The Many Faces
of Philanthropy
Phone (910) 483-4449
2001
• Fax (910) 483-2905 • www.cumberlandcf.org
Twenty Years of Giving
MARY LYNN BRYAN, PRESIDENT
Dear Friends:
This year began with so much hope, progress, and good
feeling in our community. We earned All-America City
status; we began planning for a major national event in
Fayetteville honoring the 100th anniversary of the creation
of flight; Greater Fayetteville Futures introduced a unified
vision for economic growth. And then came the tragedies
of September 11 – cowardly terrorist acts that sickened and
saddened us, but also unified and redefined us as a
community and a nation.
Through it all, your Community Foundation has
remained steadfast and dedicated to its mission of improving
the quality of life for our community. This is particularly
important in this time of war that affects so many of the
families and services here.
Over the past twenty years Cumberland Community
Foundation has continued to grow with many thanks to the
community, for your continued support and commitment to
the idea of giving back. During this time, the Foundation
has given more than $7,000,000 to support projects vital to
the improved well-being and development of Cumberland
County and our area. This year alone, as the chart below
indicates, we were able to make more than $1,700,000 in
grants to worthy endeavors.
We offer this report as a record of our continued
dedication to improving all aspects of life in our community.
More than ever now, we need your help and your support as
we face an environment altered by international events. We
are grateful for all you have done in the past and we look
forward to working with you in the future. Thank you.
WHAT’S INSIDE THIS ISSUE:
President’s Message ..........................page 2
Financial Condition .........................page 3
Foundation Honors Dr. Ruby Murchison
......................................................page 4-5
Funds Lists .................................page 6-14
Prism Society Event .......................page 15
Private Foundation Comparison
..................................................page 16-17
Grants and Non-Profit News ....page 18-19
Charity Can Begin Now, Here’s How
..................................................page 20-21
Foundation Staff and Leadership
..................................................page 22-23
Mary Lynn Bryan
$ GRANTED ANNUALLY
$1,700,000
1982 — 2001
$1,000,000
$500,000
$100,000
$50,000
2
1982 1984 1985 1989 1991 1993 1995 1997 1999 2001
“Thank You”
to Our Administrative Supporters
One hundred percent of every gift goes directly into the charitable fund of the donor’s
choice. How is that possible? Cumberland Community Foundation is very
fortunate to have our administrative expenses covered from diverse sources—grants from
administrative endowment funds (listed below), interest income on short term assets, and fee
income from restricted funds. “Thank you” to our administrative endowment funds for 2001:
Administrative Endowment Fund (est. 1994)
Alfred E. and Janie McN. Cleveland Family Fund (est. 1995)
Education for Community Foundation Growth Fund (est. 1994)
Fayetteville Publishing Company Administrative Endowment (est. 1993)
Julian B. Hutaff Memorial Fund (est. 1992)
Thomas R. and Elizabeth E. McLean Advised Fund (est. 1997)
Bob Drake, Treasurer
(Other funds not named are available to support operations.)
In addition, the Foundation received a generous grant for operating support from the Thomas R. and Elizabeth E. McLean
Foundation. Cumberland Community Foundation is well-positioned to serve our community long into the future.
FINANCIAL CONDITION STRONG
Fiscal years ending June 30, 1999, 2000, 2001
ASSETS
Cash and Equivalents
Investments
Interest, pledges, and other receivables
Equipment and improvements
Total Assets
1999
988,811.27
13,180,756.98
166,411.71
165,377.22
14,501,357.18
2000
251,972.02
16,371,248.55
481,497.37
150,824.66
17,255,542.60
2001
229,844.79
17,435,023.05
645,929.15
146,801.11
18,457,598.10
LIABILITIES and NET ASSETS
Accrued expenses
Annuities payable & custodial funds
Funds held as agency endowments
Net assets
Total Liabilities and Net Assets
62,199.58
111,521,92
508,365.87
13,819,269.81
14,501,357.18
58,656.16
235,789.05
1,158,963.67
15,802,133.72
17,255,542.60
51,152.09
226,544.51
1,263,101.09
16,916,800.41
18,457,598.10
1999
2,857,866.28
553,249.19
542,035.41
3,953,150.88
2000
2,381,553.53
773,151.47
521,657.40
3,676,362.40
2001
3,526,196.94
1,081,987.40
(1,242,954.17)
3,365,230.17
EXPENSES
Direct grants to charitable organizations
Occupancy grants and related expenses
Other grant related expenses
Fundraising
Management and general
Total Expenses
1,045,492.18
143,152.23
71,990.76
84,278.36
164,064.04
1,5080,977.57
1,180,169.69
143,377.89
98,052.43
86,434.47
185,464.01
1,693,498.49
1,705,792.36
143,726.17
107,369.00
96,632.68
197,043.27
2,250,563.48
SUPPORT and REVENUE in
EXCESS of EXPENSES
Net Assets – Beginning of Year
2,444,173.31
11,375,096.50
1,982,863.91
13,819,269.81
1,114,666.69
15,802,133.72
Net Assets – End of Year
13,819,269.81
15,802,133.72
16,916,800.41
STATEMENT of ACTIVITIES for the
YEAR ENDED JUNE 30,
SUPPORT and REVENUES
Gifts and pledges
Interest, dividends and other income
Investment gains (losses)
Total Support and Revenues
For a copy of the complete financial audit, please call Mary Holmes at the Foundation (910) 483-4449.
3
Twelve Years of Leadership
The Cumberland Community Foundation is one of Cumberland County’s greatest assets. It is
the “dream-made-reality” of Dr. Lucile Hutaff, a Fayetteville native, who envisioned the
foundation as “a way for the citizens of Cumberland County and its communities to draw upon
local and private capital to meet local public needs.”
In 1980, Dr. Hutaff created the Cumberland Community
Foundation in donating assets of more than $500,000. Twenty years
later her dream is, indeed, a reality. With assets exceeding 19 million
dollars, the Foundation has earned a reputation for contributing
positively to the quality of life and growth of the community.
Much of the credit for the Foundation’s progress belongs to the
organization’s creative and informed leadership. There is an
executive director who leads effectively in marketing the
organization and in working diligently with a dedicated board of
directors to carry out the Foundation’s mission. The board
members are impartial people who know and are involved in the life
of the community, and they are committed to promoting better
living
for all citizens. The board scrutinizes grant requests for
urchison
M
y
b
u
R
r.
D
social impact before distributing funds to nonprofit organizations.
After a grant is awarded, they also provide support, when needed, and consistently require
accountability from grantees.
Donors are another group whose contributions are pivotal in the Foundation’s growth.
Through their generosity, they determine the financial strength of the organization. These
donated assets create a pool of charitable dollars, “a trust”, intended to encourage new ideas and
novel approaches to make the cultural and civic life better for community citizens. Gifts vary in
size and no gift is too large or too small. Since inception, the accrued wealth from donated assets
have been utilized to fund small and large grants in areas such as education, cultural arts,
recreation, health, civic responsibility, senior citizens and homeless populations. Local leaders
who implement these programs represent churches, community organizations, educational,
recreational and civic institutions.
By every measure, Cumberland Community Foundation is a very valuable and credible
organization. Therefore, it is our obligation to maintain and enhance the best practices of the past
twenty years. At the same time, we must address our changing community needs as we embark
upon future directions that continue the intent of our founder. Perhaps through these initiatives,
we can continue to empower people to make life better and contribute productively to a growing
community.
Dr. Ruby Murchison
Board of Directors • 1988 — 2001
4
Foundation Honors
Dr. Ruby Murchison
The board honored Dr. Murchison at her last meeting with a reception in June.
Monika Simmons, Ruby Murchison, Mary Lynn Bryan
Don Porter, Ruby Murchison, Les Griffin
Monika Simmons, Ruby Murchison, Walter Moorman
Mary Lynn Bryan, Dr. Ruby Murchison, Dr. John T.
Henley, Jr.
Dr. Murchison will continue to
serve on the Grants Committee.
She is also an advisor to the
Friends of African American
Families Fund.
Margaret Dickson,
Dr. Murchison
5
Unrestricted Funds
UNRESTRICTED FUNDS (ENDOWED)
Unrestricted Funds
Anonymous (4)
Dorothy Clark Anderson Family Fund
Vienna M. and John E. Balkcum
Charitable Endowment Fund
Breeden and Cathy Blackwell Vision Fund
Branch Banking & Trust Fund for the Community
Bryan Family Fund
J. Gary and Terry G. Ciccone Family Fund
Lyon-Dawson Family Fund
Gerald and Naoma Ellison Family Fund
Fayetteville Publishing Company Fund
Dr. Malcolm and Eleanor W. Fleishman Vision Fund
General Purpose Endowment
Leland Stanford Hayslip Family Fund
John and Susan Henley Family Fund
Marianna and Joseph H. Hollinshed Family Fund
John F. and Mary Moorman Holmes Family Fund
Hutaff Family Fund
J. Wes and Lucy Jones Family Fund
Dr. William R. and Jeanne Jordan Family Fund
Weldon H. and Mary Lynn H. Jordan Family Fund
Lewis E.W. Lepper Memorial Fund
Raymond Manning Family Fund
Robert O. and Mary Ann E. McCoy Family Fund
Donald W. and Kathryn McCoy Family Fund
Dr. James W. and Margaret deRosset McLean Family Fund
Thomas R. and Elizabeth McLean Fund
Jeff Meares II Memorial Fund
Moorman Family Fund
Walter C. and Mary Y. Moorman Charitable
Remainder Unitrust
NationsBank/Bank of America
North Carolina Natural Gas Fund For The Community
Sylvia and Bob Ray Family Fund
Leonard E. Reaves, Jr. Memorial Fund
Leon & Judy Shackleford Charitable Remainder Unitrust
Elizabeth DeVane Shirley Fund
James M. Thornton Family Fund
George W. and Louise B. Tinnin Memorial Fund
Marie J. and William Carey Verdery, M.D. Fund
vonRosenberg Family Fund
John H. Wheeler Family Fund
Justin and Dorothy White Family Fund
White Charitable Remainder Trust
Williams, Dunn, Curl Family Fund
Wilson-Harper Family Fund
John and Dot Wyatt Family Fund
Mary B. and Wilson F. Yarborough Family Fund
Ramon L. Yarborough Family Fund
enable the Foundation to respond with
maximum flexibility to changing community
needs and emergencies, to build upon
community assets, to support innovative
responses to community problems, to
leverage unique charitable opportunities,
and to enhance the overall quality of life in
our communities. No restrictions are placed
on how these funds are to be used, leaving
the most effective charitable application to
the discretion of the Foundation’s Grants
Committee. Vision Funds, Family Funds,
and Memorial Funds fall under the
“unrestricted” category at Cumberland
Community Foundation.
Grants from Unrestricted Funds support
cultural and educational programs throughout the
year.
6
Respond to Community Needs
Unrestricted Funds provide grant money
to many worthy programs, such as the
Sandhills Area Land Trust (below) for start-up
funding of their Cumberland County Chapter
($20,000) and the Airborne and Special
Operations Museum (above) for two years of
educational programming ($30,000).
Neighborhoods
The
Strengthening
Initiative, a small grants program, receives
support from Unrestricted and Donor
Advised
Funds
for
neighborhood
improvements.
Unrestricted and Donor Advised Funds
provide support for the SummerTime Kids
programs, such as a grant for the Hope Mills
YMCA summer camp to teach swimming to
local children.
7
Donors Remain Involved
These donor advised funds are used for the
donor’s annual giving to various charities. All
donated principal may be spent.
Advised Funds
provide a more “hands on” approach for
donors, allowing them to recommend grants
to specific charities, as their interests and
community needs determine. Up to two
generations of family members may be named
as “advisors” to the fund. A self-succeeding
committee of volunteers may be named to
advise a fund in perpetuity.
DONOR ADVISED FUND (FOR
ANNUAL GIVING)
Anonymous Education Assistance Fund
Anonymous Advised Fund #2
Frances and Von Autry Advised Fund
June Aysse Advised Fund
Ervin and Helga Baer Advised Fund
Bruce and Marcy Baer Advised Fund
Hannah H. and Joseph W. Baggett Donor Advised Fund
Beth and Paul Berghoff Advised Fund
Charlotte L. and Dohn B. Broadwell Advised Fund
Nancy W. Broadwell Advised Fund
Fayetteville Chamber of Commerce Fund
Anthony G. and Joanne M. Chavonne Advised Fund
J. Gary and Terry G. Ciccone Advised
Martha McDonald Cline Advised Fund
Virginia and Tom Colantuono Advised Fund
Day of Jubilee
MSD Fund
Highsmith Dickson Charitable Fund
Louisa Rankin Duff Donor Advised Fund
Gerald and Naoma Ellison Advised Fund
Rakesh and Vinita Gupta Advised Fund
Helen Sherrill Gustafson or
Sheryl MacLean Gustafson Advised Fund
Charles Edward Hall Advised Fund
John and Susan Henley Donor Advised Fund
Marianna and Joseph H. Hollinshed Advised Fund
John and Mary Holmes Advised Fund
J. Wes and Lucy Jones Advised Fund
Stuart and Sheryl Jordan Advised Fund
Rosalie Huske Kelly Advised Fund
Stuart V. Kerr Advised Fund
Dr. Lee Marie Kleiss Advised Fund
Karl and Lynn Legatski Advised Fund
Lewis E. W. Lepper Memorial Fund
Loughlin Family Advised Fund
Eleanor B. Manning Advised Fund
McGrath Fund
The J. Wes and Lucy Jones Advised Fund provides
grant support to charities recommended by Dr. Wes
and Lucy Jones. The Jones donate appreciated stock to
their fund and award grants throughout the year for
charities they support.
For guidelines on Advised Fund
procedures, please call Mary Holmes or
Rachel Anderson at 910-483-4449.
8
with Donor Advised Funds
Jim and Leigh Anne McLean Advised Fund
Laura and Sam Meares Advised Fund
Jean and Steven Moore Advised Fund
Walter C. and Mary Y. Moorman Advised Fund
Louise K. Nance Fund
NFI Charitable Fund
Gloria D. Novello Advised Fund
Anne and J. Harvey Oliver, Jr. Advised Fund
Margaret Ann Riddle & Richard L. Player, Jr. Fund
William C. Powell, M.D. Advised Fund
Sylvia Gooding Ray and Robert G. Ray Advised Fund
Cobby and Ann Reaves Advised Fund
William O. and Barbara B. Richardson Advised Fund
Dr. and Mrs. Stephen Rochman Advised Fund
Rosa and Ralph J. Ronalter, Jr. Advised Fund
Ann and George Rose Advised Fund
Mr. and Mrs. D.P. Russ, Jr. Advised Fund
The Schaefer Fund
SENCIA Advised Fund
Friends of Senior Centers Fund
Sammy and Carol Short Advised Fund
John D. and Nancy B. Soffe Advised Fund
Marie T. and George C. Stewart, Jr. Advised Fund
Harold J. and Josephine L. Sturdivant Advised Fund
Sugar Family Educational Fund For St. Pauls
V. F. and Eloise Talley Advised Fund
Taylor Family Advised Fund
Jane Westbrook Thomason Advised Fund
Iris M. Thornton Advised Fund
Opal C. Townsend Advised Fund
Terri Union Advised Fund
vonRosenberg Advised Fund
George E.H. and Helen S. Waren Advised Fund
John and Allene Williams Advised Fund
LaMar R. Williams Advised Fund
Harvey T. Wright, II and
Mary Fermanides Wright Advised Fund
J. W. and D. B. Wyatt Advised Fund
Mary B. Yarborough Advised Fund
Ramon L. Yarborough Advised Fund
Wilson F. and Charlotte T. Yarborough Advised Fund
Laura and Ray Yarborough Advised Fund
These donor advised funds are endowed and
invested for long-term growth. Grants are paid
annually from the investment income to
charities recommended by Donor Advisors. If
desired, the donor may request principal
access.
DONOR ADVISED FUNDS (ENDOWED)
Friends of African American Families Fund
Friends of Animals Fund
Elaine M. Bryant Charitable Fund
Walter B. and Margaret T. Clark Endowment
Al and Janie Cleveland Advised Endowment Fund
Daughters of Charity Fund
Mayor J.L. Dawkins Civic Vision Fund
Genevieve L Garrou Exum and
Robert Exum, Jr. Endowment
Robert Exum and
Ruth Blount Hodges Exum Endowment
Nicholas Fasul Finch Autism Fund
Frank M. Fukuda Memorial Fund
Lyn and Michael Green Charitable Fund
Healy Family Charitable Endowment
Raymond and Eleanor Manning Fund
J.S. McFadyen Charitable Fund
Thomas R. and Elizabeth E. McLean Advised Fund
Moorman Family Endowment
NORFAM Fund
Margaret Ann Riddle and
Richard L. Player, Jr. Endowment
Samuel E. and Carol Manning Short Irrevocable Trust
Stephen C. Rochman Charitable Lead Annuity Trust
Stack Memorial Fund
Terri S. Union Advised Women’s Fund
James H. Wilson, Jr. and
Rachel E. Wilson Advised Fund
Harry Louis Yanoff and
Jeannette Master Yanoff Charitable Fund
Currie-Yelverton Family Fund
Youth Health Endowment Fund
Visit www.cumberlandcf.org
9
Nonprofits Build Endowments
Organizational Endowment
Funds
ORGANIZATIONAL ENDOWMENTS
Arts Council of Fayetteville/Cumberland County
Endowment Fund
Bergland Center Endowment Fund
Better Health of Cumberland County Endowment
Cape Fear Botanical Garden Endowment
Cape Fear Regional Theatre Endowment
Katherine West Williams Endowment
for the Center for the Blind
CONTACT of Fayetteville / Wallace Kirby
Permanent Endowment
Cumberland County Education Foundation Fund
Cumberland Interfaith Hospitality Network Endowment
Cumberland Oratorio Singers Endowment
Fayetteville Area Habitat for Humanity Endowment
Fayetteville Family Life Center Endowment
Fayetteville Family YMCA Endowment Fund
Fayetteville Museum of Art Endowment
Fayetteville Urban Ministry Endowment
Heritage Endowment Fund of Cumberland
Community Foundation
Historic Fayetteville Cool Spring Restoration
Historic Fayetteville Foundation Advised Fund
Junior League of Fayetteville Endowment
Kiwanis Club of Fayetteville Endowment
Library Endowment Trust
Museum of the Cape Fear Historical
Complex Foundation Fund
Museum of the Cape Fear Historical
Complex Foundation Capital Endowment Fund
Myrover-Reese Endowment Fund
Rape Crisis Volunteers / Kasprzak Memorial Endowment
West Fayetteville Rotary Club Endowment
Sandhills Area Conservation Endowment
Women’s Center Endowment Fund
The Woman's Club of Fayetteville Endowment
ORGANIZATIONAL CAPITAL CAMPAIGN FUNDS
Child Advocacy Center Support Fund
CONTACT of Fayetteville Building Campaign Fund
Fascinate-U Children’s Museum Capital Campaign
are the repository of donor-gifted assets
transferred by non-profit organizations and
managed by Cumberland Community
Foundation as an independent third party.
This arrangement insulates the agency from
an unwise or unwarranted invasion of
endowment principal that might run counter
to the donor’s wishes. Anyone may add to
these funds through cash, stocks, other assets,
or through bequests and charitable trusts.
The Library
Endowment
Trust received a
bequest from the
estate of
Elizabeth
DeVane Shirley
in 2001.
Supporters of the
Library make
memorial and
honor gifts
ranging from
$25 to $100
throughout the
year. Grants from
this fund will
support national
speakers and
special programs.
In 2001, an
anonymous
donor created an
endowment
fund for The
Woman’s Club
of Fayetteville to
assist with its
programming
and maintenance
of the historic
buildings.
Anyone may add
to the fund.
10
Donors Support Favorite Causes
Designated Funds
ensure that permanent support is provided to
specific charities named by the donor. Grants from
this type of fund are often for operating support.
A unique feature of this type of fund is the legal
variance power, which allows Cumberland
Community Foundation to redirect a charitable
fund that becomes obsolete or impractical for
implementation, thereby insuring that a donor’s
gift will never be wasted or rendered inoperable by
changing societal circumstances or the closing of a
nonprofit organization.
DESIGNATED FUNDS (ENDOWED)
David and Helen Clark Art Museum Fund
Fred Aysse Memorial Fund for Youth Education
Curl Gift Annuity
George, Marian, and Robert Drake Attica, Indiana Fund
Cape Fear Botanical Garden Children’s Fund
Charlotte Lilly Broadwell Fund
for the Cape Fear Botanical Garden
Frances Brooks Stein and
Harry B. Stein Memorial Library Fund
Paris Tillinghast Garden Fund
The David and Helen Clark Art Museum Fund
pays grants annually to the Fayetteville Museum of Art
for education programs. Cumberland Community
Foundation manages the fund according to the wishes
of the donors for the benefit of the local art museum.
Writing a Bequest
Wills and Trust Agreements should be drafted by an
attorney. When including in one’s will a bequest to
Cumberland Community Foundation, the following
language may be used. (These examples should be
adapted to provide for any special restriction or to
define a field of charitable interest.)
I devise _______________________ (describe gift) to
CUMBERLAND COMMUNITY FOUNDATION,
INC. Fayetteville, North Carolina, for the establishment
of the “_________ Fund” [name of fund] where
earnings from this devise shall be distributed annually to
(state purpose or organization)
for Cumberland
County and the surrounding area.
If the restricted purpose of a bequest becomes
obsolete over time, the Board of Directors of the
Foundation is empowered to find a similar organization
to benefit from the Fund established. Thus, including
Cumberland Community Foundation to receive a
bequest provides a hedge against changes in charitable
organizations and their missions.
11
Scholarships Support Learning
Scholarship Funds
are dedicated to the continued education or
training of youth or adults. Scholarship
programs may be designed to meet the donor’s
customized specifications: for example, students
with specific talents or academic achievement,
students living in a particular geographic region,
studying a particular subject, or attending a
certain institution. Retired educators serve as
the scholarship selection committee.
SCHOLARSHIP FUNDS (NOT
ENDOWED)
Robert L. Blue Memorial Scholarship
Community Scholars Fund
Eloise Marie Schuldt Masters Nursing Scholarship
Mildred P. Shaw Scholarship Fund
Union Corrugating Company Scholarship
The John T. Gibson Fund was created in his
memory by his daughters for students
graduating from E.E. Smith High School who
will attend NC A&T.
2001 Recipient— William Parrish
SCHOLARSHIP FUND (ENDOWED)
Belk/Dorothy A. Howard Scholarship
Beth Bryan Creative Arts Fund
William W. Crowell Scholarship Fund
Cumberland Retired School Personnel Scholarship
Ellis-Walker Builders, Inc. Scholarship
John Thomas Gibson Scholarship Fund
Endowment for High School Journalism
Charles Calvert Holt Scholarship
Dr. Martin Luther King, Jr. Scholarship
Dr. Lee Maria Kleiss Chemistry Scholarship
Dr. Edwin B. Martin Scholarship Fund
Brenda C. McFadyen Scholarship Fund
Leonard G. McLeod Theatre Scholarship
Methodist College Community Scholarship Fund
E. E. Miller Scholarship Fund
Walter Lee “Jack” Tucker Scholarship Fund
Thurman Williams, Jr. Scholarship Fund
Visit www.cumberlandcf.org
for application deadlines and information.
The Walter Lee “Jack” Tucker Scholarship
was created by Mrs. Joseph T. Maloney, Jr.
(Toaksie) in memory of her father for children
of the City of Fayetteville firemen.
2001 Recipient—Kristin Stafford with
her grandmother, Betty Russell.
12
Donors Choose A Cause
FIELD
Field of Interest Funds
OF
INTEREST FUNDS (ENDOWED)
Ervin and Helga Baer Family Fund (for youth)
Waverly C. Broadwell Family
Environmental Education Fund
Steve Carlin ALS Research and Assistance Fund
Robert W. Drake Cumberland County Fund
Alma Owens Easom Fund for Children
Education for Community Foundation Growth
Fayetteville High School Class of 1936 Endowment
Dr. Richard S. Kelly, Jr. Memorial Fund (for youth)
Ashton W. Lilly Fund For Philanthropy
MacMillan Family Fund (for youth)
Douglas R. and Pamella S. Moll Children's Fund
Dr. and Mrs. Kurt Sachs Fund for Children
Donors create Field of Interest Funds to
support a broad area of interest—such as the
arts, education, the environment, or health and
human services. Each year, the Foundation
selects the best programs to receive grants in
this category. Everyone is invited to add to
these broadly designed funds.
FOUNDATION SPONSORED
FIELD OF INTEREST FUNDS (ENDOWED)
The Foundation manages and raises funds for these broadly focused funds:
Endowment for the Arts (Support the Arts in our community)
Cape Fear River Basin Environmental Fund
(Support of projects in the CFR Basin)
Friends of Animals Fund (Support animal welfare projects)
Environmental Protection and Education Fund
(Support our local environment)
General Scholarship Endowment
(Support access to higher education)
SummerTime Kids Endowment Fund
The Friends of Animals Fund was created
to support animal welfare organizations with an
emphasis on low-cost spay/neuter programs.
All animal-lovers are invited to add to this fund.
(Send children to camp)
Created in memory of Waverly Broadwell by his
family, the Waverly C. Broadwell Environmental
Education Fund awards grants to programs that
educate the community about environment
concerns. The first grant from this fund helped
establish the Cumberland County Conservancy, the
local chapter of the Sandhills Area Land Trust.
13
photo by John Dawson
Special Project Funds
SPECIAL PROJECT FUNDS (NOT
ENDOWED)
The Foundation provides fiscal administration for
special community initiatives.
The Christmas Box Angel Memorial Fund
Festival of Flight 2003 Fund
Greater Fayetteville Futures Fund
LEAVE A LEGACY™ of Cumberland County Fund
Library Endowment Support Fund
Cumberland County Vietnam Memorial Fund
photo courtesy of Lester Studios
Steve Carlin ALS Research and Assistance Fund
Mary Ann, Ariel, Steve Carlin, and friends are
raising awareness of ALS (Lou Gehrig’s Disease) and
will provide assistance to the families of those who
suffer from the disease in southeastern North Carolina.
photo courtesy of The Fayetteville Observer
All-America City Campaign
LtoR: George Breece, Viola George, Jay Johnson and
other delegates represented Fayetteville for the AllAmerica City award. The Foundation provided fiscal
administration for the private donations.
14
Foundation Honors
Leadership Gifts
The Prism Society of Cumberland Community Foundation was established to honor the donors of the
largest gifts to endowment funds or foundation support. Members remain anonymous.
“A single ray of light enters a prism and grows in power and effect. Such are their gifts to our
community through Cumberland Community Foundation. They brighten the future of our community
with their light.”
L-R: J.S. Harper and
Mary Lynn Bryan.
L-R: Walter Moorman, Dot Sasser,
Dot Wyatt, and Rhone Sasser.
Members of the Prism Society were thanked by the Foundation’s Board Members
at a dinner at the home of Lucy and Wes Jones. Cumberland Community
Foundation thanks its board members, anonymous donors and the Thomas R.
and Elizabeth E. McLean Advised Fund for covering all special event expenses.
“The Prism Award”
L-R: Dick Fox, Charles Broadwell, Wes Jones.
L-R: Les Griffin, Ruby Murchison, Sylvia Ray.
15
L-R: Ruby Murchison, Sylvia Ray, Mary Yarborough,
Iris Thornton.
C O M PA R I S O N :
Private foundations versus a named fund at Cumberland Community Foundation
Private foundations established by a family or
Tax Treatment of Contributions
With a private foundation, current year tax
benefits are limited to 30% of income for cash gifts
and
20%
of
income
for
appreciated
property gifts. At Cumberland Community
Foundation, current year tax benefits are 50% of
income for cash gifts and 30% of income for
appreciated property gifts.
business have been a popular vehicle for carrying
out philanthropic goals on a long term basis.
Through the use of private foundations, the
charitable minded have been able to
accelerate tax deductions, involve family
members and obtain community visibility.
Unfortunately, the administrative burdens of
maintaining a private foundation over time can be
formidable and costly. Private foundations of small or
even moderate size cannot afford staff
assistance to deal with grant requests that come in. In
addition, the tax benefits of gifts to private
foundations are more limited than those of gifts to
other charities. Private foundation tax returns are
public information, affording little privacy in the
operation of the foundation. Often, the charitable
interests of the second and third generation family
members are not consistent with the founders of
the private foundation.
Contributions of Appreciated
Property
At Cumberland Community Foundation, Federal
and North Carolina income tax deduction for all
appreciated property gifts may be taken at 100% of
fair market value. With a private foundation, the
Federal and North Carolina income tax
deductions for appreciated property gifts are
generally limited to a person’s basis. (Please note:
the ability to make gifts of publicly traded stock to
private foundations and take a deduction based on
the fair market value of the stock is an exception
occasionally allowed by Congress. This rule has
changed repeatedly over the last several years.)
Thus, a private foundation may not be a practical
option unless you are prepared to commit a
substantial amount of time and/or money - and
your heirs or other future trustees are similarly
dedicated.
Excise Taxes
At Cumberland Community Foundation, there is
NO tax on investment income, while at a
private foundation, excise taxes are 2% of
investment income annually.
Set-Up Procedures and Costs
Private foundations must incorporate and apply to
the IRS for tax-exempt status and there are legal
and
accounting
fees
to
establish
a
foundation. Meanwhile, with Cumberland
are
Community
Foundation
procedures
immediate. Plus, the community foundation does
not charge start-up fees. We charge an annual
administrative fee ranging from 0% to 1%,
significantly lower than operating a private
foundation. Because of our economies of scale and
our operating endowment, our costs are among
the lowest of all nonprofit organizations.
Investment, Audit, Accounting
and Tax Returns
With a private foundation, you must perform
financial and administrative services yourself, or
contract or hire staff to fulfill these functions. Plus,
an annual 990-PF tax return is required.
Cumberland Community Foundation handles all
financial and administrative management, files the
an
and
provides
annual
tax
return
annual independent audit.
16
“In many cases, clients realize that their
needs can be met by an advised fund at
Cumberland Community Foundation
instead of a private foundation.”
Robert G. Ray, Attorney, Board of Directors
Grant Management
Liability and Insurance
With a private foundation, director’s and officer’s
liability insurance, employee bonding, and office
insurance must be separately purchased. Meanwhile,
Cumberland Community Foundation automatically
covers liability and office insurance policies.
A private foundation must verify the charitable status
of all recipient organizations. Cumberland
Community Foundation verifies charitable status of
all recipient organizations for you, plus donors
have access to the community foundation’s
strategic grantmaking services.
Grant Payout Requirement
Privacy
Private foundations are required to distribute 5% of their
assets annually to avoid penalty taxes. There is no payout
with
Cumberland
Community
requirement
Foundation, so your fund can accumulate income for a
sizable project or grant as you choose.
Private foundations are required to file detailed tax
returns on grants, investment fees, trustee fees, staff
salaries, etc. These are public records and are compiled
into grantseeker directories, internet files (such as
www.guidestar.org); and other widely distributed
resources. At Cumberland Community Foundation,
individual donors or grants can be kept private. If the
donor wishes, the community foundation can serve as
a buffer between the donor and grantseekers.
“When our company merged with
another, we considered starting a
private foundation. However, we found
that we could achieve our charitable
goals with the community foundation’s
Advised Fund program, and could do
so without the red tape and expense of a
separate private foundation. This
allowed for more funds to go to
charity.” J. Scott McFadyen, shown
here with his sons--(L-R) John, Bill and
Malcolm—all grant advisors to the J.S.
McFadyen Charitable Fund.
17
Grant Guidelines
INFORMATION FOR GRANTSEEKERS
Last year, Cumberland Community Foundation paid over $1.7 million in grants to area
nonprofits. Over one million dollars of those grants were from Donor Advised Funds (see pages 8
& 9) and were recommended for specific charities by the donors.
Fortunately, the Foundation also has Unrestricted and Field-of-Interest Funds (see pages 6,7 &
13) which provide support for worthy projects on a competitive basis each year. The Foundation
awarded over $500,000 from these funds in 2001, for projects such as a free pharmacy for the
working poor, Festival of Flight 2003, MetroVisions, Animal
Haven of Cumberland County, youth development activities,
and numerous cultural and educational programs throughout
the community.
The Foundation has set specific grantmaking objectives for
our Unrestricted Funds. These objectives are based on the
characteristics of successful past projects and our goals for
improving our community. Please see our Web site for a
detailed description of priorities (www.cumberlandcf.org).
These grants are provided for organizations that are
photo courtesy of The Fayetteville Observer
advancing the arts; assisting children, families and elderly in
need; enhancing our natural environment; improving “The Foundation’s Discretionary Grants
Program is designed to improve the quality of
educational opportunities; building community and economic life for all and to meet community needs —
vitality; or promoting access to quality health care.
from small neighborhood grants to major
community initiatives.” Mildred Braxton,
Board Member
For Current Information on
Grant Programs and Applications:
L-R: Amy Hatfield (Fascinate-U Children’s Museum),
Greg Nace (Cape Fear Botanical Garden) and Tom
Squire (2001 recipient of the Nancy Susan Reynolds
Award) participate in a strategic planning class of the
Duke Certificate in Nonprofit Management program.
18
We want to help make your application for
funding as effective as possible. Before
submitting a request:
• visit our Web site at www.cumberlandcf.org
• request current guidelines and an application;
• review our grant guidelines thoroughly to
determine if you are eligible to apply;
and then,
• contact the Foundation’s Grants Manager
with any questions — Monika Simmons,
[email protected].
Nonprofit News
• The Foundation has awarded more than $7 million in grants to area charities in
the last twenty years.
• Nonprofit organizations may apply for grants from the Foundation’s Unrestricted
Funds and Field-of-Interest Funds. For eligibility information and deadlines visit
www.cumberlandcf.org or call (910) 483-4449 for the guidelines.
• The Foundation’s offices and BB&T Foundation Center are made possible by a
gift from BB&T. Administrative office space is granted to nonprofit organizations
and meeting rooms are available for a nominal charge ($10/hour).
• The Foundation provides professional endowment management services for 28
nonprofit organizations in the area. (See page 10 for a list of Organization
Endowments or visit www.cumberlandcf.org.)
• The Foundation encourages membership in the North Carolina Center for
Nonprofits, a statewide information and resource center for nonprofit
organizations. For more information on building your organization’s capacity visit
www.ncnonprofits.org or call (919) 790-1555.
• The Foundation supports continuing education for the staff members and
volunteers of any local nonprofit organization by offering a 50% tuition discount on
classes of the Duke Certificate in Nonprofit Management Program in Cumberland
County. For more information, go to www.learnmore.duke.edu/nonprofits or
call the Duke program at (919) 668-6743.
• The Foundation encourages nonprofit organizations to seek funding from
sources outside Cumberland County. For more information on other foundations,
go to the Web site of the NC Center for Nonprofits and visit the Links page at
www.ncnonprofits.org/links.
• The Cumberland County Library and Information System hosts grantseeking
search engine software called “FC Search” which was funded by a grant from
Cumberland Community Foundation. For more information, call (910) 483-7727
ext 224.
19
Charity Can Begin Now,
SET
UP A FUND AND BUILD A FINANCIAL PLAN THAT PAYS OFF FOR YOU AND YOUR COMMUNITY
For more than 20 years, the
Cumberland
Community
Foundation has been helping
would-be philanthropists realize
their charitable wishes with
planned giving tools designed to
help the community, as well as
the donor.
The community foundation
currently holds more than 240
funds from a diverse range of
donors, which benefit an equally
diverse range of causes. But
many
people
still
don’t
understand how easy it is to set
up a fund, or how the community
foundation manages such a wide
array of donors and their monies.
To put it simply, these funds form
a pool of dollars whose fiscal
the
community
growth
foundation oversees.
The
community foundation also
disburses these funds through
grants to a carefully screened
selection of nonprofit agencies
and organizations.
We recommend that if you’re
interested in setting up a fund
with the community foundation
that you consult with your
attorney, accountant or financial
advisor, and call Mary Holmes at
910-483-4449.
CONSIDER YOUR
PHILANTHROPIC
OBJECTIVES.
What do you want to
achieve with your
money?
Some
people set up funds
to support educational
programs at their alma mater,
while others support medical
research to cure disease. Others
leave their funds unrestricted, to be
used by the foundation to meet the
greatest needs in the community.
To help you decide what best
meets your interests, please
consult this list of funds offered
by the community foundation:
AWARD FUNDS
These funds allow donors to create
an ongoing awards program to
recognize outstanding achievement.
DESIGNATED FUNDS
These funds provide ongoing
support to organizations chosen
by donors.
DONOR ADVISED FUNDS
Advised funds give donors an
opportunity to actively participate
in the grant making process.
FIELD OF INTEREST FUNDS
These funds allow donors to
direct their giving as narrowly or
broadly as they choose, while the
foundation ultimately determines
the specific grants.
20
MEMORIAL FUNDS
Memorial
Funds
can
be
established by anyone who wants
to honor the memory of
someone who has died.
SCHOLARSHIP FUNDS
To provide scholarships for
students as specified by donors.
UNRESTRICTED FUNDS
These funds are directed by the
foundation’s staff and Board of
Directors toward the greatest
needs in the community.
IT’S ALL TIMING
Some of the greatest
opportunities
to
make
significant
charitable gifts arise
when you’re making
other major business, personal or
financial decisions.
These include when you are:
- writing or revising your will;
- contemplating the sale of a
business or other major asset;
- planning your retirement; or
- the recipient of a financial
windfall.
DOLLARS AND SENSE
Keep in mind that
there is no cost to
set up a fund at
Cumberland
C o m m u n i t y
Foundation.
We charge an
annual administrative fee of
between 0% and 1%. Please call
us for a list of administrative fees
for each type of fund.
Here’s How
In addition, a fund established at
the community foundation
receives the maximum charitable
tax deduction allowed by law.
Numerous types of assets can be
used to set up a fund, including:
Cash, publicly-traded securities,
mutual fund shares, closely-held
stock, real estate, life estates, life
insurance policies, royalties and
intellectual property rights.
Electronic transfers of stock and
mutual fund shares can be quick
and easy. Please request a copy
from us of “Stock and Mutual
Fund Transfer Instructions,” if
you’d like a detailed guide to
making contributions of stock
and mutual funds.
ESTABLISH A FUND
If you’d like to
proceed,
the
development staff
will prepare you a
Fund Agreement – a simple form
allowing you to specify the
charitable purposes of your fund.
Or, if you’d like to create a fund
by bequest or through your estate
plan, our staff can provide you
and your attorney the language
necessary to incorporate your
objectives into your will or living
trust – or into any planned gift
you wish to create.
There are also ways to create a
fund and receive income for the
rest of your life, such as
Charitable Remainder Trusts.
Charitable giving can also be
incorporated into your retirement
plan with the Charitable IRA,
which will help reduce the taxes
applying to your IRA, while
simultaneously
creating
a
charitable legacy for your family.
WHAT HAPPENS NEXT?
The
community
foundation’s assets
are invested by some
of the nation’s most
outstanding financial investment
firms, with the goal of long-term
growth. Investment returns are
carefully scrutinized by a Board of
Directors committee and evaluated
by independent auditors.
Plus, because we pool the
contributions for administration
and investment purposes, more of
our donors’ money goes to grant
making than to overhead.
For donors who choose a field of
interest or donor-advised fund, our
staff can help you find the best
nonprofit organizations that fit your
areas of interest. Donor advisors
can take advantage of grant-making
services that may include: Research
to identify worthy charities in a
given field or area; tracking and
evaluating the results of grants
made and arranging site visits to
particular charities.
Donors receive statements that
specify contributions made to the
fund, market value changes,
income and a detail of grants
21
made from the fund. To request
that a grant be made from a
donor’s fund, the donor
completes
a
Grant
Recommendation Form that they
can then fax or mail to the
community foundation. Donors
are also notified of the community
foundation’s efforts in response to
community needs – to which they
can make monetary donations.
If you’re interested in setting up a
fund please call (910) 483-4449
to speak with Mary M. Holmes,
Executive Director
You can also request a copy of
one of our publications to learn
more about the foundation and
about establishing a fund:
• You Can Make A Difference
• Basic Estate Planning
• Charitable Remainder Trusts
• Estate Planning Strategies
• Gifts of Life Insurance
• Gifts of Real Estate
• Gifts of Retirement Plan Assets
• Gifts of Securities
Mary M.
Holmes,
Executive
Director
To request a publication,
please call Mary Holmes,
(910) 483-4449 or email
[email protected].
Foundation Staff
STAFF WISH LIST:
Refrigerator for the BB&T
Community Room (no ice
machine/gently used or new)
Volunteers to stuff envelopes
once a month
A TV/VCR for training
and group presentations
(gently used or new)
$2,500 to hire a summer
intern for 2002
One volunteer to coordinate
Community Room usage
(2 hours/week)
One or two Palm Pilots
(gently used or new)
Feng shui consultant for
our lobby/entrance
World peace
L-R: Front Row- Jacque Riley, Holly Castro, Monika Simmons;
Standing-Rachel Anderson, Mary Holmes, Donna Keen
CONTACT US:
The Foundation has three full-time and three part-time staff members ready to serve the
community:
Rachel Anderson, Financial Administrator, may be contacted regarding gifts to existing funds,
stock transfer information, donor fund information, fund statements, donor advised grants, and other
financial matters of the Foundation. [email protected]
Holly Castro, Financial Assistant, oversees accounts payable, vendor relationships, grants payable,
and provides other support for the Financial Administrator and donors. [email protected]
Mary Holmes, Executive Director, oversees operations of the Foundation, works on major gifts
and new funds, Charitable Remainder Trusts, community-wide initiatives, and donor relations.
[email protected]
Donna Keen and Jacque Riley work part-time, sharing the position of Administrative Assistant.
They focus on community relations, communications, database management, board and volunteer
relations, and administration. [email protected]
Monika Simmons, Grants and Scholarships Manager, may be contacted for information about
grants, scholarships, eligibility, how to apply, grant guidelines, and other resources available for
nonprofit organizations. (Monika may be reached Monday –Thursday.) [email protected]
In addition to our donors and grantees, the staff wishes to thank two groups: (1)the founders of
the administrative endowment funds for their support of our operating expenses and (2)our many
hardworking volunteers who enable us to keep our expenses so low. Thank you!
22
Foundation Leadership
2001/2002
BOARD OF DIRECTORS
Mary Lynn Bryan
President
Ramon L. Yarborough
Vice President
J. Gary Ciccone
Secretary
Executive Committee: LtoR: (seated) Ramon L. Yarborough, Dr. John T. Henley, Jr.,
Mary Lynn Bryan, Walter C. Moorman, Robert G. Ray; (standing) Leslie A. Griffin,
Samuel E. Short, J. Gary Ciccone, Robert O. McCoy, Robert W. Drake
Robert W. Drake
Treasurer
Mildred M. Braxton
Anthony G. Chavonne
Alfred E. Cleveland
Margaret H. Dickson
Eleanor W. Fleishman
Leslie A. Griffin
Dr. John T. Henley, Jr.
Joseph H. Hollinshed
Henry G. Hutaff
Dr. J. Wesley Jones
Robert O. McCoy, Jr.
Walter C. Moorman
Donald L. Porter
Robert G. Ray
Samuel E. Short
Iris M. Thornton
Dorothy B. Wyatt
Grants Committee: LtoR: (seated) Dr. John T. Henley,
Jr., Dorothy B. Wyatt, Leslie A. Griffin (chairman),
Mary Lynn Bryan; (standing) Eleanor W. Fleishman,
Margaret H. Dickson, Anthony G. Chavonne, J. Gary
Ciccone, Samuel E. Short. (Not shown: Dr. Ruby
Murchison)
Anthony G. Chavonne
joined the board July 1, 2001.
Chavonne is General Manager of
Fayetteville Publishing Company and
a very active leader in the community.
23
Nonprofit Org.
U.S. Postage
PAID
Fayetteville, NC
Permit # 393
308 Green Street
P.O. Box 2171
Fayetteville, NC 28302
Phone (910) 483-4449
Fax (910) 483-2905
E-mail [email protected]
www.cumberlandcf.org