RSF WAS FOUNDED on the CONCEPT of Service Through Finance for Social Benefit

rsf MARCH 31, 2005 QuarterlyAN IMPACT REPORT OF THE RUDOLF STEINER FOUNDATION’S ACTIVITIES

IN THIS ISSUE RSF WAS FOUNDED ON THE CONCEPT of service through finance for social benefit. As we look back at 2004 and forge ahead into 2005, we find ourselves, our investors, donors, and RSF Facts at a Glance ...... 1 borrowers increasingly active and leading partners in the growth of social finance. We Projects Funded This have not only been visible via projects we fund and other activities, but also present at Quarter ...... 2 many important events that speak to a future in which the world works with money with President’s Letter 3 ...... a new consciousness. In this issue, we reflect back on 2004 in pictures, financial high- 2004 Year in Review ...... 4 – 8 lights, and select stories. Most notably, a letter from Mark Finser offers his insights into Stories of how RSF, through its donors, the year just past, and a sense of anticipation for the year ahead. But, we would be remiss investors, borrowers, and grant recipients, if we did not also keep you up to date on the positive impact we are having on the world have effected the lives of many through all of our programs. We hope you enjoy this issue of the RSF Quarterly and we Images and Linkages ...... 9 look forward to your continued interest. RSF 2004 Consolidated Financial Highlights ...... 10

New RSF Funds...... 11 Creating Social Benefit Through Projects

About RSF ...... 12 We Fund In this issue, we present a few stories of how RSF, through the support of donors, investors, and borrowers, has touched the lives of people around the world in 2004. We also hope that these stories—about how your money can effect positive change—can serve as an invita- tion to learn more about our work and vision for the future.

Stories begin on page 4

RSF FACTS AT A GLANCE As of December 31, 2004 Consolidated Fund Balances RSF Investors RSF Funds

Investment Funds $ 39,162,101 94 8 76 Borrower Funds $ 33,222,562 Donor Advised Funds $ 23,923,324 Organizational Funds $ 2,940,292 109 83 Field of Interest Funds $ 818,867 642 New Investors Year-to-Date 67 New Investments in Dollars $ 5,414,963 Individual Investors 642 Borrower Funds 76 Total Assets $79,846,774 Organizational Investors 94 Donor Advised Funds 83 Total Investor Funds 736 Field of Interest Funds 8 Organizational Funds 109 Note: RSF has created a number of controlled supporting foundations in order to carry out its charitable mission more effectively. All numbers in the RSF Quarterly will reflect consolidated numbers that include the activity of these other supporting foundations.

Projects Funded This Quarter

NEW LOANS APPROVED Coyuchi Rudolf Steiner Fellowship Foundation Creative Speech Spring Valley Rudolf Steiner Library Loans approved: $528,367 Defense of Place Sarvodaya USA Live Oak Waldorf School Democracy Now! School of Eurythmy-Threefold Educational Michael Fields Agricultural Institute Detroit Waldorf School Foundation Waldorf School of Atlanta Earth Island Institute Seminary of the Christian Community-Chicago Emerson College Shade Tree Multicultural Society GRANT RECIPIENTS Freunde der Erziehungskunst Rudolf Steiners e.V. Shining Mountain Waldorf School Fundacíon La Choza Small Planet Fund Grants made: $2,079,547 Green Century Institute Sophia Foundation Donations received: $8,586,518 Green Meadow Waldorf School South East Branch Anthroposophical Society Academy for the Love of Learning Greenpeace Fund Speech and Drama in Waldorf Schools American Farmland Trust Hartsbrook School in the West American-Russian Educational Exchange Hawthorne Valley School Steiner Books (Anthroposophic Press) Anthroposophical Society in America House of Peace Stop It Now Arcturus Rudolf Steiner Education Program Institute for Environmental Entrepreneurship Summerfield Waldorf School Aspen Grove Project Kimberton Waldorf School Sunbridge College Association for a Healing Education Media Democracy Project Suncoast Waldorf Association Association of Waldorf Schools of North America Melrose Elementary School Sustain Associazione per la Pedagogia Steineriana Michael Fields Agricultural Institute Teamster Rank and File Education & Legal Auroville International USA Mind & Life Institute Defense Foundation BALLE Napa Valley Native Arts Circle The Actors Ensemble Blue Mountain Clinic New Visions School The Christian Community-Taconic Berkshire Brantwood Camp On The Move Region Boulder Waldorf Foundation Operation Speak Out The eLib. California Prison Focus Organic Center for Education and Promotion The Nature Institute Camphill Foundation Oxfam America Tibetan Buddhist Resource Center Camphill Village Kimberton Hills PAAM-AnthroMedLibrary Project Tides Center Cedar Springs Waldorf School Pachamama Alliance Triform Enterprises Center for Anthroposophy Research and Peace Development Fund Triskeles Foundation Renewal Pine Hill Waldorf School University of Creation Spirituality Center for Economic Justice Prairie Hill Waldorf School Waldorf Initiative of Madison Center for the Art of Living in America Public Patent Foundation Waldorf School of Princeton Center for the Development of Social Finance Rudolf Steiner Centre Walking the Dog Theatre Community Homestead Rudolf Steiner College

Values For over 20 years, individuals like you have chosen RSF as their values-based investment vehicle. RSF turns your values Intention and intentions into action by making loans to socially-con- Action structive projects. Now you can earn interest with your retirement funds RSF COMMUNITY INVESTMENT FUND while fulfilling your social ideals. Establish a Self-Directed IRA today to support the RSF CIF program. “To know that my money can indeed be directed to causes which I feel passionate about is such a welcoming and empowering change for me. Investment funds that leave one in the dark and powerless in terms of direction and decision-making are Please contact Mark Herrera at 415.561.6160 or [email protected] for more information. Please visit our website at www.rsfoundation.org to find a thing of the past for me. Knowing that I can always stay in touch with the Rudolf out more about the projects we fund. Steiner Foundation and the wonderful projects it supports give me peace of mind, and a lot of joy.” This does not constitute an offer to sell or the solicitation of an offer to buy, and no investment may occur from a state in which an offer, solicitation or sale is not authorized. CELINE HAUGEN Investments are offered solely through the Disclosure Statement for the RSF Community INVESTOR Investment Fund Program.

President’s Letter

Dear Stakeholders,

In 2004 RSF touched more corners of the social benefit landscape than ever before. RSF made 377 grants totaling $9.6 million and funded 22 loans totaling $6.6 million.

RSF experienced significant growth in 2004. Our total assets commitment to this special occasion, along with other individuals grew to $79.8 million primarily due to increases in our Community and organizations, helped bring the celebration of this milestone Investment and Donor Advised Funds. All in all, an unparalleled to fruition. $23 million moved through our investment and philanthropic Some of you may know that 2004 afforded me the unique management programs in support of our charitable mission. Because opportunity to take a very empowering and rejuvenating sabbati- moving money for social change is integral to RSF, we led and cal over the summer. I want to thank our Board of Trustees and facilitated the formation of a collaborative—Collaboration for staff for supporting me during this time of nourishment and reflec- Transforming the Way the World Works with Money. Currently, tion. The sabbatical was empowering personally; I challenged representatives from 40 organizations participate and meet to myself physically, mentally and spiritually while traveling domes- discuss and research money and its role in society. tically and abroad. It also empowered me professionally knowing Several innovative projects were supported, developed, or that I could leave RSF in the hands of our capable staff. During started this year. An exciting example is the Charitable Asset this time, our staff worked tirelessly on a systems conversion and Management Program (CAMP), which allows donors, both indi- overall infrastructure growth, preparing for the next level of work viduals and organizations, to give to RSF and have their donated in 2005 and beyond. funds invested in a socially screened manner to benefit society and Looking forward in 2005, while there is much going on in the the environment. Another was a partnership forged with TransFair world to cause concern, we at RSF have a strong feeling of hope USA, the nation’s only fair trade certifying organization, which is and enthusiasm on the heels of a successful 2004. My role will helping to generate global awareness for the vital issue of organic begin to transition in 2005 as I hand off more day-to-day opera- and fair trade practices. tional responsibilities to other staff at RSF. The time has come In our artistic mission area, RSF launched Spirit–The Seventh to dedicate more of my time to building the foundation for the Fire, a breathtaking multi-media dramatic musical which describes future, forging ahead, and guiding RSF from that vantage point. the wonders and healing powers of Native American wisdom and The theme of sustainability is uppermost for us, for the world, lore to wide-eyed audiences across the country. and for helping the helpers. In the social finance sphere, we began working with the organ- As you read this year in review, we hope to bring to life the izing group planning to establish a sustainable bank in California impact of the work we do through the stories and voices of the modeled after a well-known sustainable bank in Europe and long- individuals, families, and communities we serve. In the end, RSF time colleague of RSF—the Triodos Bank. You will learn more is a place that fosters ways for individuals and organizations to about this project in a future report. express guided gestures of generosity and concern for our planet, Last year, we also collaborated with the ABC Home & Planet our children, and for those in need. Foundation in support of its MISSIONmarket. This program, which Thank you dear clients and friends, board members, and staff encourages ABC Carpet & Home shoppers to make contributions for contributing in so many ways toward RSF’s mission of trans- to a number of RSF mission-aligned projects, generated close to forming the way the world works with money. $100,000 in charitable giving. Another collaboration was with Sincerely, the Rudolf Steiner School in Manhattan. RSF had the privilege of helping to plan, organize, and fundraise for a celebration of the 75th Anniversary of Waldorf Education in North America. RSF’s Mark A. Finser President and CEO

2004 Year in Review

REATING SOCIAL C BENEFIT THROUGH THE PROJECTS WE FUND

RSF is an innovative social finance organization that offers ways for individuals and institutions to express their values through investing and charitable giving. Since 1984, donors, investors, and borrowers have enabled RSF to fulfill its mission of creating social benefit and strengthening relationships for a better future.The stories that follow capture how their support has effected positive change. For this, we thank them for their continued commitment to RSF’s mission.We hope that others who read these stories will be inspired to learn more about RSF’s work.

Network for Good DULLES,VIRGINIA Emerging non-profits need fuel for growth just like any other small business. In the case of Network for Good, a line of credit from RSF provides a timely source of capital for addressing both short-term cash flow and mid- to long-term growth prospects. The line of credit from RSF enables Network for Good to pay off Architecture for Humanity depends on donations collected using Network for Good’s some of the debt it accrued in the wake of the collapse of one of its online system to help tsunami victims rebuild. vendors, PipeVine, and the losses Network for Good absorbed as a result. More important, the funds enables Network for Good would have not been able to work on the ground so quickly. I was to continue to develop the software it provides to non-profits for on the phone with my team in Sri Lanka. [They] were doing an online fundraising and donor management. assessment in a small fishing village in the southeast coast. While For Ken Weber, President of Network for Good, the line of credit in discussion, I was able to log onto Network for Good’s reporting is a key component of Network for Good’s business strategy over the system (which shows up-to-the-minute donations) and give verbal next 12 to 18 months. “Our mis- commitment that we could expand sion is to drive more resources to “Thanks to RSF, we were able to make good on nearly $3 million in on the number of homes, schools, non-profits and the primary way donations to more than 2,300 non-profit organizations when our payment and medical clinics we could fund. we do that is by providing organ- processor, PipeVine, Inc., unexpectedly closed its doors in 2003.” I guess you could say Network for KEN WEBER Good was a real lifesaver.” izations with low-cost, easy-to- PRESIDENT, NETWORK FOR GOOD use tools for online fundraising,” Network for Good is a leading Weber said. “With the line of credit, we’ll be able to pay for the cre- provider of online products and services to non-profits to help ation of an enhanced set of tools to enable non-profits to do more them take advantage of the Internet as a tool for fundraising, vol- for themselves.” unteer recruitment, and engagement. Network for Good is also a Working closely with more than 4,000 non-profits, Network website where individuals can connect with causes they care for Good is no stranger to the direct, positive impacts of its work. about by donating to more than a million non-profit organizations In the first week after the tsunami hit south Asia, an organization and by choosing from among tens of thousands of volunteer called Architecture for Humanity was on the ground helping with opportunities nationwide. rebuilding efforts. For more information about Network for Good, please visit According to Cameron Sinclair, Founder and Executive Director their website at www.networkforgood.org. of Architecture for Humanity, “Without Network for Good we

TransFair USA Waldorf School of Atlanta OAKLAND, CALIFORNIA DECATUR, GEORGIA For coffee farmers in East Timor, RSF’s grant has meant a better For many of RSF’s donors and investors, supporting Waldorf edu- quality of life and improved health. cation remains an important priority. RSF supports TransFair USA because of our strong belief that The Waldorf School of Atlanta (WSA) is a suburban school Fair Trade products are essential to building a more equitable and that started as an early childhood educational playgroup in 1984. sustainable model of international trade that benefits producers, With hard work, perseverance, a strong vision, and support from consumers, industry, and the earth. RSF, WSA has become a flagship school in the South. Nearly 200 A donor-advised grant from RSF enabled TransFair USA to students attend from preschool through 8th grade. The growing certify 15 million pounds of Fair Trade coffee, channeling millions campus is a beacon for nurturing youth in a diverse and caring of dollars in additional income to farmers and cooperatives. environment. One such cooperative is Cooperativa Café Timor (CCT). Founded in 2000 during East Timor’s transition toward independ- ence from Indonesia, CCT’s 19,600 members work collectively to insure for one another a fair wage for sustainably grown coffee. As a result of generating additional revenue through Fair Trade markets, the cooperative has been able to create a healthcare program that serves its member community. CCT’s healthcare program has built nine stationary health clinics and 24 mobile clinics that see an average of 18,000 patients per month from the cooperative and surrounding communities. Fair Trade revenues ensure that services are free of charge to co-op members. The support of RSF's investors and the community around WSA enabled the school to Seen on an individual level, these benefits have enormous expand and open its doors to more students. impact. CCT member Alfonso Sarmento Maubisse explains, “I know the Fair Trade income that my colleagues and I generate… RSF has been collaborating with WSA for several years. In is used to buy medicine for the CCT’s primary healthcare clinics. 2002, the school’s administrators came to RSF with hopes of For that I am very grateful, as the clinic’s staff saved my wife’s life securing a loan for the purchase of a property that included five during the recent birth of my child.” acres of land and a residential home. RSF approved the loan, For more information about TransFair USA, please visit their enabling WSA to secure the keystone property for their long-term website at www.transfairusa.org. vision of a campus. Late in 2004, WSA requested another loan from RSF—this time to add space for two kindergarten classes. An adjacent piece of land, including another residential home, had gone up for sale. The school had to move quickly to secure the property before it reached the open market. Through an RSF pledge loan, 30 members of the WSA community helped secure the loan. WSA has since purchased the property and will soon begin renovations on the building. Ron Alston, WSA Board Treasurer and a parent of two students (soon to be three), expressed his appreciation for the unique products that RSF offers, “The pledge loan was a great alternative for the WSA. It enabled us to borrow the capital funds needed for our project without putting a significant burden on the school’s operations.”

Alfonso Sarmento Maubisse is a member of the Cooperativa Café Timor in East Timor and whose experience is an example of how creating Fair Trade markets improve the lives of coffee growers around the world. continued on next page

2004 Year in Review

As a parent, Ron has seen the best of what Waldorf schools of families, teachers, volunteers, and donors like RSF. At one create and states, “What I appreciate most about our Waldorf time, having their own school seemed like an impossible dream, experience is the way my children are learning. I am amazed and but he says, the school “received a lot of support.” challenged by their ability to think independently and raise ques- Asked what the support or RSF and other donors mean to the tions that are thoughtful and insightful.” community, Settani says, “When you receive donations for such a For more information about WSA, please visit their website at job, you get something more than a material help—you feel that www.waldorfatlanta.org. you are not alone, you feel that many people in this world have great care for the education of the future of humanity. This both Scuola Steineriana “Maria Garagnani” material and spiritual help gives you the strength to go on.” For more information, please visit www.rudolfsteiner.it. BOLOGNA, ITALY When a donor advised RSF to consider a donation to Scuola Steiner- iana “Maria Garagnani,” they knew that they were providing more Independent Press Association than money, they were also providing inspiration. SAN FRANCISCO, CALIFORNIA For the last 16 years, a growing group of supporters has worked RSF’s donors and investors strongly believe that a free and inde- to create the Waldorf school in Bologna. After opening its doors pendent press is a vital element to a small group of dedicated families 12 years ago, the school has to creating a more just and sus- steadily expanded, adding a grade each year and growing to its tainable democracy. current 220 students. In recent years, RSF’s donors After years of renting facilities, teachers and parents worked have supported the work of the together in 2000 to build a school of their own. In one year, the Independent Press Association main building was built. Today, in addition to its core educational (IPA) to develop a business plan, program, the school features a three-year training course for to strengthen the capacity and Waldorf teachers, and the construction of its second building is infrastructure of the Independent nearing completion. Press Development Fund, and to RSF has been a part of the school’s success. Donations through expand its loan offering. an RSF Donor Advised Fund have provided funding to build the As a membership organiza- school’s kindergarten, establish a garden, and improve the grounds. tion, IPA’s mission is to “amplify The increase in Middle East Report’s School administrators are optimistic that growth will continue the power of independent publi- readership was due to IPA’s funding of in the years ahead. Says Francesco Settani, Board President, “RSF cations so as to foster a more the publication’s direct mail project which has given us important help. At present we are less than half way just, open, and democratic soci- has been made possible, in part, through to completing the whole project of this school. One day we’ll ety.” Through its technical assis- the support of RSF. have a theatre, laboratories, gymnasium, and high school classes.” tance, lending, education, and Settani attributes the success of the school to the dedication advocacy work, IPA helps make small magazines more visible to the larger American public. A specific need for IPA’s loan fund emerged after the September 11 attacks focused world attention on the Middle East and U.S. policy there—a subject that had received little media coverage prior to the attacks. In the months following the terrorist attacks, the Middle East Research and Information Project (MERIP), publisher of the 48-page quarterly, Middle East Report, fielded hundreds of calls from journalists all around the world. Visits to MERIP’s website quintupled. The subsequent invasions of Afghanistan and Iraq made clear that the need for a publication like the Middle East Report was more important than ever.

Students at the school perform Eurythmy for their fellow classmates. Eurythmy is an MERIP knew this was the time for an aggressive subscription art form that uses the whole body to express speech and tone visually and an important acquisition campaign, but it had never done direct mail. Yet, the component of the Waldorf education curriculum. organization knew that expanding their base of readers would help shape the debate by expanding the number of informed citizens.

MERIP turned to the IPA’s loan fund in the fall of 2002. IPA The conference has set an example and has become an inspira- provided MERIP with a loan for direct mail to increase its reader- tion to a group that is oftentimes disempowered and marginalized. ship. After a few rounds of mailing and analysis, MERIP has seen “I truly appreciate the help you have given us in letting us spread success in its direct mail efforts, thereby increasing readership of a the word that we’re trying to save our language,” twenty-year-old truly insightful periodical. Natasha Tewaheftewa, member of Isleta Pueblo, tells Bioneers. For more information about Independent Press Association, “Thank you so much for this life changing experience.” please visit their website at www.indypress.org. Another participant, Angela Lente, from Isleta Pueblo, said, “The Bioneers Conference was, honestly, beyond words. As I have Bioneers/Collective Heritage Institute “Bioneers taught me that everything is connected and we can accom- SANTA FE, NEW MEXICO plish sustainability if we just listen to nature.”

Through the generosity of RSF’s donors and investors, RSF sup- JON NEAL, 16 ports the Youth Initiative Program of Bioneers, a non-profit EARTH CARE INTERNATIONAL organization founded in that promotes practical environ- 1990 been growing up, I have been thinking about what I need to do mental solutions and innovative social strategies for restoring for a career so I can make a living. However, to see this amount the Earth and communities. of people powered by their passion and their desire to make the The Youth Initiative Program began four years ago during a world a more positive place, made me reevaluate what ‘career forum led by Julia Butterfly Hill at the annual Bioneers Conference, goals’ I might have.” the largest gathering in the U.S. of preeminent thinkers, activists, A grant recipient and borrowing project of RSF, Bioneers’ other and scientists from around the world who share the organization’s activities include: funding environmental restoration projects, mission. The program supports and catalyzes youth leaders and creating a food and farming connectivity project, and producing educators engaged in environmental and social justice work; it year-round education programs which include an award-winning connects these youth organizers to a network of peers and accom- radio series that is broadcast on more than 160 stations in the U.S. plished mentors. and 500 stations worldwide. Among this year’s participants were members of the Isleta and For more information about Bioneers, please visit their website Cochiti Pueblos near Santa Fe, New Mexico. Throughout the year, at www.bioneers.org. students from Isleta Pueblo worked to invigorate their community’s current native language program. At Cochiti, youth studied the Friends of Tibetan Women’s Association effects of the Cochiti Dam on their community. As a component of Bioneers’ Youth Initiative Program, stu- SANTA FE, NEW MEXICO dents were given scholarships to attend an annual gathering in Fourteen year-old Krishanti believes her parents were killed by San Rafael, California, to connect with each other for the first Tamil Tiger insurgents in Sri Lanka. time. Their experience and observations deepened their under- Before arriving at the Sri Yasodara orphanage near the Sri standing of their role in the larger context of cultural and ecologi- Lankan capital Colombo, she stayed with a family in the guerilla- cal diversity and introduced them to new strategies and solutions occupied village of Ampara. Krishanti and her foster family would such as community gardens for community revitalization, eco- hide every night in the forest or the paddy fields since Tamil restoration, and food justice. Tigers conducted violent raids in the evenings. The civil war, which is currently under a fragile Norwegian-bro- kered cease-fire has taken the lives of over 60,000 since 1984. Krishanti saw the result of horrific atrocities done to the villagers when she returned and was terrified of being taken away by gueril- las. “I never saw them actually killing but I saw the bodies when I was returning home…If I had been in that home three days more surely I would have been taken...If I was taken I would have done what I was told. They remove the kindness from our hearts…I am lucky that I came here.”

Youth leaders gathering at the recent annual Bioneers Conference where they have The U.S.-based non-profit organization Friends of Tibetan a chance to present their ideas to large numbers of people, network with peers, and Women’s Association, a grant recipient of RSF, has developed a connect with mentors. continued on next page

2004 Year in Review

designed in an environmentally friendly way, making great use of natural light and materials. “This extension re-enlivens the whole of the original structure,” says medical director Paul Scharff, “and it completes the original master plan for the community.” As part of the “green architecture,” a geo-thermal heating system was installed to provide energy-efficient and low-cost heat and hot water, but a shortfall from a construction default left the Fellowship without funds to purchase the turbine for the system. A $250,000 fundraising drive is underway to purchase that turbine. Fellowship Community is situated on more than 100 acres of rolling fields and forest about 45 minutes north of New York City. Its mission includes meeting two social demands of our time. First, The Art Refuge Program of the Friends of Tibetan Women’s Association offers orphans it seeks to meet the “graying of mankind” by providing excellent like Krishanti with forms of art therapy so they can explore their experiences in a safe care to people as they age, including those less able to pay. It is environment. an impressive fact that the life care provided at the Fellowship is program called Art Refuge. Staff visit the orphanage every year done at one-third to one-half the cost of traditional facilities. and offer forms of art therapy to the young girls living there so Second, the Fellowship seeks to demonstrate that with aging, they can explore their experiences in a safe environment. youth and new life can unfold. Co-workers and their families live Krishanti and other girls are given the opportunity to tell their with the elderly members who come to the Community for care. story and explore their experiences through activities such as A large share of the revenues for the organization come from painting, play, dance, and movement. the many activities in which all community members participate. Kitty Leaken, Program Director, says, “Tragic experiences are The Fellowship runs several highly-successful enterprises in which difficult but sometimes it brought the young girls relief from hold- all members engage to provide revenues for the organization. ing on to dark memories that had not been resolved. Some were These include a successful weavery, pottery shop, woodworking too young to remember or had repressed what had happened to studio, metal working studio, medical practice, and biodynamic them. Others wanted to show their gratitude to the nuns for being farm. given a home. The youngest laughed and dabbled in bright colors.” The Art Refuge program also helps Sri Yasodara and the more than 50 girls living there by raising funds to improve conditions at the orphanage. Last December’s tsunami disaster has amplified the need for support. With over 10,000 children orphaned, the orphanage recently opened its doors to twice as many children. Financial support will be more crucial than ever before to ensure that Sri Yasodara and Art Refuge can continue their work in helping and caring for one of the most vulnerable groups of society. RSF’s continuing support will be critical. For more information about the organization and program, please visit www.fotwa.org. For many years RSF’s donors and investors have supported the Fellowship Community, a multi-generational community focused on long-term care for the elderly. Fellowship Community CHESTNUT RIDGE, NEW YORK Equally impressive is that the staff of the Fellowship have suc- With a loan from the RSF Community Investment Fund, the cessfully engaged with local, state, and federal officials to gain the Fellowship Community, a multi-generational community focused rights to work in this very special approach to elder care. Just on long-term care of the elderly, has constructed a stunning addi- recently, two special laws were passed by the Legislature of the tion to its central care facility Hilltop House. State of New York permitting alternate methods in long-term care. The expansion was sorely needed for dining, kitchen, laundry, For more information about the Fellowship Community, please utility, and living spaces. The 10,000 square-foot addition was visit their website at www.fellowshipcommunity.org

Images and Linkages: A Look Back at 2004

RSF is fortunate to have wonderful partners and clients to further RSF’s mission in the world. This photo collection will introduce you to some of their exciting work. We look forward to deepening our relationship with them and with others in the community in the years ahead.

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4 5 6 7 USED A CHANGE. O BY GIRLS FOR T JAN MANGAN. © PHO BY PERMISSION.

8 9 10 DOUGLAS MASON ©

1 Mark Finser chats with actress Daryl Hannah at the RSF-spon- 5 Girls for a Change, an organization that empowers middle 8 John Bloom (left) facilitates the Bioneers session, Social Profit: sored 14th Annual Environmental Media Awards. Daryl Hannah school and high school girls to make social change, becomes From Value to Values, by Lynne Twist, author and President of the received the highest honor at an event that recognizes projects its own 501(c)(3) after being a fiscal-sponsored project of RSF. Soul of Money Institute, and Fred Brown, a personal financial and individuals in the television and film industry who have Girls for a Change currently focuses on activities in the San consultant and author. increased environmental awareness in society. Francisco Bay Area but has plans to replicate its model 9 RSF staff Joe Glorfield, VP, and Danielle Cohen, Office Manager, nationally. 2 2004 marked the 75th Anniversary of Waldorf Education in with TransFair staff Martha Jimenez, VP of Policy and Develop- North America. Members of the Rudolf Steiner School of New 6 “With RSF’s help,” says Barbara Valocore, President of ment, and Heather Franzese, speak to attendees of the 14th York Class of ’71 gather at the Alumni Circle to celebrate. Lifebridge Foundation, “we are much closer to being able to Annual Environmental Media Awards about social finance and offer this building to groups working to change the world.” fair trade. 3 Mark Finser is interviewed for Ethical Marketplace, a new Lifebridge Foundation, a private foundation established to half-hour weekly television show airing on PBS stations 10 ABC Carpet & Home sets up a display at its Manhattan store support organizations and individuals that are dedicated to nationwide starting in spring 2005. Ethical Marketplace is tele- to encourage shoppers to make contributions to RSF to benefit creating bridges of understanding among all people, received vision’s first national show dedicated to reporting the news, a number of worthwhile non-profits, including RSF, during a loan from RSF to finish construction of its new facility. trends, and stories of the companies, governments, and peo- their visit. ple worldwide who are redefining success with socially and 7 (Left to right) Rupert Ayton, then RSF CFO, Jason Clay,VP of environmentally responsible practices, investments, and World Wildlife Fund, and Paul Hawken, influential thinker and lifestyles. author, present their ideas on how economic policies can be more aligned with ecological sustainability at the RSF-spon- 4 Hazel Henderson (middle), creator and co-producer of new sored Bioneers Conference. TV program Ethical Marketplace, shows the pilot at RSF. She is shown here with two delegates from the United Nations.

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RSF 2004 Consolidated Financial Highlights

2004 2003 2002 2001 2000 Unaudited Information*

Number of Client Accounts at Year-End Borrower Funds 76 85 70 51 51 Investor Funds 736 723 599 520 437 Pooled Income Funds 2 0 0 0 0 Unrestricted Client Funds 194 172 157 141 60 Restricted Client Funds 2 6 0 0 77 TOTAL 1,010 986 826 712 625

Balance Sheet at Year-End ($000) Borrower Funds $33,223 $32,737 $28,531 $21,739 $17,514 Investor Funds 39,162 36,689 36,071 22,223 18,110 Gifts and Grants Funds 27,681 25,152 22,937 17,423 16,316 Liquid Assets 19,084 16,462 14,975 15,242 13,221 Total Assets 79,847 65,162 62,159 42,126 36,805 Reserve Guarantee Assets 3,509 477 472 464 459 Undesignated Operating Net Assets 2,943 1,266 1,501 1,184 1,058

Client Gifts ($000) Gifts Received** $23,975 $ 6,358 $ 9,967 $ 3,762 $ 2,854 Grants Made 9,632 4,193 3,075 2,551 2,229

Operating Fund Data ($000) Fee Income $ 2,264 $ 1,944 $ 1,437 $ 1,270 $ 1,007 Gift and Contribution Income 1,065 476 374 232 117 Personnel Expenses 2,046 1,655 1,137 900 699 Other Expenses 1,015 978 791 639 636 Operating Income Over (Under) Expenses 268 1 7 126 9

* RSF’s audited 2004 financial report is available upon request. Please contact us if you would like to receive a copy. ** For the year ending December 31, 2004, Gifts Received of $23,975,000 includes Gift Income from Projects $8,198,000 of which expenses of $6,286,000 have been disbursed and $1,912,000 is on hand and is designated.

Gifts Received ($000) Borrower and Investment Funds ($000)

$25,000 $50,000

$20,000 $40,000

$15,000 $30,000

$10,000 $20,000

$5,000 $10,000

$0 $0 1999 2000 2001 2002 2003 2004 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Gifts received Investment Fund Grants made Borrower Fund

New RSF Funds

RSF is the fiscal sponsor for many exciting new initiatives, projects, and foreign charitable organizations. RSF manages two basic types of fiscal sponsorship funds. Pre-approved Grant Funds allow organizations or initiatives to raise and receive funding under RSF’s non-profit umbrella for their public benefit activities. A Pre-approved Grant Fund can be established for an individual, an unincorporated association, public benefit projects of a for-profit company or a foreign charitable equivalent. Designated Funds are established for non-profit organizations and are often used to support the non-profit organizations’ operating, program, or capital needs. For more details, visit www.rsfoundation.org.

ASA Prison Outreach (Ann Arbor, MI) Hustling Legit (New York, NY) The Anthroposophic Prison Outreach (APO) program is a spon- The mission of Hustling Legit is to provide business education to sored project of the Anthroposophical Society in America. APO incarcerated individuals, and to encourage those who qualify to provides tools for inmates to change and develop themselves and start a small business in their community after release. The bring purpose to their lives. objective is to make ex-offenders independent stakeholders in their education, funding, and support services. Career411 (New York, NY) Career411 provides under-served high school students an under- Small Planet Fund (Brooklyn, NY) standing of the importance of and the tools for career explo- The Small Planet Fund supports movements in the U.S. and ration and planning. The vision of the program is for every young around the world that demonstrate it is possible to re-embed eco- adult to attempt to achieve his or her career ambitions. nomic life in community, ensure that we all eat healthfully, heal our relationship to the earth, and build democracy as a culture of Center for the Development of Social Finance (CDSF) engagement. Specifically, the Small Planet Fund assists grassroots (San Mateo, CA) non-governmental organizations that focus on environmental The Center for the Development of Social Finance (CDSF) aims conservation, community development, and capacity building; to promote the development of vital financial market mecha- social movements that secure land for migrant workers; financial nisms that support for-profit and non-profit business entities entities that focus on lending to the poor; research and education whose missions address unmet social needs. CDSF will design and foundations that conserve biodiversity and promote organic farm- deploy the infrastructure necessary to support the intermediaries ing; non-profit organizations that promote school gardens and that finance sustainable social enterprises, develop education environmental education; projects that provide training and jobs programs, and disseminate information to enhance a wide under- to former prisoners and help them reintegrate into society; and standing of social finance for investors and enterprise leaders. organizations that certify fair-trade coffee. For more information, Coyuchi (Point Reyes Station, CA) please visit their website at www.smallplanetfund.org. The purpose of the Coyuchi Fund is to help support the produc- tion of an educational video featuring organic cotton grown by rural farmers in the state of Madhya Pradesh, India. The goal is to create a video that will educate the public in the sustainable, beneficial, and healthful process of biodynamic, organic cotton cultivation in central India. For more information, please visit their website at www.coyuchiorganic.com.

Housing Finance Research (Basalt, CO) The purpose of the Housing Finance Research project is to create a guidebook and model program for the Waldorf School on the Roaring Fork (WSRF). This project is intended to be used by WSRF to help create a comprehensive housing program for the community. Once designed, the program will help facilitate the home purchasing process through second mortgages, thereby fos- tering a more personal engagement/investment in the community in addition to creating a more stable work force. The guidebook and model will be available for other schools, institutions, groups, To make a contribution to one of these projects or for more information about fiscal spon- and the general public facing similar housing challenges. sorship, please contact Kerri Kleven at 415.561.6161 or [email protected].

11 About RSF

RSF creates social benefit through innovative money, values and intentions. CIF investors also SPIRIT–THE SEVENTH FIRE OPENS approaches to working with money that reflect earn a monetary return which varies quarterly. The the highest aspirations of the human spirit. Since CIF Program made $6.6 million in loans in 2004. Spirit–The Seventh Fire, an arts and education 1984, RSF has operated as a values-based service The purpose of RSF’s Philanthropic project of RSF, opens in Philadelphia on May 20, organization, supporting a broad spectrum of proj- Management is to link gift money with initiatives 2005. This Native American dance and musical ects including children and education, arts and for the renewal of social life and the earth.Through multi-media event will also perform in the culture, the environment, sustainable agriculture, Donor Advised Funds and Fiscal Sponsorships, RSF following cities this spring and fall: Boston, MA; disadvantaged communities, health and healing, made $9.6 million in grants to organizations and New York, NY; and Washington, DC. Net pro- and spiritual and religious renewal.We do this projects around the world in 2004. RSF also over- ceeds from the event will be used by RSF to through the RSF Community Investment Fund sees over 100 projects worldwide. support a fund for the benefit of indigenous Program, Philanthropic Management, Advisory Through Advisory Services & Educational people around the world. For more information, Services, and Educational Programs. Programs, RSF furthers its relationships with the please visit www.spirit7thfire.com or contact Investors in the RSF Community people involved in the projects we support, assist- Bob Dandrew, Director of RSF East Coast Investment Fund Program enjoy the social ing them to achieve goals and solve problems. Office, at 212.213.0924 or bob.dandrew@ return of having their money support socially con- Rather than directing the projects, we serve our rsfoundation.org. structive organizations.This is achieved through clients’ intentions as they develop. The educational RSF’s lending activities, whereby CIF investment programs support all our services in helping to monies are loaned to a variety of mission-driven deepen the public’s understanding of meaningful RSF QUARTERLY IS PRINTED ON NEW LEAF RECYCLED PAPER. WWW.NEWLEAFPAPER.COM projects, creating direct linkages between investors’ action through the movement of money.

Create the world you want to see

Connect the spirit of your generosity It helps you donate to causes that are with socially constructive organiza- in alignment with your philanthropic tions and projects you care about ideals and RSF’s mission while also most. An RSF Donor Advised Fund multiplying the impact of your dona- translates your best intentions into tion to benefit hundreds of related positive action. causes. DESIGNED BY MISSION MINDED; WWW.MISSION-MINDED.COM Call 415.561.3900 or visit www.rsfoundation.org for more information. RSF QUARTERLY

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