2015 Annual Report
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2015 ANNUAL REPORT TABLE OF CONTENTS Statement of Purpose/Mission Statement 1 Message from Leadership 2–3 Financial Reports Treasurer’s Report 6–10 Audited Financial Statements 12–20 Endowment Funds 22–31 Donor Recognition Cumulative Support to Endowment 32–35 Fiscal 2015 Contributors to Endowment 36–38 Lifetime Giving 39 2015 Memorial Gifts 40 2015 Honorary Gifts 40 The Eleanor B. Daugherty Society 42–43 Directors, Officers, and Staff 44 Former Directors 45 i’ll add photo Cover photo: Ryan Kiblin Memorial Stormwater Park STATEMENT OF PURPOSE Article II, Corporate Charter May 14, 1937 Chautauqua Foundation, Inc., III To hold such property Inc., receives property, by gift, V In case the Chautauqua was formed in May 1937 for and to invest and reinvest devise or bequest, subject Institution ceases to exist or the following stated purposes: the same and receive the to conditions or for specific to function in accordance with income thereof and to pay purposes, which conditions its corporate purposes, to I To assist the Chautauqua said income, less proper and purposes the Chautauqua pay over its income and hold Institution, Chautauqua, New expenses, at least annually to Institution fails, refuses or or dispose of its property for York, in carrying out and the Chautauqua Institution, has not the corporate power the benefit of some similar extending its educational, Chautauqua, New York, for the to observe or carry out, such religious or educational religious and other purposes. furtherance of its corporate property shall be disposed institution, as may be purposes; except that, if this of as directed by any court directed by any court having II To solicit, receive, and to corporation acquires property having jurisdiction. jurisdiction. acquire by gift, purchase, for particular purposes or devise, bequest, or in other subject to specific conditions, IV Upon such terms as it VI To do all lawful things lawful ways, real and personal neither said property nor approves, to dispose of any proper or needful to property. the income therefrom shall of its property which it deems accomplish the purposes be paid or transferred to the unwise to hold. herein before expressed. Chautauqua Institution, unless said Institution fulfills such purposes and conditions. If Chautauqua Foundation, MISSION STATEMENT Adopted by the Chautauqua Foundation Board of Directors August 13, 1992. Chautauqua Foundation, Inc., Disburse funds to the In the discharge of its is the principal organization Chautauqua Institution responsibilities, the responsible for the in compliance with the Chautauqua Foundation will philanthropic funding of the Chautauqua Foundation be guided by the Chautauqua Chautauqua Institution. In this Articles of Incorporation and Challenge as adopted by role it will: the requirements imposed by the Board of Trustees. The donors. Foundation will be dedicated Develop and maintain to quality and integrity in all programs, products and Develop and maintain a of its internal and external vehicles appropriate to the competent and active Board of relationships. The Foundation philanthropic needs of the Directors and other volunteers will anticipate and accept Institution as determined by as appropriate. change while maintaining the Board of Trustees and the an understanding and Administration. Develop, maintain and direct a appreciation of the history of professional staff the Chautauqua Institution in Assure fiduciary care in the appropriate to carry out general and the Foundation in investment, custody and the above responsibilities. particular. administration of funds raised. 1 MESSAGE FROM LEADERSHIP Cathy Bonner and Steve Percy Dear Friends, change its investment strategies. The Committee’s decision has been rewarded. Third, we have been conservative in our In August of 2008, when I assumed the Chairmanship of the spending by keeping our total rate of spending at or below Board of Directors of the Chautauqua Foundation, the Dow 5% in this time period. Finally, we have received more than $26 Jones stood at 11,430. The Foundation and Lowell Strohl million in gifts to the endowment during this period. had just reported to its membership that at the close of the prior fiscal year the net assets of the Foundation had reached For this last result, and for all those who have given to the $61,381,000, an all-time high. And then financial armageddon Chautauqua Fund and to the many capital projects that occurred. I need not recount the events and financial pain we the Institution has undertaken since I became Chair of the all suffered in the next twelve months. Foundation, I thank you. Your generosity has been remarkable in difficult times and in good ones. Your investment has brought One year later it was my responsibility, along with Geof Chautauqua Institution and the Foundation to new heights. Follansbee, to report to you on the state of the endowment. The fiscal year that had ended four and a half months earlier had Serving on this board, leading this board, and working on seen the fair market value of our invested assets (Chautauqua’s behalf of the Institution has been a privilege and a joy. I endowment) decline by nearly $20 million and our net assets at thank all my colleagues who served with me over these past the end of the year stood at just in excess of $42 million. The eight years for your commitment to the Foundation and your Dow Jones had seen three weeks of recovery and stood at 7,608. incredible investment of time and resources. My thanks also to Geof and his team at the Foundation. They are serving this Later this month, I will report to the membership of the Foundation organization at the highest level. for the final time. My successor as a director will be elected by the membership and later that same day the chair-elect, Cathy Bonner, Finally, I leave with excitement about Chautauqua’s future. I will assume leadership as the new Chair of the Board of Directors. look forward to remaining involved in my capacity as co-chair In the intervening years between my first report and this one, I take of the Promise Campaign along with my friend George Snyder. great pleasure in the realization that the Foundation’s asset base We have work left to do but we do so with confidence and has not only recovered but grown substantially. excitement about what the success of the campaign will bring. And I am eager to witness all Cathy Bonner and the Foundation As of March 31, 2015, the net assets of the Foundation stood Board achieves in these next few years. I wish you well. at $88,382,000. We have more than doubled our assets in this six-year period because of four critical elements. First, of Sincerely, course, the market has been kind to us over this period. Our investment returns have been strong. Secondly, the Investment Committee of your board has remained patient, committed to a course it has believed sound, and most importantly, did not panic during or just following the financial meltdown and Steven W. Percy, Chair 2 CHAUTAUQUA FOUNDATION Dear Friends, During Steve’s tenure as Chair, he and I have written a joint message to you for this annual report. I was quite aware that Steve would not allow me to sing his praises in such a letter. I have solved that challenge by returning to the format we used many years ago with the Chair and the CEO writing separate letters. Steve has led our organization with patience, high standards, total integrity and kindness. That is who he is. There is no flamboyance, no desire for the limelight and no interest in making news. He is interested in results — as he is with his beloved Michigan Wolverines. I speak for the entire staff of the Foundation in saying we have been extraordinarily well served by his leadership and have been proud to serve with him. Polly Percy has attended events too many count with Steve. More often she has found herself without him at home while he tended to his responsibilities as Chair of the Foundation Board (which include attending all meetings of the trustees of the Institution). Together they have provided philanthropic leadership to the Promise Campaign and Polly gave her blessing to Steve becoming one of the campaign’s co-chairs. To Polly, we extend our gratitude as well. Steve is one in a long line of highly respected leaders of this Foundation who have importantly balanced the sometime competing interests of long-term perspective with short-term challenges. The Foundation was established in 1937 to convey a message of permanence about the Institution and to secure and manage the resources that facilitate and enrich that permanence. The tumultuous economic times in which Steve’s chairmanship occurred required firmness, sensitivity and intellect. He brought all three to the task. Steve, we return your Saturdays to you to root on the Wolverines. Go Blue! Go Chautauqua! Thank you, Steve and Polly. Sincerely, Geof Follansbee, Chief Executive Officer 3 Keeping Chautauq Unspecified Endowment Goal: $15.65 million The Lake, the Grounds, and Public Spaces Committed: $16.3 million Goal: $6.25 million Committed: $5.9 million Chautauqua Fund Goal: $22 million over the life of the campaign Bellinger Hall Committed: $15.4 million Goal: $5.5 million Committed: $5,000 0 10M 20M 30M 40M Committed amounts as of March 31, 2015 4 CHAUTAUQUA FOUNDATION uqua's Promise Program Enhancements and Innovation Hagen-Wensley Goal: $8 million House Committed: $10 million Endowed Scholarships Completed: Goal: $2 million Leadership Endowment $2.8 million Committed: $1.1 million Goal: $2.5 million Committed: $1.5 million Chautauqua’s Amphitheater Goal: $33.5 million including endowment for maintenance Committed: $25.8 million 50M 60M 70M 80M 90M 98.2M 5 TREASURER’S REPORT Total Philanthropic Activity Total philanthropy includes new cash gifts, new pledges support the full range of programming Chautauqua offers.