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ANNUAL REPORT

2011

CONNECTING PEOPLE TO THEIR PARKS


TABLE OF CONTENTS

FROM OUR CHAIRMAN OF THE BOARD AND OUR EXECUTIVE DIRECTOR

LETTER FROM THE CHAIRMAN AND EXECUTIVE DIRECTOR . . . . . . . . . . . . . . . . . 3 LETTER FROM THE MAYOR . . . . . . . . . . . . . . . . . . . 4 ACTIVE PARK PROJECTS MAP . . . . . . . . . . . . . . . . . 6 PARK PROJECT HIGHLIGHTS CORRINE JONES PLAYGROUND . . . . . . . . . . . . . 8 ELLIOTBOROUGH COMMUNITY GARDEN . . . . 10 MAGNOLIA-SYCAMORE GREEN SPACE . . . . . . 12 VOLUNTEERISM PARK ANGELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 AQUA ANGELS . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 COLLEGE OF CHARLESTON GRADUATE STUDENTS . . . . . . . . . . . . . . . . . . . 18 OUTREACH COMMUNITY OUTREACH . . . . . . . . . . . . . . . . . . 20 PARTY FOR THE PARKS . . . . . . . . . . . . . . . . . . . . 22 LISTINGS BOARD OF TRUSTEES . . . . . . . . . . . . . . . . . . . . . 24 2011 SUPPORTERS . . . . . . . . . . . . . . . . . . . . . . . . 26 PARK ANGELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 SUPPORT YOUR PARKS . . . . . . . . . . . . . . . . . . . . . . 30 FINANCIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Our organization began with a relatively simple mission: to connect people to their parks. By improving the quality of our local parks and promoting their benefits and amenities, we are encouraging locals and visitors to explore the more than 120 parks and green spaces within the City of Charleston.

As awareness of our mission has grown we’ve seen more supporters, donors and community partners come together for the good of our city’s parks. This year 150 new Park Angels joined our cause, bringing our total to more than 500 volunteers. Those Park Angels donated 2,483 hours of time to Conservancy programs.

Over the course of 2011, we made significant progress toward that goal as evidenced by our growing number of Park Angel volunteers, our attendance at events and fundraisers and our partnerships with community groups and neighborhood organizations.

Our major fundraiser, Party for the Parks, brought in $63,000 thanks to sponsors and attendees. The party with its street vendors, multi-talented performers and delicious food allowed us to spread the word about our mission while having a great time.

Working with the Mount Pleasant Land Conservancy, residents of the Avondale area and Charleston County, we were able to acquire 3.7 acres of prime urban park land in West Ashley. The site will be developed as the city’s first Urban Horticulture Center.

As we wrap up the year we pause to look at just how far we’ve come. None of it is possible without our dedicated volunteers, supporters and donors. Your contributions – whether time, talent or treasure – have helped us to further our mission.

Another amazing community partnership resulted in a revived Corrine Jones Playground. We worked with local businesses, neighbors and the City of Charleston to replace 15-year-old playground equipment with a larger playground area and new equipment. All you need to do is ask the neighborhood kids about the success of this project.

From the Board of Trustees and the Conservancy staff, we offer our thanks for your past and continued support in helping connect people to our parks.


FROM MAYOR RILEY, CITY OF CHARLESTON On behalf of the City of Charleston and the Departments of Parks and Recreation, I am pleased to join with the Charleston Parks Conservancy in recognizing its accomplishments in 2011 and offering my thanks to the volunteers, donors and supporters who have worked so hard to make our city parks amazing spaces where we can play, exercise and unwind.

The Conservancy, in a few short years, has engaged the Charleston community in actively supporting the parks in exciting new ways. The Conservancy doubled its work this year with projects in 23 city parks and green spaces. While the city manages our parks with the resources available, the Conservancy continues to act as a catalyst in bringing new resources. New Corrine Jones Playground equipment, future plans for an urban horticultural center and new gardens at Cannon Park, Simonton Park, Brittlebank Park and Elliotborough Community Garden are but a few examples of the Conservancy’s unique ability to fund enhancements to our parks over and above what the city might be able to accomplish without its efforts. Over this year, the Charleston Parks Conservancy has continued to establish itself as a model public-private partnership. Its work promotes the long-term health and vitality of the parks we all love. It is my belief that the quality of a city is directly related to the quality of its parks. The Conservancy’s mission helps make that possible through its continued work in our community.


26

ACTIVE PARK PROJECTS ETIWAN PARK 526

MAGNOLIA - SYCAMORE MORE ORE E GREENSPACE P PA PAC PACE EN NWA AY WEST ASHLEY GREENWAY WINDERMERE W WINDER WIN DERM RMERE MERE E RA ACE AC E RIVERLAND TERRA TERRACE MAYBANK TENNIS CENTER

526

UPPER MEETING STREET GREENSPACE

26 CORRINE JONES PARK SIMONTON PARK TIEDMANN PARK CHAPEL STREET BRITTLEBANK PARK EAST BAY PARK MARION SQUARE ELLIOTBOROUGH ALLAN PARK

CANNON PARK

LOGAN PARK

GIBBES MUSEUM COLONIAL LAKE

HAZEL PARKER PLAYGROUND

Allan Park Brittlebank Park Cannon Park Chapel Street Fountain Park Colonial Lake Corrine Jones Park East Bay and Calhoun Park Elliotborough Park and Community Garden Etiwan Park Gibbes Museum Courtyard Garden Hazel Parker Playground Logan Park Magnolia – Sycamore Greenspace Marion Square Maybank Tennis Center Riverland Terrace Greenspace Simonton Park Tiedemann Park and Nature Center Upper Meeting Street Greenspace West Ashley Greenway Windermere Boulevard Community Garden


8 | PROJECTS

CORRINE JONES PLAYGROUND Dozens of volunteers, donors and neighbors played a role in turning a worn out playground into a revitalized space with new equipment and plenty of room for children to run and play. In late 2009, a group of neighborhood residents met with the Conservancy to start a conversation about the options for an updated playground. From that initial discussion grew a community led effort to raise money for new playground equipment and plantings. The Corrine Jones neighborhood spent more than a year raising $20,000 toward the park renovation while the Conservancy facilitated between neighbors and the city to create a plan for a new playground. Thanks to business and personal donations plus community fundraising events, the project came together in October when about 40 volunteers, along with Conservancy and City of Charleston staff, spent a full day assembling the equipment, sifting sand for a play area and spreading a mound of mulch. This project was a true testament to what the Conservancy can do when it joins with the community for park renovations and improvements.

BY T HE

NUMBERS

2,483 r hours Park Angel voluntee


10 | PROJECTS

ELLIOTBOROUGH COMMUNITY GARDEN Elliotborough Park and Community Garden literally grew up in spring 2011 thanks to students from the Clemson Architecture Center in Charleston. The architecture and landscape architecture students worked with the Conservancy to design and build a vertical garden in the park. The garden runs parallel to the fence along the road and is outfitted with solar lights, spelling “ECG” so passers-by on the Crosstown know it’s the Elliotborough Community Garden. The students also added lockers for storing tools and supplies as well as compost bins. Clemson students were just one of the groups working in Elliotborough. Groups of volunteers from local law firm Motley Rice and a downtown Charleston Starbucks gave their time to improve the garden, truly putting the “community” into this community garden. The Conservancy received two community grants for the Elliotborough vertical garden project from the Bakker Family Fund of the Coastal Community Foundation of South Carolina and Keep Charleston Beautiful.

PROJECTS | 11


12 | PROJECTS

MAGNOLIA-SYCAMORE GREENSPACE A community of very vocal supporters, a like-minded conservation group and a vision for Charleston’s horticulture future led to a major land acquisition for the Conservancy in 2011. The entire effort began when a resident living near a 3.7-acre vacant lot on the corner of Sycamore Avenue and Magnolia Road in West Ashley inquired about whether he might plant some vegetables on the vacant lot. That inquiry snowballed into the Parks Conservancy partnering with the Mount Pleasant Land Conservancy to apply for money from Charleston County’s Greenbelt Program to purchase the property for a future community garden and horticultural center. Thanks to an outpouring of community support, Charleston County Council approved the request to conserve the property through Charleston County’s Greenbelt Program in August. In October, the Charleston Parks Conservancy, Mount Pleasant Land Conservancy and the Greater Avondale community along with Charleston County Council representatives gathered to celebrate the forthcoming transformation of the empty lot into an amazing community resource. They planted three live oak trees on the property, a symbol of the relationship among the Parks Conservancy, the community and the municipalities.

BY T HE

NUMBERS

6

ded new green spaces adin 2011 s to Charleston park


14 | VOLUNTEERISM

PARK ANGELS This year our Park Angel ranks grew to 550 people who expressed their commitment to Charleston’s parks and green spaces. Our Park Angels gave their time, talents and energy to planting, watering and weeding as well as helping with community events and fundraisers and spreading the word about the Conservancy and its mission. In fact, volunteers gave almost 2,500 hours of time to our cause.

BY T HE

NUMBE

150

RS

new Park Angels jo ranks, bringing in the volunteer the total to 550 !


16 | VOLUNTEERISM

AQUA ANGELS This year the Conservancy launched a new volunteer program called Aqua Angels. Several volunteers picked up a hose and spent 344 hours watering various parks. Thanks to the Aqua Angels, our plants and park gardens stayed lush and green throughout the withering heat of the Charleston summer. Aqua Angels could select a park and a watering time that was convenient to their schedule, making this an ideal way for anyone to get involved.

VOLUNTEERISM | 17

BY T HES NUMBER

344 ent hours Aqua Angels sp’s parks watering Charleston


18 | VOLUNTEERISM

COLLEGE OF CHARLESTON GRADUATE STUDENTS ADOPT THE CONSERVANCY Students from the College of Charleston Graduate Student Association selected the Conservancy as their philanthropy project for 2011. The students raised money and volunteered time to help plant a new garden at Cannon Park near their campus. While juggling their school schedules, they assisted with a winter rose pruning at the park, notified the nearby Harleston Village neighborhood of the ongoing project, and got their hands dirty prepping the soil for a new flower bed. In April, they spent more than five hours planting 350 plants in a new bed at the base of the columns leftover from the old Charleston Museum.

“Heading to parents house to put some @CharlestonParks vegetable garden advice to work!� @chasinsideout/Twitter

OUTREACH | 19

EDUCATE YOU At the end of this year we began to significantly expand our Educate You programming initiatives to include more classes and activities for children. By teaching children to love, appreciate and respect nature, they grow into environmentally conscientious adults who have a deep connection to their parks and green spaces. We continued our popular Help for the Home Gardener series of classes, giving beginner gardeners the tools they need to grow their own fruits and vegetables while helping them establish a deeper connection to the soil and what it can produce for them.


20 | OUTREACH

OUTREACH | 21

COMMUNITY OUTREACH A key aspect of our mission is connecting people to their parks. We do that by hosting events in the parks as well as joining in community events that promote parks, green spaces and connecting to the outdoors. The second annual springtime Park Week encouraged the community to get out and enjoy their parks in a variety of ways: on their bikes, with their pets or with their families. The Conservancy also participated in the annual Green Fair in Marion Square, connecting with the community and other like-minded organizations on the concepts of conservation, protecting the environment and thriving in the natural space around us.

HE B Y T BERS NUM

23

he paces t he year s n e e r er t nd g parks a y worked in ov anc Conserv


22 | OUTREACH

PARTY FOR THE PARKS In just its second year, the Party for the Parks – Amusement on the Avenue was a rousing success both in terms of exposure for the Conservancy and its programs and as a fundraiser. Originally planned as an outdoor event at Colonial Lake, the weather forecast turned ominous and the event was moved to the Gaillard Municipal Auditorium. The organizers brought the outdoor theme inside with tents, plants and lighting to mimic the nighttime sky. Thanks to the hard work of the planning committee and sponsors, the event raised more than $60,000.

BY T HE

NUMBERS

$63,000 amount raised at the second annual Party for the Parks


24 | LISTINGS

BOARD OF TRUSTEES

STAFF

Darla D. Moore, Chairman

Jim Martin, Executive Director

Michael Brewer

Jenny Bloom

Sandra Deering

Sarah Craig

Jim Fields

Liles Eanes

Linda Guy

Kellen Goodell

Gregory Muth

Romaine Heyward

Scott Parker

Mary Horton

T.J. Parsell, Jr.

Amelia Jenkins

Pamela Pearce

Neves Richards Brittany Wallace Paul Wentz

COMMUNITY PARTNERS Charleston Horticultural Society City of Charleston Clemson Architecture Studio V in Charleston College of Charleston Graduate Student Association Gibbes Museum of Art Mount Pleasant Land Conservancy Rotary Club of Charleston - Breakfast


26 | LISTINGS

LISTINGS | 27

2011 SUPPORTERS $5000 and above ............................. Mr. Robb A. Allan Ms. Darla Moore $2,000 to $4,999 ............................. ABC Studios Army Wives - Season 4 Anonymous The Bakker Family Fund of the Coastal Community Foundation of South Carolina Mr. and Mrs. Michael Brewer DesignWorks Mr. and Mrs. Michael Dougherty The Gould Company Keep Charleston Beautiful Longborough Owners Association Lowndes Pointe Property Owners Association Inc. Mr. and Mrs. Gregory J. Muth Wagener Terrace Neighborhood Association

BY T HE

NUMBERS

2,810 TWITTER FOLLOWERS

$1,000 to $1,999 ............................. Ms. Ruth B. Barrow Ms. Charlotte B. Beers Mr. Wes Carter Mr. Cary Chastain The Citadel Foundation Mr. Francis X. Clasby First Citizens Bank The King, Inc. Ms. Jennifer LePage Marshall Walker Group MeadWestvaco Dr. and Mrs. E. Conyers O’Bryan, Jr. Ms. Johnnie Reed Riverland Terrace Garden Club Ron Davis Realtors Royal Cup Coffee Synergy Unlimited, LLC $500 to $999 ............................. Anonymous Mr. and Mrs. Gregory H. Atkinson Barre Evolution, LLC Cassina Group, LLC College of Charleston Graduate Student Association Community Foundation of Greater Birmingham Mr. and Mrs. Kevin J. Conlon Coppedge and Tison Real Estate Ms. Traci D. Davis and Ms. Cassandra D. Salgado Mr. James P. Fields, Jr. Graywade, LLC

Mr. Marlon E. Kimpson Mr. and Mrs. James Ledlie Magnolia Plantation Foundation Manaker Cipolla and Associates, LLC Mr. Theodore B. Manuel Mr. James D. Martin Morris Square Townhomes Mr. and Mrs. Marc Murphy Mr. John M. Rivers, Jr. Rotary Club of Charleston Breakfast Mr. Andrew Savage Schwab Charitable Fund Soomro Enterprise, LLC Mr. Dan Thompson Mr. Charles S. Way, Jr. $100 to $499 ............................. Mr. and Mrs. Timothy A. Barkley Ms. Claire Berlinsky Ms. Julie Blair Ms. Amy Buckley Ms. Mary Bullen Buxton Legal Group Ms. Carolina Byran Ms. Cecelia Byers Mr. Jamieson Clair Cottage Aroma Bella Spa Mr. Nathan M. Crystal Dr. and Mrs. Brian G. Cuddy Ms. Lauretta L. Dailey Mr. and Mrs. Brian Danley Ms. Hilda Debacker Mr. and Mrs. Spencer Deering Mr. and Mrs. Garrett J. Dieck

Mr. and Mrs. Harry Drabkin Mr. and Mrs. Charles Duell Mr. and Mrs. James T. Dyke, Jr. Mr. and Mrs. Brian Eanes Ms. Claire Eadon Mr. Marc Engelke Mr. and Mrs. David B. Epstein Ms. Margaret L. Ehrhardt Ms. Courtenay M. Fain Mr. Ian Freeman Ms. Melissa Garvan The GE Foundation Mr. and Mrs. Robert Hagood Mr. and Mrs. Chappell Halstead Mr. Ronald Hansen and Mrs. Susan Siegmund Mr. David B. Herring and Ms. Sundi H. Smith Hewitt & Hewitt Mr. and Mrs. Demetre Homer Mr. and Mrs. Bobby Hood Ms. Emily Jeffers Ms. Amelia Jenkins Mr. and Mrs. Richard T. Jerue Mr. and Mrs. James Kerr Mr. and Mrs. Scottie Kimble Ms. Hilary Kuss Mr. J. Michael Light and Dr. Yalani L. Vanzura Mr. and Mrs. Larry Lipov LuAnn McCants Interiors Ms. Lynn McCollum-Lasher Ms. Gia McKenzie Ms. Julia Mims Moss and Lewis CPAs Mr. and Mrs. David Pastre Mr. and Mrs. John L. Paul Mr. Randall Phillips

Mr. Tarek W. Ravenel Mr. and Mrs. Mikell Richards Mr. and Mrs. Carter Rowson Mr. and Mrs. Jonathan Sanchez Mr. and Mrs. William Simpson Ms. Michelle Smyth Ms. Jennifer Snowden Stitch No 9, LLC Ms. Kirsty Sutton Mr. and Mrs. Jules Tomlinson Ms. Leslie A. Turner Mr. and Mrs. Trenholm Walker Mr. and Mrs. Clarke Wallace Ms. Sheila Wertimer Mr. and Mrs. Frederick H. West Mr. and Mrs. William Whalen Mr. and Mrs. Matthew Yoder $25 to $99 ............................. Mr. and Mrs. Robert L. Anderson Mr. and Mrs. Travers Auburn Mr. and Mrs. David AvRutick Mr. and Mrs. John Barham Building Art LLC Mr. Robert Cain Camp Bow Wow of Charleston Mr. Mark Carr Ms. Constance J. Clasby Ms. Donna Corcoran Ms. Susan Ditterline Mr. Walter Duane Ms. Edith DuBose Ms. Jaquelin P. Fleet Mr. and Mrs. Brent Gibadlo Mr. Ryan Glenn

Mr. and Mrs. Robert C. Goodell Ms. Mary Haight Mr. and Mrs. Edwin Harley Mr. and Mrs. Carter C. Hudgins Mrs. Amy K. Hutchinson Island Home Dog Training, LLC Mr. and Mrs. James R. Koonce Mr. and Mrs. Edward Lenahan Mr. Walter Limehouse Mrs. Amanda Long Mr. and Mrs. Brooks Matthews Ms. Anne Meadors Mr. and Mrs. John Milkereit Ms. Ellen Mooney Mr. and Mrs. Jason O’Leary Mr. Brady Quirk-Garvan Mr. Randall Rawson Mr. and Mrs. Robert L. Rone Scout Horticultural Consulting Sun Dog Cat Moon Ms. E. Bailey Surrett Mr. John Warren III Ms. Linda Whitworth Ms. Harriet P. Williams Ms. Laurie Yarbrough Mr. and Mrs. Thomas D. Young


28 | LISTINGS

LISTINGS | 29

GIFTS IN KIND ............................. 44 North Vodka Amen Street Fish and Raw Bar Bank of South Carolina Bauer International’s Island House Braxton Crim Graphic Design Brent and Becky’s Bulbs Call Me Libby Carolina One Real Estate Caroline’s Market & Catering Charleston Area Convention & Visitors Bureau Charleston Cookie Company Charleston Dog Walker Charleston Magazine Charleston Riverdogs Cottage Aroma Bella Spa Cupcake David’s Catering & Confections DwellSmart e house studio, llc EventWorks Rentals FastSigns of Charleston Ms. Jaquelin P. Fleet Flower Cottage Francis Marion Hotel Golf Cars of Charleston Harris Teeter Harry Barker Incorporated Holy City Brewing Hughes Rental Husk Icebox Innovative Beverage Services

TRIBUTE GIFTS ............................. Kings Courtyard Inn Knight Printing and Graphics La Fourchette Malandro Soul MINI of Charleston Oak Steakhouse Ole Charleston Forge Organic Garden Supply Osteria La Bottiglia Pearlstine Distributors Piggly Wiggly Production Design Associates Ms. Jennifer L. Rader Soiree by Tara Guerard South Carolina Aquarium Specialty Trees Sugar Bakeshop The Teak Hut Total Beverage Solution Mr. and Mrs. Gregory Van Schaack Vapor Apparel

South Carolina Beer . . . . . . . . . . In Honor of Darla Moore Wholesalers Association Ms. Anne Blessing. . . . . . . . . . . . In Honor of Molly Young The Beach Company . . . . . . . . . In Honor of Sargeant Jasper Ms. Melissa Garvan . . . . . . . . . . . In Honor of the Staff at Morris Financial Planners Mr. and Mrs. William Oehler . . . In Honor of Judy and Cole Oehler Mr. DuBose Egleston . . . . . . . . . In Honor of Amy Jenkins Mr. Charles Owings. . . . . . . . . . . In Honor of Capers Owings, Jr. Mr. and Mrs. Stephen Hoffius . . In Memory of Magoo Dunn Hoffius

2011 PARK ANGELS GARDEN IN THE PARKS VOLUNTEERS ............................. Joan Fluett Tim Agee Lauren Garcia Katie Anweiler Melissa Garvan Van Atkins Sara Gouldon Van Atkins Beverly Gumb Debbie Austin Pauline Haber Ledlie Bell Pat Harpell Joan Berry-Warder Nancy Hart Ron Boyce Eddie Hewitt Amy Buckley Romaine Heyward Leslie Brady Sharon Hitzelberg Ann Calhoun Lee Hopkins Karen Caplan HPP Community Helpers Tommy Ceccuzzi Group Citadel Heroism Day Volunteers Fran Hummell The Charleston Riverdogs Staff Germanine Jenkins Josh Childress Katie Kerns College of Charleston Graduate Rolf Kolconay Student Association Bob Linker Gwen Corinth Neltie Linker Susan Corning Andrea Lovejoy Diana Councell Ron Lovejoy Nick D’Allasandro Susie Marcell James Deering Beth McGinty Sandra Deering Eileen McGuffie Katie Dickson Catherine McGuinn David Dubois Debbie McNally Susan Epstein Libby Metzler

Jim Midgely Joann Milkreit Pat Miner Motley Rice Volunteers Frank Nellis Ben Newton Liese Nichols Megan Nista Stephanie Oppenheimer Randall Phillips Tina Ragonia Pam Rhodes Donna Schnupp John Seidler Starbucks and Clemson Architecture Josh Stoble Wofford Stribling MarleneWentz Mary Wilbur Claire Xidis

AQUA ANGELS .......................... Debbie Austin Michelle Bing Cryste Carroll Diana Councell Melissa Garvan Penn Griffen Pat Harpell Lee Hopkins Ron Lovejoy Eileen McGuffie Joanne Milkereit


30 | SUPPORT

SUPPORT | 31

SUPPORT YOUR PARKS We can’t do this without your support! It takes a community who cares enough to give.

MATCHING GIFTS

PARK SPECIFIC CONTRIBUTIONS

Your gift can go twice as far. Ask your employer to match your contribution to the Conservancy.

Support our parks with site specific contributions or allow the Conservancy to apply your gift to urgent needs within our present projects.

MEMBERSHIP Memberships and donations to the Charleston Parks Conservancy directly affect positive change in our parks and green spaces by funding programs and initiatives such as renovations, upkeep, park equipment and community education programs. For more about memberships, visit our website at CharlestonParksConservancy.org.

VOLUNTEER The Conservancy’s Park Angels are individuals in the Charleston community who understand the importance of preserving, sustaining and beautifying our parks.


32 | !NANCIALS

!NANCIALS | 33

CHARLESTON PARKS CONSERVANCY TABLE OF CONTENTS DECEMBER 31, 2011

THE CHARLESTON PARKS CONSERVANCY FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011

INDEPENDENT AUDITORS’ REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 STATEMENT OF FINANCIAL POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 STATEMENT OF ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 STATEMENT OF CASH FLOWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 STATEMENT OF FUNCTIONAL EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6


34 | !NANCIALS

!NANCIALS | 35

CHARLESTON PARKS CONSERVANCY STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2011

To the Board of Directors Charleston Parks Conservancy Charleston, South Carolina We have audited the accompanying statement of financial position of the Charleston Parks Conservancy (a nonprofit organization) as of December 31, 2011, and the related statements of activities, cash flows, and functional expenses for the year then ended. These financial statements are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

ASSETS Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 385,311 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,806 Trade date receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,511 Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,019,320 Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,556 Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,391 TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,747,895

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material aspects, the financial position of the Charleston Parks Conservancy as of December 31, 2011, and changes in net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

LIABILITIES & NET ASSETS Liabilities Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,206 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,451 Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,157 Net assets Unrestricted: Undesignated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659,415 Board designated as endowment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,019,320 Temporarily restricted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,003 Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,719,738 TOTAL LIABILITIES & NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,747,895

April 20, 2012

2 See independent auditors’ report and accompanying notes.


36 | !NANCIALS

!NANCIALS | 37

CHARLESTON PARKS CONSERVANCY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2011

Unrestricted

Board Designated

Temporarily Restricted

Total

$ 18,356 61,376 91,023 275 5,649 584 15

$-

$ 64,310 5,000 -

$ 82,666 61,376 91,023 5,275 5,649 584 15

-

564,701

-

564,701

177,278

564,701

69,310

811,289

881,623

(850,000)

(31,623)

-

REVENUES, GAINS AND SUPPORT Contributions In-kind contributions Special events Grants Program revenues Other income Interest income Net realized and unrealized income on investments Total revenues, gains and support Net assets released or reclassified Total revenues, gains, support and releases

Change in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,465 Adjustments to reconcile change in net asset to net cash used in operating activities: Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,524 Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,877 Net realized and unrealized income on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (564,701) Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Change in operating assets and liabilities: Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,806) Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,648 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,451 Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,860) Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (500,107) Cash flows from investing activities:

1,058,901

(285,299)

37,687

811,289

321,713 150,238 327,873

-

-

321,713 150,238 327,873

799,824

-

-

799,824

Changes in net assets

259,077

(285,299)

37,687

11,465

Net assets at beginning of year

400,338

9,304,619

3,316

9,708,273

$ 659,415

$ 9,019,320

$ 41,003

$ 9,719,738

EXPENSES Program services Management and general Fundraising Total expenses

Net assets at end of year

Cash flows from operating activities:

3 See independent auditors’ report and accompanying notes.

Sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000 Purchase of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,511) Purchase of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,573) Net cash provided by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826,916 Net change in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326,809 Cash and cash equivalents - beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,502 Cash and cash equivalents - end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 385,311 Supplemental disclosure of cash flow information: Noncash transactions: donations in-kind and related noncash expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,376 4 See independent auditors’ report and accompanying notes.


38 | !NANCIALS

!NANCIALS | 39

CHARLESTON PARKS CONSERVANCY STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

Program Services

Management and General

Fundraising

Total

Salaries and wages Payroll taxes Employee benefits Events Web services Occupancy Professional fees Playground renovations Amortization Design Plants, mulch and compost Hardscape Advertising and marketing Depreciation Supplies Board expense Insurance Books, subscriptions and reference Signage Miscellaneous Conferences, meetings and travel Telephone and telecommunications Meals and entertainment Printing and copying Postage Automobile Office supplies Bank service charges

$ 152,102 12,060 3,059 2,245 16,505 6,000 156 26,866 7,959 20,283 18,798 18,514 13,149 5,508 7,519 74 195 4,187 1,139 1,391 2,065 194 1,745 -

$ 56,720 4,445 807 5,901 18,876 27,518 7,959 1,345 5,508 52 1,520 6,821 1,443 1,867 3,187 848 2,337 322 25 1,398 1,339

$ 188,212 14,819 804 70,620 10,605 6,000 7,959 3,296 5,508 2,240 7,811 6,665 1,191 22 187 364 1,570 -

$ 397,034 31,324 4,670 72,865 33,011 30,876 27,674 26,866 23,877 20,283 18,798 18,514 17,790 16,524 9,811 9,331 6,895 6,860 4,187 3,773 3,280 3,187 3,100 2,701 2,086 1,770 1,398 1,339

Total expenses

$ 321,713

$ 150,238

$ 327,873

$ 799,824

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Organization- The Charleston Parks Conservancy (the Conservancy) was incorporated in December 2006 as a non-profit organization under the laws of South Carolina. The Conservancy’s mission is to: (i) preserve and encourage exceptional horticulture practices in South Carolina’s public gardens and public landscapes, with a particular emphasis on historical landscapes and gardens that offer unrestricted public access; (ii) promote educational programs designed to encourage gardening and horticulture as a career or hobby; and (iii) encourage high standards for the horticulture industry. The Conservancy’s support and revenue come primarily from contributions and grants, special events and income on investments. The Conservancy operates a variety of programs. The Beautification program through Garden in the Parks partners with local government and community volunteers to provide continuous caregiving and maintenance to various parks and green space. The Park Renovations program is aimed at restoring, rejuvenating, and reinventing community parks and green spaces by replacing outdated equipment, developing long term park functionality plans, and redesigning existing parks for optimal use. The Education program is designed to encourage life-long learning and leadership while actively improving community parks and green spaces through advancing knowledge of the environment, community, and history, as well as providing direction in the setup and management of community gardens and other community green spaces. The activities of the Conservancy are concentrated in the Charleston, South Carolina geographical area. The Conservancy is an organization exempt from income taxation under Section 501(a) as an entity described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and is exempt from state income taxes under related state provisions. Basis of Accounting- The accompanying financial statements have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities. Basis of Presentation- In accordance with Financial Statements of Not-For-Profit Organizations, the Conservancy reports information regarding its financial position and activities according to the following net asset classifications: Unrestricted Net Assets - not subject to donor-imposed restrictions. Unrestricted net assets may be designated for specific purposes by action of the Board of Directors. Temporarily Restricted Net Assets - subject to donor-imposed stipulations that may be fulfilled by actions of the Conservancy to meet the stipulations or become unrestricted at the date specified by the donor. Permanently Restricted Net Assets - subject to donor-imposed stipulations that they be retained and invested permanently by the Conservancy. The donors require the Conservancy to use all or part of the investment return on these net assets for specified or unspecified purposes. Support and revenue are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions that are not fulfilled in the accounting period.


40 | !NANCIALS

!NANCIALS | 41

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

All expenses are reported as decreases in unrestricted net assets. Expirations of temporary restrictions on net assets, such as the fulfillment of donor-imposed stipulations or the lapsing of a specified time period, are reported as net assets released or reclassified.

As a result, the Conservancy follows the accounting guidelines set forth in Endowments of Not-For-Profit Organizations. Under South Carolina law, the Conservancy is subject to the State Prudent Management of Institutional Funds Act (SPMIFA). The Board of Directors of the Conservancy has interpreted SPMIFA as requiring the preservation of the fair value of the original gift of any donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Conservancy classifies as permanently restricted net assets (a) the original gifts donated to a permanent endowment, (b) subsequent gifts to a permanent endowment, and (c) accumulations to a permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of any donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Conservancy in a manner consistent with the standards prescribed by SPMIFA. In accordance with SPMIFA, the Conservancy considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

Contributions subject to donor-imposed restrictions are recorded as temporarily restricted support and are reclassified as unrestricted when the donor-imposed restriction has been fulfilled or the stipulated time period has elapsed. Promises to give that are scheduled to be received after the end of the reporting period are shown as increases in temporarily restricted net assets and are reclassified to unrestricted net assets when the purpose or time restriction is met. Promises to give subject to donorimposed stipulations that the corpus be maintained permanently are recognized as increases in permanently restricted net assets. Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on which they depend are substantially met. Contributions to be received after one year are discounted at the risk-free rate on the last day of the fiscal year in which the promises are received. Amortization of the discount is recorded as contribution revenue. Special event revenue is recorded as a deferred liability until the event is held. Estimates- Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates used. Areas requiring significant estimates include the estimated fair value of the Conservancy’s investments and the related unrealized gains or losses on investments, the fair market value of in-kind contributions and land, and the allocation of expenses by function. It is at least reasonably possible that the estimates used will change within the near term. Promises to Give- Contributions are recognized in the year that the unconditional promises to give are made and are classified into unrestricted or temporarily restricted assets. The Conservancy uses the allowance method to account for uncollectible promises to give. Management estimates the allowance based on the aging and knowledge of individual outstanding balances as well as past experience. Property and Equipment- Property and equipment are stated at cost or, if donated, at fair market value at the date of donation, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Intangible Assets- Intangible assets subject to amortization are stated at cost or, if donated, at fair market value at the date of donation, less accumulated amortization. Amortization is computed on a straight-line basis over the estimated useful lives of the assets. Investments/Endowment Funds- The Conservancy holds an investment in a private investment pool, which is carried at fair market value. Donated investments are recorded as contributions at their fair market value on the date of the gift. Unrealized gains and losses are included in the change in net assets in the accompanying Statement of Activities. Purchases and sales of securities are recorded on a trade-date basis. The Conservancy’s investment in the private investment pool has been designated by the board of directors as an endowment fund.

(1) The duration and preservation of the fund. (2) The purpose of the organization and the donor-restricted endowment fund. (3) General economic conditions. (4) The possible effects of inflation and deflation. (5) The expected total return from income and the appreciation of investments. (6) Other resources of the organization. (7) The investment policies of the organization. Management and the Board of Directors are responsible for the investment of all Conservancy funds. The policies and strategies employed for achieving objectives applicable to the endowed investments are as follows: Return Objectives and Risk Parameters The Conservancy attempts to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Conservancy must hold for a donorspecified period as well as board-designated funds. The endowment assets are invested in a manner intended to produce results that exceed the price and yield results of appropriate benchmarks without putting the assets at imprudent risk. Strategies Employed for Achieving Objectives To satisfy its long-term objectives, the Conservancy relies on a total return strategy in which investment returns are achieved through capital appreciation. The Conservancy has invested its endowment assets into a single private investment pool (the Pool). The Pool’s primary investment objective is to provide superior risk-adjusted rates of return with relatively low volatility and with relatively low correlation to most major market indices.


42 | !NANCIALS

!NANCIALS | 43

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Spending Policy and How the Investment Objectives Relate to Spending Policy The Conservancy invests endowment funds with the objective of obtaining sufficient returns to grow the balance in the accounts and to fund operating shortfalls.

Expense Allocation- The costs of providing the various programs and other activities have been summarized on a functional basis in the Statements of Activities and Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Funds with Deficiencies From time to time the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or SPMIFA requires the Conservancy to retain as a fund of perpetual duration. In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of December 31, 2011. Fair Value of Financial Instruments- GAAP requires certain assets to be stated at fair value instead of historical cost. The Company’s investments in marketable securities fall under this requirement. Fair value as defined under GAAP is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Financial Accounting Standards Board’s (FASB) Fair Value Measurements establishes a framework for measuring fair value, and expands disclosures about fair value measurement. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and sets out a fair value hierarchy with the highest priority being quoted prices in active markets. Under this standard, fair value measurements are disclosed by level within that hierarchy. These levels include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Conservancy in determining fair value is greatest for assets or liabilities categorized in Level 3. Private Investment Pool The fair value of the Conservancy’s investment in the Pool is based upon the Pool’s net asset value (NAV), which is determined by the pool manager using a market approach. The valuation of the underlying investments incorporate significant unobservable inputs that cannot be corroborated with observable market data. Valuations may also be adjusted to reflect a lack of liquidity or marketability. These assets are classified as Level 3 based upon the significant estimates and assumptions used in determining the value of the underlying investments of the Pool. The Pool is charged management fees of 1.5% per annum of the NAV and an incentive fee payable to the Pool’s investment manager that is equal to 20% of the appreciation in NAV of each share outstanding in any year, to the extent that the NAV per share exceeds a previously established “high water mark.” The Pool provides for quarterly redemptions, along with certain limitations and restrictions.

Donations-in-kind and Contributed Services- Material gifts-in-kind items used in the Conservancy programs and services (e.g., free rent, equipment, etc.) are recorded as income and expense at the time the items are placed into service or used. Contributed property and equipment are recorded at fair value at the date of donation as unrestricted support and revenue unless the use of such contributed assets is restricted by a donor-imposed restriction. Contributed services are reported as contributions at their fair value if such services create or enhance nonfinancial assets, would have been purchased if not provided by contribution, require specialized skills and are provided by individuals possessing such specialized skills. In addition, the appropriate value of donated services of individuals is recorded as an expense when such services qualify for cost reimbursement from third-party providers. Income Taxes- The Conservancy has adopted Accounting Standards Codification 740 (“ASC 740”), Income Taxes. ASC 740 requires that a tax position be recognized or derecognized based on a “more likely than not” threshold. This applies to positions taken or expected to be taken in a tax return where there is uncertainty about whether a tax position will ultimately be sustained upon examination. The Conservancy has evaluated its tax positions and determined that it does not have any uncertain tax positions that meet the criteria under ASC 740. Accordingly, implementation of ASC 740 did not have any impact on the accompanying financial statements. Fiscal years ending on or after December 31, 2008 remain subject to examination by federal and state tax authorities. Advertising- Advertising costs are expensed as incurred. Advertising expense was $17,790 for the year ended December 31, 2011. Cash and Cash Equivalents- For purposes of these statements, the Conservancy considers all highlyliquid investments with original maturities of three months or less to be cash equivalents. The carrying amounts reported in the financial statements for cash and cash equivalents approximate those assets’ fair values. Reclassification- Certain 2010 items, including the classification of net assets among unrestricted, board designated, temporarily restricted and permanently restricted, have been reclassified in order to conform with the 2011 financial statement presentation. Concentrations of Risk and Risk Factors- The Conservancy maintains cash and cash equivalent balances with three financial institutions. At December 31, 2011, the Conservancy had cash deposits of $392,906. Of this amount, $58,036 was in excess of the Federal Deposit Insurance Corporation limit of $250,000.


44 | !NANCIALS

!NANCIALS | 45

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) All of the Conservancy’s investments as of December 31, 2011 are held in a single private investment pool. This investment is a speculative investment that involves risks, including but not limited to portfolio risks (including, but not limited to, interest rate risks, currency risks, default and credit risks, equity risks, and volatility risks), leverage and liquidity risks, counterparty risks, operational and regulatory risks, risks relating to fund terms and structure, and tax risks. The Conservancy’s investments are held by an investment manager and are thereby subject to concentrations of credit risk. The Conservancy’s investments are not insured by the Securities Investor Protection Corporation (SPIC) or by any other insurance coverage. The Conservancy’s investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with its investments, it is at least reasonably possible that changes in the fair values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the Statement of Financial Position. The investment pool may hold underlying investments in securities with contractual cash flows, such as asset backed securities, interest rate swaps, and mortgage backed securities. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, delinquencies or defaults, or both, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. B. LAND, PROPERTY AND EQUIPMENT

C. INTANGIBLE ASSETS Intangible assets consist of the following: Website design costs Accumulated amortization Intangible assets, net

Amortization expense for the year ended December 31, 2011 was $23,876. Amortization of $21,360 and $2,195 is expected for the years ending December 31, 2012 and 2013, respectively. D. NET ASSET CLASSIFICATION Temporarily restricted net assets are available for use in specific parks or projects as follows: Allan Park Gibbes Museum Park Elliottsborough Park Cannon Park Rotary Park Riverland Terrace Daffodils, Roses and Caladiums Total

Property and equipment consist of the following: Furniture and office equipment Software Vehicles and equipment

$ 46,458 32,662 12,708

Property and equipment, at cost Accumulated depreciation

91,828 (49,437)

Property and equipment, net

$ 42,391

Depreciation expense for the year ended December 31, 2011 was $16,523. During the year ended December 31, 2011 the Conservancy was granted ownership of land subject to a conservation easement. The Conservancy assisted the grantor in obtaining a grant to acquire the property, and paid a total of $20,511 in acquiring the property. The property was acquired for thepurpose of a potential future horticultural center and Conservancy headquarters, as well as a site for additional Conservancy programs, which complies with the restrictions placed upon the property based upon the conservation easement. Subsequent to year end, a decision was made to deed the property to the City of Charleston and to negotiate a long-term lease from the City. This transaction is expected to occur during the year ended December 31, 2012.

$ 171,431 (147,875) $ 23,556

$ 34,200 3,278 1,483 910 550 307 275 $ 41,003

Board designated net assets are comprised entirely of the Moore endowment, which totals $9,019,320 as of December 31, 2011. E. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table sets forth by level within the fair value hierarchy the Conservancy’s assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2011. Assets and liabilities are classified in their entirety based on the least observable level of input that is significant to the fair value measurement. The Conservancy’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no changes during the year ended December 31, 2011 to the Company’s valuation techniques used to measure asset fair values on a recurring basis. Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Investments: Private investment pool

$-

$-

$ 9,019,320


46 | !NANCIALS

!NANCIALS | 47

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011

CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 G. ENDOWMENTS

E. FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

The endowment fund consists of one individual donor-restricted endowment fund. As required by GAAP, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donorimposed restrictions.

The Company had $385,311 of cash and cash equivalents as of December 31, 2011 which was not classified. The following table presents additional information about Level 3 assets and liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Conservancy has classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g.,change in actuarial models) inputs.

The following tables present the necessary information for endowments: Endowment Net Asset Composition by Type of Fund as of December 31, 2011:

Investments Beginning balance, January 1, 2011 Total investment income Purchases and settlements

$ 9,304,619 564,701 (850,000)

Total

$ 9,019,320

The total gains and losses on Level 3 assets and liabilities are included in the change in net assets in the Statement of Activities. F. INVESTMENTS IN ENTITIES THAT CALCULATE NET ASSET VALUE PER SHARE The Pool’s primary investment objective is to provide superior risk-adjusted rates of return with relatively low volatility and with relatively low correlation to most major market indices. The Pool is permitted to invest in an unlimited range of securities, financial instruments and other assets. The Pool’s investment manager organizes the Pool’s portfolio positions into business units, each of which generally pursues a different type of investment strategy. Examples of these key business units include: (1) Corporate Credit; (2) Emerging Markets Credit; (3) Structured Credit; (4) Various Equity; (5) Volatility and Convertibles; (6) Other Private Investments; (7) Insurance; and (8) Developed Markets Fixed Income. In each case, the Pool may invest directly or through derivatives and other products, such as options, swaps, futures, participations and repurchase agreements. Redemptions of the Conservancy’s investment in the Pool are available at the end of each calendar quarter end with appropriate notice. Redemption requests may not exceed 10% of the total Pool net asset value (NAV) or $5,0000,000 for any quarter redemption. The minimum distribution is $250,000. Shares of the Pool may not be transferred without the prior written consent of the Pool’s Board of Directors.

Board designated endowment

Unrestricted

Temporarily Restricted

Permanently Restricted

Total

$ 9,019,320

$-

$-

$ 9,019,320

Changes in Endowment Net Assets during the year ended December 31, 2011: Unrestricted

Temporarily Restricted

Permanently Restricted

Total

$ 9,304,619

$-

$-

$ 9,304,619

564,701

-

-

564,701

(850,000)

-

-

(850,000)

$ 9,019,320

$-

$-

$ 9,019,320

Endowment net assets, beginning of year Net income (realized and unrealized) Appropriations of endowment assets for expenditure Total H. RELATED PARTY TRANSACTIONS

Certain board members, or individuals and entities related to board members, contributed a total of $8,585 during the year ended December 31, 2011. Travel expenses and other expense reimbursements paid to board members totaled $8,453 during the year ended December 31, 2011, $978 of which remained payable and was included in accounts payable as of December 31, 2011. See also note J for a contract and commitment with an entity partially owned by a member of the board of directors.


48 | !NANCIALS CHARLESTON PARKS CONSERVANCY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 I. IN-KIND CONTRIBUTIONS The Conservancy is provided the use of office space by the City of Charleston Department of Parks as an in-kind contribution. The Conservancy records the in-kind contribution and related occupancy expense at the estimated fair value of $1,500 per month. The Conservancy recognized an in-kind contribution of $18,000 related to this office space during the year ended December 31, 2011. The Conservancy received other in-kind contributions totaling $43,376 for various services and products, including donated storage space, donated program supplies, and other goods and services contributed as in-kind sponsorships for various Conservancy programs and events. J. OPERATING LEASES AND OTHER COMMITMENTS The Conservancy subleases office space under an operating lease which began November 1, 2010. The lease requires monthly payments of $1,000 and expires October 31, 2012. Lease expense for 2011 under this operating lease was approximately $12,000. Future minimum lease payments of $10,000 are expected to be paid during the year ended December 31, 2012. The Conservancy has entered into an arrangement with the City of Charleston to help fund a beautification and improvement project at a local park. A contract totaling $102,000 for the design phase of the project was in process as of December 31, 2011 with an entity partially owned by a board member. The total contract is $102,000, with a total remaining commitment from the Conservancy and the City of Charleston of $66,300 on the design contract. Of this amount, $33,150 is expected to be paid by the Conservancy upon completion of the design phase of the project. K. SUBSEQUENT EVENTS Management has evaluated subsequent events through April 20, 2012, the date which the financial statements were available to be issued.


FIND US: Charleston Parks Conservancy | PO Box 21000 | Charleston | SC | 29413 | 843.724.5003 | charlestonparksconservancy.org


2011 Annual Report