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make more possible

2005 annual report


make more possible


table of contents Introduction

. 03

Telluride Adaptive Sports Program

. 04

One to One

. 06

Bright Futures

. 08

Good Neighbor Fund

. 10

Latino Initiative

. 12

San Miguel Watershed Coalition

. 14

Letter from Ron Allred

. 16

Board of Directors

. 18

Donors

. 21

How We Strengthen the Community . 24



2005 Community Grants

. 26

Funds

. 34

Gift Ideas

. 36

Planned Giving

. 37

Statement of Financial Position

. 38

Mission and Values

. 45

the telluride foundation

Telluride Foundation is a nonprofit community foundation that provides year-round support for local organizations involved in arts, education, athletics, charitable causes, land conservation and other community-based efforts. The Foundation is the philanthropic resource in the region for both donors and service providers alike. Our mission is to celebrate and enrich this dynamic community we all enjoy. We do this by supporting the 80+ nonprofit organizations in the region through technical assistance such as training seminars and consulting services and by awarding grants to qualified applicants.



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tasp gives people with disabilities the confidence to realize that a life changing injury or physical disability doesn’t mean they have to stop living their lives. “Skiing is an equalizer that enables them to overcome their physical challenges.” The Telluride Adaptive Sports Program (tasp) is dedicated to enriching the lives of people with disabilities by providing educational and recreational opportunities that develop life skills, encourage personal growth, and promote independence. tasp offers adaptive skiing, rafting, kayaking and cycling clinics. His last name is Snow. He celebrated his first birthday in Rico and has lived in snow country his entire life, but ironically he didn’t learn to ski until he lost the use of his legs as an adult. On August 27, 1995, Felix’s life changed forever when he became paralyzed from the waist down in a car accident. That could have been the day his life ended but with his positive outlook and determination, Felix decided that day would mark the beginning of his new life.

“It all happened during my first adaptive lesson. I realized that skiing was by far one of the coolest things I’d ever done.” Felix also serves as a board member and has been involved with TASP since its inception in 1995. A true inspiration, Felix shares his passion for skiing with other physically challenged people at various rehabilitation hospitals throughout the country and is also actively involved with the Wounded Warriors Program for service men and women injured in Iraq and Afghanistan.

Through his injury, he discovered something in himself that he didn’t know existed, an intense passion for skiing.



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overcome felix snow: long time resident and avid skier.



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genevieve matamoros & susie meade: 12 year-old who has “been in telluride since day one,” and her mentor.

nurture

“There are a lot of things I like about the mentor program, but the thing that I like the most is that I have a person I can talk to and relate with and have a good time with.” One to One provides mentorship experiences for children, ages 5-17. One to One is able to reachout to many underpriveleged youth to address language and cultural barriers, offer an extended family, nurture social and academic skills and provide a support system. Through their guidance and companionship, mentors make a positive impact in children’s lives. Raised by a hard working, single-mother with limited time to spend with her daughter, Genevieve has benefited from having another adult in her life.

Genevieve Matamoros celebrated her 10th birthday at the Denver Zoo with one of her favorite people. “It was my first zoo visit ever. It was my birthday present from Susie.”

“Susie has given me a lot of new perspectives. She is a support system.”

Susie Meade has been Genevieve’s One to One mentor for the past six years. Their special relationship has truly enriched Genevieve’s life. Susie and Genevieve get together every week to spend quality time together — hiking, biking, reading, doing homework or as Genvevieve would say “just hanging out.”



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“She shows you how to take household items and turn them into toys and she shows you how to keep the kids occupied, using their imaginations.” Bright Futures’ School Readiness Initiative improves the quality, affordability and capacity of early childhood care. Some parents in the region have not attained a high level of education and aren’t equipped with the proper tools to teach their children. As a result, many youth are seriously at risk of entering kindergarten lacking preliteracy capabilities, interpersonal and social skills and other developmental experiences. Bright Futures addresses this critical issue. The family has been involved with Bright Futures for nearly three years and have noticed the positive impact it has had on their children. When Christopher was diagnosed with a hearing disorder, Carol focused on specific activities that helped his hearing improve.

Every other week, Christopher, Michael and Saphire gather at the end of their driveway to wave goodbye and blow kisses to their favorite friend, Carol White, Director of Bright Futures. During her frequent visits, Carol spends approximately three hours with the family teaching Jamie and Arthur about prenatal care and the development of the newest addition to their family. She also shows them age-specific games and activities, including finger plays, rhymes, songs and arts and crafts that stimulate brain development.

“Carol works with the kids and pinpoints areas they have trouble with, then focuses on those problems specifically,” said Jamie. “Christopher has gotten much better with his reading and his speech. He used to have a stuttering problem and now he doesn’t stutter at all,” said Jamie.



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jamie prussman, arthur connelly & their children christopher, michael, saphire & a baby on the way: a close-knit family.



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succeed


“The Good Neighbor Fund gave me the ability to support myself and that, to me, meant getting my life back.” The Good Neighbor Fund provides emergency assistance funds for people in the workforce experiencing financial hardship due to housing, transportation or medical crisis. It is a resource for people to access after they’ve exhausted all other options, including state and local governmental agencies. The Good Neighbor Fund was a godsend for me because I was able to keep working and stay out of the breadline.”

Dick makes an honest living as a painter. He is a reliable, hard worker. Like many in the Telluride workforce who struggle with the high cost of living, he was living pay check to pay check. When his eye sight began to fail, Dick found himself in a very dire situation. His increasing blindness prohibited him from painting, the only type of work he knew how to do.

dick banks: local painter and recipient of a good neighbor grant

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thrive

The Good Neighbor Fund paid two months of Dick’s rent, enabling him to keep his residence until he received restorative eye surgery (paid for by Colorado Vocational Rehabilitation). Dick was able to return to work three weeks after his surgery. He is now financially stable, working as a painter once again.

Despite his strong work ethic, Dick couldn’t make ends meet last winter. He did odd jobs that didn’t require him to see but still didn’t make enough to pay his bills. “I don’t know what I would have done. I didn’t have the money to pay my rent.

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“The classes give them a life line, a way to learn to communicate so they can function and succeed in an English-speaking area. Learning English makes them feel like they are a part of the community.”

kristi gabriel: elementary and high school (esl) teacher

The Latino population in the Telluride Region is an integral and growing part of our community and our workforce, yet they have trouble accessing basic services and lack involvement in local activities. The Latino Inititive was established with the collaboration of local Latino leaders to celebrate their culture and provide services that integrate the Latino popultion into our community. Adult English as a Second Language (esl) classes, a complimentary interpreting service, a weekly Spanish language newspaper section and events including Papa Noel (a Hispanic Chrismas Celebration), Hispanic Learn to Ski Day, and a Family Fiesta are just a few of the programs within the Latino Initiative. Every Monday and Wednesday night, ESL teacher, Kristi Gabriel, is greeted by 12 eager students who are ready to study. Thanks to a grant from the Telluride Foundation for ESL classes, Kristi is able to satiate their desire to learn and master English.

“They look forward to coming to class and would come every night of the week if nightly classes were offered.” Kristi says the impact of the classes are far reaching.

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empower


preserve

bob delves: volunteer executive director for the san miguel watershed coalition

“Producing the report card has raised the profile of the coalition. My hope is that we will be able to attract new donors and additional money for projects that will have a greater and positive impact on the environment.” The San Miguel Watershed Coalition is a vital organization that has created a collaborative forum to discuss and monitor the health and vitality of the watershed. This spectacular watershed includes over 1 million acres that drain into the San Miguel River, and its many tributaries. The report evaluates five themes that encapsulate the ecological health of the watershed: Water, Aquatic Life, Wildlife, Vegetation and Soils. The 2005 report card scored C+, an average grade. It is an indicator that its overall health is at risk and we need to invest strategically for improvement. Establishing indicators, or benchmarks which measure the health of major environmental resources, is one of the most significant actions our community can take to facilitate practical steps towards genuine sustainability.

Led by Bob Delves, the San Miguel Watershed Coalition essentially serves as a watchdog for the health of the watershed. The Watershed Coalition has spearheaded the first ever Watershed Health Report Card. “Prior to the report card, we lacked a comprehensive overview of different measurements and analysis from various organizations,” said Delves.

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Dear Telluride, Seven years ago, while I was in the process of developing the Telluride Ski & Golf Resort, I decided that we needed a community resource to help support, preserve and enhance the quality of life of the region. From our renowned Telluride Film Festival, to the amazing work of the One to One mentoring program, to Angel Baskets, which helps those in need – we have wonderful people and organizations doing great things in our community. Based on this seed of an idea, I approached my close friends and business partners for support. That summer and many golf rounds later, 13 people each committed $100,000 to this worthy endeavor. At the same time, my business partner Jim Wells and I sold our majority interest in the ski resort to Joe Hideo Morita. Joe shared our love for Telluride and was in strong support of the idea as well. The Telluride Foundation was born in the summer of 2000 with the financial assistance and outstanding leadership of many people. However, there is one person in particular that I would like to acknowledge – General H. Norman Schwarzkopf who volunteered from the very first moment to become one of the founding board members

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and supporters of the Foundation. He has never faltered in his conviction to do great work for such a special community. We are all so fortunate to call Telluride our home. I am honored to have served as the founding Co-Chairman with General Schwarzkopf and look forward to continued participation as a Board Member. Under the continued guidance of General Schwarzkopf and outstanding leadership of incoming Co-chairman Mark Dalton, a bright horizon of unlimited potential is within reach. I invite you to help us celebrate our accomplishments to date and continue to play and active role in shaping Telluride’s future Together, we can make more possible. Warm regards,

ron allred co-chair

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The Telluride Foundation is honored to count these individuals among its Board of Directors General H. Norman Schwarzkopf Retired, US Army General, Co-Chairman Ron Allred Co-Chairman Mike Armstrong Chairman, Comcast Ed Barlow Senior Partner, Whitcom Partners Richard Betts Owner, ASAP Accounting & Payroll Services Harmon Brown Former Restauranteur Bill Carstens Founder, Carstens Ranch Joanne Corzine Developer, West Meadows Mark Dalton President, Tudor Investment Corporation

Vern Ebert Member, San Miguel County Commissioners

Ron Gilmer Chair, Telluride Commission for the Arts & Special Events

Davis Fansler Mayor, Town of Mountain Village

Anne Herrick Nonprofit Consultant

Bill Ford Chairman and CEO of Ford Motor Company Bunny Freidus Chair, San Miguel Resource Center

Ambassador Richard Holbrooke former U.S. Ambassador to the U.N. Chuck Horning Owner, Telluride Ski Resort

Tully Friedman Chairman & CEO, Friedman, Fleischer & Lowe

Paul Major CEO, Telluride Foundation (ex-officio)

Ken Gart Chairman, Specialty Sports Venture, LLC

Tricia Maxon President, Bank of Telluride

Bill Gershen Owner, Vanguard Industries

Joan May Director, Sheep Mountain Alliance

Allan Gerstle Director, San Miguel County Social Services

Joe Hideo Morita Partner, Telluride Ski & Golf Resort John Pryor Mayor, Town of Telluride

Kim Day Private Investor 18

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donors (as of december 31, 2005) Marilyn Tucker Quayle President, BTC, Inc. Dick Rodgers President, Mountain Village Wells Fargo Bank Mary Rubadeau Superintendent, Telluride School District Susan Saint James Actress, Special Olympics Board Member Josh Sale Chair, San Miguel County Open Space Commission Bob Trenary Private Investor Stephen Wald Private Investor, Chair, Telluride Medical Center Jim Wear Founder, Wear, Travers, Krueger & Perkins, P.C.

These individuals and companies have made generous contributions to our community friends of telluride Ron & Joyce Allred

Darren & Julie Blanton

Mark & Susan Dalton

Alpine Bank

Timothy Boberg & Roxanne Pulitzer

Kim & Kim Day

C. Michael & Anne Armstrong Bank of Telluride, A WestStar Bank Ed & Frances Barlow Barney & Carol Barnett Sharen & Marc Berman, The Skylark Foundation

Kevin & Mary Grace Burke

Bill & Becky Deupree

John & Alice Butler

Dick Ebersol & Susan Saint James

Paul & Joann Claeyssens

Davis & Bobsey Fansler

Charles & Nancy Conner

Bill & Lisa Ford

Cornerstone

Bunny Freidus & John Steel

Joanne Corzine

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Tully & Elise Friedman


friends (cont.) Bill & Debra Gershen Robert & Nancy Hayden

H. Norman & Brenda Schwarzkopf

gold hill

bridal veil

Paul & Tina Allaire

Brian & Mary Claire Blackshaw

first tracks John & Terri Prunskis

John & Beverly Baker

Peter & Francine Cogen

Lawrence & Joy Ramaekers

Richard Betts

Tom Schwartz

Juan Carlos & Christina Casas

Nelson & Sharon Sharp

Bob & Jenny Delves

Lou & Bonnie Cohen

Dick & Linda Rodgers

Charles & Virginia Bowden

Marty & Marlene Silver

Bill Fandel

Roy & Diana Conovitz

Lars & Annie Carlson

Pamela Smith

Cliff & Brenda Gilbert

Patricia Sullivan

Daniel & Brooke Neidich

Bob Dempsey & Suzanne Dahl

Mark Rosenthal & Shoshannah Pollack

Telluride Sports

Peter & Carol Sellon

Dan & Sheryl Tishman

Lary & Sally Simpson

Paula Malone

Bob & Jane Trenary

Fletcher & Elizabeth McCusker

Stephen & Sheila Wald

Bruce and Laura VanWagner

Ted & Anne Herrick Joe & Lynne Horning Chad Horning M. Charles Horning James M. Johnson Fund Michael & Rebecca Jusbasche

Joe Hideo & Hiroko Morita Barbara Parish & Gary Roberts

The Robert T. Wall Family

John & Laura Shields

Alberto & Irene Casaretto

Stephen Farish III

Lynne Tryon Smalley

Mike & Jane Conlin

Bob Glah

Jack & Dawn Taylor

Rosie Cusack

Bob & Ana Greene

John Temple & Judith Gittinger

Dr. Andrew & Ziva Dahl

Richard Holbrooke & Kati Marton

Jim Wear

Don Hootstein & Belinda Walters

Jim & Sheila Wells

John & Lulu Hunt

David & Julie Vaughn

Erik & Josephine Fallenius

Tom & Eppi Waldin

John & Ellen Grimes

Jack & Janet Wolinetz

Matthew Hintermeister Richard & Julie Houck

Lawrence & Meg Kasdan

George & Julie Parker

Bill & Lucy Kingsford

The Peaks

Casey & Megan McManemin

Ned & Diane Powell

Kevin & Kristin Holbrook Peter Jamar Betsy Lindsay

Bill & Cheryl Nordstrom

Paul & Lois Major

Bob & Winnie Roloson

Frederic Ohringer & Jane Taylor

Holly Parker/AMMV Sales

Richard & Barbara Schell

Don & Nancy Orr

Lee & Artie Richards

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Brian Parsley

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first tracks (cont.) Maureen Pechacek & Maynard Howe John Perpar Ock & Joanie Peterson John & Ellen Pillsbury Genevieve Plamondon Michael & Marilyn Ratner Sam & Francesca Rehnborg

patrons Carol Armstrong Mike & Ashley Bradley Bob Borchardt

Mary & Bob Rubadeau Josh Sale & Peggy Curran

Scott Borman

Ron & Fran Schwarz

Harmon Brown Stuart & Joanna Brown Peter & Linda Bynoe Charles & Sue Cobb

Frank & Bee Reichel

Tracey Esherick

Chad Scothorn

Stephanie Fanos

John & Carolyn Snow

John & Sandra Horvitz

Jonathan & Tiffany Sweet

Fred & Gail Kittler

Wolf Family - Ridgway

Las Montanas Vincent & Anne Mai Art & Paige Nagle The Mountain Lodge at Telluride Mountain Village Metro Services Andrew & Debra Rachleff

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Jonathan & Rebecca Radford

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Joseph Slotnik Richard & Anna Teerlink Peter Welles

how we strengthen the community The Telluride Foundation has made a real impact and is addressing real need. • The Foundation has granted over $5.4 million in 5 years.

• Strengthened local nonprofits’ skills by providing seminars and workshops in grant writing, accounting, scholarships and board development.

• Developed new sources of funding for the region resulting in grants of over $500,000 to the Telluride Foundation from private grant making foundations.

• Completed the Hanley Rink campaign, which raised over $550,000 for the refrigerated ice rink in the Telluride Town Park Pavilion.

• Funded a new CT scan, computerized radiology, conversion from paper to digital medical records and a replacement x-ray for the Telluride Medical Center.

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• Developed the Bright Futures Early Childhood Development Initiative to assist parents and their children (ages 0-5 years) who are at risk of entering school lacking age appropriate development skills. • Launched a Latino initiative to integrate the Hispanic population into the community.

2005 community grants grant history Over $5.4 million in grants distributed in 5 years (represents community grants and donor restricted grants).

arts & culture

Community grants are awarded annually from our donors’ unrestricted gifts.

most recently we have… • Granted over $1.5 million in 2005.

Community Grants

• Received a 5-year $350,000 Equality in Health Care grant to increase health care competency and capacity for the Hispanic/Latino communities in San Miguel and West Montrose counties.

1,600,000

Environment & Animal Protection 9% Youth 7%

1,200,000

• Developed a graduating senior award and scholarships for the Telluride and Norwood schools. • Created a nonprofit professional training scholarship.

breakdown & type of organizations awarded 2005 grants

800,000

Education 12% Child Care 13%

Athletics & Sports 7% Arts & Culture 28% Human Services 24%

400,000

2001

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2002

2003

2004

2005

Ah Haa School for the Arts

$17,000

San Miguel Educational Fund

$2,000

Michael D. Palm Theater for PA (TSD)

$15,000

MountainFilm in Telluride

$14,000

OutLoud Lecture Series

$5,000

Sheridan Arts Foundation

$14,500

Telluride Historical Museum

$10,000

Telluride Chamber Music Association

$8,000

Telluride Choral Society

$10,000

Telluride Council for the Arts and Humanities

$15,000

Telluride Dance Academy

$6,000

Telluride Film Festival

$17,000

Telluride Mushroom Festival c/o Tomten Institute

$2,000

Telluride Repertory Theatre Company

$14,000

Telluride Society for Jazz

$9,500

Telluride Writers Guild

$2,610

Total

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$161,610


human services Angel Baskets UnBOCS 

$4,000 $12 ,500

Midwestern Colorado Mental Health Center

$10,000

One to One

$27,000

San Miguel Juvenile Diversion Program San Miguel Resource Center

$8,000 $27,000

Family Link Center 

$6,000

Telluride AIDS Benefit

$4,000

Great Start Family Visitor Program 

$2,500

Habitat for Humanities Steering Committee

$5,000

Hilltop Community Resources, Inc. Montrose County Health and Human Services

Telluride Early Childhood Center

Telluride Adaptive Sports Program 

$1,000

$13,860

Telluride Lizard Heads Hockey Club

$6,000 $4,000

$4,000

Telluride Nordic Association

Telluride Preschool

$5,000

Telluride Ski & Snowboard Club

Wright Stuff Community Foundation

$25,000

Total

$67,060

Montrose Regional Libary

$1,000

Paradox Valley School

$5,700 $12,000

San Juan Field School

$8,000

$8,000

Norwood Elementary School Library

$6,250

San Miguel County Nursing Services

$2,000 $127,000

Telluride Education Foundation

$20,000

Telluride Institute

$6,000

Telluride Mountain School

$3,000

University Centers of San Miguel c/o High West Council

$5,000

Total

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Telluride Youth Lacrosse Association, Inc Total

$12,500

Telluride Academy

$12,500

Voyager Youth Programs Total

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$5,000 $31,500

$15,000 Grand Total $1,000 $27,000

athletics & sports Animal Humane Society of Ouray County, Inc.

$3,000

San Miguel Open Space Commission

$22,500

The Nature Conservancy 

$3,000

San Miguel Watershed Coalition

$6,000

Town of Ophir

$9,000

Total

$1,500

Horizon Program

education

$6,000

$5,000

Girls Scouts of Chipeta Council

$20,000

Telluride Montessori School

Pinhead Institute

Montrose County Senior Citizens Transportation, Inc.

Total

Rainbow Preschool & Day Care Center

youth

athletics & sports

child care

$43,500

$66,950

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$525,420


funds

This program consists of four levels:

donor advised funds

• Friends of Telluride donors give a minimum of $100,000 over four consecutive years.

Establishing a Donor Advised Fund with the Telluride Foundation is like creating a private foundation. The donor has the power and flexibility to make recommendations for grants to specific nonprofit organizations from their fund, without the time, paperwork, and administrative expense of running their own foundation. A Donor Advised Fund allows the donor to focus on charitable giving, while we handle the administrative work. Additionally, with a Donor Advised Fund, the donor is able to take an immediate tax deduction for full market value of appreciated assets and avoid capital gains tax. This fund can be established as an endowed fund (to remain in perpetuity) or as an expendable fund (to be spent down over a specified number of years). A Donor Advised Fund is an irrevocable gift to the Foundation while the donor retains the explicit ability to advise the Foundation on distributions of grants for charitable purposes.

• Gold Hill donors give a minimum of $40,000 over four consecutive years. • Bridal Veil donors give a minimum of $10,000 over four consecutive years. • First Tracks donors give a minimum of $6,000 over four consecutive years.

Because every donor has different needs and values, the Telluride Foundation works with each interested donor indvidually to create a giving opportunity that is right for that person, family, or company.

restricted gifts The Telluride Foundation has the following types of restricted funds:

1. Donor Advised Funds 2. Designated Funds 3. Field of Interest Funds

unrestricted gifts By giving an unrestricted gift, donors can be assured their charitable gift will always serve a vital purpose, even as the community changes and evolves. Unrestricted gifts support the Foundation’s annual community grantmaking, nonprofit capacity-building, initiatives, and community building activities. The generous individuals and families

(listed on page 19-22) have contributed to the Foundation’s multi-tiered donor program and enjoy a variety of exclusive benefits.

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For each of these funds, the Foundation provides donors with regular fund statements, access to the expertise of Foundation staff, professional management and investment of fund monies, and increased knowledge of the Telluride community’s needs.

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designated funds

The Telluride Foundation currently manages the following Donor Advised Funds:

The Field of Interest Funds that the Telluride Foundation manages are as follows:

The Knox Fund

Donors can create a fund to benefit a specific nonprofit organization. This fund can be established as an endowed fund (to remain in perpetuity), as an expendable fund (to be spent down over a specified number of years), or as a one-time pass-through. For a permanent endowed fund, 5% of the funds net asset value is granted to the organization each year.

The Eric Moe Fund

initiative funds

• Land Conservation Fund supports open space preservation and watershed protection.

Mountain Village Metro Services

To date, the Foundation manages seven field of interest funds, four of which are Board Initiatives.*

• Latino Initiative* supports programs that celebrate and integrate the Latino population into the Telluride community.

These funds are established to raise money and pool investments to address the needs of a specific charitable cause or geographic area. To establish a field of interest fund, donors contribute a minimum of $10,000 to the fund. Each fund is held in a separate account and invested according to Foundation guidelines.

• San Miguel Kids Endowment endows funds for kids and youth programs.

The Benchmark Fund The Monika Callard Fund Bill & Debbie Carstens Fund Corey & Shirley Fortenberry Fund Andy Hanley Recreation Fund

The Ned & Diane Powell Fund The Price Family Fund Rico Center Fund Town of Mountain Village

• Bright Futures Fund* supports early childcare programs for the working parents of the Telluride region. • Good Neighbor Fund* assists San Miguel County residents who are experiencing financial hardship.

• Telluride Medical Capital Fund improves and expands the scope and sophistication of regional medical capabilities.

• West End Initiative* empowers underserved communities, particularly in the west end of San Miguel and Montrose counties, with grant writing assistance and capacity building skills to acquire financial resources for their services, programs and infrastructure. * Board initiatives

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gift ideas

cash Gifts of cash to the Foundation can be made by check or credit card (when itemized such outright cash gifts are generally deductible up to 50% of adjusted gross income.) If the donor’s total gifts should exceed this limitation, the excess may be carried forward for tax purposes for up to five additional years.

As you review your tax planning, especially at year-end, we hope you will consider making good use of the income tax charitable deduction. Here is an overview of some of the best gift ideas, all of which can be used for an unrestricted gift or to start a fund at the Foundation.

gifts of stock Giving long-term appreciated stock offers a two-fold tax savings. First, the donor avoids paying any capital gains tax on the increase in value of their stock. In addition, the donor receives a tax deduction for the full fair market value of the stock on the date of the gift. For income tax purposes the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional five-year carry forward. The Telluride Foundation reserves the right to review stock gifts.

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planned giving Charitable giving affords you the unique ability to make your community what you envision it to be while preserving personal, family, or business wealth. There are great opportunities to make a difference through a variety of giving vehicles to match your own unique situation. Consult a qualified counsel for advice about your own situation.

bequest Including a charitable bequest in your will is a simple way to make a lasting gift to your community. When you make this gift through the Telluride Foundation, we establish a special fund that benefits our community forever and becomes your personal legacy of giving. With a bequest, you control the distribution of assets through a will or trust. Your estate receives a charitable deduction for the full amount given. A bequest can be given by an amount, percentage of the estate, or contingent on a specific future event. Gifts through bequests or trusts ensure you that your charitable wishes will be fulfilled with no risk of running out of money or undergoing a change of lifestyle during your lifetime. And, in many cases, you can receive a substantial reduction in federal estate taxes.

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gifts of real estate

gifts of life insurance

Real estate in the form of a residence, vacation home, ranch or land may have significantly appreciated in value through the years so that its sale would mean a sizeable capital gains tax. By making a gift of property, the donor avoids the capital gains tax and receives a charitable deduction for the full fair market value of the property (see page 37 for more information).

If a donor owns a life insurance policy that is no longer needed, they can name the Foundation as both the owner and beneficiary of that policy. If the policy has a cash value, they can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and they continue to pay them, those premiums will become tax deductible each year.

retirement plans Donors can name the Foundation as a beneficiary of their Individual Retirement Plan (IRA), Keogh plan, 401(k), 403(b), or other qualified pension plan. They may name the Foundation as beneficiary for part or all of what remains in their retirement account. The proceeds of these plans are distributed outside of probate and are entirely free from federal estate tax.

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lead income gifts A Charitable Lead Trust is beneficial for donors who do not desire immediate income but are concerned about transferring assets to their heirs upon passing. In a lead trust, a fixed annuity is distributed each year to the Foundation for a select number of years. When the lead trust is initially funded, the donor receives a gift tax charitable deduction for the current value of the income that will be distributed to the Foundation. Once the trust terminates, the remaining assets are then transferred to the donor’s beneficiaries at tax-savings.

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The use of Charitable Remainder Trusts (crt) and Gifts of Real Estate are gifts that pay.

life income gifts A Life Income Gift provides an annual income while providing an immediate charitable income tax deduction. Life income gifts are irrevocable. There are two types of life income gifts: a Charitable Gift Annuity and a Charitable Remainder Trust.

Charitable Gift Annuity. Giving through a

Charitable Remainder Trust. Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that whatever remains will benefit your community. With a Charitable Remainder Trust, the donated assets are transferred into a trust rather than to the Telluride Foundation. You receive an immediate tax deduction for the charitable portion put into the trust. Upon your passing, the remaining assets are transferred from the trust to the Telluride Foundation. There are two basic types of charitable remainder trusts: charitable remainder annuity trust and charitable remainder unitrust. The annuity trust pays a fixed dollar payment each year for the life of the trust. The unitrust pays an amount equal to a fixed percentage of the market value of the trust, which is specified by the trust agreement.

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Charitable Gift Annuity allows you to arrange a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life. In addition, part of the annuity payment is tax-free return on principle. Unlike a bequest, you receive an immediate tax deduction for the charitable portion of the gift. A charitable gift annuity begins with a donation of cash or another form of accepted gift. A contract is established that combines immediate annuity payments with a deferred charitable gift. The annuity payment is calculated based on various factors such as age and current return on the market.

A long-time, local couple had purchased land in Telluride back in the 1970s and was considering selling it. However, if they sold the land they were faced with a 20 percent capital gains tax on a highly appreciated asset. They didn’t want to pay an exorbitant amount to the government in taxes and desired to give back to the community in which they had lived their entire life. They decided to set up a charitable remainder trust with the Telluride Foundation. The income received from the trust was much greater than they would have collected from reinvestments and they paid less to the government. They also received an immediate charitable deduction. More importantly, they knew that when they passed, their money would help the community they love. (this is not a true story but an example for illustrative purposes).

Here is an example (for illustrative purposes only): Tax consequences Net fair market value

$

1,500,000

Cost BasisN/A

$

50,000

Taxable Income

Sold and Re-Invested $

1,500,000

N/A

$

1,450,000

Less capital gains tax @15% (Federal)

N/A

$

(217,500)

Less capital gains tax @5% (CO State)

N/A

$

(72,500)

Net proceeds

$

1,500,000

$

1,210,000

Charitable deduction

$

264,240

$

0

$

97,769

$

0

$ 13,756,923

$

11,823,382

Amount distributed to beneficiaries

$ 13,756,923

$

11,823,382

Remaining Amount given to charity

$

$

0

Tax savings (37% tax Rate)

Total investment returns after 30 year

the telluride foundation

CRT

(with compounded interest)

37

2,363,752 the telluride foundation


statement of financial position

statement of activities (december 31, 2005) $

2005 843,619

$

2004 337,077

Investments

$

2,857,401

$

2,397,264

Accounts receivable

$

2,096

$

250

Pledges and grants receivable, net of discount

$ 2,432,568

$

2,044,127

Other assets

$

$

33,717

assets Cash and cash equivalents

Note receivable

17,491 —

Property and equipment, net

$

26,822

$

31,407

Total Assets

$

6,179,997

$

4,843,842

temporarily resticted

unrestricted

revenue, contributions and support Individual contributions In-kind contributions Dividend, interest and other income Total revenue, contributions & support

$ 632,104 $ 118,130 $ 153,639 $ 903,873

$ 2,856,571 — — $ 2,856,571

net assets released from restrictions Satisfaction of activity restrictions $ 1,988,579 Total net assets released from restrictions $ 1,988,579

$ (1,988,579) $ (1,988,579)

total $ 3,488,675 $ 118,130 $ 153,639 $ 3,760,444

— —

expenses

liabilities and net assets Accounts payable

$

874,416

$

722,452

Accrued liabilities

$

28,986

$

29,231

Agency Payable

$

103,606

Deferred income

— $

4,860

Charitable gift annuity

$

129,980

$

129,980

Total Liabilities

$

1,125,079

$

886,523

net assets Unrestricted

$

2,113,023

$

1,883,416

Temporarily restricted

$

2,941,895

$

2,073,903

Net Assets

$

5,054,918

$

3,957,319

Total Liablilities And Net Asssets

$

6,179,997

$

4,843,842

Commitments and contingencies

38

the telluride foundation

Program Services

Grants and assistance programs Education and consulting Total program services

$ 2,115,613 $ 179,985 $ 2,295,598

— — —

$ 2,115,613 $ 179,985 $ 2,295,598

$ 277,288 $ 137,963 $ 415,251 $ 2,710,849

— — — —

$ 277,288 $ 137,963 $ 415,251 $ 2,710,849

$ 48,004 $ 229,607 $ 1,833,416 $ 2,113,023

— $ 867,992 $ 2,073,903 $ 2,941,895

$ 48,004 $ 1,097,599 $ 3,957,319 $ 5,054,918

Support Services

Development General and administrative Total support services Total expenses Realized and unrealized investment gains/(losses) Change in net assets Net assets, beginning of year Net assets, end of year

39

the telluride foundation


expense trend graph 2005

The Telluride Foundation is committed

service area

to preserving and enriching the quality of life

The Telluride Foundation serves people living and/or working in San Miguel County.

100%

of the residents, visitors, and workforce of the Telluride region. The Foundation does this by providing leadership in philanthropy,

80%

strengthening community groups, serving 60%

as a responsible steward for entrusted funds, Delta

40%

Montrose Ouray 20%

San Miguel telluride

Dolores 2001

2002

2003

2004

2005

and supporting activities that celebrate our unique community. The values we hold are passion, leadership, excellence, fairness, teamwork, accountability and knowledge.

Programs (Grants and Education) Support (G&A , Fundraising)

40

the telluride foundation

iii

the telluride foundation


Paul Major CEO & President paul@telluridefoundation.org Annie Carlson Development Director annie@telluridefoundation.org April Montgomery Programs Director april@telluridefoundation.org To reach us by mail or find us: Telluride Foundation 620 Mountain Village Blvd, #2B Telluride, CO 81435 To reach us by phone: 970.728.8717 fax 970.728.9007 To reach us on the web: www.telluridefoundation.org

Design by Proteus, www.proteusdesign.com Profile photography by Scott Raffe, scott@raffephoto.com Landscape photography by Meg Bodnar, megbphotography.com Paper donated by Monadnock Paper Mills, www.mpm.com

Annual Report 2005