Cfwnc annual report 2012

the community foundation of western north carolina 2012 Year End Report

inspiring philanthropy • • • • •

• •

Received $27 million in new gifts Professionally manage $185 million in charitable assets with multiple layers of supervision and diversity of investments Created 55 new funds to help donors meet their charitable goals Serve as philanthropic advisors to our 960 funds Steward 175 nonprofit charitable funds by offering expertise in administration for their investments and access to sophisticated giving tools for their donors such as charitable remainder trusts and charitable gift annuities Support professional advisors’ services to their clients and provide continuing education and networking opportunities Offer giving opportunities to donors who want to partner with CFWNC on significant grants in our focus areas: People in Need, Food and Farming, Early Childhood Development and Preserving Natural and Cultural Resources

Max Patch Photo by Wes Harkins

mobilizing resources • • •

•

• • • •

Grants in 2012 across the region and beyond of $11 million Working in our focus areas to make wise collaborative grants with the greatest opportunity for impact across the region Partnering with our fundholders, affiliate funds and the Janirve Legacy Fund to provide $694,000 in grants to human service nonprofits across the region Supporting the Women for Women giving circle to gather resources and make grants to improve economic security for the region’s women and girls Building local philanthropy through our nine affiliate funds Encouraging nonprofit best practices through WNC Nonprofit Pathways and the Capacity Grant program Awarding scholarships to students and grants to teachers Advocating for issues that affect our grantees, recognizing that substantial impact is achieved through changes at the public policy level

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Board of Directors 2012

Staff

Ernest E. Ferguson James W. Stickney, IV Terry Van Duyn G. Edward Towson, II

Chair Vice-Chair Secretary Treasurer

Marla Adams Maurean B. Adams Louise W. Baker David S. Dimling Jennie Eblen Thomas Lee Finger John N. Fleming Charles Frederick Howell A. Hammond Darryl Hart A.C. Honeycutt, Jr.

John G. Kelso Virginia Litzenberger T. Wood Lovell Tina McGuire Lowell R. Pearlman Ramona C. Rowe George W. Saenger Anna S. (Candy) Shivers Jerry Stone Laurence Weiss

Sheryl Aikman Philip Belcher Elizabeth Brazas Spencer Butler Diane Crisp Becky Davis Naomi Davis Virginia Dollar Lindsay Hearn Maria Juarez Graham Keever Lezette Parks Tim Richards Tara Scholtz Beth Semadeni Janet Sharp Sally Weldon

Vice President, Development Vice President, Programs President Donor Services Associate Program Administrator Development Officer Accounting Associate Program Officer Communications Director Scholarship Officer Vice President, Finance & Administration Development Administrative Assistant Senior Program Officer Senior Program Officer Office Manager Staff Accountant Director of Information Technology

contents 1 Introduction 2 Board of Directors & Staff 3 From the Board Chair & President 4 Sources of Grantmaking Funds 5 2012 Grants 6 People in Need 8 Food & Farming 10 Early Childhood Development 12 Funding Map 14 Women’s Philanthropy 16 Scholarships & Learning Links 18 Our Work with Nonprofits 20 Our Affiliate Funds 22 Giving Back 24 Financials

Report designed by Design One www.d1inc.com 2

Photo by Michael Oppenheim

from the chair & president Reflecting on a year of work at The Community Foundation is daunting and inspiring. Our 2011-2012 year included challenges and rewards, as well as opportunities for learning and growth. These pages report on numbers: assets, funds, gifts, grants, scholarships and more. Each is an important measure, but impact is the Foundation’s ultimate goal.

Grants – the funds we distribute across the region and beyond – carry out our mission and fulfill our donors’ charitable goals. With discretionary dollars, we work collaboratively within the region and leverage our resources for impact in our focus areas: People in Need, Food and Farming, Early Childhood Development and Preserving Natural and Cultural Resources. The last year has taught us an important lesson: focus matters.

For People in Need, 32 grants were made aggregating $200,000 from the Janirve Legacy Fund, nearly $100,000 of our discretionary dollars, $117,000 from our affiliate funds and $280,000 from our fundholders.

Together, these resources funded more than $694,000 in substantial grants to nonprofits in all 18 western counties.

Food and Farming provided opportunities for our affiliates, The Fund for Haywood County, the Foundation for Mitchell County and the Yancey Foundation, to join forces with us. Together, we selected partners for our investments. You’ll meet our grantees, including the TRACTOR team, Carolina Farm Stewardship, AgriVentures, ASAP and more, on pages 8-9. This productive work continues, and with a recent grant to the Local Produce Safety Cool to Cool Dock Project we are helping farmers keep produce fresh as it moves between warehouses, loading docks and delivery trucks, reducing spoilage and maintaining food safety standards.

Passion for children inspired two fundholders to commit resources to the “Reach Out and Read” program through our Early Childhood Development Focus Area. Donors working with us to support this program highlight the power of collaboration and the necessity of partnerships. Under the leadership of our new Vice President of Programs, Philip Belcher, we are evaluating several potential opportunities to address educational and developmental issues for children not in formal childcare settings.

With a recent $75,000 grant from the Preserving Natural and Cultural Resources Focus Area, HandMade in America will expand technical assistance and community development efforts for rural communities.

Their cultural asset-based economic development model fits our region and will produce results.

The focus areas are at different stages; but each of these projects has partnership and cooperation at its core, embodies regional promise and represents a smart investment. CFWNC has the ability — and the credibility — to build coalitions defined by trust and shared objectives, consistently focused on the challenges and opportunities facing our region. We are honored to undertake this important work with you our donors, partners and friends.

With best wishes,

Ernest Ferguson Elizabeth Brazas Chair of the Board of Directors President

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FG D

E

C

B

A

This year, CFWNC’s grantmaking totaled $11 million. Grants recommended by our donors from their donor advised funds comprise $8.5 million of the total amount. Many donor advised grants support the broad nonprofit sector and are awarded according to the donors’ philanthropic interests.

Some donors choose to co-invest with us in our four focus areas, which were identified by criteria including available funding, ability to have an impact, regional relevance, collaborative potential, funding gaps and internal capacity.

Nonprofits received $2.6 million through our Foundation’s competitive grant and scholarship programs, those for which funding decisions are made

by CFWNC Board, staff and other advisors. The graphs on the facing page illustrate this giving by broad sector.

There are more than 960 funds held at The Community Foundation that fall into broad categories. The Sources of Grantmaking chart illustrates our assets by fund type and explains the types of funds we steward. We are committed to helping our expanding family of donors accomplish their charitable goals, while addressing some of the region’s most pressing needs.

Through effective stewardship, responsive service, strategic partnerships and smart investments, we will enrich lives and communities in Western North Carolina, now and forever.

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A Donor-Advised Funds

67%

B Field of Interest Funds

13%

C Organization Funds

11%

D Designated Funds

5%

E Scholarship Funds

2%

F Affiliate Funds

1%

G Unrestricted Funds

1%

Donor Advised Funds support broad charitable purposes specified by the donor.

Field of Interest Funds support broadlydefined areas of charitable interest.

Organization Funds for nonprofits provide cost-effective access to institutional-caliber investment strategies and allow donors a full range of gift planning services.

Designated Funds benefit one or more named charities.

Scholarship Funds provide assistance to students.

Affiliate Funds support regional philanthropic and fundraising efforts by partnering with local leaders to build permanent charitable capital.

Unrestricted Endowment Funds offer broad flexibility for addressing the needs of the region.

Donor Advised Grants *and Designated Contributions

A

H

G

B F C D

A Arts*

$500,953

B People in Need

$1,375,075

C Economic Vitality

$934,827

D Environment*

$497,666

E Education

$2,497,162

F Health*

$1,588,109

G Animal Welfare H Religion

E

$96,812 $982,425

Total $8,473,029

D C

B

Focus Area Grants A People in Need

$694,411

B Food and Farming

$73,055

C Early Childhood Development

$25,000

D Preserving Natural and Cultural Resources

$1,250

Total $793,716

A

A Competitive Grant Programs & Scholarships

G B

F

A Arts

$20,000

B People in Need

$753,744

C Economic Vitality

$480,665

D Environment

$342,925

E Education

E

D

C

$430,804

F Health

$190,435

G Scholarships

$345,833

Total

$2,564,406

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D A Partners in Giving

A

B Affiliate Funds C Janirve Legacy Fund

C

$279,600 $116,810 $200,000

D CFWNC Discretionary

$98,001

Total

$694,411

B

people in need In June, the Foundation announced grants totaling more than $694,000, made in partnership with the Janirve Legacy Fund and CFWNC affiliates, fundholders and co-investors. The grants ranged from $10,000 to $25,000 and went to 32 nonprofits serving economically-disadvantaged people in 18 western counties.

These grants address access to health care, staffing needs, affordable housing, hunger, job skills and much more. In addition to the Janirve Legacy Fund and our nine affiliates, CFWNC funds that helped support this grant cycle were the Gretchen Batra Fund, Connestee Falls Endowment Fund, Gerald R. and Cornelia C. De Land Fund, Dogwood Charitable Endowment Fund, Clementine W. Gregory Fund, Little Acorn Fund, Lipscomb Family Foundation Fund, Jenifer Morgan Charitable Fund, Oliver Family Fund, Penny Fund, Peterson Endowment Fund, Sycamore Fund, Walnut Fund and an anonymous endowment fund.

The Foundation also offers Janirve Sudden and Urgent Need (SUN) grants of up to $10,000 to assist nonprofit organizations experiencing an unforeseen crisis that impacts their ability to continue to provide critical services. With a relatively small amount of funding, SUN grants help an organization address a one-time, unbudgeted and time-sensitive emergency to preserve the ability of the organization to meet its mission.

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The Foundation manages other grant programs that support people in need including: •

The Melvin R. Lane Fund grant program, promoting access to quality health care, safe and affordable housing and supportive social services for young, elderly and disabled people living in Western North Carolina.

• The Women for Women giving circle grant program that makes strategic, substantial grants to nonprofits that work to increase the economic security of women and girls in our region.

• The Biltmore Lake Charitable Fund and the Ramble Charitable Fund, supporting public education and other projects in designated areas.

As our region’s economy continues to recover, the Foundation is pleased to partner with others to strengthen nonprofits serving some of our most vulnerable populations.

Aspire, Kids at Work!

Aspire, Youth & Family, Inc. helps at-risk youth, ages 12–17, in Buncombe and Haywood counties overcome behavioral, emotional or substance abuse issues through a structured after-school activity. The unique Kids at Work! program teaches kids how to cook, but participants learn so much more.

Over the past two and a half years, Aspire has developed a solid curriculum delivering cooking instruction to more than 150 at-risk and court-appointed youth. Children are referred to the program through

school counselors, the court system, therapists and agencies such as DSS and Families Together. Based on the Say-it-Straight program, Aspire delivers communication skills training to parents and teens, which lowers risk taking and encourages a positive bond between family members.

Lessons take place in an atmosphere of safety and trust, building a strong foundation of responsibility and accountability. Counseling and behavior modeling take place, while participants develop valuable work skills, selfmotivation and the ability to collaborate and focus. As a result, students are better equipped to make positive decisions when tempted by drugs or gang activity.

“In this past year we have seen tremendous growth and development in our students,” said Program Coordinator Corey Costanzo. “We have measured an increase in positive peer and adult support, vocational skills and student self-concept. These are all considered protective factors lowering the likelihood that a teen who participates will wind up incarcerated as an adult.”

Program partners include the NC Center for Health and Wellness at UNC Asheville, MANNA FoodBank, Open Door Soup Kitchen, Daydreamz, Green Opportunities GO! Kitchen Ready Team, Juvenile Crime Prevention Committee and the Buncombe and Haywood school systems. www.aspireyouthandfamily.com Photos above: Aspire, Kids at Work!, courtesy of Perry Hebard 7

food & farming The Food and Farming focus area supports and enhances the local food movement in Western North Carolina. Goals include contributing to the revitalization of a sustainable food system that maximizes economic opportunities for farmers and food entrepreneurs and supports the sustainability and profitability of WNC farms, while addressing regional food insecurity and nutrition issues.

Strategies for achieving impact include the: • Promotion and support of emerging community-based collaborative projects • Expansion or replication of proven tools and strategies with broad community commitment including joint marketing efforts and post-harvest processing • Support of new or transitioning farmers with training, access to land, GAP Certification, business plans and more • Development of a food system that values local food, creates healthier school and home food environments and offers employment opportunities • Linking of public benefit programs (SNAP/FSN) for vulnerable children, families and seniors with increased access to healthy foods

Photos above, left to right: Haywood Farm to School; Common Ground; TRACTOR Equipment 8

The first Food and Farming grant of $25,000 was made in partnership with CFWNC affiliates the Foundation for Mitchell County and the Yancey Foundation. Funds supported TRACTOR (the Toe River Aggregation Center and Training Organization Regional), a strong alliance between Mitchell and Yancey counties creating a food hub to provide a shared aggregation facility, expanded access to customers, joint marketing and now, with CFWNC funds, rental access to key field equipment necessary for small or transitioning farmers.

“The future of farming in rural counties like Mitchell and Yancey depends on the farmers’ ability to remain profitable in a changing marketplace,” said CFWNC Program Officer Tim Richards. “In vetting this project, we were impressed with the strong multi-level collaboration and the cross county partnerships.”

Funding from The Community Foundation and its affiliate, The Fund for Haywood County, is supporting the implementation of a Farm to School program at five Haywood County Schools - Bethel Elementary, Jonathan Valley Elementary, North Canton Elementary, Riverbend Elementary and Waynesville Middle School. The program supports farmers by increasing sales and diversifying markets, while providing better nutrition and food awareness for students, teachers and staff. In addition to local healthy food served in cafeterias, the program includes farm field trips, cooking demonstrations, nutrition education and school gardens. The project serves approximately 3,000 students and staff, comprising nearly 40% of Haywood County Schools’ enrollment.

The success and sustainability of the project is tied to a homegrown and strategic approach that engages stakeholders across the food chain from farmers and buyers to teachers, parents and children. Project collaborators are NC Center for Health & Wellness at UNC Asheville, Appalachian Sustainable Agriculture Project, Haywood County Schools, Buy Haywood, NC Department of Agriculture and Consumer Services and the UNC Asheville Foundation. Other funders include the Blue Cross and Blue Shield Foundation of North Carolina and the W.K. Kellogg Foundation.

This year’s final Food and Farming grant awarded $25,855 to Carolina Ground, an initiative of the Carolina Farm Stewardship Association.

Carolina Ground is a small-scale grain milling operation in Asheville connecting North Carolina grain producers with bakeries and restaurants. Grant funds are for staff support while the recently launched mill builds sales and expands its network.

The idea for Carolina Ground occurred to miller and general manager Jennifer Lapidus after the price of wheat spiked by as much as 130 percent in 2008. At that time, local bakers were getting most of their flour from the Great Plain states, more than 1,000 miles away. Through local grain commerce, Carolina Ground offers WNC farmers and bakers an opportunity to become more sustainable and offer more stable retail prices.

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early childhood The Early Childhood Development (ECD) Focus Area aims to support children in realizing their full potential by improving educational and developmental outcomes, especially for at-risk children who are not in formal early childhood education programs.

Strategies include raising awareness of the importance of investing in early childhood development, establishing baseline data to inform strategies, evaluation and impact, attracting state and national funding partners and replicating proven programs regionally, such as Reach Out and Read.

In 2012, CFWNC joined others in contacting the North Carolina House Select Committee on Early Childhood Development to request that they not change the definition of need that would have effectively reduced the number of children served by NC Pre-K by one third. The proposed cuts did not move forward. The ECD committee also supported the Children First Child Watch Tour focused on the First 2000 Days.

“There is an emerging consensus in economics that the biggest bang for the economicdevelopment buck comes from investing in quality preschool education … Dollars spent on getting very young children, even toddlers, ready to learn, the argument goes, do more to propel students through their school careers than any other spending.”

Ted C. Fishman The New York Times Magazine September 16, 2012

Photos courtesy of Reach Out and Read 10

development Reach Out and Read CFWNC’s first Early Childhood Development Focus Area Grant supported an expansion of the Reach Out and Read program, which prepares young children living in low-income communities to succeed in school by partnering with doctors to prescribe books and encouraging families to read together.

“With $25,000 from The Community Foundation, we will bring on 3,500 additional children living in poverty,” said Callee Bouleware, Regional Director for Reach Out and Read. “We currently have new programs in the application and training process in Madison, Transylvania, Graham and McDowell counties, with several more to come.”

Reach Out and Read is unique in its intensity and depth of intervention.

By partnering with primary care providers across Western North Carolina, trained providers can reinforce literacy from the earliest possible age. The program makes reading a “doctor-recommended” activity and encourages parents to administer healthy doses at home.

Medical practitioners have unparalleled access to children, especially in their early vital years. Almost 90% of children see a health provider annually, while less than one third are enrolled in a childcare setting.

Dr. Paul Trani, a pediatrician at Blue Ridge Community Health Service and a Reach Out and Read board member, said “We have been a Reach Out and Read site for approximately six years and have seen a growth in reading as well as verbal learning skills in our clinic’s youngest children, each of whom receives a book at well-child exams up to and including age 5. The program is easy to implement, and I would love to see it in pediatric and family practice offices across Western North Carolina.”

The Reach Out and Read grant was funded in part by an anonymous donor and the Dogwood Fund. www.reachoutandreadsc.org

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2012 focus area funding & grant programs Focus Area Funding s People in Need - $694,000 32 grants in 18 counties

s Food and Farming - $73,055 to TRACTOR, Haywood Farm to School and Carolina Ground

s Early Childhood Development - $25,000 to Reach Out and Read

s Preserving Natural and Cultural Resources - $1,250 to the Town of Rutherford

Grant Programs : Biltmore Lake Charitable Fund - $60,700 : Learning Links Grants - $40,352 53 grants to teachers

: Pigeon River Fund - $116,300 to support water quality

: Ramble Charitable Fund - $24,500 serving the Shiloh and South Asheville communities

: Scholarships - $345,833 to students in 18 counties and beyond

: Women for Women Grants - $252,000

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to nonprofits serving women

: WNC Nonprofit Pathways Capacity Grant Program - $110,500 15 grants in 9 counties Since 1978, The Community Foundation of Western North Carolina has promoted and supported effective programs that have a significant and measurable impact on the lives of our citizens in the eighteen-county region we serve, and on our beloved landscape from Murphy to Morganton.

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Rutherford

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HAywood

Mitchell

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women for women Visit www.cfwnc.org for a complete list of Women for Women members, membership details, grant stories and more. For additional information, please contact Becky Davis at bdavis@cfwnc.org or (828) 254-4960.

The Women for Women giving circle is one of the Foundation’s most successful initiatives. In seven years, Women for Women has made grants of more than $1.75 million to help women and their families in Western North Carolina.

Women for Women members make a tax-deductible contribution of $1,100 each year for at least three years, with $1,000 granted back out and $100 supporting costs such as printing and meetings. The Community Foundation provides administrative and grantmaking support. The giving circle is always welcoming new members.

The focus of the Women for Women grant program is economic selfsufficiency of women and girls in Western North Carolina. At the 2012 Power of the Purse® event, grants totaling $252,000 were awarded and included: •

Burke County Public Schools/Family Connections - $47,000 for Step Up for Teens, which focuses on 12th-grade pregnant or parenting students and continues for six months after high school to help participants pursue education and job placement.

Photos above, left to right: Centro de Enlace; Elizabeth Brazas, Gloria Steinem and Marla Adams, photo by Michael Oppenheim; Family Connections Participant, photo courtesy of Family Connections; Elizabeth Brazas, Mardi Letson, Vicki Meath of Just Economics, Gloria Steinem and Carrie Keller, photo by Michael Oppenheim 14

women’s philanthropy •

•

•

•

Centro de Enlace - $55,000 awarded for a two-year project called ¡Edúcate! serving Latina women and teens in Yancey County through a multi-generational program including tutoring sessions, mentoring, financial planning, empowerment and relationship coaching, meetings with parents and overnight visits to colleges.

Just Economics - $50,000 awarded for two years to hire a community organizer for Voices for Economic Justice, which trains low-income women to advocate on their own behalf, particularly for “living wage” jobs. Funding will support activities in Buncombe County and expansion into Transylvania County.

Mountain Area Child and Family Center - $50,000 for two years for the Mothers on the Move program serving Buncombe County and providing comprehensive support, case management and free or low-cost child care to allow low-income mothers to pursue educational and professional goals.

Mountain BizWorks - $50,000 for one year to expand Empowering Latinas Through Business and Credit Building, which provides customized business coaching and loans to start or grow businesses. Participants come from Buncombe, Henderson, Polk and Transylvania counties.

The Power of the Purse® Gloria Steinem addressed a sold-out crowd of 1,025 at the 8th annual Power of the Purse® luncheon on May 21. Speaking to the large and enthusiastic crowd, Steinem was eloquent and funny in a wide-ranging talk, followed by questions from the audience. She reminded attendees that “what is important about today is that you can change tomorrow.”

In the course of her remarks, she addressed the future of the Women’s Movement, pay equality, parenting, distribution of wealth, North Carolina’s Amendment One and much more. Power of the Purse® brings a powerhouse female speaker to Western North Carolina and raises money for CFWNC’s Women’s Fund.

The Women’s Fund The Women’s Fund is a permanent endowment. Its proceeds are distributed through the Women for Women grant program. Gifts of any size can be made to The Women’s Fund.

This year, Power of the Purse® raised $89,000 bringing the endowment to $526,000.

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scholarships & learning links The CFWNC scholarship program supports deserving students from across Western North Carolina. Last year, $345,833 was awarded to 110 students. The Foundation administers approximately 60 scholarship funds, about 45 of which run a spring cycle offered to high school seniors each year. A complete list of 2012 scholarship awards can be found on our website.

In 2012, the WNC Regionals program awarded eight students a total of $80,000 in four-year renewable scholarships. Among the recipients was Rutherford County’s Adam Lawing. Showing and raising lambs since he was a little boy, he is currently fulfilling his lifelong ambition to be a large animal vet with his studies at NC State. Buncombe County’s Bryanna Williams survived a difficult home life growing up. Her excellent grades and fierce determination to overcome her background earned her the award that made it possible for her to attend UNC Greensboro. Bryanna’s ultimate goal is to become a pediatrician. Jessie Tomblin and Chris Jones from Buncombe County, Sloane McDowell from Macon County, Cabot Lee Petoia from Polk County, Misty Cox from McDowell County and Courtney Fish from Jackson County also received sizable renewable awards.

If you are interested in supporting or establishing a scholarship, contact Sheryl Aikman (aikman@cfwnc.org). Scholarship endowments can have broad eligibility criteria or can be focused on a particular school or county, offered to students pursuing a degree in a stated field or available to those who will attend a designated college or university.

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Nathaniel Ellis Cannady, Jr. Scholarship Family Gives Back and Supports Students Nathaniel Ellis Cannady came to Asheville in 1951 to work in electrical contracting with the M. B. Haynes Electric Company. Eventually, the company added general construction, heating and cooling, plumbing and other construction-related businesses, making M. B. Haynes Corporation the company it is today and providing Cannady an opportunity to achieve success.

In December 2010, Cannady established a scholarship fund to help local students pursue a career in engineering or construction. 2012 was the first award year for the new program, open to graduating public high school seniors from Buncombe, Haywood, Henderson, Madison, McDowell, Rutherford and Yancey counties who intend to study engineering, construction, project management or information technology. Two scholarships, each worth $5,000 a year for four years, were awarded to: Eli Buckner has deep roots in Western North Carolina. He graduated from Mountain Heritage High School in Yancey County and is pursuing an engineering degree from UNC Asheville. After his 2nd year, he has the option to transfer to NC State University to study mechanical engineering. If he remains at UNC Asheville, he will switch to Mechatronics, which combines different types of engineering. Buckner has an abiding interest in knowing how things work, and intends to remain in the area to work and raise a family. He says he wants to be “the man my father is because I think he raised me the right way.”

“We are investing in bright, humble, focused, high-achieving students, and - John Fleming member of the WNC Regional our community will be much better off as a result of this well-deserved help.” Scholarships Committee Sarah Rogers, of Waynesville, graduated from Tuscola High School in Haywood County. She excelled in academics and is studying engineering at NC State University. Her goal is to find state-of-the-art solutions for systems and techniques that can be utilized to solve complex problems in third-world countries. In addition to her studies, Rogers is heavily involved in community volunteer efforts and holds several part-time jobs for much of the year.

The scholarship selection committee includes two Cannady sons - Brett and Buzzy. Brett works in construction, while Buzzy is employed in the electrical end of the operation. They are both proud that their family is able to help students further their studies. “It is really rewarding to help deserving students get the education they need and deserve,” said Mr. Cannady. “Life has been good to me, and it is an honor for our family to work with The Community Foundation to give back.”

Learning Links grants offer public school teachers up to $800 so that they can provide “hands-on” creative learning projects to their students. This year, 53 grants totaling $40,352 were awarded. Sixth and seventh-grade students at Smoky Mountain Middle School in Whittier, NC, learned about working with metals and created kinetic sculpture during a four-day residency with master craftsman William S. Rogers. Students learned about the history of metalworking and then employed a variety of techniques to complete their designs. These grants are made possible by the Ben W. and Dixie Glenn Farthing Charitable Fund.

Photos above, left to right: Cannady Scholarship Recipient Sarah Rogers with a friend at the Salvation Army Boys and Girls Club of Maryland, photo courtesy of Sarah Rogers; William S. Rogers with students at Smoky Mountain Middle School (both middle photos), photos courtesy of William S. Rogers; Cannady Scholarship Recipient Eli Buckner, photo courtesy of Eli Buckner 17

our work with nonprofits Since 1978 and in partnership with many generous donors, The Community Foundation has delivered more than $130 million in grants.

Grantmaking is important, but there are many other ways that we assist nonprofits in our region.

WNC Nonprofit Pathways Formed in 2006, WNC Nonprofit Pathways is a funders’ collaborative that supports the nonprofit sector through technical support, consultancies and grants. It also hosts the Duke Certificate Program in Nonprofit Management. Pathways is built upon the belief that strong organizations make strong communities. This effort and our community leadership agenda complement each other, and our grants follow our focus areas. With our partners, we support the efforts of nonprofits to be as efficient and effective as possible.

In addition to CFWNC, funding partners include the Cherokee Preservation Foundation, Mission Hospital and United Way of Asheville and Buncombe County. Last year, this collaborative made Capacity Grants totaling more than $110,500. Pathways is also supported by The Duke Endowment, Kate B. Reynolds Charitable Trust and the Blue Cross and Blue Shield of North Carolina Foundation.

Nonprofit Endowments and Funds CFWNC helps more than 130 regional nonprofits by offering expertise in administration and management of investments. Working with the Foundation gives these organizations access to cost-effective institutional-caliber strategies and complements their development efforts with our full range of products such as charitable gift annuities and charitable remainder trusts. Through these services, nonprofits gain access to layers of supervision, diversity of investments, benchmarks and standards that an independent portfolio might not command on its own.

Late in 2011, former CFWNC board member Mike Tanner referred Hospice of Rutherford County to us for information about nonprofit fund management. After learning about our investment approach, gift planning services and charitable gift annuity program, their board placed $2.1 million under management with CFWNC. “Having served on the Board of Directors of CFWNC for several terms, I was well aware of the workings of the organization and it was natural for me to recommend them to Hospice of Rutherford County for financial investment services,” said Tanner. “After extensive interviews with various representatives by the Hospice board, including the assessment of bids by competing commercial entities, there was unanimous agreement that Hospice would be best served by CFWNC. They understood our organization and its needs, and were able to accommodate our every request.”

Photo above: Hospice of Rutherford County, photo courtesy of Rita Burch

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Hawksbill Mountain Photo by Wes Harkins

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our affiliate funds: For twenty years, The Community Foundation has helped extend philanthropy across Western North Carolina through geographic affiliate funds. Each affiliate’s endowment fund grows through gifts, makes grants now and is a permanent philanthropic resource for the future. Through local leadership, affiliates connect resources to needs. Our affiliates are: Black Mountain – Swannanoa Valley Foundation Established in 1999; June 30 assets* exceeded $1.43 million Board members: Sandra Abromitis, Mike Begley, Gladys Brooks, Joan Brown, John Buckner, Julia A. Capps, John Corkran, Lynn Deese, Barbara Griffin, Jerone Herring, Roger Hibbard, William G. Hollins, Jeff Hutchins, Jim Lenhart (Co-Chair)†, Gretchen Naff, Connie Root (Co-Chair), Archie Pertiller and Lori Turley († in memoriam) *The Board also makes grants from the Buckner Family Endowment Fund and the Helen S. and Jerry M. Newbold, Jr. Endowment Fund.

Cashiers Community Fund Established in 1992; June 30 assets exceeded $2.68 million Board Members: Lisa Bates, Sanford Bishop, Patrick Carlton, Charles W. Coker, T. Wayne Davis, Robert Dews, David S. Dimling, Louis M. Freeman, Shannon Hargrove, Russell Holliday, Sam Lupas, Becky McKee, Edward G. Michaels III, Sarah Nelson, Harry Phillips, Jr., Fritz Rybert, Dearl Stewart, Toby Summerour, Tommy A. Valenta, R. Preston Wailes, Margaret Smith Warner and Eleanor Welling (Chair)

The Fund for Haywood County Established in 1994; June 30 assets* exceeded $709,000 Board Members: William C. Allsbrook Jr., Louise Baker (Co-Chair), Libba Feichter, Dionne Ghaussy, George D. Ivey, Rolf Kaufman, John Keith (Co-Chair), Bruce Kingshill, Christine Malette, Peggy Melville, Jeremy Phillips, Bennie Sharpton, Sarah Wenzel and Kenneth Wilson *The Board also makes grants from the J. Aaron and Adora H. Prevost Endowment Fund.

Highlands Community Foundation Established in 1996; June 30 assets* exceeded $1.01 million Board Members: Tricia Allen, Katherine Bowman, W. Jack Brinson, Laney Capron, Caroline Cook, Gayle Cummings, Amanda Gregory, John Hopkins, T. Wood Lovell (Chair), John Ludwig, Jean Manz, Sidney J. Nurkin, Nancy Parker, Stan Sharp, Allen L. “Buck” Trott and Willis Willey *The Board also makes grants from the Mildred Miller Fort Fund and the Hertwig Fund.

Photos above, left to right: Smart Start of Transylvania County, photo courtesy of Smart Start; Warren Wilson College students who harvested 1,200 pounds of squash for a local food pantry, photo courtesy of Warren Wilson College; Literacy Council of Highlands after-school enrichment program, photo courtesy of Literacy Council of Highlands

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extending philanthropy The McDowell Foundation Established in 1995; June 30 assets* exceeded $401,000

Transylvania Endowment Established in 1998; June 30 assets* exceeded $622,000

Board Members: Ellen “Bunnie” Salsbury Burgin, George Simeon Butler, Arthur Campbell, Rebecca B. Cross, Simeon R. Cross, Laura Dover Doran (Chair), Amy England, W. Hill Evans, Nancy Hunter, Ray McKesson, Rob Noyes, Sharon Lee Parker and Joy Shuford

Board Members: Sara Champion, W. Andrew Harvill, Ken Henry, Kevin Jones, Maurice Jones, Betsy Jordan, Scott A. Latell, George Lenze, Amye McCallie, Lydia Odell, William Thomas Penn, Thomas F. Perry, Kenneth G. Racht (Chair), Louisa Reed, Margret Riecke, John R. Rowe Jr. and Jerry Stone

*The Board also makes grants from Margaret Westmoreland Gibson Memorial Fund, A.C. Hogan Family Fund and the Daniel I. and Joy Q. Shuford Fund.

Foundation for Mitchell County Established in 1999; June 30 assets exceeded $230,000 Board Members: Daniel Barron (Chair), Brett Cloer, Jane Crowe, A. Christopher Day, Patty Elkins, Rhonda Gunter, Delphia Lamberson, Susan Larson, Sue Ledford, Cindy Lindsey, Fred Manning, Nikki Peters, Silvia Peterson, Nikki Street, Chris Warren and Sandra Williams Rutherford County Foundation Established in 1996; June 30 assets exceeded $1.49 million Board Members: Jane A. Bell, C. Philip Byers, Mike Gavin, Vernon Hoyle, Katy Hunt, Peggy Jaski, Myra Johnson, Joan King, Sally Lesher (Chair), Sandra McGriff, Karen Moore, Juanita Newton, Janice Paris, Michael S. Tanner, Nancy Tanner, Diane Warner, Claudia Wilkins and Dick Wilkins

*The Board also makes grants from the Transylvania Directors’ Fund, Burlingame Charitable Fund, Lake Toxaway Charities Endowment Fund, Richard G. Adamson Memorial Fund, My Brother’s Keeper Fund and the Duncan-Bicknell Endowment Fund.

Yancey Foundation Established in 1998; June 30 assets exceeded $434,000 Board Members: Joan K. Alexander, Patricia Bennett, Mel Chin, Paul “Bubba” Crutchfield, William O. Cullom (Chair), Rex Frederick, Howell Hammond, Dick Kennedy, David McIntosh, Jim McQueen, Tom Oreck, Ron Powell, Wanda Proffitt, David Strawn, Carol Wilson, Carol Woodard and Sam Young To learn more about our affiliates, visit www.cfwnc.org

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Sunset at Black Balsam Photo by Wes Harkins

giving back The Community Foundation of Western North Carolina works with people like you to create a lasting impact. For people who want to give back or support a favorite cause or a place they love, the Foundation is a trusted partner. We’ll work with you to craft a custom philanthropic solution that meets your priorities, now and into the future.

You tell us what you want to accomplish.

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I want to make a tax-deductible gift now: Make a gift in any amount to the Fund for Western North Carolina, a geographic affiliate or to support a cause or organization you care about.

I need efficient tools for my personal giving: With $10,000 or more, create a donor advised fund. You focus on your favorite causes, make grants on your schedule and access staff expertise when you need it. Online access lets you track grant and fund activity, anytime, from anywhere.

I plan to leave a legacy: A bequest in your will or a beneficiary designation can add to or create a fund to support your chosen causes – or the changing needs of Western North Carolina – forever.

I want to create income or preserve assets: Secure income and tax advantages now and provide for a future charitable gift with a charitable gift annuity or charitable remainder trust. A charitable lead trust preserves assets for heirs and funds your charitable giving now.

You have many gift-giving options. Most people use cash, stocks, bonds and mutual funds. You can also give real estate, closely-held stock, a retirement account or a life insurance policy, now or from your estate.

Your gift can grow over time. With the power of endowment, your gift keeps giving for decades to come. We pool assets to keep investment and administrative costs low.

You can share in good work across our region. CFWNC has initiatives in four focus areas: Early Childhood Development, Food and Farming, People in Need and Preserving Natural and Cultural Resources. Partner with us to learn from insiders and experts, contribute to large-scale grant funding and produce results.

You can start now. Our staff is here to guide you. We’re always happy to discuss charitable vehicles, gift timing and asset choices with you and your professional advisor.

Working with Professional Advisors

Working with Donors

Professional advisors – attorneys, accountants, financial and investment advisors and insurance professionals – are important partners in building philanthropic resources for Western North Carolina. CFWNC works with advisors across the region, providing technical advice, online resources and customized gift planning solutions. The Foundation hosts an annual continuing education seminar and informal luncheon seminars.

CFWNC is available to share expertise in complex gift arrangements, recent developments in charitable planning and for meetings and consultations.

NOAA meteorologist Marjorie McGuirk builds collaborative projects with businesses and professional organizations that are sensitive to climate. An expert consultant to the World Meteorological Organization, she is a contributing author to the Framework for Climate Services, which underpins international collaboration in climate adaptation.

She brought the “Gaming the Future” conference to Asheville and spearheaded “Planning for our New Energy and Climate Future” with the American Planning Association. When Marjorie and her husband David relocated in Asheville after his retirement in 2002, they opted to work with The Community Foundation to focus their charitable giving. “I heard from several friends about the professionalism of the Foundation and knew that they would do a good job of managing our funds responsibly. I also trust the Foundation to vet organizations within the region for effectiveness better than I could do on an individual basis.”

In 2011, Marjorie joined the Women for Women giving circle and opened a flexible donor advised fund.

“The Community Foundation of Western North Carolina helps me help my clients. I trust them to provide giving solutions that fit my clients’ needs. Serving on the Rutherford County Foundation affiliate board, I experienced their regional knowledge, commitment to stewardship and professionalism up close. When I have a client who wants to give back – to their chosen causes, Rutherford County or beyond, I count on CFWNC as a partner.”

Matt Bright, Financial Advisor Raymond James Financial Services, Inc., Member FINRA/SIPC 124 Yarboro Street, Forest City, NC 28403

CFWNC is not affiliated with Raymond James.

Photos above, left to right: Matt Bright, photo courtesy of Raymond James; Marjorie McGuirk, photo courtesy of Marjorie McGuirk 23

stewardship of community assets The thoughtful stewardship of The Community Foundation’s assets is a critical responsibility of the Board of Directors. The Foundation’s investment program utilizes multiple levels of oversight in managing assets.

The Foundation’s Investment Committee, comprised of local professionals with investment and financial expertise, has responsibility for all aspects of investment activities including the investment policy, asset allocation and performance review.

A consulting firm strengthens and informs the work of the Investment Committee through analytical studies, manager searches and the compilation of performance data. Multiple investment managers provide value to the Foundation’s investment process through the application of their knowledge and experience in portfolio management.

The Community Foundation allows fundholders to recommend an investment option from among multiple portfolios under the oversight of the Investment Committee. Donors may request to have the investment management of their charitable fund provided by the following firms:

Altamont Capital Management Altavista Wealth Management

Bank of America

Boys Arnold & Co. Colton Groome & Co. Merrill Lynch

Parsec Financial Management Raymond James & Co. UBS Wealth Management For funds not otherwise recommended by donors, the Foundation invests in a broadly-diversified portfolio that provides strategic allocations to equities, fixed income and alternative investments.

The Community Foundation has a sustained record of managing prudent investment strategies. We offer donors and nonprofit organizations access to institutional investment strategies and management normally available only to large investors. Donors and nonprofit organizations can capitalize on the benefits of this multi-manager, diversified approach by working with The Community Foundation.

Annualized Investment Returns Through 6/30/2012

Asset Allocation as of 6/30/2012

One Year Three Years Five Years Ten Years

Domestic Equity International Equity Emerging Markets Equity Alternative Investments Real Estate Fixed Income Cash Equivalents

CFWNC Benchmark* -0.3% 0.7% 10.2% 10.1% 0.4% 1.7% 4.9% 6.1%

*The benchmark utilized is 60% MSCI World, 40% Barclays Aggregate index. Investment returns are reported net of investment expenses.

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32.7% 18.5% 3.5% 18.7% 2.2% 22.0% 2.4%

100%

Statement of Financial Position

2012

2011

5,801,937 20,785 90,134 287,500 92,306,944 413,973 1,045,186 84,728,513

2,352,792 22,714 92,254 453,100 90,407,391 38,976 544,186 80,114,886

184,694,972

174,026,299

325,950 55,240 5,638,598 40,668,858 46,688,646

312,500 46,904 6,154,870 38,003,240 44,517,514

(138,388) 53,416,201 84,728,513 138,006,326

96,380 49,297,519 80,114,886 129,508,785

184,694,972

174,026,299

Assets

Cash & cash equivalents

Prepaid expenses Accounts receiveable Promises to give, net Investments Property and equipment, net Real Estate Investments, restricted for endowment

Total assets

Liabilities and net assets Liabilities

Grants and scholarships payable Accounts payable Liabilities under split-interest agreements Funds held as agency endowments Total liabilities

Net assets

Unrestricted (deficit) Temporarily restricted Permanently restricted Total net assets

Total liabilities and net assets

Statement of Activities

Note: Standards of financial accounting for nonprofit organizations affect the reporting of charitable remainder trusts and certain endowment funds managed by The Community Foundation for other nonprofit organizations. On the Statement of Activities, among the categories of revenues and expenses impacted by these reporting requirements are Contributions and Program Services, which includes grant distributions.

References to Contributions and Grants in other parts of this annual report reflect total contributions received and total grants disbursed.

2012

2011

22,481,558 2,026,438 (2,340,365) (531,243) 293,933 49,234 200,152 22,179,707

12,506,664 2,311,165 16,323,799 388,433 294,895 117,546 153,953 32,096,455

12,488,032 1,194,134 13,682,166

9,100,550 1,094,150 10,194,700

8,497,541

21,901,755

Net assets, beginning of year

129,508,785

107,607,030

Net assets, end of year

138,006,326

129,508,785

Revenues and other support

Contributions Investment Income Realized and unrealized losses - net Change in value of split-interest agreements Management fee income Grant income Other income Total revenues and other support

Expenses Program services Supporting services Total Expenses

Change in net assets

the community foundation of western north carolina people place prosperity P.O. Box 1888 Asheville, NC 28802 (828) 254-4960 www.cfwnc.org The evocative cover photo of Hawksbill Summit, located on the eastern rim of Linville Gorge in Burke County, and the beautiful landscapes in these pages are the work of Western North Carolina photographer Wes Harkins. These images and others will hang in The Community Foundation’s new offices at the historic Biltmore School when we relocate early in 2013. We are grateful to Phyllis Penley Patton, for it is her generosity that makes the use and display of Harkins’ work possible. www.wesharkinphotography.com

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Confirmed in compliance with national standards for U.S. Community Foundations