investment managers who employ a broad array of strategies, and is advised by Prime Buchholz Associates.
MSCI AC World Index 65%/35% Barclays Global Aggregate Index
8.4% 8.2% 7.0%
INVESTMENT PERFORMANCE Effective stewardship of charitable assets not only preserves and enhances their value over time, but provides a reliable framework for building stronger communities. Annualized investment performance for the preceding one, three, five and 10 years ending December 31, 2014 outperformed the foundation’s policy index and was significantly ahead of a typical blended equity/credit portfolio. While past performance is not an indication of future results, the foundation’s steady returns have supported a robust grantmaking program and additional stability for nonprofit organizations.
Grants to individuals and nonprofits in 2014
Average grant size
, 14 209 525 234 210 200 36 27 4
K-12 students participated in enrichment activities
Local residents reviewed grants as volunteers on grantmaking committees
Nonprofit staff and board attended seminars or received training
College-bound students earned scholarships
Families helped by mobile social services program NED Corps
Artists funded to create new work
Women with cancer received help with basic expenses
Disabled adults provided therapeutic shoes
Poet awarded 12-month stay in Amy Clampittâ&#x20AC;&#x2122;s house
2014 BY THE NUMBERS
$124 M , 3 543 $ 3,389 Grant dollars awarded since founding (1987)
Berkshire Taconic COMMUNITY FOUNDATION
You Can Make a Difference. We Can Help. 800 North Main Street, PO Box 400 Sheffield, MA 01257-0400 413.229.0370
245,935 people 2,200 square miles 3 states 4 counties 70 towns and 3 cities 2,600 nonprofits
On the cover: A young participant in Hudson Family Literacy Programâ&#x20AC;&#x2122;s summer camp visits Pine Bush Discovery Center during a trip made possible by the Fund for Columbia County.
Designer: Christine Casarsa Portraits: Sarah Kenyon Printed by Qualprint qualprint.com Berkshire Taconic Community Foundation is confirmed in compliance with National Standards for U.S. Community Foundations