2006 ANNUAL REPORT

MISSION STATEMENT

The mission of The Community Foundation of South Puget Sound is to strengthen Lewis, Mason and Thurston Counties by connecting donors with causes that matter, encouraging the growth of permanent charitable funds, providing wise stewardship of those funds, engaging in strategic grant making, and providing leadership to address community needs.

2006 Board of Directors

Don Rhodes

Past Chairman

Kimberly Ellwanger

Chairman

Brian Fluetsch

Vice Chairman

Jacki Gavin

Secretary

John Clees

Treasurer

Nancy Anderson

Blase Gorny

David A. Hayes

Robert Kagy

Amee Keifer

Carolyn Lakewold

Marsha Tadano Long

Dan O’Neill

Rick Panowicz

Larry Poplack

Sally Warjone

Gayle Weston

Bret Wilhelm

2006 HIGHLIGHTS

• Distributed $334,000.00 from all funds

• Awarded 33 scholarships to local students

• John and Opal McGimpsey established the John and Opal McGimpsey Scholarship Fund

• Don Rhodes established the Chet Rhodes Family Chehalis Area Fund and the Don Rhodes Family Fund, both donor advised funds.

• Griffin School Foundation and an anonymous donor established a new scholarship

• The first distributions were made from the Thurston Mason Medical Alliance Fund established in 2005

• The first grants were made from the Gail Wyman Advised Fund established in 2005— $25,000 to 6 local nonprofit organizations

• Hosted dinner at the Executive Mansion—raised $19,000 for new Community Youth (Endowment) Fund

“...no one can function without the help of others,

and we are very grateful for your help to our agency.”

- from thank you letter to Gail Wyman

Welcome!

Your community’s foundation, the Community Foundation of South Puget Sound, completed its seventeenth year of service to communities in Thurston, Mason and Lewis counties. 2006 confirmed anew that the Foundation will continue for a limitless time down the path of “giving back” because of your generosity as donors who support causes you care about.

2006 was a year of significant growth for the Foundation. For the first time, the Foundation’s assets exceeded 4 million, ending the year at slightly over $5 million. You gave over 1,336 gifts in 2006. Each gift was added to the specific fund you designated.

Gifts in 2006 included the establishment of a new scholarship fund, the John and Opal McGimpsey Scholarship Fund, for graduates of North Thurston and Olympia High Schools. This scholarship may be renewed for up to four years and will provide a maximum of $10,000 per year. The first recipients will be selected in May of 2007.

Also in 2006 the first fund designated for Lewis County was established by former Chehalis resident, Don Rhodes. Seeking a way to involve his sons in his charitable giving decisions, Don set up an endowed donor advised fund from which he and his sons will recommend grants to nonprofit organizations in the Chehalis Area School District.

Grants were made for the first time from the Thurston Mason County Medical Alliance Fund and the Gail Wyman Advised Fund. Established in 2005, these 2 funds recommended 12 grants totaling $29,000 to agencies in Thurston and Mason counties.

As we moved into 2006, we recognized two individuals who gave so generously of their time and talent to The Foundation for many years. We thanked outgoing board members, Gordon Shewfelt and Brian Charneski for their service. Brian, a Foundation founder, remains involved through the family charitable funds established at the Foundation, the L & E Bottling Scholarship Fund and the Charneski/L&E Bottling Holiday Support Fund. Gordon continues to serve as a member of the Financial Management Committee.

Three new board members were welcomed in 2006, Larry Poplack, Principal, Cooper Point Advisors; Gail Weston, Vice President, Key Bank in Shelton, and Bret Wilhelm, Principal, Wilhelm Financial Management, LLC. Their financial expertise and knowledge of investing strengthen the Board’s management capabilities.

We are grateful for the outstanding leadership of Kimberly Ellwanger who ended her two-year term as Board Chairman. Kimberly will continue to serve on the board as Past Chairman.

Thank you for the privilege of serving you through the Community Foundation of South Puget Sound. We want you to know that the Community Foundation is

your community’s foundation

for good

for ever.

John A. Clees Norma Schuiteman

Board Chairman Executive Director

COMPONENT FUNDS The term “fund” is used to describe an account within the Foundation created by the contributions of a particular donor or group of donors. Most component funds of the Foundation are permanent endowment funds. Their principal is invested, and a percentage of the earnings is distributed in grants or scholarships each year. Other components funds are non-endowed or pass-thru. The principal generally is available for distribution every year..

Donor Advised Funds Donors help choose

organizations each year to

receive grants from their

fund.

Anonymous Robert & Lynn Brunton

Advised Fund Charneski/L&E Bottling

Company Holiday Support Fund

Jack & Luellen Charneski Charitable Fund

Rachel Corrie Memorial Fund

Kimberly Ellwanger Fund for Women and Children Fund

Griffin School Foundation Fund

Harold J. and Inge Marcus Donor Advised Fund

Mason County Counseling Resources Fund

Dennis and Joan Peterson Family Advised Fund

Chet Rhodes Family Chehalis Area Fund

Don Rhodes Family Fund

Thurston County Women in Service to

Children & Families Thurston Mason County

Medical Alliance Fund Warjone Family Advised

Fund Gail Wyman Advised Fund Gail Wyman Endowment

Fund

Designated This type of fund restricts

the distributions to a

specific charitable entity,

providing a on-going source

of funds for that agency. Dallas & Marguerite

Edwards Memorial Scholarship Fund

William A. Lovett Fund for Olympia Early Learning Center

Olympia Downtown Association

PARC Operations PARC Olympia Parks PARC Youth Outdoor PARC Simple Gifts

Schorno Family Yelm Scholarship Fund

South Sound Alzheimers Council

Helen & Harold Wolf Memorial Scholarship Fund

Agency Funds The Foundation holds and

manages endowments for

local nonprofit

organizations.

Andy Crow Wurlitzer Organ Fund - Washington Center

Concern for Animals Hands on Children's

Museum Mason General Hospital

Foundation Endowment Fund

Masterworks Choral Ensemble Endowment Fund

PARC Foundation Endowment Fund

Senior Services for South Sound Endowment Fund Senior Services for South

Thurston County Sheriff’s Jeep Patrol

COMPONENT FUNDS

Sound/STARS Endowment Fund

Thurston Community Television Endowment Fund

Thurston County School Retirees Association Endowment

YWCA of Olympia Women’s Community Endowment Fund

Unrestricted This is the most flexible type

of fund for the Foundation.

Quality of life for our

posterity can be provided

through current donors’

wise realization that needs

will emerge which could not

have been anticipated.

Unrestricted funds allow the

Foundation’s Board of

Directors to make grants

addressing the community’s

needs as they change over

time.

Coldwell Banker/Evergreen Olympia Realty Fund

Community Foundation Program Endowment

Marco J. Heidner Charitable Trust

Charles L. Trowbridge Memorial Endowment

Field of Interest The Foundation awards

grants to organizations

within a -specified area of

concern and/or geographic

area. Examples of fields of

interest include arts,

education, and the

environment, but does not

name specific agencies. This

fund’s wisdom lies with the

flexibility it permits for the

future.

Walter A. Bratton Youth Endowment

Community Youth Fund

Fiscal Sponsor The Foundation acts as the

umbrella for groups that do

not yet have their own

501(c)(3) IRS charitable

designation.

Capital Kids Connection Friends of Artesians Friends of GREEN (FROG) South of the Sound

Community Farmland Trust

Sustainable Community Roundtable

Scholarships This is a type of advised

fund that provides

individuals, families,

organizations and

companies the opportunity

to offer financial support to

students.

Walter A. Bratton Business Week Scholarship Fund

Chehalis Activators Fund Cody Brown Memorial

Scholarship Fund Ellen Anderson deMoise

Scholarship Fund Grade 13 Fund William and Dorothy Judah

Scholarship Fund L&E Bottling

Scholarship Fund Lakefair Scholarship Fund Learning Seed Foundation

Scholarship Fund John & Opal McGimpsey

Scholarship Fund Dan R. Montgomery

Scholarship Fund North Olympia Fire

District-Rod Hetland Memorial Scholarship

OHS - Alfred Lewis Memorial Scholarship Fund

OHS - Chris Peters Memorial Scholarship Fund

OHS Faculty Memorial Scholarship Fund

OHS - John G. Creighton Ex-POW Scholarship Fund

OHS – Laurie Callaghan Memorial Scholarship Fund

OHS Scholarship Fund Olympia Kiwanis

Scholarship Fund Cliff Tanasse-Remodeler’s

Council Scholarship Fund (Yakima)

Sonja Triplett holds a new

Cavitron.

SCHOLARSHIPS

Individuals, families, businesses, schools and community groups can create scholarship funds and participate in the selection of recipients. In 2006 donors provided scholarships totaling $28,400.00 to 33 students. These gifts came from 13 separate funds, each established according to the wishes of the donors.

Ellen Anderson deMoise - $1,000 (Lewis County)

Katherine Wright Mossyrock University of Portland

Caitlin Forsyth W F West U of California, San Diego

Katie Adolphsen W F West Western Washington University

Cody Brown Memorial - $1,000 (for graduates of Griffin School)

Brian White Capital The Evergreen State College

Dan R. Montgomery - $1,000 (law enforcement & criminal justice)

Johnathan Brazel Olympia South Puget Sound CC

William and Dorothy Judah - $1,000 (Thurston County)

Chelsea Vaughn Rochester Smith Women’s College

Learning Seed Foundation - $1,000 -(renewable)

Kesha Bivens Temple University

Johnny Bullock Eastern Washington U

Kari Cason Seattle University

Erica Curry University of Washington

Remeka Jones Xavier (Los Angeles)

Thanh-Nhat Le University of Washington

Dennis Tran University of Southern California

Jalisa Bullock W Wilson Tacoma Community College

Darcel Carter W Wilson Washington State University

Grace Crumpton Tacoma School of Arts New York University

Katrana De’Armanni North Thurston South Puget Sound CC

Sarrah Hashim Yelm Western Washington University

Renisha Johnes River Ridge Paine College

Thanh C. Le Capital University of Washington

Ngoc Ngo Capital U of North Dakota-Grand Forks

Rachel O’Flaherty Capital Western Washington University

L&E Bottling Company - $1,000 (Thurston County)

Alex McCarty Timberline Washington State University

OHS—Alfred “Dick” Lewis - $500.00

James Sung Olympia University of Washington

OHS—John G. Creighton Ex-POW - $1,000.00

Megan Thompson Olympia Washington State University

OHS—Laurie Callaghan Memorial - $1,000

Kathyrn Mertins Olympia Washington State University

HELP BUILD TOMORROW…

SCHOLARSHIPS

COMMUNITY GRANTMAKING Investing in Lewis, Mason and Thurston Counties Unrestricted funds allow the Foundation’s Board of Directors, through its grants process, to distribute funds at its discretion. These important funds give the Foundation the flexibility to respond quickly to emerging needs and changing priorities. The Grants Committee selected 30 organizations to receive funding as part of the Discretionary Grants Program. .Several grant requests received were funded all or in part by the Warjone Family Advised Fund, the Gail Wyman Advised Fund and the Thurston Mason County Medical Alliance Fund.

OHS—Chris Peters Memorial - $1,500

Dan Phillips Olympia Western Washington University

OHS Faculty Memorial Award - $300

Aaron Bray Olympia Yale University

North Olympia Fire Dept. Rod Hetland Memorial - $150.00

Sarah E. Boyle The Evergreen State College

Michelle Gerth Boise State University

Noella Gaston South Puget Sound CC

Chelsey Parvinen University of Portland

Cliff Tanasse Remodeler’s Council - $500.00

Jlyn A. Clark West Virginia School of Osteopathic Medicine

You cannot do a kindness too soon, for you never know how soon it will be too late.

- Ralph Waldo Emerson

Behavioral Health Services

$3,000 for 2-1-1 call service accreditation support and staff training

Big Brother Big Sisters of

Thurston County

$2000 for mentoring programs

Child Care Action Council

$3000 for Raising a Reader program

Child Care and Educational

Services (funded by Warjone

Family Advised Fund)

$5,000 to expand Kinship

program to Mason County (grandparents raising children)

Columbia-Pacific RC&EDD

$750 for Board governance and strategic planning workshops in Mason County

East Lewis County Chamber of

Commerce

$1,500 for support of area-wide planning workshop

Exceptional Foresters

Incorporated

$3,000 for furniture for group homes

Friends of Green (FROG)

$1,500 for operating support for South Sound Green environmental education program for children

Garden Raised Bounty (GRuB)

$2,000 match to support USDA grant request for mentoring of youth through growing sustainable gardens

Girl Scouts Pacific Peaks

Council

$3000 for Girl Scout Outreach to girls 5-17 in low-income,

COMMUNITY GRANTMAKING

underserved neighborhoods

Gleaners Coalition

$2,500 for Americorp and part-time Executive Director positions

Harlequin Productions

$2,000 for purchase of new telephone system

Harmony Hill

$2,000 for cancer support programs

Horsepower! A Therapeutic Riding

Program

$1775 for equipment

Left Foot Organics

$4,000 for wages for at-risk teenagers & developmentally disabled adults

Mason County Literacy

$2,500 to support hiring of staff/volunteer trainer for computer literacy program

Olympia Film Society

$1,000 to assist foreign language studies in the high schools through support of foreign language film festival

Olympia Union Gospel Mission

$1700 for Cavitron purchase

SafePlace

$2500 for Client Assistance Fund

South Sound Reading

Foundation (funded by Gail Wyman

Advised Fund)

$2,500 for “Book Boxes for Literacy” program

Student Orchestras of Greater Olympia

(SOGO)

$600 for Side-by-Side Program for underprivileged beginning elementary string students

South Puget Sound Intertribal Planning

Agency

$2,000 for a women and girls gathering to promote spiritual wellness and intercultural communication

The Evergreen State College Foundation

$1,000 for the Silk Roads Program

Theler Community Center & Wetland

Trails

$3,500 to purchase tents, cots and other emergency shelter supplies

Thurston County Food Bank

$3,000 purchase food, primarily perishables

Thurston County Sheriff’s Jeep Patrol

(funded by Gail Wyman Advised Fund)

$2,500 for purchase of an automatic external defibrillator

Thurston Volunteer Legal

Service Foundation

$1,200 for legal services to low-income people

United Communities AIDS

Network

$2,000 to fund Youth AIDS Collective project

Village to Village $2,000 for Diversity Summit for high school students and advisors

Washington Center for the

Performing Arts

$2,000 for a ticket subsidy program to help introduce school children to the arts

Wolf Haven International

$1,000 to expand conservation and education programs

YMCA Senior Companion

Program

$2,500 for volunteer support services for seniors caring for vulnerable and at-risk adults Fund

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The American Heart Association Behavioral Health Resources* Boys & Girls Club of Thurston County* Capital Kids Connection Centralia Community College Child Care and Educational Resources City of Olympia Community Youth Services* Concern for Animals Friends of Artesian Friends of GREEN Friends of Olympia Farmers Market Garden Raised Bounty Girl Scouts Pacific Peaks Council Hands On Children’s Museum Harmony Hill KPLU FM 88.5 Lacey Parks & Recreation Learning Seed Foundation Mason County Counseling Resources Parent to Parent

Providence St. Peter Foundation SafePlace Senior Services for South Sound* South Puget Sound Community College South Sound Alzheimers Council South Sound Reading Foundation Steamboat Island Cooperative preschool Tacoma Art Museum Thurston County Sheriff’s Jeep Patrol Thurston County Volunteer Legal Services TOGETHER! - Little Red Schoolhouse Tumwater Parks & Recreation Department Union for Reform Judaism United Aids Community Network—UCAN Washington Center for the Performing Arts YWCA of Olympia Yelm Dollars for Scholars

DONAR ADVISED GRANTMAKING

Individuals, families, businesses and associations can experience the joy of charitable giving by providing recommendations from their fund to the community Foundation Board of Directors. Often used in lieu of establishing private foundations, a donor advised fund allows donors to be involved in supporting causes they care about without the burden of the administrative work. Distributions from donor advised funds, excluding scholarships, were made to 39 nonprofit organizations providing services in the region and across the nation. The minimum for this type of fund is $10,000.

Jennifer Black participates in the Side-by-Side

Program funded with an unrestricted grant to

Student Orchestra of Olympia.

The East Lewis County Economic Development

Summit held in September was supported by a

grant from the Foundation.

ASSETS Current assets Cash $ 1,027,395 Pledges receivable 58,000 Investments 3,932,801 Prepaid Expenses 4,744 Total current assets 4,922,940 Property and equipment Furniture and equipment 64,672 Leasehold improvements 44,165 108,837 Less accumulated depreciation (58,227) 50,610 Non current pledges receivable 5,700 Trust receivable 31,711 $ 5,010,961 LIABILITIES AND NET ASSETS Current liabilities Accounts payable $ 10,676 Accrued liabilities 8,316 Deferred pledges 76,050 Funds held for other agencies 193,616 Current portion of long-term debt 4,500 Total current liabilities 301,588 Long-term debt 17,430 Total liabilities 301,588 Net assets Unrestricted fund balance 4,677,663 Temporarily restricted fund balance 31,711 Total net assets 4,709,373 $ 5,010,961

Giving frees us from the familiar territory of our own needs by opening our mind to the unexplained worlds occupied by the needs of others. - Barbara Bush

FINANCIAL REPORT

The investment policy of the Community Foundation of South Puget Sound is similar to that of most community foundations, having a diversified and balanced portfolio of about 70% stocks and 30% bonds. The objective of the investment policy of the Community Foundation is to provide a return that will preserve and grow the Foundation’s assets, while providing a consistent stream of revenue for grant making. Annual distributions by the Foundation are generally calculated at 4 to 5% of the fair market value of each endowed fund. When annual earnings exceed the current year’s distributions, the excess is reinvested in the fund. Earnings for 2006 were 13.9%. This principal will in turn increase future grants from each individual fund. This strategy is intended to help grow fund assets, thereby ensuring that the funds can fulfill their purpose in perpetuity.

110 Market Street NE · Suite 375 · Olympia, WA 98501 · (360)705-3340 · Fax: (360)705-2656 · Email: legacy@thecommunityfoundation.com

www.thecommunityfoundation.com