2005 Grants and Contracts Summary ...... 22 Contents Giving back through the Hawai‘i Community Foundation ...... 24 Advancing the Nonprofit Sector . . . . . 25 A Message to Our Friends and Partners . 2 Services to Other Foundations ...... 27 Milestones ...... 2 Legacy Society ...... 28 2006 Board of Governors ...... 6 2005 Donors ...... 29 Neighbor Island Leadership Councils . . . 8 2005 Charitable Funds ...... 31 2005 Volunteer Advisory Committees Because It’s Our Home and Boards ...... 36 KANU HAWAI‘I Statement of Assets, Liabilities Building a sustainable future ...... 11 and Net Assets ...... 39 LIVE ALOHA Revenues and Expenses A rally call to strengthen the Hawai‘i and Changes in Net Assets ...... 40 we love and value ...... 13 Financial Statements and Notes ...... 41 ROBERT WATTS, SR. Once home, always home ...... 15 Staff List ...... 48 - LANA‘I WOMEN’S CENTER Stewards of the Community ...... 49 Creating community through empowering women ...... 17 JON AND ELEYNE FIA Teaching by giving ...... 19 BecauseIt’s WAHIOLANONA‘OPIO Healing our children at home ...... 21 OurHome OurM ission

Hawai‘i Community Foundation helps people make a difference by inspiring the spirit of giving and by investing in people and solutions to benefit every island community. A Message to Our y e a r s Friends and Partners 90and counting T —

he year 1916 marked the beginning of The Hawaiian Foundation, the predecessor to what is now known as the Hawai‘i Community Foundation one of the oldest community foundations in the country. In looking back on the past 90 years, it is both amazing and

inspiring to see how far we’ve come.

President & CEO Chairman In 1923, the Foundation received its first gift from Rose Makee Tenney to be used for education, scientific research and care of the sick and elderly. Today, in addition to Ms. Tenney’s gift, we are privileged to be the steward of 450 funds, each with its own purpose and unique story behind it.

In 1931, the first scholarship of $1,510 was awarded to Ms. Theodora A. Floyd to study teaching y e a r s atof Columbia Service University. Last yearto alone, the the Foundation Community distributed $3 million in scholarships Kelvin H. Taketa Robert R. Bean to 1,500 students attending colleges or universities in Hawai‘i or on the mainland, making it the second largestMarks private the beginning scholarship of The provider Hawaiian in the state.1928 1931 Foundation, the predecessor to what is Designated funds Foundation assets 1916 now known as the Hawai‘i Community received for the total $50,897.50. 90 Foundation, one of the oldest community first time. Irene The first scholarship Hawai‘i foundations in the country. Holloway donates of $1,510.65 awarded $10,000 for to Miss Theodora A. Community 1923 Lunalilo Home Floyd, a nurse, to HCF receives its first gift from Rose Makee Tenney for aged and attend Teachers’ Foundation to be used for unrestricted purposes including the indigent Native College at Columbia promotion of education, scientific research, care Hawaiians. University. of the sick, aged or helpless and improving living Milestones conditions regardless of race, color or creed. 2 HAWAI‘I COMMUNITY FOUNDATION Because it’s our home

In 1989, the Foundation began developing grantmaking programs that reflected donor interests and community opportunities. aloha Today, we administer nearly $30 million in grants and contracts for We all choose to live, work and play in Hawai‘i for different reasons. worthwhile programs and initiatives. We are also the principal funder of Maybe it’s because we’ve lived here all of our lives and want to remain leadership development and capacity building for nonprofit organizations close to our family. Or perhaps we visited and fell in love with the throughout Hawai‘i. In addition, the level of complexity of what we do islands and have never wanted to leave. It could be the unparalleled has grown significantly. As one example, we’ve assumed the role of — — natural beauty; the blending of many cultures or people filled with — convener for statewide initiatives aimed at combating problems such the spirit. as the use of crystal methamphetamine. Regardless of the reason, Hawai‘i is home for all of us. While we are As the Foundation celebrates its ninth decade of investing in the lives fortunate to live here, we also share a responsibility to preserve and of people and communities throughout the state, there’s one thing that develop those qualities of Hawai‘i that will make it the place where remains constant. Throughout our history, experience has shown that 1936 future generations1971 will also want to live.1987 The concerns that need Theno matter Lillian K.what Wilder form Fund it takes established,time, talent or financial resources addressingAttorneys are mounting file for homelessness,Reorganization traffic, environmental of the Foundation thegiving first that gift comesto help as needy a result people of caring in individuals, businesses and degradation,recognition the growing by the gap IRS between theto corporaterich and poor,form substancewith multiple Hawai‘iorganizations, with preference improves to the people quality of of life for all of us. Alice B. Soper leaves in compliance with the trustees and a Board of Governors. Hawaiian ancestry. $129,000 in propertyabuse, the1969 high Tax cost Reform of living Act andas publicThe school Hawaiian reform, Foundation among others. renamed 196to the Foundation6 a community trust and Hawai‘i Community Foundation. 1943 1944 to be used for the not a private foundation. Robert E. Black dies and bequeaths The Honolulu The Cyril Smith Royal School Fund “aged who are sickly, the largest discretionary Star-Bulletin starts provides milk to students from low infirm, or helpless 1977 Ruling by the IRS endowment in Hawai‘i’s history the Wallace Rider income families. When the federal and without adequate with more than $60 million to Farrington Memorial government starts subsidizing funds of their own.” confirms that the Foundation is a the Foundation. His desire is Scholarship to help school meals, the Board exercises for the income from the fund Farrington High its power to redirect fund income publicly supported organization. to support four areas of charity graduates attend the to a similar charitable purpose for – health, residential treatment, University of Hawai‘i. the same beneficiaries. culture and private education. 3 Because It’s Our Home • 2006 ANNUAL REPORT 2005 –Building Momentum

But just as the Hawai‘i Community Foundation has been working side by side for the past 90 years with the people, businesses and organizations focused on finding contemporary solutions to community 2005 can be characterized as a year in which we built upon the issues, we plan to be there alongside them for decades to come. initiation of projects, programs and strategies of previous years. With the successful launch on Hawai‘i Island in 2003 of the public-private Live Aloha The stories in this annual report highlight the individuals and partnership focused on combating the crystal methamphetamine (ICE) organizations that are working to make everything that we love about problem, we were able, with the help of U.S. Senator Daniel K. Inouye, Hawai‘i, better, including a group of optimistic, young leaders who are to expand that initiative to include Kaua‘i and Maui Counties. In a starting a social movement to build a sustainable future for the state; similar fashion, we were able to use our experience with the Tobacco a married couple of modest means who establishes a scholarship Trust Fund to design and launch a comprehensive media and quit-line fund for high school students to attend college; a group of prominent effort focused on tobacco cessation. community leaders who encourages residents to ; a man who continues to support the historic town in which he and his family We continued to refine several of our programs and strategies last year used to live; a substance abuse treatment center for youth on the including the addition of a new partner, the Case Foundation, to bolster Island1988 of Hawai‘i that keeps them close to home; and an island-wide1992 the level of thinking among nonprofit1995 leaders around social enterprise The Board of Governors elects HCF grows to $166 HCF assets grow to more than effortJames toF. Garyprovide as its needed first President healthcare services1991 for women. We hopemillion that at the endstrategies. of We also launched our new$216 Vocational million and Education awards Scholarship1,326 theyand appoints inspire youJane as Renfro much Smith as they haveFirst us. Hawaiian Bank 1992 from $12 millionProgram as a complement to our alreadyscholarships robust worthscholarship more thanprogram Chief Executive Officer. First Donor becomes a corporate in assets in 1988.focused on higher education. $1.4 million to Hawai‘i students. Advised Fund, the Sheridan C.F. Ing trustee. Fund, established on January 11. The Parker Ranch From 1993 - 1995, First public-private partnership 1HCF9 awards93 grants established with the Hawai‘i Foundation Trust 1989 established under averaging in excess Children’s Trust Fund with the Hawaiian Trust Company, Ltd. (Bank of Hawai‘i), the the Will and Trust of $9 million per mission of preventing child sole trustee of the Foundation for 72 years, is joined of Richard Smart year. Fund accounts neglect and child abuse. The by Bishop Trust Company as a corporate trustee. HCF begins and with the mission at HCF grow to 100. Department of Health serves developing grantmaking programs reflecting donor interests of maintaining and as the lead agency for the and community opportunities. Over $900,000 is committed improving a unique public sector and HCF provides to a three-year demonstration project in Early Education quality of life in oversight of the endowment. and Care. Kamuela, Hawai‘i. 4 HAWAI‘I COMMUNITY FOUNDATION Looking Ahead

2005 can also be described as the year when our commitment to build - theThe philanthropicHonolulu Advertiser, assets of the community,Kokua Calendar and not just“Making the Foundation, areally Difference” took hold. We wereHONOLULU able to help Magazine a number of families, foundations We remain solidly committed to the long-term direction of the and businesses with philanthropic strategies and investments while, Foundation as developed over the past several years. We are at the same time, the Foundation itself witnessed the establishment — a statewide, public foundation with a presence and reach into of a record number of funds. We also continued to serve as a resource every island community. We are focused on building the assets on behalf of the nonprofit sector through a business column in and effectiveness of the philanthropic and nonprofit sector and and the and — not just our own. We will continue to serve as a resource of the column in . sector, a convenor of interests and a publisher of useful information. We wish to acknowledge the ongoing support of the Foundation’s Chairman And most of all, we want to help people make a difference to solve Board of Governors, Corporate Trustees and staff members. President & Chief Executive Officer a community problem, to support someone in need, to find the incredible Their work represents the broad interests of Hawai‘i and we are satisfaction and joy in giving back. It is what motivates us to leave grateful for their dedication. We also send a heartfelt thank you our place better than when we found it because it’s our home. to1998 our retiring Governors Bill Mills, Donna Tanoue and Sylvia Yuen.HCF named as administrator of 2000 Kelvin H. Taketa named the Hawai‘i Tobacco Prevention HCF’s efforts to become a statewide, charitable AndPresident we want and Chiefto welcome ourHCF new commissions Governors “The Peter Hawai‘i Ho, Cathy Lukeand ControlSincerely, Trust Fund. Hawai‘i services and grantmaking institution begin with andExecutive Eric Yeaman.Officer. 1Giving9 Study,”9 the9 first of five studies legislature Robertcreates R.this Bean, special the opening of a full-service office in Waimea initiated to examine the issues trust fund fromKelvin a portion H. Taketa, of the on Hawai‘i Island. Strategic focus on affecting the nonprofit sector, multi-million dollar settlement developing grantmaking philanthropy and civic leadership. from a lawsuit brought against Focus of HCF’s donor services program shifts programs to support the tobacco industry. to emphasize providing charitable services to nonprofit agencies HCF partners with two California- individuals, helping them structure their gifts and serving as an based private foundations, Increased focus on strengthening the to maximize their giving and its enduring information resource The William and Flora Hewlett organizational capacity of nonprofits, social impact, regardless of whether or not on the nonprofit Foundation and The David Lucile and faith- and community-based the funds reside at the Foundation. industry, community Packard Foundation, on The National groups, as well as supporting the issues and trends. Resources Conservation Program, development of civic leaders. HCF administers $20 million in grants and a grantmaking program to help Central Pacific Bank becomes charitable assets grow to $284 million with secure the long-term health of 33 new funds. Hawai‘i’s natural resources. a corporate trustee. 5 Because It’s Our Home • 2006 ANNUAL REPORT Chairman Treasurer 2006 Board Robert R. Bean Maggie B. Cole Eugene Bal, III President & CEO Community Volunteer Executive Director of Governors Alert Holdings Group, Inc. Maui High Performance Computing Center

The Board of Governors establishes policy, sets Vice Chair organization-wide priorities Barry K. Taniguchi Laurie T. Ainslie Mervina Cash-Kaeo and program strategies, and President & CEO Community Volunteer President & CEO ensures that the financial KTA Super Stores Alu Like, Inc. stewardship and operations of the Foundation are conducted with integrity and accountability. Secretary Jennifer Sabas Claire L. Asam, Ph.D. Gary Caulfield Chief of Staff, Hawai‘i President & Executive Vice Chairman Operations Director First Hawaiian Bank The Office of the U.S. Queen Lili‘uokalani Senator Daniel K. Inouye Children’s Center

2001 HCF commissions “People and the Sea 2001,” 2002 HCF opens full-service offices in Wailuku, Maui a review of expert opinion of what it will take to HCF becomes the first community –serving Maui County–and Lı-hu‘e, Kaua‘i, enhance the conservation of marine resources foundation in the nation to make bringing HCF’s services statewide. in the main Hawaiian Islands. scholarship applications available online. Number of applications increase from “Hawai‘i Nonprofits 2001” surveys nonprofit Employees of the Hawai‘i Community Foundation 300 to 1,000 in the first year, and to organizations in Hawai‘i to identify how they use voluntarily establish their “Walk the Talk” charitable more than 6,000 in 2006. public and private funds, and the characteristics fund as a means for them to channel their personal and issues that are common to the nonprofit sector. passion for helping others and their community. Fund accounts at HCF grow to 300. September 11th Fund is established giving Hawai‘i HCF participates in a national study, “Daring to “Hawai‘i Giving Study 2002” conducted residents the opportunity to respond to the needs Lead 2001,” on nonprofit executive directors to look as a follow-up to the 1999 study and of the victims and their families of the terrorist at their characteristics, professional background to examine charitable giving patterns attacks at the World Trade Center and the Pentagon. and recruitment, compensation, job satisfaction among Hawai‘i residents and how it A total of 6,400 gifts were made totaling more than and retention, and kinds of executive training and may have changed since the first study. $900,000. support they receive.

6 HAWAI‘I COMMUNITY FOUNDATION Samuel A. Cooke Peter S. Ho Paul Kosasa Jeffrey N. Senior Vice President Vice Chairman of President & CEO Watanabe (Retired) Investment Services Group ABC Stores Managing Partner Morgan Stanley Bank of Hawai‘i Watanabe, Ing, Dean Witter Kawashima & Komeiji

Jean F. Cornuelle Lawrence M. Cathy Luke Eric K. Yeaman Community Volunteer Johnson President Financial Vice President, Past Chairman of the Loyalty Enterprises, Ltd. Treasurer & CFO Board of Directors & CEO Hawaiian Electric Bank of Hawai‘i Industries

Anthony R. Charlie King David Nakada The Foundation bid aloha in 2005 to Guerrero, Jr. President Executive Director Governors Bill Mills, Donna Tanoue Vice Chairman King Auto Center Boys & Girls Club and Sylvia Yuen. We value their First Hawaiian Bank of Hawai‘i contributions to the Foundation and to Hawai‘i.

2003 2004 2005 $3,974,000 allocated to HCF through the Nearly $1 million in grants and contracts Highest number of funds (52) established in one Department of Justice–Office of Community made to build the nonprofit sector, providing year with donor advised funds and scholarships Oriented Policing to carry out enforcement, technical assistance and supporting capacity leading the way. treatment and prevention/education building projects among nonprofits and activities to combat use of crystal community organizations. Steward of 440+ funds established by generous methamphetamine in Hawai‘i. individuals, families and businesses. Crystal Meth Initiative grant of $1 million Launch of public-private partnership, over two years committed to fund the HCF administers nearly $30 million in grants. the “Crystal Methamphetamine (ICE) first and only residential substance abuse $20 million in grants from HCF funds and $10 million Initiative,” working closely with the treatment program for youth on Hawai‘i from 18 private foundations for which HCF provides county governments, nonprofits agencies Island, run by Marimed. With this initial contracted administrative and grantmaking services. and community groups to develop a funding to start program, two years later comprehensive approach involving in 2006, Marimed is able to secure a $14+ enforcement, prevention and treatment million grant over six years from the state. around ICE use in Hawai‘i. 7 Because It’s Our Home • 2006 ANNUAL REPORT 2006 HAWAI‘I ISLAND KAUA‘I MAUI Chair Chair Chair Neighbor Island Leadership Councils

Leadership Councils help Barry K. Taniguchi, Charlie King, Eugene Bal, III, neighbor island staff to further Laurie T. Ainslie Nancy Budd John C. Baldwin the Foundation’s mission. Darl C. Gleed Roberta Wallace Cable Maggie Cole These community-minded Robert W. Hastings, II Nancy Goodale Patrick L. Ing volunteers open doors to form new partnerships Richard Henderson WarrenEmeritus Haruki Member B.Emeritus Martin Luna Member and provide advice on Lynn Lally Lynn P. McCrory Mino McLean issues relevant to their Margaret K. Masunaga Myles S. Shibata HowardEmeritus Nakamura Member respective islands. Dwayne Miyashiro Glen Takenouchi Lois E. Reiswig Thomas P. Whittemore Millie Wellington Leona Rocha Wilson Jan C. Rudinoff, Sam S. Kadotani,

The Hawai‘i Community Foundation William C.N. Wong, and First Hawaiian Bank announce formation of the Jack and Marie 1916- Lord perpetual charitable fund with assets in excess of $40 million.

HCF is one of the 40 largest 2006 community foundations among nearly 700 nationwide, with charitable community assets of $405 million. y e a r s of Service to the Community 8 HAWAI‘I90 COMMUNITY FOUNDATION BecauseIt’s Our ome VStatementision H Kanu Hawai‘i BUILDING A SUSTAINABLE FUTURE Live Aloha A RALLY CALL TO STRENGTHEN THE HAWAI‘I WE LOVE AND VALUE

… Robert Watts, Sr. ONCE HOME, ALWAYS HOME We want to live in a Hawai‘i La-na‘i Women’s Center where people care about CREATING COMMUNITY THROUGH EMPOWERING WOMEN each other, our natural Jon and Eleyne Fia resources and diverse island TEACHING BY GIVING cultures a place where Wahiolanona‘opio HEALING OUR CHILDREN AT HOME people’s ideas, initiative and generosity support thriving, responsible communities. Building a Sustainable Future First Row (from left to right): Amy Bender, Rona M. Suzuki, Joshua Stanbro. Back Row (from left to right): Kylee Omo, Alani Apio, James Koshiba, Brent Dillabaugh. Missing: Makena Coffman. Kanu Hawai‘i

Some Commitments that awai‘i is one of the most desirable places People can make any commitment they’re comfortable KANUKanu HAWAI‘I Participants FOUNDERS: Make: Hin which to live, but it’s also one of the most with—from buying more local products and turning expensive in the country, with well-paying careers off unused lights in the house to purchasing a fuel CONSERVE WATER AND ENERGY AT HOME hard to find. In addition, a divided system of public efficient car or making their company more socially and private schools struggles to educate all students responsible. Kanu measures and reports on the RECYCLE ALUMINUM, PLASTIC, well, and many of the natural and cultural treasures aggregate result of people’s commitments, creating GLASS AND NEWSPAPERS that make Hawai‘i unique are under threat. a sense of collective impact and movement. RIDE THE BUS MORE OFTEN These and other troubling trends caused a group The personal changes of the 125 individuals Kanu of Gen X and Yers to wonder, “What keeps us here? has engaged in, to date, collectively conserve CUT DOWN ON YOUR CONSUMPTION What does the future of Hawai‘i look like?” These enough drinking water for 7,000 people, divert OF ANIMAL PRODUCTS questions led to the creation of Kanu Hawai‘i, nearly 25 tons of waste from our landfills, mobilize PURCHASE FROM LOCALLY OWNED AND a social movement aimed at building a sustainable hundreds of volunteer hours for schools and future for the islands. nonprofits, and generate dozens of other impacts SOCIALLY RESPONSIBLE COMPANIES that promote sustainability each year. DONATE TO A NONPROFIT “When I was growing up in ‘Ewa Beach, it was a breadbasket for the island with an abundance of Today, the group is in the process of becoming a THAT TRAINS, PLACES, EMPLOYS limu (seaweed) and fish in the ocean,” said Alani 501(c)(3) organization, is fundraising to hire staff OR ADVOCATES FOR THE POOR Apio, one of Kanu’s founders. “At the time I thought and is exploring the uses of social marketing and USE A RE-USABLE CUP we were poor because we had to fish for food to merchandising to promote sustainability. It is also INSTEAD OF DISPOSABLES help us get by. I realize now what a gift that was working to make movement-building as viral and from our ocean waters. Thirty years from now, virtual as possible, using its Web site as a place where VOLUNTEER AT A SCHOOL OR I want my grandkids to have that same gift.” people can obtain information, get inspired and join NONPROFIT ORGANIZATION the movement by making commitments online. Kanu Hawai‘i’s founders, a committed group of DONATE SUPPLIES OR young people ranging in age from teens through Kanu, in Hawaiian, literally means “to plant.” It also EQUIPMENT TO A SCHOOL 30-somethings, are working to shape a Hawai‘i connotes a deep sense of duty to one’s family and where future generations will choose to live— ancestors, to the place in which one lives and to the TUTOR OR MENTOR A CHILD and live affordably; a community that continues members of one’s community. By linking visioning to VOTE AND ENCOURAGE OTHERS TO VOTE to balance economic, social, cultural and personal action, Kanu attempts to build a movement environmental interests; and a role model of for a future that holds greater promise for generations TESTIFY FOR A CAUSE YOU BELIEVE IN sustainability for the rest of the world. to come, and one that makes Hawai‘i a global model AT THE LEGISLATURE of island living. James Koshiba, one of the group’s founders, describes TRADE IN YOUR CAR FOR SOMETHING Kanu’s work as, “similar to other community visioning “That’s the most critical message of this effort.” says MORE FUEL EFFICIENT efforts in that it asks people to think together about Kylee Omo, another Kanu founder. “We want to create the future we want for the islands. Where Kanu a better Hawai‘i for those who live here. But, we’re For more information on how to do differs, though, it also asks people to make personal also trying to make the most of Hawai‘i’s ability to these things, why they’re important commitments to action that help create that future.” teach the world something. It’s this sense of local and what your impact is, visit and global kuleana (responsibility) that is at the www.kanuhawaii.org heart of what we do.” 11 Because It’s Our Home • 2006 ANNUAL REPORT A rally call to strengthen the Hawai‘i we love and value From the Front: Robbie Alm, Haunani Apoliona, Mike McCartney, Amy Agbayani, Linda Kramer, Paul Klink, Dick Pratt, Joan Husted, Constance Hassell, Chuck Freedman, Barry Shain. Live Aloha

t was the summer of 1993 when a handful of • Ask Hawai‘i’s people to undertake certain basic SOME OF LIVE ALOHA’S GROUP MEMBERS: I community leaders sat down to talk about actions in their daily lives. 12 Everyday Actions government reform. They wanted to see what • These actions would encourage sharing and caring, to Live Aloha: citizens could do to support a goal of high-quality and would build community. government. They agreed to start by convening • There would be a common set of actions so that RESPECT YOUR ELDERS AND CHILDREN a variety of people to just talk about Hawai‘i; where it was and where it was headed. everyone could gather strength and a sense of LEAVE PLACES BETTER community from seeing each other participate. THAN YOU FIND THEM After a couple of sessions, the results were clear. • The actions would be easy to do regardless of where HOLD THE DOOR—HOLD THE ELEVATOR “We felt the Hawai‘i we loved was at risk,” recalled people lived, what they did, or how much money Robbie Alm, one of those leaders. “We felt that or power they believed they possessed. PLANT SOMETHING our governance left much to be desired, we felt an • The group would provide a rallying point, a symbol DRIVE WITH COURTESY—LET OTHERS IN absence of leadership in all areas of life, and that and a call to action, to bring people together. individuals needed to take more responsibility for what ATTEND AN EVENT OF ANOTHER CULTURE needed to change.” Members of the group include: Live Aloha became that rally call. The program began RETURN YOUR SHOPPING CART Amy Agbayani, Robbie Alm, Haunani Apoliona, Chuck Freedman, Constance Hassell, Puanani Higgins, simply with the distribution of a bumper sticker and GET OUT AND ENJOY NATURE Joan Husted, Carole Kai, Art Kaneshiro, Paul Klink, a card setting forth twelve everyday actions that Linda Kramer, Irv Lauber, George Mason, Mike everyone can do to Live Aloha. Today, there are over PICK UP LITTER McCartney, Bob Nakata, Dick Pratt, Sharan Ro, 600,000 bumper sticker and cards in distribution SHARE WITH YOUR NEIGHBORS Barry Shain, Bruce Voss and the late Don Burns. throughout Hawai‘i and across the country, requested by hundreds of individuals and entities. CREATE SMILES They concluded that what Hawai‘i needed was to MAKE A LIST OF YOUR OWN have its people take much more responsibility in their Grassroots and low-key, the group explains that while own lives for what Hawai‘i was and what it could it does not presume to define aloha, they do see become. The group knew what they were up against: themselves as taking a few steps along the path of the crushing burdens of day-to-day modern living— aloha. They are guided by the values that they believe traffic, cost of living, drugs and violence, the break-up underlie the spirit of aloha—respect for others, for of families and so on. They also faced the sense of the land and all that surrounds us, caring for others helplessness that grows in those who believe that and bearing the responsibility for living this way they are powerless to change the way things are within ourselves. and that their individual acts are of no consequence. “We are, in so many ways, very lucky to live in The group strongly believed that these attitudes were Hawai‘i,” said Alm. “One of the greatest gifts of this a major part of the problem and, collectively, they land is the depth, beauty and wisdom of the culture decided to take the following path: of the Hawaiian people and the spirit of aloha.”

13 Because It’s Our Home • 2006 ANNUAL REPORT Once home, Always home Robert Watts, Sr. at home. Robert Watts, Sr.

teaching position at a business school in Mrs. Watts loved children, reading, word games A Honolulu brought Robert Watts, Sr. to Hawai‘i and poetry. She had an unfulfilled desire to publish Robert and his from King City, California. Following that, a career a book of poems and team up with an artist to author wife, Marjorie, with Amfac took him to Kaua‘i, where he met and a book for children. Her family hopes that the results in earlier days. married Marjorie Waterhouse and built strong ties of their gift will inspire the graduates of Ko-loa School to historic Ko-loa Town. to succeed in these areas. The Smith-Waterhouse family is strongly connected “The real desire is for this gift to help all of the to Ko-loa Town and traces its roots to missionary doctor students gain a greater appreciation of the benefits James W. Smith, the first western-trained physician and pleasures that reading brings to one’s life as it did to come to Kaua‘i. He arrived in 1842, settled in Ko-loa for my wife,” said Watts. “They don’t have to be the and was the only physician on the island for 40 years. best reader in class, but they should be acknowledged for their improvement.” In the interest of perpetuating the Waterhouse family’s connection to Ko-loa, Mr. Watts established Kendall Palmer Watts, the Watts’ youngest son, has the Ko-loa Scholarship Fund at the Hawai‘i Community since created his own fund that helps to improve the Foundation in 1993 for residents continuing their lives of many on Kaua‘i and throughout the state. education beyond high school. That connection Although he now lives on the East Coast—far away continues today. The 91-year-old Watts, who now lives from Ko-loa, knowing that the fund assists others helps on O‘ahu, still travels to Kaua‘i for special occasions him feel closer to home. The same goes for eldest son including the Ko-loa Plantation Days Parade in 2005 and West Coast resident, Robert Jr., who now chairs in which he served as co-grand marshall. the Reading Enhancement Fund’s advisory board. In addition, he and his two sons, Robert Jr. and In the beginning, the connection to Ko-loa was merely Kendall, established the The Marjorie Waterhouse through marriage. Now, Robert Watts, Sr., along with Watts Reading Enhancement Grant—Ko-loa School his sons, continue to support the place that they hold Fund. The fund was established in 1995 at the Hawai‘i so dear and that they once called home. “It’s one of Community Foundation to honor the memory of the reasons why I was put on this earth,” said Watts. Watts’ late wife, Marjorie, who was born and raised “To make a contribution. And there’s no place better in Ko-loa. The purpose of the endowment fund is to for that happen, than at home.” encourage and promote the love of reading to the students at Ko-loa School—Kaua‘i’s first public school.

15 Because It’s Our Home • 2006 ANNUAL REPORT Creating community through empowering women Heading the La-na‘i Women’s Center effort: Phyllis McOmber and Jackie Woolsey. La-na‘i Women’s Center

Malama I Na Makuahine o La-na‘i—taking care a full-day workshop to demonstrate the on-island and E of the women of La-na‘i—is a straightforward statewide partnership of organizations with a wide mission, but for the women who live on the island, range of enrichment and informational programs for the newly opened La-na‘i Women’s Center is providing women and families. Maui Economic Development them with the type of care that has been unavailable Board also helped the center receive a federal grant. until now. In this small, close-knit community of about 3,000, the women’s center is testament to the power In March of this year, the La-na‘i Women’s Center of partnerships and love for the island of La-na‘i and moved into a one-bedroom apartment made possible its residents. through a lease from Castle & Cooke Resorts. It was named “Jody’s Place,” to acknowledge the Mallons Heading the effort over the past eight years to make for their inspiration and support. the center a reality are long-time La-na‘i residents Phyllis McOmber, a retired Maui Community College The board is also working to make family counseling coordinator, and Jackie Woolsey, a public health a reality with help from La-na‘i Elementary and High nurse. Drawing support from the community, plans School. Also in the works is dental care for children for the center began in 1999 after a community needs provided through the Native Hawaiian Health Care assessment ranked a women’s health center a high System and gynecological tests though a partnership priority. Plans included providing information and with Moloka‘i Women’s Health Center. counseling to residents as well as space for visiting specialists to service patients. About two years ago, La-na‘i Women’s Center was invited to consider applying as a federally qualified In 2002, the Hawai‘i Community Foundation was health center to serve the medically underserved, contacted by island newcomers and philanthropists underinsured and uninsured on La-na‘i, the only Ted and Jody Mallon. And, as if in response to the island in the state without such a health center. community needs assessment, the couple asked Jody and Ted Mallon The board is working to secure federal funds for the - the Foundation to explore the needs of the women center, and the State Department of Health has at home on Lana‘i. on La-na‘i. “La-na‘i is our home,” said Ted Mallon. funded two people to facilitate and write the grant. “A community may survive, but it can’t thrive without empowered, healthy women. A center dedicated to As McOmber, Woolsey and the Mallons can attest, the healthcare of women will have a ripple affect it takes many partners working together to turn throughout the entire community of La-na‘i well a dream into reality and make everything they love into the future.” about La-na‘i better. Beyond providing medical care, it is the hope of all parties involved that the La-na‘i Thanks to the impassioned belief, generous donation, Women’s Center be a multi-purpose, welcoming place and timely interventions of the donors and thanks to for empowerment and support. “This community has the determination and hard work of the center’s board opened its arms and hearts to us and we’ve enjoyed members, the dream started to take shape. Assisted that sense of welcome for the last 30 years,” said by the Moloka‘i Women’s Center, the board developed McOmber. “Although the island is small, there is a survey of needs in both English and Ilocano. It held room for all.”

17 Because It’s Our Home • 2006 ANNUAL REPORT Teachingby giving HCF Legacy members Jon and Eleyne Fia with their sons Luke Jared “LJ,” age 8, and Raiden, age 4. Jon and Eleyne Fia

ost educators will do almost anything to help On the other hand, the Fias have also seen what Mtheir students succeed. And some, like Jon and a good college education can do for a student. Waipahu High School Eleyne Fia, go above and beyond by leaving a lasting “It literally changes their path in life,” said Eleyne. Teacher Jon Fia. legacy for our most important resource—our children. Determined to ensure that the youth of tomorrow would always have the opportunity to go to college, Jon, a Waipahu High School teacher who the young couple with two sons of their own, provides instruction on how to apply for established a Legacy fund at the Hawai‘i Community college, and his wife, Eleyne, a Campbell Foundation, which, upon their passing, will provide High School career and college counselor, higher education scholarships to Campbell and have seen first-hand the struggles that Waipahu High School students, and to athletes good students go through to fund their of Samoan descent. college education. “Eleyne and I made the decision to establish this “We often see students whose parents fund because we know, if given the opportunity, aren’t familiar with the college admissions our students will then, in turn, help someone else. and financial aid process,” said Eleyne. So, our gift will live on in perpetuity in more ways “As a result, they are unprepared to help than one,” said Jon. “We believe that when you their children with college expenses. think of others before yourself, a more understanding And in the end, our students end up missing and gentler society will develop and the world will out on the opportunities to attend college become a better place.” and move up in socioeconomic status.” Jon, originally from San Diego, and Eleyne, born and raised in Hilo, considered settling down somewhere outside of Hawai‘i, but choose to stay, ultimately, because of family and the people. “It isn’t the beaches or the weather that makes Hawai‘i special,” said Eleyne. “It’s the people who make Hawai‘i such a beautiful place. Concepts such as ‘ohana (family) and lessons in thoughtfulness and acceptance simply can’t be taught anywhere else like they are here in Hawai‘i.”

Campbell High School Career and College Counselor Eleyne Fia.

19 Because It’s Our Home • 2006 ANNUAL REPORT Healing our children at home Two of the many staff members at Wahiolanona‘opio who serve Hawai‘i Island’s youth: Craig Norton, program director; and Erik Beach, vocational and agricultural instructor. Wahiolanona‘opio

t’s difficult enough to be a teenager struggling with individualized education plan, and participate in Ia substance abuse problem. But to be pulled away vocational education and service learning projects from your family and your home to receive treatment in the community. The rehabilitation program provides on another island can create even more challenges. both land and ocean activities designed to build life skills and challenge youth, including voyaging on Wahiolanona‘opio, which means “healing the Makali‘i sailing canoe. place for youth” in Hawaiian, is the first residential substance abuse treatment program Families are encouraged to participate in their for adolescents on the Island of Hawai‘i. It children’s recovery through an array of family-centered opened in 2004 in Laupa-hoehoe to provide activities. Follow-up and after-care services are outpatient services for girls and residential provided for a year after completing the program services for boys. The program is designed for and include graduate sails and social events. high-risk adolescents ages 13 to 18 needing comprehensive treatment and education, Wahiolanona‘opio is a product of many public-private including mental health services. It serves partners working together to realize a common youth with substance abuse issues, including goal—taking care of the island’s children. The County those addicted to crystal methamphetamine, of Hawai‘i secured start up funding for the program or “ICE.” from the Substance Abuse Mental Health Services Administration of the U.S. Department of Health “This program is critical to addressing and Human Services. Marimed Foundation was youth addiction to crystal meth on Hawai‘i awarded the contract to provide the services and Island,” said Billy Kenoi, executive assistant partnered with other agencies on the island as well. to Hawai‘i County Mayor Harry Kim. Kenoi Additional funding came from the Hawai‘i Community and Mayor Kim were instrumental in Foundation’s grant award from the Department of securing federal funding to combat the Justice, Office of Community Oriented Policing to ICE problem on the island, and identifying combat ICE use in the State of Hawai‘i. the imperative need for an adolescent residential treatment center. As a result of this investment in the young people of Hawai‘i Island, Wahiolanona‘opio has recently “For the first time, our children can get been awarded long-term funding from the state, the help they need right here at home, close ensuring that the island’s youth have continued to their own support systems. To have a culturally and access to residential rehabilitation services within community-based program for our youth on this island their own community. has truly been a blessing,” said Kenoi. At Wahiolanona‘opio, youth “No single entity has the resources to solve participate in vocational education Wahiolanona‘opio is experiential in nature, adolescent substance abuse alone,” said Kenoi. and service learning projects, such making best use of the island’s rich cultural and “But when everyone works together, that’s when as hydroponic farming. environmental resources. Youth being treated at great, transformational things happen.” our children at home the facility attend school daily, follow an intensive 21 Because It’s Our Home • 2006 ANNUAL REPORT 2005 Grants and Contracts Summary

Hawai‘i Community Foundation Total Grants and Contracts Distribution: $19,409,888* (Does not include $9,165,242 in grants administered on behalf of private foundation clients)

Donor Advised Designated Discretionary

Advancing Nonprofits $21,000 – $481,199 Arts, Culture & Humanities $363,742 $297,645 $654,780 Community Development $99,867 – $158,941 Education/Early Childhood Education $346,557 $449,123 $482,784 Environment $80,506 $107,203 $357,042 Geographic Areas – – $550,779 Health $150,533 $422,363 $8,632,032 Human Services $752,248 $335,694 $2,812,093 Scholarships (HCF Funds only) – – $929,025 Religion/Spiritual Development $122,672 $198,500 $1,000 Philanthropy & Voluntarism $41,000 – $73,270

For a complete listing of our Other $60,648 $10,048 $417,594 2005 Distribution of Grants TOTAL $2,038,773 $1,820,576 $15,550,539 and Contracts, please visit www.hawaiicommunityfoundation.org *Includes miscellaneous expenses related to implementation of various programs.

22 HAWAI‘I COMMUNITY FOUNDATION Hawai‘i Community Foundation— your guide through the charitable planning process

As a statewide, public foundation, we have a responsibility to serve the broader interests in our community, not just our own. We are committed to building the charitable assets of Hawai‘i, regardless of whether those assets reside at the Foundation or not. Here’s how we can help:

HCF’s Donor Services Team: • With more than 90 years of charitable experience, we know Hawai‘i and its people. Seated from left to right: Liza Yucoco, Christel Wuerfel and Mariko Miho. Standing: Cori Joseph and Kalei Stern. • As a statewide foundation with offices and staff throughout the islands, we’re in contact with hundreds of local nonprofits and recognize their ever-changing needs. • We offer referrals to other nonprofits and professional resources when needed OUR COMMITMENT and have an extensive network of private and public sector partners. No matter how you choose to fulfill • With the largest grantmaking staff in Hawai‘i, we’re your personal resource your charitable giving goals, the in any area of philanthropic interest. Hawai‘i Community Foundation is dedicated to meeting your • We assist professional advisors, such as estate planning attorneys and financial individual needs and objectives. advisors, with information about current tax laws and methods for charitable giving. • With over 400 funds and assets exceeding $405 million, we can offer reasonably We’re here to help you make the most priced services that take advantage of our size and scale. of your giving to whatever charity you choose at any stage in your life. • Our relationships with mainland institutions can also assist you with out-of-state interests.

23 Because It’s Our Home • 2006 ANNUAL REPORT Giving back through DONOR ADVISED FUND DESIGNATED FUND the Hawai‘i Community Foundation

While there are many choices that you can TYPES OF ASSETS make for your charitable plans, selecting If you wish to be active in grantmaking You can create a designated fund, which is a permanent endowment, to support your favorite the Hawai‘i Community Foundation can activities, consider starting a donor advised SCHOLARSHIP FUND charity or charities forever. If the organization be one of them. We provide our donors fund. You are able to make recommendations ceases to exist, our Board of Governors will with efficient and flexible ways to give, for grants to specific organizations from the select an alternate charity, with a similar mission, and provide you with the expertise and fund. If desired, you can share your charitable for your fund to support. service to make giving a deeply personal values with your children by including them and rewarding experience. in the grantmaking process. The Foundation handles all administrative matters. You may use a variety of assets to contribute to TYPES OF FUNDS orCONVERTING set up a fund, includingA PRIVATE cash, FOUNDATION securities traded You can help students reach their educational onTO major A COMPONENT exchanges, closely FUND held stock, mutual goals by setting up a scholarship fund. Define fund shares, retirement plan assets, real estate, specific criteria, such as geographic area or interests in limited partnerships and more. field of study. Many scholarship funds are Our staff can discuss the benefits of particular FIELDendowed OF in INTEREST order to ensure FUND their availability contributions with you. component fund in the future. Others are spent down over a set number of years. Our scholarship program The Foundation offers a wide range of funds provides traditional four-year college assistance, to provide maximum flexibility to meet your as well as assistance for vocational education A private foundation that chooses to terminate its charitableUNRESTRICTED interests. FUND Most of our funds are programs. current status can easily transfer its assets to the endowed, which means that the assets are Hawai‘i Community Foundation. The assets are invested and a percentage of the earnings CONTACTthen used to US establish a , which is used for grantmaking each year. This allows A field of interest fund is a perfect choice serves the same charitable purpose of the private the fund to continue supporting the community if you want to support an area of interest, foundation, but at much less cost, leaving more in perpetuity. but choose not to be involved in the actual of the fund’s earnings for grantmaking purposes. grantmaking process. You can create your own fund to benefit a geographic area, or An unrestricted fund allows the Foundation a defined purpose, which can be as narrow or to respond quickly to pressing community broad as you wish. The Foundation ordinarily needs. Following the guidelines of our Board administers the grantmaking process for you. 24 of Governors, our experienced staff identifies Hawai‘i Community Foundation would be HAWAI‘I COMMUNITY FOUNDATION current and emerging issues. We apply effective pleased to work with you, with your attorney strategies to address those needs so you can or financial advisor on your charitable goals. be confident that your investment will have Please contact our Donor Services department meaningful results and long-term benefit. at (808) 566-5523 (toll-free at 1-888-731-3863) or email us at donorservices@hcf-hawaii.org FIELD BUILDING OPPORTUNITIES Advancing the AND RESOURCES Nonprofit Sector GRANTS MADE IN 2005: 9 TOTAL AMOUNT DISTRIBUTED: $275,000 In addition to offering programs and grants that are specific to a field, “Breaking Boardom” Nonprofit Board LeadershipIn 2005, the Case Conference Foundation, founded geographic area or population, the by Steve and Jean Case, committed to a Foundation remains committed to three COMMUNITY CAPACITY three-year co-sponsorship of the program. The Foundation supports the advancement BUILDING areas that are broader and available of knowledge, understanding and effectiveness to organizations statewide: of nonprofits by providing training opportunities and disseminating information through research ORGANIZATIONAL and online resources. EFFECTIVENESS PROGRAM The Ho‘okele Award Created in 2003, the conference brings together more than 300 volunteer board members from GRANTMAKING nonprofit organizations and local and national The“Mo’ Foundation Bettah Together” supports proje cts aimed at guest speakers to network and learn about Grantmaking Program important issues involving board governance. strengthening communities and their social GRANTS MADE IN 2005: 4 networks as a basis for a safe, prosperous LEADERSHIP DEVELOPMENT TOTAL AMOUNT DISTRIBUTED: $40,000 and healthy community. The goal of this program is to build strong and The award was created in 2002 by the Wallace GRANTMAKING effective nonprofit organizations. The program Alexander Gerbode Foundation and the Hawai‘i GRANTS MADE IN 2005: 19 focuses on developing capable leaders, effective OrganizationalCommunity Foundation. Capacity It pays Building tribute each year TOTAL AMOUNT DISTRIBUTED: $256,508 management and good governance. toGrantmaking outstanding leaders Program in the nonprofit sector. Promoting Outstanding Nonprofit FIELD BUILDING OPPORTUNITIES Organizations (PONO) Leadership ANDHelps toRESOURCES strengthen social and civic networks Program as a means to develop sustainable solutions The Foundation believes that strong leadership to community issues. is key to increasing the impact of nonprofits in the community. “The Art of Making It Happen” Community Collaboration Skill Building Workshop IncreasesGRANTS MADE the capacity IN 2005: of nonprofit 46 organizations byTOTAL strengthening AMOUNT DISTRIBUTED:organizational $760,054 infrastructure, PARTICIPANTS STATEWIDE: 104 The Foundation supports community partnerships Launched in 2003, the goal of PONO is to create internal management, board governance, by providing training opportunities. a network of empowered, self-aware, resilient strategic planning, technology, marketing, leaders who are capable of navigating change. strategic restructuring, executive transitions 25 PONO brings together a group of successful, and fundraising development. Because It’s Our Home • 2006 ANNUAL REPORT mid-career, nonprofit executive directors for a year-long dynamic learning experience. PARTNERSHIPS & Hawai‘i Children’s Trust Fund Natural Resources Conservation Program COLLABORATIONS

Compassion Capital – Hawai‘i Moving Forward Project GRANTS MADE IN 2005: 3 GRANTS MADE IN 2005: 30 TOTAL AMOUNT DISTRIBUTED: $175,000 The fund was established at the Hawai‘i The goal of this grantmaking program is to help TOTAL AMOUNT DISTRIBUTED: $1,007,253 Community Foundation in 1993 as a public-private secure the long-term health of Hawai‘i’s natural The Foundation facilitates and participates in Crystal Methamphetamine Initiative strategic partnerships and collaborations with Hawai‘ipartnership. Tobacco It supports Prevention programs aimed at resources by improving the management and public and private funders. preventingand Control child Trust abuse Fund and neglect through grants sustainable use of its terrestrial and marine for direct services, community events and public ecosystems. awareness and advocacy.

Compassion Capital is a multi-year partnership dedicated to improving the skills and performance of small, faith and community based organizations GRANTS MADE IN 2005: 23 (FCBOs) to serve the low-income and under- The Foundation administers three federal TOTAL AMOUNT DISTRIBUTED: $646,481 resourced people in Hawai‘i. Partners are: grants from the Department of Justice, Office The Hawai‘i Legislature created this fund in University of Hawai‘i Center on the Family, of Community Oriented Policing Services (DOJ/ 1999 from a portion of the tobacco settlement HawaiianPONO Leadership Islands Program Ministries (left to and right): the Instructor Hawai‘i COPS)* in collaboration with county governments David La Piana; PONO graduate Mark Jeffers of money that was awarded to the State of Hawai‘i Community Foundation. The project provided andGRANTS key agencies. AND CONTRACTS Funds from MADE these grantsIN 2005: will 78 Storybook Theatre on Kaua‘i; HCF Vice President from a multi-million dollar settlement against training and grants to Hawai‘i-based FCBOs. GRANTS AND CONTRACTS MADE IN 2005: 68 addressTOTAL AMOUNT the crystal DISTRIBUTED: methamphetamine $2,704,148 problem of Programs Christine van Bergeijk and Sr. Program the tobacco industry. Hawai‘i Community Officer Pi‘ikea Miller. TOTAL AMOUNT DISTRIBUTED: $7,711,915 statewide. Law enforcement, treatment and Foundation, under the guidance of the Hawai‘i prevention/education is the three-pronged strategy Tobacco Prevention and Control Advisory Board, used to combat the crystal methamphetamine administers this fund. It supports grants for epidemic statewide. prevention, adult and youth cessation services, media, and training and technical assistance.

APPLYING FOR A GRANT: * U.S. Department of Justice, Community Oriented Policing Services (COPS) grant ID#s 2003CKWX0241, In most cases, only Hawai‘i organizations,2004CKWX0370 either as anda unit 2005CKWX0408 of government Public orSafety classified by the IRS as a 501(c)(3) charitablePartnership organization and Community and Policing not Grants,a private CFDA#16.710 foundation, are eligible to apply for a grant. Exceptions may be made in specific program areas. Find out more at www.hawaiicommunityfoundation.org

26 HAWAI‘I COMMUNITY FOUNDATION HCF assists the following foundations: Contractual services to Services to private foundations include: PRIVATE FOUNDATION Other Foundations CLIENTS: •

Hawai‘i Community Foundation provides • a variety of professional philanthropic and grant administration services to family, corporate and private foundations. Providing strategic grantmaking consultation Atherton Family Foundation* • and support. Fred Baldwin Memorial Foundation Communicating to grantseekers as to what SCHOLARSHIP FOUNDATION Cooke Foundation, Limited • the grantmakers’ interests are, and how CLIENTS: Victoria S. & Bradley L. Geist Foundation* and when proposals or applications should Teresa F. Hughes Trust Estate be submitted. George F. Straub Trust • Handling inquiries from the public and Grace Bryan Taylor Trust nonprofit organizations. • Evaluating proposals, applications and final reports. ‘Aiea General Hospital Association • Preparing materials for board members’ Scholarship Fund review and providing staffing for meetings. Cottington Trust for Intellectually Gifted Children Hawai‘i Veterans Memorial Fund Maintaining records and managing Bernice P. Irwin Trust correspondence. Ka‘iulani Home for Girls Trust Preparing news releases, coordinating events Ida M. Pope Memorial Trust and carrying out special services to ensure the Eizo & Toyo Sakumoto Trust preservation of the foundation’s unique image *GearAlso scholarship Up Scholarship provider Program in the community. Gertrude S. Straub Trust, M. M. Scott Scholarship Fund Mildred Towle Scholarship Fund Dr. Hans & Clara D. Zimmerman Foundation 27 Because It’s Our Home • 2006 ANNUAL REPORT Legacy Society

Thanks to those listed here and those who wish to remain anonymous, who arranged for a gift to the Foundation in their will, trust, charitable gift Richard Aadland Laila F. Hoffmann Henry E. Renteria annuity or pooled life income fund. Ernestine Armstrong Sadao & Jean Honda Earl G. Reque Robert & Jacqueline Bean Leonard & Rebecca Kamp Michael & Kathleen Roeder Renold B. Ben Elmer Keao Claude Rothe Wayne R. Benner Gerald & Karen Keir Marsha Schweitzer Ann Bernson William & Karen Kemp Don H. Smith Susan Bradford Henry A. Koszewski Perry & Sally Sorenson Frances K. Brossy Ivor Kraft Stanley R. Stong Cathy Capozzoli Gerald W. Kwock Michael & Carol Sullivan Lorinda Cheng-Arashiro Jack & Chonita Larsen Russell H. Taft Henry B. Clark Bernadette Lau David & Virginia Thomas William & Carol Coops Chester P. Lau James & Diana Thomas Richard & Brenda Cowan John E. Loomis John & Mary Karyl Thorne Richard & Myrna Cundy Cora A. Manayan Earl & Frances Tokumura Lucille Cushnie* Karen Masaki Maxine Yukie Tokuyama Jon & Marti deBenedetti Robert & Evanita Midkiff Thelma Tyler Clarence & Gertrude Ferdun Hazel Milnor Totthi Vreedenburgh Ceferino & Mitsuko Fernandez Esther A. Mitsunaga Kendall P. Watts Jon & Eleyne Fia Astrid Monson* Gulab & Indru Watumull Patsy K. Fujimoto Mary May Moore Sim Wenner Legacy Society members Indru and Gulab Watumull. Jerrold & Niki Fuller Harold Mortenson* Katherinedeceased H. Wery Marc W. Greenwell Melvyn & Sadie Murakami Robert & Karen White 28 HAWAI‘I COMMUNITY FOUNDATION Randolph Hack Lori Odell Beatrice Young Walter D. Haskins June Olson* Ronald J. Hays Jennie L. Phillips * Kapua Heuer* Edward Powell CORPORATE FOUNDATIONS 2005 AND TRUSTS Donors

The following Haseko (Ewa), Inc. ‘Oli ‘Oli Productions F. S. and Mary Lyman corporations, Hawai‘i Creative Realty, L.L.C. Trust foundations, trusts Bank of America Inc. Omnitrack Group, Inc. Frank & Katherine and individuals Matching Gifts Program Hawai‘i Flouridation Pacific Asia Design Abigail K. Kawananakoa Woodford Memorial made contributions Bay West Council Group, Inc. Foundation Trust Big Island Television/ Hawai‘i Nautical, Inc. Pacific Dental Care & Agnes Sutorik Geiger Frank H. Sayre Trust to the Foundation BITV Hawaiian Electric Co., Inc. Denture Laboratory Inc. Trust Fred Baldwin Memorial valued at $250 or Brandvold & Associates, Hawaiian Pedals Limited Pearl Harbor Visitors Amelia Gaston Trust Foundation more in 2005. Inc. Hawktree International, Center, Inc. Arthur Lawrence Mullaly Friedman Family We also acknowledge Brownstein Hyatt Farber Inc. PFI Rubbish Service, Inc. Trust Foundation C & F Real Estate HDA - Operating Philippine Nurses Atherton Family H. C. Shipman Foundation the gifts of those Management Corp. HDEC - HDA Dental Association Hawai‘i Foundation Harold G. & Graycee R. donors who have Castle & Cooke Resorts, Samaritans R.M. Towill Corporation Carolyn Curry Elbel Nicolaus Trust requested to remain LLC HDEC - Operating Realtors Association of Memorial Foundation Harold K.L. Castle Honolulu Board of Maui, Inc. Foundation anonymous. Chevron Products - Castiglione a Casauria Company Realtors Red ‘Ohi‘a, LLC Foundation Hawai‘i Health Systems Child and Family Services Innovative Technical Retina Associates of Community Foundation Foundation Clark Realty Solutions, Inc. Hawai‘i, Inc. Silicon Valley Helen Morgan Residuary Coldwell Banker Aloha Ironman: World Triathlon Saiva Siddhanta Church Consuelo Zobel Alger Trust Properties Corporation Security Title Corporation Foundation Jack and Marie Ryan RLT Communications-Pacific, Itoen (USA), Inc. Star Markets, Ltd. and Cooke Foundation, Jhamandus Watumull Inc. JTSI, Inc. the Fujieki Family Fnd. Limited Fund David H.Murdock Kalama Land Company, The Center Dr. Alvin & Monica Saake John M. Ross Foundation Institute for Business Ltd. The Honolulu Advertiser Foundation Kilgo Charitable Trust and Culture Kalihi Education Coalition The Madden Corporation Edna A. Howe Revocable Lahainaluna High School Deja Vu Surfwear Kamuela Kayak Corp. The Research Corporation Trust Foundation Doo Wook and Helen Kanemaru Dental Group, of the University Edward Freyer Residuary Larry and Beatrice Ching Nahm Choy Trust Inc. of Hawai‘i Trust Foundation East Diamond Head Kawaiahao Church Theo H. Davies & Co., Ellen R. Ashton Trust Association Kawailoa Development Ltd. Estelle Schustek Elliott Enterprises, Inc. Kobayashi Management, Time Warner Cable Revocable Living Trust F. Koehnen, Ltd. LLC Times Super Market, Estrid C. Dodson Rev. First Data Western Union Kona Rent All Ltd. Trust - Foundation Lana‘i Oil Company Tropical Music, Inc. Donors Edith and First Hawaiian Bank Leadership Kaua’i United Way of King David Leong. Foodland Super Market, Lima Kokua, Inc. County Ltd. Lynch Painting, Inc. USAFunds Makoa Wahines O’Kona Van Pernis Smith Forest City Enterprises, 29 Inc. Maui Historical Society & Vancil Because It’s Our Home • 2006 ANNUAL REPORT Goodfellow Bros., Inc. Maui Quarantine Watanabe Ing Kawashima Grace Pacific Corporation Munekiyo & Hiraga, Inc. & Komeiji LLP Group 70 International, O‘ahu Filipino Community William & Flora Hewlett Inc. Council Golf Scholarship Foundation INDIVIDUAL Ludwig Trust, Gerrit Wallace A. Gerbode Gary Caulfield Janet Hirai Ruth H. Matsuura Charles Salmon Mary Wentworth Deering Foundation Chia-Ling Chang Gaynielle & Vernon Hirata David & Wendie McClain ThanhLo & Puongpun Trust William Livingston Lynette L. Char Masako Hirata Ah Quon McElrath Sananikone Nadao & Mieko Residuary Trust Robert L. Char Stuart T.K. Ho Shirley McKown Jane A. Sawyer Yoshinaga Foundation Wodehouse Trust Mary R. Charles Diane S. Holschuh Jocelyn McMahon Susan H. Sayre Nadine N. Moseley Wally Chong Paul & Betty Honzik Janis Medina Gloria Schwartz Foundation David & Maggie Cole Shoma Hotta Charles & Nancy Meyer Greg & Susan Scott New Moon Foundation Richard L. Collins Walter & Lynn Imai Robert & Evanita Midkiff Mary S. Sheridan Nichols CRUT Trust Sam & Laurie Ainslie Catherine Cooke Esther T.K. Imamura Mariko Miho George & Nancy Slain Orange County James M. Allen Sam & Mary Cooke Louise Ing & Michael Sitch Ronald D. Miller Kelly C. Smith Community Foundation Anthony & Naomi Jean Cornuelle Roy A. Inouye Maurice Miller Perry & Sally Sorenson Peninsula Community Andrade Richard Courson Larry & Claire Johnson Wayne & Colleen Minami Colleen Sotomura Foundation Andrew & Beth Aoki Robert D. Cushnie Michael & Susan Jones Claire K.I. Miyasato Sterling Spiern Prisanlee Trust Thomas & Lynda Sara E. Daly John M. Jones Robert & Carol Momsen Paul & Elle Stephens Robert and Helen Nichols Armbruster Dwight Damon Donald Kanagawa Gary & Faye Morimoto Kalei Stern CRUT Kuhio & Claire Asam Rachun Danapong Andrew & Ann Kikuta John & Marie Moseley James & Christine Stone Robert E. Black Memorial Gene & Beryl Bal Peter W. Dease Charlie & Mary Bea King John & Christine Mumford Stanley R. Stong Trust Robert & Jacqueline Bean Walter & Diane Dods Mark K. Kitamura Jo-Anne L. Nakagawa David & Karen Samuel N. & Mary Castle Kate Bell & Tom Jim & Muff Drorbaugh Robert & Agnes Kiyuna Michael L. Nishime Stoutemyer Foundation Blackburn Patrick & Grace Duarte Cami L. Kloster Lance D. Ogata Larry & Joyce Stupski The Case Foundation Sharon Bintliff Gregory D. Dunn George K. Kobayashi Stacy Y. Ozaki Scott Tangonan The David and Lucile Patrick Boland Dru & Laura Dunworth Carl Kobayashi Gary & Gwen Pacarro Barry & Sandra Taniguchi Packard Foundation Elmer E. Botsai Larry & Trish Egger Paul & Lisa Kosasa Hiram Pajo Anne T. Thomas The Estate of James Alexander G. Broek Kimberly Crozier Evans Wayne Kotaki Andrea Lee Peace Lorraine J. Thompson Campbell John P. Bunnell Paul & Leona Farrell Susan Labrenz James D. Perry John & Mary Karyl Thorne The Hartley Foundation Edmund & Martha Burke Lyn Flanigan Betty Jean Labrenz Andrew & Jaya Poepoe Nora S. Uyeda The J. Paul Getty Trust C. Bryan & Sandy Robert E. Friedman Robert H. Laird Robert Punihaole Mary Sue Vandamme The James & Sally Caldwell Susan S. Fujii Sue Landon Joseph Quever Charles Wall Zukerkorn Foundation Mervina Cash-Kaeo Lynn K. Fujimoto Jon K. Lattimer Barry & Diane Raleigh Jeffrey & Lynn Watanabe The Schuler Family & William Kaeo Judith M. Fujiuchi Clarence Lee Janis A. Reischmann Kendall P. Watts Foundation Helen Gary Marilyn B. Lee Lois & Lee Reiswig Robert T. Watts The Strong Foundation Terrence R. George Wayne S.H. Leong Henry E. Renteria Alan & Irene Weinberg Thz Fo Farm Trust Hobey & Nancy Goodale Edith Leong Tom & Donna Rice Katherine H. Wery Vincent Edward Neal Frank B. Goodale DeeDee Letts Philip Rosenberg & Robert & Karen White Revocable Trust Donors Faye and Aarin Gross Marsha Linden Naomi Shiraishi Nancy D. White Gary Morimoto. Jim & Priscilla Growney Katharine Lloyd & Gerry L. Rott Mavourneen K. Wilcox Anthony & Haunani Hugh Jones George & Debra Rowley Gaylord & Carol Wilcox Guerrero Colin & Mary Love The Rev. Jan & Paula Robert & Diane Witt 30 HAWAI‘I COMMUNITY FOUNDATION Rab & Alice Guild John & Catherine Lowrey Rudinoff Florence & Richard Karen R. Hamada Mette W. Lyons Christine Mendes Ruotola Yamada Ellen Hamada Alison P. Machida Gordon Russell Ronald K. Yamada Walter & Peggy Haskins Geri Marullo Tony Sagayadoro Jodi Shin Yamamoto Susan Heftel-Liquido & Calvin Masaki Ulrike Sako Gary Yonemoto Nicanor Liquido Peter A. Matsuura Louis & Nancy Salera Earle & Ruth Young 2005 DONOR ADVISED FUNDS Charitable Funds Growney Family Fund Hawai‘i Dental Association Dental Samaritans (new funds noted in bold) Fund – JamesHapa Fund F. & Helen G. Gary Charitable Fund COMMUNITY NEED FUNDS Goodale Family Fund These funds provide donors with simplicity and Aina-Nalu Charitable Fund Group 70 Foundation Fund flexibility. Donors are able to select the level of involvement of grantmaking they desire. Funds are established by individuals, families or groups. The objectives of donor advised funds tend to Robert R. & Jacqueline J.H. Bean Fund #2 Hawai‘i Dental Association Relief Fund be broad encompassing charitable, religious, educational, scientific and literary purposes. Hawai‘i Business Roundtable Education Fund These funds have the greatest potential to respond Hawai‘i Pizza Hut Literacy Fund to new and emerging needs in our community. Oscar L. & Ernestine H. Armstrong Advised Fund Hawai‘i Police Memorial Fund Donors give full discretion to HCF’s Board of Aspect Technology Fund Hawaiian Legacy Foundation Fund Governors to authorize grants that provide the RobertMervin R.K. & Cash Jacqueline Memorial J.H. Fund Bean Fund Tommy Holmes Foundation Fund greatest impact. Honolulu Board of Realtors Housing Fund Garret D. Bordenave Memorial Fund Sheridan C.F. Ing Fund Board of Governors Fund Tahmi Brodhead Fund Island Movers/Donald M. Takaki Fund Burkland Family Fund John A. Burns School of Medicine Alumni Lesley & Spencer Johnson Fund Busjaeger Fund Association Fund Kaua‘i Aloha Endowment Fund Margaret Chang Fund James & Abigail Kuaihelani Campbell Fund Kawakami Family Fund Community Needs Fund (Discretionary Clark Realty Corporation Fund Kekumuola Fund General Fund) Central Pacific Bank Community Koa Fund LowellAndrew Dillingham & Estelle Schustek Fund Fund Endowment Fund Kosasa Family Fund Charlotte M. Florine Fund Peter C. P. Char Memorial Fund Koshiba Family Fund Victoria S. Geist Fund ChevronTexaco Education Fund Krucky ‘Ohana Fund William & Edna Howe Fund Philip & Gerry Wong Ching Family Fund Kuki‘o Community Fund Thomas & Mary Litaker Fund Dr. Albert C.K. Chun-Hoon Fund Kulamanu Charitable Fund Mr. & Mrs. Frederick K. Makino Memorial Fund Walter H. Kupau Memorial Fund J. Ward Russell, Jr. Fund William R. & Carol J. Coops Charitable Fund Milton & Henrietta Kushkin Fund Deviants from the Norm Fund D. Lau Family Fund Peter C. Statler Fund Edward J. Doty Charitable Fund Clarence Lee Lunar Fund Arneil Petrie Tout Fund J.C. Earle Family Fund Left Wing Right Brain Fund Economic Opportunity Fund PaulNa ‘Oiwi C.T. Kane & Violet Fund Shaw Loo Fund Economy Plumbing & Sheet Metal Inc. Makana o Maui Fund & Matsuzaki Family Fund George Mason Fund 31 Because It’s Our Home • 2006 ANNUAL REPORT El Arco Iris Fund Moonglow Fund Emergency Group Fund Morimoto & Nishioka Fund Fairmont Hotels & Resorts Fund Muffles Fund Muriel MacFarlane Flanders Fund Eleanor & T. Dudley Musson Fund Friends of Diamond Head Fund Pearl Harbor Fund DESIGNATED FUNDS

New Moon Fund Kitty & Buzz Wo Family Fund DorothyChas Fisher Duniway Memorial Fund Endowment Fund Pacific Century Fellows Endowment Fund Yamada Scott Family Fund Kay A. Edwards Memorial Library Pacific Medical Administrative Group Nadao & Mieko Yoshinaga Education Fund Charitable Trust Fund Endowment Fund EdwardAmelia G. M. Gaston Ehrhorn Fund Entomological Pahiki Nui Fund Scholarship Fund The Center Endowment Fund Puako Fund These funds were endowed by individuals George Howe Farnsworth Fund REC Fund and organizations to ensure that their charities Steve & Joanne Ruppert Fund of choice will continue. In each case, the Friends of Princess Victoria Ka‘iulani School GordonEdith Wilhelmina Russell Fund Sherock Fund contributor selected one or more nonprofit Fund Sananikone-Le Khac Family Fund organization to benefit from the grants for Daniel R. Sayre Memorial Fund as long as the charities exist. Chia Ling Chang Fund in Memory of Suzie Hayes-Schwartz & Andy Schwartz Dr. Fred I. Gilbert, Jr. Family Fund Grace K.J. Abernethy Fund Grandma’s Christian Elementary Tuition Sheridan Fund Brilly & Richard Akeroyd Fund Assistance Fund Carole Sheridan Memorial Fund Aloha Temple Patient Transportation Fund Stephen G. Greenough Memorial Fund AlohaWilliam United M. & WayViolet Endowment M. Borges DesignatedTrust Fund Fund Hawai‘i Pacific University, Hawai‘i Loa Fund JoanneNakila &Holmes Marti ShigekaneSteele Family Fund Fund Louis Asing Fund Hawai‘i Public Television Endowment Fund George C. & Nancy Wright Slain Fund Atherton Fund Hawai‘i Youth Opera Chorus Fund LauraStupski & Family Dallas FundSmith Family Fund A.S. Atherton Memorial Scholarship Fund Takuji Hayashi, M.D. Memorial Fund Spoehr Family Fund John & Dorothy Baird Fund Ouida Mundy Hill Designated Memorial Fund Star Markets, Ltd. & The Fujieki Family Bobby Benson Center Endowment Fund Historic Preserves of Hawai‘i Fund TakenakaFoundation Kaua‘i Fund Community Fund Charles & Helen P. Bishop Fund Irene I‘i Holloway Fund Dwayne & Marti Steele Fund Holy Innocents Episcopal Church Christian Bosse Fund Endowment Fund Karen & David Stoutemyer Charitable Fund Brodhead Family Scholarship Fund Honpa Hongwanji Hawai‘i Betsuin Fund Robert E.L. Brooks Fund Honolulu Symphony Society Fund Colleen Sullivan Fund Alberta E. Brown Fund Kihachiro J. Hotta Fund Patrick J. Sullivan Fund Brownee Brown Performing Arts Scholarship Fund Dora R. Isenberg Molokoa Fund C.H.A.N.G.E. Fund Edwin T. & Leilani Kam Scholarship Fund Takenaka Kaua‘i Cultural & Environmental Fund George Reynold Carter Fund Thomas J. Keller Trust Fund Taketa Family Fund Rebecca Carter Fund John F. Kennedy Memorial Scholarship Margaret & John Ushijima Fund Robert F. Chalmers Memorial Fund in History Fund 32 Victims of Violent Crimes in Hawai‘i Fund Doo Wook & Helen Nahm Choy Fund Clifford Kimball Memorial Fund HAWAI‘I COMMUNITY FOUNDATION Jenai & Roger Wall Family Fund Mary Wilson Crawford Fund King Lunalilo Foundation Fund Kendall Palmer Watts Fund Minnie P. Cuthbertson Fund Ellen M. Koenig Memorial Fund Leonora F. & Joseph K. Wee Family Fund Elizabeth Flora Deinert Fund Marie Kohli Fund Irene & Alan Weinberg Fund Gwendolen B. Dekum Fund Lahainaluna High School Foundation Fred & Mary Weyand Fund Diamond Head Theatre Fund Endowment Fund Lahainaluna High School Foundation Endowment William M. & Violet M. Borges Fund Friends of the Lahianaluna Library Fund –

– Leadership Kaua‘i Endowment Fund Leahi Endowed Pulmonary Chair Fund Salvation Army Fund Mary Sanford Hawaiian Mission Children’s Wilson P. Cannon Fund Lahainaluna High School Foundation Endowment Society Fund Hartwell & Rebecca Carter Fund Scholarship Fund Kathryn LaRue Saunders HUGS Endowment Fund Department of Justice Fund JeanetteJack & Marie A. Le Lord Vine Fund Temple #2 Emanu-El Fund Walter & Cathy Scott Memorial Fund DepartmentHenry Ku‘ualoha of Labor & Muriel Fund Roselani Giugni Fund A.P. Sereno Memorial Scholarship Fund Environment Fund Laura D. Sherman Fund ‘Ewa Beach Community Fund Elizabeth Leithead Fund Cyril O. Smith Fund Thz Fo Farm Fund Anna B. Lindemann Fund Elma F. Taylor– Fund Jean I. Fennimore Fund Katherine Hopper Livingston Fund Takenaka Kaua‘i Healthcare Fund Oscar & Rosetta Fish Speech Therapy Fund Jack & Marie Lord Fund David & Frances Tatman Heifer Project Foodland Community Fund International Fund Susan Mahn Fund Monsignor Benedict M. Vierra Fund Ritchie M. Gregory Fund Maui Academy of Performing Arts Mary & Paul Wagner Charitable Fund Haseko Training Fund Scholarship Fund Marjorie Waterhouse Watts Reading Enhancement Hawai‘i Children’s Trust Fund Mental Health Association in Hawai‘i Grant Ko-loa School Fund Hawai‘iKa Papa Island O Kakuhihewa Fund Fund Endowment Fund Eva H. Webb Fund Hawai‘iKahuku TobaccoCommunity Prevention Fund & Control Trust Fund Mental Health Kokua Fund Franklin Benjamin Wells Fund fbo Public George J. Henritzy Memorial Fund FILED OF INTEREST FUNDS AuntJosie &Maggie Don Over Monteiro Memorial Orphan Fund Fund Television Harry Hewitt Fund for Advancement Na Loio, Immigrant Rights & Public Interest Walt Whitman Fund & Improvement of Justice Legal Center Endowment Fund William Robert Wickland Fund Hewlett Fund Clara T. Nakahara Fund Henry H. Wong Fund May Templeton Hopper Fund Vincent & Katherine Neal Memorial Fund Ivena Ziegenhein Fund Annette Tyler North Fund Lenore & Chester O’Brien Fund Jessie D. Kay Memorial Fund Ke Au Hou, Hawai‘i’s Youth Millennium Fund Josie & Don Over Dance Fund These funds were created by contributors who Leslie S. King Fund Parker & Bernieri Fund for Le‘ahi Hospital stipulated that grants be made in a particular June Ann Kirkpatrick Fund Prisanlee Fund field, or to benefit a certain group of people. Annie Sinclair Knudsen Fund Virginia Pearson Ransburg Fund This type of fund assures the flexibility to adjust Albert T. Koenen Fund Leon J. Rhodes Fund to future changes. The organizations or charities Alan M. Krassner Fund WilliamRoy Hideyuki S. Richardson Sako Memorial Fund Fund serving that field may change, merge or cease La-na‘i Community Benefit Fund Julia Waterhouse Rodenhurst Fund to exist, yet the need may continue. Chonita & Jack Larsen Fund Madelyn Ross Fund Abraham & Annie Lau Children’s Fund 33 Because It’s Our Home • 2006 ANNUAL REPORT Maybelle F. Roth Fund 4Charity Fund Jeanette A. Le Vine Fund Maybelle F. Roth Research Prize in Conservation Gwenfread Elaine Allen Fund Le‘ahi Fund to Treat and Prevent Pulmonary Biology Fund Ellen R. Ashton Fund Disease Royal Hawaiian Band Sick Benefit Fund Baciu Cultural Fund Virginia & Colin Lennox Botanical Research Robert Emens Black Fund Trust Fund SPECIAL PROJECTS FUND

Arthur Lawrence Mullaly Fund

Live Aloha Fund Anthony Alexander, Andrew Delos Reyes Malama I Ke Ola ‘O Na Wahine & Jeremy Tolentino Memorial Fund This fund was established to receive contributions MauiJune OlsonQuarantine Fund Fund Kellie Ann Andrade Scholarship Fund for time-limited special purposes. The ongoing or IngeborgJosie & Don v. F. Over McKee Comedy Fund Fund Laura Jean Armstrong Fund new projects include: Earl E. Bakken Engineering Fund Natural Resources Conservation Endowment Fund 2006 Family Foundations Conference Fund Troy Barboza Education Fund Neighborhood Grants Program Fund AgendaHawai‘i forDental Building Association Community Education (ABC) Fund Fund Billie Beamer Educational Fund Robert C. & Helen F. Nichols Fund Alert Alarm of Hawai‘i Social Capital Fund Bick Bickson Scholarship Fund Rev.Quality Takie of Life Okumura Fund Family Fund Case Foundation Fund/PONO Fellows Program E.E. Black Scholarship Fund Friends of Hawai‘i Charities, Inc. Fund Mary Bloder Scholarship Fund Fund to Empower Excellence in Education Ron Bright Scholarship Fund Parks Family Foundation Fund Geist Foundation Redesign Fund Castle & Cooke Mililani Technology Park Robert C. Perry Fund Gerbode/HCF Fellows Program Scholarship Fund Pikake Fund Castle & Cooke George W.Y. Yim Scholarship Fund Public-Private Partners for Literacy Trust Fund Ho‘okupu Trust, A Legacy for Tomorrow’s Child Henry & Dorothy Castle Memorial Scholarship Fund International Giving Program Joseph & Alice Duarte Memorial Fund James & Winifred D. Robertson Memorial Fund Li Xing School Fund Cayetano Foundation Scholarship Fund Irving L. Singer Fund Mo’ Bettah Together Fund Camille C. Chidiac Fund Richard Smart Fund Albert D. Moscotti Fund Dolly Ching Scholarship Fund Alice M.G. Soper Fund Organizational Effectiveness Program Community Scholarship Fund Shirley Ann Stringer-Heller Medical Research Fund Louis Pohl Trust Fund GeorgeEastside & & Lucille Northshore Cushnie Kaua‘i Scholarship Scholarship Fund Fund SCHOLARSHIPS Adrienne Wong Toyozaki Fund Preschool Tuition Assistance Fund Bal Dasa Scholarship Fund Traut Carson Fund Principals’ Initiative John Dawe Fund Laila Twigg-Smith Art Fund Walk the Talk Fund Department of Hawaiian Homelands Valley Isle Vision Fund Jean Warburton Memorial Fund Scholarship Fund Theodore A. Vierra Fund Women’s Fund Campaign Edward J. Doty Scholarship Fund Bernice & Conrad von Hamm Fund Laura N. Dowsett Fund Mary & Paul Wagner Blindness Prevention Fund Kitaro Watanabe Fund Rosemary & Nellie Ebrie Fund Harry & Jeanette Weinberg Fund for Family Private foundations, individuals, businesses and Jean Erdman Scholarship Fund Literacy organizations create these funds to assist Hawai‘i Blossom Kalama Evans Memorial Scholarship Fund West Hawai‘i Fund residents in achieving their educational endeavors. Ambassador Minerva Jean Falcon Hawai‘i Lillian K. Wilder Fund Scholarship Fund 34 Women’s Fund of Hawai‘i 2200 Educational Scholarship Fund Thz Fo Farm Fund HAWAI‘I COMMUNITY FOUNDATION Tai Up Yang Fund ABC Stores Jumpstart Scholarship Wallace Rider Farrington Memorial Henry A. Zuberano Early Education Fund American Institute of Graphic Arts (AIGA) Scholarship Fund Honolulu Chapter Scholarship Fund in Memory Filipino Nurses’ Organization of Hawai‘i of Jane Suganuma Scholarship Fund American Savings Scholars Program Financial Women International Fund Allan Eldin & Agnes Sutorik Geiger Scholarship Fund Perry & Sally Sorenson Scholarship Fund

OscarSteven & M. Rosetta Ginoza Fish Memorial Scholarship Scholarship Fund Fund William James Lanquist & Dorothy Bading Saake Foundation Fund Jean Fitzgerald Scholarship Fund Lanquist Fund Kurt W. Schneider Memorial Scholarship Fund Friends of Hawai‘i Public Housing Fund Tommy Lee Memorial Scholarship Fund H. C. Shipman Scholarship Fund Lima Kokua Fund Paulina L. Sorg Scholarship Fund Gerrit R. Ludwig Scholarship Fund Shuichi, Katsu & Itsuyo Suga Scholarship Fund DorisMargaret & Clarence Follett Haskins Glick Classical (Hawai‘i) Music Scholarship Dan & Pauline Lutkenhouse & Hawai‘i Tropical FundScholarship Fund Botanical Garden Scholarship & Education Fund Times Supermarket Shop & Score Scholarship Fund Kenneth Makinney & David T. Pietsch Families Tongan Cultural Association Scholarship Fund GraceHawai‘i Pacific Academy Scholars of Recording Fund Arts Bill Murata Scholarship Fund University of Redlands Hawai‘i Alumni RitchieMemorial Gregory Scholarship Fund Fund Makia & Ann Malo Scholarship Fund Scholarship Fund Thelma Grace Hansen Fund Cora Aguda Manayan Fund Nick van Pernis Scholarship Fund Margaret Follett Haskins Scholarship Fund George Mason Business Scholarship Fund Frances S. Watanabe Memorial Scholarship Fund Ichiro & Masako Hirata Scholarship Fund Senator Richard M. & Dr. Ruth H. Matsuura West Kaua‘i Scholarship Fund Scholarship Fund Alma White - Delta Chapter, Delta Kappa Gamma K.M. Hatano Scholarship Fund Shirley McKown Scholarship Fund Scholarship Fund VOCATIONAL EDUCATION Paul & Betty Honzik Scholarship Fund Frank H. Minato Scholarship Fund Vicki Willder Scholarship Fund SCHOLARSHIPS – Carl K. Mirikitani Memorial Fund Eiro Yamada Memorial Scholarship Hawai‘i High School Marketing & Business Plan Moanalua High School Math Scholarship Fund Toraji & Toki Yoshinaga Scholarship Fund Competition Scholarship Fund Craig D. Newnan Memorial Fund Yun Tau Zane Scholarship Fund O‘ahu Filipino Community Council Golf Henry A. Zuberano Scholarship Fund Chinn Ho Scholarship Fund Scholarship Fund FletcherKalihi Education & Fritzi HoffmanCoalition EducationalScholarship FundFund Ellison Onizuka Memorial Scholarship Fund PHG Foundation Fund Logan Nainoa Fujimoto Memorial Scholarship Ho‘omakaKaneta Foundation Hou A New Scholarship Beginning Fund Fund PRSA-Roy Leffingwell Public Relations TheseFund scholarship funds were created to help Elsie S. Yoshizawa Hotta Scholarship Fund PhilippineScholarship Nurses Fund Association of Hawai‘i studentsEllen Hamada interested Scholarship in pursuing Fund technical for Fashion trades David L. Irons Memorial Scholarship Fund PeterFoundation R. Papworth Scholarship Scholarship Fund Fund or Designvocational and fields.Sewing Margaret Jones Memorial Nursing Fund PasuquinioRealtors Association Association of ofMaui Hawai‘i Presidential Scholarship Fund Ka‘a‘awa Community Fund EugeniaScholarship Jacqueline Fund Perry Fund John & Anne Clifton Scholarship Fund F. Koehnen Ltd. Scholarship Fund Gail A. Perry Fund JohannaHew/Shinn Drew Scholarship Cluney Scholarship Fund Fund Esther Kanagawa Memorial Art Scholarship Fund Philippine Cultural Foundation in Hawai‘i SarahScholarship Rosenberg Fund Scholarship Fund Kapolei Business & Community Scholarship Fund Kawakami Family Fund Kawasaki-McGaha Scholarship Fund 35 Hawaiian Because Homes It’s CommissionOur Home •Career 2006 ANNUAL and REPORT King Kekaulike High School Scholarship Fund Technical Education Scholarships Lilian B. Reynolds Fund Kohala Ditch Education Fund Robanna Fund Ouida Mundy Hill Memorial Scholarship Fund Ko-loa Scholarship Fund Arthur Jackman Scholarship Fund Walter H. Kupau Memorial Fund John Ross Foundation Scholarship Fund AIGA HONOLULU RON BRIGHT CHEVRONTEXACO BLOSSOM KALAMA 2005 Volunteer CHAPTER SCHOLARSHIP FUND EDUCATION FUND EVANS MEMORIAL SCHOLARSHIP FUND SCHOLARSHIP FUND Advisory Committees IN MEMORY OF JANE SUGANUMA CASTLE & COOKE and Boards GEORGE W.Y. YIM SCHOLARSHIP FUND

‘EWA BEACH COMMUNITY FUND Ron Bright RobertJOHN H.Edmondson DAWE LAURA JEAN EDUCATIONFred Mackenzie FUND Anna Ater ARMSTRONG FUND Derek Minakami Kaleo Evans Karyn Yasui Lau Gail Peiterson Kaimi Evans Stacey Mills Pauline Sato Pua Johnston Some funds have advisory committees or boards. Jan Nakamura AlanCAYETANO Arakawa Carina Tagupa They are made up of thoughtful community Michael Nomura WilliamFOUNDATION Barrett SCHOLARSHIP FUND leaders who provide their expertise to support Bonnie Freitas the Board of Governors with grantmaking. Richard Mirikitani EASTSIDE & Alvin K. Chock Harry Saunders NORTHSHORE RowenaAMBASSADOR Martinez Dr. Roy Mabe MINERVA JEAN Barbara Ideta Jon Uchiyama KAUA‘IDr. George COMMUNITY Masumoto Paul T. Oshiro EARL E. BAKKEN SCHOLARSHIP FUND FALCON HAWAI‘I Wayne Kotaki Dr. Kenneth Minato Rodolfo Ramos ENGINEERING FUND SCHOLARSHIP FUND June Kunimoto Dr. Albert Yamamoto Frances Rivero Fay Nakamoto DOLLY CHING Dr. Gary Yonemoto Sharene Saito Tam Joy Tamaribuchi SCHOLARSHIP FUND Tim Tucker Barbara Yamashita Benjamin Cayetano Kathleen Yokouchi Vicky Cayetano Mitch D’Olier Edison Miyawaki FAMILY LITERACY Laurel Brier FelipeGRANTMAKING Abinsay SharonMARY JOSEPHINE Chern LloydKAY A. Miyashiro EDWARDS FUND Lyna Burian BetsyBLODER Cole SCHOLAR- MEMORIALJohn Moseley LIBRARY SHIP FUND Silayan Casino Lawrence Lowe Roy Amemiya, Jr. CHARITABLEMarie Moseley TRUST FUND Nic Musico Richard Matsuda Dorothy Ching Alandra Napali Kai Tony Sagayadoro The Laura Jean Armstrong Fund, created in Alan Nakagawa Lynn Fallin Tom Rice memory of Ms. Armstrong, provides scholarships Thomas Pack Lorene Okimoto Brenda Viado to Hawai‘i residents seeking a master’s degree in Barbara Sakamoto Nursing or Public Health. Advisory Committee Winifred Tanaka members, who select the recipients, are listed above. Ward Almeida Sharon Amano Joyce Chapman Diane Iwaoka Lynn Kahoohalahala K.C. Edwards * 36 Solomon Kaulukukui HAWAI‘I COMMUNITY FOUNDATION Keenan Reader Dorothy Edwards Kalen Kitagawa Janet Fehr Gerry Madrazo Wayne C. Watkins Shelley Ng Richard Palma Delwyn H. Wong - WALLACE R. TOMMY HOLMES ARTHUR JACKMAN ANNIE SINCLAIR LANA‘I COMMUNITY FARRINGTON FUND SCHOLARSHIP FUND KNUDSEN FUND BENEFIT FUND MEMORIAL SCHOLARSHIP FUND

MARGARET JONES MEMORIAL NURSING KOHALA DITCH FrancisHASEKO Oda FUND EDUCATIONAL FUND TRAINING FUND Jeff Overton Donna Pennington Guy Chinen Clytie Mead Tad Miura, Jr. Cyndi Arruiza Kelley Schmitt CHONITA & Sarah Chinen Peter Sparks Myles- Shibata Joan Dela Cruz Austin Dias Jim Stone KOLOA JACK LARSEN FUND MARGARET Chris Colgate Sonia Topenio Larry Kawasaki Charles Hite SCHOLARSHIP FUND FOLLETTScott Tangonan HASKINS John Finney Pierce Myer Jan Javinar SCHOLARSHIP FUND FredELSIE FongS. YOSHIZAWA John Ornellas Chad Kaanoi FredHOTTA Hemmings SCHOLARSHIP Neal Tamashiro ArleneFILIPINO Lum NURSES’ DaleFUND Hope MarianJESSIE D. Benham KAY Rodney Inaba Jackie Woolsey ORGANIZATION Trinidad Peltier Tom Sagawa Janice Parrot RuthMEMORIAL Honda FUND William Shontell OF HAWAI‘I FUND Mary Poole Sharene Saito Tam Carol Wilcox Jane Ibara Eugene Shen Gaylord Wilcox Colleen Minami LE‘AHI FUND Rosemary Sumajit Ruth Stepulis JackSCIENTIFIC Larsen REVIEW Michael Unebasami Susan Wong Yvette Blake AliceCOMMITTEE Richardson JEAN FITZGERALD HAWAI‘I CHILDREN’S KAUA‘I ALOHA Byron Cleeland Barbara Rutter SCHOLARSHIP FUND Katherine Acks TRUST FUND ENDOWMENT FUND Maggie Bruck Maxine Correa Richard R. Szuster Chris Bacchaus Bud Clark PeterKUKI‘O Dease Robert M. Witt JoyceHO‘OMAKA Chun HOU – Frank Atherton COMMUNITY FUND Karen Muraoka Frances Frazier Mario Palma ChrisA NEW Daly BEGINNING E. Allison Kay Renee Riley Pauline Hadama Agnes Reyes IrisFUND Nitta Jan Kuromoto Ron St. John Phyllis Kunimura Grace Taguchi Karl Lo Donna Vierra Julie Souza David Easa, M.D. Charlotte Wilkinson Christine S. Fukui, M.D. MasuGROUP Kusume 70 Dyer DennisCHINN ArakakiHO SusanELLEN M.Kanoho KOENIG JamesTOMMY H. LEE Gollop, M.D. FOUNDATIONMarilyn Kiner FUND SCHOLARSHIP FUND DAVID L. IRONS MEMORIAL FUND MEMORIAL Suzanne Chun-Oakland Maryanne Kusaka John Hardman, M.D.* Judy Moody MEMORIAL SCHOLARSHIP FUND Loretta Fuddy Michael J. Murakoshi Sam Ainslie Reid Ikeda, M.D. Barry Nakasone SCHOLARSHIP FUND Michael Tongg Stephanie Reid Carl Carlson James Lumeng, M.D. Betsy Somerville Alan T. Yamamoto Betty Vitousek Bodhinatha BJ Kobayashi Laurence Rotkin, M.D. Purpura Patrick K.S.L. Yim Pip White Veylanswami Jim Lally Frank Tabrah, M.D. Karen White Robert Punihaole Elle Stephens

Teresa A‘ea Derrick Hatami George S. Brosky George J. Atta Barbara Kakuda Alfred H. H. Hee Beverly-Joan Garcia 37 Because It’s Our Home • 2006 ANNUAL REPORT Dennis Kamae Robyn Keawe Anne Irons Walter S. Kirimitsu Reed Kishinami Charles Kaneshiro Cynthia Kunimura Lynne Tsuda Thomas A. Lee Cami Kloster Neal Takamori Adele Tsukamoto Kawika McKeague Larry Takumi Jim Nishimoto Penny Tom LUTKENHOUSE & PRSA – HAWAI‘I/ KITARO WATANABE ALMA WHITE – HAWAI‘I TROPICAL ROY LEFFINGWELL FUND DELTA CHAPTER, BOTANICAL GARDEN PUBLIC RELATIONS DELTA KAPPA SCHOLARSHIP FUND SCHOLARSHIP FUND GAMMA SCHOLARSHIP FUND MARJORIE NEW MOON FUND WATERHOUSE WATTS KENNETH MAKINNEY Scott Lozanoff, M.D. READING & DAVID T. PIETSCH ENCHANCEMENT Paul Patek, M.D. - FAMILIES SCHOLAR- GRANT – KOLOA SHIP FUND Helen Petrovich, M.D. SCHOOLDavid McNeil FUND ToddO‘AHU Blake FILIPINO Seto, M.D. KURT W. SCHNEIDER Masahiro Yamaguchi Daniel Lutkenhouse COMMUNITYAndre Theriault, M.D. KristenMEMORIAL Bonilla Pauline Lutkenhouse COUNCIL GOLF NancySCHOLARSHIP Daniels FUND RowenaVICTIMS Blaisdell OF VIOLENT SCHOLARSHIP FUND Duke Gonzales VioletCRIMES Hara FUND Amy Hennessey Dee Ann Ling MAKIA & ANN MALO Bennett Dorrance Thuy Fujimoto Sara Platte Carol Okutani SCHOLARSHIP FUND Velma Omura LAILA TWIGG-SMITH WEST HAWAI‘I FUND Elizabeth Powers Joseph Goldcamp ART FUND Leona Farrell YAMADA SCOTT Edwina Romig Dulce Shafer FAMILY FUND – Jack Sullivan REV. TAKIE OKUMURA Ernest Magaoay Kendal Watts EIRO YAMADA SCHOLARSHIP MAUI QUARANTINE FelipeFAMILY Abinsay FUND Pierce Myers Robert Watts, Jr. Lee Donahue FUND Eddie Agas Tamara Sanches Robert Watts, Sr. Pegi Scully Cleo Bala-Casino Glenn Sexton Vicky Holt-Takamine Jenny Quezon deceased Ann Malo Tina Salvador Laurie T. Ainslie Makia Malo Duncan Dempster Greg Chun THEODOREJay Jensen A. VIERRA Tina Clothier MEDICAL RESEARCH GeorgiannaFUND Lagoria DarlWEST Gleed KAUA‘I ADVISORY PHILIPPINE CULTURAL Galen C. Leong SCHOLARSHIPSharon Handgis FUND Ronald Yamada COMMITTEE Margaret L. William Baldwin FOUNDATIONKaulukukui OF Cade Roster David Kaapu * Richard Cameron DianeHAWAI‘I Kodama SCHOLAR- Fred Roster Dale Ishida Suezaki SHIP FUND Stephen Holaday Grant Lee Waileia Roster Cindy Whittemore Lynne Woods Robert R. Midkiff BERNICE & CONRAD Ross Wilson, Jr. Sada Okumura, M.D. VON HAMM FUND

Charles E. Nelson Earlynne F. Oshiro Larry Egger Sandra Chang, Ph.D. Theodore Vierra, Jr. Trisha Egger 38 David Curb, M.D. Takeshi Fujita RosanneHAWAI‘I COMMUNITY Harrigan, FOUNDATION Conchito Cachero Leila Kuboyama Ed.D. Annie Corpuz Nancy Matsuda Velma Kameoka, Magdalena Domingo Meleen L. Corenevsky Ph.D. Jose Lazo C. Michael Heihre Olivier Le Saux, M.D. Cecilia Villafuerte James C. Pell Statement of Assets, Liabilities and Net Assets (Modified Cash Basis) December 31, 2005

Unrestricted Temporarily Restricted Total ASSETS

–

– Investments, at fair value Combined investment funds $ 194,609,660 $ 135,599– $ 194,745,259 Cash management funds 34,052,857 1,165,399– 35,218,256 Common stocks 33,373,303 13,008– 33,386,311 U.S. Treasury bonds 9,971,455 9,971,455 Fixed income funds 5,081,461 1,595,030 6,676,491 Real property held for sale 1,208,562 1,208,562 LIABILITIES AND NET ASSETS Total investments 278,297,298 2,909,036 281,206,334 Cash 2,247,339 2,247,339 Property, net 578,470 – 578,470 Security deposit and other 142,905 – 142,905 Total assets $ 281,266,012 $ 2,909,036– $ 284,175,048 – – Liabilities Contract funds held for Tobacco – Fund $ 47,085,068– $ $ 47,085,068 Gift annuity liabilities 2,706,999 2,706,999 Funds held as agency endowments 1,366,858 1,366,858 Capital lease obligation 23,020 23,020 Total liabilities 51,181,945 51,181,945 Net assets * Unaudited- Unrestricted These assets are not included in HCF’s modified cash basis audited financial230,084,067 statements. The audited financial statements with accompanying notes and unqualified230,084,067 opinion from independent Temporarily auditors restricted can be examined at HCF’s offices. 2,909,036 2,909,036 Total net assets 230,084,067 2,909,036 232,993,103 Total liabilities and net assets $ 281,266,012 $ 2,909,036 $ 284,175,048 Other Trust Assets* (Note 7) $ 120,384,000 39 Because It’s Our Home • 2006 ANNUAL REPORT Combined Market Value* $ 404,559,048 Revenues and Expenses and Changes in Net Assets (Modified Cash Basis) Year Ended December 31, 2005

Unrestricted Temporarily Restricted Total REVENUES

– – – – –

– Contributions $ 14,570,643 $ 708,520 $ 15,279,163 Contracts and grants 3,737,517 3,737,517– Contracts and grants Tobacco Fund 4,974,246 – 4,974,246 Investment return designated by payout policy 7,501,505 7,501,505 EXPENSESIncome from perpetual trusts 2,796,055 2,796,055 Interest and dividends 829,878 12,377– 842,255 Service –and administrative fees 1,113,451 – 1,113,451 Net assets released from restrictions – Satisfaction of program restrictions 497,003 (497,003)– Other 290,373 – 290,373 Total revenues 36,310,671 223,894– 36,534,565

Grants 14,300,388 14,300,388 GAINSGrants AND Tobacco LOSSES Fund 3,340,035 3,340,035 Program services 3,689,367 3,689,367 Finance and administration 1,803,069 1,803,069 Charitable services and donor relations 886,573 886,573 Total expenses 24,019,432 24,019,432 Increase in net assets before gains and losses 12,291,239 223,894 12,515,133 NET ASSETS Investment return in excess of amount designated by payout policy 3,035,964 37,107 3,073,071 TheChange audited in financialvalue of statements split-interest with accompanying agreements notes and unqualified opinion from independent189,084 auditors can be examined at HCF’s (18,922)offices. 170,162 Total gains and losses 3,225,048 18,185 3,243,233 Total change in net assets 15,516,287 242,079 15,758,366 40 JanuaryHAWAI‘I COMMUNITY 1, 2005 FOUNDATION 214,567,780 2,666,957 217,234,737 December 31, 2005 $ 230,084,067 $ 2,909,036 $ 232,993,103 Financial Statements and Notes December 31, 2005

1. Organization and Summary of Significant Accounting Policies Risks and Uncertainties

Basis of Accounting The Foundation invests in or holds a variety of investment vehicles, including Hawai‘i Community Foundation (the “Foundation”) is a statewide public community commonInvestments stock, corporate and governmental obligations, mutual funds and real foundation. Its mission is to help people make a difference by inspiring the spirit of estate. These investments are exposed to interest rate, market, credit and other giving, and by investing in people and solutions to benefit every island community. risks depending on the nature of the specific investment. Accordingly, it is at least The significant accounting policies followed are described below: reasonably possible that these factors will result in changes in the value of the Foundation’s investments, which could materially affect amounts reported in the financial statements. The Foundation’s policy is to prepare its financial statements on the basis of cash receipts and disbursements, except that investments are carried at fair value, major property items are capitalized, equipment leased under capital leases are capitalized, Investments in fixed income funds, U.S. Treasury bonds, corporate bonds, mutual noncash gifts and bequests are recorded at fair value at the date received, and funds and common stocks are stated at fair value based on quoted market values. changes in the fair value of investments and depreciation expense are included in the Investments in cash management funds are stated at cost, which approximates fair statement of revenues and expenses and changes in net assets (modified cash basis). value. The average cost method is generally used in determining gains or losses on Accordingly, the accompanying financial statements are not intended to present investments sold. financial position and changes in net assets in conformity with accounting principles generally accepted in the United States of America (i.e., “GAAP”). Certain funds are placed in investment trust accounts called combined investment funds. The investment trust accounts are operated using the “market value unit Some of the more significant differences between GAAP accounting and the method.” Under this method, each component fund within the combined investment Foundation’s modified cash basis of accounting include: contribution income under funds is assigned a number of units based upon the relationship of the market value GAAP is recorded when an irrevocable pledge is received rather than when the cash of the funds’ investments to all the combined investment funds’ investments at the is received; grants expense under GAAP is recorded when a binding commitment to Payout Policy time of entry into the investment accounts. Combined investment funds earnings disburseUse of Estimates funds is communicatedin the Preparation to the of grant Financial recipient, Statements rather than when the cash is are allocated and distributed to participating funds based on their respective units disbursed; a financial interest in an irrevocable trust under GAAP is recorded when in the accounts. an entity is named as the remainder interest beneficiary, rather than when the gift is received; and assets held in trust by others (see Note 7) is recognized under GAAP Real property held for sale is stated at estimated fair value, based on appraisals in the Statement of Assets, Liabilities and Net Assets based on the fair value of such or assessed values. assets. Such assets are not recognized under the modified cash basis of accounting.

The Foundation adheres to a payout policy in order to preserve the growth of its The preparation of financial statements requires management to make estimates and endowment assets and to ensure that the Foundation has a steady and growing 41 assumptions that affect the reported amounts of assets and liabilities and disclosure stream of earnings to meet community Because needs. It’s Our Home • 2006 ANNUAL REPORT of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual The payout that the Foundation distributes from the combined investment funds results could differ from those estimates. to each participating component fund for grants and expenses is calculated Financial Statements and Notes (Cont.)

Designated, Donor Advised, and Field of Interest Funds

by multiplying a fixed percentage by a base. The fixed percentage is reviewed charitable purposes. Principal contributions are generally invested in perpetuity periodically in light of evolving trends with respect to investment returns and the under the Foundation’s Declaration of Trust. The Board of Governors determines rate of inflation. At December 31, 2005 and 2004, the Foundation’s payout percentage how the payout is to be distributed. factor was 5%. However, if the market value of a component fund drops below the contributions to the principal, then only the income from the fund will be distributed. The designated, donor advised, and field of interest funds include contributions The base is a 48-month rolling average unit market value of the combined investment from donors who indicate a field of charitable endeavor to which the payout is to be Property Pooled Income Fund funds, multiplied by the current number of units in the combined investment funds. directed, who name specific charities to be income recipients, or who describe a group Computation of the payout is made at the end of each month, and is inclusive of the of individuals on whose behalf funds are to be expended. Principal contributions last completed month. are generally invested in perpetuity under the Foundation’s Declaration of Trust. Because of the Board of Governor’s power to modify any restriction or condition in the To the extent that the payout exceeds interest and dividend income for the period, distribution of funds, the amounts in these funds have been classified as unrestricted they are made from realized and/or unrealized gains. in the accompanying financial statements.

PropertyFund Management is stated at cost if purchased or fair value if donated at the date received. The pooled income fund was created to increase the endowment assets of the Depreciation is computed using the straight-line method over the estimated useful Foundation and to promote support to community charities. Donors contribute to lives of such property (5 to 7 years), or lease term, if shorter. Property recorded the Foundation and receive income for life. Generally, at a donor’s death, the residue under capital leases are amortized using the straight-line method over the lesser ofGift the Annuities gift is transferred to establish a board discretionary or designated fund, and of the estimated useful lives of the assets or the related lease term. Gains or losses earnings thereafter are distributed in accordance with the donor’s instructions given from the disposition of property are included in current operations. at the time of the gift. The pooled income fund is considered temporarily restricted Operating Fund until, at the time of a donor’s death, the funds are transferred to establish a board discretionary, designated, donor advised or field of interest (component) fund of To ensure observation of limitations and restrictions placed on the use of resources the Foundation. available to the Foundation, the accounts of the Foundation are managed as Boardindividual Discretionary charitable funds, Funds according to their nature and purpose. The Foundation’s funds are as follows: A gift annuity is a contribution whereby the donors have contributed assets to the Foundation in exchange for the right to receive a fixed dollar annual annuity during their lifetime. Contribution revenue for gift annuities is recognized at the date the The operating fund includes service fees, grants, contributions and other revenues agreement is established, net of the liability recorded for the present value of the used to support the operating expenses of the Foundation. estimated future payments to be made to the respective donor. The present value of payments to be made to beneficiaries of gift annuities is calculated using the implicit rate of return. At December 31, 2005 and 2004, the implicit rate of return used to calculate the present value of gift annuity liabilities ranged from 4.2% 42 The board discretionary funds include contributions from donors who do not place to 8.7%, respectively. The gift annuity liability is revalued annually based upon HAWAI‘Iany restrictions COMMUNITY on their FOUNDATION gifts, with the intention that the payout be used for general actuarial tables. Permanently Restricted

Fair Value of Financial Instruments As a result of the revaluation of donor liabilities, the fair market value of certain gift Classification of Net Assets annuity assets was less than the related donor liabilities by $215,142 at December 31, Net assets whose use by the Foundation is limited by donor-imposed stipulations that 2004. These unrealized losses have been recorded as reductions in unrestricted net neither expire with the passage of time nor can be fulfilled or otherwise removed by assets. Future gains will be used to restore this deficiency in unrestricted net assets the actions of the Foundation. Under this definition, the Foundation does not have before any net appreciation above the fair market value of such annuities increases any net assets within this classification. temporarily restricted net assets. In 2005, the deficiency decreased by approximately $189,000 to $26,058 at December 31, 2005. Investments in common stock, U.S. Treasury and corporate bonds, cash management fundsFunctional and combined Allocation investment of Expenses funds are recorded at fair values as described above. Financial statements of not-for-profit organizations measure aggregate net assets For cash, notes receivable and other miscellaneous assets, the carrying amounts Unrestricted based on the absence or existence of donor-imposed restrictions. Three categories represent a reasonable estimate of the corresponding fair values. Funds held for other of net assets serve as the basis for the accompanying financial statements. These organizations and funds held as agency endowments are recorded at the fair values classes are labeled unrestricted, temporarily restricted and permanently restricted. of its corresponding assets. The gift annuity liability is carried at the present value At December 31, 2005 and 2004, all of the Foundation’s net assets were classified as of the total future payments to annuitants and, therefore, approximates fair value. either unrestricted or temporarily restricted. Brief definitions of the three net asset classes are presented below: The costs of providing the Foundation’s programs and other services have been summarized on a functional basis in the statement of revenues and expenses and Net assets which are free of donor-imposed restrictions; all revenues, expenses, gains changes in net assets. Accordingly, certain costs have been allocated among the and losses that are not changes in permanently or temporarily restricted net assets. programs and supporting services benefited. GAAP provides that if the governing body of an organization has unilateral power to Program services represent those costs associated with evaluating, recommending redirect the use of a donor’s contribution to another beneficiary, or similar purpose, and monitoring applications, grants and programs. Finance and administration such contributions must be classified as unrestricted net assets. The Foundation represents those costs associated with operational management, oversight of Temporarily Restricted has that ability known as variance power as promulgated in its By-Laws. Most of the Foundation’s policies and procedures, and management of the Foundation’s the Foundation’s Gift Instruments are executed with the explicit understanding investment portfolio. Charitable services and donor relations, including fundraising that the Foundation has such variance power. Accordingly, such gifts are classified costs of approximately $22,276 and $19,802 during the years ended December 31, as unrestricted in the Foundation’s financial statements. Although these assets are 2005 and 2004, respectively, represent those costs associated with communicating classified as unrestricted, the Foundation’s policies and procedures for administering and assisting the general public, along with potential and existing donors regarding its charitable funds are to always follow the donor’s intent as closely as possible. the most effective ways to meet their charitable giving goals.

Net assets that include contributions and pledges whose use by the Foundation is limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled or otherwise removed by the actions of the Foundation. This 43 classification includes income and appreciation which can be expended but for which Because It’s Our Home • 2006 ANNUAL REPORT restrictions have not yet been met. Foundation net assets that are temporarily restricted are comprised of the pooled income fund, special project funds and charitable gift annuities. Financial Statements and Notes (Cont.)

Income Taxes 3. Investments

2005 2004 Reclassifications Fair Value Fair Value COMBINED INVESTMENT FUNDS

The Foundation has received a determination from the Internal Revenue Service The fair value of the Foundation’s investments at December 31, 2005 and 2004 were that its stated purpose is tax-exempt under Section 501 (c)(3) of the Internal as follows: Revenue Code. 2. Contributions

Certain amounts in the 2004 financial statements have been reclassified to conform to the 2005 presentation. Such reclassifications have no impact on net assets or Common stock $ 115,297,687 $ 110,218,775 2005 2004 change in net assets as previously reported. U.S. Treasury and other government agencies 28,935,693 22,341,929 Corporate bonds 23,466,030 24,990,260 Mutual funds 18,580,729 5,488,313 Contributions for the years ended December 31, 2005 and 2004 consisted of the Cash management funds 8,465,120 22,053,898 following: Total combined investment funds 194,745,259 185,093,175 Cash management funds 35,218,256 28,703,747 Contributions to principal $ 10,582,033 $ 6,404,993 Common stocks 33,386,311 31,824,070 Contributions to income 4,697,130 4,603,700 U.S. Treasury bonds 9,971,455 8,465,319 $ 15,279,163 $ 11,008,693 Fixed income funds 6,676,491 5,759,015 Real property held for sale 1,208,562 1,938,662 $ 281,206,334 $ 261,783,988 Contributions to principal are gifts intended to be invested in perpetuity. Distributions from these gifts are disbursed as grants to support charitable endeavors as provided in the payout policy. In 2003, the Foundation’s investment balances and investment returns were understated by $1.3 million as a result of a computation error. The Foundation Contributions to income consist of gifts intended to be paid out in their entirety as corrected this error by adjusting investment balances and investment return in 2004. charitable grants and are available for use immediately. Fiscal 2003 balances were not restated as this adjustment was not material to the Contribution revenue from split-interest agreements (“SIA”) were $128,000 and financial statements. $15,000 for 2005 and 2004, respectively. As of December 31, 2005, there were Bank of Hawai‘i Investment Services Group (a division of Bank of Hawai‘i), First approximately $2,681,000 and $335,000 in unrestricted SIA assets and temporarily Hawaiian Bank, and Central Pacific Bank provide asset management services to the restricted assets, respectively. As of December 31, 2004, there were approximately Foundation as part of their fiduciary responsibilities as trustees. Asset management $2,812,000 and $163,000 in unrestricted SIA assets and temporarily restricted fees, consisting of all trustees, investment management and custodial fees, for the assets, respectively. There were approximately $2,707,000 and $3,028,000 in years ended December 31, 2005 and 2004 were $857,241 and $819,398, respectively, SIA liabilities at December 31, 2005 and 2004, respectively. and are recorded on a net basis with income from combined investment funds in the 44 accompanying statement of revenues and expenses and changes in net assets. HAWAI‘I COMMUNITY FOUNDATION 4. Property

AS LESSOR – 2005 2004

YEARS ENDING Rental expense for the years ended December 31, 2005 and 2004 was $320,487 and $302,150, respectively. Property at December 31, 2005 and 2004 consisted of the following: The Foundation receives rental income from leases on certain real property held for sale. Such leases expire at various dates through March 2011. Equipment $ 511,319 $ 489,883 Future minimum rental income is as follows: Furniture and fixtures 67,668 63,892 Web site development costs 442,782 442,782 Property used for program purposes 129,100 129,100 2006 $ 100,500 Leasehold improvements 21,134 21,134 2007 38,700 1,172,003 1,146,791 2008 38,700 Less: Accumulated depreciation 2009 42,500 and amortization 685,993 576,352 6.2010 Pension Plan 43,800 5. Leases 486,010 570,439 Thereafter 9,000 Artwork 92,460 92,460 $ 273,200 AS LESSEE – $ 578,470 $ 662,899 Rental income for the years ended December 31, 2005 and 2004 was $109,032 Depreciation and amortization expense was $134,200 and $150,983 for the years and $74,329, respectively. ended December 31, 2005 and 2004, respectively.

OPERATING CAPITAL 7. Assets Held in Trust by Others YEARS ENDING The Foundation has a defined contribution pension plan covering all employees. The Foundation has several noncancelable operating leases for office Contributions are based upon a percentage of the employees’ compensation and space and a capital lease for a telephone system, expiring at various dates through are funded currently. Contributions to the defined contribution pension plan were December 2012. – approximately $169,700 and $213,400 for the years ended December 31, 2005 and – 2004, respectively. The future minimum rental payments for operating and capital leases are as follows: – –

2006 $ 276,600 $ 13,500 The Foundation is a beneficiary of income from assets held in trust by other 2007 288,700 11,300 organizations. The three most significant of these trusts are the Robert E. Black 2008 289,600 Memorial Trust (the “Black Trust”), the Prisanlee Trust, and the Richard Smart 2009 291,100 Trust (the “Smart Trust”). The Foundation is an income beneficiary of 70% of 2010 291,900 the income of the Black Trust, a supporting organization of the type described Thereafter 601,900 in Section 509(a)(3) of the Internal Revenue Code. At December 31, 2005, the fair Total minimum lease payments $ 2,039,800 24,800 value of the Black Trust’s assets was approximately $51,660,200; the Foundation’s 70% interest was approximately $36,162,100. At December 31, 2004, the fair value 45 Less: Amount representing interest at 6.75% 1,400 Because It’s Our Home • 2006 ANNUAL REPORT Present value of net minimum lease payments $ 23,400 of the Black Trust’s assets was approximately $51,910,800; the Foundation’s 70% interest was approximately $36,337,500. Financial Statements and Notes (Cont.)

The Foundation is also an income beneficiary of 100% of the income of the State of Hawai‘i should the state choose to terminate this contract. Such amounts Prisanlee Trust, a supporting organization, 27% of which is distributed to specific are recorded as contract funds held for Tobacco Fund in the Statement of Assets, organizations. At December 31, 2005 and 2004, the fair value of the Prisanlee Trust’s Liabilities and Net Assets (Modified Cash Basis). assets was approximately $15,071,200 and $15,476,200, respectively. Pursuant to the contract with the state, it is the Foundation’s responsibility to TheCONSTITUENT Foundation is an income beneficiary of 20% of FUNDthe income of the 2005 Smart Trust.200 4 make grant disbursements based on general guidelines established by the state At December 31, 2005, the fair value of the Smart Trust’s assets was approximately and other parties. Accordingly, grant disbursements are accounted for as exchange $345,753,700; the Foundation’s 20% interest was approximately $69,150,700. At transactions and reflected as disbursements in the Statement of Revenues and December 31, 2004, the fair value of the Smart Trust’s assets was approximately 9.Expenses. Service and Administrative Fees $353,711,500; the Foundation’s 20% interest was approximately $70,742,300. At December 31, 2005 and 2004, the Foundation held amounts of $47,085,068 The income from perpetual trusts for 2005 and 2004 consisted of the following: and $43,828,593, respectively, related to the Tobacco Fund. As allowed under the agreement with the State of Hawai‘i, these amounts are invested in cash management funds, U.S. Treasury bonds, and domestic and international equities. Robert E. Black Memorial Trust Black, Robert E. $ 1,770,556 $ 1,775,545 Prisanlee Trust Prisanlee 724,398 694,872– Mary Wentworth Deering Trust Leahi 71,056 64,196 Thz Fo Farm Trust Farm, Thz Fo 17,240 14,488 The Foundation’s operating fund receives fees from its board discretionary, F.S. and Mary Lyman Trust Hopper 16,516 14,733 designated, donor advised and field of interest funds and from other2005 foundations 200 4 Frank & Katherine Woodford for performing certain philanthropic service and administrative functions. Memorial Trust Hopper 3,347 3,984 Service and administrative fees for the years ended December 31, 2005 and 2004 8.Wodehouse Tobacco Trust Prevention andHawaii Control Children’s Trust Trust Fund 190,886 259,141 presented in the accompanying statement of revenues and expenses and changes Kilgo Charitable Trust Discretionary General Fund 2,056 in net assets exclude fees from its board discretionary, designated, donor advised $ 2,796,055 $ 2,826,959 and field of interest funds, as follows: The Foundation’s interests in these assets are not included in the accompanying

modified cash basis financial statements. Total service and administrative fees $ 3,909,907 $ 3,613,311 Less: Fees received from board discretionary, designated, donor advised and field of interest funds 2,796,456 2,635,446 Service and administrative fees $ 1,113,451 $ 977,865 During the year ended December 31, 2000, the Foundation entered into a contract with the State of Hawai‘i, Department of Health, to be the primary administrator for the Tobacco Prevention and Control Trust Fund (the “Tobacco Fund”). This task involves investment management of funds held and the selecting and supporting of programmatic initiatives aimed at delivering direct services associated with tobacco prevention and control. Amounts held by the Foundation are refundable to the 46 HAWAI‘I COMMUNITY FOUNDATION 10. Net Assets

2005 2004 11. Funds Held As Agency Endowments UNRESTRICTED NET ASSETS

Transfers from other funds represent reimbursements for certain payments made by the operating fund on behalf of the Foundation’s component funds. At December 31, 2005 and 2004, unrestricted and temporarily restricted net assets consisted of the following: FUNDS HELD AS AGENCY ENDOWMENTS, JANUARY 1, 2004 TEMPORARILY RESTRICTED NET ASSETS At December 31, 2005 and 2004, the Foundation held various agency endowment Operating fund $ 2,642,226 $ 2,507,185 funds with a combined value of $1,366,858 and $1,067,190, respectively. The following Board discretionary funds 15,146,588 14,992,135 table summarizes the activity in such funds for the years ended December 31, 2005 Designated, donor advised and field and 2004: of interest funds 212,295,253 197,068,460 Total unrestricted net assets 230,084,067 214,567,780 FUNDS HELD AS AGENCY ENDOWMENTS, $ 900,995 DECEMBER 31, 2004 Amounts raised 166,869 Pooled income fund 1,482,773 1,509,622 Investment income 46,481 Gift annuities 335,4942005 162,5032004 Net appreciation of investments 37,928 REVENUESSpecial projects fund 1,090,769 994,832 Grants (30,922) Total temporarily restricted net assets 2,909,036 2,666,957 Other (54,161) Total net assets $ 232,993,103 $ 217,234,737

FUNDS HELD AS AGENCY ENDOWMENTS, The following table summarizes the activity in the operating fund for the years ended 1,067,190 DECEMBER 31, 2005 December 31, 2005 and 2004: Amounts raised 255,341 EXPENSES Investment income 58,098 12.Net Related appreciation Parties of investments 394 Service and administrative fees $ 3,909,907 $ 3,613,311 Grants (33,726) Interest and dividends 37,840 17,044 Other 19,561 Contributions 111,037 72,000 Other 119,659 17,396 Total revenues 4,178,443 3,719,751 $ 1,366,858 TRANSFER FROM OTHER FUNDS Finance and administration 1,803,069 1,599,561 Program services 1,578,822 1,567,489 Charitable services and donor relations 886,573 871,486 The Foundation’s board is composed of prominent business and civic leaders in the Total expenses 4,268,464 4,038,536 State of Hawai‘i. Certain of these business leaders have past and present affiliations Decrease in net assets with the three financial institutions that provide trustee services for the Foundation before transfers from other funds (90,021) (318,785) (see Note 3). Additionally, certain board members or officers may have affiliations with other nonprofit organizations that may be the recipient of Foundation grants. 225,062 156,107 The Foundation’s conflict of interest policies require that persons in potential conflict 47 Total change in net assets 135,041 (162,678) situations abstain from participating Because in decision-making It’s Our Home processes. • 2006 ANNUAL REPORT Net assets Beginning of year 2,507,185 2,669,863 End of year $ 2,642,226 $ 2,507,185 Hawai‘i Community Foundation Staff

Robert Abad Jocelyn Romero Bridget Holthus Ryan McCarthy Deborah J. Rice Licia Trotter Sr. Accountant Demirbag Private Foundation Program Assistant Foundation Officer, Executive Assistant to Foundation Officer, Services Manager Kaua‘i the President & CEO Lori Abe Maui County Mariko Miho Vice President, Cori Joseph Vice President, Lisa Rodrigues Juliette Tulang Public Relations & Jaedine Ehia Donor Services Officer Marketing & Grants Manager, Foundation Associate, Communications Scholarship Associate Donor Services Private Foundation Hawai‘i Island Cheryl Kaneshiro Gigi Cairel Roella Foronda Sr. Program Assistant Pi‘ikea Miller Marcia Shimokawa Christine van Sr. Program Officer, Program Associate, Sr. Program Officer Sr. Foundation Bergeijk Government Programs Tobacco Teri-Ann Kauina Assistant, Kaua‘i Vice President, Program Associate, Shahrzad Nouraini Programs Jessica Calilao Vickie Frogley Crystal Meth Initiative Project Assistant, Janet Smith Sr. Accountant Administrative Crystal Meth Initiative Grants Manager Kimberly Vierra Assistant, Hawai‘i Dennis Kondo Communications Evie Carranza Island Sr. Program Officer Clarysse Kami Kalei Stern Officer Executive Assistant, Nunokawa Director of General Counsel John “Keoni” Tess Dela Rama Program Director, Donor Services Brooke Wilson & Operations Fujitani Front Office Crystal Meth Initiative Executive Assistant, Program Officer, Administrator Kelvin H. Taketa Public Relations Diane U. Chadwick Culture & Arts, Human Judy Oliveira President & Chief & Communications Foundation Officer, Services Katharine P. Lloyd Sr. Scholarship Officer Executive Officer Hawai‘i Island General Counsel Christel Wuerfel Ginger Gannon & Vice President, Anita Owens Lorraine Sato Executive Assistant, Janet Cutting Sr. Foundation Operations Administrative Tamaribuchi Marketing & Donor Funds Administrative Assistant, Maui County Assistant, Private Foundation Officer Services Officer Amy Luersen Foundation Kaleilani Grant Sr. Program Officer Juli Torigoe Lia Young L. Chips DaMate Scholarship Assistant Luis Pascual, Jr. Director of Finance Accountant, Payroll Executive Assistant, Betty Macabio Systems Administrator & Administration Administrator Programs Ken Hasegawa Administrative Scholarship Associate Assistant, Funds Liza Yucoco Donor Services Assistant

48 HAWAI‘I COMMUNITY FOUNDATION Stewards of the Community

Hawai‘i Community Foundation’s capacity to serve the community is tied directly to its ability to preserve and enhance the financial assets that it stewards. The Board of Governors has developed investment policies and guidelines that provide for long-term growth and prudent asset management in order to ensure that the needs of the community can continue to be met. The safekeeping and actual investment management of assets held in trust is done by one of the Foundation’s corporate trustee partners: Bank of Hawai‘i, First Hawaiian Bank and Central Pacific Bank. The Foundation also has established relationships with other investment entities to manage its corporate assets. A committee composed of Board Members and assisted by staff and an independent investment monitor oversees all investment activities of the Foundation.