CFT Annual Report

Tomorrow COMMUNITIES FOUNDATION of TEXAS 2011 ANNUAL REPORT

There is a light in each of us that is bigger than all of us.

An intangible spirit that lifts us up and carries us forward into the day.

It charges young minds and old souls to believe things can be better, to trust in the sincerity of strangers, to care for our neighbors and to never, ever give up.

Within the marrow of this idea rests the true calling of Communities Foundation of Texas. Education and ecology, prevention and public safety, healthcare, arts and the countless other passions of donors—each challenge faced is an avenue for change. An opportunity for growth. A chance for the ambitiously compassionate to come together knowing that while individually we can help people, together we can change communities.

Communities Foundation of Texas is more than a charitable giving partner.

And it’s more than a way to positively impact our community. It’s a shared belief that together we will meet each day knowing that in real and tangible ways, we are making tomorrow better.

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DONOR PA SSIONS

Tomorrow Help and hope for expectant mothers

In addition to prenatal care and support, Life Shines Bright provides education and networking opportunities for participants of the program.

Thanks to the passion of donors like the Nicol family, this little girl was born a happy and healthy baby. The Life Shines Bright Pregnancy Program, an initiative of the Methodist Health System, provides resources for at-risk expectant mothers to help reduce the risk of preterm birth. By offering prenatal care, education and networking opportunities with other moms-to-be, Life Shines Bright has reduced the preterm birth rate to 5.6% for program participants, compared with 20% in the Methodist Dallas service area. Roughly one in seven babies is born prematurely in Texas, but thanks to the generous donations from the William F. and Noreen L. Nicol Fund, Life Shines Bright and Methodist Health System are working to beat the odds.

When the Nicols created a fund with Communities Foundation of Texas to benefit specific area needs, they made sure the fund would continue to make a difference even after they were gone. After their passing, CFT reviewed several worthy projects with their family and recommended Life Shines Bright. Crystal Charity Ball approached CFT with an offer to triple the amount of the grant as part of a one-time matching opportunity. By leveraging those additional resources, CFT made sure donations from the Nicol Fund went even further to improve life for little girls like Regina and her mother, Elizabeth.

2

ENTREPRENEURS FOR NORTH TEXAS

Business leaders leading by example When you think of CEOs, you don’t typically picture them rolling up their sleeves and heaving shovels into the dirt. But on September 11, 2011, that’s exactly what they did at the Entrepreneurs for North Texas 10th annual Freedom Day. Corporate leaders from local businesses partnered with five nonprofit groups to make a positive impact in South Dallas.

On Freedom Day 2011, employees from Hunt Consolidated and other companies partnered with the Texas Trees Foundation to beautify the city by planting trees in South Dallas.

Freedom Day was created to honor the lives lost and changed by September 11, 2001, through community service projects. Every year, Entrepreneurs for North Texas (EFNT) helps turn that tragedy into triumph by uniting hundreds of corporate citizens with nonprofit agencies, including the Texas Trees Foundation, to make the city a better place to live and operate a business. Founded in 2000, EFNT has more than 100 member companies making positive impacts on North Texas. Hosting Freedom Day is just one of the ways that EFNT makes it easy for companies to do good.

Tomorrow 4

W.W. C ARU TH , J R . FOUNDATION

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Transforming patient care for heart attack victims Ed Woyewodzic is proof that every second counts. After suffering a “widow-maker� heart attack at the age of 66, he was rushed to the emergency room for treatment.

Fortunately, the ambulance and hospital were equipped with the resources necessary to save his life. And today, Ed is living that life to the fullest, pursuing his passions of collecting Native American artifacts and gardening with his wife, Carla.

A $3.5 million grant from the W.W. Caruth, Jr. Foundation to the American Heart Association is making it possible for area hospitals to reduce the time it takes a heart attack patient to receive lifesaving treatment. Partners of the two-year initiative will work to ensure equipment compatibility, consistent training and uniform protocols for transporting and treating heart-attack patients across North Texas. The W.W. Caruth, Jr. Foundation and the American Heart Association are working together to give patients like Ed Woyewodzic a new lease on life and creating a model for other organizations around the country and the world.

Every day in Dallas County, approximately 30 people suffer heart attacks. The survival of each patient depends on the seamless delivery of emergency medical services.

TEXAS HIGH SCHOOL PROJECT

Tomorrow Giving students a chance to shine Juan Piñeda is no ordinary high school graduate. As a student of Trinidad “Trini” Garza Early College High School (ECHS), he gained dual college credit that prepared him for a postsecondary education. And now, he’s the first of his family to attend college, studying mechanical engineering at the University of Texas at Austin.

Thirty-three percent of the students in the first graduating class of all Early College High Schools earned associate’s degrees while still in high school, with the average student collecting 23 college credit hours.

Juan is one of many success stories of the Texas High School Project (THSP), a public-private initiative of Communities Foundation of Texas. THSP serves more than 84,000 students across Texas and has helped to allocate more than $375 million in public-private funds to ensure that all Texas students are ready for postsecondary education. With an emphasis on college readiness for low-income, first-generation students, THSP focuses on supporting effective teaching and learning, innovative STEM education and helping more students enroll and graduate from colleges and universities. Schools like Garza ECHS help prepare students for postsecondary educations, and THSP is helping them make a difference.

Giving students a chance to succeed is just one more way Communities Foundation of Texas is helping to make tomorrow better.

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DONORBRIDGE

Tomorrow Joining together to help Japan

In addition to donations, Anna McFarland and other Dallas-area volunteers made over 2,000 paper cranes, traditional Japanese symbols of healing and recovery, and delivered them to the Sendai International Center.

On the morning of March 11, 2011, a catastrophic 9.0 earthquake spawned a 30-foot-high tsunami that destroyed the northeastern coast of Japan. Anna McFarland, witnessing news coverage of the disaster, knew she had to help. As the executive director of the Japan-America Society of Dallas/Fort Worth, a friendship organization connecting the two countries, Anna quickly turned to Communities Foundation of Texas for assistance. Searching for an efficient way to enable donations to rebuild Japan, she leveraged the DonorBridge profile for the JapanAmerica Society, allowing people to donate immediately to the relief fund. In just a few short months, they raised over $100,000 for support recovery projects in and around Sendai, and they are still receiving donations today.

Launched in 2009, DonorBridge is the most comprehensive and free public resource for connecting North Texas nonprofits and supporters. For supporters, DonorBridge simplifies the process of gathering reliable information about nonprofits and community needs and making charitable donations. For nonprofits, DonorBridge and its annual North Texas Giving Day serve as another awareness-building and fundraising tool. DonorBridge profiles more than 700 nonprofits and, since its inception, has infused more than $19 million into nonprofits serving the 16 counties of North Texas.

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A LET TER FROM THE PRESIDENT AND BOARD CHAIR

Dear Friends, It’s autumn in Texas, a time when the leaves on our trees turn brilliant hues of red and yellow and combine with the green lawns and blue skies to paint our communities with a bold new palette.

Plus, we’re accomplishing more than ever with community impact grants awarded by the foundation.

New milestones have been passed through initiatives like the Texas High School Project, Entrepreneurs for North Texas and DonorBridge. New minds have been brought together around thorny issues.

As you’ve probably already noticed, the colors of Communities Foundation of Texas have changed as well, and we’re proud to introduce our new logo to you in this 2011 Annual Report.

Every day, we’re moving ahead.

The new Communities Foundation of Texas logo you see in this annual report is a reflection of what we stand for and strive to achieve every day. Its color and motion capture the spirit and vitality of the foundation. The “star” formed by the different colored ribbons evokes our deep Texas roots and represents the communities we serve. And it subtly illustrates that for every dollar that flows through CFT, there are countless people and stories woven together across North Texas and beyond.

Combined, they add up to something special.

This represents much more than a cosmetic change.

It’s a fresh look at who we are and how our image reflects us.

When it comes to the face of the foundation, we’ve been examining what people really see when they look at CFT. Does it appear to be passive or engaged?

Treading water or pushing onward? Going through the motions or creating impact?

Through that introspection, it became clear that the foundation’s historic identity did not reflect our forward momentum.

CFT is proud to stand alongside you and everyone who plays a part in what we do. It’s time to have a visual identity which says so. Together, we make tomorrow better.

CFT remains the solid, stable, trusted resource that we have been for the last 58 years. Nothing has changed about that. Still, we have increased the ways we offer value to the many communities we touch.

We serve more donors than ever, bringing individuals and families together while learning a lot about their dreams and priorities. Everyone is independent yet linked through the foundation into something even greater.

Brent E. Christopher PRE S ID ENT A ND CEO

We serve more nonprofits than ever—some very small, others very large—with new ways to communicate their missions and match community needs with the passions of donors.

Frederick B. Hegi, Jr. B OA RD CH A IR

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BOARD OF TRUSTEES & LEGAL COUNSEL

CFT’s funds and underlying assets are governed by an independent board of trustees, composed of respected community leaders from diverse backgrounds. They 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 nearly 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, which includes leaders from myriad businesses, 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.

B OA R D O F T RUST E E S

Frederick B. Hegi, Jr.

Frank Risch

Becky Bright

Jeanne T. Cox

Judith W. Gibbs

Jack M. Kinnebrew

Board Chair

Board Vice Chair

Civic Leader

Civic Leader

Civic Leader

Attorney Strasburger & Price, LLP

Bobby B. Lyle

John McStay

Harold Montgomery

Carlos González Peña

James E. Bass

Karen Shuford

President and CEO Lyco Holdings, Inc.

President John McStay Inc.

Chairman and CEO ART Holdings, Inc.

President Peña Search Consulting

President Ojai Goliad, LLC

Civic Leader

Principal Wingate Partners

Civic Leader

L EGAL CO UNSEL

Terdema L. Ussery II

Ruth Sharp Altshuler

Joseph M. “Jody” Grant, Ph.D

Kathryn G. Henkel

President and CEO Dallas Mavericks

Ex-Officio, Chairman’s Circle

Ex-Officio, Immediate Past Chairman

General Counsel

Civic Leader

Chairman Emeritus Texas Capital Bancshares

K&L Gates, LLP

Vester T. Hughes, Jr. Senior Tax Counsel

K&L Gates, LLP

CFT is committed to serving and understanding donor needs, expertly handling complex gifts, wisely managing charitable funds, and leveraging its vast community knowledge to increase charitable impact. The foundation professionally manages nearly 900 component funds and has awarded over $1.1 billion in charitable grants since its founding in 1953. Please visit CFTexas.org to learn more.

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DON FREEM AN, DONOR

LE A

Donors, nonprofit organizations and other community partners rely on Communities Foundation of Texas (CFT) as an effective hub of philanthropy. As the largest community foundation in Texas and one of the largest in the nation, CFT works with families, companies, nonprofits and other funding organizations to strengthen our communities through a variety of charitable funds and strategic grantmaking initiatives.

C F T

A HUB FOR PHILANTHROPY

“I’ve been working with Communities Foundation of Texas for 15 years, and I’ve been extremely happy.

Great service, terrific investment management and knowledge, and they handle my grant requests quickly.

It’s such an efficient way to give.”

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S

H

IP

COMMUNITY MMUNITY IM IMPACT MPACT FUN FUNDS DS Focused sed on benefiting at-risk a middle sch school hool youthh and working poo poor or

W.W. CARUTH, JR. FOUNDATION Dedicated to frontier-advancing projects in public safety, education, and scientific and medical research

TEXAS HIGH SCHOOL PROJECT A successful public-private partnership dedicated to significantly improving the postsecondary readiness of low-income students, with a focus on students in low-performing schools

ENTREPRENEURS NEURS FOR NORTH TEXAS Promotes and facilitates tes community involvement and philanthropy hropy for small and midsized companies es

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COM MUNITIES FOUNDATION of TE X A S

D O N OR

Annual fundraising event through DonorBridge that has pumped over $19 million into the local community since 2009

GIVING GUIDE Vetted guide of 350+ local worthy causes and current needs

· Donor-advised funds

N S

NORTH TEXAS GIVING DAY

Charitable funds that impact diverse focus areas, from arts and education to health and social services:

IO

Website of 700+ nonprofits that helps donors give wisely

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DONOR BRIDGE

A

S

MEETING TODAY’S NEEDS

P

· Scholarships · Designated funds

ENSURING TOMORROW’S FUTURE Planned future gifts to benefit causes you care about: · Endowments · Bequests · Charitable trusts

Communities Foundation of Texas offers extensive resources for its donors, including philanthropic advisory services to multiply donor impact in charitable passion areas, as well as opportunities for education and events.

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FINANCIAL INFORM ATION

ASSETS

2011 COMPOSITION OF ASSETS

(in millions)

(in millions) $801 $700

$627

$578 $562

$605

$769

$754

$705 $651

$647

Supporting Organization

283.7

Donor-Advised Funds

252.9

Discretionary Funds

91.8

Designated Funds

84.1

Nonprofit Agency Funds

32.4

Scholarship Funds

8.5

General Operating Funds

8.0

Charitable Remainder Trusts 01

02

03

04

05

06

07

08

09

10

11

TOTAL ASSETS

Fiscal years ending June 30

TOTAL CONTRIBUTIONS RECEIVED (in millions)

(in millions)

$90 $82 $74 $67

$49

$46

$22 $16

01

02

03

04

05

$769.1

2011 COMPOSITION OF GIF TS

$97

$76

$41

7.7

06

07

08

09

10

11

Donor-Advised Funds

31.5

Designated Funds

16.2

Scholarship Funds

0.9

General Operating Funds

0.6

Charitable Remainder Trusts

0.1

Discretionary Funds

0.0

Supporting Organization

0.0

TOTAL GIFTS

Fiscal years ending June 30

16

$49.3

Inve s tment M anag e r s

2011 GRANTS DISTRIBUTION

Aberdeen Asset Management, PLC Barrow, Hanley, Mewhinny & Strauss, LLC n 26% Education n 14% Arts & Culture

Burgundy Asset Management

n 14% Housing & Human Services

Credit Suisse

n 14% Religious Activities

Disciplined Growth Investors

n 1 3% Health & Scientific Research n 6% Youth

Hotchkis and Wiley Capital Management

n 2% Inner City & Community Development

BNY Mellon Cash Investment Strategies

n 11% Other

State Street Global Advisors The Investment Fund for Foundations (TIFF) Western Asset Management Company

Cus to d ian BNY Mellon

TOTAL GRANTS PAID

L e gal Counse l

(in millions) $80 $67

$69

$84

$79 $73

$67

Indep endent A uditor

$61

McGladrey & Pullen, LLP $44

01

Inve s tment Consultant

$37

$33

K&L Gates, LLP

Rogerscasey

02

03

04

05

06

07

08

09

10

11

Fiscal years ending June 30

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To review the annual independent audit report and the related audited consolidated financial statements with footnotes, please visit www.cftexas.org

$375MM

Invested in Texas High School Project programs

$1MM

$110MM

IN TOTAL CARUTH GRANTS

7

#

in assets among all Texas foundations

MATCHING GOAL MET FOR 2011 NORTH TEXAS GIVING DAY

MAKING AN IMPACT ON OUR COMMUNITIES

84,000 Students reached through Texas High School Project programs

$10.7MM

In record-breaking donations made to 600+ nonprofits over the course of 18 hours on 2011 North Texas Giving Day

$3.5MM

2

# In annual community impact grants for the working poor and at-risk middle school students

5

# 4,000+ Logged volunteer hours

by EFNT member companies

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MOST ACTIVITY VOLUME AMONG COMMUNITY FOUNDATIONS NATIONWIDE

in total giving among all Texas foundations

CORP OR ATE INFORM ATION

L e ade r ship Brent E. Christopher

President and Chief Executive Officer

Sonja Eldridge

Executive Assistant to the President, CEO and CFO

F inance and A d minis tration

Liz Moyer

Entrep reneur s f or Nor th Texas

Lisa Stabler

Pam Gerber

Facilities Manager Meeting Coordinator

Executive Director

Dusty Kuykendall

Philanthropy

Program Associate, Corporate Community Involvement

Sarah Nelson

Chief Philanthropy Officer

Alma Garcia

Program Officer, Early College High School Initiative

Reo Pruiett

Program Officer, T-STEM Initiative

Michelle Wisdom

Associate Program Officer, T-STEM Initiative

Wende Burton

Community Philanthropy Director

Texas High S cho ol Pro je c t

Senior Vice President and Chief Financial Officer

Advocacy and Communications

Jennifer Clifford

Leadership

Gene Acuña

I nv e s t m e nt s a n d A c c o u nt i n g

Lisa Pearrow

Beth Bull

Donna Langdon

Disbursement Administrator

Bobby Lewellen

Philanthropy Associate

Chief Operating Officer

Community Philanthropy Director

Karen Mercado

Susan Swan Smith

J. Steven Orr

Kelly Donohue

Kristine Thomas

Stephanie Fox

Vice President, Accounting

George Tang

Monica Egert Smith

Re lationships

Vice President, Investments

Executive Director

Administrative Assistant

Accounting Manager

Accounting Assistant

John Fitzpatrick

Alejandra Barbosa

Operations and Program Manager

Gaylette Wineberg Executive Assistant

Chief Relationship Officer

L e a r n i n g S y s te m s Chris Coxon

Donor Services Manager

Chief Program Officer

Fa c i l i t i e s a n d Administration

Jackie Franey

Matt Allen

Carol Pierce Goglia

Donor Relations Director

Information Technology Manager

Director of Communications

Philip Brown

Karen Gutierrez

Facilities Assistant

Data Integrity Manager

Courtney Caulfield

Melissa Hardage

Donor Services Director

Carolyn Newham

Susan Henderson

Human Resources Manager

Executive Director, Palacios Area Fund

Jerry Jones

Donna Walden

Facilities Assistant

Julie Harris-Lawrence

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Amy Groff

Director of Finance

Kelbert McGee Cost Analyst

Lora McKeown

Accounting Assistant

Program Manager, Early College High School Professional Development Network

W.W. Car uth , J r.

Foundation

Kelty Garbee

Executive Director

Associate Program Officer, Teacher Effectiveness

Executive Assistant

Heather Zavadsky

Finance and Administration

Charles Daniel

D’Etta Hughes

Re s e a r c h a n d I m p l e m e nta t i o n

Denise Davis

Program Assitant

Roberta Ripke

Postsecondary Policy Analyst

Research and Evaluation Analyst

Denise Devora

Fund Administration Manager

Melissa Henderson

Kristin Kuhne

Program Officer, Teacher Effectiveness

Receptionist

Communications Associate

Program Officer, T-STEM Initiative

Donor Services Manager

Christina Gibson

Jessica Dameron

Dee Chambliss

Caruth Homeplace Administrator/ HR Assistant Technical Support

Associate Program Officer, Policy and Advocacy

Director of Research and Implementation

Associate Program Officer, Early College High School Initiative

Sarah Monning

Mark Baxter

Program Assistant

Liza Ceniceros

Major Gifts Officer

Director, Advocacy and Communications

Jeverley R. Cook

CH A RL E S W Y LY

1 9 3 3—2 0 1 1

From his volunteerism to his donation of resources, his civic foresight to his dedication to the city that he loved, the vision and impact of Charles J. Wyly, Jr. made our community better.

Wyly joined the Communities Foundation of Texas board of trustees in 1997, served as chairman from 2000–2008 and remained on the board in an ex-officio role until his passing. During his tenure, Communities Foundation of Texas grew in assets from $385 million to $765 million and increased its grantmaking from $30 million to $80 million annually.

“Charles Wyly was a philanthropic visionary who cared deeply about the Dallas community,” said Brent Christopher, president and CEO of Communities Foundation of Texas. “He gave to a very broad range of causes, understanding how philanthropy could help meet the needs of hurting people and advance the cultural richness of society.”

Added current CFT board chair, Fred Hegi, “Dallas lost an exceptional leader, a compassionate philanthropist and a great friend.”

Tomorrow will be brighter, thanks in part to Charles Wyly. Communities Foundation of Texas, the city of Dallas and those whose lives he touched will be forever grateful.

5500 Caruth Haven Lane Dallas, Texas 75225-8146 214.750.4222 Fax 214.750.4210 CFTexas.org | thsp.org | efnt.org | DonorBridgeTX.org