Strengthening Democracy Building a More Effective, More Accountable Charitable Sector

2005 ANNUAL REPORT Front cover: Independent Sector serves as the “meeting ground” for the leadership of the entire charitable community, most notably through our Annual Conference. The 2005 conference, held October 23-25 in Washington, D.C., featured the theme, “Reshaping the Social Compact,” and also celebrated IS’s 25th anniversary. Those attending included (from left): • Deanna Dunkan-Grand, director of foundation relations, America’s Promise; • Iqbal Noor Ali, chief executive offi cer, Aga Khan Foundation; • Wade Henderson, executive director, Leadership Conference on Civil Rights; • John E. Morton (left), offi cer, planning & evaluation, The Pew Charitable Trusts, and Cinthia Schuman, associate director, Aspen Institute’s Nonprofi t Sector and Philanthropy Program.

2 2005 ANNUAL REPORT Table of Contents

About Independent Sector ...... 4

Message from the Chair and the President ...... 5

Board of Directors and Leadership ...... 6-7

Highlights from 2005 ...... 8-17

Contributors ...... 18-21

Financial Summary ...... 22-23

Strengthening the Voice of the Charitable Community ...... 24

Independent Sector Members ...... 25-33

Staff ...... 34

2005 ANNUAL REPORT 3 About Independent Sector

The United States is now home to an estimated 1.4 million public charities, private foundations, and religious congregations that work to improve the lives of individuals and communities. Collectively, we refer to these organizations as the “independent sector,” which underscores their unique role in society, distinct from business and government. Independent Sector is the leadership forum for charities, foundations, and corporate giving programs committed to advancing the common good in America and worldwide. Our nonpartisan coalition of approximately 550 organizations leads, strengthens, and mobilizes the charitable community in order to fulﬁ ll our vision of a just and inclusive society of active citizens, vibrant communities, effective institutions, and a healthy democracy.

Our Vision Our Mission A just and inclusive society of active citizens, To advance the common good by leading, vibrant communities, effective institutions, and strengthening, and mobilizing the a healthy democracy. independent sector.

Our Values

Independence Interdependence Transparency, Integrity, • The freedom to be creative • Productive cooperation between and Accountability and uplift the human spirit the public, private, and nonprofi t • A commitment to the highest • The right to advocacy and sectors possible ethical standards freedom of speech • Effective collaboration between • Open and timely sharing of • A commitment to funders and grant recipients fi nancial, governance, and program information promoting and protecting Inclusiveness and Diversity the independence of the • Embracing a variety of perspectives • Responsiveness to society, sector and people members, and stakeholders • An obligation to serve • Respect for the views of others Operational Excellence as a leading voice for the • Effective programs and common good Social Justice activities that meet meaningful • Full and fair opportunities for all needs • Appreciating the worth and dignity • Effi ciency in the use of of each person resources

4 2005 ANNUAL REPORT Message from the Chair and the President

We are pleased to present the highlights of Independent Sector’s work during our 25th anniversary year. Our achievements in 2005 resonate with a theme that has long been at the center of the charitable community: our ability to improve lives is even greater when we join our voices. The past year saw the implementation of the strategic business plan our membership approved late in 2004. Our expanded membership criteria have enabled us to encourage leading organizations on the local, regional, and state levels that share our values to join IS. As these groups increasingly become part of the IS coalition, we better refl ect the growing strength and diversity of the sector. We are also fulfi lling the second main element of the business plan. Present and former members said that the charitable community needed a stronger voice on the pressing issues of the day, and they called on Independent Sector to embrace that role. We have, as our work over the past year demonstrates. We have been a leader in strengthening ethics and accountability, particularly with the Panel on the Nonprofi t Sector. As convener of the Panel, IS brought together thousands of people from across our sector to strengthen the transparency, governance, and accountability of charitable organizations. The results of this effort, particularly the Final Report the Panel issued in June, have already improved the operations of charities and foundations and shaped the views of government offi cials. The IS coalition brings together all elements of the sector—charities, foundations, and corporate giving programs—in many other ways. The staff from member organizations who make up our committees, task forces, and other networks have helped the charitable sector develop better approaches in key areas such as public policy, civic engagement, and international issues. Our Annual Conference increasingly serves as one of the foremost meeting grounds for leaders from across the sector. Running through the enormous variety in our work and in that of our members are two main themes: strengthening democracy and building more effective, more accountable organizations. We could not do this work without the vital voices of our members, and we look forward to continuing this chorus in the future.

William E. Trueheart Diana Aviv Chair President and CEO

Vital Voices The staff and volunteers of Independent Sector’s members are vital voices in the work to advance the common good. Their efforts, both for their organizations and as part of the IS coalition, are crucial to our ability to improve the lives of individuals and communities around the world. The following pages proﬁ le a few of the millions of people in the charitable community whose contributions strengthen democracy and build a more effective, more accountable sector.

2005 ANNUAL REPORT 5 Board of Directors

Offi cers Chair Vice Chair Diana Aviv * William E. Trueheart Gary L. Yates President and CEO President and CEO President and CEO Independent Sector The Pittsburgh Foundation The California Wellness Foundation * ex offi cio Treasurer Paula Van Ness Secretary Chief Executive Offi cer Hilary Pennington Starlight Starbright Children’s Vice Chair and Co-Founder Foundation Jobs for the Future

Board Members Edward H. Able, Jr. J. Bryan Hehir Edward Skloot Special thanks to these President and CEO President Executive Director dedicated leaders who American Association of Catholic Charities, Surdna Foundation retired from the IS Museums Archdiocese of Boston board during 2005. Donald M. Stewart Kathleen W. Buechel J.D. Hokoyama Visiting Professor Angela Glover Blackwell Former President President and CEO Harris School of Public Policy Chief Executive Offi cer Alcoa Foundation Leadership Education for Asian Studies, University of Chicago PolicyLink Pacifi cs Robert W. Edgar Arturo Vargas Hodding Carter III General Secretary Kevin Klose Executive Director President and CEO National Council of Churches President and CEO National Association of Latino John S. & James L. Knight of Christ in the USA National Public Radio Elected and Appointed Offi cials Foundation Educational Fund Lewis M. Feldstein Stanley S. Litow Christopher T. Gates President President Luz A. Vega-Marquis President New Hampshire Charitable IBM Foundation President and CEO National Civic League Foundation Vice President Marguerite Casey Foundation Global Community Relations Kathleen D. McCarthy David S. Ford IBM Corporation M. Cass Wheeler Director Chief Executive Offi cer Chief Executive Offi cer Center on Philanthropy and Richard and Susan Smith Janet Murguía American Heart Association Civil Society, City University Family Foundation President and CEO of New York National Council of La Raza William S. White Barry D. Gaberman President and CEO Karen Narasaki Senior Vice President William D. Novelli Charles Stewart Mott President and Executive Director The Ford Foundation Chief Executive Offi cer Foundation Asian American Justice Center AARP Brian A. Gallagher Ruth Wooden Mary Beth Salerno President and CEO John R. Seffrin President President United Way of America Chief Executive Offi cer Public Agenda American Express Foundation American Cancer Society Vice President, Philanthropy Darell Hammond American Express Company CEO and Co-Founder KaBOOM! Inc.

6 2005 ANNUAL REPORT Leadership

Committee Chairs

Executive Committee Building Value Together John W. Gardner Virginia A. Hodgkinson William E. Trueheart Steering Committee Leadership Award Research Prize Committee President and CEO Paul Brest (co-chair) Committee Steven Rathgeb Smith The Pittsburgh Foundation President and CEO William S. White President-Elect The William and Flora Hewlett President and CEO Association for Research on Investment Subcommittee Foundation Charles Stewart Mott Nonprofi t Organizations and Robert E. Swaney, Jr. Foundation Voluntary Action Vice President and Chief Hilary Pennington (co-chair) Investment Offi cer (Retired) Vice Chair and Co-Founder Leadership IS Award Charles Stewart Mott Jobs for the Future Committee Foundation Janet Murguía Communications and President and CEO Audit Committee Marketing Advisory National Council of La Raza Arturo Vargas Task Force Executive Director Lewis M. Feldstein National Association of Latino President Thank you to the following leaders who served as Elected and Appointed Offi cials New Hampshire Charitable committee chairs in 2005. Educational Fund Foundation Audit Committee John W. Gardner Board Development 2006 Annual Conference Mary Beth Salerno Leadership Award Committee Program Committee President Committee J. D. Hokoyama Brian A. Gallagher American Express Foundation Kathleen W. Buechel President and CEO President and CEO Vice President, Philanthropy President Leadership Education for Asian United Way of America American Express Company Alcoa Foundation Pacifi cs 2006 Annual Conference Civic Engagement Leadership IS Award Public Policy Committee Host Committee Task Force Committee Gary L. Yates Jon Pratt (co-chair) Brian A. Gallagher Arturo Vargas President and CEO Executive Director President and CEO Executive Director The California Wellness Minnesota Council on United Way of America National Association of Foundation Nonprofi ts Latino Elected and Appointed 2005 Annual Conference Offi cials Educational Fund Ethics and Accountability Karl Stauber (co-chair) Program Committee Committee President and CEO Karen Narasaki 25th Anniversary M. Cass Wheeler Northwest Area Foundation President and Executive Director Committee Chief Executive Offi cer Asian American Justice Center Robert M. Frehse, Jr. American Heart Association Membership Committee Executive Director Kathleen W. Buechel 2005 Annual Conference William Randolph Hearst Civic Engagement Former President Host Committee Foundations Committee Alcoa Foundation Terri Lee Freeman Edward Skloot President James Canales (vice chair) Executive Director Resource Development The Community Foundation President and CEO Surdna Foundation Committee for the National Capital Region The James Irvine Foundation David S. Ford International Program Chief Executive Offi cer Membership Committee Judy Vredenburgh (vice chair) Advisory Commitee Richard and Susan Smith Darell Hammond President and CEO Barry D. Gaberman Family Foundation CEO and Co-Founder Big Brothers Big Sisters of Senior Vice President KaBOOM! Inc. America The Ford Foundation

2005 ANNUAL REPORT 7 Highlights from 2005 2005 brought together Independent Sector’s past, present, and future. We celebrated our 25th anniversary with a series of events that culminated at the Annual Conference. . .

. . .where a gala highlighted our achievements and the remarkable growth of the entire sector since 1980. Throughout the year we continued our tradition of convening the charitable community, helping our organizations address ongoing issues such as ethics and accountability, civic engagement, and funding for vital programs. And we set out in new directions so that in the future, our sector remains a vital part of society. As we have throughout our history, IS in 2005 pursued our mission of advancing the common good by leading, strengthening, and mobilizing the charitable sector. Increasingly, we concentrate on two distinct yet related areas: building a more effective, more accountable charitable sector and strengthening democracy. This report describes how IS pursued these goals over the past year; it also documents how we have improved our operations so we address these two areas more effectively.

Building a More Effective, More Accountable Charitable Sector Because charitable organizations depend on the support and conﬁ dence of the public, Independent Sector has been dedicated throughout our history to ensuring charities and foundations operate ethically and effectively. Our commitment has never been more obvious than during 2005, when IS worked in a range of areas to help the sector meet the highest possible standards.

Charles Grassley, chairman of the Senate Finance Committee (front), accepts the Panel on the Nonproﬁ t Sector’s Interim Report, from Panel co-convener Paul Brest, president of the William and Flora Hewlett Foundation; IS President and CEO Diana Aviv; and co-convener Cass Wheeler, CEO of the American Heart Association. “I appreciate all your hard work and ask that you convey my appreciation to the enormous number of individuals who were involved in this effort,” Chairman Grassley said.

Nonprofi t leaders speak out at the Panel on the Nonprofi t Sector fi eld hearing held in Denver. More than 2,500 people participated in 15 hearings held in the following cities:

• Atlanta • Detroit • Philadelphia • Chicago • Duluth, Minnesota • San Diego • Dallas • Helena, Montana • San Francisco • Denver • Minneapolis • Seattle • Des Moines, Iowa • New York • Washington, D.C.

8 2005 ANNUAL REPORT Highlights from 2005

Our most visible work with the charitable community was the Panel on the Nonprofi t Sector. Convened by IS in the fall of 2004 at the encouragement of the leaders of the U.S. Senate Finance Committee, the Panel has involved thousands of members of the charitable community—through work groups, conference calls, emails, and fi eld hearings—in its development of recommendations on how to strengthen ethics and accountability. The fi nal report it presented to Congress and the sector in June laid out a carefully integrated package of more than 120 actions to be taken by charitable organizations, by Congress, and by the Internal Revenue Service. The Panel continued its work after June, studying areas such as international grantmaking, self-regulation, and fi nancial reporting. The Panel has become a landmark for our sector. The most signifi cant examination of ethics and accountability in 30 years, it created unprecedented collaboration across organizations. The interest in the issues it has examined was clear from the response to the Final Report: the online version has been downloaded more than 40,000 times, and more than 15,000 printed copies have been distrib- uted. More importantly, charitable organizations have begun to adjust their practices in areas such as travel policies and board compensation, and professionals working with the sector, such as accoun- IS’s “Checklist for Accountability” recommends tants and attorneys, have advised clients to adopt the Final Report’s recommendations. The Panel’s nine steps charitable work was favorably received by government offi cials: IRS Commissioner Mark Everson called the organizations can take to Panel, “an impressive effort to move the tax-exempt community to a better place,” and the recom- improve their governance and mendations in the Final Report helped shape the package of charitable reforms the Senate passed in transparency. November 2005, which is still under consideration by House-Senate tax conferees. IS’s work on ethics and accountability during 2005 extended far beyond the Panel. We carefully monitored regulatory changes, helping block burdensome governance standards that a federal program intended to impose on nonprofi t agencies awarded contracts to serve people with disabilities. We have been helping charities and foundations institute better practices, with our “Checklist for Accountability” released last summer, recommending nine steps charitable organizations can take to improve their governance and transparency. It is downloaded from the IS website more than 200 times in a typical week. The work of the Panel on the Nonprofit Sector reflected another of Independent Sector’s strengths: our ability to create a meeting ground for charitable organizations. During 2005, more than 200 staff from nearly 150 IS member organizations served on our committees, whose

Leon Panetta, a member of the Panel’s Citizen Advisory Group, testiﬁ es before the Senate Finance Committee on methods for improving the accountability of the charitable community.

IRS Commissioner Mark Everson (left) and Senator Charles Grassley (right) participate in a press conference with Diana Aviv as the Panel releases its Final Report.

The Panel on the Nonproﬁ t Sector’s Final Report lays out a carefully integrated package of more than 120 actions to be taken by charitable organizations, by Congress, and by the IRS to strengthen the sector’s transparency, governance, and accountability.

2005 ANNUAL REPORT 9 Highlights from 2005

discussions contribute to the leadership Independent Sector provides for the sector on such key issues as public policy, civic engagement, and international activity. We also developed new methods for engaging our members, such as our Policy Action Network, which encourages cooperation among charitable organizations on key, broad-based issues at the federal, state, and local levels. Our ability to bring members and non- members together for a shared purpose was clear in September, when IS and the Foundation for the Mid South convened meetings among Gulf Coast funders and charitable organizations and their national counter- Michael Dahl, director, parts in order to improve the sector’s response to Hurricane Katrina. planning and evaluation at Those discussions helped shape the testimony IS President and CEO the Pew Charitable Trusts, gathers with approximately 50 Diana Aviv gave during a Senate Finance Committee hearing on rebuild- other nonprofi t leaders for advocacy training and sessions ing the region, during which she shared seven recommendations non- with congressional and administration staff as part of the annual Public Policy Action Institute. profi ts had developed from previous disaster recovery experiences. We also continue to advocate for public policies that encourage Among the speakers were Senator Rick Santorum of Pennsylvania (pictured) and James Towey, director of charitable giving and help organizations obtain the fi nancial resources the White House Offi ce of Faith-Based and Community they need to serve their communities. IS continues to work to enhance Initiatives. and protect tax incentives for charitable giving, in particular a series of

Vital Voice: Arturo Vargas Cake and presents remind Arturo Vargas helps its constituency in areas such as naturalization, how his work is benefi ting Americans. voter engagement, and effective governing. More gener- Since 1994 Arturo has been execu- ally, Arturo believes that the sector is the most effective director of the National Association tive vehicle for training leaders. of Latino Elected and Appointed Offi cials Collaborating with other nonprofits also helps Educational Fund that works to strengthen NALEO be more effective. By exchanging ideas with American democracy by empowering a variety of organizations, it improves its operations in Latinos to participate. NALEO helps inte- areas such as fi nancial management and board oversight. grate Latinos into political society as active “We strive to be a good organization, period—not just citizens, provides professional develop- a good Latino organization.” ment opportunities and other assistance Coalitions offer benefi ts that extend far beyond to the country’s 5,000 Latino elected and operational issues. “They bring together the great diver- appointed offi cials, and advocates on issues important sity of America—Asians, blacks, Latinos, Jews, whites, to the Latino community. and others,” he notes. “We get to join with people who Arturo Vargas, executive Pursuing the American dream is an idea that has share a vision for our country”—a vision focused on director of the National run throughout Arturo’s life. His parents moved from opportunity for everyone. Association of Latino Chihuahua, Mexico, to El Paso to start their family, and Helping provide that opportunity is what brings Elected and Appointed then on to Los Angeles to provide their fi ve sons and cakes and presents to the NALEO offices. “People Offi cials Educational Fund, one daughter better opportunities. “Raising a family, want to thank us after they’ve taken their naturaliza- with Congresswoman encouraging education, making sacrifi ces for your chil- tion oaths,” he explains. “It’s exciting to know that Hilda Solis (D–CA) at the dren—that’s a central part of being an American.” we’re helping them become part of the American NALEO annual conference. Nonprofi ts are central to his approach to strength- community.” ening the country’s diverse Latino community. NALEO Learn more at www.naleo.org.

10 2005 ANNUAL REPORT Highlights from 2005

charitable giving incentives that were passed by the Senate and are under consideration by House-Senate tax conferees. We participated in a coalition focusing on protecting deductions for non-cash gifts, a vital source of support for many organizations, and have been active in coalitions to support passage of the IRA charitable rollover and the non-itemizer charitable deduction. IS remains committed to reform of the estate tax: educating our community and the public about the issue, participating in meetings with Senate staffers, and writing to all senators to express concern that full repeal of the tax could seriously damage philanthropic giving. We have urged support for reasonable reform that will preserve incentives for giving and retain signifi cant revenue for the federal treasury. Independent Sector is developing other methods for increasing the effective- Alvenia Rhea Albright, president and CEO, ness of charitable organizations. The Building Value Together initiative explored Alvenia Rhea Albright and Associates, L.L.C. and ways in which foundations and charities can work together to increase their indi- board chair of Leadership Education for Asian vidual and collective impact, including through the increased use of general oper- Pacifi cs (center), speaks on the challenges of board ating support grants. IS continues to examine how the sector can enhance public leadership, with fellow panelists Peter Karoff, founder and chairman, The Philanthropic Initiative, understanding of its central place in society. Through research conducted by Harris and Deborah S. Hechinger, president and CEO, Interactive and Public Agenda, IS has developed a deeper understanding of atti- BoardSource, at the Annual Conference. tudes towards charitable organizations among policymakers, infl uential citizens,

Vital Voice: Karen Kennelly Nineteen years as an accountant have shown Karen and needs the job to get the Kennelly that it’s a lot easier to succeed in business if clothes. By providing suiting, you look the part. Over the last seven years, her vol- we instill the confi dence that unteer service has helped give thousands of women she needs to look good and that step up. feel good.” Since its founding During her career, Karen has been employed in in 1999, Dress for Success both the private and nonprofit sectors. Currently Indianapolis has helped more director of nonprofit services at Katz, Sapper & than 2,000 women. Miller, LLP in Indianapolis and an experienced volun- Through her work as teer for a number of charitable causes, she decided in an accountant and as a board member, the mid-1990s that she needed to do more to help the Karen understands that a nonprofi t needs more than Karen Kennelly, local community. a worthwhile goal to succeed. She notes that when a founding board She pursued that goal by becoming a founding Dress for Success Indianapolis recently won a three- member of Dress board member of Dress for Success Indianapolis. Today year grant for $50,000 a year, “part of the reason was for Success she is the board chair of the organization, after serving that we were able to show our accountability….If you Indianapolis, which as treasurer, as chair of almost every committee, and don’t address the larger issues, you can’t address the has provided suits as a hands-on volunteer in virtually every capacity. Like issues on the ground.” and employment all the affi liates of Dress for Success Worldwide, the What matters most to Karen is helping the indi- Indianapolis chapter helps economically disadvantaged vidual. “One woman wrote us a note afterward that services to over women enter and stay in the workforce by providing said, ‘When I left I felt loved and looked professional, 2,000 women since suits and other employment services. ready for my interview.’ It’s that one on one, it’s all its founding. Karen explains that their typical client is “caught about her.” in that trap: she needs the clothes to get the job, Learn more at www.dressforsuccess.org.

2005 ANNUAL REPORT 11 Highlights from 2005

and engaged members of the public. The IS Communications and Marketing Advisory Task Force is developing a series of messages that will help elected ofﬁ - cials and other opinion leaders more fully understand the value of the charitable community.

Strengthening Democracy Strengthening charitable organizations is crucial to Independent Sector’s ability to fulfi ll our mission of advancing the common good. During 2005, we took on that broader goal by focusing on ways to increase civic participation across the country and around the world. Throughout the year, IS fought in many arenas to ensure that individuals and organizations keep their fundamental right to advocate. • We joined with other nonprofi ts to fi ght a provision in legislation passed by the House of Representatives that disqualifi es organizations that engage in William Trueheart, president and CEO of nonpartisan election-related activities, such as voter registration, from applying The Pittsburgh Foundation and chair of Independent Sector, at the Annual Conference. for grants from a new affordable housing fund. The provision is not included in the companion legislation passed by the Senate, and efforts are continuing to ensure that it is not included in the bill when it is sent to the President. • We joined other nonprofit organizations on two amicus briefs. In Velazquez v. Legal Services Corporation, we opposed a 1996 law that, if allowed to go into effect, would interfere with the fundamental right of nonprofi ts to

Vital Voice: Cheryl Dorsey Failure is a regular part of Cheryl some of Boston’s poorest residents. The experience Dorsey’s work. An even bigger part is helped her recognize that while caring for individu- success. als was important, her greatest interest was “working Since 2002, Cheryl has been presi- with entire populations, since that was a more effective dent of Echoing Green, which offers route to social change.” multi-year fellowships to emerging Risks—and the failures that invariably accompany leaders so they can develop innova- them—are central to the success of Echoing Green. In tive solutions to difficult problems. order to ﬁ nd innovative people and ideas, it thinks like Over the past 20 years, Echoing Green venture capitalists, standing “on the edge to see what’s has awarded over $23 million to more than 400 social coming down the pike.” While not all the fellows suc- Cheryl Dorsey (center, entrepreneurs, who use their grants as “start-up capi- ceed, careful risk management means that most do, left) with Echoing Green tal” for programs in areas such as education, civil rights, and even those who don’t provide opportunities to Fellow Adam Green (center, the arts, and community development. Cheryl sees learn. right) of New York City’s supporting new ideas as one of the strengths of the Echoing Green, which takes its name from a William Rocking the Boat, which nonprofit sector—the best place to “champion and Blake poem, highlights another key for nonproﬁ t orga- uses boat building to nurture social innovation.” nizations: sharing knowledge. The organization is com- That view comes from experience. In the early mitted to circulating the case studies of its fellows as a promote youth leadership. 1990s, she took a break from medical school and way to inspire groundbreaking leaders and, she notes, Photo: Robert Adam Mayer. used an Echoing Green Fellowship to help start the “We’re always looking for like-minded organizations.” Family Van, a mobile health clinic that to this day serves Learn more at www.echoinggreen.org.

12 2005 ANNUAL REPORT Highlights from 2005

use private funds to advance their goals. In Wisconsin Right to Life v. the Federal Election Commission, we supported a challenge to FEC restrictions on issue-related communications, airing during the 60-day window before an election, that mention a public ofﬁ cial who is also a candidate for federal ofﬁ ce. • We commented on proposed regulations that had the potential to threaten free speech. We argued to the Federal Election Commission that it should continue to

exempt 501(c)(3) organizations from its electioneering Marc Morial, president and CEO of the National Urban League and former communications rules based on the current tax law pro- mayor of New Orleans (center), speaks at the Annual Conference on lessons hibitions on participation in partisan political activities learned in the wake of Hurricane Katrina. Joining him are Melissa Flournoy, by charitable organizations. IS submitted comments to president and CEO, Louisiana Association of Nonproﬁ t Organizations, and the Federal Trade Commission concerning a proposed Alberto Ibargüen, president and CEO, John S. and James L. Knight Foundation. rule to further regulate commercial email under the With the Foundation for the Mid South, IS convenes national and local CAN-SPAM Act of 2003 that could impede the work of leaders involved in Hurricane Katrina relief efforts. Tom Jones, head of Habitat charitable organizations. for Humanity’s Washington, D.C., ofﬁ ce, urges fellow participants to pursue a Though IS has long worked to increase participation in shared agenda in rebuilding the region. civil society, in September the IS board approved the estab- lishment of a formal civic engagement program. It will

Vital Voice: Michael Piraino Michael Piraino has two goals when he gets on an quickly into safe, permanent airplane. homes. “I want the people next to me to understand what The importance of serv- we do,” explains Mike, CEO of the National CASA ing these children well helps Association, which promotes court-appointed vol- explain why Mike partici- unteer advocacy for 225,000 abused and neglected pates in broad efforts such as children across the country. “I hope they’ll become the Panel on the Nonprofi t one of our advocates or a board member of one of Sector. His greatest interest is our local groups.” in accountability—“Are we doing things in a smart Because maltreated children are not everyone’s way?”—and joining sector-wide discussions enables Michael Piraino with foremost issue, Mike tries to make a broader point to National CASA and its 940 member organizations to foster child David his seatmates. “We all have some need to make a dif- contribute to and to learn from the successes of other Stephens at a CASA ference,” he continues. “I want them to see that they organizations. don’t have to change their lives completely to change The importance of being effective is clear from the art event in Atlanta. their communities.” story of a CASA volunteer who took his child to the CASA volunteers (sometimes called guardians ad beach. “I’ve waited all my life for this day,” explained litem) also illustrate how the charitable sector can the boy: not only had he never seen the ocean, but “no collaborate with government. Court and government one else has ever really listened to me.” offi cials—often skeptical initially of the value of non- “I would have been happy to do that for one child attorney volunteers—find that community-based in my life,” concludes Mike. “I’m fl oored that I can help advocates are valuable partners, helping everyone others do it for 225,000 children a year.” better understand the children and getting them more Learn more at www.nationalcasa.org.

2005 ANNUAL REPORT 13 Highlights from 2005

focus on two goals: helping charitable organizations fi nd effective, sustainable civic engagement strategies that enable them to achieve their missions; and advancing the examination of the changing social compact, primarily by highlighting new and innovative ways that individuals, business, government, and the charitable sector are working together to address important public problems. Our commitment to strengthening civil society does not stop at our borders. With more than 40 percent of our members engaging in work outside of the United States, the IS board created a task force to examine whether we should establish an international program. At the end of the year, the board agreed with the task force’s recommendation that Independent Sector should, over the next two years, pursue a series of goals that include increasing the effective- Diana Aviv opens the 25th Anniversary ness of the international activity of IS members and strengthening international civil society by Conference by suggesting ways to strengthen the social compact. Her working with global and national infrastructure organizations already pursuing that goal. address, available on the IS website, IS has been committed to other international issues, most notably fi nding approaches focused on the need for a national con- that prevent the diversion of charitable assets to terrorist groups without compromising the versation that would replace today’s shrill, ability of charitable organizations to fulfi ll their missions. IS fi led comments with the Offi ce divisive exchanges with public discussions of Personnel Management on its proposed new anti-terrorism certifi cation language for the among all Americans that would defi ne Combined Federal Campaign, a workplace giving campaign for federal employees. IS opposed the social compact. certain provisions, such as a requirement that charitable organizations check potential employees against a list of suspected terrorists, as unworkable because of fl aws in the lists; this change

Vital Voice: Edward Skloot “Our money will have far more resonance if we fi nd Panel worked proactively and positively with Congress our voice.” on issues crucial to the sector. That effort has increased Since 1989 Edward Skloot has been executive our standing in Washington—and with our members director of the $850 million Surdna Foundation, around the country too.” which makes grants to programs in the envi- The Panel highlights another element crucial to the ronment, urban revitalization, youth organizing, sector’s ability to change society: collaboration. Surdna arts, and philanthropy and the nonprofi t sec- has been committed to bringing together grantmak- tor. His experiences at the foundation, as well ers and grant seekers and to creating broad coalitions. as in earlier positions in charitable organiza- In the 1990s, for example, Surdna sparked and led a tions and government, have convinced him that broad group of nearly a dozen funders, a half-dozen foundations should not simply fund the issues community development corporations, and numerous they care about—they must also advocate for government agencies to revitalize a large part of the them. South Bronx. “We ‘leveraged’ each other’s money and “We pay nonprofi ts to advocate for us. That’s not expertise. None of us could have achieved our collec- Edward Skloot, good enough,” Ed explains. “We need to help govern- tive impact had we free-lanced.” executive director ments and the public understand both policy and oper- Speaking out and working together are methods for of the Surdna ational issues from philanthropy’s perspective, and to fulfi lling what Ed sees as the primary roles of the non- Foundation. put our thumb on the scale.” profi t sector: “protecting the social compact, advanc- These beliefs explain why Ed sees the Panel on the ing equality and opportunity and, ultimately, holding Nonprofit Sector, of which he is a member, as such American culture together.” an important step for the charitable community. “The Learn more at www.surdna.org.

14 2005 ANNUAL REPORT Highlights from 2005

was adopted in the fi nal rule. We have also taken a key role in the Treasury Guidelines Working Group, a collaboration among a wide range of charitable organizations formed to respond to the Department of the Treasury’s “Anti-Terrorist Financing Guidelines, Voluntary Best Practices for U.S.-based Charities.” After identifying many weaknesses in the guidelines, the Working Group submitted its own “Principles of International Charity” to the Treasury early in 2005. Late in the year, the Treasury released revised guidelines, but the Working Group concluded that even those have signifi cant problems and agreed to ask the Treasury to withdraw them. Our 25th Anniversary Conference, held October 23-25 in Washington, D.C., provided a snapshot of the issues at the center of our work. The conference, based on the Deepak Bhargava, executive director, Center theme Reshaping the Social Compact, attracted 800 people, including nearly 250 chief for Community Change (right), shares his view executives. Its three days of sessions examined what the social compact is now and how at the Annual Conference on how and why it should be strengthened, with a particular focus on the charitable community’s role in the nonprofi t sector should promote civic its defi nition and fulfi llment; methods for strengthening accountability; approaches to engagement. Terri Lee Freeman, president, increase civic engagement; and techniques for creating more effective organizations. The Community Foundation for the National One of the highlights of the Annual Conference is the presentation of annual awards, Capital Region (left), and Eleanor M. Josaitis, chief executive offi cer of Focus: HOPE, look on. which further emphasizes themes important to our work. Receiving the 2005 John W. Gardner Leadership Award was Ronald Grzywinski, chairman and CEO of ShoreBank Corporation. Over nearly forty years, his work has helped transform underserved neighborhoods into vibrant communities and inspired a community development banking movement worldwide. The Leadership IS Award went to the National Hispana Leadership Institute, which uses leadership courses, breakfasts and conferences,

Vital Voice: Irene Hirano The history of Japanese Americans is not dominated by and cultural organizations, the protection of democratic rights, but Irene Hirano is locally and nationally,” says doing her part to change that for the future. Irene. As president and CEO of the Japanese American Beginning in 2000, National Museum in Los Angeles, Irene heads the only JANM worked with the museum in the country dedicated to sharing the experi- then-newly created Arab American ence of Americans of Japanese ancestry. JANM serves National Museum in Dearborn, Michigan. Following the about 250,000 people onsite each year through its September II terrorist attacks, the museum was being Irene Hirano (center) with exhibits, collections, and programs, and reaches more developed in a climate hostile towards Arab Americans. U.S. Senator Daniel K. than 500,000 additional people online through its three JANM wanted to ensure that the World War II experi- websites. One of the museum’s newest programs, the ences of Japanese Americans were not repeated in a Inouye (second from left) National Center for the Preservation of Democracy, different community. and former Secretary of works with children and educators to connect diverse “Through educational programs that linked the les- the Army Louis Caldera cultural and ethnic experiences in order to motivate sons of the past to the challenges of the present, we (second from right) at the young people to shape and strengthen democracy. were able to develop collaborative programs that con- October 2005 opening of “One of the most rewarding aspects of the work nected different yet similar community experiences,” the National Center for the of the Japanese American National Museum has been concludes Irene. Preservation of Democracy. to develop collaborative projects with other ethnic Learn more at www.janm.org.

2005 ANNUAL REPORT 15 Highlights from 2005

and mentoring programs to train, motivate, and build a network to inﬂ uence decision making and inspire Latinas to reach more inﬂ uential positions in society. The Virginia A. Hodgkinson Research Prize for outstanding work on our sector went to Pippa Norris and Ronald Inglehart for their book, Sacred and Secular: Religion and Politics Worldwide.

Strengthening Independent Sector Fulﬁ lling our goals of building stronger charitable organizations and strengthening democracy will be possible only if IS remains an effective, responsive organization. During the past year, IS took a number of important steps that enable us to pursue these goals. We have continued to diversify and expand the resources we have to do our work. By National Hispana Leadership Institute the end of 2005 our membership had grown to nearly 540, an increase of more than receives the Leadership IS Award in recognition of its work to nurture 10 percent from the beginning of the year. Included in that number were more than 100 leadership among Latina women. new or rejoining members. Following the decision of our members in November 2004 to encourage leading organizations on the local, regional, and state levels that share our values to join IS, we reached out to a wide range of groups so that the IS coalition would more fully represent the sector’s incredible diversity. Our fundraising also continues to be successful, particularly considering the exceptional needs created by the Panel on the Nonproﬁ t Sector. During 2005, IS received a series of multi-year grants that are helping us to meet our needs both this year and in the future.

Vital Voice: Ronald Grzywinski A neighborhood bank for low-income people. It Take Samuel Zapeda, Jr., the founder and president sounds like a great idea, but in 1973, this effort of Vistas Construction of Illinois. Born in Jalisco, Mexico, seemed radical and likely to fail. and raised in the Roseland community of Chicago, Ron Grzywinski and his colleagues wanted Samuel started his general contracting business in 2000 to provide African Americans, low-income resi- with only $6,000 in start-up capital and one employee. dents, and inner city businesses with access to fi nancial Today, thanks to a complete financing package from Ron Grzywinksi in resources unavailable elsewhere. Over the last 30 years, ShoreBank, Samuel is able to hire 150 employees and Afghanistan. IS named ShoreBank’s efforts have transformed Chicago’s disin- serves public and private clients, specializing in rein- Ron the recipient of the vested South and West Side neighborhoods and com- forced concrete structures, building construction ser- 2005 John W. Gardner munities around the world. vices, excavation, and grounds maintenance. The com- Leadership Award “There is greater understanding and appreciation pany is now valued at over $4 million. In 2005, the Small recognizing a career that than ever for what banks and other private institutions Business Administration named Samuel the Illinois Small has transformed under- can accomplish by increasing the availability of capital, Business Champion of the Year. served neighborhoods credit and fi nancial services to low-income individuals “Now is an exciting time because more people into vibrant communities and nonprofi ts in underserved communities,” explains are recognizing that the impossible dream of thirty- Ron, chairman and CEO of ShoreBank Corporation. three years ago is indeed possible,” says Ron. “Financial and inspired a worldwide “By providing these groups with access to resources, institutions and other private fi rms can operate profi t- community development more private institutions are transforming urban and able self-sustaining business while doing good, build- banking movement. rural areas into new whole, healthy communities of ing stronger communities and creating a healthier choice—places where people are, once again, wanting environment.” to live and work.” Learn more at www.shorebankcorp.com.

16 2005 ANNUAL REPORT Highlights from 2005

This growth in resources was a key part of our ability to implement the strategic business plan the Board of Directors adopted in the fall of 2004. The plan responded to the call from the sector that IS focus on two areas: providing greater leadership for America’s charities and foundations, and expanding our membership so it refl ects the increasing diversity of our charitable community. We have improved our methods for identifying and respond- ing to emerging issues; we have created several new staff positions to help us serve our members and the sector, including director of membership and policy associate for civic engagement; and we have facilitated internal communication to support cross-departmen- tal projects such as strengthening accountability within the sector. President Bush meets with nonprofi t Increasingly, media turn to Independent Sector to serve as a voice on major issues leaders, including several from IS members, affecting the nonprofi t world. In 2004, we responded to approximately 80 calls from the to highlight the role of human service and faith-based organizations in society. nation’s 100 largest newspapers and from leading trade journals, including The Washington Post, The New York Times, The Wall Street Journal, USA Today, The Chronicle of Philanthropy, and Congressional Quarterly. That number grew nearly 50 percent during 2005, including multiple inquiries on the Panel on the Nonprofi t Sector, potential legislation on charitable reform, and the estate tax. By the end of the year, Independent Sector even looked different. After an extensive development process shaped by pro bono branding consultants, we introduced at the Annual Conference a new logo and tagline that provides a fresh and energized perspective. Our visual symbol refl ects several ideas—at fi rst glance it might be an eye, or two people reaching out to each other, or a person with hands clasped over head in victory. Our new color—green—refl ects energy, growth, and vibrancy. And our new tagline “A Vital Voice For Us All” highlights how our organization and our sector give voice to people across the country and around the world. The logo and tagline refl ect our role as a dynamic convener of and communicator with the charitable community and with the broader society. The constructive work of the past year has provided us with a platform from which we can reach even higher in 2006. With the continued support of our member Happy Birthday, IS! IS leaders past and organizations, which are at the center of all present celebrate the 25th anniversary. (Front, our work, we will continue to improve our from left) Founding President Brian O’Connell, own operations, build more effective, more current President Diana Aviv, and former accountable charitable organizations, and Chair Raul Yzaguirre. (Back, from left) Past strengthen democracy. We look forward to Chairs John Seffrin and Peter Goldberg, and continuing to demonstrate the enormous current Chair William Trueheart. value the charitable sector provides to communities across the country and around the world.

2005 ANNUAL REPORT 17 2005 Contributors IS wishes to recognize these individuals and organizations whose contributions to Independent Sector have played a critical role in furthering IS’s mission and vision. General Support Funders Restricted Grant Funders The American Express Foundation Building Value Together The Ford Foundation The William and Flora Hewlett Foundation Bill & Melinda Gates Foundation Civic Engagement William Caspar Graustein Memorial Fund The American Express Foundation Evelyn and Walter Haas, Jr. Fund MetLife Foundation The William and Flora Hewlett Foundation John S. and James L. Knight Foundation Ethics and Accountability Charles Stewart Mott Foundation Bill & Melinda Gates Foundation Open Society Institute GE Foundation The Pew Charitable Trusts The Rockefeller Foundation Surdna Foundation International Program Wallace Foundation Alcoa Foundation Chevron Corporation Awards The Ford Foundation The Global Fund for Children John W. Gardner Leadership Award The Global Fund for Women The Cleveland Foundation Merrill Lynch & Co. Foundation, Inc. The William Randolph Hearst Foundations Public Policy Carnegie Corporation of New York Leadership IS Award Chevron Corporation Research The Center for Information and Research on Virginia A. Hodgkinson Research Prize Civic Engagement (CIRCLE), University National Association of Service & of Maryland School of Public Affairs Conservation Corps (NASCC) The Coca-Cola Company Nehemiah Corporation of America The Levi Strauss Foundation Lilly Endowment Inc. MetLife Foundation

Sector-Wide Communications Initiative W.K. Kellogg Foundation The David and Lucile Packard Foundation

Social Justice Study The Ford Foundation

Sustainability W.K. Kellogg Foundation 18 2005 ANNUAL REPORT 2005 Contributors

25th Anniversary Partners IS’s 25th Anniversary Partners provided special gifts in 2005 to recognize Independent Sector’s contributions to the vitality and effectiveness of our nation’s nonproﬁ t and philanthropic community over the past 25 years.

AARP Islamic Society of North America McGregor Fund American Cancer Society JCPenney Company Fund NALEO Educational Fund American Heart Association F. Martin & Dorothy A. Johnson Pierre and Pamela Omidyar Big Brothers Big Sisters Family Fund, Grand Haven Fund, an Advised Fund Maurice Falk Fund Area Community at Peninsula Community Girl Scouts of the USA Foundation Foundation The George Gund Foundation Kansas Health Foundation Sid W. Richardson Foundation The William Randolph Hearst The Samuel H. Kress Foundation The Skoll Fund Foundations Lumina Foundation for The Spencer Foundation Education 25th Anniversary Conference Partners The following organizations and individuals generously supported the 2005 Annual Conference in Washington, DC.

AARP The Coca-Cola Company Kaiser Permanente Aetna Foundation Community Counselling Service The Kerr Foundation, Inc. America Online The Community Foundation for Kimsey Foundation American Association of the National Capital Region Leader to Leader Institute Museums The Conservation Fund The Ludwig Family Foundation American Express Foundation The Council on Foundations and Promontory Financial American Legacy Foundation Deltek Group Americans for the Arts Enterprise Community McCormick Tribune Foundation Anonymous Partners, Inc. Merrill Lynch & Co. Bank of America Charitable Fannie Mae Foundation Foundation, Inc. Foundation Forum One Communications Meyer Foundation Diane and Norman Bernstein Freddie Mac Foundation Morino Institute Fund of The Community Goodwill Industries Nellie Mae Education Foundation for the International, Inc. Foundation National Capital Region Philip L. Graham Fund Peninsula Community CAFAmerica Grant Thornton LLP Foundation The California Wellness The William Randolph Hearst The Summit Fund of Foundation Foundations Washington The Annie E. Casey Foundation The Home Depot United Nations Foundation Chevron Corporation Idealist.org Volunteers of America The Chronicle of Philanthropy The James Irvine Foundation Women & Philanthropy The Cleveland Foundation The Jovid Foundation Matching Gift Organizations Aetna Foundation The Kresge Foundation Richard and Susan Smith Family The Ford Foundation Hershey Trust Company Foundation

2005 ANNUAL REPORT 19 2005 Contributors

25th Anniversary Distinguished Leaders Circle of Associates The Associates form a leadership circle of individuals investing in the future of philanthropy and citizen action through personal gifts of $1,000 or more to Independent Sector. Edward H. Able, Jr. David S. Ford Patricia Read Donald M. Stewart Diana Aviv Barry D. Gaberman Bill Reese Eric Thurman Susan Berresford Brian Gallagher Sharene Rekow William E. Trueheart Jeffrey L. Bradach Peter B. Goldberg Skip Rhodes Paula Van Ness Debra Cabral Dahna Goldstein Scott Ridge Luz Vega-Marquis Hodding Carter III Darell Hammond Sherry Rockey Claire Wellington Patricia Nash Christel Malvina Rollins Kay Mary Beth Salerno William S. White Jennifer Dunlap Kevin Klose John Seffrin John C. Whitehead Wayne and Leslee Feinstein Lynn Lyss Ruth Shack James Williams Barbara D. Finberg † Jan Masaoka Edward Skloot Matthew Yale Allison Fine and Scott Peggy Sanchez Mills Lorie Slutsky Gary L. Yates Freiman William D. Novelli Jonathan Small Julie Floch Hilary Pennington Iain Sommerville † deceased

Annual Fund The following individuals and organizations supported Independent Sector in 2005. Anne L. Bryant J.D. Hokoyama Combined Federal • Peninsula Kathleen W. Buechel Lee, Julian, Stacey, and Campaign: • North East Pennsylvania Ellis Carter Debbie Lichter • Action for Boston Area Linda Hawes Clever Gabriella Morris Community Development, • Pikes Peak Region Copilevitz & Canter, LLC Adam Sonﬁ eld Inc. • San Bernardino Eugene C. Dorsey Scott Strumello • Community Health • South Pugent Sound Robert W. Edgar Russy Sumariwalla Charities of North Carolina • Southern Arizona Lewis M. Feldstein Alfred Taylor • Fort Sill-Lawton • United Way of El Paso Marilda Gandara Arturo Vargas • Gateway • United Way of Southeastern Christopher Gates Marcia Wheatley • Greater Southwest Texas Connecticut Mary Grimm M. Cass Wheeler • Midlands Area • National Capitol Area: J. Bryan Hehir Ruth Wooden • National Capitol Area Global Impact

Additional Thanks These individuals and organizations generously gave their time and expertise to IS. Robert Boisture and Marion R. Fremont-Smith, Ron and Kim Vandenberg, Robert J. Gould, Porter members of the Exempt Senior Research Fellow, Berkeley Merchant Novelli Organizations Practice Hauser Center for David Clayton, Harris Public Agenda in Group, Caplin & Nonproﬁ t Organizations, Interactive, Inc. collaboration with the Drysdale Harvard University Kettering Foundation

20 2005 ANNUAL REPORT 2005 Contributors

Funders of the Panel on the Nonproﬁ t Sector The Panel’s work to strengthen the nonproﬁ t sector would not be possible without the support of a broad array of organizations, including foundations and charities, and of individuals. AARP Evangelical Council for Financial McKesson Foundation The Ahmanson Foundation Accountability The Meadows Foundation American Cancer Society The Ford Foundation The Andrew W. Mellon Foundation Alcoa Foundation Bill & Melinda Gates Foundation Merrill Lynch & Co., Inc. American Diabetes Association GE Foundation Meyer Memorial Trust American Express Foundation Georgia Power Charles Stewart Mott Foundation American Heart Association The Wallace Alexander Gerbode National Alopecia Areata Foundation American Red Cross Foundation The Nature Conservancy The Associated Jewish Community Goodwill Industries International New Hampshire Charitable Foundation Federation of Baltimore Miriam and Peter Haas Fund The New York Community Trust The Atlantic Philanthropies Evelyn and Walter Haas, Jr. Fund The Samuel Roberts Noble Foundation Berks County Community Foundation The William and Flora Hewlett North Carolina Community The Boston Foundation Foundation Foundation Boy Scouts of America The James Irvine Foundation David and Lucile Packard Foundation Otto Bremer Foundation JCPenney Company Fund, Inc. Partnership for Prevention The California Wellness Foundation Jewish Community Federation of Peninsula Community Foundation The Annie E. Casey Foundation Cleveland The Pew Charitable Trusts * Central New York Community Jewish Federation of Greater Los The Pittsburgh Foundation Foundation, Inc. Angeles Rochester Area Community Chevron Corporation Jewish United Fund/Jewish Federation Foundation The Chicago Community Foundation of Metropolitan Chicago Rockefeller Brothers Fund The Edna McConnell Clark F. Martin & Dorothy A. Johnson The Rockefeller Foundation Foundation Family Fund at the Grand Haven The Seattle Foundation The Cleveland Foundation Area Community Foundation Skoll Foundation Robert S. Collier The Robert Wood Johnson Foundation Sonora Area Foundation The Community Foundation for The Joyce Foundation Stark Community Foundation Greater Atlanta Kalamazoo Community Foundation Surdna Foundation Community Foundation for Monterey W.K. Kellogg Foundation Take Charge America County John S. and James L. Knight Herman Art Taylor The Community Foundation of Santa Foundation Triangle Community Foundation Cruz County The Susan G. Komen Breast Cancer UJA Federation of Jewish Board Discretionary Grants of the Foundation Philanthropies of New York Community Foundation Serving The Kresge Foundation United Cerebral Palsy Richmond & Central Virginia The Lucent Technologies Foundation United Jewish Communities The Nathan Cummings Foundation Lumina Foundation for Education United Nations Foundation Cystic Fibrosis Foundation The John D. and Catherine T. United Way of America Doris Duke Charitable Foundation MacArthur Foundation Verizon Communications The Dyson Foundation A.L. Mailman Family Foundation, Inc. The Wallace Foundation Eastman Kodak Company March of Dimes Birth Defects Weingart Foundation Foundation YMCA of the USA

* Portion of a grant made to Independent Sector includes work to support the Panel 2005 ANNUAL REPORT 21 2005 Financial Summary Independent Sector completed 2005 in strong ﬁ nancial condition due to the continued support and dedication of member organizations and funders.

Revenue from membership dues grew by 21 percent in 2005 over 2004, and grants and contributions increased 24 percent during the same period. Some grants were given for multi-year projects and are refl ected as temporarily restricted in the fi nancial statements. Independent Sector continued to serve as the convener of the Panel on the Nonprofi t Sector as the Panel published its Final Report to Congress and the nonprofi t community. As with all restricted funds, grants in support of the Panel, along with the staff time and other expenses dedicated to the project, are recorded, tracked, and monitored separately from other program operations. IS continues to strengthen its internal controls, concentrating on transparency and accountability as well as adhering to the generally accepted accounting principles required for nonprofi t organizations. The fi nancial statements on the following pages provide an overview of IS’s fi scal position at the close of 2005.

Statement of Financial Position as of December 31, 2005

ASSETS Cash and cash equivalents $1,917,497 Investments 12,548,139 Grants and accounts receivable 2,091,869 Accrued interest receivable 9,946 Property and equipment, net 382,314 Supplemental executive retirement plan 157,581 Other assets 107,900 TOTAL ASSETS $17,215,246

LIABILITIES Accounts payable and accrued expenses $553,620 Deferred revenue 12,200 Deferred compensation 157,581 TOTAL LIABILITIES $723,401

NET ASSETS Undesignated $1,337,758 Designated 8,697,259 Temporarily restricted 6,456,828 TOTAL NET ASSETS $16,491,845 TOTAL LIABILITIES AND NET ASSETS $17,215,246

22 2005 ANNUAL REPORT 2005 Financial Summary

Statement of Activities and Changes in Net Assets for Year Ending December 31, 2005 Temporarily Unrestricted Restricted Total REVENUE Grants and contributions $300,338 $7,388,623 $7,688,961 Membership dues 2,629,578 - 2,629,578 Conference fees and sponsorships 817,402 - 817,402 Interest and dividend income 283,167 - 283,167 Publications sales and other 51,770 - 51,770 Net assets released from restrictions 5,382,117 (5,382,117) - TOTAL REVENUE $9,464,372 $2,006,506 $11,470,878 EXPENSES Program services: Panel on the Nonprofi t Sector $2,426,068 - $2,426,068 Annual Conference 1,131,347 - 1,131,347 Public Policy and Government Affairs 1,077,869 - 1,077,869 Communications/Marketing 802,892 - 802,892 Nonprofi t Sector Programs and Practice 615,816 - 615,816 Emerging Issues and Each year, independent accoun- Strategic Initiatives 416,452 - 416,452 tants conduct an examination Total program services $6,470,444 - $6,470,444 of IS’s books, records, and Supporting services: fi scal policies and procedures, General and administrative $522,600 - $522,600 Fundraising 243,821 - 243,821 and present audited fi nancial Membership development 102,637 - 102,637 statements to the IS Board of Total support services $869,058 - $869,058 Directors. The audited state- TOTAL EXPENSES $7,339,502 - $7,339,502 ments and the Form 990 are Change in net assets before net gain available on the IS website at on investments $2,124,870 $2,006,506 $4,131,376 www.independentsector.org. Unrealized gain on investments 222,375 - 222,375 Total change in net assets $2,347,245 $2,006,506 $4,353,751

Net assets, beginning of year 7,687,772 4,450,322 12,138,094 Net assets, end of year $10,035,017 $6,456,828 $16,491,845

Revenue Expenses

Other General and Annual Administrative Fundraising 3% Conference 3% Emerging Issues 7% Membership 1% 7% Strategic Initiatives 6% Nonproﬁ t Sector Programs and Panel on the Membership Practice 8% Nonproﬁ t Dues 23% Sector 33%

Communications/ Marketing 11%

Grants and Contributions 67% Public Policy and Governmental Affairs Annual Conference 15% 16%

2005 ANNUAL REPORT 23 Strengthening the Voice of the Charitable Community

Every day, Independent Sector’s members improve lives in communities across the country and around the world. This remarkably varied group—approximately 550 charities, foundations, and corporate giving programs—pursues missions in virtually every fi eld, from the environment to the arts, from education to health care, from human services to religion. Joining Independent Sector makes the voices of these organizations even stronger. IS provides leadership for America’s charitable community, bringing nonprofi ts together to strengthen democracy and to build a more ethical, more accountable sector. By drawing on the knowledge and commitment of its members, IS promotes higher standards, addresses common concerns, and protects the independence that our sector needs to remain a vital part of society. Becoming part of the Independent Sector coalition gives our members invaluable opportunities to: • Magnify their infl uence on public policies affecting the entire charitable community. • Join with other leaders to take collective action on major issues affecting the nonprofi t sector, such as effectiveness and funding. • Improve practices in key areas such as accountability and transparency. • Build connections with leaders from diverse organizations to exchange ideas and best practices. • Develop collaborative strategies to build a vibrant democracy and advance the common good.

By joining IS, members become part of a group of nonprofit leaders working together to strengthen the sector today and shape its future. Learn more about membership in Independent Sector by visiting www.independentsector.org, or by contacting Director of Membership Michael Connor at [email protected] or phone 202-467-6100.

www.independentsector.org • 202-467-6100

24 2005 ANNUAL REPORT Independent Sector Members

AARP American Diabetes Association America’s Promise - The Alliance for Washington, DC Alexandria, VA Youth** The Academy for Leadership and American Express Company Alexandria, VA Governance, (JCLA) New York, NY America’s Second Harvest Columbus, OH American Foundation for the Blind Chicago, IL Arab Community Center for New York, NY AmericaSpeaks** Economic & Social Services** American Health Quality Washington, DC Dearborn, MI Association** Amigos de las Americas Actknowledge Inc. Washington, DC Houston, TX New York, NY American Heart Association Anti-Defamation League (ADL) Aetna Foundation, Inc.* Dallas, TX New York, NY Hartford, CT American Hospital Association** Appalachian College Association** Aga Khan Foundation U.S.A. Washington, DC Berea, KY Washington, DC American Humanics Lance Armstrong Foundation Agency Certifi cation Initiative** Kansas City, MO Austin, TX Boynton Beach, FL American Institute of Philanthropy Asian American Justice Center Alcoa Foundation* Chicago, IL Washington, DC Pittsburgh, PA American Jewish Committee Long Asian Pacifi c American Institute for The Alford Group Inc.** Island Chapter** Congressional Studies (APAICS) Evanston, IL Jericho, NY Washington, DC Consuelo Zobel Alger Foundation American Jewish Joint Distribution The Aspen Institute Honolulu, HI Committee † Washington, DC Alliance for Children and Families* New York, NY The ASPIRA Association* Milwaukee, WI American Legacy Foundation Washington, DC Alliance for Excellent Education Washington, DC Associated Grant Makers (AGM)** Washington, DC American Lung Association** Boston, MA Alliance of Nonprofi t Mailers Washington, DC Associated Press Managing Editors Washington, DC American Museum of Natural Association Foundation Inc † Altria Group, Inc. History New York, NY New York, NY New York, NY Association for Healthcare American Arts Alliance* American Red Cross* Philanthropy* Washington, DC Washington, DC Falls Church, VA American Association of American Society of Association Association for Research on Community Colleges Executives Nonprofi t Organizations & Washington, DC Washington, DC Voluntary Action (ARNOVA) * Charter American Association of Museums American Symphony Orchestra Indianapolis, IN member Washington, DC League Association of Advanced Rabbinical ** New member American Cancer Society* New York, NY & Talmudic Schools (AARTS) Atlanta, GA Americans for Indian Opportunity New York, NY in 2005 American Civil Liberties Union Albuquerque, NM Association of American Medical † New member Foundation** Americans for the Arts* Colleges** in 2006 New York, NY Washington, DC Washington, DC through May. American Council on Education Americans for UNFPA, Inc.** Association of Art Museum Washington, DC New York, NY Directors New York, NY

2005 ANNUAL REPORT 25 Members

Association of Baltimore Area Blue Shield of California Marguerite Casey Foundation Grantmakers Foundation** Seattle, WA Baltimore, MD San Francisco, CA Catholic Charities USA* Association of Direct Response BoardSource Alexandria, VA Fundraising Counsel** Washington, DC Catholic Health Association of the Washington, DC The Boston Foundation** United States † Association of Governing Boards of Boston, MA Washington, DC Universities and Colleges* Otto Bremer Foundation Catholic Network of Volunteer Washington, DC Saint Paul, MN Service Association of Jewish Family and The Bridgespan Group Takoma Park, MD Children’s Agencies Boston, MA CBM Credit Education Foundation, East Brunswick, NJ Bridging, Inc. † Inc. Association of Junior Leagues Minneapolis, MN Madison, WI International* The Andrea and Charles Bronfman CDC Foundation New York, NY Foundation, Inc. † Atlanta, GA Association of Lutheran New York, NY The Center for Effective Development Executives The Bruderhof Foundation, Inc** Philanthropy Madison, WI Rifton, NY Cambridge, MA Association of Public Television Burr, Pilger & Mayer** Center for Lobbying in the Public Stations (APTS) San Francisco, CA Interest Washington, DC The Bush Foundation Washington, DC Association of PVO Financial Saint Paul, MN Center for Non-Profi t Corporations Managers** C.E. and S. Foundation** North Brunswick, NJ Westport, CT Louisville, KY Center for Nonprofi t Excellence Association of Small Foundations CAFAmerica Akron, OH Bethesda, MD Alexandria, VA Center for Nonprofi t Excellence The Atlantic Philanthropies California Association of Nonprofi ts Albuquerque, NM New York, NY Los Angeles, CA Center for Nonprofi t Excellence** Mary Reynolds Babcock The California Endowment Colorado Springs, CO Foundation* Los Angeles, CA Center on Budget and Policy Winston Salem, NC California HealthCare Foundation Priorities † Bank of America Foundation Oakland, CA Washington, DC Charlotte, NC The California Wellness Foundation The Center on Philanthropy Bayer Center for Nonprofi t Woodland Hills, CA and Public Policy, University of Management, Robert Morris Camp Fire USA* Southern California University** Kansas City, MO Los Angeles, CA Pittsburgh, PA Campaign for Tobacco-Free Kids Center on Philanthropy and Civil BBB Wise Giving Alliance Washington, DC Society, The Graduate Center, Arlington, VA CANBE: Community Association of The City University of New York S.D. Bechtel, Jr. Foundation Nonprofi t Business Executives New York, NY San Francisco, CA Blue Springs, MO The Center on Philanthropy At BellSouth Corporation Cancer Care, Inc. Indiana University Atlanta, GA New York, NY Indianapolis, IN Benton Foundation Carnegie Corporation of New York* Center on Wealth and Philanthropy, Washington, DC New York, NY Boston College Big Brothers Big Sisters of America The Case Foundation** Chestnut Hill, MA Philadelphia, PA Washington, DC Centre for Management & Blackbaud, Inc. The Annie E. Casey Foundation Technology Charleston, SC Baltimore, MD Baltimore, MD

26 2005 ANNUAL REPORT Members

Charities Review Council † Community Counselling Service Council for American Private Saint Paul, MN Co. Inc. Education* Chevron Corporation* New York, NY Germantown, MD San Ramon, CA The Community Foundation for Council of Michigan Foundations The Chicago Community Trust Greater Atlanta Grand Haven, MI Chicago, IL Atlanta, GA Council on Foundations* Chicago Tribune Foundation Community Foundation for Washington, DC Chicago, IL Southeastern Michigan The Nathan Cummings Foundation Cisco Systems, Inc. Detroit, MI New York, NY San Jose, CA The Community Foundation for the Cystic Fibrosis Foundation City Connect Detroit National Capital Region Bethesda, MD Detroit, MI Washington, DC DaimlerChrysler Corporation Fund City Year, Inc. Community Foundations of Auburn Hills, MI Boston, MA America, Inc. Daniels Fund † Civic Ventures † Louisville, KY Denver, CO San Francisco, CA Community Human Services Inc.** Day, Berry & Howard Foundation, CLAL - The National Jewish Center Chicago, IL Inc. for Learning and Leadership Community Partners** Hartford, CT New York, NY Los Angeles, CA Delaware Valley Grantmakers Edna McConnell Clark Foundation Congressional Hispanic Caucus Philadelphia, PA New York, NY Institute, Inc. DMA Nonprofi t Federation The Cleveland Foundation* Washington, DC Washington, DC Cleveland, OH The Congressional Hispanic Demos: A Network for Ideas and Close Up Foundation Leadership Institute, Inc. (CHLI) Action Alexandria, VA Washington, DC New York, NY The Coca-Cola Company* Connecticut Council for Gaylord and Dorothy Donnelley Atlanta, GA Philanthropy Foundation College Foundation of UVA** Hartford, CT Chicago, IL Charlottesville, VA Connelly Foundation Donors Forum of Chicago College Summit** Conshohocken, PA Chicago, IL Washington, DC The Conservation Fund The Herbert H. and Grace A. Dow Colorado Association of Nonprofi t Arlington, VA Foundation Organizations Consistent Computer Bargains Midland, MI Denver, CO Racine, WI Dress for Success, Columbia Foundation Consumer Consortium on Assisted Indianapolis † San Francisco, CA Living Indianapolis, IN The Columbus Foundation Falls Church, VA Doris Duke Charitable Foundation Columbus, OH Consumers Union of the U.S. New York, NY Committee To Encourage Corporate Yonkers, NY DuPont* Philanthropy** Jack Kent Cooke Foundation** Wilmington, DE New York, NY Lansdowne, VA Duquesne University, Nonprofi t * Charter Commonfund Institute** Copilevitz & Canter LLC Leadership Institute member Wilton, CT Kansas City, MO Pittsburgh, PA ** New member Commonwealth Fund** Peter C. Cornell Trust The Dyson Foundation** in 2005 New York, NY Snyder, NY Millbrook, NY † New member The Communications Network, Inc. Council for Advancement and Easter Seals in 2006 Silver Spring, MD Support of Education (CASE)* Chicago, IL through May. Washington, DC Echoing Green New York, NY

2005 ANNUAL REPORT 27 Members

Ecumenical Center for Stewardship American Foundation for AIDS The Wallace Alexander Gerbode Studies Research (AMFAR) Foundation Indianapolis, IN New York, NY San Francisco, CA Educap Inc Foundation for Chiropractic German Marshall Fund of the McLean, VA Education & Research** United States** El Pomar Foundation Norwalk, IA Washington, DC Colorado Springs, CO The Foundation for Community Gill Foundation Elderworks Empowerment Denver, CO Scarsdale, NY Dallas, TX Girl Scouts of the USA* Environmental Defense Foundation for Independent Higher New York, NY New York, NY Education Girls Incorporated* Evangelical Council for Financial Washington, DC New York, NY Accountability* Foundation for the Mid South The Gleitsman Foundation Winchester, VA Jackson, MS Malibu, CA Executive Alliance Foundation of the National Student The Global Fund for Children Seattle, WA Nurses’ Association, Inc. Washington, DC The Eye-Bank for Sight Restoration, Brooklyn, NY Global Fund for Women Inc.** FoundationWorks San Francisco, CA New York, NY Washington, DC Global Giving** Maurice Falk Fund Franklin McKinley Education Bethesda, MD Pittsburgh, PA Foundation Global Impact Family Promise San Jose, CA Alexandria, VA Summit, NJ Freeborn Foundation The Goldman Sachs Foundation Farmworker Justice Fund, Inc.** Stamford, CT New York, NY Washington, DC The Fresh Air Fund* Goodwill Industries International, Fedcap Rehabilitation Services, Inc. New York, NY Inc. New York, NY Friedlander Family Fund** Rockville, MD The Fetzer Institute, Inc.** Cincinnati, OH The Grace Children’s Foundation Kalamazoo, MI Lloyd A. Fry Foundation New York, NY Fidelity Foundation** Chicago, IL Granite State Association of Boston, MA Fulbright Association** Nonprofi ts** Florida Association of Nonprofi t Washington, DC Concord, NH Organizations Fund for Theological Education The Grant Center † Miami Lakes, FL Atlanta, GA Memphis, TN Florida Earth Foundation Bill & Melinda Gates Foundation Grant Thornton LLP West Palm Beach, FL Seattle, WA Vienna, VA Florida Philanthropic Network** Gay and Lesbian Victory Fund and Grantmakers for Effective Winter Park, FL Leadership Institute Organizations The Ford Foundation* Washington, DC Washington, DC New York, NY GE Foundation Grantmakers Forum of New York Ford Motor Company Fund* Fairfi eld, CT Rochester, NY Dearborn, MI General Conference of Seventh-day Grantmakers In Health Forum of Regional Associations of Adventists* Washington, DC Grantmakers Silver Spring, MD William Caspar Graustein Washington, DC General Mills Foundation Memorial Fund The Foundation Center* Minneapolis, MN Hamden, CT New York, NY Georgia Center for Nonprofi ts Great Lakes Colleges Association** Atlanta, GA Ann Arbor, MI

28 2005 ANNUAL REPORT Members

Greater Bridgeport Area Foundation The William and Flora Hewlett International Association of Jewish Bridgeport, CT Foundation* Vocational Services (IAJVS) The Gries Family Foundation Menlo Park, CA Philadelphia, PA Cleveland, OH High/Scope Educational Research International Primate Protection GuideStar-Philanthropic Research, Foundation League Inc. Ypsilanti, MI Summerville, SC Williamsburg, VA Hispanics in Philanthropy International Society for Third The George Gund Foundation* San Francisco, CA Sector Research Cleveland, OH Hole In The Wall Gang Fund Baltimore, MD Walter and Elise Haas Fund* New Haven, CT INTIMAN Theater** San Francisco, CA The Home Depot Foundation** Seattle, WA Evelyn and Walter Haas, Jr. Fund Atlanta, GA Iowa Nonprofi t Resource San Francisco, CA The Home Depot, Inc.** Center,University of Iowa Half the Sky Foundation** Atlanta, GA Iowa City, IA Berkeley, CA The Hospice Foundation of the The James Irvine Foundation* Hallmark Corporate Foundation Florida Suncoast † San Francisco, CA Kansas City, MO Clearwater, FL Islamic Society of North America HandKind Company The Hospital for Special Surgery, Plainfi eld, IN Chicago, IL New York City JA Worldwide Hands On Network, Inc. New York, NY Colorado Springs, CO Atlanta, GA Houston Endowment Inc. Japanese American National Mary W. Harriman Foundation Houston, TX Museum New York, NY Hudson-Webber Foundation Los Angeles, CA Hartford Courant Foundation** Detroit, MI JCPenney Company Fund* Hartford, CT Humanity First, USA Dallas, TX The Harwood Institute Silver Spring, MD Jewish Agency for Israel** Bethesda, MD IBM International Foundation* New York, NY Hawaii Community Foundation** Armonk, NY Jewish Funders Network Honolulu, HI Idaho Nonprofi t Development New York, NY The Edward W. Hazen Foundation* Center † JM Foundation New York, NY Boise, ID New York, NY Healthy Family Initiatives** Idealist.Org Jobs for the Future Houston, TX New York, NY Boston, MA William Randolph Hearst ImportantGifts † Johnson & Johnson* Foundations New York, NY New Brunswick, NJ New York, NY Indiana Grantmakers Alliance** The Robert Wood Johnson The Howard Heinz Endowment † Indianapolis, IN Foundation Pittsburgh, PA Institute for Global Ethics Princeton, NJ H. John Heinz III Center for Camden, ME The Johnson Foundation, Inc. * Charter Science, Economics and the Institute for Governance and Racine, WI member Environment Accountabilities, Virginia Tech Joint Action in Community Service, ** New member Washington, DC Alexandria, VA Inc. (JACS) in 2005 Helen Bader Institute for Nonprofi t InterAction-American Council for Washington, DC † New member Management Voluntary International Action Joint Center for Political and in 2006 Milwaukee, WI Washington, DC Economic Studies through May. Helping Teens Succeed The Interfaith Alliance Foundation Washington, DC Atlanta, GA Washington, DC The Joyce Foundation F. B. Heron Foundation International Aid** Chicago, IL New York, NY Spring Lake, MI

2005 ANNUAL REPORT 29 Members

KaBOOM! Inc. The Leukemia and Lymphoma The McKnight Foundation Washington, DC Society, Inc.** Minneapolis, MN The Henry J. Kaiser Family Washington, DC The Meadows Foundation Foundation* Lilly Endowment, Inc.* Dallas, TX Menlo Park, CA Indianapolis, IN The Andrew W. Mellon Foundation† Kansas Health Foundation The Looking Glass Institute** New York, NY Wichita, KS Pittsburgh, PA Richard King Mellon Foundation Ewing Marion Kauffman Louisiana Association of Nonprofi t Pittsburgh, PA Foundation Organizations † MEM Associates, Inc. Kansas City, MO Baton Rouge, LA New York, NY W.K. Kellogg Foundation Lucent Technologies Foundation The John Merck Fund Battle Creek, MI New Providence, NJ Boston, MA Kellogg School of Management, Lumina Foundation for Education Merrill Lynch & Co. Foundation, Northwestern University Indianapolis, IN Inc. Evanston, IL Lutheran Services in America New York, NY The Kerr Foundation, Inc. Baltimore, MD MetLife Foundation Oklahoma City, OK M. Booth and Associates** Long Island City, NY Charles F. Kettering Foundation New York, NY Metropolitan Association for Dayton, OH The John D. and Catherine T. Philanthropy John S. and James L. Knight MacArthur Foundation Saint Louis, MO Foundation Chicago, IL The Metropolitan Museum of Art Miami, FL Maddie’s Spirit New York, NY The Susan G. Komen Breast Cancer Alameda, CA Mexican American Legal Defense Foundation Management Leadership for and Educational Fund (MALDEF) Dallas, TX Tomorrow** Los Angeles, CA The Kosciuszko Foundation, Inc. New York, NY Eugene and Agnes E. Meyer New York, NY Mandel Center for Nonprofi t Foundation KPMG Foundation** Organizations, Case Western Washington, DC Montvale, NJ Reserve University Michael Reese Health Trust Kraft Foods † Cleveland, OH Chicago, IL Northfi eld, IL The Mary Elizabeth & Gordon B. Michigan Nonprofi t Association The Kresge Foundation Mannweiler Foundation Inc.** Lansing, MI Troy, MI Cross River, NY Midwest Center for Nonprofi t Land Trust Alliance, Inc.** March of Dimes Birth Defects Leadership Washington, DC Foundation* Kansas City, MO Leader To Leader Institute** White Plains, NY The Minneapolis Foundation** New York, NY John and Mary R. Markle Minneapolis, MN Leadership Conference on Civil Foundation Minnesota Council of Nonprofi ts Rights, Leadership Conference New York, NY Saint Paul, MN Education Fund** Maryland Association of Nonprofi t Alan Minskoff & Royanne Minskoff Washington, DC Organizations Foundation Leadership Education for Asian Baltimore, MD Boise, ID Pacifi cs (LEAP) McCormick Tribune Foundation* Mississippi Center for Nonprofi ts Los Angeles, CA Chicago, IL Jackson, MS League of Women Voters of the McGregor Fund Mitsubishi Electric America United States** Detroit, MI Foundation** Washington, DC McKesson Foundation* Arlington, VA San Francisco, CA David and Yetta Moeser Fund** Boston, MA

30 2005 ANNUAL REPORT Members

Gordon and Betty Moore National Center for Charitable National Network for Youth Foundation † Statistics, Urban Institute † Washington, DC San Francisco, CA Washington, DC National Ovarian Cancer Morino Institute The National Center for Family Coalition** Reston, VA Philanthropy Boca Raton, FL Charles Stewart Mott Foundation* Washington, DC National Press Foundation Flint, MI The National Center on Nonprofi t Washington, DC National 4-H Council Enterprise National Public Radio Chevy Chase, MD Reston, VA Washington, DC National Alliance for Choice in National Civic League, Inc. The National Society of Collegiate Giving Denver, CO Scholars Portland, ME National Council for International Washington, DC National Alliance to End Visitors National Urban Fellows, Inc.* Homelessness Washington, DC New York, NY Washington, DC National Council of Churches USA National Wildlife Federation* National Alopecia Areata New York, NY Reston, VA Foundation** National Council of La Raza National Youth Leadership Council San Rafael, CA (NCLR)* Saint Paul, MN The National Architectural Trust Washington, DC Native American Rights Fund Washington, DC National Council of Nonprofi t Boulder, CO National Assembly of State Arts Associations Natural Resources Defense Council Agencies (NASAA)* Washington, DC New York, NY Washington, DC National Council of Private The Nature Conservancy National Association for Visually Agencies for the Blind and Visually Arlington, VA Handicapped Impaired ** NCSL Foundation for State New York, NY Saint Louis, MO Legislatures National Association of National Council on Child Abuse & Denver, CO Independent Colleges and Family Violence NEC Foundation of America Universities Washington, DC Islandia, NY Washington, DC National FFA Nehemiah Community Foundation National Association of Indianapolis, IN Sacramento, CA Independent Schools National Health Council* NeighborWorks America Washington, DC Washington, DC Washington, DC National Association of Latino National Health Foundation Nellie Mae Education Foundation Elected & Appointed Offi cials Los Angeles, CA Quincy, MA Educational Fund The National Health Museum Network for Good** * Charter Los Angeles, CA Washington, DC Bethesda, MD member National Association of Service & National Human Services Assembly New Hampshire Charitable ** New member Conservation Corps (NASCC) Washington, DC Foundation in 2005 Washington, DC National Humanities Alliance Concord, NH † New member National Business Offi cers Washington, DC The New York Community Trust* in 2006 Association National Immigration Forum New York, NY through May. Boulder, CO Washington, DC New York Regional Association of National CASA Association National Institute on Money in Grantmakers Seattle, WA State Politics New York, NY National Catholic Development Helena, MT The Samuel Roberts Noble Conference, Inc.* National Multiple Sclerosis Society Foundation Hempstead, NY Washington, DC Ardmore, OK

2005 ANNUAL REPORT 31 Members

Nonprofi t Academic Centers Parent-Child Home Program Retirement Research Foundation Council Port Washington, NY Chicago, IL Cleveland, OH Park Foundation Charles H. Revson Foundation* Nonprofi t Coordinating Committee Ithaca, NY New York, NY of New York Partnership for Prevention RGK Foundation** New York, NY Washington, DC Austin, TX Nonprofi t Finance Fund PBS Foundation The Rhode Island Foundation** Washington, DC Alexandria, VA Providence, RI Nonprofi t Enterprise at Work † Peninsula Community Foundation Sid W. Richardson Foundation Ann Arbor, MI San Mateo, CA Fort Worth, TX Nonprofi t Network † Pennsylvania Association of Fannie E. Rippel Foundation Vancouver, WA Nonprofi t Organizations Basking Ridge, NJ The Nonprofi t Roundtable of Harrisburg, PA Rochester Area Community Greater Washington** People Acting For Community Foundation Washington, DC Together, Inc.** Rochester, NY The Nord Family Foundation Miami, FL Rockefeller Brothers Fund* Amherst, OH The Pew Charitable Trusts New York, NY North Carolina Center for Philadelphia, PA Rockefeller Foundation* Nonprofi ts Philadelphia Health Management New York, NY Raleigh, NC Services Corporation Rockefeller Philanthropy Northern California Grantmakers Philadelphia, PA Advisors** San Francisco, CA The Virginia G. Piper Charitable New York, NY Northrop Grumman Corporation Trust** Rose Community Foundation** Los Angeles, CA Paradise Valley, AZ Denver, CO Northwest Area Foundation The Pittsburgh Foundation Rosenberg Foundation* Saint Paul, MN Pittsburgh, PA San Francisco, CA NYC Center for Charter School Points of Light Foundation The Gary Rosenthal Collection** Excellence** Washington, DC Kensington, MD New York, NY Policy Development** RR Donnelley Ohio Grantmakers Forum Amherst, MA Chicago, IL Columbus, OH Polk Bros. Foundation † Russell Sage Foundation* Ohio Jewish Communities Chicago, IL New York, NY Columbus, OH The Prudential Foundation Salem College** Olive Crest - Homes & Services for Newark, NJ Winston Salem, NC Abused Children Public Agenda The Salk Institute for Biological Santa Ana, CA New York, NY Studies** The Omidyar Network Public Allies, Inc. San Diego, CA Redwood City, CA Milwaukee, WI The Salvation Army National Open Society Institute - New York Public Conversations Project Headquarters* New York, NY Watertown, MA Alexandria, VA Operation Respect, Inc. Public Radio International San Diego Grantmakers** New York, NY Minneapolis, MN La Jolla, CA Oral Health America Raising More Money The San Francisco Foundation* Chicago, IL Seattle, WA San Francisco, CA Outreach International Raytheon Company Sara Lee Foundation Independence, MO Waltham, MA Chicago, IL David and Lucile Packard Research! America Dr. Scholl Foundation* Foundation Alexandria, VA Northbrook, IL Los Altos, CA

32 2005 ANNUAL REPORT Members

Charles and Helen Schwab State Street Corporation Verizon Foundation** Foundation Boston, MA New York, NY San Mateo, CA Statedemocracy Foundation Volunteer Consulting Group/Board The Score Foundation** Bowie, MD Net USA Sarasota, FL Student Conservation Association* New York, NY The Seattle Foundation Charlestown, NH VolunteerMatch Seattle, WA Surdna Foundation, Inc. San Francisco, CA Service Employees International New York, NY Volunteers of America* Union † Szekely Family Foundation Alexandria, VA Washington, DC San Diego, CA The Wallace Foundation ShoreBank Taconic Foundation Inc.* New York, NY Chicago, IL New York, NY Izaak Walton League of America* The Sierra Club Foundation Target Foundation* Gaithersburg, MD San Francisco, CA Minneapolis, MN Washington Grantmakers Sikkuy: The Association for the The Teachers Network, Inc. Washington, DC Advancement of Civic Equality New York, NY Washington Mutual Bank Jerusalem, Israel Tides Seattle, WA Harry Singer Foundation San Francisco, CA WATCH, Inc.** Carmel, CA Time Warner Inc. Coral Gables, FL Skillman Foundation Sterling, VA The Harry and Jeanette Weinberg Detroit, MI Translational Research Fund Foundation** Skoll Foundation Bethesda, MD Owings Mills, MD Palo Alto, CA Trust for Public Land** The Robert A. Welch Foundation** Alfred P. Sloan Foundation* San Francisco, CA Houston, TX New York, NY UJA Federation of Jewish Wildfl owers Institute Richard and Susan Smith Family Philanthropies of New York, Inc. San Francisco, CA Foundation New York, NY Women and Philanthropy* Chestnut Hill, MA Union Institute & University Washington, DC The John Ben Snow Foundation Cincinnati, OH Women’s City Club of New York Syracuse, NY United Cerebral Palsy** New York, NY Social Enterprise Alliance** Washington, DC Robert W. Woodruff Foundation* Los Angeles, CA United Jewish Communities Atlanta, GA Society for Nonprofi t Organizations New York, NY Woods Charitable Fund, Inc. Canton, MI United Leukodystrophy Foundation Lincoln, NE Sojourners** Sycamore, IL Woods Fund of Chicago Washington, DC United Nations Foundation Chicago, IL South Carolina Association of Washington, DC Xerox Corporation* Nonprofi t Organizations United Negro College Fund* Stamford, CT Columbia, SC Fairfax, VA YMCA of the USA* * Charter Southern California Grantmakers United States Conference of Chicago, IL member Los Angeles, CA Catholic Bishops* Young Audiences, Inc. ** New member The Spencer Foundation* Washington, DC New York, NY in 2005 Chicago, IL United Way of America* Youth Service America † New member St. Vincent’s Seminary** Alexandria, VA Washington, DC in 2006 Philadelphia, PA UniversalGiving YWCA of the USA* through May. Starlight Starbright Children’s San Francisco, CA Washington, DC Foundation Utah Nonprofi ts Association Los Angeles, CA Salt Lake City, UT

2005 ANNUAL REPORT 33 Staff

Offi ce of the President Emerging Issues and Resource Development Finance and Strategic Initiatives Administration Diana Aviv Sherry L. Rockey President and CEO Claire S. Wellington Vice President Malvina Rollins Kay Vice President Vice President and CFO Gina Catedrilla Development Assistant to the President Nadine Jalandoni James Williams Director, Research Services Barbara Bush Controller Tracy L. Fleming Director Executive Assistant Bob Golombik Kelly Beckner Director, Special Projects Meghan Wilson Director, Human Resources Development Associate Public Policy and Scott Rosenblum Dan Hall Government Affairs Junior Researcher Lyubov Mullen Director, Information Development Specialist Technology Patricia Read Jennifer Edwards (consultant) Senior Vice President Executive Assistant Membership Marian McGhie Steven Bloom D. Michael Connor Junior Accountant Director, Government Relations Communications and Director Marketing Chiquita Powell Mary Coogan Anne Tishkoff Customer Services Assistant Assistant Director, Government Patricia Nash Christel Assistant Director Relations Vice President Eric Williams Roberta Speight Offi ce Assistant Gloria Kemp Engelke Bill Wright Database Manager Assistant Director, Community Director Tameka Baylor Outreach Conference Planning Administrative Assistant Ann Kammerer Sarah Tomeo Print and Electronic Angelia Bland Legislative Associate Communications Associate Director, Conferences and Meeting Planning Staci Morgan Matt Teper Executive Assistant Speechwriter/ April Barnett Communications Associate Executive Assistant Nonprofi t Sector Elizabeth Jenkins Programs and Practice Media and Communications Associate James Siegal Vice President Gudrun Hofmeister Marketing and Promotions Kabi Pokhrel Associate Policy Associate, Civic Engagement Jocabel Michel Reyes Policy Associate, Ethics and Accountability

34 2005 ANNUAL REPORT Back cover: Among those joining the “meeting ground” at the Independent Sector 25th Anniversary Conference in Washington (from left): • Herman Art Taylor, president and CEO, BBB Wise Giving Alliance; • Susan Berresford, president, The Ford Foundation; • Ronald Haskins (left), senior fellow at the Brookings Institution and an architect of welfare reform, and Robert Greenstein, founder and executive director of the Center on Budget and Policy Priorities; and • Charles Kamasaki (right), senior vice president, National Council of La Raza, and Kathleen McCarthy, director, Center on Philanthropy and Civil Society, City University of New York.

2005 ANNUAL REPORT 35 1200 Eighteenth Street, NW, Suite 200 Washington, DC 20036 202-467-6100 | fax 202-467-6101 www.independentsector.org