Communities Foundation of Texas Annual Report 2017

(from left) Dan Tatsch, North Texas Giving Day donor Kaitlin Guthrow, North Texas Giving Day Director of Sponsorships and Nonprofit Relations Dave Scullin, CFT President and CEO

MARTHA JACKSON G I V E W I S E LY G R A D UAT E A N D C F T F U N D H O L D E R

“The loss of my nephew, Chandler, who lived life fully awake, moved me to find a way to carry on his legacy.” — Martha Jackson On the 10th anniversary of her nephew’s passing, Martha found a way to honor him. She set up a donor-advised fund through CFT to help children and youth develop self confidence through art and athletics. But she didn’t stop there. After taking CFT’s GiveWisely class and visiting Family Gateway, which supports homeless families, Martha was inspired to roll up her sleeves and volunteer.

She started helping with the after-school program at Family Gateway, and after learning more from the children about other programs they love, she became a sponsor of Kids’ University and Camp Bravo!, summer camps at Rainbow Days. Now she has included CFT in her estate plan, where her generosity—and the children who benefit from it—can continue to thrive beyond her lifetime.

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COT TON BOWL FOUNDATION FUND AT CF T FRIENDS OF BARACK OBAMA MALE LEADERSHIP ACADEMY

“Visiting a college or university is fairly common in middle or upper middle-class homes, but we believe every student should have that opportunity.”

— Jay McAuley, Chairman of the Cotton Bowl Foundation

A year ago, the Cotton Bowl Foundation came to CFT to help define their giving strategy. After they worked with our staff and decided to focus some of their grantmaking on college and career access for underserved youth, we introduced them to Barack Obama Male Leadership Academy, a Dallas ISD magnet school whose student body is composed of high-achieving, underserved young men. The school’s mission is to shape these students into effective leaders by providing them with an academically rigorous, character-based education that prepares them for college.

Thanks to a CFT-facilitated grant from the Cotton Bowl Foundation, these young men will not only be college-ready but will be further motivated to continue their education by having the chance to visit college campuses before graduation. Giving these students a taste of the college experience is a true game changer. It will help the academy maintain its 100 percent college acceptance and matriculation rates. It’s also an investment in our community’s future, where all sides win.

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RHSB CFT BUSINESS FUND HOLDER AND FR E E D OM DAY VO LU NTE E R S

“CFT is a valuable and strategic partner that helps RHSB make a meaning ful impact and contribution to the community where we live, work and raise our families.”

— Doug Jones, Senior Vice President and Principal at RHSB

RHSB Insurance is a CFT business-advised fund holder and longtime member of CFT’s business engagement network that connects companies with nonprofits to make a positive community impact. CFT finds the most strategic alliances for businesses and nonprofits to maximize the contributions of good corporate citizens.

During CFT’s 2017 Freedom Day event, RHSB volunteers packed lunches for children served by Hunger Busters, a charity dedicated to feeding food-insecure kids with a much-needed third meal of the day. RHSB employees were grateful to take part in the event, which helped satisfy their appetite for hands-on community service.

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DAN AND REBECC A TATSCH, RECORD -HOLDING N O R TH TE X A S G I V I N G DAY D O N O R S

“We believe that everyone who suits up on game day deserves something.”

— Dan Tatsch, commenting on North Texas Giving Day

CFT’s North Texas Giving Day is the annual, community-wide fundraising event that has pumped more than $195 million into North Texas charities over the last eight years. On 2017’s North Texas Giving Day, more than $39 million was donated to 2,723 nonprofits through 137,638 donations, setting a national record. Dan and Rebecca Tatsch themselves broke the record for the number of individual donations. They gave to 296 organizations.

For several years, the Tatsches have given to many nonprofits on North Texas Giving Day. Explaining their strategy of donating to so many charities, Dan said, “Our passion is animal rescue. We know from firsthand experience that it’s through small groups that animal rescue happens.

On North Texas Giving Day, we saw a lot of these groups participating, and we know they’re working really hard.” For the recipients and the animals they care for, that kind of generosity makes for a very large number of best friends.

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GRACE JO, NORTH KOREAN REFUGEE AND SCHOLARSHIP RECIPIENT

“I believe that education has the power to transform societies.” — Grace Jo One of the goals of the George W. Bush Institute is to improve the human condition in North Korea, where 24 million people live under a brutal dictator. When the Bush Institute wanted to establish a scholarship fund to support North Korean refugees, it came to CFT to administer the program by handling the scholarship applications, screening and grants.

Grace Jo is a recipient of the North Korean Freedom Scholarship.

After seeing several family members starve to death, she escaped North Korea and ultimately came to the U.S. Now she is pursuing a college degree and hopes to become a dentist. “Obtaining an education and becoming a professional is the way for me to stabilize my family and eventually serve the people of North Korea,” she said. CFT is honored to help empower students like Grace Jo through freedom and education.

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Dave Scullin celebrating North Texas Giving Day 2017 at NorthPark Center with his grandson, Henry. Henry’s positive experience at a hospital that CFT supports was part of Dave’s inspiration for joining CFT.

LETTER FROM THE PRESIDENT

Dear

F R I EN DS, What a great first year it has been for me at Communities Foundation of Texas! Every day I am blessed to feel firsthand the collective passion of our donors, partners, trustees and employees. If you were to catch a glimpse inside of our vibrant organization, you would observe a highly qualified and inspired staff working together with passion and collaboration, building the spirit of giving with our donor community that loves North Texas. You would be surrounded by the support of our exceptional trustee leaders, who are mindful of the most pressing needs in our community. Collectively, we are dedicated to making an enduring impact to build a thriving community for all.

We have much work to do. North Texas continues its vibrant growth, yet many challenges remain and far too many people are not thriving. I am heartened, though, by the wonderful response of North Texans toward supporting hurricane victims and creating yet another record year of generosity on North Texas Giving Day. There is certainly a will in our community to help others; we simply have to foster that spirit and amplify our collective efforts to create the way forward. You can count on us to continue our work with laser focus toward making tomorrow better for all. Because we’ve seen that where giving thrives, communities thrive, too.

This year’s annual report reflects the spirit I just described.

I hope you are inspired by the rich stories featured—Martha Jackson’s legacy, the Cotton Bowl Foundation’s support of Barack Obama Male Leadership Academy, RHSB’s Freedom Day volunteer efforts, and the Tatsch family’s record 296 gifts on North Texas Giving Day—as well as our financial results and Educate Texas program highlights.

DAVE SCULLIN

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THRIVES

PRESIDENT AND CEO

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FINANCIAL HIGHLIGHTS Fiscal year ending June 30, 2017

’10

$134

’15

$98 $86

’12

’13

’16

’17

’13

’14

’15

’16

’17

2017 COMPOSITION OF ASSETS

2017 COMPOSITION OF GIF TS

(in millions, unaudited)

(in millions, unaudited)

W.W. Caruth, Jr. Foundation

397.3

Donor- Advised Funds

36.7

Donor- Advised Funds

331.5

Nonprof it Agency Funds

32.5

Desig nated Funds

104.6

Desig nated Funds

19.5

Discretionar y Funds

99.6

W.W. Car uth, Jr. Foundation

4.9

Othe r Suppor ting O rganizations

88.0

Discretionar y Funds

1.4

Nonprof it Agency Funds

35.3

Othe r

0.3

Scholarship Funds

17.6

G ene ral Ope rating Funds

15.3

Char itable R emainde r Tr usts TOTA L A S S E T S

14

’14

$853

$769 ’11

$95

’09

$93

’08

$705

$651

$754

$801 ’07

$1,099

(in millions, unaudited)

$1,027

TOTA L G I F T S R EC E I V E D

$1,067

ASSETS (in millions, unaudited)

$1,065

GIF TS

$982

ASSETS

9.7 $1,098.9

TOTA L A S S E T S

$95.3

GRANTS

INVES TMENT M A N AG ERS Aberdeen Asset Management PLC BlackRock BNY Mellon Cash Investment Strategies

2017 GRANTS DISTRIBUTION

Brookfield Investment Management Burgundy Asset Management Ltd.

22%

Health and Scientif ic Research

26%

Education

Carlson Capital, LP Cushing Asset Management David Leone & Partners Investment Co. LLP Disciplined Growth Investors, Inc. HHR Asset Management, LLC Lazard Asset Management

3%

14%

Youth and Recreation

Housing and Human Services

7%

Marble Arch Investments Pzena Investment Management, LLC State Street Global Advisors Trinity Street Asset Management

Arts and Culture

Western Asset Management Company

10%

9%

Other

Community Improvement

9%

Religion

White Elm Capital LLC William Blair & Company, LLC CUS TODIAN BNY Mellon

$109

$106

TOTA L G R A N T S PA I D

’17

$109

$106

$102

$102

$101

$101

’13

’13

INDEPENDENT AUDITOR Moss Adams

TOTA L G R A N T S

I N V E S T M E N T C O N S U LTA N T (in millions, unaudit Cambridge Associates, LLC

’14

’14

’15

’15

’16

’16

’17

’17

For a listing of named funds at CFT and to review the annual independent audit report and the related audited consolidated financial statements with footnotes, please visit CFTexas.org.

THRIVES

’16

(in millions, unaudited)

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’15

L E G A L C O U N S E LT O T A L G I F T S R E C I E V E D Thompson & Knight

$76

$76

$95

$93

$98

(in millions, unaudited)

$76

15

$101

W.W. CARUTH, JR. FOUNDATION at CF T

where giving creates a lasting

 L EG AC Y

The W.W. Caruth, Jr. Foundation at CFT represents the largest endowment in our portfolio. Every year, we continue the legacy of William Walter Caruth, Jr.’s philanthropic goals through strategic grantmaking to support frontier-advancing projects in public safety, education, and scientific and medical research.

Meadows Mental Health Policy Institute PUBLIC SAFETY

$7MM

$7 million was granted to support the implementation of a comprehensive plan designed to divert individuals with severe mental illness from the criminal justice system to appropriate behavioral healthcare. The goal is to reduce incarceration and recidivism rates in Dallas County while getting people the help they need.

The University of Texas at Dallas SCIENTIFIC AND MEDICAL RESEARCH

$2MM

$2 million was granted to the Texas Biomedical Device Center at The University of Texas at Dallas. Funding is being used to test an affordable, injectable medical device that stimulates specific regions of the brain to treat various neurological disorders and conditions, including spinal cord injuries.

Year Up EDUC ATION

$1.5MM

$1.5 million was granted to launch Year Up in Dallas to equip low-income young adults with market-specific technical and professional skills. In partnership with the Dallas County Community College District, Year Up is a national nonprofit with a proven track record of enabling young adults to move into professional careers through classroom instruction and corporate internships.

Since its inception, cumulative grants by the W.W. Caruth, Jr. Foundation at CFT total more than $186 16

CF T ’ S NORTH TE X A S G IVING DAY

Nonprofit organizations and supporters celebrated the day of giving with Donation Station events in Dallas, Arlington, Denton, Fort Worth and McKinney, featuring prizes, performances and concerts. (pictured: Dallas event at NorthPark Center)

North Texas Giving Day

GROWS CFT’s ninth annual North Texas Giving Day raised another record-setting amount, wrapping the 18-hour day at $39 million and surpassing last year’s total of $37 million. Through nine single-day events since 2009, $195 million has been donated to area nonprofits.

While the numbers are impressive and the event continues to set national records, what is equally impressive is the culture of giving that is growing across North Texas.

a record

$39.3MM DONATED

for

2,723

NONPROFITS

through

137.6K GIFTS

EDUCATE TEX AS at CF T

where giving

 EDUCATES TEXAS Texas is a big state, and for more than a decade, Educate Texas, an initiative of Communities Foundation of Texas, has partnered with public and private entities in a big way to achieve one big goal: large-scale change that will transform the Texas public and higher education systems so that every student is successful in school, in the workforce and in life.

To support this goal, Educate Texas identifies innovative, evidence-based strategies across four key impact areas: College and Career Readiness, Higher Education, Effective Teaching and Collective Impact.

H I G H E R E D U C AT I O N

5 REGIONS ACROSS the STATE

Five Texas regions share a collective goal of increasing the number of students who will earn STEM credentials that align to high-demand, local industry workforce needs. To date, this effort has benefited nearly 10,000 students and more than 360 higher education faculty and public school teachers.

Regions and industries include:

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DALLAS Computer Science, Information Technology

SOUTH TEXAS Healthcare Sciences, Information Technology

EL PASO Women in Engineering

HOUSTON Petrochemicals

WEST TEXAS Energy, Healthcare and Manufacturing

E F F E C T I V E T E AC H I N G

From

AUSTIN

Advocacy efforts during the 85th legislative session will improve the preparation of 30,000 new teachers annually across the state.

CO L L E G E A N D C A R E E R R E A D I N E S S

In

LANCASTER

A STEM-focused collaboration with the district’s leadership, campuses and community has yielded strong gains for its more than 450 teachers and nearly 8,000 economically disadvantaged students.

In

HOUSTON

Pasadena ISD, one of five grantees across Texas participating in the Raising Blended Learners initiative, is integrating traditional instruction and online resources to personalize learning and improve student achievement, targeting a goal to impact more than 30,000 students annually.

CO L L E C T I V E I M PAC T

RGV FOCUS, a Collective Impact initiative across four counties, 37 ISDs and four public higher education institutions, is bringing together education, nonprofit and workforce sectors with the goal of long-term social transformation that will place the region’s more than 420,000 students on a path to meaningful careers. A major milestone toward this goal, FAFSA completion (Free Application for Federal Student Aid), was achieved and exceeded in 2017 with more than 15,000 high school seniors completing the student aid forms.

Featured are examples of 2016–2017 programs in which Educate Texas is involved.

THRIVES

RIO GRANDE VALLEY

where g iving

In the

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WORKING FA MILIES SUCCESS NET WORK of NORTH TEX AS at CF T

where giving

E MP OWERS The Working Families Success Network of North Texas (WFSN) is a program of Communities Foundation of Texas that seeks to improve the economic stability of working families by helping the North Texas region understand the issues and challenges this population faces.

Established in 2014, the network powered by Communities Foundation of Texas includes nine community-based organizations from the Dallas/Fort Worth region who are committed to helping families achieve lasting economic outcomes, including increased income, improved credit scores, a reduction of debt, and the creation of wealth for their clients and their communities.

The WFSN model includes a bundled set of three core elements:

EMPLOY MENT SERVI CES

F INANCI AL COA C HI NG

$

Todd’s Story

I NCOME SUPPOR T

WFSN M AKES A DIFFERENCE IN LIVES E VERY DAY

7 79

people are enrolled in training and education programs

852 268

people have found employment

people have increased their credit score

CFT’s Working Families Success Network of North Texas includes: Catholic Charities Dallas

International Rescue Committee

Catholic Charities Fort Worth

Jewish Family Service

CitySquare

Metrocrest Services

Housing Crisis Center

The Women’s Center

Interfaith Family Services 20

Todd graduated in May from the CitySquare Hospitality Program. After receiving disability for six years, Todd was excited to get back into the workforce.

Now with a full-time job, Todd continues to meet once a month with his financial coach at CitySquare.

He has opened a checking account and has started budgeting. The resources he found through CitySquare’s Hospitality Program have changed his life, providing the tools needed for him and his family to thrive.

CitySquare is one of the first nine agencies in CFT’s Working Families Success Network.

MABEL PETERS CARUTH CENTER Home of CFT

A PL ACE for philanthropy

At Communities Foundation of Texas, even our building helps giving thrive.

Designed in 2002 by the late architect Bill Booziotis, the building serves as a hub for philanthropy, through which we help strengthen nonprofits, our donors and our own employees. It is a place where nonprofits network, community leaders convene and passionate people work tirelessly to help build stronger, thriving communities.

events and convenings throughout the year

B IL L B O OZI OT IS Architect and Friend (1935–2016) In addition to designing our building, Bill Booziotis was one of our fund holders. After his wife’s death, he created a fund to support her favorite causes. He also established a fund to benefit students at Booker T. Washington High School for the Performing and Visual Arts. A longtime supporter of UT Dallas, he gave to many cultural institutions that define Dallas. His generosity is visible throughout the city. But for us, his legacy is the 20,000 people who come through our building every year.

Quarterly Cause-Minded Conversations highlighting important issues in our city and in the world of philanthropy

THRIVES

people, from donors to nonprofits to civic leaders, have passed through our doors in the past year

443

where g iving

21,997

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our

TEAM L E A D ER S H I P Dave Scullin

President and Chief Executive Officer

Stephenie Barr-Hughes

Executive Assistant to the President, CEO and CFO

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

Senior Vice President and Chief Financial Officer and Administrative Officer

Amy Aughinbaugh Business Analyst

Marsha Bronson Facilities Assistant

Lisa Causey

Facilities and Events Manager

Josh Chastant

Investment Analyst

R EL AT I O N S H I P S

ED U C AT E T E X A S

Monica Egert Smith

John Fitzpatrick

Sejal Desai

George Tang

Director, North Texas Giving Day/ Gift Processing/Constituent Records

Ami Doshi

Priscilla Aquino-Garza

Leslie Chatman

Jenna-Wade Fowler

Zimo Banta

Carol Pierce Goglia

Morgen Brown

Susan Swan Smith

Chief Giving Day Officer

Matt Allen

Coordinator, Gift Processing/ Constituent Records

Yvette Elkins

Manager, Gift Processing/ Constituent Records

Teresa Fougerousse

North Texas Giving Day Coordinator

Kaitlin Guthrow

Brad Furry

Chief Information Officer

Beverly Garner Facilities Director

D’Etta Hughes

Senior Director of Administration

Michelle Koval

Administrative Assistant

Donna Langdon

Accounts Payable Administrator

Erica Lopez

Front Desk Coordinator

April Lynch

Grants Administrator

Sean Mhlanga

Financial Analyst

Jennifer Parkinen

Administrator, Investments

Ruth Polanco

Senior Accounts Payable Administrator

Executive Assistant

Janice Mitchell

North Texas Giving Day Data Administrative Specialist

PHIL ANTHROPY Sarah Cotton Nelson

Chief Philanthropy Officer

Celeste Arista

Community Philanthropy Officer

Wende Burton

Community Philanthropy Director

Tina Lin

Strategic Initiatives Officer

Ashley McIver

Community Philanthropy Officer

Lori Price

Community Impact Specialist

Stefanie Valenzuela

Philanthropy Operations Associate

Kim Yates

Executive Assistant

Executive Director

Managing Director

Deputy Director, Policy

Associate, Insights and Analytics

Senior Director of Marketing and Communications

Associate, Marketing and Communications

Melissa Hardage

Luzelma Canales

Sarah Beeks Higdon

Chris Coxon

Donor Initiatives Officer Development and Corporate Relations Officer

Geri Jacobs

North Texas Giving Day Fellow

Asia Rodgers

Chief Investment Officer

Donor Initiatives Officer

Amanda Kolle

Rebecca DeButts Brian Doyle

EFNT Program Director

Emily Jackson

Staff Accountant

Meeting and Events Associate

Chief Relationship Officer

North Texas Giving Day Director of Sponsorships and Nonprofit Relations

Senior Coordinator, Gift Processing/ Constituent Records

Chris Coleman

Digital Marketing Coordinator Director of Charitable Gift Planning

Katie Kuehl

Scholarship Associate

Sally Kurtz

Palacios Area Fund Coordinator

Elizabeth Liser

Executive Director, RGV FOCUS Managing Director, Programs

Amy Desler

Deputy Director, Development

Katherine Diaz

Deputy Director, RGV FOCUS

Natalie Farinacci

Associate, Programs

Kelty Garbee

Deputy Director, Programs

Amy Groff

Donor Services Director

Managing Director, Finance and Administration

Kelly Maltese

Shelly Haines

Cathryn McClellan

Kate Haisten

Executive Assistant

North Texas Giving Day Marketing Fellow

Kathryn McGill

Advisor Relations Officer

Carolyn Newham

Senior Director of Donor Relations and Fund Administration

Nicole Paquette

Marketing Manager

Amelia White

Donor Initiatives Officer

Executive Assistant Deputy Director, Programs

Melissa Henderson

Deputy Director, Policy

Susan Henderson

Deputy Director, Programs

Beth Hook

Director, Marketing and Communications

Kristin Kuhne

Director, Insights and Analytics

Eugenio Longoria Saenz

Deputy Director, RGV FOCUS

Lora McKeown Finance Assistant

David Patterson

Deputy Director, Finance

Nischal Prakash

Associate, Insights and Analytics

Teresa Pottorff

Reo Pruiett

Jessica Robinson

Andy Scripps

Leigh Schaefers

Jarrad Toussant

Kristine Thomas

Michelle Wisdom

Human Resources Director

Administrative/HR Assistant Director of Accounting

Vice President, Accounting

Ann Marie Warrick

Employee Engagement Manager

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NORTH TEX AS G I V I N G DAY

Director, Programs Deputy Director, Strategy Deputy Director, Policy Deputy Director, Programs

our

BOARD

O F T R US T EES A N D L EG A L CO U N SEL

Jim Bass

Board Chair

Manager Trinity Summits, LLC

Bobby B. Lyle

Board Vice Chair President and CEO Lyco Holdings, Inc.

Richie Butler

Judith W. Gibbs

Kenneth Hersh

Chris Kleinert

Senior Managing Director Prescott Realty Group

Civic Leader

President and CEO George W. Bush Presidential Center

President and CEO Hunt Consolidated Investments, LLC

The Honorable Florence Shapiro

Karen Shuford

Sarah Losinger

John McStay

Alfreda Norman

Carlos González Peña

Civic Leader

John McStay and Associates

Senior Vice President Federal Reserve Bank of Dallas

President and Founder Peña Search Consulting, LLC

Nicole G. Small

G. Stacy Smith

Ruth Sharp Altshuler

President Lyda Hill Foundation

Partner Trinity Investment Group

Ex-Officio

Chairman’s Circle Civic Leader

Former Texas State Senator

Civic Leader

Frank Risch Ex-Officio

Immediate Past Chair Civic Leader

CFT’s funds and underlying assets are governed by an independent board of trustees composed of respected community leaders from diverse backgrounds.

to all CFT investments and charitable grants.

In addition to its board of trustees, CFT also has an advisory council that includes leaders from myriad businesses and civic organizations. Beyond generating public support for the foundation’s work, advisory council members provide educated and objective viewpoints that are valuable to CFT’s projects and endeavors.

For a full listing of our advisory council, please visit CFTexas.org.

where g iving

interests and the roles of nonprofits, and to act as stewards for nearly 1,000 funds. Trustees serve without compensation and exercise final authority with regard

THRIVES

CFT board members are selected for their knowledge of community needs and for their professional expertise. The trustees’ charge is to understand donors’

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Thank you for everything you do to help make CFT a place where giving thrives.