DCF Newsletter - Fall 2014

connecting people,

building communities

Fall 2014

DCF Funds Increase by $35M in FY2014 Closes year with $255 million in assets Thanks to a strong market, a hard-working development team, and the wise stewardship of the Delaware Community Foundation’s Investment Committee, the DCF’s charitable assets grew by a fantastic $35 million in Fiscal Year 2014.

The DCF’s investments returned 15.7% in FY14, beating the 14.1% of the policy index used for comparison. Despite the turbulent market volatility of the last quarter century, the DCF has consistently outperformed the policy index and averaged a 7.4% annual return since inception.

During the year, the DCF team opened 121 new funds and closed the year on June 30 with $255 million in assets. Additionally, we were proud to award $16 million in grants and scholarships.

The new funds opened in FY14 will benefit thousands of people in Delaware and around the world, supporting causes ranging from education to the arts to the environment. Much of the money was placed in permanently endowed funds, which provide a permanent source of dollars for charitable causes.

“When people make charitable gifts, they want to know that they are making an impact,” DCF President and CEO Fred C. Sears said. “At the DCF, we have the knowledge to help donors give in ways that make the biggest difference in advancing the causes they care about.”

News from the Delaware Community Foundation

Leaving a Legacy of Compassion through Planned Giving

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or Rick Rowland, the work of the Ronald McDonald House of Delaware is deeply personal.

“Our family lost a son in 1986, and I know how important it is to have a support network in place to help cope with these situations,” Rick said. “By offering temporary housing and emotional care, the Ronald McDonald House provides that support for families whose children are sick.” ~ Continued on page 3

Delaware Community Foundation Officers & Executive Committee Marilyn Rushworth Hayward, Chair Thomas L. Sager, JD, Vice Chair Kelly Firment, Member-at-Large Steve Fowle, Treasurer Lynn Adams Kokjohn, SCAC Chairman Hon. Stephen P. Lamb, Secretary John Paradee, Esq., KCAC Chairman Thomas J. Shopa, Immediate Past Chairman

Directors Doneene Keemer Damon Bill Dugdale Martha S. Gilman Daryl A. Graham Jennings Hastings John C. Hawkins Nancy Karibjanian Rob MacGovern Kathleen McDonough Janice E. Nevin

Donald W. Nicholson Jr. Vice Chancellor John Noble Laurisa S. Schutt Joan L. Sharp Valerie J. Sill David Singleton Gary Stockbridge Cindy L. Szabo, Esq. Michelle A. Taylor Michele Whetzel

Connecting People, Building Communities is published by the Delaware Community Foundation Fred C. Sears II, President and CEO Allison Taylor Levine, APR, Editor Hughes Design Inc., Design www.delcf.org www.facebook.com/ DelawareCommunityFoundation Twitter: @DelCommunity Wilmington Office: Community Service Building 100 W. 10th Street, Suite 115 Wilmington, DE 19801 P: 302.571.8004 | F: 302.571.1553 Central Delaware Office: 101 W. Loockerman St., Suite 2C Dover, DE 19904 P: 302.724.7552 | F: 302.856.4367 Southern Delaware Office: 36 The Circle Georgetown, DE 19947 P: 302.856.4393 | F: 302.856.4367 The Delaware Community Foundation manages charitable funds for individuals, families, businesses, and organizations, and distributes income from the funds as grants to humanitarian, educational, health and cultural entities throughout the First State. With approximately 1,200 funds, more than $255 million in assets and annual grants of about $13 million, the Foundation provides a lasting source of charitable funding to benefit Delawareans today and for generations to come. Since 1986, the Foundation has been connecting people who care with the causes they care about, helping to make Delaware a better place to live and work.

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This year, the DCF has taken the first steps on a journey of growth and transformation.

Since 1986, the DCF has focused on the critical work of helping individuals and organizations create charitable accounts and distribute grants to nonprofits.

But with $255 million in assets, an army of allies, and deep roots throughout Delaware, we believe the DCF can do much more to address our community’s evolving needs and serve our philanthropically minded clients.

For the past year, we have been listening to friends and fundholders, public- and private-sector leaders, and many others who care about Delaware. The results are clear: We have many impressive organizations working for the good of the community, but the state will benefit from greater harmonization of these efforts.

Therefore, our Board of Directors has decided that the DCF must step up.

That is why, over the next year, the DCF will become a center for community knowledge in Delaware. We plan to serve as a resource for information, insight and expertise, as well as a builder of partnerships and a convener of resources.

Fred C. Sears II and Marilyn R. Hayward

By building on our existing expertise and knowledge of community needs and philanthropic resources, we believe that we can better assist both the community and our fundholders to achieve greater impact.

As this pivotal year unfolds, we will be able to provide greater details, and we will request your insight and support as we grow our infrastructure to take on these new activities.

We look forward to an exciting year as we increase our community impact and strengthen our role as a philanthropic leader in Delaware.

Yours, Fred C. Sears II, President and CEO

Marilyn R. Hayward, Chair

Leaving a Legacy of Compassion

New Board Leadership

~ Continued from cover

Rick joined the Ronald McDonald House of Delaware board in 2008 and served a term as board chair. When his term expired in May, he decided to give the organization a very special parting gift by establishing the Rowland Family Charitable

This July, the Delaware Community Foundation Board of Directors welcomed five new officers: Marilyn Hayward Chair, principal of Hayward & Associates.

Remainder Unitrust at the Delaware Community Foundation.

A longtime advocate of planned giving, Rick created the fund in the hope of inspiring others to include the Ronald McDonald House of Delaware in their wills.

Tom Sager Vice Chair, retired general counsel, DuPont Company.

“As board chair, Rick did a lot to start a dialogue about planned giving,” said Pam Cornforth, Ronald McDonald House of Delaware president and CEO. “He has been an advocate of the Legacy of Hope Society, and this fund is the perfect going away

Kelly Firment Member-at-Large, small business credit card product/strategy executive.

gift as he ends his term on the board.”

Rick made this significant gift to the Ronald McDonald House

Lynn Adams Kokjohn SCAC Chair, co-owner, Fauxbulous FX, Inc.

of Delaware under the IRS’ charitable remainder rules.

Upon creating a charitable remainder trust, donors receive an immediate tax deduction, as well as a regular income based on the interest the fund generates for the rest of their lives.

After the donor’s death, the money left in the fund goes to the

John Paradee KCAC Chair, director, Prickett, Jones & Elliott.

charitable organization the donor designated.

To learn more about charitable remainder trusts, contact David Fleming, dfleming@delcf.org or 302.504.5224.

Four new members also joined the Board in July: Bill Dugdale, Daryl Graham, Kathleen Furey McDonough, and Michele Whetzel.

Annual Report Correction: We inadvertently omitted the YWCA of Delaware’s fund from our list of nonprofit funds and listed the Leslie Stanford Fund for the YWCA under the wrong organization. We also omitted the Anthony & Catherine Fusco Foundation from the list of 2014 Business Partners. We apologize and thank the YWCA, Ms. Stanford and the Fusco Foundation for their generosity.

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Building Giving Communities Students Combine Science and Entrepreneurship to Monitor Pesticides in their Community

The program began as a summer internship at ANP Technologies Inc., where the students researched pesticides and their capacity to contaminate water and food supplies. The students then presented their findings at both a Delaware biotech meeting and at the Delaware Chinese Festival.

“My summer study has opened a door for me to the real world,” said Richard Wang, a STEPS member and Charter School of Wilmington senior. “I learned firsthand how difficult it was to sell a product face-to-face. I was also Left to right: Vickram Rajendran (Charter School of Wilmington), Antony Ni (Duke University), Xin Liu (University of Delaware), Richard Wang (Charter School of Wilmington), Evan Xue (Boston College), Emily Yin (Tower Hill), Kasey Huang (Barnard College), Nancy Gutzwiller (Jessup Elementary, Md.), Dr. Ray Yin

What started out as a small-scale science project has the possibility of impacting the health and wellness of the entire nation.

Through the STEPS (Students Teaching Entrepreneurial Project Skills) program, a new Delaware Community Foundation fundholder, a group of middle school, high school, and college students have transformed their research on pesticide contamination into an expansive community knowledge network with huge entrepreneurial potential.

“STEPS thrives on the concept that students learn best from their peers,” said Dr. Ray Yin, a STEPS advisor and president of ANP Technologies Inc. in Newark. “Through self-study and active learning, the world of innovation and entrepreneurship is opened to young students.”

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exposed to the potential for a creative idea to become a booming business.”

The students then continued to investigate practical applications for their research, learning that consumers are concerned about possible food contamination, but don’t want to go through cumbersome testing processes.

Based on this information, the students created the Pesticide Safety Monitoring Network, which is at www.psmn.org. The students test produce in various communities for pesticides and upload their results to the database, so the general public can see where and when influxes of pesticides occur in their communities.

Next, the students plan to create a network of student researchers across the country to help populate the database by testing produce in their communities and uploading information to the database.

Giving Non-Cash Assets: Thinking Outside the Checkbook Adly and Sheila Gorrafa wanted to start making charitable gifts they considered meaningful right away – while they can enjoy seeing their impact – but that could have meant cutting into their retirement savings.

Not a good plan.

But what about that beach condo they used to drive to regularly? As they get older, they find themselves driving down less and less frequently.

Solution? Donate the condo to start the Gorrafa Family Charitable Fund at the Delaware Community Foundation.

Donating real estate to the DCF is easy, provides for a substantial charitable gift, and often results in significant tax savings. Rather than being taxed on the capital gains (the amount of the sale price minus the owner’s original cost), donors typically can deduct the full appraised value of the property. That is strategic philanthropy at its best.

The Gorrafas are generous and thoughtful people who carefully considered the legacy they want to leave through their philanthropy.

Through their donor advised fund, the Gorrafas are able to customize their gift plans, so that some nonprofit organizations receive very welcome annual gifts, while others receive potentially transformative bequests.

Don’t have a beach house to donate? There are many other ways of starting your charitable fund at the DCF, including many that don’t involve writing a big check.

Many generous people donate stocks, life insurance policies, works of art, and more. Some create annuity funds that provide income for life, while others include charitable giving in their estate plans.

As with the Gorrafas, the DCF works with each of our clients to help find the best way to achieve donors’ philanthropic goals, from finding the right type of fund to helping donors learn about our community’s charitable needs.

Adly and Sheila Gorrafa

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Investment Report

By Rob MacGovern Written Nov. 19, 2014 After a huge rally in 2013, equity markets were priced for a robust recovery in profits and economic growth this year, but the Ebola crisis and other global issues caused a 7% selloff in U.S. large cap stocks and 14% selloff in nonU.S. and U.S. small cap to occur at the end of the September quarter. Equity markets improved significantly in the first half of the current quarter, especially in the U.S., where large cap equities set a new all-time high in mid-November.

The U.S. economy is strong despite weak global growth.

U.S. equities are impacted by developments elsewhere in the world. Declining commodity prices should eventually help consumer spending. The drop in oil prices should boost consumer spending and economic growth in the coming

Next Gen Awards $40,600 Grants Statewide The Next Generation’s northern and southern Delaware chapters recently awarded a total of $40,600 in grants throughout the First State.

In New Castle County, Next Gen North awarded $25,600 to support science, technology, engineering and math (STEM) education. Next Gen South awarded $15,000 to three organizations providing mental health services in Kent and Sussex County.

The Next Generation, created by the DCF in 2004, is a group of 20- and 30-something philanthropists. In 2012, the group expanded to two chapters – one upstate and one downstate. Both chapters select a focus area for their grantmaking, solicit and evaluate applications, conduct site visits, and allocate grants to worthy nonprofits each year.

In addition to fundraising, the young philanthropists learn what it takes to be effective nonprofit board members.

For more information about Next Gen, visit www.delcf.org/NextGen.

year. Meanwhile inflation is projected to show just a slight rise after declining in August. Home sales rose to a 6 ½ year high in August after slipping slightly in July.

While it is impossible to play down the potential risks that

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still exist, the future positive U.S. economy figures should be the focus of investors in the coming months, but there is potential for more up and down days on Wall Street.

Market corrections like this are common, but the DCF portfolio is structured to mitigate such fluctuations.

Next Gen South Children & Families First’s Seaford House

$5,000

Delaware Guidance Services for Children and Youth

$5,000

Delaware State University Project Resilience

$5,000

The Delaware Community Foundation Investment Portfolio posted a negative 2.8% for the quarter ending Sept. 30,

Next Gen North

2014, compared to a negative 2.5% for the policy index

Kalmar Nyckel Foundation

by which we rate our performance. Based on the October results, the longer term outcome represented by the rolling five-year annualized return continues to show strong results for both absolute and relative performance (8.4% vs. the policy index return of 7.2%).

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Latin American Community Center

$4,000 $10,000

St. Michael’s School & Nursery

$5,000

First State Robotics

$6,600

Fund for Women Presents First Founders Award to Susan Sherk, Lifelong Public Servant and Community Leader For Susan Dunn Sherk, the decision to dedicate her life to public service never really felt like much of a decision.

“When you feel you can contribute,” she said, “you just do it.”

“If you can impact the life of a child, especially before the age of 9, the positive results are substantial,” said Susan, who serves on the board and leads fundraising efforts for St. Michael’s School and Nursery.

Susan’s dedication to others influences everyone around her, so it is not surprising that service is a family affair. Her husband Wil is a fellow Founder, and both of her daughters work for nonprofits.

For Susan, it’s all about making an impact.

This motto has led her to work in both government and nonprofits, devoting her talents and leadership skills to support Susan Dunn Sherk with her granddaughter her community and Lily Buis the lives of those less fortunate. For her lifelong commitment to service and philanthropy, the Fund for Women honored Susan with the 2014 First Founders Award in October.

Following a 30-year career working with the U.S. Congress and finishing at the Small Business Administration in Washington, D.C., Susan began her fundraising career as a major gifts officer for Sarah Lawrence College.

When Susan moved to Delaware in 1999, she served as the grants manager and interim executive director of the Delaware Community Foundation, and subsequently as development director for the Delaware Symphony Orchestra.

Susan also served as chair of the Fund for Women board 2006-2008 and now is a member of the Fund’s “Next Million” Campaign Committee.

“When I think of community leaders committed to philanthropy in Delaware, Susan is on the short list,” said DCF President and CEO Fred Sears. We all benefit from Susan’s commitment and untiring efforts to help make our state a better place to live and work.”

“Susan is constantly working on finding ways to make other people’s lives better,” Fund for Women Chair Michele Whetzel said. “Last winter, she had a collection barrel in her driveway to support a food drive for the Food Bank of Delaware. She never stops thinking about others.”

Susan also chairs the Christ Church Christiana Hundred Outreach Committee, which manages the church’s grantmaking process and various collection projects, including school supplies for local students and sporting equipment for children in the Dominican Republic.

Nonprofits that support education, especially for low-income children, are close to Susan’s heart.

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New Funds

New Fund Provides Capital for NonproďŹ ts ĂœÂˆĂŒÂ…ĂŠ-ÂœÂ?Ă•ĂŒÂˆÂœÂ˜ĂƒĂŠvÂœĂ€ĂŠÂş,i>Â?‡7ÂœĂ€Â?`Ê*Ă€ÂœLÂ?iÂ“Ăƒ

New Funds: July 1-Nov. 5, 2014

American Planning Association — Delaware Chapter Fund Annies’ Legacies Fund Aquila Foundation Fund Bob and Carol Baker Scholarship Fund Beat The Streets Before the Streets Beat You Fund Bethel AME Church Education Endowment Fund Breaking For The Cure Fund Crop Foundation Fund Delaware Workforce Investment Career Scholarship Fund Delaware Youth Chess Organization Delaware All State Theatre (DAST) Fund Dog Pound Boxing Club Fund Chris M. Fisher and Michael E. Peterson Foundation Fund Gorrafa Family Charitable Fund Central Delaware Habitat for Humanity Fund Lee Hirsch Scholarship Fund for Milford High School Helen Macklin Holleger Visual Arts Endowment Fund Winifred M. Koffenberger Fund

For the first project funded by the SIUD Social Impact Fund, four Health For America fellows are spending a year working with Christiana Care Health System to identify opportunities to improve treatment of chronic heart failure. (Photos courtesy of Christiana Care Health System.)

NonproďŹ ts with ideas for entrepreneurial, economically viable projects to beneďŹ t Delaware now have a source of start-up funding through the new Start It Up Delaware Social Impact Fund at the Delaware Community Foundation.

Middletown Active Senior Center Fund Mount Olivet Methodist Church Seller’s Memorial Fund Mount Olivet Methodist Church Memorial Prayer Garden Fund NCC Paramedics 5K Fund The Nichols Family Memorial Fund The Public Relations Society of America — Delaware Chapter Charitable Fund Carolyn Smith CRUT Start It Up Delaware Social Impact Fund STEPS Fund CENDEL FTD Family Support Fund We Stand Up Fund Ernest E. Woodacre Fund

To discuss opening a fund or planning your legacy gift at the DCF, contact David Fleming at 302.504.5224 or deming@delcf.org.

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Business catalyst company Start It Up Delaware Inc. (SIUD) and Discover Bank started the fund at the DCF, with Discover Bank providing an initial $250,000 capital infusion AND 6ERIZON CONTRIBUTING AN ADDITIONAL Several other corporations and foundations are reviewing the concept and the opportunity for future funding.

The new fund will help nonproďŹ ts launch projects or products that will result in self-sustaining income streams. The nonproďŹ ts will then be able to use that income to further their charitable work. All projects must beneďŹ t the state of Delaware, but may include organizations from other areas.

SIUD Co-Founder and Chairman Jon Brilliant will direct the fund with guidance from an expert volunteer investment committee. “This unique fund will simultaneously help nonproďŹ ts solve real-world community-based problems, increase their own self-sufďŹ ciency, and establish itself as a self-sustaining model for innovation,â€? Jon said.

The SIUD Social Impact Fund will provide equity investments in the form of grants to help nonprofits launch their projects. The nonprofit will be required to accept a volunteer board member to provide guidance related to the project and to ensure the board and management are focused on achieving the expected results.

If and when the project is successful and delivers agreed-upon results, the nonprofit or project guarantor will donate the amount of the original investment plus a negotiated return back into the fund. That will enable the money to be “recycled” to underwrite additional social ventures and allow for growth of the fund. If a project is unsuccessful, the nonprofit may not be required to return the funds as would be the case with traditional equity investing.

The SIUD Social Impact Fund is similar to social impact bonds, which have been increasing in popularity around the world since first created in the United Kingdom in 2010. In the United States, Massachusetts, New York and Utah have created social impact bond programs. The SIUD fund, however, is unique in that the invested money and its return are paid back into the nonprofit fund to be used for additional nonprofit work.

“This unique fund will simultaneously help nonprofits solve real-world communitybased problems, increase their own selfsufficiency, and establish itself as a self-

The first grantee, the Health for America (HFA) Fellowship program, is partnering with Christiana Care Health System.

The SIUD Social Impact Fund empowers four HFA Fellows to spend one year working with physicians, thought leaders and community members to identify areas that need improvement within the treatment of chronic heart failure.

sustaining model for innovation,” said SIUD Co-Founder and Chairman Jon Brilliant.

“This is the perfect example of how the Delaware Community Foundation facilitates creative public-private collaborations that help nonprofit organizations maximize their service to the community and maximize the impact of philanthropists’ charitable giving,” said DCF President and CEO Fred C. Sears.

SIUD has a pipeline of Delaware nonprofits developing innovative and promising projects to be considered for future funding, ranging from a statewide job placement project to an agricultural project in Sussex County, Jon said.

Those interested in supporting the SIUD Social Impact Fund and nonprofits wishing to apply for SIUD funding should contact Jon Brilliant at jon@startitupdelaware.org.

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Friends Campaign:

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We at the DCF have launched a strategic initiative to increase our positive community impact.

Your support now will help make that growth possible.

The DCF has, for years, increasingly provided important leadership activities in the philanthropic community – facilitating collaborations among nonprofits, engaging young people in charitable giving, and building charitable resources to address Delaware’s needs, today and tomorrow.

As we prepare to expand those activities, we hope we can count on your continued support through our annual Friends campaign.

During this strategically critical year, the DCF is investing in its infrastructure – expanding our team, upgrading our technology, and building our capacity to identify needs and measure progress. Now, more than ever before, the return on dollars invested in the DCF will be significant and obvious.

Thank you for considering including us in your charitable giving this holiday season. Give online securely at www.delcf.org/friends or by check mailed to Delaware Community Foundation, PO Box 1636, Wilmington, DE 19899.

Sincerely,

Tom Sager 2014 Friends Campaign Chairman

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Meeting Community Needs -V >ÀÃ «ÃÊ Û> >L it

Students are invited to apply for scholarships available through the Delaware Community Foundation. The deadline to apply is April 1, 2015.

The DCF is home to dozens of scholarships, and students can apply for most with a single online application, available at www.delcf.org/apply.

For details about the scholarships available, including criteria and amounts, download the Delaware Community Foundation Scholarship Compendium, Scholarships to be Awarded for the 2015-2016 School Year at www.delcf.org/scholarships.

The online application system guides applicants through a series of questions to determine which scholarships they may be eligible for. Students are automatically considered for every scholarship for which they meet the minimum criteria.

There is no cap on the number of scholarships or amount students may receive. Funding from many of the scholarships may be applied to the costs of textbooks and fees, in addition to tuition. Some are one-time awards, and others are renewable.

Good luck!

$400,000 in Scholarships Apply/information: www.delcf.org/scholarships Deadline: April 1, 2015

this holiday season

Give a Gift that Lasts Forever Despite his untimely dea th in August, restaura teur/philanthropist Matt Haley will continu e to give generously, fore ver, through his Global Dela ware Fund at the Delaware Community Foundation.

By creating an endowe d fund, Matt is giving Delaware and the world a gift that will outlast and outs hine any festive tie or holiday swe ater.

To make a real impact this holiday season, create an end owed fund for your loved ones to use as a source of charitable givin g.

We bet theyâ&#x20AC;&#x2122;ll love it â&#x20AC;&#x201D;

fore ver.

To crea te you r fun d at the DCF, con tact Dav id Flem ing at dfle min g@d elcf .org or 302 .504 .522 2 | ww w.d elcf .org

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Non-Profit Org.

P.O. Box 1636 Wilmington, DE 19899

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Professional advisors can continue to manage clients’ assets even after they’re transferred to a charitable fund at the DCF through our Charitable Partners Program.

Help your clients achieve their charitable and financial goals by partnering with us while maintaining your relationship. The DCF handles all administrative details related to the fund, and your client enjoys efficient, effective charitable giving, as well as immediate tax advantages.

For more information, contact David W. Fleming, dfleming@delcf.org or 302.504.5224.