Community Matters Feb 2007

C O M M U N I T Y

MATTERS Community Newsletter | Febr uary 2007

T H E W I N S T O N - S A L E M F O U N D AT I O N

Foundation Receives $6 Million Gift from the Estate of Charles H. Babcock, Jr. THE MARY REYNOLDS BABCOCK FOUNDATION announced in October that approximately $24 million from the estate of Charles H. Babcock, Jr. will go to three community organizations that match his life-long interests. They are The Winston-Salem Foundation, Reynolda House Museum of American Art, and the Mary Reynolds Babcock Foundation.

“This distribution of Charles’ estate reflects his life-long interests in his family home at Reynolda House, his community through The Winston-Salem Foundation, and the family foundation, the Mary Reynolds Babcock Foundation,” said Gayle Williams, executive director of the Babcock Foundation.

The Babcock Foundation’s mission is to address the root causes of poverty and help move people and places out of poverty across the Southeastern United States. Approximately $12 million will be added to the Babcock Foundation.

Two endowment funds totaling $6 million were established at The Winston-Salem Foundation. One is an unrestricted fund which will be used to support general changing needs of the community. The second is a field of interest fund

FOUNDATION LAUNCHING E-NEWSLETTER

which will support arts and culture in the community. The arts were a passion of Mr. Babcock’s and his charitable legacy reflects this.

“We knew that by creating an unrestricted fund and a field of interest fund at The Winston-Salem Foundation, Charles’ interests would be supported,” noted Ms. Williams.

These funds give The Winston-Salem Foundation the opportunity to respond to changing community needs that ultimately impact the lives of everyone in our community. We trust the community foundation to be a good steward of these funds long into the future.”

“This extremely generous bequest will create two endowments that will allow our board to respond to the community not only next year, but into the future,” said Scott Wierman, president of The Winston-Salem Foundation. “We know that there will be interest from nonprofits that want to access these funds. Nonprofits can access Foundation grant funding through our regular competitive grant process which can be found on the Foundation’s website at www.wsfoundation.org.”

FOUNDATION HAPPENINGS, AND LEGISLATION AND EVENTS THAT COULD IMPACT YOUR CHARITABLE GIVING.

BE SURE YOU ARE INCLUDED IN THE FOUNDATION’S NEW E-NEWSLETTER

CALL US AT 336-725-2382 OR GO ONLINE

MAILING LIST. WE WILL BE SENDING OUT

TO SIGN-UP FOR THIS NEW SERVICE AT

IMPORTANT UPDATES FOR THE COMMUNITY,

WWW.WSFOUNDATION.ORG.

NEW GRANT APPLICATION PROCESS FOR NONPROFITS STARTING NOVEMBER 1 the Foundation began using a new application process for proposals for competitive grants. The Foundation has adjusted its process in an effort to be more accessible to the nonprofit community and to streamline the amount of time nonprofits invest in their grant applications.

Nonprofits may submit a Preliminary Application on the first of any month. The Preliminary Application includes general

information about the applying organization and proposed grant.

Nonprofits will be notified within 30 days as to whether or not their Preliminary Application qualifies them to submit a full application.

To learn more about how to apply for a competitive grant from the Foundation, go to www.wsfoundation.org and click on “grant seekers.”

NOW ACCEPTING STUDENT AID APPLICATIONS THE FOUNDATION IS NOW ACCEPTING NEED-BASED GRANT, SCHOLARSHIP AND LOAN APPLICATIONS FOR COLLEGE STUDENTS FOR THE 2007/2008 ACADEMIC YEAR. FOR MORE INFORMATION ON DEADLINES, PROCESSES, AND APPLICATIONS, PLEASE GO TO

WWW.WSFOUNDATION.ORG AND CLICK ON “STUDENTS”

Foundation Welcomes New Program Officer

SEEKING NOMINATIONS THE WINSTON-SALEM FOUNDATION AWARD THE WINSTON-SALEM FOUNDATION AWARD IS THE FOUNDATION’S HIGHEST HONOR GIVEN TO THOSE WHO HAVE

SANDRA FISHEL-BOOTH joined The Winston-Salem Foundation as a program officer on November 27. In her position as program officer, she will become familiar with issues relevant to the local nonprofit community and review grant proposals to be considered by The Winston-Salem Foundation Committee. She will keep informed on community issues and organizations by attending meetings, consulting with prospective grantees and assisting nonprofit organizations in their interactions with The Winston-Salem Foundation.

Fishel-Booth most recently served as program manager for the National Urban League in New York City where she gained extensive experience in grants management, community and economic development, and organizational strategic planning.

She also worked with the Neighborhood Development Corporation as business development coordinator.

Fishel-Booth holds a Bachelor of Arts in English from Syracuse University and a Masters degree in Urban Policy Analysis and Management from The New School in Manhattan. She, her husband, and two children recently relocated to Advance, NC.

DEMONSTRATED VISIONARY LEADERSHIP AS THEY HAVE WORKED TO IMPROVE THE QUALITY OF LIFE FOR ALL INDIVIDUALS IN OUR GREATER COMMUNITY. THE AWARD COMES WITH A $10,000 GRANT TO A NONPROFIT SELECTED BY THE WINNER.

DEADLINE: FEBRUARY 13, 2007 TO LEARN MORE OR TO MAKE A NOMINATION, GO TO WWW.WSFOUNDATION.ORG

ECHO AWARDS THE WINSTON-SALEM FOUNDATION AND THE ECHO COUNCIL ARE ACCEPTING NOMINATIONS FOR THE 2007 ECHO AWARDS. THESE AWARDS HONOR PEOPLE AND INFORMAL GROUPS WHO ARE BUILDING SOCIAL CAPITAL. WE HOPE TO RECOGNIZE THOSE PEOPLE WHO PERSONIFY THE ECHO LOGO OF BUILDING A STRONGER COMMUNITY BY BUILDING CONNECTIONS AMONG PEOPLE.

DEADLINE: MARCH 16, 2007 TO LEARN MORE OR TO SUBMIT A NOMINATION, GO TO WWW.WSFOUNDATION.ORG

The Power of Unrestricted Giving Memorial Fund. This creative gift to the community, made possiPEOPLE GOING TO THE MOVIES in the 1920s had to wait during each show while a projectionist changed film reels ble by the Goldberg’s willingness to trust The Winston-Salem Foundation with an unrestricted financial donation, affords peoby hand. In Portsmouth, Virginia, audiences enjoyed a sepaple in Winston-Salem an opportunity to enjoy unique and socialrate performance during this technical intermission thanks to ly provocative films. Many of the films are shown in the magnifithe accomplished musical talent of a confident child who cent Stevens Center, where the Cinema Society — in collaborawould take the stage and play his violin for a few minutes. tion with the North Carolina School of the Arts School of This child was Milton Goldberg.

Born in New Jersey, growing up in Virginia and finally mov- Filmmaking — holds its Films on Fourth series. Ask 81-year-old Lorraine Shearer, a local citizen who depends on the Cinema ing to North Carolina in 1938, Milton brought with him to Society for artistic susteWinston-Salem his wife, Vera, and a nance, about the emowell-developed love of the arts. Jobs tional impact of these were scarce as the Depression was taking cinematic offerings and its toll on the country, but Milton her face lights up: “After found work as a smelter for Douglas seeing some of these Battery and eventually started his own films, it makes me want metal alloy company. Always an advoto become a pioneer of cate of spirited entertainment — not to reform!” mention an enthusiastic performer himAll this is thanks to self — Milton later confirmed his comthe enriching possibilimitment to the arts by giving his busities of unrestricted givness property to the North Carolina ing and the generous, School of the Arts to be used as a propMILTON AND VERA GOLDBERG’S UNRESTRICTED FUND ENABLES socially-responsible spirshop and costume storage building.

THE FOUNDATION TO MEET CHANGING COMMUNITY NEEDS its of Vera and Milton But this wasn’t Milton and Vera THROUGH COMPETITIVE GRANTS TO NONPROFITS. Goldberg, whose posiGoldberg’s only generous contribution tive impact on the community came in the form of a city project to the landscape of Winston-Salem. In fact, one successful outthey couldn’t even imagine but which is poignantly consistent come of their philanthropic natures would materialize after their with their creative, open-hearted lives. deaths, coming as a $10,000 grant to the Cinema Society through the unrestricted endowment of the Vera Goldberg

“After seeing some of these films, it makes me want to become a pioneer of reform!”

— L ORRAINE S HEARER

C O M M U N I T Y M AT T E R S [ 2 – 3 ]

CHARITABLE GIVING: NEW OPPORTUNITIES AND NEW RULES THE WINSTON-SALEM FOUNDATION and Womble Carlyle Sandridge & Rice, PLLC, sponsored an informational program for charitable organizations on the new opportunities and new rules for charitable giving contained in the Pension Protection Act of 2006 (the “Act”).

The best new opportunity allows a donor who is age 70-1/2 or older to make a direct distribution from an Individual Retirement Account (IRA) to a charitable organization. Such a gift can be made to any public charity, including the Foundation. Gifts to the Foundation can be made to the Community Fund, the Women’s Fund, scholarship funds and many other funds. The new IRS rules do not permit a direct distribution to a donor advised fund, but a donor can make a restricted gift from an IRA for a particular purpose as long as the donor does not retain the right to give advice. Such a direct gift of up to $100,000 in 2007 can be counted as part of the required minimum distribution from the IRA. The Act defines a donor advised fund to be a fund (i) identified by the contributions of a donor or donors, (ii) owned by a public charity and (iii) with respect to which the donor expects to have advisory privileges for distributions or investments. The new rules provide that donors, donor advisors and family members may not receive any benefit from grants made from a donor advised fund Under the new IRS rules, the Foundation may not make donor advised grants that give the donor/advisor benefits in any form. Thus, requests such as the following can not be paid from a donor advised fund. > Athletic booster clubs when a gift entitles the donor to purchase tickets at a special rate, time, or location > Alumni Associations when donors are entitled to sporting events, performances, parking, etc. > Special events or named society memberships when a gift entitles the donor or their guests to attend the event or receive benefits of value in return > Pledges to fulfill personal commitments

Previously, donors have been allowed to cover the benefit portion of the gifts of the type listed above with a personal check while the charitable portion was paid from a donor advised fund. However, this is no longer allowed, because the IRS interprets the use of the charitable dollars in permitting the donor’s participation as a benefit to the donor. Under the new rules, grants may still be recommended to charitable organizations sponsoring fund raising events if all associated benefits are declined. Or, a grant from a donor advised fund may be recommended as a contribution with the donor purchasing a separate ticket for the event. Such an option is available only if tickets are offered separately from sponsorships. Failure to follow these rules may result in penalties to the donor and to the Foundation.

The Act is the result of increased scrutiny by Congress of charitable giving practices in the nonprofit sector. Some opportunities are targeted to specific types of charitable gifts and some of the rules are targeted to isolated abuses that have been reported in the press. The Foundation has always maintained the highest standards of integrity, conduct, and ethics. However, as with other charities across the country, the Foundation will adjust its practices to comply with the new rules.

RANLET (RAN) S. BELL IS A MEMBER OF THE TAX SECTION AT WOMBLE CARLYLE AND FOCUSES HER WORK ON CHARITABLE GIVING AND TAX EXEMPT ORGANIZATIONS.

EDWARD W. GRIGGS IS A MEMBER OF THE TRUSTS & ESTATES SECTION AT WOMBLE CARLYLE AND FOCUSES HIS WORK ON ESTATE PLANNING, CHARITABLE GIVING AND TAX EXEMPT ORGANIZATIONS.

IF YOU HAVE SPECIFIC QUESTIONS ABOUT YOUR DONOR ADVISED FUND, PLEASE CONTACT A MEMBER OF THE PHILANTHROPIC SERVICES TEAM AT THE FOUNDATION.

Families that Give Together: Realizing the Benefits of Family Philanthropy TRACY GARY, author of Inspired Philanthropy, is no stranger to the challenges and rewards of raising charitable kids. When Gary was old enough to earn an allowance, her parents gave her 25 cents a week in the form of five nickels — three to spend, save, and invest, respectively; one to lend; and one to give away. By emphasizing charity early, says Gary, her parents instilled her with a love of philanthropy.

It stuck with her: Gary went on to launch seventeen nonprofits, including the Women’s Foundation of San Francisco, the oldest and largest philanthropic fund for women in the Western United States. A preeminent donor activist and philanthropic adviser, she has dedicated her life to helping families embrace charitable giving as a way of life. Gary’s message: families who give together can magnify, exponentially, the diverse benefits of philanthropy.

PASSING VALUES TO THE NEXT GENERATION Most Americans recognize the value of family giving.

According to the 2000 Cone/Roper Raising Charitable Children Survey, 85 percent of the respondents said they believe children should be introduced to philanthropy — and that parents play a key role in getting kids involved. Fully 96 percent agreed that parents’ charitable giving and volunteer activities are good ways to teach children about helping others.

Family philanthropy provides a focal point for parents to transmit their values. By engaging several generations, children have an opportunity to learn from an early age that giving

back to their communities is an important endeavor. Giving also offers the opportunity to create a family legacy, ensuring that important values extend beyond parents’ lifetimes.

Gary advises families to begin their charitable giving programs with the creation of a mission statement and a discussion of family values. She recommends that every member of the family participate by listing the issues they hold dear, such as peace, compassion, or equality, and specific areas of interest, such as humanitarian aid, soup kitchens, or civil rights. Areas of focus for family philanthropy often emerge from discussions about the values that family members share, or the values that decision leaders such as parents or grandparents may hold in special favor.

ENGAGING KIDS IN GIVING Family philanthropy can be conducted in a variety of ways, leveraging many types of charitable vehicles. The popular alternatives include family foundations, donor-advised funds, and family giving circles in which members make a collective decision on how to direct charitable dollars. “It’s rare that you’ll find a family that only gives through a single foundation,” says Deborah Brody Hamilton, director of the National Center for Family Philanthropy. “If they have one, it’s usually a sign that they’re giving in all sorts of ways.”

Tracy Gary cites the example of one family that gives away $250,000 annually. The parents make gifts of $100,000 to CONTINUES ON BACK PAGE

NEW GIVING OPPORTUNITY: THE IRA CHARITABLE ROLLOVER AN ESTIMATED $3.6 TRILLION is currently invested in IRAs, and the total continues to grow. For the first time, IRA owners can give a portion of their retirement savings directly to charity without first counting it as income and paying income tax.

For larger estates, a good portion of IRA wealth goes to estate and income taxes of beneficiaries. Experts estimate heirs will receive less than 25% of most IRA assets that pass through estates.

In 2006 and 2007, holders of traditional and Roth IRAs

who are at least 70-1/2 years old can make direct charitable transfers of up to $100,000 per year per taxpayer. As a qualified public charity, The Winston-Salem Foundation can help you execute the transfers to an existing fund or to create a new one. Unfortunately, the law does not allow charitable rollovers to DonorAdvised Funds. You may choose to establish or contribute to an Unrestricted, Field of Interest, Designated or Scholarship fund.

This is the opportunity of a lifetime to make the gift of a lifetime. Learn more at www.wsfoundation.org or have your advisor call us at (336) 725-2382.

C O M M U N I T Y M AT T E R S [ 4 – 5 ]

Dinner Brings Together Current and Future Donors connect with their children’s schools and be engaged in their THE FOUNDATION HOSTED ITS ANNUAL Legacy children’s education. “El Nido” received a grant for staff and Society Dinner on October 4, 2006 at SciWorks. The Legacy materials to teach ESL and literacy classes to parents and chilSociety is comprised of people who have already made gifts dren. Finally, a student shared how receiving a scholarship of $10,000 or more to endowed funds at the Foundation, from the Foundation has enabled him to pursue his college and people who have included gifts to endowed funds at the education at Wake Forest University.

Foundation in their wills or estate plans.

If you are interested in learning more or becoming a part “We see this as an opportunity to thank community of the Legacy Society, please contact Annette Lynch at (336) members for investing in the Foundation, and in the community’s future,” noted Annette Lynch the Foundation’s vice presi- 725-2382 or e-mail giving@wsfoundation.org. dent of philanthropic services. “For the last few years, our Legacy Society members have heard stories directly from people who have benefited from competitive grants from endowed funds.”

This year, a family whose son attends Applied Behavioral Analysis Center shared their touching story. The center received a grant from the Foundation which enabled them to provide a fulltime psychologist ABOVE: SKIP AND MELINDA BROWN, position to better serve their stuCHANDRA AND NAT IRVIN dents. Two women who participate in the “El Nido” program of RIGHT: SKIP WANDERS, LINA WANDERS, YMCA Community Outreach FRANK DRISCOLL, CARMEN ROSSITCH, Services shared how learning to GENE ROSSITCH speak English has helped them

DONOR ADVISORS PARTNER WITH THE WINSTON-SALEM FOUNDATION TO MAKE COMPETITIVE GRANTS THE FOUNDATION IS grateful to those donor advisors who have become Grantmaking Partners by funding portions of or entire grants made by the Foundation through the competitive grants process. Because these individuals chose to partner with the Foundation, an additional $98,600 was awarded in grants to local nonprofits.

We, along with a grateful nonprofit community, thank the following 2006 Grantmaking Partners for their commitment to expanding the Foundation’s grantmaking capacity:

> Elwood & Helen Clinard > Jane Craven > Louis & Marcia Gottlieb > Charlie Hemrick > Eugene Heise

> Deborah Marshall > Mr. & Mrs. Lucian H. Neal > John & Marguerite Taylor > Karl Yena > Anonymous

If you would like to learn more about how you can partner with the Foundation in its competitive grantmaking, please contact Keri Muuss at kmuuss@wsfoundation.org or (336) 725-2382.

message from the president MOVING TOWARDS OUR GOALS IN LATE 2005 the Foundation created a strategic plan to lead us to 2012.

We are excited about our plan and where it will lead us and the community in the coming years. Our plan brings us to a place where we will be able to serve our community at a higher level.

We hope to grow the Foundation’s assets to $400 million, maintaining the Foundation’s place as one of the 40 largest community foundations in the country. We want to be able to increase our capacity to make competitive grants to the nonprofit community to $6 million annually.

We also intend to grow our community leadership capacity, not only in the social capital arena, but other areas of concern for the greater community.

We have been taking steps towards making these goals a reality: > The Foundation hired an executive vice president in 2006 to help lead the internal functions of the Foundation.

> The Foundation underwent an organizational assessment which has resulted in the restructuring of our internal teams. Three teams that regularly interact with the community have changed their names. As of January 2007, our donor services team became the philanthropic services department. Both development and donor services functions will be housed in this department. The grants team and student aid team joined to become the community investment department. > We are continually working towards growing the Foundation’s assets and providing the tools that community members need to help fulfill their charitable intentions. In 2006 the Foundation created a development officer position who is working to cultivate new donors and develop professional advisors’ understanding of the services the Foundation can offer their clients.

We are excited about the opportunities that are ahead of us and look forward to working with you to help make our community a better place for everyone.

— SCOTT WIERMAN, PRESIDENT

WOMEN’S FUND OF WINSTON-SALEM LAUNCHES WITH 217 MEMBERS MEMBERS OF THE EXECUTIVE COMMITTEE of the Women’s Fund of Winston-Salem hoped to have 100 members when they launched their initiative on November 15 at their first annual meeting. Those expectations were far exceeded when they reached 217 members.

“We are overjoyed and overwhelmed by the outpouring of interest from women in our community,” noted fund chair Janie Wilson. “It’s clear that women in our community are passionate about helping other women. We hope to enable their passion to grow by creating a giving vehicle that connects financial resources, and enables women to build relationships in the process.”

The Women’s Fund will now begin the process of connecting its members to subcommittees, planning its first grant cycle, and holding educational events for women in the community. To learn more about the Women’s Fund, visit www.wsfoundation.org/womensfund or call (336) 725-2382 and speak with Keri Muuss.

FRONT ROW (L TO R) EVELYN TERRY, JANIE WILSON, MARTHA LOGEMANN, LYNN EISENBERG, CHEVARA ORRIN; SECOND ROW (L TO R) KERI MUUSS (WSF STAFF), MARY JAMIS, MARGARET SCALES, SARAH HOLTHOUSER, MICHELLE COOK; DAISY RODRIGUEZ (NOT PICTURED)

C O M M U N I T Y M AT T E R S [ 6 – 7 ]

Non-Profit Org. U.S. Postage PAID Winston-Salem, NC Permit No. 406 860 West Fifth Street Winston-Salem, NC 27101-2506 Telephone 336-725-2382 Toll Free 866-227-1209 Fax 336-727-0581 www.wsfoundation.org

FAMILY PHILANTHROPY, CONTINUED FROM PAGE 5

support causes that are important to them. Their two adult children each receive $50,000 to support their own interests through separate vehicles. The family collectively decides where to grant the remaining $50,000.

There are many ways to involve younger family members in philanthropy. Just as Gary received 25 cents to give away, children can be given small sums of money and guided in choosing how to donate it. Young children can also be encouraged to make donations of clothes, shoes, and toys, and travel with their parents to deposit the items at a shelter. In addition, school-age children can be encouraged to volunteer their time.

Teenagers, meanwhile, can be tasked with researching nonprofits, either as potential grantees or as a place to volunteer their time. Some parents give their children an allowance based on their volunteer hours.

USING OUTSIDE RESOURCES As the amount of charitable gifts and family size increases, families may find it helpful to establish an advisory committee — either formally or informally, depending on the giving vehi-

cle they employ — and decide by vote how and when to make charitable gifts. In some cases, advisors such as lawyers, accountants, and nonprofit specialists may participate as board members and help guide philanthropic decision-making. These third-party experts can provide a wealth of guidance, and keep the peace when families disagree on giving priorities. “An outside facilitator can help a family decide on a mission and keep it focused on an area where they will be most effective,” says Gary. Community foundations, she notes, can offer expertise on local nonprofits, where many family giving programs are centered. Families can also benefit from the experience of their peers. “They can speak with other families that have worked through these issues,” says Deborah Brody Hamilton.

Family philanthropy is a rewarding way to bring change to communities. With some careful planning, it can also tighten family bonds, transmit family values to future generations, and create a lasting family legacy.

— BY COLLETTE PARKER, A FREELANCE WRITER BASED IN ATLANTA, COPYRIGHT 2003, USED WITH PERMISSION