2010 Annual Report

2 010

ANNUAL REPORT

Communities Foundation of Texas

You have big plans.

You want to change the world. You want to make our communities better, safer, more equitable, livelier, greener. You want to help the sick, the elderly, the disadvantaged. You want to share your good fortune. You want to give.

on its feet.

CFT is nimble enough to respond quickly and effectively to humanitarian crises like the devastating earthquake in Haiti.

At the request of President George W. Bush, we established the Clinton Bush Haiti Fund at CFT, part of an effort with the William J. Clinton Foundation to help a country restore its footing.

Through this partnership, millions of dollars were dedicated towards supporting long-term relief and recovery efforts in Haiti.

CLINTON BUSH HAITI FUND

BIG PLAN: Help a country back

There are many nonprofit organizations in our community with big plans, as well. Plans to rebuild, expand, inspire, educate and provide more for those in need than ever before.

With the assistance of the W.W. Caruth, Jr. Foundation at CFT, six Dallas County agencies have created a model permanent supportive housing project called The Cottages at Hickory Crossing. This innovative project will provide permanent housing and intense on-site services to 50 chronically homeless individuals. The Caruth Foundation has committed $1 million for pre-development costs and a challenge grant of up to $2.5 million to support construction and resident services.

THE COTTAGES AT HICKORY CROSSING

BIG PLAN: House the homeless.

Communities Foundation of Texas helps bring together people and nonprofits whose plans go hand-in-hand.

CFT has big plans, too. It’s our intention to give you exemplary service, to provide wise stewardship of your resources, and to offer trustworthy guidance on how you can make the biggest philanthropic impact possible.

BIG PLAN: Preserve history,

renew a legacy.

CFT has completed the restoration and renovation of the historic 150-year-old Caruth Family Homeplace. The renovation is our opportunity to preserve an important thread in the fabric of Dallas history and to honor a family that has been a significant benefactor to the community. The property also will provide office space for other philanthropic organizations focused on positive community impact, including the Hoblitzelle Foundation and the Summerlee Foundation.

CARUTH HOMEPLACE

Together, we turn big plans into meaningful realities.

BIG PLAN: Turn donor interests In 2010, CFT created a new Letter of Inquiry process to link nonprofit organizations’ greatest needs to donors’ greatest interests. Nonprofits tell us about initiatives and programs that require funding, we review them, and we bring solid grantmaking opportunities to the donors whose charitable interests match. Connecting donors to worthy nonprofits translates donors’ passions into community impact.

Letters of Inquiry

into great grants.

A Letter for You

Board of Trustees & Legal Counsel

D e a r F r i e nds ,

Communities Foundation of Texas is governed by an independent Board of Trustees. Board members are local citizens with wide-ranging knowledge of community needs and deep commitment to helping meet them. Their charge is to understand donors’ interests and the roles of nonprofits, acting as stewards for nearly 900 funds. All Board members are volunteers, serving without compensation. Trustees exercise the final authority regarding all CFT gifts, investments and charitable grants.

There’s a famous Japanese saying about vision without action being only a daydream.

These plans are ultimately tied directly to you.

They’re really about your plans, the kinds of change in our community that are important to you. They’re about how we best support and partner with you – your family’s charitable giving; your personal philanthropy; your nonprofit organization’s mission – through the relationship that we share.

Sometimes, there’s nothing wrong with a nice daydream. It can be a pleasant distraction, and who doesn’t need one of those from time to time? Daydreams may also give birth to a really important idea. But daydreams alone don’t accomplish anything. Accomplishment depends upon translating a dream into reality through a plan.

A great example of where all our plans come together is the ongoing enhancement of DonorBridge, a 24/7 online resource available for you at www.donorbridgetx.org. DonorBridge enables you to easily link your interests with the needs of local nonprofits. Any time.

From anywhere.

All of us at CFT have been working hard during the past year to carry out big plans.

Many of them are still underway. They involve strengthening our value to you and include: n Partnering more closely with donors through

Our overall plan is simple: to enhance the experience and impact of giving through exemplary service, wise stewardship of resources, and the relationship that comes from being a trusted partner. That can’t be just a dream. It must be the reality we accomplish together.

a new, dedicated Donor Services team; n Finding new ways to match our knowledge of

community needs with the interests of donors through donor-advised funds (like the Letters of Inquiry described on the previous page); n Creating a better process for making grants

through funds at CFT;

Make it happen with us.

n Improving our operations by implementing

CFT relies heavily upon its volunteer Board of Trustees to help accomplish our mission. At the start of 2010, two new community leaders were welcomed to the Board: Bobby B. Lyle and Jeanne T. Cox. At the end of 2010, Jody Grant will retire from being a voting member of the CFT Board after many years of dedicated service. CFT is deeply grateful for his commitment, guidance and support. n

Board of Trustees

Joseph M. “Jody” Grant

Frederick B. Hegi, Jr.

Becky Bright

Jeanne T. Cox

Judith W. Gibbs

Jack M. Kinnebrew

Civic Leader

Civic Leader

Civic Leader

Chairman of the Board

Vice Chairman

Strasburger & Price, LLP

Texas Capital Bancshares Chairman Emeritus

Wingate Partners

Bobby B. Lyle Lyco Holdings

John McStay

Harold Montgomery

Karen Shuford

Calpian

Carlos González Peña

Frank Risch

John McStay and Associates

Civic Leader

Civic Leader

Peña Search Consulting

an updated, unified service fee that is competitive and reasonable; and

Legal Counsel

n Becoming more effective stewards of how we

Joseph M. “Jody” Grant Chairman of the Board

use discretionary assets (unrestricted and field of interest funds) to focus those resources in strategic ways that return the biggest bang for the buck.

Brent E. Christopher President and Chief Executive Officer

Terdema L. Ussery II

Ruth Sharp Altshuler

Dallas Mavericks

Ex-Officio Chairman’s Circle

Charles J. Wyly, Jr.

Kathryn G. Henkel

Vester T. Hughes, Jr.

Ex-Officio Immediate Past Chair

General Counsel

Senior Tax Counsel

K&L Gates, LLP

K&L Gates, LLP

Entrepreneur

Civic Leader

Learn about CFT’s Advisory Council and view a partial listing of funds at www.cftexas.org.

8

9

Who We Are Community Needs Assessments

Why do donors, nonprofits and other community partners rely on

DonorBridge

Exemplary Service CFT is committed to serving and informing donors and nonprofits through:

Family Engagement

Donor Education

Letter of Inquiry Process Hosted Meetings

Legacy Giving Support

as a hub of effective philanthropy?

Texas High School Project

Agency Funds

Donor-Advised Funds

To meet donor and community needs, CFT expertly administers the resources of a range of funds, including:

Discretionary Funds

Trusted Partner

Designated Funds

Wise Stewardship

Convenings

Entrepreneurs for North Texas

Scholarship Funds

W.W. Caruth, Jr. Foundation

CFT’s deep community knowledge and ability to collaborate enable partnership initiatives, including:

Professional Seminars

Caruth Homeplace

Advisory Council

To learn more about these initiatives and other ways CFT enhances the experience and impact of giving, visit cftexas.org.

11

Selected Grants As part of the total $73 million in grants paid by CFT, funds awarded to the efforts below are a sampling of plans brought to fruition

2010 Grants Distribution

in fiscal year 2010. These projects transformed vision into action for the benefit our community. n A rts & C ulture

S ocial S erv ices

n Cultural Data Project

n Housing Crisis Center $20,000 to support a newly created development position focused on helping the organization secure new funding streams. The Housing Crisis Center works to prevent homelessness by providing affordable short- and long-term transitional shelter to families, the elderly and the disabled.

$75,000 to bring the Cultural Data Project to Texas, through the creation of a task force to provide oversight and secure funding. The Cultural Data Project is an online management tool enabling arts and cultural organizations to strengthen their performance, grantmaking efficacy and advocacy efforts by allowing the tracking and benchmarking of financial and program data.

2%

Nature & Other

3%

Inner City Activities

4%

Youth

10% Health 10% Religious Activities 14% Arts & Culture 24% Social Services 33% Education

P ublic S afety n Safer Dallas Better Dallas $4,195 from a donor-advised fund to Safer Dallas Better Dallas for the purchase of a narcotics dog for the Dallas Police Department. This grant responded to an urgent request to assist the DPD in acquiring an essential law enforcement tool for the Narcotics Division, contributing to the overall quality of life in the Dallas area.

E ducation n Zero to Five Funders Collaborative $150,000 to support language development and parental education programs for children in the Bachman Lake neighborhood. The Zero to Five Collaborative is a consortium of 19 Dallas-area funders whose mission is to equip, encourage and support parents and caregivers to prepare children ages 0 to 5 for success in school.

Y outh n Big Brothers/Big Sisters

n St. Mark’s School of Texas

Total Grants Paid (in millions)

$2,993,750 from the W. W. Caruth, Jr. Foundation to create the Caruth Juvenile Delinquency Prevention Initiative. This funding will enable Big Brothers/Big Sisters to design a model program to provide positive intervention in the lives of 1,000 at-risk youth at critical junctures in their lives to reduce levels of delinquency.

$1,000,000 committed through highly structured grants from a donor-advised fund over ten years in strategic support of the institution’s financial aid program. The funds will contribute directly to on-campus quality of life and open doors of opportunity to boys in the Dallas area who otherwise could not attend St. Mark’s.

$80 $61

$67

$69

$67

05

06

07

$84 $73

$44

H ealth

$37

$33

n American Heart Association $3,532,500 over two years from the W. W. Caruth, Jr. Foundation to establish an optimal response system for heart attack victims across Dallas County. Grant funds will be used by American Heart Association, in partnership with the medical community, to transform emergency care for heart attacks in order to dramatically improve patient outcomes.

01

02

03

04

Fiscal years ending June 30

12

13

08

09

10

Financial Information 2010 Composition of Gifts

2010 Composition of Assets

Supporting Organization

0.0

Supporting Organization

251.5

Investment Managers

236.9

Aberdeen Asset Management, PLC

Donor-Advised Funds

27.6

Donor-Advised Funds

Designated Funds

26.1

Designated Funds

82.2

Discretionary Funds

18.8

Discretionary Funds

81.7

General Operating Funds

0.2

General Operating Funds

7.4

Charitable Remainder Trusts

0.3

Charitable Remainder Trusts

8.0

Scholarship Funds

0.5

Nonprofit Agency Funds

Total gifts

30.0

Scholarship Funds

$73.5

7.3

Total assets

$705.0

Barrow, Hanley, Mewhinny & Strauss, Inc. Burgundy Asset Management Credit Suisse Disciplined Growth Investors Hotchkis and Wiley Capital Management BNY Mellon Cash Investment Strategies State Street Global Advisors Western Asset Management Company Custodian

Total Contributions Received

Assets

(in millions)

BNY Mellon

(in millions)

Legal Counsel K&L Gates LLP Independent Auditor

$90

$801

$97 $82

$76

$67

$74

$627

$578 $562

$605

$647

$700

McGladrey & Pullen, LLP

$754 $651

$705 Investment Consultant Rogerscasey

$46

$41

To review the annual independent

$22

$16

audit report and the related audited consolidated financial

01

02

03

04

05

06

Fiscal years ending June 30

07

08

09

10

01

02

03

04

05

06

07

08

Fiscal years ending June 30

14

15

09

10

statements with footnotes, please visit www.cftexas.org.

Corporate Information Core Staff LEADERSHIP

Facilities and Administration

Philanthropy

Reo Pruiett, Ed.D.

D’Etta Hughes

Monica Egert Smith

Program Officer, Learning Systems

Brent E. Christopher

Human Resources Manager

Community Philanthropy Director

Denise Davis

President & Chief Executive Officer

Christina Gibson

Anita Lawson

Associate Program Officer, Learning Systems

Receptionist

Database Operations Director

Senior Vice President & Chief Financial Officer

Liz Moyer

Karen Gutierrez

Facilities Manager

Data Integrity Manager

Sarah C. Nelson

Jerry Jones

Chief Philanthropy Officer

Facilities Assistant

Sonja Eldridge

Lisa Stabler

Executive Assistant to CEO/CFO

Meeting Coordinator

Michelle Wisdom

Elizabeth W. Bull

W.W. Caruth, Jr. Foundation Jeverley R. Cook, Ph.D. Executive Director

Finance and Administration

Investments and Accounting

Matt Allen

Susan Henderson Program Manager, Professional Development Network

Liza Ceniceros Administrative Assistant

Lora McKeown

Information Technology Manager

Texas High School Project

Charles Daniel

LEADERSHIP

Technical Support

J. Steven Orr

John Fitzpatrick

Vice President, Investments

Relationships

Executive Director

Kristine Thomas

Development and Donor Services

George Tang

Vice President, Accounting

Bobby Lewellen

Jackie W. Franey Donor Relations Director

Gaylette Wineberg

Accounting Manager

Kelbert McGee

Roman Herrington

THSP Cost Analyst

Donor Services Director

Dawn Jimenez

Kelly Donohue

Senior Accounts Payable Administrator

Donor Services Manager

Donna Langdon

Associate Program Officer, Learning Systems

Chief Operating Officer

Executive Assistant to ED/COO

Administrative Assistant

RESEARCH, ADVOCACY & COMMUNICATIONS Heather Zavadsky, Ph.D. Director, Research and Implementation

Daisy Santosh, Ph.D. Research Associate

Anna Walden Project Manager

FINANCE AND ADMINISTRATION Lucinda Jones-English Finance Manager

Roberta Ripke

Accounts Payable Administrator

Executive Director, Palacios Area Fund

PROGRAMS

Karen Mercado

Donna Walden

J. Chris Coxon

Accounting Assistant

Executive Assistant

Gene AcuĂąa Director, Advocacy & Media Relations

Mark Baxter Associate Program Officer, Policy & Advocacy

Chief Program Officer

Entrepreneurs For North Texas

Nancy Willis

Pam Gerber

Special Initiatives

Grants and Program Manager

Executive Director

Paula Peters

Dee Chambliss

Senior Director, Special Initiatives

Jenna Hovey

Program Officer, External Partnerships & Advocacy Liaison

Program Associate

Alma Garcia Program Officer, Learning Systems

our Mission

16

CFT stimulates creative solutions to key challenges in our community. We thoughtfully and effectively support our diverse donors and grantees by providing exemplary service and by demonstrating accountability. We improve lives through an unwavering commitment to lasting impact.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Enhancing the experience and impact of giving.

5500 Caruth Haven Lane

Dallas, Texas 75225-8146

214.750.4222

Fax 214.750.4210

www.cftexas.org