2014 Annual Report
“The seeds of today, are the trees of tomorrow.” - Anonymous
Our Mission
To stimulate philanthropy and enhance the quality of life in the community through accumulating, managing and disbursing financial assets, and to serve as a catalyst and neutral convener to meet a wide range of community needs in the South Central Pennsylvania counties of Cumberland, Dauphin, Franklin, Lebanon, and Perry, and the Dillsburg Area.
Our Philosophy
• Stimulate innovative projects and programs and encourage collaborative approaches that address emerging or unmet needs • Promote solutions that confront the causes of problems, with special emphasis on empowering the disadvantaged and the underserved • Reflect the diversity of our community in TFEC’s planning, decision-making and grantmaking • Respect individual concerns of citizens while striving for community solutions
Table of Contents Letter from the President and Chairman.............................................................. 3-4 Dream Start Your Charitable Journey......................................................................... 5-6 Women’s Fund................................................................................................ 7-8 Create Scholarships................................................................................................. 9-10 Educational Improvement Tax Credit Program.................................................11 Emerging Philanthropist Program.....................................................................12 Nonprofit Organization Capacity Building.........................................................13 Health Literacy..................................................................................................14 Sustain Planned Giving........................................................................................... 15-16 Parents & Partners..................................................................................... 17-18 2014 Grants by Program Area and Fund Type........................................... 19-20 Regional Foundations................................................................................. 21-32 Greater Harrisburg Foundation (1920).................................................. 21-22 Mechanicsburg Area Foundation (1986)............................................... 23-24 Franklin County Foundation (1987)....................................................... 25-26 Perry County Community Foundation (1987)........................................ 27-28 Camp Hill Community Foundation (1996)............................................. 29-30 Dillsburg Area Foundation (2004).......................................................... 31-32 2014 Champion of Philanthropy................................................................. 33-34 Statement of Financial Position........................................................................35 Historical Investment Performance...................................................................36 Investment and Assets Information............................................................ 37-38 New Funds................................................................................................. 39-40 New Projects.............................................................................................. 41-42 Management Service Agreements...................................................................43 2015 Board of Directors and Standing Committees................................... 44-45 2015 TFEC Staff and Consultants....................................................................46
Letter from the President and Chairman
We are pleased to present to you our Annual Report for 2014. We sincerely thank each and every one of you for your generous support of the region through The Foundation for Enhancing Communities (TFEC) throughout this past year. We are your partner in your charitable giving and, as such, we thank you for the opportunity to make it easier to connect you to the causes you care about and to make things a little easier for you through the use of our services.
“Our total contributions for the year reached $5.3 million, which brought our total assets to $75 million.”
The Foundation for Enhancing Communities and our six regional foundations, which include Camp Hill Community Foundation, Dillsburg Area Foundation, Franklin County Foundation, Greater Harrisburg Foundation, Mechanicsburg Area Foundation, and Perry County Community Foundation, had another very successful year. We ended the year with a total of 36 new funds, management agreements and projects. Our total contributions for the year reached $5.3 million, which brought our total assets to $75 million. We appreciate and thank the volunteer members of the Investment Advisory Committee, chaired by Bob Dolan of Conrad Siegel Actuaries, for their diligent work in managing the assets of TFEC. Bob Dolan reports: The past year has been a good year for investors in the U.S., the Dow Jones Index Fund was up by almost 10% for the year and the S&P 500 Index Fund was up more than 13%. The bond market remains strong, as interest rates of all durations remain at historically low levels. The
3 | Letter from the President and Chairman
international equity markets and domestic small caps have not fared as well, you can see the net effect in our Model E investment results on page 36 of the Annual Report. With all that considered, our disciplined approach to passive investing has served us well. We continue to rebalance as cash becomes available, which has the effect of continuing to “buy low and sell high” as we keep our assets properly diversified. We have maintained our philosophy! During the year, we sold our entire stake in PIMCO in steps as a result of the management turmoil there. We have redeployed those assets into high quality, intermediate term bonds, in keeping with our fixed income strategy. In 2014, we were excited to kick-off the inaugural year of our newest program, the Emerging Philanthropist Program (EPP) which is a partnership with Harrisburg Young Professionals (HYP). The inaugural class had 12 individuals who were chosen by the HYP team from a pool of applicants of their members. We met 10 times during the year and involved the class in sessions about philanthropy. They learned about the strengths and weaknesses of the various sectors of our region, including the arts, health and human services, environment, education, and community development. The class then decided on an area they wished to fund with the $5,000 given to them by TFEC to make a grant. They wrote a Request for Proposal in the area of early childhood education and parent engagement. They received nine
“We ended the year with a total of 36 new funds, management agreements and projects.” proposals. They made three site visits and then chose Samara, a nonprofit organization that specializes in strengthening families. Samara works with parents who experienced trauma and loss in their own childhoods and assists them to move beyond their own hurt and raise their children in a positive environment. It was a wonderful process to experience and when the class had their official graduation, they all said they wished it was not over. Therefore, we are keeping them involved with the 2015 class that began in late February. They also agreed to establish an endowment fund called the Emerging Philanthropists Fund to grow an endowment for the work of the group. We are all very happy about the success of the program and pleased to have this opportunity to work with young adults. Our Women’s Fund has been particularly active and successful this year. We offered four events: the Annual Grantee Recognition Breakfast in March, a Wine and Cheese Event in May and November for potential Dream Team members, and the Power of the Purse in October. All the events were sold out and yielded the fund much growth in overall assets. Dr. Carolyn C. Dumaresq served as our Chair in 2014. Her leadership and enthusiasm assisted the group to grow beyond its expectations. Our 2014 Champion of Philanthropy event was held in May. Connie Siegel, the former Chair of TFEC’s Board of Directors and former Chair of the Investment Advisory Committee, was chosen as the honoree. The event was held at the
Whitaker Center for Science and the Arts and was very successful with over 250 people in attendance. Our region is better for all the support he has provided to countless nonprofit organizations both in leadership and in contributions of resources. Congratulations, Connie! We welcomed Barbara Darkes of McNees Wallace & Nurick, Glenn Heisey of Capital BlueCross, and Dolly Lalvani of PriceWaterhouseCoopers as new members of the Board of Directors in 2015. Leaving the Board this year, after six years of service, were David Kleppinger of McNees Wallace & Nurick (former TFEC Board Chair), Kenneth E. Lehman, retired Volvo dealer, and David Skerpon of Capital BlueCross. Our staff consists of a strong, cohesive team of professionals whose contributions are most critical in meeting the strategic goals and objectives of an ever-growing, ever-adapting organization. Ginny Bush, our Executive Assistant, retired after 13 years with TFEC. We thank her for her service and wish her well. We welcomed Chera Yankowski as our new Executive Assistant, as well as Leslie Fick as our Program Manager for Parents & Partners. We sincerely thank Spencer G. Nauman, Jr., Esq. of the firm Nauman, Smith, Shissler & Hall LLP, for his exceptional legal advice and Connie Siegel of Conrad Siegel Actuaries for his guidance and leadership. Our great success year after year is directly because of you, our donors and professional advisors. Without your involvement and commitment, we could not affect positive change
in our community. We gratefully thank you for your dedication and commitment to making the region a better place to live, work and play. We look to you for suggestions and for your interest in and attention to our philanthropic services. You continue to represent the seeds that were sowed years before that are presenting themselves now in the form of estates, bequests and new funds. As always, we ask you to assist TFEC to continue the task of sowing the seeds of today that will be harvested tomorrow, guaranteeing our legacy of service and relevance to the community in the future. If you have questions or would like additional information about any of our services, please contact Janice R. Black, President and CEO at jblack@tfec.org, or at 717.236.5040. Visit our website at www.tfec.org for regular updates on general information about TFEC, grants, scholarships, our electronic newsletters, events, and more! Remember to consider giving a Charitable Gift Certificate to your friends and loved ones for special events in their lives. Sincerely,
Janice R. Black President and CEO
David A. Schankweiler Chairman
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Start Your Charitable Journey We can help you achieve your philanthropic goals Since 1920, TFEC has been partnering with you to establish your charitable funds. TFEC dreams with you and creates opportunities for you to achieve your charitable goals. We are your community foundation and we will be here to sustain your charitable goals forever.
Ways to Give
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You can choose to give cash to establish a fund or contribute to an existing fund; however, there may be significant tax advantages to contributing other types of assets such as: •
Marketable securities
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Closely held business stock
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Real estate
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Life insurance policies
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Mutual fund shares
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Nontraditional assets such as collections, art and antiques
Qualified retirement plan assets such as IRA, 401(k), 403(b), or pensions
If you have any questions about our services or would like more information, please contact Janice R. Black, President and CEO, at jblack@tfec.org or Jennifer Doyle, Director of Development & Community Investment, at jdoyle@ tfec.org. You can also visit our website, www.tfec.org, or call us, 717.236.5040, for information about how we can help you achieve your philanthropic goals.
“When we first considered creating a sculpture center, the task seemed daunting. The support and expertise that we have found working with TFEC gave us the confidence, assurance and assistance needed to embark on our studio project.”
- Seward Ryan and Debra Thomas Form Foundation Fund Donor Advised Fund
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“We established the McLemore Family Fund at the Camp Hill Community Foundation because it gave us flexibility and ease to conduct our charitable giving, while supporting the local community foundation. The fund establishment process has met all of our expectations, it has streamlined our giving, and we are grateful to have this opportunity to be a part of the Camp Hill Community Foundation family.”
- Barbara and Burke McLemore McLemore Family Fund Donor Advised Fund
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5 | Dream - Start Your Charitable Journey
Donor/Committee Advised Fund1
Scholarship Fund2
Your Charitable Goal Restricted Fund3
1 - The donor recommends grant recipients, amounts and a disbursement schedule; the fund may be PERMANENT or NONPERMANENT 2 - Grants in the form of scholarships; either the donor, committee or TFEC can manage the student selection process; the fund may be PERMANENT or NONPERMANENT
Discretionary Fund4
3 - The donor designates one or several nonprofit organizations as permanent grant recipients 4 - Ensures that grants will be available, in perpetuity, for the most current community needs. Grants awarded from these funds respond directly to community needs as defined by a grant committee from the following
types of funds: Area of Interest (grants designated to one area of charitable interest by the donor, such as the arts, health and human services, education, etc.) and Unrestricted Funds (a fund that is not specifically designated to a particular use by the donor and is used as community needs change)
The Foundation for Enhancing Communities - 2014 Annual Report | 6
Women’s Fund
“This past year was another great year for the Women’s Fund, a special initiative of The Foundation for Enhancing Communities, with 18 new pledges joining the ranks of our Dream Team members in 2014. The pledges and the proceeds from our Annual Grantee Recognition Breakfast and our Power of the Purse events allowed us to help 12 local nonprofit organizations serve the needs of women and girls in the South Central Pennsylvania counties of Cumberland, Dauphin, Franklin, Lebanon, and Perry, and the Dillsburg Area. Please join us at one of our fundraising events in 2015 so we can continue our work!”
Invest in Women . . . Change the Future
- Dr. Carolyn C. Dumaresq, Chair
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Neighborhood Center of the United Methodist Church Overview
Women in Philanthropy
2015 Executive Committee
Established in 2000, the Women’s Fund promotes awareness of issues affecting women and girls through the power of collective philanthropy. The Women’s Fund is part of a nationwide movement, allowing women to fulfill their desire to give back.
In 2014, we bestowed special recognition to two award winners: Ashley Company and Tracey C. Jones. Each was honored for their many years of providing time, talent and treasure to causes supporting women and girls in our community. They are exceptional role models and amazing women!
The Women’s Fund is led by a dedicated group of women:
Objectives of the Women’s Fund: •
Educate others about philanthropy and issues affecting women and girls
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Raise money and award grants that address issues affecting women and girls
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Promote inclusiveness and cultural competency in giving and grantmaking
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Empower all women to recognize themselves as philanthropists
For more information about the Women’s Fund, please visit www.tfec.org/Womens-Fund.
$16.66 7 | Dream - Women’s Fund
A Women in Philanthropy awardee must be nominated by her peers as an individual who has made outstanding contributions to local nonprofit organizations. All nominations are reviewed by the Women in Philanthropy Committee and selected based on each woman’s contributions towards creating positive change in the lives of women and girls in Cumberland, Dauphin, Franklin, Lebanon, and Perry counties, and the Dillsburg Area. Eleven women, including Ashley and Tracey, have received this award since its inception in 2011.
For only $16.66 per month, over 5 years, you can give the gift of hope to women and girls in our community.
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Dr. Carolyn C. Dumaresq, Chair
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Renee Custer
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Norma Gotwalt
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Julia Mallory
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Gloria Merrick
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Ho-Thanh Nguyen
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Elaine Nissley
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Shileste Overton-Morris
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Jessica Ritchie
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Dr. Michele Sellitto
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Karen F. Snider
In 2014, we awarded the Neighborhood Center of the United Methodist Church a $2,000 grant for Young Mothers Together, a program for pregnant and parenting teen girls. This free and comprehensive program offers one-to-one counseling, and monthly educational and support meetings. These meetings include topics such as nutrition, immunization, infant care and life skills. Young Mothers Together enhances teen parent confidence and competence, and offers strategies to help the transition to adulthood. The program helps teen mothers complete their education, navigate the network of assistance agencies, and care for their children. —————————
There are four volunteer subcommittees that also work to achieve the goals and objectives of the Women’s Fund: Development, Grantmaking, Marketing & PR, and Women in Philanthropy. Janice R. Black and Jennifer Doyle are staff liaisons to the Executive Committee.
“I believe that if it wasn’t for Young Mothers Together, I would not be finishing my last year of high school and graduating with honors.”
Dream Team Over 75 individuals have joined the Dream Team since its founding in 2011. You can become a member of the Dream Team with a gift or pledge of at least $1,000 to the Women’s Fund. Please visit www.tfec.org for a complete list of Dream Team members.
- Maria, Program Participant
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New Scholarship Funds Established in 2014
Scholarships You can help students access higher education
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Linda T. Butler Scholarship Fund: This scholarship was established by Linda T. Butler, a devoted educator and former resident of Susquehanna Township. Annually, a scholarship will be awarded to a graduating senior from Susquehanna Township High School that has not received any other monetary
There are several types of scholarship funds that you can establish: permanent, nonpermanent, restricted or committee advised.
Scholarships can benefit students at the high school or college level. You determine the criteria for your scholarship such as financial need, class rank, GPA, leadership, etc. You can select scholarship awardees with the assistance of a committee using objective criteria. TFEC can assist you in managing
part or all of the application process. TFEC administers the award process and payment of all awards each semester. Scholarships may only be used towards the cost of tuition, fees and/or books. For more information about scholarships, please visit www.tfec.org/ scholarships.
scholarships or awards, has demonstrated academic growth through their high school career, and shows evidence of strong character and school pride. •
Jerry Bennett Memorial Scholarship Fund: This scholarship was created in memory of Jerry to benefit students at James Buchanan High School.
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Benjamin Pash Bloser Memorial Scholarship Fund: This scholarship was created in memory of Ben, who died at age 21, and will be awarded to a Big Spring High School student who demonstrates similar characteristics of Ben who was athletic, valued sportsmanship, and was kindhearted.
Current Total Scholarship Funds
120+
Total Student Award Recipients
415
Total Scholarships Awarded
$1.1m
TFEC currently manages or administers over 120 scholarship funds that are available to students. These funds relieve some of the financial burden that higher education can place on a student and their family.
A total of 415 students received scholarships for the 2014-2015 academic year through the various scholarship funds that are managed or administered by TFEC.
Over $1.1 million in scholarships were awarded to students for the 2014/2015 academic year from scholarship funds and management service agreements held or administered by TFEC.
Partnership for Access to Higher Education
PATH Program Matching Funds
PATH Program Match Amounts
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Louise A. Dixon Memorial Scholarship Fund: This scholarship was created in memory of Louise A. Dixon by her family. There was no stronger advocate of advanced learning than Louise and it was her utmost desire to see the scholarships awarded to high school seniors who might not otherwise have an opportunity to attend college.
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Mabel M. Witmer Scholarship Fund: This scholarship was created to assist students in obtaining training beyond the high school level at a trade or technical school.
Zachary Moore Music Memorial Scholarship Fund This scholarship is intended to support music development as envisioned by Zachary’s parents. Zachary wanted to pursue a non-traditional, innovative, and creative approach to bring forth music and help release the music he heard in his mind, body and soul. —————————
1 of 37 $150k $2,500 TFEC is one of 37 partners with the AES/PHEAA Partnership for Access to Higher Education (PATH) Program. TFEC scholarship recipients are eligible to have their awards matched provided they attend a school in PA and have a PA grant.
9 | Create - Scholarships
TFEC received $150,000 in matching funds for the 2014-2015 academic year from the PATH Program. These funds further help lower the costs of higher education for students and families in need.
Scholarship recipients are eligible to have their awards matched up to $2,500 per year through the PATH Program. Scholarship recipient information is submitted to PHEAA by TFEC staff requiring no additional work from the scholarship recipient.
“We established this memorial scholarship fund to keep Zach’s spirit and love of music alive.”
- Reizdan and Rosemary, Zachary’s Parents
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Educational Improvement Tax Credit Program
Emerging Philanthropist Program Engaging Harrisburg’s next generation of philanthropists a partnership between
The Educational Improvement Tax Credit (EITC) Program provides credits to eligible businesses contributing to one of the following specific programs: a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization. TFEC is currently eligible to receive funds for the Opportunity Scholarship Tax Credit (OSTC) Program and the PreKindergarten Educational Improvement Tax Credit (EITC) Program.
Opportunity Scholarship Tax Credits
Pre-K Educational Improvement Tax Credits
OSTC funds allow TFEC to provide tuition to eligible students who reside within the attendance boundary of a low achieving school to attend a participating nonprofit school or a participating private school located in a school district outside of the recipients school district of residence including special education schools. Tuition to be paid will include school related fees charged by a school. TFEC will provide tuition to students in the counties of Cumberland, Dauphin, Franklin, Lebanon, Northern York and Perry. Eligible students are grades K-12 who have financial need. Families apply for funds through an application process managed by TFEC staff.
Pre-K funds allow TFEC to provide tuition to eligible Pre-K students to attend a Pre-K program operated by, or in connection with, a school or a special education school in the counties of Cumberland, Dauphin, Franklin, Lebanon, Northern York and Perry. Pre-K programs must have a curriculum that is aligned with the associated school. Eligible students are ages 3-4 years, living in and attending a Pre-K program, who have financial need. Families apply for funds through an application process managed by TFEC staff. For more information about both tax credit opportunities, please visit www.tfec.org/eitc.
Program Overview:
Topics Covered:
2014 EPP Class:
The Emerging Philanthropist Program (EPP), a partnership between TFEC and Harrisburg Young Professionals, seeks to engage Harrisburg’s rising business and community leaders with the great possibilities that lie within philanthropic endeavors in Harrisburg and answer three questions:
The following topics were discussed during the 10-month program:
The inaugural EPP class consisted of 12 members of the Harrisburg Young Professionals:
1. What does it mean to be philanthropic? 2. How do I understand the needs of our community? 3. What can I do to make an impact? EPP provides resources and educational opportunities for Harrisburg’s developing leaders who wish to be actively engaged in giving back to their community.
“This scholarship allowed me to attend Bishop McDevitt by giving the financial help that my family needed. It allowed me to go from a failing school district to a school where I would receive an education that would benefit me later in life. I am truly grateful that I received this scholarship.”
“We’re a local business which means our success wouldn’t be possible without the support we’ve received from the local community. Through this donation, we’re proud to be giving back to our local community foundation that is dedicated to enhancing the quality of life in the region we serve.”
- Zabria Everett OSTC Scholarship Recipient
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- Stephanie and Christian Rawden McDonald’s, EITC Donor Company
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11 | Create - Educational Improvement Tax Credit Program/Emerging Philanthropist Program
$5,000
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Personal philanthropy
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Fundraising 101
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Grantmaking 101
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Wealth management practices
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Giving back to your community
The culminating experience was for the class to apply their newly learned community and grantmaking skills by awarding a grant to a nonprofit organization in the Harrisburg area that provided programs and services that address family development and engagement; a topic chosen by the class after assessing community needs. After a competitive grantmaking process the class awarded Samara a $5,000 grant.
Grant amount awarded to Samara for their Intensive Parenting Program.
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Catherine Azeles
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Kimberly Bowman
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Ayanna Cash-Clements
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Toan Do
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James Hobbs
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Alexander Langan
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Jolene Leisure
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Steven Martinez
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Suzanne Patackis
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Adrienne Thoman
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Melba Twitty
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David Wagner
For more information about EPP, please visit www.tfec.org/epp.
The Intensive Parenting Program creates an environment of emotional safety and warmth that allows parents to reflect on their own experiences and open themselves to new ideas and unfamiliar concepts through activities that promote trust within the group and self-discovery. For more information about Samara, please visit page 22.
The Foundation for Enhancing Communities - 2014 Annual Report | 12
Nonprofit Organization Capacity Building
Health Literacy
Partners with nonprofits to serve our community
Health disparities among the aging population
TFEC provides ongoing technical assistance to nonprofit organizations and practical training on best practices, funding trends, emerging outcomes and evaluation methods to ensure the sustainability and competitiveness of nonprofits in a challenging economic environment.
We are proud to facilitate community conversations and seek solutions to problems. Our experiences as a neutral convener enable us to bring together nonprofit organizations, government officials, corporations and foundations to define issues and generate solutions.
An Agency Fund is an endowment fund established by a nonprofit organization with the income benefiting their programs in perpetuity. The process of building a successful Agency Fund requires commitment over many years from the entire nonprofit organization with a steadfast dedication to the principle of investing for the future. Income earned from the fund can be reinvested for compound growth or can provide a predictable income stream. Fund income lessens the pressure to raise current operating dollars and helps to smooth the ups and downs of economic business cycles. Additionally, an Agency Fund sends a positive message to donors: the organization has
achieved a key measure of financial stability and intends to carry out its mission for generations to come. In 2014, TFEC and Temple University’s NEST covered these sessions through the Enhancing Communities Learning Series: collaboration, networking, strategic planning and fundraising. Due to the success of this program we are continuing the collaboration into 2015. Our nonprofit participants have identified the following topics of interest: communications, grantwriting, volunteer management, networking and social media best practices. For more information about ECLS, please visit www.tfec.org/ecls.
In 2012, TFEC convened community stakeholders to discuss health disparities among the aging population. Participants included local area agencies on aging, hospital systems, health insurers, service providers, and more. After much discussion, health literacy was chosen as the most pressing issue affecting older citizens. The Aging Task Force continued this effort throughout 2014 completing significant work to create and implement an online health literacy toolkit for use by community organizations serving older persons. This toolkit is an active resource that can be updated as needed.
Low health literacy occurs when there is a gap between the knowledge and skills of the patient and the demands of today’s healthcare system. There are tools you can use to help close that gap. We invite caregivers, church groups, public libraries, senior centers, and any other person or organization working with older adults to take a look at the resources we’ve gathered. Your relationship with the people you work with can be a great tool to closing the health literacy gap among the aging population. The toolkit can be found online by visiting www.tfec.org/health-literacy.
Seven Areas of Focus
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“The ambitious goal of changing a social norm to include respect and nonviolence is key to our work in primary prevention. To meet this goal we invested funds to support this work in the future. We approached TFEC because we know that they are trusted and respected in this field. TFEC shares our mission and vision and will lead us as we build our sustainability for the future.”
Health Literacy Basics
- Jenny Murphy-Shifflet, President/CEO Sexual Assault Resource and Counseling Center Agency Fund
Communicating with Health Professionals
Medication Safety
Finding Reliable Health Information
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“The ECLS series has addressed common issues pertinent to nonprofits. Rather than developing a club of people who get together every few months, the sessions have appealed to a variety of specialties in such a way as to recognize that capacity building is a shared responsibility. While sessions do not create expertise, they begin a conversation and demonstrate that the issues are held in common by other nonprofits.”
- Stephen Scanlon ECLS Participant
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13 | Create - Nonprofit Organization Capacity Building/Health Literacy
Health Insurance Literacy
Teach-back
Measuring Success
Current Participants Bob Haigh, Chair Sandy Abnett Terry Barley Dara Bourassa Gil Brown Julia Bucher Jill Buhrman Jonelle Prether Darr
Annamarie Fazzolari Cindy Hipszer Helen Houpt Jim Ingolio Sharon Kelly Rebecca May-Cole Martha McGraw Gloria Merrick
Dee Miller Becca Raley Lori Clark Robinson Gary Scicchitano Katie Shradley Barbara Terry Susan Wokulich Jennifer Kuntch, TFEC Staff Liaison The Foundation for Enhancing Communities - 2014 Annual Report | 14
Split Interest or Charitable Trusts
Planned Giving Achieve your charitable goals with a future gift In addition to accepting direct contributions, TFEC assists you in making planned gifts. Often these gifts are deferred based upon your personal estate planning and income needs. Even though gifts might be deferred, they could have immediate tax benefits. Deferred gifts include bequests, charitable remainder trusts, charitable annuity remainder trusts, charitable lead trusts, and real estate with retained life interest. If you make a planned gift, you are invited to become a member of our 1920 Legacy Society. Members of the 1920 Legacy Society receive special recognition in our Annual Report and on our website, invitations to all TFEC events, and a special gift to say thank you for your planned gift.
1920 Legacy Society Lydia Auchincloss* Sloan & Susan Auchincloss
William Lehr, Jr. & Beverlee Lehr Robert Thomas Leonard
Jennifer Steigelman Dean & Gail Stephens
William Banks
Barbara Lock
Mary Alice & Larry W. Stoops
Janice R. Black
Leon I. Lock*
Elsie W. Swenson*
Harold & Dolores Brake
Carrie & George Lyter, Jr.
J. Wayne Tisdale*
Evan R. & Marguerite H.* Bostdorf
Frank Magee
Marilyn Lee Urie
Jerry Martin & Michael Knaub
Gale Wenk du Pont
Dr. Maury Brenner Dr. David Bronstein Janet * & Melvin Brownold A. Wesley Carr, Jr. Marie Graupner Elias* Dr. Donald Freedman David E. & Jane Edgar Freet Gordon Fry Mary Fox Edward* & Alice Girvin Joseph K.* & Joan S.* Goldsmith Norma Gotwalt Raymond L. & Frieda Gover
L. Jeffrey & Sharon L. Mattern Margaret B. Masters* James M. & Janet M. Maynard Harold A.B. McInnes Carol Mentz
Milton Weber* Wallace & Lois Willig Simon Zimmerman* Robert G. & Linda M. Zullinger *Deceased
Wayne & Susan Mountz Senator Harold* and Phyllis Mowery Sidney & Ellen Palmer Charles Peter Harry W.* & Nancy Reist Preis
Paul V. Shaver & Patricia Roussel
John* and Julia* Krell
Walter W. Shearer*
Gov. George* & Mary Jane* Leader
Conrad M. & Gail Siegel
Jan & Rick Le Blanc
Mr. & Mrs. Stephen F. Spector Edward Soloman*
- Sidney and Ellen Palmer
Lois Lehrman Grass Robert D. Hanson* Glenn & Barbara Holliman Martha Hostetter Robert Hostetter Kenneth S. Knowlton Margaret D. Kooistra
Leona Rapoport* David & Jeanne Reager Neal & Linda Rhoads Helga Rist Diane L. Sandquist Charles G. Schlichter, Jr. William & Susannah Rothman
R.E. & S. Singiser
William and Nancy Law recently celebrated their golden anniversary of 50 years. After marrying in 1965, the North Carolina natives moved around the country, living in Florida, South Carolina and, most recently, Pennsylvania. They returned to North Carolina at the end of 2014 to reacquaint themselves with the “Old North State.” When they aren’t traveling, the couple finds plenty of ways to fill their time. William is an avid tennis player who enjoys participating in mission trips with his church. Nancy is more of a homebody who likes to read and work on her needlepoint. These hobbies have been the foundation of the Laws’ happy marriage. William and Nancy have also both realized the importance of giving back to their community. Therefore, William and Nancy established a Charitable Remainder Trust in 2014 with TFEC. Upon establishing their Charitable Remainder Trust, they received an initial tax benefit, which could be taken over a 5-year period, and an annual income stream. Upon their deaths, their Charitable Remainder Trust will create the Nancy and William Law Fund, a Restricted Fund, that will benefit a predetermined set of nonprofit organizations chosen by William and Nancy.
Linda Miller & Robert Adelberg
Eric Krell
James E. Grandon, Jr.
William and Nancy Law
Bernice Weir*
“We believe that it is important for those who are blessed to take and create an opportunity to give back to their community and to help with the social well-being for future generations. After considerable thought and research we chose TFEC as the best way to accomplish our objectives after our lifetime. We believe that TFEC has the ability and commitment to administer our estate, grow the principal, and fulfill our wishes so that we will have the peace of mind of knowing that our commitments will be honored for perpetuity.”
Emily H. Lehr*
15 | Sustain - Planned Giving
TFEC manages and serves as trustee for 41 charitable trusts, valued at $10.4 million (12/31/14). These trusts include Charitable Remainder Unitrusts, Charitable Remainder Annuity Trusts, and Charitable Lead Trusts. These agreements are legal arrangements where you can transfer assets irrevocably to a Trust, which then invests it and creates two (split) interests. Typically, a donor establishes these planned gifts in order to increase the impact of their charitable gifts, receive a lifetime income, and/or qualify for income, gift and estate tax benefits. Charitable trusts have a minimum $50,000.00 contribution requirement. In most circumstances, legal services are required and are available to donors without charge through TFEC’s relationship with Nauman, Smith, Shissler & Hall LLP.
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“The confidence we have in TFEC comes from its Board of Directors and the purpose of the organization in making a difference in the community.”
- William and Nancy Law
The Foundation for Enhancing Communities - 2014 Annual Report | 16
Community Innovation Zone Grant Partners
Parents & Partners Improving access to early childhood education
Parents & Partners Objective Parents & Partners is a special initiative of TFEC and an extension of Capital Beginnings, which provides support for the whole family, broadens community resources by giving children and their families the tools they need to be successful, and builds strong partnerships between the community, early learning providers, and the Harrisburg School District. Parents & Partners addresses crucial economic and educational issues by providing early learning education in our community. The work done to increase school readiness, literacy and family engagement will have an immediate and positive impact on the lives of our children and families now and into the future. The Early Childhood Engagement Group, formerly the Dauphin County LEARN, guides the work of this partnership. Parents & Partners is a community collaborative committed to ensuring children enter kindergarten ready to learn and succeed. Parents & Partners is made possible in-part by a grant from the Pennsylvania’s Office of Child Development and Early Learning (or OCDEL) Race to the Top-Early Learning Challenge Grant. Please view page 18 for more information about Parents & Partners’ funding partners.
Deliverables
Dauphin County School Readiness Calendar
Homework Toolkits
Primary Partners1 “Welcome to Kindergarten” Books
Parents & Partners
Family Fun Events
Pre-K
K Transitioning to Kindergarten Programs
Business/Legislators Education Breakfast
Training and Support
Community Outreach
For more information, to volunteer, make a monetary gift, or donate books/school supplies to Parents & Partners, please visit www.tfec.org/ParentsAndPartners.
Future Community Partners3
1 - TFEC, Harrisburg School District, Capital Area Head Start 2 - Capital Region Literacy Council, Dauphin County Early Intervention, Dauphin County Library System, Hamilton Health Center, Harrisburg Regional Chamber of Commerce, Interfaith Shelter, Catholic Charities Diocese of Harrisburg, Temple
17 | Sustain - Parents & Partners
Current Community Partners2
Financial Partners4
University NEST, Joshua Group, Pennsylvania Family Support Alliance, WITF 3 - Central PA Food Bank, Community Action Commission, Harrisburg SMILES, Nurse Family Partnership, PinnacleHealth, Pressley Ridge 4 - Pennsylvania’s Office of Child Development and Early Learning Race
to the Top-Early Learning Challenge Grant, Greater Harrisburg Foundation, Harrisburg Public Schools Foundation, PNC Foundation, The Hershey Company, United Way of the Capital Region, Ms. Marilynn Abrams, Henry & Beatrice Miller Fund (Ms. Linda Miller & Mr. Rob Adelberg), Mr. William Lehr, Jr., Ms. Kristen Olewine Milke, Mr. Benjamin Olewine
The Foundation for Enhancing Communities - 2014 Annual Report | 18
73+3+14+5+5
2014 Total Grants
$5,360,851 2014 Total Grants
2014 Total Grants by Fund Type
Arts & Humanities
Community Development
Math & Science
9%
23%
1%
Education
Environment
Health
24%
2%
23%
Human Services
Religion*
Self-Sufficiency
6%
9%
3%
19 | Sustain - 2014 Grants by Program Area and Fund Type
*donor advised funds only
72+5+11282
2014 Total Grants by Program Area
Advised
71.7%
Agency
4.3% Area of Interest
1.5%
Restricted
12.3%
Unrestricted
1.8%
Scholarship
8.4%
The Foundation for Enhancing Communities - 2014 Annual Report | 20
Samara - The Center for Individual and Family Growth
Greater Harrisburg Foundation
In 2014, Samara received a $5,000 grant from the Emerging Philanthropist Program for their Intensive Parenting Program; the EPP funds were provided by the Greater Harrisburg Foundation. The Intensive Parenting Program creates an environment of emotional safety and warmth that allows parents to reflect on their own experiences and open themselves to new ideas and unfamiliar concepts. This program encourages parents from high-risk families to experience positive and judgment-free interactions with activities that promote trust within the group and self-discovery. This gives parents who were traumatized and abused as children the opportunity to confront how those interactions in their childhood are influencing their parenting style. Parents are able to become open and aware of the needs of their children once their own needs for nurture and warmth become realized.
a Regional Foundation Established 1920
Serving Cumberland, Dauphin, Franklin, Lebanon, and Perry Counties, and the Dillsburg Area
Grant Committee Cynthia T. Tolsma1, Chair Marilynn Abrams John Bolger# Dr. David Bronstein Barbara Darkes*
Linda A. Hicks Renee Lieux David B. Skerpon 2 Karen F. Snider Kathy L. Pape, ex officio * # 1 2
New in 2015 Term Expired in 2014 New Chair Immediate Past Chair
2014 Total Assets
2014 Total Grants
$57,077,753
$4,607,532
(76.56% of total TFEC assets)
(85.95% of total TFEC grants)
—————————
“Thanks to TFEC’s generous support of Samara, we are strengthened in our work to serve families caught in generational cycles of child abuse and neglect. ”
21 | Sustain - Greater Harrisburg Foundation
- Pamela Haddad, Executive Director
The Foundation for Enhancing Communities - 2014 Annual Report | 22
Setebaid Services Inc. In 2014, Setebaid Services received a $4,000 grant from the Mechanicsburg Area Foundation for Camperships, tuition assistance for youth living with Type 1 Diabetes to attend diabetes education camp. The camps are accredited by the American Camp Association and are in compliance with all position and public policy statements of the American Diabetes Association. The camps maintain the highest standards in the diabetes community for selecting staff, averaging a physician for every 15 campers. The camping season runs from July through August each summer. Type 1 Diabetes camps have been proven to improve diabetes management skills in youth living with Type 1 Diabetes. A 1993 study by the American Diabetes Association showed those with better management skills reduced or eliminated diabetes complications. The studies also showed those who benefit the most from Type 1 Diabetes camps are those who are least able to afford the camp.
Mechanicsburg Area Foundation a Regional Foundation Established 1986
Serving the Mechanicsburg Area
Advisory Committee Scott Christ, Interim Chair Mark Basehore# Leslie Collins* Mary Eberly Tita Eberly 1 Donald Failor, CLU Mike Greenawalt Patti Herring
Parker Kuhns Michael Malpezzi Linda Mohler Humes Elyse Rogers#, Esq. Alan T. Vandrew Earnie Zimmerman Kathy L. Pape, ex officio * New in 2015 # Term Expired in 2014 1 Immediate Past Chair
—————————
Director Emeritus Foster M. Berkheimer David Coover
Charles E. Shields, Sr. (posthumously)
2014 Total Assets
2014 Total Grants
$4,503,414
$196,637
(6.04% of total TFEC assets)
(3.67% of total TFEC grants)
“Because of camp, my daughter’s care has tremendously improved and she has learned to be her own advocate! She is more comfortable living with and talking about her diabetes.”
23 | Sustain - Mechanicsburg Area Foundation
- Mother of camper Elizabeth
The Foundation for Enhancing Communities - 2014 Annual Report | 24
Arts Alliance of Greater Waynesboro Inc.
Franklin County Foundation
In 2014, the Arts Alliance of Greater Waynesboro received a $750 grant from the Franklin County Foundation for the Performing Arts Fund to Support Destination ARTS!, an innovative program focusing on creating a vibrant arts community and supporting the revitalization of downtown Waynesboro. Destination ARTS! currently supports one flagship gallery, an 18-artist co-op, a Ceramic Arts Center, an arts education center, two pop-up art galleries, art classes, children’s activities, painting and drawing classes, student shows, a writers’ group, and free public performances. Grant funds were used towards the public performances. Entertainment takes place in the galleries, on the sidewalks, and ‘on the square’, downtown Waynesboro’s central location, several times per week year round.
a Regional Foundation Established 1987 Serving Franklin County
Advisory Committee Dawn Keller, Chair Harold Brake Nancy Glen Hank Guarriello Lee Harter Leroy S. Maxwell, Jr. John McKenzie
Carolyn Miller Gail Reeder Charles G. Schlichter, Jr. David Spang Nancy Van Buskirk Kathy L. Pape, ex officio
—————————
2014 Total Assets
2014 Total Grants
$8,019,044
$331,481
(10.76% of total TFEC assets)
(6.18% of total TFEC grants)
“Thanks to FCF, the streets of Waynesboro are alive with activity and creativity: music, magicians, dance, arts demonstrations, and theater!”
25 | Sustain - Franklin County Foundation
- Kirsten Hubbard, Board of Directors, Secretary
The Foundation for Enhancing Communities - 2014 Annual Report | 26
Carroll Township Board of Supervisors
Perry County Community Foundation a Regional Foundation Established 1987 Serving Perry County
Advisory Committee Thomas Cook, Chair Nancy Bratton# Merril Brofee Anne Chappelka Suzanne Dell# Lenus A. Haines Allen Hench* Linda C. Kutz George L. Lyter*, Jr.
Harriet Magee L. Jeffrey Mattern* Lori McClellan# Lane Partner# Marel Raub John Zogby Kathy L. Pape, ex officio
In 2014, Carroll Township received a $1,000 grant from the Perry County Community Foundation towards the proposed expansion of the park at Valley Road. The park will be expanded to include a “Fitness Trail” (fitness stations for all ages located along a walking/hiking trail), natural landscaping to enhance green space and provide natural shading and rest-areas, completion of a foot-path for connectivity between fields and facilities, installation of benches made from recycled materials, and installation of two environmentally friendly pet-waste disposal systems. Grant funds will be used towards the installation of the fitness stations providing a safe, sustainable and fresh-air location for the community, enhancing livability in the Township and promoting a healthy lifestyle. —————————
Honorary Members Joan Holman^
Hon. William Moore * New in 2015 # Term Expired in 2014 ^ Deceased
2014 Total Assets
2014 Total Grants
$4,246,012
$182,841
(5.69% of total TFEC assets)
(3.41% of total TFEC grants)
27 | Sustain - Perry County Community Foundation
In 2005, the Carroll Township Board of Supervisors created a five-member Recreation Board empowered to supervise, regulate, equip and maintain township-funded recreation programs and facilities.
The Foundation for Enhancing Communities - 2014 Annual Report | 28
Junior Achievement of South Central PA In 2014, the Camp Hill Community Foundation awarded Junior Achievement of South Central PA a $1,500 grant for in-class programs serving the Camp Hill School District. The grant allows Junior Achievement of South Central PA to reach 15 classes containing 300 children in kindergarten to 5th grade with Junior Achievement financial literacy classes. Junior Achievement of South Central PA is a dynamic, growing organization with more than 2,500 volunteers and hundreds of corporate and individual sponsors. Junior Achievement of South Central PA covers six counties: Adams, Cumberland, Franklin, Perry, York, and the western half of Dauphin County. Junior Achievement of South Central PA’s purpose is “to inspire and prepare young people to succeed in a global economy.” In the 2013-2014 school year, Junior Achievement’s financial literacy programs touched the lives of more than 41,000 students in South Central PA.
Camp Hill Community Foundation a Regional Foundation Established 1996
Serving the Camp Hill Area
Advisory Committee Richard Woodard, Chair Nancy Besch Henry Cohen Dennis Lebo* Tom Johnston*
Barbara McLemore David Reager Hon. Mark Simpson# Jill Williamson* Kathy L. Pape, ex officio * New in 2015 # Term Expired in 2014
—————————
2014 Total Assets
2014 Total Grants
$665,502
$41,360
(0.89% of total TFEC assets)
(0.77% of total TFEC grants)
“I support both the method and goals of Junior Achievement because I see the benefits this program provides to my students.”
29 | Sustain - Camp Hill Community Foundation
- Christine A. Hatch, M.Ed., Eisenhower Elementary School
The Foundation for Enhancing Communities - 2014 Annual Report | 30
Melvin J. and Alice Gayle Reeder Scholarship
Richard Settle is the Melvin J. and Alice Gayle Reeder Scholarship recipient for the 2014-2015 academic year. Richard currently attends McDaniel College in Westminster, Maryland studying Physics and plans to earn a postgraduate degree in Mechanical Engineering. Richard chose to attend McDaniel College for its community atmosphere from academics to athletics, its small class size, and the personal and professional relationships.
Dillsburg Area Foundation a Regional Foundation Established 2004 Serving the Dillsburg Area
Advisory Committee Jay Young, Chair Mike Adams Lee E. Eichelberger Tom Gruber
Since McDaniel College is a private liberal arts college, the tuition is more expensive than a state-supported school. Being the 2014-2015 recipient of the Reeder Scholarship allowed Richard the opportunity to make college more affordable. Richard shares some similarities with the Reeder family by also coming from a large family of eight children containing two sets of twins. Richard attributes his life’s successes and development, in part, to his family’s love and support of him over the years.
Alan Kauffman Larry Klase Ronald Wenger Kathy L. Pape, ex officio
—————————
2014 Total Assets
2014 Total Grants
$45,882
$1,000
(0.06% of total TFEC assets)
(0.02% of total TFEC grants)
“College is super important for me if I want to pursue my dreams of Mechanical Engineering; if it were not for the Reeder Scholarship, I don’t think it would be possible.”
31 | Sustain - Dillsburg Area Foundation
- Richard Settle, Scholarship Recipient
The Foundation for Enhancing Communities - 2014 Annual Report | 32
2014 Champion of Philanthropy Honoring Conrad “Connie” Siegel
“We were honored to host over 250 individuals in celebration of Connie, his philanthropic accomplishments, and his love of jazz.”
- Janice R. Black, President and CEO
33 | Sustain - 2014 Champion of Philanthropy
In May 2014, TFEC honored community leader, Conrad “Connie” Siegel, as our 2014 Champion of Philanthropy. Connie founded Conrad Siegel Actuaries (CSA) in 1963 after relocating to Harrisburg from Toronto, Canada. Connie’s expertise in group insurance and pensions helped grow CSA into one of Pennsylvania’s largest firms. CSA serves a wide range of employers, unions, joint boards and governmental agencies consulting on employee benefit plans. For the past 30 years, Connie has been very involved in the local community serving in various capacities for TFEC, Rotary Club of Harrisburg, Lebanon Valley College, and many other nonprofit organizations.
The 2014 Champion of Philanthropy raised $50,000 to benefit the Fund for the Future, Connie’s chosen beneficiary. The Fund for the Future is an unrestricted fund originally established through the Warden Asphalt Company by John B. Warden, III. Unrestricted funds enable TFEC to respond quickly to changing community needs. Earnings from this fund provide grants to nonprofit organizations across the South Central PA counties of Cumberland, Dauphin, Franklin, Lebanon, and Perry, and the Dillsburg Area. These grants focus on areas such as arts and culture, community development, and education. Grant decisions are made by a volunteer advisory committee.
The 2014 Champion of Philanthropy raised $50,000 to benefit the Fund for the Future, Connie’s chosen beneficiary.
William Lehr Jr., 2012 Champion of Philanthropy recipient, and Connie Siegel
L to R: Gail Siegel, Connie Siegel, Vicki Dolan and Bob Dolan The Foundation for Enhancing Communities - 2014 Annual Report | 34
Statement of Financial Position
Historical Investment Performance
as of December 31, 2014 and 2013
Annual Investment Returns1 Year
Assets Cash and Investments at Market Value
2014
2013
$ 61,845,349
$ 60,286,039
1,706,003
1,882,043
24,559
22,201
9,188
4,928
10,972,508
10,564,320
$ 74,557,607
$ 72,759,531
$
$
Receivables Prepaid Expenses Property and Equipment (Net) Split Interest Agreements
Total Assets
Liabilities and Net Assets Accounts Payable
10,468
Deferred Revenue
9,546
—
2,180
588,699
548,188
Liability to Resource Providers
4,859,979
4,498,315
Liabilities Under Split Interest Agreements
6,404,899
6,476,126
11,864,045
11,534,355
55,161,874
54,196,260
7,531,688
7,028,916
62,693,562
61,225,176
$ 74,557,607
$ 72,759,531
Grants Payable
Total Liabilities
Unrestricted Temporarily Restricted
Total Net Assets
Total Liabilities and Net Assets
Model E5
Model A6
Model F7
1996
19.6%
18.8%
—
1997
27.6%
22.0%
—
1998
23.4%
17.4%
—
1999
21.3%
16.3%
—
2000
-11.2%
-5.1%
—
2001
-8.8%
-4.2%
—
2002
-19.3%
-10.9%
—
2003
34.1%
24.2%
—
2004
16.0%
12.0%
1.6%
2005
8.6%
6.9%
1.1%
2006
19.0%
14.8%
4.7%
2007
4.3%
4.8%
6.1%
2008
-39.0%
-27.1%
0.1%
2009
31.1%
24.9%
8.4%
2010
18.5%
15.0%
6.4%
2011
-2.9%
-2.0%
3.7%
2012
16.7%
13.6%
5.7%
2013
32.0%
21.0%
-2.7%
2014
8.4%
5.9%
2.8%
19.3%
13.6%
3.3%
Statement of Activities
Standard Deviation2
as of December 31, 2014 and 2013
Average Annual Returns1 vs. Benchmarks3
Support and Revenues Contributions
2014 $
4,832,471
$
Year
Model E5
Benchmark
Model A6
Benchmark
Model F7
Benchmark
1 Year
8.4%
7.0%
5.9%
5.9%
2.8%
6.0%
2013
3 Years
18.6%
17.9%
13.3%
13.2%
1.9%
2.7%
5,140,188
5 Years
14.0%
13.3%
10.4%
10.5%
3.1%
4.4%
3.6%
4.7%
—
—
Dividend and Interest Income
1,499,708
1,327,821
10 Years
7.6%
7.0%
6.7%
6.6%
Net Gain (Loss) on Long-term Investments
2,384,891
9,705,730
19 Years
8.6%
8.3%
7.9%
7.9%
Reimbursements and Other Split Interest Agreements
Total Support and Revenues
$
931,922
1,371,885
34,601
3,538
9,683,593
$ 17,549,162
Expenses Grants and Program Services
$
6,978,420
$
8,584,416
General, Administrative and Fundraising
1,236,787
1,047,945
Total Expenses
8,215,207
9,632,361
Change in Net Assets
1,468,386
7,916,801
Net Assets, January 1
61,225,176
53,308,375
Net Assets, December 31
$ 62,693,562
$ 61,225,176
35 | Sustain - Statement of Financial Position/Historical Investment Performance
Benchmarks
55% S&P 500, 25% Russell 2000,
34% S&P 500, 19% Russell 2000,
100% BarCap US
20% MSCI-EAFE
17% MSCI-EAFE, 30% BarCap
Aggregate Bond4
US Aggregate Bond 1 - Results are net of fees included in the mutual funds but before TFEC’s fee for investment management and are as of 12/31/14. 2 - Standard deviation is a statistical measurement of the dispersion of investment returns over the 19-year period. Standard deviation does not indicate how investments actually performed, but merely indicates the volatility of their returns over time.
A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. 3 - Benchmark returns are unmanaged and do not incur fees. In 2004, the benchmarks were adjusted because small-cap and international allocations were increased. In 2003 and prior years, the Model E equity benchmark was 70% S&P 500, 20% Russell 2000 and 10% MSCI-EAFE, and Model
A’s benchmark was 49%, 33%, and 7%, respectively. 4 - To minimize market fluctuations, the fixed income component is invested in short- and medium-term funds, while the benchmark includes some longer-term bonds. 5 - 100% Equities 6 - 70% Equities & 30% Fixed Income 7 - 100% Fixed Income
The Foundation for Enhancing Communities - 2014 Annual Report | 36
Investing with TFEC
TFEC’s Assets
Robert Dolan, Investment Advisory Committee Chair
as of December 31, 2014 Total Assets
The past year has been a good year for investors in the U.S., the Dow Jones Index Fund was up by almost 10% for the year and the S&P 500 Index Fund was up more than 13%. The bond market remains strong, as interest rates of all durations remain at historically low levels. The international equity markets and domestic small caps have not fared as well; you can see the net effect in our Model E investment results on page 36 of the Annual Report.
“We have maintained our investment philosophy!”
Total Return Policy
With all that considered, our disciplined approach to passive investing has served us well. We continue to rebalance as cash becomes available, which has the effect of continuing to “buy low and sell high” as we keep our
Investment Strategy
1996
19+ yrs
Since 1996, TFEC has invested its assets according to “Total Return”. A total return policy treats all returns on investments – interest, dividends, realized and unrealized capital appreciation – as additions to principal. This spending policy allows for more predictable distributions over the long-term, and ongoing grant recipients are able to rely upon a relatively stable income stream.
In 1996, TFEC adopted a disciplined, passive investment strategy which suggests that we not try to outperform the market in any given year. In order to realize market returns and maintain diversification at the lowest possible cost, TFEC invests in no-load, low-expense mutual funds. These funds, from reputable companies such as Vanguard and Dimensional Fund Advisors, are held within separate asset-class pools.
37 | Sustain - Investment and Assets Information
assets properly diversified. We have maintained our investment philosophy! During the year we sold our entire stake in PIMCO in steps as a result of the management turmoil there. We have redeployed those assets into high quality and intermediate term bonds, keeping with our fixed income strategy. If you would like to receive quarterly updates about TFEC’s investment performance and a message from the Investment Advisory Committee, please be sure to signup online at www.tfec.org for any of the three Insider newsletters: Professional Advisor Insider, Donor Insider, or Community Insider (geared towards nonprofit organizations).
Investment Models
4 TFEC has four different models you can choose from to invest your fund: Model E, Model F, Model A and Model M. • Model E: 100% Equities • Model F: 100% Fixed Income • Model A: 70% Equities & 30% Fixed Income • Model M: 50% Money Market & 50% Very Short-Term Corporate Notes
$74,557,607
100%
6,557,025
8.79%
Donor Advised Funds
14,295,503
19.17%
20,852,528
27.97%
Agency Funds
6,453,255
8.66%
Area of Interest Funds
4,617,250
6.19%
Projects
1,960,472
2.63%
14,568,483
19.54%
8,833,475
11.85%
11,597,020
15.55%
5,597,646
7.51%
77,478
0.10%
Committee Advised Funds
Advised Total Assets
Restricted Funds Scholarship Funds Split Interest Agreements (Trusts) Unrestricted Funds Other Assets
Passive v. Active Management
S&P 500 S&P 500 index funds, a passive investment index, have outperformed 80% of the managed general equity mutual funds over the past twenty years. Similarly, the mid-cap and small-cap index funds have outperformed actively managed funds of similar investment guidelines. Part of this performance is due to lower fees charged against indexed funds, low commissions paid on security transactions, and little asset turnover.
Average Annual Returns v. Benchmarks
Investment Flexibility
1 year
4
Results are net of fees included in the mutual funds but before TFEC’s fee for investment management and are as of 12/31/14. • Model E: 8.4%; Benchmark: 7.0% • Model A: 5.9%; Benchmark: 5.9% • Model F: 2.8%; Benchmark: 6.0% Please see page 36 for the complete list of investment performance.
When you establish a fund, you can select a fund investment mix among four investment models. Each model is structured to have a different performance benchmark and volatility measure. For example, you can choose to invest your fund in Model E, Model F, Model A or Model M. You can divide your fund’s assets in any proportion among these four models.
The Foundation for Enhancing Communities - 2014 Annual Report | 38
New Funds Established in 2014
Restricted Funds •
love for soccer, and recognize those who reflect his values of good sportsmanship and teamwork in a positive environment. Through soccer, he would take the opportunity to bring kids together and
Agency Funds •
overlook their differences. The award will be presented annually to one selected college bound soccer player from East Pennsboro High School.
Mt. Gretna School of Art Fund: This fund helps to strengthen and sustain the Mt. Gretna School of
•
Art’s mission to provide a top quality art curriculum that significantly advances the skills and knowledge programming of the community.
•
Rebecca Engle Memorial Fund: This fund was established to raise brain cancer awareness and to provide awards to select graduating seniors of Central Dauphin High School in Rebecca’s name.
Sexual Assault Resource Center: This fund was created to support the Sexual Assault Resource and
Awards will be given to students who exhibit the attributes and characteristics that defined Rebecca:
Counseling Center’s mission of educating the community in primary prevention skills to end sexual
inspire others, offer encouragement, and have a true desire to help people in all aspects of life.
violence. •
Bill Lehr Fund for the Arts #2: This fund was established to annually benefit a predetermined list of arts and culture nonprofit organizations in the Greater Harrisburg Area.
of talented and motivated students and, concurrently, enhances the cultural and educational •
Adiv Vivek Lift Soccer Award: This fund was established in memory of Adiv to honor his spirit and
St. Paul’s Lutheran Church Fund #2: This fund was established to support the church’s local and worldwide mission as well as provide scholarships to individuals.
•
St. Paul’s Lutheran Church Fund #3: This fund was established to support church operations.
Committee Advised Funds •
Mary C. Eberly Fund
Maple Hill Fund: The Maple Hill Fund, established by Vermont residents Linda Miller (a native
When I was asked to be an Advisory Committee member of the Mechanicsburg Area Foundation, I was honored because I knew many of the current and past members and the positive change that the Mechanicsburg Area Foundation was creating in our local community. I created the Mary C. Eberly Fund to help the annual grantmaking efforts of the Mechanicsburg Area Foundation. I chose an unrestricted fund because I wanted the Advisory Committee to decide each year where the funds were most needed in the community.
of Harrisburg) and Rob Adelberg, contributes to nonprofit organizations addressing problems
—————————
Emerging Philanthropists Fund: The Emerging Philanthropists Fund was created in 2014 by the inaugural class of the Emerging Philanthropists Program (EPP). EPP is a partnership between The Foundation for Enhancing Communities and the Harrisburg Young Professionals and was established to engage and educate Harrisburg’s emerging business and community leaders to develop a deep understanding of the needs of the community and the benefits of philanthropy.
•
of economic and social inequity, promoting positive futures for undervalued and disadvantaged individuals, protecting the welfare of animals, preserving areas of undeveloped natural landscape, and supporting the improvement of the health and well-being of persons in sudden and ongoing distress in the underdeveloped world.
Donor Advised Funds •
“I wanted my funds to be unrestricted so they can be used where the funds are needed the most in the community.”
Form Foundation Fund: In the process of taking materials and forming them into works of art, the artist is also transformed. The Form Foundation Fund is dedicated to providing the resources needed to share this inspirational practice with others. Their mission is to expand access to three-dimensional art and share the skills required to make three-dimensional art in the workshop environment where collaborative practice is used by artists to teach, learn and inspire.
•
McLemore Family Fund: This fund was established to support various nonprofit organizations of the
- Mary C. Eberly
donor family’s choice. 39 | Sustain - New Funds
The Foundation for Enhancing Communities - 2014 Annual Report | 40
•
New Projects Established in 2014 TFEC manages projects that provide charitable benefits for the community; because TFEC is the project’s fiscal sponsor, gifts to a project are taxdeductible.
Through a project agreement, TFEC can pay for eligible expenses related to the project’s goals and the net proceeds can be used to create a charitable fund at TFEC or be distributed to another nonprofit organization. TFEC provides objective fiscal oversight and expertise in order to ensure legal and accounting compliance. TFEC
John R. Fenstermacher Memorial Golf Tournament: The project will support research at Penn State Hershey through the John R. Fenstermacher Head and Neck Cancer Research Endowment.
• manages over 60 projects totaling $2 million in assets (12/31/14). Grants, totaling $503,430, were made in 2014 from these projects to various nonprofit organizations such as Penn State Hershey Children’s Hospital, Four Diamonds Fund, and Domestic Violence Services of Cumberland & Perry Counties.
Make a Mark for Mark: The project provides education and resources to break down the stigma surrounding depression, mental illness and suicide.
•
Operation Give Back: The project will provide aid, financial assistance, and support to individuals with injuries, disabilities and other impairments. Grants will be made to organizations such as PA Veterans Foundation, Autism Speaks, and first responder departments located in Lebanon/Dauphin Counties.
•
PA United Cricket Association: The project will educate the public about the benefits of Cricket and train young people to enjoy the game and increase their physical activity.
•
Pennsylvania Women’s Forum: The purpose of the Forum is to provide nonpartisan analysis and research through a quarterly luncheon series that features a panel of experts who will examine broad
•
Alpaca Fiber Designs: The project provides an integrated customized employment setting to enhance the lives of persons with disabilities and empower individuals to achieve vocational independence and be contributing members of their communities.
•
•
Springhill Center for Recreation and Education: The purpose of the project is to provide Bradford County and the surrounding communities with affordable outdoor recreational and educational
Capitol Area Forerunners: The leaders of the project will provide guidance, encouragement and build a helpful relationship between the coach and the athlete that will foster an atmosphere for athletic and personal growth.
•
social and economic problems and solutions to public policy challenges facing PA women and families.
experiences.
Linglestown 250th Anniversary
Chester County Cheese Artisans: The charitable purpose of the project is to provide educational opportunities for farmstead and artisanal cheese makers to improve their cheese making skills,
The purpose of this project is for the development and beautification of the Village of Linglestown as well as education regarding Linglestown’s diverse and unique history. In 1765, Thomas Lingle purchased a large tract of land and divided it into 80 plots to establish the Village of St. Thomas. Today that area is known as the Village of Linglestown. Together, its community will celebrate the 250th Anniversary of Linglestown in 2015.
increase production, and provide informational opportunities for consumers to learn about the nutritional and economic benefits of buying local cheese. •
City Hall Beautiful Committee: The project will solicit funds from private donors to repair, improve and beautify the Dr. Martin Luther King, Jr. Government Center and the Public Safety building.
•
Conley Cushing’s Disease Fund: The project raises money to provide support to nonprofit organizations, foundations or centers that have a direct or indirect focus on Cushing’s Disease.
•
Downtown Hershey Association: The purpose of the project is to respect and preserve the unique
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heritage bequeathed by Milton S. Hershey through revitalizing Hershey’s downtown community. •
Earl S. Punchard CHOP Invitational: The project will host a golf tournament to support research at the Oncology Department of the Children’s Hospital of Philadelphia.
•
Farmers Market in Hershey & Summer Concert Series: The purpose of the project is to assist the
Jenkins Strength: The charitable purpose of the project is to provide public high schools in Dauphin
“I have enjoyed working with TFEC; they have given me the guidance and support to accomplish our huge community event.”
County with donations to purchase, upgrade and/or replace strength training equipment to be used by
Farmers Market in Hershey & Summer Concert Series in making a significant contribution to the long-term health of the region by providing a mix of healthy lifestyle opportunities in the Hershey area. •
Gray for Becca: The project supports the Rebecca Engle Memorial Fund, and makes awards in Becca’s memory to Central Dauphin High School, the Hershey Jr. Bears youth ice hockey program, and various brain cancer research efforts.
•
- Polly Murphy, Co-Chair
their students. The grants will be given to the schools in memory of Michael Jenkins. 41 | Sustain - New Projects
The Foundation for Enhancing Communities - 2014 Annual Report | 42
Management Service Agreements
2015 Board of Directors
For foundations and nonprofit organizations TFEC provides an array of services for nonprofit organizations or private foundations.
Through this contractual relationship, a personalized package including options from accounting services to investment management is created, providing
efficient financial administration. TFEC currently administers 17 management services agreements, with assets totaling $36.9 million (12/31/14).
Harrisburg Academy Foundation This year marks the 10th year of TFEC’s management of all endowed resources of the Harrisburg Academy Foundation. The Harrisburg Academy Foundation has fiduciary responsibility for the endowment of Harrisburg Academy. During the past 10 years, Harrisburg Academy Foundation’s endowment has nearly doubled. The endowment serves as a source of non-tuition revenue to supplement enrollment tuition paid by the families of all students. The Academy’s endowment funds student scholarships, educational programs for students in preschool through 12th grade, faculty salaries, and events. Harrisburg Academy is the area’s only independent school and the 17th oldest non-public school in the nation. Their coed, diverse school community inspires students from age three through 12th grade by providing an academically challenging and globally minded liberal arts education focused on dynamic classroom experiences, strong student outcomes, and a commitment to character development. Currently, their student body draws from 27 school districts and 6 counties in the midstate. Harrisburg Academy’s current Head of School is Dr. Jim Newman.
Standing (left to right):
Cynthia T. Tolsma
Not Pictured:
Spencer G. Nauman, Jr., Esq.
Seated (left to right):
Cate Barron
Dr. Carolyn Dumaresq, Asst. Secretary
Karen F. Snider
Steven M. Hoffman, CPA, Treasurer
Barbara A. Darkes, Esq.
L. Jeffrey Mattern, Vice Chair
Dolly M. Lalvani, Asst. Treasurer
Glenn P. Heisey
Kathy L. Pape, Chair
Neal S. West, Esq. Secretary
Nancy J. Glen
David A. Schankweiler
Marilynn Abrams
Michael R. Gillespie
Director Emeriti John M. Aichele*
William Lehr, Jr.
John McD. Sharpe, Jr., Esq.
William H. Alexander
Jacqueline Little
Conrad M. Siegel
Tita Eberly
Harold A.B. McInnes
Elsie W. Swenson*
Gerald L. Hempt
Claude E. Nichols, M.D.*
Mary A. Simmonds, M.D.
Ellen Brody Hughes
John S. Oyler, Esq.
Nathan H. Waters, Jr., Esq.
Raymond L. Gover
Velma A. Redmond
Jonathan Vipond, III, Esq.
Lois Lehrman Grass
John M. Schrantz
Mary Webber Weston *Deceased
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2015 Standing Committees Asset Development Committee
“Our ten-year experience with TFEC has been successful and quite beneficial to the operation of the Academy.”
- Seth Mendelsohn, President, Harrisburg Academy Foundation
43 | Sustain - Management Service Agreements/2015 Board of Directors and Standing Committees
Kenneth E. Lehman, Chair
Bob Haigh
David W. Sweet
James D. Cameron
L. Jeffrey Mattern
Jonathan Williams, CFA, CPA
Nancy J. Glen
Mike Murtha
Audit Committee Michael R. Gillespie, Chair
William Lehr, Jr.
Dolly M. Lalvani
Kenneth E. Lehman
Anthony L. White
The Foundation for Enhancing Communities - 2014 Annual Report | 44
Communications Committee David A. Schankweiler, Chair
Bob Hostetter
Jeffrey Ritchie, Ph.D.
Lynn Burkholder
Nicholas D. Hughes
Morton Spector
2015 TFEC Staff and Consultants
Finance and Administration Committee Steven M. Hoffman, CPA, Chair
David M. Kleppinger, Esq.
David A. Schankweiler
Dorothea Aronson
Dolly M. Lalvani
Cynthia T. Tolsma
Robert J. Dolan
L. Jeffrey Mattern
Human Resources Committee Kathy L. Pape, Chair
Dr. Steve C. MacDonald
David M. Kleppinger, Esq.
Velma A. Redmond, Esq.
David A. Schankweiler
Investment Advisory Committee Robert J. Dolan, Chair
Howard Hamann
Peter J. Ressler, Esq.
Robert E. Caplan, CFA
Glenn P. Heisey
Conrad M. Siegel
Joy B. Dougherty
Kenneth E. Lehman
Jonathan Vipond, III, Esq.
Frederick D. Fischer
William Lehr, Jr.
Jonathan Williams, CFA, CPA
Nominating Committee David M. Kleppinger, Esq., Chair
David A. Schankweiler
Jonathan Vipond, III, Esq.
Velma A. Redmond, Esq.
Staff Front Row (left to right): Jennifer Doyle, Director of Development & Community Investment Allison Moesta, Program Officer for Educational Enhancement James Kroll Lloyd, Communications Officer Janice R. Black, President and CEO
Professional Advisors Council Spencer G. Nauman, Jr., Esq., Chair
Donald M. Healey
Peter J. Ressler, Esq.
Robert E. Caplan, CFA
Steven M. Hoffman, CPA
Elyse E. Rogers, Esq.
Robert R. Church, Esq.
Richard K. Hoskinson, Esq.
Kevin M. Scott, Esq.
Michael B. Devlin, CPA
Robert J. Langan, CFS, CSA
Stanley A. Smith, Esq.
Donald E. Failor, CLU
LeRoy (Tucker) S. Maxwell Jr., Esq.
Richard W. Stevenson, Esq.
Frederick D. Fischer
Elizabeth P. Mullaugh, Esq.
Vicky Ann Trimmer, Esq.
Jeanne Predmore, Project Manager, Capital Beginnings
Deb Fulham-Winston, Asset Development & Project Officer
Kirk Demyan, Chief Financial Officer
Brandon Tressler, Financial Services Associate
Back Row (left to right): Mark Bradshaw, Administrative Assistant Jim Martin, Senior Financial Advisor Chera Yankowski, Executive Assistant
Jennifer Kuntch, Program Officer for Community Investment Not Pictured: Leslie Fick, Program Manager, Parents & Partners
Consultants Brian Hess, The ENVISION Group, Inc., Print Support Spencer G. Nauman, Jr., Esq., Nauman, Smith, Shissler & Hall, LLP, General Counsel
Conrad M. Siegel, Conrad Siegel Actuaries, Consulting Actuary and Founder
Pipeline Interactive, Website Support IntermixIT, IT Support
Maher Duessel, Auditor FGV Media, Website Support
TFEC Properties Real Estate Holding Company Advisory Committee Neal S. West, Esq., Chair
Mark D. Hipp, Esq.
George A. Parmer
Bernie Campanella
Allen E. Hench
Peter J. Ressler, Esq.
J. Stephen Feinour, Esq.
Randall G. Hurst, Esq.
Kevin M. Scott, Esq.
Robert C. Grubic
Elizabeth P. Mullaugh, Esq.
Lane Schultz
Kathy L. Pape, TFEC Board of Directors Chair, serves as ex officio on all committees.
For a complete listing of all funds, please visit our website at www.tfec.org.
45 | Sustain - 2015 Standing Committees/2015 TFEC Staff and Consultants
The Foundation for Enhancing Communities - 2014 Annual Report | 46
Learn more at www.tfec.org.