Communities Foundation of Texas 2016 Annual Report

COM MUNITIES FOUNDATION of TE X A S 2016 ANNUAL REPORT

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WHAT IS COMMUNITIES FOUNDATION of TE X A S?

We are a LENS through which GENEROSIT Y IS M AGNIFIED

WHERE GIF TS are made GRE ATER

WHERE DONORS are INSPIRED

WHERE the COMMUNIT Y is RALLIED

WHERE BUSINESSES are ENERGIZED WHERE FUTURES are made BRIGHTER FOR ALL

From first-time donors to seasoned philanthropists, small startups to large corporations, simple gifts to complex donations and everything in between, Communities Foundation of Texas is here to illuminate philanthropy in its many vibrant forms.

LEAD LIKE A GIRL High-Tech High Heels gives young women an edge in the sciences In 2001, 30 women from Texas Instruments had a vision to close the gender gap in science, technology, engineering and math (STEM) professions. They came together as High-Tech High Heels to increase the number of females pursuing STEM careers. Fifteen years later, working with Communities Foundation of Texas allowed them to broaden their network of grantees and increase their impact, which ultimately led to their highest granting year ever. Today, the High-Tech High Heels Fund at CFT supports programs such as equity training and exposure to STEM that encourage and prepare young women to excel. Activities like the Thunder Chicks Robotics Club at Irma Rangel Young Women’s Leadership School, a member of Young Women’s Preparatory Network, are inspiring a new generation of young women, like Jennifer, to thrive in the sciences.

SPEC TRUM of GIVING:

DONOR-ADVISED FUNDS

4,250

number of grants from CFT donor-advised funds in FY16

592

$317MM

assets under management in CFT donor-advised funds

donor-advised funds at CFT Donor-advised funds are a great way for families, foundations and corporations to bring strategy and structure to their giving.

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ROBIN BR AY, L AUR A STEFFEK and C AROLYN TOBIN of High-Tech High Heels with JENNIFER ULLOA , member of the Thunder Chicks Robotics Club at a Young Women’s Preparatory Network School Photo by Kim Leeson

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

JESUS IBARR A , 2016 recipient of the Simon Greenstone Panatier Bartlett Scholarship and incoming student at the University of Texas Arlington Photo by Kim Leeson

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

LEARNING TO HEAL A scholarship fund for those impacted by cancer The law firm Simon Greenstone Panatier Bartlett was established to provide a voice for those in need, says founding shareholder David Greenstone. “We have spent our careers fighting on behalf of cancer victims and their families and we know how devastating a cancer diagnosis can be,” he says. To expand the number of people they help, the partners established the Simon Greenstone Panatier Bartlett Scholarship Fund with Communities Foundation of Texas, which awards multiple scholarships to Dallas County students whose families have been impacted by cancer. Working with CFT at every stage of the process, the firm is awarding $50,000 in scholarships a year. “We’re so pleased to have CFT as our partners as we make a real difference in the lives of so many deserving kids,” Greenstone says. Jesus, whose mother is fighting cancer, is one of this year’s recipients. Enrolling at UTA with 64 credit hours toward an engineering degree, he’ll have a great start toward a brighter future.

SPEC TRUM of GIVING:

SCHOL ARSHIPS

more than

$1.66MM in scholarships awarded in 2016 alone

66

scholarship funds are administered by CFT

with assets in excess of

$16.8MM

In addition to managing scholarships, CFT supports many nonprofits focused on education. Educate Texas, a public-private initiative committed to helping all Texas students prepare for success, is a program of CFT.

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WORK FOR HIGHER Shields Legal Group gift-wraps hope for homeless children How does a 15-person law firm make a difference in a community? Shields Legal Group found a way with the help of Communities Foundation of Texas. The firm leveraged their business-advised fund at CFT and launched Impact/365, a program that challenges each employee to take action to help others every day. This year, they focused on helping homeless children, and came to CFT for advice. We introduced them to Hope Supply Company, which meets the critical needs of North Texas homeless children by providing food and daily essentials. In a drive they called “Hope in a Box,” the employees raised more than $2,000 and created 60 gift-wrapped hygiene kits for homeless kids. Working with CFT has not only helped the firm make a difference but also elevated employee morale and client relationships – gifts any business can appreciate.

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JIM SHIELDS with the team at SHIELDS LEGAL GROUP Photo by Kim Leeson

SPEC TRUM of GIVING:

BUSINESS GIVING

35,000+ $6MM 125

business volunteer hours over the past 15 years

CFT helps businesses give back in many ways, from developing a giving strategy, to stewarding charitable

total grants from business funds in FY16

contributions through businessadvised funds, and organizing employee volunteer opportunities.

business partners, including Neiman Marcus, Hunt Consolidated, Fossil and many others

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

GET TING CREATIVE TO FUND THE ARTS Transforming real estate into real impact Charitable giving can be an art form in itself. Craig Hall, founder of Hall Group and fund holder at Communities Foundation of Texas, structured a complex donation of two premium restaurant spaces in the Dallas Arts District to his fund at CFT. An avid supporter of the arts, he wanted the proceeds to be used to help organizations in the area, such as the Dallas Opera, to flourish. Chef Stephan Pyles, who runs Flora Street Cafe in one of the spaces, was thrilled: “Hall’s donation of the space we are leasing is philanthropy at a level most of us only dream of.” The donation of real estate is a prime example of Craig Hall living his own philosophy.

As he says, “I believe businesses should do well and do good too.”

SPEC TRUM of GIVING:

COMPLEX ASSETS Assets CFT has accepted include:

Oil, Gas and Mineral Rights

Business & Partnership Interests

Closely Held & Restricted Stock

40%

Real Estate

Life Insurance

of all gifts to donor-advised funds in 2016 were noncash.

With careful planning, gifts of securities or other noncash assets can maximize philanthropic impact and financial benefit.

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CR AIG HALL of Hall Group and fund holder at Communities Foundation of Texas, at Hall Arts Plaza in the heart of the Dallas Arts District Photo by Kim Leeson

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

Red Cross Emergency Response crewmember BECK Y C ARMICHAEL lends emotional support to STEPHANIE LIT TLE , whose house was badly damaged by the December 26 tornadoes Photo by Dennis Drenner for the American Red Cross

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

STRONGER THAN THE STORM Quick action ensures long-term relief for Garland after tornadoes The day after Christmas 2015 was disastrous for Garland and nearby communities when nine tornados ripped through the area, leaving devastation in their wake. But no sooner had the storm passed than WFAA moved to support the Red Cross relief efforts. They came to Communities Foundation of Texas to help them quickly set up the Garland-Rowlett disaster campaign through the WFAA Community Charitable Projects Fund at CFT. With the help of CFT’s expertise, the campaign raised an unprecedented $400,000 for the relief effort in record time. CFT’s role in disaster relief doesn’t end with immediate relief, however; the City of Garland turned to CFT to set up the Garland Texas Tornado Relief Fund to establish a resource for long-term relief. With ongoing donations, the community will be better prepared for clearer days ahead.

SPEC TRUM of GIVING:

RELIEF & RECOVERY Vital emergency relief

$1MM

raised through CFT for local relief and recovery efforts in the past 12 months

Long-term rebuilding and sustained support Risk reduction and preparedness efforts

Effective disaster and tragedy response requires sustained involvement. CFT responds to the complete timeline of the crisis management effort: from immediate relief to recovery, and then to reconstruction and rebuilding, whether it be from natural disasters or community tragedy.

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A Letter from the Board Chair

“ The forms that PHIL ANTHROPY takes are as DIVERSE as our COMMUNIT Y.” Great need—and great generosity—can be found in every sector of society. Here in North Texas, we have hardworking nonprofits serving vital causes, passionate donors on personal missions, businesses paying their success forward, and good Samaritans offering support to those who have fallen on hard times.

At Communities Foundation of Texas, we work across this wide spectrum of philanthropy, yet we have a singular focus: to amplify the impact of the diverse forces for good.

WE BUILD STRENGTH among nonprofits, partners and donors through thought leadership, training programs, fostering collaboration and supporting favorable policy. Initiatives like the D3 Institute provide nonprofits with game-changing insight into how to exponentially increase the impact of their good work.

WE GROW GIVING in our community by engaging businesses, expanding relationships, and energizing the next generation of donors through programs like North Texas Giving Day, which breaks records every year for bringing huge numbers of first-time donors into the community of philanthropy.

WE BOOST IMPACT by inspiring and advising donors, sharing our depth of knowledge and resources, making the grantmaking process more efficient and effective, and helping donors like Craig Hall use complex assets to benefit the causes they care about.

WE CATALYZE CHANGE by leading national collaborations like the Working Family Success Network, through the Caruth Foundation’s transformational, systems-level investments in public safety, education, and medical and scientific research, and through initiatives like Educate Texas’s 20 x 2020 plan.

This powerful array of impact wouldn’t be possible without the support of our donors and partners.

It’s generosity like yours that makes philanthropy in North Texas, and beyond, shine brighter.

Frank Risch B o a rd Ch air

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BOARD of TRUSTEES & LEGAL COUNSEL

Frank Risch

Becky Bright

Board Vice Chair

James E. Bass

Richie Butler

Judith W. Gibbs

Civic Leader

Manager, Trinity Summits, LLC

Senior Managing Director Prescott Realty Group

Civic Leader

Immediate Past Chair

Kenneth Hersh

Sarah Losinger

Bobby B. Lyle

John McStay

Harold Montgomery

Alfreda Norman

President and CEO George W. Bush Presidential Center

Civic Leader

President and CEO Lyco Holdings, Inc.

John McStay and Associates

Chairman and CEO Calpian, Inc.

Senior Vice President Federal Reserve of Dallas

Carlos González Peña

The Honorable Florence Shapiro

Karen Shuford

Nicole G. Small

Ruth Sharp Altshuler

Vester T. Hughes, Jr.

Civic Leader

President Lyda Hill Foundation

Board Chair Civic Leader

President and Founder Peña Search Consulting, LLC

Former Texas State Senator

Ex-Officio, Chairman’s Circle Civic Leader

Frederick B. Hegi, Jr. Principal Wingate Partners

Senior Tax Counsel K&L Gates LLP

CFT’s funds and underlying assets are governed by an independent board of trustees composed of respected community leaders from diverse backgrounds. CFT board members are selected for their knowledge of community needs and for their professional expertise.

The trustees’ charge is to understand donors’ interests and the roles of nonprofits, acting as stewards for more than 900 funds. Trustees serve without compensation and exercise final authority with regard to all CFT investments and charitable grants.

In addition to its board of trustees, CFT also has an advisory council that includes leaders from myriad businesses and civic and cultural organizations. Beyond generating public support for the foundation’s work, advisory council members provide educated and objective viewpoints that are valuable to CFT’s projects and endeavors. For a full listing of our advisory council, please visit www.CFTexas.org.

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

Financials

2016 GRANT DISTRIBUTION SPECTRUM

3%

6%

YO U TH & R EC R E AT I O N

A R T S & C U LT U R E

8%

30%

OTHER

E D U C AT I O N

$101

9%

$102

$106

$76 $66

RELIGION

12

13

14

15

TOTA L G R A N T S PA I D

(in millions, unaudited)

10%

Fiscal years ending June 30

COMMUNIT Y IMPROVEMENT

12% HOUSING & HUMAN SERVICES

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

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22% H E A LT H & SCIENTIFIC RESEARCH

2016 COMPOSITION OF ASSETS

2016 COMPOSITION OF GIF TS

(in millions, unaudited)

(in millions, unaudited)

W.W. Caruth, Jr. Foundation

371.8

Donor-Advised Funds

43.5

Donor-Advised Funds

317.2

Agency Funds

26.8

Discretionary Funds

103.8

Designated Funds

20.5

Designated Funds

85.2

Discretionary

0.1

Other Supporting Organizations

83.0

Other

2.1

Nonprofit Agency Funds

32.3

Scholarship Funds

16.8

Charitable Remainder Trusts

9.5

General Operating Funds

7.4

TOTAL GIFTS

For a listing of named funds at CFT and to review the annual independent audit report and the related audited consolidated financial statements with

$93.0

footnotes, please visit www.CFTexas.org.

IN V ES TMENT M A N AG ERS Aberdeen Asset Management, PLC

$1,027.0

TOTAL ASSETS

BlackRock $1,065 $1,067

BNY Mellon Cash Investment Strategies $1,027

Brookfield Investment Management

$982

Burgundy Asset Management Ltd. Carlson Capital, L.P.

$853 $801

Cushing Asset Management

$769

$754

Disciplined Growth Investors, Inc.

$705

$700 $651

DL & Partners Investment Company HHR Asset Management Marble Arch Investments Pzena Investment Management, LLC State Street Global Advisors

06

07

08

09

10

11

12

13

14

15

16

ASSETS

(in millions, unaudited)

Trinity Street Asset Management Western Asset Management Company White Elm Capital William Blair Investment Management, LLC

$134

CUS TODIAN BNY Mellon $98

$93

LEGAL COUNSEL K&L Gates LLP

$86

Thompson & Knight

$73

INDEPENDENT AUDITOR McGladrey LLP

I N V E S T M E N T C O N S U LTA N T Segal Rogerscasey 12

13

14

15

16

Cambridge Associates, LLC

TOTA L G I F T S R ECEI V ED

(in millions, unaudited)

17

1010110100110 01010110100110

0111010100110 00111010100110 Building Economic Stability

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MEASURING SUCCESS

10100010011110 0100010011110 “When you are

10100101110010 0100101110010 asking someone

10100110101011 0100110101011 to change their

Interfaith Family Services overhauls their strategy 1001100011101 lifestyle, you01001100011101 have

based on data learnings from Data-Driven Decision to have proof01001100110010 that 1001100110010

Making (D3) Institute it works.” 11010101010001 1010101010001

0111101010010 00111101010010

Interfaith Family Services knew they had a data problem: while they were helping

KIMBERLY WILLIA MS , 11100101010011 1100101010011 families survive homelessness, the majority of families served were not thriving

CEO, Interfaith Family

01010110100110 1010110100110 long-term. Interfaith was accepted into the D3 Institute at Communities Foundation Services

0111010100110 00111010100110 of Texas, and what they learned inspired them to completely restructure their work.

For example, while their priority had been creating more housing to serve greater 1100101101010 01100101101010

numbers of homeless families, the data showed that the most important aspects of 0100010011110 10100010011110

their programs were actually career counseling and childcare—services that could 0100101110010 10100101110010

elevate families’ independence and financial status and which were not available 0100110101011 10100110101011 elsewhere. After reorienting their services based on these and other findings,

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the long-term success rates from Interfaith’s programs skyrocketed. They are now

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moving forward with a $10 million campaign informed by their work after D3 as well

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as by their participation in CFT’s Working Family Success Network.

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100101010011 11100101010011

010110100110 01010110100110

111010100110 00111010100110

100101101010 01100101101010

Before D3

100010011110 10100010011110

100101110010 10100101110010 The average wage among graduates was

100110101011 10100110101011 $9.50/hour 001100011101 01001100011101

After D3 The average wage among graduates is

$13.00/hour

001100110010 01001100110010

40% OF RESIDENTS completed Interfaith’s Financial Empowerment Program

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HALF THAT NUMBER were homeless again six months later

91% OF RESIDENTS completed Interfaith’s Self-Sufficiency Program

97% OF PROGRAM GRADUATES were still employed one year later

W.W. Caruth, Jr. Foundation

AN ARRAY of IMPACT Three major grants in 2016 support mental health, education and public safety The W.W. Caruth, Jr. Foundation at Communities Foundation of Texas supports frontieradvancing projects in public safety, education, and scientific and medical research. These grants made in 2016 will fund transformative initiatives in each of Caruth’s three areas of focus.

E D U C AT I O N CI T Y Y E A R

$750K

$750K over 4 years will support the launch of City Year Dallas in the Dallas Independent School District. City Year will focus on academic support, student engagement and school culture in five high-need DISD schools in the 2015–2016 school year.

S CI E N T I FI C A N D MEDICAL RESEARCH U T S O U T HWE S T ER N M ED I C A L CEN T ER

$5MM

$5MM over 5 years will support a longitudinal research study within UT Southwestern’s Center for Depression and Mood Management. The study will identify biological and environmental characteristics that can inform the diagnosis, treatment and prevention of depressive disorders.

CUMU L AT I V E G R A N T S BY T H E W.W. C A R U T H , J R . FO U N DAT I O N TOTA L

$170MM

P U B L I C S A FE T Y AC T

$2.5MM

$2.5MM over 5 years will go toward refining ACT’s proven model of community engagement paired with legal action to reduce crime and blight in high-poverty neighborhoods in West and South Dallas.

North Texas Giving Day

DAZZLING GENEROSIT Y North Texas Giving Day shatters records...again!

Communities Foundation of Texas’s eighth annual North Texas Giving Day raised the largest amount in the event’s history for the fifth year in a row, and the largest amount for a single online community “Giving Day” in the nation. An astounding $37.3 million was raised for 2,518 nonprofits from more than 142,700 donations. For the first time in the event’s eight-year history, all participating nonprofits received a gift. Donations poured in from all 50 states and 39 countries at a rate of nearly $34,500 per minute.

14.4

$

MILLION

2012

25.2

$

MILLION

2013

26.3

$

MILLION

2014

33

$

MILLION 2015

37.3

$

MILLION 2016

Photo by Kim Leeson

$37.3MM

po we re d by

RAISED FOR

2,518 NONPROFITS

THROUGH

142.7K GIFTS 21

Educate Texas

EDUCATE TEXAS’S 20 x 2020 PLAN A bold vision for transforming Texas public and higher education By 2020, 65% of adults will require a postsecondary credential to be gainfully employed. Bold transformation to the public and higher education system is critical to prepare our Texas students for postsecondary success.

Educate Texas, a public-private initiative at Communities Foundation of Texas, has identified four areas of focus to improve student success by 2020 and beyond.

O U R V I S I O N : Strengthen the public

O U R M I S S I O N : Increase postsecondary

and higher education system so that every

readiness, access and success for all students by

Texas student is prepared for educational

building partnerships, leading innovation and

and workforce success.

scaling practices and policies.

COLLEGE & CAREER READINESS 275,000 students

HIGHER E D U C AT I O N

EFFECTIVE TEACHING

OUR 2020 GOAL:

Achieve a tipping point toward success by reaching 20% of our state’s students and teachers in four key areas of focus.

320,000 students

64,000 teachers

REGIONAL C O L L A B O R AT I O N 1,500,000 students

Visit EdTx.org to learn more.

COMMUNITIES FOUNDATION of TEXAS | 2016 ANNUAL REPORT

OUR TEAM FI N A N C E A N D A DM I N I S T R AT I O N Beth Bull

Senior Vice President and Chief Financial Officer

Amanda Roberts

R EL AT I O N S H I P S

ED U C AT E T E X A S

Susan Swan Smith

John Fitzpatrick

Matt Allen

George Tang

Associate, RGV Focus

Zimo Banta

Deputy Director, RGV Focus

Chief Relationship Officer North Texas Giving Day Program Manager

Executive Assistant to the President, CEO and CFO

Amelia Barber

Investments and Accounting

Leslie Chatman

Josh Chastant

Investment Analyst

Chris Coleman Staff Accountant

Brian Doyle

Vice President of Investments

Michelle Koval

Administrative Assistant

Donna Langdon

Accounts Payable Administrator

Bobby Lewellen

Manager, Financial Planning Analysis

Jennifer Parkinen Investment Assistant

Ruth Polanco

Senior Accounts Payable Administrator

Leigh Schaefers

Director of Accounting

Kristine Thomas

Donor Initiatives Officer

North Texas Giving Day Data Project Coordinator

Sejal Desai

EFNT Program Director

Yvette Elkins

Data Integrity Manager

Carol Pierce Goglia

Marketing and Communications Director

Karen Gutierrez

Data Management Director

Melissa Hardage

Donor Initiatives Officer

Abigail Hazlett

Scholarship Initiatives Officer

Sarah Beeks Higdon Donor Relations Officer

Claire Hodges

Digital Marketing Officer

Geri Jacobs

Director of Charitable Gift Planning

Vice President, Accounting

Emily Jackson

Facilities and Administration

Katie Kuehl

Amy Auginbaugh

Sally Kurtz

Beverly Garner

Elizabeth Liser

D’Etta Hughes

April Lynch

Business Analyst

Facilities Director

Human Resources Director

Digital Marketing Coordinator Donor Services Associate

Palacios Area Fund Coordinator Donor Services Director Grants Associate

Lisa Causey

Janice Mitchell

Sylvia Sanchez

Carolyn Newham

Meeting Coordinator

Facilities/I.T. Assistant

Teresa Pottorff

Human Resources Manager

Jessica Robinson

Administrative/HR Assistant

Ann Marie Warrick Employee Engagement Program Coordinator

Erica Lopez

Front Desk Coordinator

Data Entry Associate

Donor Relations & Fund Administration Director

Angela Woodson

Advisor Relations Officer

Executive Director

Managing Director

Associate, Insights & Analytics

Luzelma Canales

Executive Director, RGV Focus

Chris Coxon

Managing Director, Programs

Denise Davis

Deputy Director, Programs

Amy Desler

Deputy Director, Development

Denise Devora

Deputy Director, Programs

Natalie Firanacci

Associate, Programs

David O. Franco, Jr.

Associate, Insights & Analytics

Kelty Garbee

Deputy Director, Programs

Melba Garcia

RGV Focus Assistant

Priscilla Aquino Garza Deputy Director, Policy

Amy Groff

Managing Director, Finance & Administration

Shelly Haines

Executive Assistant

Kate Haisten

Deputy Director, Programs

Melissa Henderson

Deputy Director, Policy

Reo Pruiett

Director, Programs

Esther Rodriguez Eugenio Saenz

Andy Scripps

Deputy Director, Strategy

Jarrad Toussant

Deputy Director, Policy

PHIL ANTHROPY Sarah Cotton Nelson

Chief Philanthropy Officer

Wende Burton

Community Philanthropy Director

Tina Lin

Strategic Initiatives Officer

Ashley McIver

Community Philanthropy Officer

Lisa Pearrow

Executive Assistant

Lori Price

Community Impact Specialist

Asia Rogers

North Texas Giving Day Administrative Specialist

Stefanie Valenzuela

Philanthropy Operations Officer

W.W. C A R U T H , J R .

FO U N DAT I O N Monica Egert Smith

Senior Director, Strategic Philanthropy

Carly Gilbert

Administrative Assistant

Susan Henderson

Deputy Director, Programs

Beth Hook

Director, Marketing & Communications

Laurie Knox

Program Assistant

Kristin Kuhne

Director, Insights & Analytics

Lora McKeown Finance Assistant

David Patterson

Deputy Director, Finance

Catherine Pena

Deputy Director, Programs

Nischal Prakash

Associate, Insights & Analytics

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5500 Caruth Haven Lane Dallas, Texas 75225-8146 214.750.4222 Fax 214.750.4210 CF Texas.org | EdT X .org | Nor thTexasGivingDay.org