Quarterly UpdateFourth Quarter, October 1 — December 31, 2011

A Quarterly Update for Triangle Community Foundation Fundholders and Successor Advisors

A Message From the President

This January has seen the passing of one of our region’s most noted philanthropists, Mary Duke Biddle Trent Semans. An heir to extraordinary wealth and privilege, she eschewed the society life and devoted herself to a life of service. She was a champion of the arts and education, and fought for civil rights, affordable housing, cultural enrichment opportunities, and accessible medical care for all. The founder of the Mary Duke Biddle Foundation, and longtime board member of Lincoln Community Health Center, Mrs. Semans served as a trustee and advisor to dozens of institutions, including the NC Museum of Art; the NC Symphony; and the National Humanities Center. She was instrumental in establishing the Nasher Museum of Art, the Sarah P. Duke Gardens, the Durham Arts Council, and the NC School of the Arts, the nation’s first state-supported conservatory. Among other organizations, the family requests that memorial donations be made to the Frank Neelon Fund for Literature in Medicine, c/o Triangle Community Foundation.

While most of us do not have the resources of a Mary Duke Biddle Trent Semans, we can work together to make our community a better place for all. Our 2011 annual report, Connecting for Impact, will be arriving at your home soon. Only by connecting with one another and working together will we be able to have a significant impact on the critical needs as well as future opportunities in our community.

The Foundation’s total assets for the quarter ended December 31, 2011 were $140.1 million. Total gifts were $7.4 million, compared to $4.0 million during the same period last year. Total grants were $4.1 million compared to $5.1 million during the same period last year. We are pleased to report that gifts to the Foundation for the fiscal year to date (July 1 – December 31) totaled $10.4 million, reflecting a 25% increase in contributions from this same timeframe last year. As always, we anticipate that this increase in giving will result in increased grantmaking for the months to follow, as our fundholders put their charitable assets to work in our community.

We have recently launched an e-newsletter to keep you more connected with the foundation. If you are not receiving it, please visit our homepage at www.trianglecf.org and sign up today. We hope you will enjoy learning more about the work of the foundation and with sharing it with others who may be interested in joining our family of philanthropists.

Thank you for your generous support of Triangle Community Foundation and community-based philanthropy.

Phail Wynn, Jr. Interim President and CEO Immediate Past Chair, Board of Directors

Phail Wynn, Jr.

Kudos

Our hearty congratulations to fundholders Ron and Jeannette Doggett who received the 2011 Hunt-Morgridge Award from the Food Bank of Central and Eastern North Carolina in a ceremony on February 2, 2012. Unwavering advocates for over 15 years, the Doggetts have exemplified leadership and dedication through board service, significant contributions of time, talent and treasure, and their tireless work on two capital campaigns. Both Ron and Jeannette continue to serve on the Food Bank’s Executive Roundtable.

Kudos to Jim Goodmon, president and CEO of Capitol Broadcasting Co., who received the prestigious Pillar Award for his work to develop the American Tobacco Campus in Durham. The Pillar award, the top Triangle Business Journal SPACE Award, honors an individual chosen for their commitment to community service, real estate industry service and leadership.

Jim Goodmon with Wool E. Bull in TCF’s Goodmon Lounge

2 | Quarterly Update

New Funds for this Quarter

A-Squared Fund: A donor-advised fund established by Andrea Selch and Anita Mills to support the organizations and causes important to them.

BenAdd Fund: A donor-advised fund created to support the causes and organizations of an anonymous donor.

Frank K and Carolyn H Borden Fund: A donor-advised fund created by the Bordens to support agencies and programs of interest to them.

Eagan Family Fund: A donor-advised fund created by Dennis and Sally Jo Eagan to support organizations and causes they care about.

NJAA Park Fund: An agency fund created by Northern Junior Athletic Association to support its efforts to build the Bahama Community Park.

Lisa and David Price Family Fund: A donor-advised fund established by Congressman Price and his wife Lisa to support the causes and organizations important to them.

Staab Family Fund: A donor-advised fund created by Tom and Landra Staab to support charitable interests of his family.

M. Jack and Dorothy S. Stephens Fund: A permanent endowment fund created by the terms of Mrs. Stephens’ will to support two Holly Springs churches and nonprofit organizations serving disadvantaged residents of southern Wake County.

Ann & Girard Tillery Scholarship Fund: A scholarship fund created by Ann Tillery to provide scholarships to undergraduate students from Wake, Durham, Orange, and Chatham Counties to attend NC colleges, universities, or community colleges selected on need-based and merit-based criteria.

The Wallace Fund for Youth: A field of interest fund created by The Wallace Foundation in honor of Christine DeVita’s retirement from the Foundation’s presidency and 30 years of service. The Wallace Fund for Youth will benefit youth in the Triangle region of North Carolina through grants, research, and convenings in the community.

A total of ten new funds were created during this quarter. We welcome these fundholders to Triangle Community Foundation.Jim Goodnight,

co-founder and chief executive officer of SAS, has been named to the North Carolina Business Hall of

Fame. We are proud to partner with SAS in the SAS Championship, a PGA Champions Tour event, held annually at Prestonwood Country Club in Cary. Triangle Community Foundation is honored to be the charitable beneficiary of the SAS Championship for the 11th consecutive year. Since the tournament’s inception in 2001, SAS has donated more than $3 million in tournament proceeds to educational initiatives for youth through its SAS Charitable Fund at the Foundation.

NC State’s Park Scholarships Class of 2012 has selected James A. Joseph, TCF Leadership Council member, as the recipient of the William C. Friday Award. This award recognizes contributions to North Carolina and honors dedication and excellence in leadership, scholarship, character and service. Among his many prestigious awards, honors and accom-plishments, Joseph served as President Clinton’s ambassador to South Africa from 1996-1999.

Kudos

Grants to Support Community Issues:

For the quarter ending December 31, 2011, the Foundation made:

1086 grants totaling $4,317,4727

38 scholarships totaling $142,000

In sum, there were 1124 transactions for a total of $4,459,467 in distributions

Ambassador James A. Joseph and wife Mary Braxton Joseph, TCF Board member, at What Matters 2010

Include a Legacy in Your Plans for Summer

Quarterly Update | 3

GSK IMPACT Awards

GlaxoSmithKline and TCF honored six Triangle area nonprofits with a GlaxoSmithKline IMPACT Award for excellence in providing access to healthcare for underserved populations. Award winners are determined by a panel of healthcare delivery experts and GlaxoSmithKline representatives on the basis of a nonprofit organization’s IMPACT – Innovation, Management, Partnership, Achievement, Community focus and Targeting.

In a ceremony at the GSK campus on December 7, these organizations each received a $40,000 award:

The Healing Place of Wake County - Raleigh, N.C., Wake County

Helping Hand Clinic, Inc. - Sanford, N.C., Lee County

Housing for New Hope, Inc. - Durham, N.C., Durham County

Moore Free Care Clinic, Inc. - Southern Pines, N.C., Moore County

North Carolina Therapeutic Riding Center, Inc. - Mebane, N.C., Orange County

Senior PharmAssist, Inc. - Durham, N.C., Durham County

Planning for summer travel often prompts our donors to think about updating their wills. We receive many inquiries as summer arrives about how a fund at the Foundation works in conjunction with new or existing estate plans. Our response: What do you love about our community? What would you like to preserve for future generations?

A charitable trust or bequest in your will can make a difference in our community for years to come. Real estate, life insurance and retirement accounts are often excellent choices for a savvy charitable gift that will support your favorite causes and offer tax advantages. You can allow the Foundation to direct your gift to address the most pressing needs, or you may add to an existing fund.

If you include TCF in a will, trust or other planned gift, you are invited to join the Foundation’s legacy society: The George H. Hitchings Society. The Hitchings Society honors our founder while recognizing these special gifts of lasting philanthropy. Benefits of being a member include invitations to Foundation events, donor listings in publications, and opportunities to connect with like-minded individuals in the TCF family.

We encourage you to work with your estate planning or tax professional to determine if a gift is right for you. Or contact Robin Barefoot, Director of Planned Giving, to discuss your questions in confidence. Safe travels this summer.

Community Grantmaking Program – Fall 2011The foundation made grants totaling $192,000 to 14 nonprofit organizations; seven grants in the focus area of civic engagement and seven grants in the focus area of youth leadership and development.

CIVIC ENGAGEMENT GRANTEES

CORRAL Riding Academy: $14,400 to provide the opportunity for at-risk girls to work with horses and CORRAL staff to build leadership skills.

Genesis Home: $12,800 for families living at Genesis Home to participate educational programs including tutoring, reading and enrichment activities.

Hispanic Liaison of Chatham County/El Vinculo Hispano: $15,000 to serve 40 at-risk Latino middle school youth with programs that encourage youth to stay in school and avoid gang involvement.

Justice Theater Project: $9,400 for scholarships to economically-disadvantaged youth to attend sessions of a summer theater camp in partnership with Passage Home, Inc.

KidZNotes: $15,000 to provide one year of music instruction and leadership training, based on the successful El Sistema program, for 100 students at four Title 1 elementary schools in Durham.

Nessie Foundation: $15,000 to provide summer camp scholarships to the Raleigh Boys and Girls Clubs and to facilitate after-school outdoor programs for Raleigh children living in Parrish Manor.

Read and Feed: $14,400 for eight mobile classrooms to travel weekly through Wake County neighborhoods, reaching 200 more children per year.

YOUTH LEADERSHIP & DEVELOPMENT GRANTEES

Equality NC Foundation: $15,000 for an online storytelling campaign by key Triangle people to motivate others to support LGBT equality. (cont.)

GlaxoSmithKline

Awards

The Healing Place of Wake County

Senior PharmAssist, Inc.

Moore Free Care Clinic, Inc.

Helping Hand Clinic, Inc.

4 | Quarterly Update

Martha Avison Woodson, 85, died Thursday, December 29, 2011. She is survived by her husband of 57 years, R. Peyton Woodson III; daughter Sheila W. Horine of Asheville, NC; son Richard P. Woodson; daughter Martha W. Dunnagan, both of Raleigh; five grandchildren, Margaret K. Horine, Katherine P. Horine, Hannah W. Horine, of Asheville, NC and Peyton R. Dunnagan, and Evelyn F. Dunnagan of Raleigh. In lieu of flowers, those wishing to do so may make contributions to Conservation Trust of NC, 1028 Washington St., Raleigh, NC 27605; Triangle Land Conservancy, 1101 Haynes St, Suite 205, Raleigh, NC 27604; or Hospice of Wake County, 250 Hospice Circle, Raleigh, NC 27607.

In Memory . . .Our thoughts are with the families and loved ones of the following special friend of the Foundation

TCF: Investment Overview, December 2011

-6%

-4%

-2%

0%

2%

4%

6%

8%

5.4%

6.8%

-2.8%

-1.4%

2.4%

4Q 2011 1 Year

Endowment

Growth-Oriented

Income-Oriented

3.7%

4Q 2011 and 1-Year Returns

The fourth quarter ended December 31, 2011 provided investors with a mild recovery after the significant third quarter market downturn. The investment markets responded favorably to improved conditions in the European financial sectors and stronger than expected economic data in the US, although most equity markets finished in negative territory for the year.

The S&P500 index gained 2.1% during 2011, while the international market equity index lost -12.1% and the emerging market index lost more than -18%. Triangle Community Foundation’s portfolios, which include a diversified allocation of both US and international investments, protected assets well in light of very weak equity market conditions.

The Fourth Quarter 2011 and 1-Year returns are shown in the accompanying graph for the:

• Endowed Investment Portfolio (60% equity, 20% fixed income, 20% alternative)

• Non-endowed Investment Portfolio (65% equity, 35% fixed income)

• Income Oriented Investment Portfolio (35% equity, 65% fixed income).

For more information, please contact Robert Naylor, Chief Financial Officer and Director of Administration, at Robert@trianglecf.org or 919-474-8370 x129.

Community Grantmaking Program (cont.)YOUTH LEADERSHIP & DEVELOPMENT GRANTEES

Family Violence and Rape Crisis Services: $15,000 for the Coalition for Family Peace, a community effort to improve Chatham County’s response to domestic and sexual violence.

NC AIDS Action Network (NCAAN): $12,000 to improve access to healthcare for people living with HIV/AIDS, their loved ones, and disproportionally high risk individuals.

NC Conservation Network: $9,000 to build “Get Active,” a network of prominent business supporters to influence public policy to win protections for the environment.

People of Faith Against the Death Penalty: $15,000 to launch a grassroots campaign in the Triangle to repeal the death penalty in North Carolina.

Southern Coalition for Social Justice: $15,000 to support persons affected by job discrimination due to convictions and incarceration and build support for local laws.

WakeUp Wake County: $15,000 to lead a public education campaign promoting regional transit prior to 2012 transit funding referenda in Wake and Orange Counties.

Save the Date for upcoming Triangle Donor Forums!

MARCH 7, 2012 Access to Higher Education

MAY 23, 2012 Collective Giving and Collaborative Funding

to be held at the Burroughs Wellcome Fund in RTP