Vermont Community Foundation 2019 Annual Report

2019 ANNUAL REPORT

C R E AT I N G O P P O R T U N I T Y T O G E T H E R

C O N T E N T S Letter from Dan and Meg COVID-19 At Work in the Community: The Year in Numbers Opportunity Gap: What We Are Learning Our Funds and Foundations Vermont Mission Investments Our Partners: Fundholders and Advisors Financial Report Board and Staff

OUR MISSION Better Together: Inspiring giving and bringing together people and resources to make a difference in Vermont.

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Dear Friends – Earlier this year, as we were starting to put together the pieces of this Annual Report,

we could not have guessed how differently situated our communities would be in just a relatively short time.

As eager as we are to tell the stories of what giving and community have accomplished in

closing the opportunity gap, the collective focus of our communities, our partners, and our

staff is now rightfully focused on the impacts of COVID-19. The challenges on which we were all

working mere months ago have paled in comparison to those we will face in the coming weeks, months, and beyond.

But there is also much in the work that we have done together over the past year that can illuminate the path forward from the current crisis.

To begin with, nothing makes the reality of the opportunity gap more clear than the crisis that

is unfolding before our eyes. Issues of equity and economic immobility are not new, but the current situation has brought them starkly into the light, in ways that make them all but impossi-

ble to ignore. In that sense, the work that you read about in these pages represents a blueprint for the approach we must now undertake to recover from the effects of COVID-19.

Similarly, the lessons we’ve learned about how philanthropy can be more deeply engaged

“The lessons point to strong partnerships, unflinching focus, and a need to double down on the social bonds that hold community together.”

in supporting community–and the underlying work that gives rise to those lessons–resonate all the more deeply when considered in light of the uncertainties that are testing us as we write this.

The stories in this report offer a glimpse of the work that we need to continue and to expand.

The lessons point to strong partnerships, unflinching focus, and a need to double down on the social bonds that hold community together, regardless of how close we stand to one another physically. We stand committed to doing so even as the financial markets pull back from the strong 2019 returns reflected in this report.

Our hope is that this report serves as a useful reminder of why we do this work together. We are indeed better together. From all of us at the Community Foundation, thank you for what you make possible.

Sincerely, Dan Smith President & CEO

Meg Seely Board Chair

COVID-19

In 2020, COVID-19 spread throughout the state and Vermonters responded We find ourselves right now in a defining moment. When faced with a comprehensive common challenge—a

life or death challenge—we are reminded that the challenge itself and the circumstances that gave rise to it don’t belong to someone else to solve. We share that responsibility, just as we share the sense of loss stemming from the impacts of this virus.

But we should also share a sense of pride in each other and in our state. As Vermonters, we are here for each

other. Whether it is front line medical staff and essential workers putting the care of the community ahead of their personal safety, nonprofit organizations working tirelessly to provide food and care across the state, or

businesses and employers pivoting to respond to urgent needs, Vermonters have stepped into this moment

to lift each other up. Fundholders are giving more, giving earlier, and giving more flexibly. You understand it

will take an unprecedented philanthropic response to recover after the immediate relief needs are addressed, and we appreciate you being with us for the long run.

At the Community Foundation, our goal is to seize this opportunity to create greater resilience for our communities, people who live here, people coming here, and for future generations in the face of future challenges.

You can count on us to take up that challenge doggedly and continue to enlist your help along the way.

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The Vermont Community Foundation

$

$ 25.8M

$44.1

in Grants

$ 13.5M

MILLION

Mission Investments

$ 4.8M

At Work in the Community

Programmatic Activity

Grantmaking by year:

Total Number of Grants

3,143

2019 $25.8M

Total Funds

OpportunityGap Grantmaking and New Mission Investments

$918K

$3.6M $918K Early Care & Learning

$2.4M $3.6M Support for Youth and Families

2018 $18.1M

2017 $15.1M

2016 $13.8M

852

$17.2M

$9.2M $2.4M College & Career Training

$1.08M

$9.2M Community & Economic Vitality

Opportunity Gap Impact by Source

$1.08M Vermont Mission Investments

“The Community Foundation’s key role is to use our continuous learning, shared insights, and discretion-

Donor Advised Funds: . . . . . . . . . . . . . . . . . $9.85M Discretionary Funds: . . . . . . . . . . . . . . . . . . $1.28M Supporting Organization: . . . . . . . . . . . . . . $4.26M Committee Advised Funds: . . . . . . . . . . . . . $712K New Vermont Mission Investments: . . . . . $1.08M Total . . . . . . . . $17.2M

ary giving, to build a meaningful case for our philanthropic partners to join us in closing the opportunity gap.

When we commit together to effect change, that is when we truly improve access to opportunity and equity for all Vermonters. ” —Dan Smith President & CEO

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Opportunity Gap:

What We Are Learning

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Early Care & Learning

College & Career Training

Support for Youth & Families

Community & Economic Vitality

So that every family in Vermont has access to high-quality, aordable care and education.

So that working-age Vermonters have a postsecondary degree or credential of value.

So that youth and families have a safe, healthy, and nurturing environment outside of school.

So that Vermonters see their communities as places of opportunity.

The Vermont Community Foundation

When we focus time and resources on a specifi c place, the results are amplifi ed.

Placing Foundation staff in communities to listen and learn ensures that grants and other investments are uniquely tailored to local opportunities.

SPR I N GF IELD The focused presence of Foun Foundation staff in this determined southeastern Vermont town paved the way for support from a variety of sources: a Community Foundation mission investment in the Woolson Block redevelopment project, a Vermont Women’s Fund grant to engage girls in STEM education, and grants for the new Springfield Youth Center. By calling attention to the potential of these and other projects to close the opportunity gap, the Foundation has been able to draw additional support from fundholders. This is driving even more capital to the area and contributing to the gathering sense of momentum and renewed hope that is evident even in casual conversations with residents.

BR ATT LEBORO After identifying youth and workforce development as a priority community need, the Community Foundation and the McClure Foundation supported the Brattleboro Development Credit Corporation’s (BDCC) Pipelines to Pathways project. The program identifies skills that are in demand by regional employers then equips students with the training and experience to pursue those careers after high school. A fundholder and BDCC also introduced the Foundation to Demo-graphix, a t-shirt start-up founded by local teens who identified a market demand and received operational support from Brattleboro Youth Services. A Foundation grant enables Demo-graphix to provide local young people with transferable work skills such as marketing, accounting, and clothing production.

MO RRI S TO WN When funders share knowledge with one another about a specific region, the collaborative grantmaking that follows can help nonprofits meet immediate needs and build long-term capacity. For example, Everyone Equals Morristown Community Center (E=MC2) is a new youth and community center in Morristown that offers a space for children and families to play, connect, and chill.

It sprang to life when a small group of dedicated residents came together to apply for a federally funded Promise Community Grant in 2016. A year later, the Foundation’s Giving Together program partnered with the Fountain Fund and the Cookie Jar Fund to make a $2,500 contribution to the burgeoning center. Building off that grant, the Katz Amsterdam Charitable Trust—another philanthropic partner of the Foundation—made grants in 2018 and 2019 to bring integrated mental health services to E-MC2 through a partnership with the Community Health Services of Lamoille Valley.

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Statewide partners are a critical part of how we become better informed about local projects and impact.

Statewide partners improve our ability to find model programs and give us confidence that the Foundation is supporting the kinds of work that closes the opportunity gap and benefits Vermonters.

VE R MON T AF TERS CHOOL The Foundation’s three-year part partnership with Vermont Afterschool was instrumental in the launch of the VT9to26 Coalition, which brings to Vermont best practices from countries like Finland and Iceland that have proven success in improving youth outcomes. Key concepts—like a whole-community approach and the use of real-time data about student beliefs and behavior—now help guide the Foundation’s local grantmaking in places like Enosburgh Falls and Richford.

MT. HO L LY C O N S ER VATI O N PRO JEC T When residents of Mount Holly organized to preserve a beloved parcel of forests, streams, and wetlands, the Vermont Land Trust (VLT) provided a valuable support to this local conservation effort. VLT’s support affirmed the Foundation should also get behind the effort. Two Foundation fundholders pitched in $120,000 for a challenge grant to attract more funding, helping preserve a key piece of the town’s social fabric and identity and ensuring that deeply-held local traditions of hunting, fishing, skiing, and other recreation will pass to—and be valued by— future generations.

V ERMO N T CO U N CI L O N RU RA L DEV EL O PMEN T I N THE N EK/ N EWPO R T The Foundation’s support of the Vermont Council on Rural Development (VCRD) Community Listening program continues to offer a platform for residents to talk about what their communities need to prosper. When a listening session in Newport raised the urgent need for a physical space to house child care services, fundholders and the Foundation’s Northeast Kingdom Fund responded quickly with grants that allowed Kingdom Learning Services to build a new center and add 72 greatly needed childcare slots to the region. The project was further bolstered with a loan guarantee from the Foundation’s Vermont Investment program.

Small grants are most impactful when they lead to the growth of social capital.

When a small project brings people together to work, play, celebrate, or volunteer, the community bond that is created often outlasts the project itself.

I NCLU S IVITY Addison Allies received a Foundation grant to help migrant workers obtain drivers’ licenses, so that those workers can better connect with each other and with the broader community. Vermont Migrant Education Program received funds to help children of migrant workers share their personal stories and establish connections with each other in a supportive environment.

Support from the Foundation and its Samara Fund enables Out in the Open to connect rural LGBTQ Vermonters with each other to build community, share stories, and improve experiences for all.

COMMUNITY GAT H ERING AREA S Collins Perley Sports Center used a grant from the Foundation to establish a community playground in an area of St. Albans that previously had no public playground, providing a safe space for children to play and parents to develop friendships. The Children’s Room in Waterbury—which used a Foundation grant to expand services to include newborns and infants—provides a space for new caregivers, especially those struggling financially, to connect with their children and make friends with other parents. Granville rehabilitated a historic one-room schoolhouse with a grant from the Foundation that will house the area’s first-ever community center, giving residents the opportunity to connect with one another while participating in educational, cultural, and entrepreneurial activities.

EN V I RO N MEN T Glover Energy Committee trains community members throughout the Northeast Kingdom to produce low-cost insulating window inserts that improve the warmth and comfort of homes, lower heating costs, and reduce CO2 emissions. The organization used Foundation funding to purchase materials and expand the program to neighboring towns. The Nulhegan Band of the Coosuk-Abenaki Nation used a grant from the Foundation to move forward with establishing a tribal forest that will serve as a training ground to promote economic development, education, self-sufficiency, and environmental protection.

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When fundholders lead... we uncover important ways to make a difference in their communities.

Giving together and learning together means we close the opportunity gap in Vermont.

E MPLOY EE RETENTION The 2008 recession hit Rutland particularly hard, and employee retention and support has suffered as a result. Lyman Orton, a fundholder and regional business owner, brought Foundation staff into conversation with local stakeholders about establishing a program to provide on-site support services that help working Vermonters be productive employees and citizens. The Employee Life Navigator initiative is the result of collaboration between The Vermont Country Store, United Way of Rutland, Goodwill of Northern New England, and the Community Foundation.

R ACI AL EQU ITY & THE AR TS After multiple fundholders called the Foundation’s attention to the good work happening at JAG Productions, a theater company that produces classic and contemporary African American works, the Foundation

racial equity education in Vermont schools through theater and facilitated discussion. JAG Productions also organized a day-long summit to build champions within the schools who feel empowered to take actions that move the needle on racial equity.

A DDRES S I N G HO MEL ES S N E S S Strong support from a fundholder led Foundation staff to introduce other co-funding partners to the Housing First program at Pathways Vermont. The program’s successful approach has helped over 200 Vermonters end the cycle of chronic homelessness by helping individuals and families to maintain independent housing and providing long-term, multidisciplinary community supports such as substance use disorder counseling and career mentorship. The support from Foundation partners has helped Pathways Vermont expand its Housing First program to other areas of the state.

helped the organization initiate a pilot program to expand

ING C R E AT

E F U T UCRT I M PA

Our fundholders contributed nearly $320,000 of the $612,000 granted through GivingTogether in 2019.

The GivingTogether program shares proposals received through our competitive grant rounds with donors, providing them an opportunity to co-fund some of the most promising work being done by nonproďŹ ts throughout Vermont.

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Our Funds and Foundations The Community Foundation family is made up of hundreds of funds, foundations, and generous donors, working together with a common love of Vermont. Here are some of their highlights.

THE J. WARREN & LOIS MCCLURE FOUNDATION Supporting equitable college and career training pathways Last year, the McClure Foundation featured

a program led by the Community College of

Vermont (CCV) that offers college courses and

advising to men incarcerated at Northern State

Correctional Facility in Newport. McClure funding helped launch the program in 2017; in 2018,

several Community Foundation donor advisors

funded the program alongside McClure. Based on early successes, CCV received a federal Second-Chance Pell grant to continue the

program, highlighting a best-case application of philanthropic capital: absorbing risk early-on to give a promising program a chance to prove its effectiveness.

Š Vermont Tech

Awarded nearly $650,000 in grants that make college and career training pathways more accessible, more visible, and more affordable for youth and adults 12

The Vermont Community Foundation

THE CURTIS FUND

$1, 500,000

awarded to 589 students in scholarship grants to attend college or credentialsof-value training progams.

Despite challenges to our mission over our 110-year history, the Fund’s focus has remained steadfast on providing educational opportunities to those who strive for something better and are willing to work hard to achieve economic independence. Over 500 students attended college in the 2019–2020

academic year with Curtis Fund scholarships, and 70 learners participated in 31 separate certificate programs, including Meghan. “You just have to stay

focused and really want it, because good things don’t come easy. You have to

THE VERMONT WOMEN’S FUND

$305,000 awarded in 2019 to nonprofits that advance gender equity and help Vermont women and girls achieve economic self-sufficiency.

The Vermont Women’s Fund celebrated its 25th

anniversary in 2019 with a series of record-breaking events. It began with a breakfast discussion

on the culture behind sexual harassment and

discrimination, where for the first time in VWF history, male attendees—including Governor Phil Scott—

outnumbered female attendees. And, the calendar

culminated with the Annual Event in October featuring Jodi Kantor and Megan Twohey, the Pulitzer Prize-

winning journalists who broke the Harvey Weinstein story. The event raised a record-setting $100,000 for the Fund.

work hard.” Meghan Lewia just graduated with honors and became an LPN

and doesn’t plan to stop there. She’s considering getting a BA to become an RN, and then continuing on to become a nurse practitioner.

THE SAMARA FUND

$390,000 distributed to LGBTQ individuals and organizations since the Fund’s inception.

In 2019, the Samara Fund launched an ambitious multi-year capital campaign to increase its

endowment and grantmaking capacity. While

building momentum for the campaign, Samara made $35,300 in grants to 12 organizations providing supports and services for LGBTQ

Vermonters and made five $1,000 scholarships to LGBTQ youth pursuing higher education.

Grantees ranged from the state’s Pride Festival, to

organizations supporting queer youth, to services for people living with HIV/AIDS, as well as groups

who help isolated, rural LGBTQ Vermonters seeking community and connection.

THE HIGH MEADOWS FUND Promoting vibrant communities, healthy environment, and economic vitality In 2019, the High Meadows Fund advanced its Farm to Market Initiative, aiming to scale up and strengthen the state’s food hubs over five years.

The initiative’s three core partners—Food Connects (Brattleboro), Center for an Agricultural Economy (Hardwick), and the statewide Food Hub

Collaborative (hosted by Vermont Housing and Conservation Board)—have expanded connections between farmers and new markets like grocery stores, co-ops, and healthcare and education institutions. More significantly, the local food system has become stronger, enhancing the ability to respond to disruptions like COVID-19.

14 The Vermont Community Foundation

THE NORTHEAST KINGDOM FUND

$110,243 to 29 nonprofit

organizations serving Orleans, Essex, and Caledonia Counties.

2019 was the largest grantmaking year since the inception of the

Northeast Kingdom Fund. Thanks to the generosity of donors, the endowment hit the $1 million mark. Additional funds allow the

committee to think about new ways to support the region, and the

NEK Fund piloted a multi-year grant to provide general operating support to three nonprofits that have a strong track record of success.

LET’S GROW KIDS

803 new and

improved high-quality child care spaces in Vermont.

2019 was a powerful year for the Let’s Grow Kids movement to build a strong and sustainable child care system for Vermont’s children, families, early educators, and communities. Inspired

by Vermonters calling for change, the state of Vermont invested a historic $8.8M for new ways to support child care and early educators. Let’s Grow Kids also directly supported 24% of the state’s child care programs to expand and improve their offerings for Vermont’s youngest children.

• 245 child care programs received technical support and expert coaching at no cost • 136 early educators pursuing teacher licensure received assistance and support 2019 Annual Report

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OPPORTUNITY FUND FOR SOUTHSHIRE YOUTH

$43,500 in grants

awarded since the Fund’s inception in 2018

Youth in the Bennington area, especially low-income youth, often struggle to find ways to explore their interest in arts,

science, and other topics. In 2019, the Opportunity Fund for Southshire Youth awarded $22,157 in grants to give local

middle and high school students hands-on experiences and

mentoring, including an afterschool robotics program run by the 4-H. Another grant funded the Vermont Arts Exchange to partner with Akin Studio to mentor talented youth through

writing, recording, and performance of their original works.

ADDISON COMMUNITY ATHLETICS FOUNDATION Promoted community health and vitality by introducing tennis to more than 1,000 Addison County children “Who here plays tennis?” asks Franz Collas, head tennis pro for the Addison Community Athletics

Foundation (ACAF), on the first day of every program. Five years ago, a few hands might tentatively creep up. These days, dozens of hands shoot up without hesitation! It’s not surprising, given that

ACAF has been hard at work introducing tennis, the “sport for life,” to budding tennis players of all 16

The Vermont Community Foundation

ages throughout Addison County, making the great game truly accessible for all residents.

MISSION INVESTMENTS Loans and equity investments that strengthen Vermont communities As an early adopter of mission investing, we know that we can make a greater impact by using all of the ďŹ nancial tools in our toolbox—grants, loans, equity investments, and everything in between. Our investment in High Mowing Seeds enabled the company to upgrade its IT systems and hire new sales reps in 2019. The timing of our support was vital to their ability to meet the needs of growers throughout the country during the COVID-19 pandemic. In the spring of 2020, home gardener sales were three times historic levels, as people turned to their own back yards for a safe and reliable source of food. The company has always had a strong commitment to community, and this year it contributed 150,000 seed packets to support food-insecure Vermonters.

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FUNDHOLDERS Will and Lynette Raap

BLOOM WHERE YOU’RE PLANTED Lynette Raap recalls that when she worked at Gardener’s Supply, the company her husband Will founded in 1983, her boss would tell her, “We have to make money so the business can give it away.” Long before corporate social responsibility, Will built Gardener’s Supply on the concept that businesses can be profitable and have a social impact, an idea that carried over into his and Lynette’s charitable giving. “Philanthropy is not a binary thing—it’s a process of finding ways within the economic structures in which we operate to make an impact on the issue areas you care about,” says Will. “What I appreciate about the Community Foundation is that it really helps us carry out this process efficiently, intelligently, and with good documentation and memory.”

In 2019, Will and Lynette made the decision to begin working with the Community Foundation after years of giving to the Intervale Center and the Lake Champlain Waldorf School—organizations they helped found—as well as an array of education, farming, and environmental causes. “We’re not ambivalent donors; we start with what we know, but we like to add on,” mentions Will. “The Foundation keeps an open mind to where needs are greatest, then facilitates funding in those areas like the Food and Farm Initiative and Vermont Mission Investing —this is valuable, and it makes philanthropy a lot easier than it was.” Lynette adds, “Vermont-centric is also pretty darn important. Bloom where you’re planted.”

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The Vermont Community Foundation

Kit Gates and Mark Yorra

COMMITTED TO COMMUNITY In 1980, Kit Gates and Mark Yorra opened a primary care practice in Barre that included women’s health and internal medicine. Over 35 years of caring for Granite City residents provided them with a window into Barre’s diverse, working class heart and soul, and the pair formed a close affinity for the community. When Kit and Mark reached retirement age and started considering philanthropy, they prioritized supporting nonprofits that improve the health and vitality of the town where they built careers. After an accountant reviewed their initial gifts, the couple realized they were disbursing money in a disorganized way. Some online research led them to the Vermont Community Foundation.

“It was the perfect vehicle for us,” says Mark. “We share the same prime focus as the Community Foundation—supporting communities in Vermont and making it a better place.” Kit adds, “For people who feel they have discretionary income to donate, it’s a much simpler way to go about it instead of setting up a formal foundation, and it makes tax accounting so much easier.”

ADVISORS

LAURIE A. ROWELL, ESQ. Rowell Law Office, PLC

“As a solo practitioner with a law office in Brattleboro, I am happy (relieved) to be able to call on the Community Foundation to provide time and expertise to my estate planning clients who have ideas of what they want to accomplish with their charitable giving, but no clear path in place to get there. I am pleased to suggest they join forces and funds with the Foundation to meet their goals.”

Our Trusted Partners

Thanks to the many people who have helped create a more vibrant Vermont by referring clients to the Community Foundation. To see the current list visit: vermontcf.org/advisors

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FINANCIAL REPORT FOR 2019 As of December 31

ASSETS

2019 (unaudited)

2018 (audited)

$10,533,323

$12,041,105

$343,285,966

$296,783,672

$16,982,053

$13,691,750

$370,801,342

$322,516,527

$2,722,383

$2,396,310

Cash and Cash Equivalents Investments Other Assets

Financials (NEW LOOK)

Total Assets LIABILITIES AND NET ASSETS Grants Payable, Accounts Payable, and Other Liabilities Planned Giving Liabilities

$10,148,316

$9,712,255

Funds Held for Nonprofit Organizations

$55,960,663

$49,917,234

$68,831,362

$62,025,799

Total Liabilities Net Assets without Donor Restrictions

$275,176,045

$239,039,863

$26,793,935

$21,450,865

Total Net Assets

$301,969,980

$260,490,728

Total Liabilities and Net Assets

$370,801,342

$322,516,527

Net Assets with Donor Restrictions

Please visit vermontcf.org/investments for current investment returns and historical performance

TOTAL ASSETS in Millions

2019

2018

2017

2016

2015

2014

2013

$371M

$323M

$311M

$252M

$224M

$215M

$192M

Net Investment Returns (through December 31, 2019) 1 Yr.

3 Yr.

5 Yr.

10 Yr.

Long-Term Pool

17.1%

9.1%

7.0%

8.1%

Target Benchmark

17.9%

8.8%

6.5%

6.8%

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The Vermont Community Foundation

1 Yr.

3 Yr.

5 Yr.

10 Yr.

Socially Responsible Pool

19.8%

10.0%

7.4%

7.7%

Target Benchmark

20.2%

9.4%

6.9%

7.7%

Board of Directors Our board of directors consists of community leaders from around the state with diverse professional experience. The directors are chosen by the Community Foundation’s Members for their sensitivity to and knowledge of the state’s key issues.

Kathy Austin, Newport Lisa Cashdan, Norwich Hal Colston, Winooski Carolyn Dwyer (Vice Chair), Burlington

Mark Foley, Jr., Rutland Peter Kinder, East Dorset Spencer Knapp (Secretary), Shelburne Allyson Laackman (Treasurer), Burlington

Michael Metz, South Burlington Betsy Rathbun-Gunn, Sandgate Meg Seely (Chair), Bridgewater Will Stevens, Shoreham

Foundation Staff For a complete list of 2019 staff, please visit: vermontcf.org/staff Photography: John Lazenby – Back Cover Cat Cutillo – Cover, Back Cover, Pages 16, 18 Caleb Kenna – Cover, Back Cover, Pages 1, 2, 3, 5, 6, 7, 12, 17, 22 Peter Crabtree – Cover Jeff Woodward – Cover, Pages 2, 11, 21 Jerry Monkman – Pages 9 and 10 Ben DeFlorio – Page 15 Page 8: Hunt Middle School Afterschool Program/ Sara Holbrook Community Center Page 9: Out in the Open Pages 12 and 13: Vermont Tech Page 13: Boys and Girls Club of Burlington Page 14: Vermont Cares, Jericho Settlers Farm Page 15: Northeast Kingdom Learning Services Page 16: Vermont Arts Exchange Design: Serena Fox Design Company, Lincoln

3 Court Street, Middlebury, VT 05753 vermontcf.org