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A N N U a L R E P O ANNUAL REPORT 2003 T ABLE OF CONTENTS Welcome ................................................................3 Chairman’s Message ..............................................4 President’s Message................................................5 Grantmaking Giving......................................................................7 Selected Grants ....................................................14 How to Apply for a Grant ........................................17 Gifts to The Trust How to Give to The Trust ........................................18 Guidelines for Attorneys ........................................23 Financial Statements Statements............................................................24 Notes ....................................................................27 Auditors’ Report ....................................................29 Investment Committee ..........................................31 Financial Highlights ................................................31 Boards and Staff Governing Body......................................................32 Suburban Divisions ................................................34 Trustee Banks ......................................................38 Staff ....................................................................39 Funds and Grants Funds in 2003 ......................................................40 Grants in 2003 ......................................................51 2 An athlete in the Row New York City program pulls to the finish. 3 WELCOME For 80 years, The New York is able to operate with a modest fee structure, preserv- Community Trust has invited ing charitable money for charitable activities. And, as a charitable New Yorkers to join public charity, we offer the maximum tax deduction on our community of donors who contributions allowed by law. collectively envision a city and a world that are vital, compas- Donors can contribute now and through their wills. We sionate, and harmonious. They offer two kinds of unrestricted funds: One takes full are realistic optimists, fully advantage of the services we offer, ensuring that gifts aware of the challenges, yet meet the City’s most pressing needs now and in the hopeful that their contributions future. The second allows donors to recommend grants will indeed make a difference. during their lifetimes. Donors also can establish field-of- interest funds; whether the purpose is broad or narrow, With more than 1,700 charitable funds, each estab- the organizations chosen to benefit will be selected for lished by an individual, family, or business, The Trust their ability to carry out effective programs. Or, donors administers assets of $1.8 billion. We invest the princi- can set up field-of-interest funds that they advise. pal and make grants that support an array of programs Donors can also set up funds to benefit a specific chari- that benefit our city, including those that meet needs not ty or charities, with the knowledge that should circum- imagined when the funds were created. stances change so that it becomes unnecessary, unde- sirable, impractical, or impossible to continue making The Trust distributed $118 million in grants in 2003. Each grants, our Distribution Committee will make sure that of those grants was investigated by Trust staff and approved the gift is still used for important charitable purposes. by our Distribution Committee, a board composed of 12 distinguished New Yorkers appointed by a variety of civic The Trust’s founders left us the model for an institution institutions and our 13 respected trustee banks. that harnesses the fuel of hope, money, creativity, and commitment to educate our children, revitalize our neigh- Establishing a fund in The Trust is simple and quick, and borhoods, put people to work, nourish the arts, and nur- we offer a range of services. We have the flexibility to ture the fragile bonds of community. In a world made accept a wide variety of assets and we offer a number fearful and uncertain by terrorism, and in a city that has of vehicles for accomplishing a donor’s financial and experienced its deadly results, some might expect to estate planning objectives. We take care of all govern- find much cynicism and despair. Our donors and, ment reporting, grant investigations and paperwork, through their generosity, the nonprofits we support, are auditing, and accounting. Because of our size, The Trust the visible evidence that New York is unbowed. CHAIRMAN’S MESSAGE The beginning of 2003 looked none too promising. Our City had very serious fiscal prob- lems, which were in many ways shared by the whole country. Cutbacks and taxes were in the Second, we are practical. We know that much can be headlines every day. Charities done to help people in difficult situations, improve were suffering from shrinking health and education, keep the arts flourishing, and pre- endowments and diminishing serve the environment, and we know how to initiate and contributions, while receiving implement programs in all these fields. Our staff is increasing requests for servic- acutely aware of the problems of the City. It cares about es, and individuals had lower those in need, understands the implications of laws and incomes or, all too often, had policies, and knows how to form successful partner- lost their jobs. ships. Our donors can turn to us for good guidance, and those who have created endowed funds can feel sure Where did The Trust fit into this picture? Thanks to good that we are working effectively to address critical needs. management, the generosity of our donors, and the suc- cess of our Investment Committee under the leadership Finally, we are optimistic. We hope and believe that solu- of Distribution Committee member Lulu Wang, The Trust tions can be found, that progress can be made. We are did not suffer financially as much as some institutions. a positive force. It could not—it never could—right every wrong, respond to every need, but, in a challenging year, it accomplished It is always a challenge to be a New Yorker. But the wonders, relying on its special strengths. stress is matched to some extent by the satisfaction of being able to help our City and our neighbors. The What are these strengths? donors, the Distribution Committee, and the staff of The Trust are a remarkable band of public-spirited individuals First, our unceasing research concerning charities and who are, day by day, program by program, improving the our ability to network keep us constantly “in training.” quality of life in New York. We can sprint. We can run marathons. In good times and bad, we are able to respond to emergencies and we 4 also are able to address long-term problems. Anne P. Sidamon-Eristoff 5 PRESIDENT’S MESSAGE This annual report is about blue- overseen by an independent group of community leaders, prints—for structures, strategies, that would make grants from these funds to effective non- and success. The blueprint on profits in their region and have the authority to vary the our cover—permission to repro- purpose of a fund should circumstances change. duce was graciously given to us by Richard S. Hayden, the chief There now are some 700 community foundations, and in restoration architect who drew it the century since the first was founded, their structures when his firm, Swanke Hayden have changed. Many are now corporations, responsible for Connell Architects, was involved investing charitable assets as well as distributing them. in the 1986 restoration of the Some, such as The New York Community Trust, are in both Statue of Liberty—appealed to trust and corporate form. In addition to managing charitable us for several reasons, apart funds left by will, they also offer a variety of other options, from its beauty. It offered us a including donor-advised funds and funds that benefit a par- fresh look at a beloved icon ticular area of charitable interest. They have become an familiar to the world, yet one essential part of individuals’ financial and estate planning, seen so often it has become a and continue to give donors the assurance that their gen- cliché. It reminded us that the erosity will always be used to help future generations. Statue, although a symbol of freedom and a gift to our coun- Over the years, community foundations have developed try, stands in New York Harbor a sophisticated understanding of their regions and and is uniquely identified with become adept at making grants to local nonprofits that our city. And it showed the plan can effectively and efficiently tackle problems and con- underlying the structure. tribute to the vitality, health, and stability of their com- munities. Each of us has adapted the original blueprint Our plan, originally conceived by a banker in 1914, had as so that we can respond to changing times and changing its genesis two problems. The first was the “Dead Hand,” issues. In the following pages, you will learn how one those conditions placed on many charitable bequests community foundation has used this flexible model to that, over time, became impossible or unnecessary to ful- make our city a better place in which to live and keep fill. The second was leaving to bankers, in whose hands faith with our donors. these charitable trusts were placed, the task of deciding how to carry out the philanthropic wishes of the donors. The result was the community foundation, a public charity Lorie A. Slutsky The Campaign for Fiscal Equity’s landmark legal victory mandates the resources needed for a sound basic education for these
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