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2012 Annual Report Abell-Hanger Foundation A- the Philanthropyh of George & Gladys Abell

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2012 Annual Report Abell-Hanger Foundation A- the Philanthropyh of George & Gladys Abell Odessa College (2001) • Odessa High School (2001) • Permian High School (2003) • Greenwood High School (2006) (2006) School High Greenwood • (2003) School High Permian • (2001) School High Odessa • (2001) College Odessa Celebrating 15 Years Midland College (1997) • Midland High School (2000) • Lee High School (2000) • UT -Permian Basin (2001) 2012 Annual Report Abell-Hanger Foundation A- The PhilanthropyH of George & Gladys Abell MISSION STATEMENT To continue the philanthropy of George and Gladys Abell, with emphasis on improving lives of people in the Permian Basin area. VISION STATEMENT Abell-Hanger will be accessible and forthright in their dealings with all grant seekers, responsive to emerging needs, creative and a leader in the philanthropic community. Both Adopted June 22, 2007 1 n n n n n n n n n n ABELL-HANGER FOUNDATION Founders George Thomas Abell & Gladys Hanger Abell Trustees John D. Bergman Elaine Magruder Tevis Herd Jack F. Harper Clarence Scharbauer, III David L. Smith Wes Perry James C. Trott Charles M. Younger, M.D. Trustee Emeriti Jno. P. Butler, Deceased Robert M. Leibrock, Deceased Jerome M. Fullinwider James I. Trott, Deceased John F. Younger, Deceased Lester Van Pelt, Jr., Deceased Arlen L. Edgar Robert C. Leibrock Officers Tevis Herd, President Charles M. Younger, M.D., Immediate Past President David L. Smith, Executive Vice President Herbert L. Cartwright, Vice President, Secretary-Treasurer Staff David L. Smith, Executive Director Herbert L. Cartwright, Comptroller Suzanne C. Thomas, Grants Officer Mark Palmer, Special Projects Manager Bobbie R. Chappell, Secretary Certified Public Accountants Sproles Woodard & Company All Inquiries: Abell-Hanger Foundation Attention: David L. Smith, Executive Director Post Office Box 430 Midland, Texas 79702 www.abell-hanger.org 2 n n n n n n n n n n GEORGE THOMAS ABELL George Thomas Abell was born at Wakeeney, membership in the Texas Congress of the Parent- Kansas. While attending Colorado A&M (now Teacher Association. He served as the Chairman of Colorado State University), he was a member of the first capital funds campaign for Midland Gamma Omega, an honorary fraternity, and Sigma Memorial Hospital and was a member of the Alpha Epsilon, a social fraternity. He graduated hospital’s Board of Trustees and Board of with degrees in civil and irrigation engineering and Governors. A member of the Downtown Midland mechanical engineering. In 1927 he moved to Rotary Club, he was recognized on numerous Midland, Texas, where he trained himself as a occasions for his contributions to the civic, cultural geologist and entered the petroleum business as an and educational betterment and growth of Midland. independent oil operator. In 1939, he married George Abell devoted much time to the Boy Scouts Gladys Hanger of Ft. Worth, the daughter of a of America, serving in various capacities in the pioneer Tarrant County family. Buffalo Trail Council. He led the capital fund During his professional career, he was active in campaign which secured the 6,000 acre camp in the the Independent Petroleum Association of Davis mountains. For his service to the Boy Scouts, America, Texas Independent Producers and he was awarded the highest recognition of the Boy Royalty Owners Association, Mid-Continent Oil Scouts, the Silver Beaver Award. and Gas Association, and the Permian Basin While serving as a director of the Midland Petroleum Association. He was a charter member Chamber of Commerce, Mr. Abell originated the of the Permian Basin Petroleum Pioneers idea for the Permian Basin Petroleum Museum, Association. Library and Hall of Fame. He spent much of his In addition to his professional endeavors, Mr. time and effort collecting antique oil field Abell was also active in many civic, community, equipment now displayed on the Museum’s grounds. cultural, social, educational and historical Many of the oil paintings of historical events which activities. He was a member of the Board of are on display in the Museum were researched by Education of the Midland Independent School George and commissioned by the Abell-Hanger District. He served as President of the Board during Foundation. He was the first president of the the construction of the present Midland High Museum’s board of trustees and a member of the School auditorium. As a result of these Hall of Fame. accomplishments, he was awarded a life 3 n n n n n n n n n n GLADYS HANGER ABELL Gladys Hanger Abell was born and raised in Fort An avid American patriot, Mrs. Abell was a Worth, Texas, the daughter of a pioneer Tarrant member of the Texas Chapter of the National County Family. She graduated from Paschal High Society of Colonial Dames of America, and the School and attended Texas Christian University Daughters of the American Revolution. She was a and the University of Texas at Austin. member of the First Presbyterian Church of Midland. Throughout her lifetime, Mrs. Abell was an active champion of civic and cultural causes, contributing The Abell-Hanger Foundation was created by Mr. her time, talents, energy, and financial resources as and Mrs. Abell to carry on the philanthropic one of West Texas’ most philanthropic citizens. endeavors which they pursued during their She served on the board of governors of Midland lifetimes. Speaking of business success, George Memorial Hospital, board of trustees of Midland Abell once said, Presbyterian Homes, and the President’s Club of “Sure, men like to be successful, not just for the the Museum of the Southwest. She took great money, but because of what one can do for his pride in her service on the board of trustees of the community, his country, and for mankind. Permian Basin Petroleum Museum, Library, and Business success provides the opportunity to do Hall of Fame. some of the things most of us dream about doing Her interests also included the Midland Odessa for our community and its various institutions, Symphony and Chorale, Midland Garden Club, organizations, and agencies.” Women’s Auxiliary of Midland Memorial Hospital, To their memory, this annual statement reports the Delta Delta Delta Midland Alumnae Chapter, and Foundation’s endeavors for the current fiscal year. the Midland Women’s Club of which she was a life member. 4 n n n n n n n n n n SUMMARY FINANCIAL INFORMATION JUNE 30, 2012 Net Assets Market Value Carrying Value INVESTMENTS Cash and cash equivalents $ 1,130,021 $ 1,130,021 Marketable Securities Abell-Hanger foundation has a long-term asset allocation Bond fund 26,161,575 24,560,300 target for its investments of 75 percent equity and 25 Stock fund 81,428,060 73,216,981 percent fixed income. At fiscal year-end the Foundation’s assets were invested as follows: Development markets fund 14,362,778 15,138,654 Emerging markets fund 5,246,137 4,696,223 Inflation protected bond fund 6,515,670 5,615,610 Real Estate 3,841,380 2,773,075 Minerals (producing and nonproducing) 8,365,770 1,760,785 Paintings 19,340 19,340 Other assets ____________3,283 ____________3,283 Domestic Equity 57% ____________$ 147,074,014 ____________$ 128,914,272 Corpus July 1, 2011 $ 131,333,791 ADD: Interest and dividends $ 3,417,155 Royalties 731,993 Capital Gain 2,186,961 International Equity 13% Other ____________85,540 $ 6,421,649 DEDUCT: Grants $ 7,132,749 ** Administrative expenses 1,617,839 Fixed Income 22% Production and ad valorem taxes _____________90,580 ___________$ 8,841,168 June 30, 2012 $ 128,914,272 Real Estate Mineral Interests 8% Adjustment to fair market value ____________18,159,742 June 30, 2012 ____________$ 147,074,014 RETURNS **Minimum distributable amount pursuant to the Internal Revenue Code is $7,236,761. Average Annual Compounds Foundation Administrative Expenses: 2007 2008 2009 2010 2011 % of Assets 0.82% 1.11% 0.99% 0.90% 1.16% % of Expenditures: 12.63% 20.6% 17.50% 17.80% 19.32% 13.38% Excise Taxes Paid: 2007 2008 2009 2010 2011 2.79% Amount $71,282 $83,056 $71,354 $45,306 $62,978 1.85% Rate 1% 2% 2% 1% 1% Cumulative Since 1992: $2,794,551 1 YR 3 YR 5 YR 5 n n n n n n n n n n AREAS OF GRANTS AND GIVING Year Ended June 30, 2012 By Program Area (YE 6-30-12) Arts, Cultural, By Support Area (YE 6-30-12) Religion Humanities 1.65% 2.91% Public/Society Benefit Scholarships 7.11% 14.73% Education 21.41% Capital Support Human Specific Programs 43.00% Services 15.70% 23.65% General Operating 26.57% Health 43.28% AREAS OF GIVING For the year ended Cumulative since GRANTMAKING AT A GLANCE ________________June 30, 2012 ________________ June 30, 1954 Fiscal Year Ending: 2009 2010 2011 2012 Arts, Cultural, Humanities 207,250 23,205,209 Total Grants Paid $5,023,264 $6,047,319 $6,952,858 $7,132,749 Education 1,526,768 55,621,977 Total Grant Payments 146 102 129 128 Health 3,087,379 36,336,922 Median Grant $16,250 $20,000 $16,250 $24,000 Human Services 1,686,950 48,567,204 Average Grant $34,406 $59,287 $56,272 $55,725 Public/Society Benefit 506,902 16,223,009 Largest Grant $572,681 $2,500,000 $2,500,000 $2,000,000 Religion 117,500 2,848,056 Total Giving $7,132,749 $182,802,377 Smallest Grant $75 $100 $1,000 $600 6 n n n n n n n n n n EXECUTIVE DIRECTOR’S REPORT TRANSITIONS uch of life is spent dealing with transitions, some expected and others support for the first three years of the new facility. unexpected. This is true for individuals, corporations and communities alike.
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