2006 Year-In-Review: RSF and Social Finance

Home , Associative economics, The Christian Community, Triodos Bank

MARCH 31, 2007 RSF Quarterly INNOVATIONS IN SOCIAL FINANCE

RSF REACHES $100M IN 2006! 2006 Year-In-Review: At the end of 2006, RSF’s consolidated assets totaled more than $100 million. This is a momentous event for our RSF and Social Finance organization considering we only had $6,000 in 1984. n 1984, Rudolf Steiner Foundation philanthropy, and few were blessed with We wish to thank all our supporters made its first loan to the Pine Hill the resources necessary to participate for joining our efforts in advancing our IWaldorf School to rebuild a main in giving. The opportunity to direct re- vision of living in a world where financial building devastated by fire. Over the sources used to develop and manufacture transactions are based on relationships, years, RSF has been central to the as well as purchase products and services respect, and social and environmental development of the U.S. Waldorf move- toward social benefit has empowered responsibility. ment and other organizations related to individuals worldwide with a powerful the work of Rudolf Steiner. As the 21st tool to make a significant and collective century approached, there was a clear difference. UPCOMING EVENTS calling for RSF to broaden the scope of The Center for the Development of organizations it could serve as there are 04.21.07–04.22.07 Social Finance, incubated at RSF and so many compatible with RSF’s mission. Green Festival founded by former RSF CFO Rupert Ay- Always attuned to the needs of the times Chicago, IL ton, defines social finance as an approach through deep listening, it became evident to managing money that delivers a social 04.26.07–04.29.07 that the many crucial issues confronting dividend and an economic return. This SVN’s Annual Member Gathering our people and planet were related to includes community investing, micro- Kennebunkport, ME consumerism. It was then that RSF began lending, sustainable business and social 04.28.07 to expand its support of social enterprises enterprise lending, philanthropic grant- Sustainable Energy Summit 2007: to advance a shift in producer-consumer making and program-related investments. Community Action for a Clean behavior toward social benefit, and it was Energy Future during this transition that RSF’s identity Much of what has become part of the Northampton, MA as a social finance organization was emerging field of social finance was forged. indicated in Rudolf Steiner’s lectures on 05.22.07–05.24.07 economics in the early 20th century. The Investors’ Circle Spring Conference: Problems attending sustainability can kinds of transactions (purchase, loan, Patient Capital for a Sustainable be attributed in good part to approaches and gift) and their integral importance Future to production and consumerism, and a in a healthy economy was only a part of San Francisco, CA general lack of consciousness about the his approach to associative economics. impact of consumption. Social enter- 05.31.07–06.02.07 He saw that an associative model would prises in many industries are emerging: BALLE’s 5th Annual International foster the development of community Conference food, financial services, non-profits, ener- through an altruistic rather than egocen- Berkeley, CA gy, and health care among others. These tric view of economics. enterprises are offering human beings a 06.20.07–06.22.07 new path—a way to leverage purchasing RSF is involved in all aspects of social fi- The Organic Summit: Renewing the and financial resources for social benefit. nance and listens deeply to its clients and Organic Conversation Boulder, CO Until somewhat recently, conventional others active in the field in a continuing wisdom limited social “investing” to effort to meet the needs of our time.

Inspired by the work of Rudolf Steiner President’s Letter

philanthropic assets entrusted to RSF is maximized whether invested in our in-house socially responsible investment portfolios (Charitable Asset Manage- ment Program), or granted to worthwhile charitable organizations. Looking forward to 2007 and beyond, we are committed to continued growth in assets in an effort to meet the burgeoning demand for social enterprise loans and charitable grants. You have read about many of the amazing companies and projects we supported in 2006 in recent newsletters and e-news, and will learn of several more in the pages that follow. I want to thank each and every one of you for making our work possible and Power of Giving Dear Clients and Friends, for living your values. If we direct all our resources together toward the change we As I reflect on 2006, I am reminded of want to see in the world, our collective RSF Staff Donates $23,000! how I feel at the beginning of each new efforts will bring promise and hope to year: appreciative of leading an organiza- future generations. tion that, through the efforts of a tireless, During the giving season last December, dedicated staff, sets forth to make the Enjoy our Year-in-Review. we at RSF, twenty-three in all, were world a bit better day after day. I am also given the opportunity to each recom- full of anticipation knowing there is so mend $1,000 to charitable organizations much more to do to imbue this genera- With Warm Regards, of our choice. We were delighted and tion and the next with a sense of hope surprised when we heard the news as this and passion for the possibility of a peace- was different from previous years. Made ful, joyful, and consciousness-filled world. possible by a long-time generous donor I am pleased to report that RSF reached Mark A. Finser and friend, what we received was an a new plateau of social impact and per- President and CEO exceptional gift. formance last year. Investment received Kerri Kleven, manager of Philanthropic into our socially beneficial loan program Services, says, “It’s not everyday that as a approached $16 million, nearly four staff member one has the opportunity to times our average over the last several recommend where money is given away. years. Loans made to a variety of initia- This gift money provided a chance for all tives and social enterprises totaled over of us to experience the power of giving, $18 million, close to three times our and gave each one of us the opportunity average over the recent past. Growth in to support initiatives most important to new philanthropic assets was consider- us. Overall, I think the intention behind able as well. RSF staff has worked hard this gift was extraordinarily meaningful.” to ensure that the social impact of all

2 New Board Members 2006

Sara Ellis Conant is a senior consultant Commerce’s Entrepreneur of the Year with Deloitte Consulting and specializes in 1998. He is president of the Waldorf in assisting clients to identify their core Alliance and has served on the board values and make them operational. She and chaired the Finance Committee of also has worked extensively with social- the Shining Mountain Waldorf School purpose entrepreneurs. Previously, she for fourteen years (his three children served as development director for RSF. are Waldorf graduates). He and his wife, She is also founder and board member of Terry, are avid organic gardeners on their Young Women Social Entrepreneurs, a ten-acre farm in Boulder County. non-profi t organization that promotes the Green Oaks Fund success and development of hundreds of Jessica Crolick Rolph is a founding part- supports youth women in San Francisco, Portland, New ner and COO of HAPPYBABY, a start- education programs at Pie Ranch. York, and Houston. She received a BA up company that produces and markets in Sociology and an MBA from Stanford fresh-frozen all-organic baby and toddler University. meals. Previously Ms. Rolph worked at Whole Foods in national purchasing and Mark Retzloff is the co-founder, SPINS, the leading provider of informa- president, chief organic offi cer, and tion to the natural products industry. Power of Giving board member for Aurora Organic Dairy, She also worked with Lance Armstrong’s an organic company which initiated business agent to develop the concept for RSF Staff Donates $23,000! production in 2004. In 1969, while a the Lance Armstrong branded food line. student at the University of Michigan, Based on Newman’s Own business model, he co-founded Eden Foods. Mr. Retzloff all proceeds were to benefi t the Lance Kelley Buhles, also with Philanthropic is also a co-founder of Horizon Organic Armstrong Foundation. She received her Services, describes the gift as “a wonder- Dairy, the United States’ leading organic MBA from the Johnson School at Cor- ful experience.” At a lunch meeting, con- dairy. He has received numerous business nell University in 2004, and was awarded vened by Kelley, we talked about how we awards, including the Organic Trade a full MBA scholarship, the Park Leader- could maximize our giving. Earnest and Association’s Organic Leadership Award ship Fellowship, for leadership in socially lively discussion followed, resulting in for Outstanding Individual Achievement responsible business. a decision to form a giving circle where in 2002 and the Boulder Chamber of each of us pooled 20% of our allocation to two organizations collaboratively chosen by the group. The rest we would New Director of Lending Program choose to recommend on our own. Our giving circle chose the Green Oaks Fund Esther Park joined RSF in 2005. She became the director of and an initiative of the Ella Baker Center Lending Program in 2007 to oversee the growth of the organiza- for Human Rights, Reclaim the Future.* tion’s lending activities. The fund, which reached $35.6 million We thank our donor for this unforget- at the end of 2006, provides debt fi nancing to non-profi t organi- table experience! zations and for-profi t social enterprises in the area of education, community renewal, fair trade, sustainable food systems, independent media, and renewable energy. Previously, Esther was a *For a complete list of all the organizations to senior consultant for ShoreBank Advisory Services where she which staff donated, please visit our website at provided strategic and fi nancial planning advice for Community www.rsfsocialfi nance.org. Development Financial Institutions (CDFIs), particularly small business and affordable housing loan funds. She also trained lenders internationally in small business lending practices, and underwrote Program Related Investments (PRIs) for private foundation clients. Esther received her MPP from University of Chicago and her undergraduate degree in Social Welfare from the University of California at Berkeley. She lives in San Francisco with her husband Greg Morishige and daughter Evangeline.

3 Investing and Lending Highlights

Investing • New Investment Funds: 114 totaling $15.5M compared to $4M in 2005 and “Thank you for a 10-year average of $5M. 19 of 114 are between $50K to $300K. • New IRA Investments: $1.1M in IRA dollars compared to $181K in 2005. your dedication to • Total Investor Funds: 824 compared to 761 in 2005. 127 of 824 are between an effective moral $50K to $300K. Lending imagination.” • Loans Made: $18.5M compared to $4M in 2005 and a 10-year average of $5.9M. • Social Enterprise Loans: 5 totaling $7.5M. – Warren Lee Cohen, • Loans Funded: IceStone, Independent Press Association, Meadowbrook Waldorf Investor since 1996 School, Numi Organic Tea, Otter Creek, Rudolf Steiner College, Sonoma Ashram, Suncoast Waldorf School, Westside Waldorf School, World of Good. • Loan Participations: Century Housing, Ecologic Finance, Permaculture Credit Union. • Borrower Funds: 82 compared to 75 in 2005. • Ending Loan Portfolio Balance: $35.6M compared to $31.5M in 2005.

Healing the Home

IceStone (Borrower)

According to the author of Home Safe Thanks to a guarantee community that Home, Debra Lynn Dadd, our greatest formed around IceStone, RSF was able to exposure to toxins is in our homes and fi nance this innovative New York-based comes from products we use on a daily company’s next growth phase. basis. “Some of the worst are our paints, IceStone’s environmental impact carpets, and furniture,” she says. “They’re includes replacing petrochemical and large entities so we’re exposed to many polyester resin based materials which chemicals at the same time.”* Fortu- produces harmful volatile organic “RSF has enabled IceStone to buy equipment nately for many of today’s consumers, an compounds (VOC’s), a major source of and provide working capital to expand our increasing number of companies, both indoor air pollution. Another is reducing capacities to meet growing market demand. builders and suppliers, are entering the the dependence on imported mined natu- To receive this support from a fi nancial “green building” fi eld. ral stone, 85% of which is imported from service enterprise that is onboard with our These companies use sustainable and other countries and requires a tremen- long term social, environmental, and fi nancial recycled materials, and develop ways to dous amount of fossil fuel to reach U.S. goals is an honor.” reduce energy and water consumption. customers. Last but not least, IceStone – Peter Strugatz, Co-CEO of IceStone From dust-free plasters to bamboo fl oor- extracted 1.2 million pounds of glass from ing to roof gardens, green builders also the waste stream in 2005 and expects to strive to create healthy living spaces us- remove more each year. ing non-toxic alternatives to convention- For more information about IceStone, al building products. One such company please visit their website at is IceStone, which makes durable surfaces www.icestone.biz. such as countertops, fl oors, and wall cov- erings from recycled glass and concrete. *Thorne, Lynn. 2006. “Color Me Greeniful,” The Wash- ington Post (March 3). http://www.washingtonpost.com/ wp-dyn/content/article/2006/02/24/AR2006022401461.

©ICESTONE html. 4 Healing the Body & Spirit

Sonoma Ashram (Borrower)

Meditation and yoga are becoming more California. In 2002, the Ashram had to accepted as effective methods for heal- relocate from its rental property. After ing and personal growth after decades six months of searching, the current site of being on the fringes of mainstream was identified and purchased. Thanks to Western medicine and thought. Research RSF investors, RSF was able to refinance institutes from all over the country have Sonoma Ashram’s debt on more favor- published papers on the benefits of these able terms in 2006. practices for relieving stress and improv- In addition to its programs in Sonoma, ing one’s health and well-being. the Ashram created an extension in Sonoma Ashram is a recent borrower of India. This branch created Bal Ashram RSF. Its primary mission is to provide a (Children’s Ashram) to educate and pro- spiritual environment with teachings, vide medical supplies, food, and shelter yoga, and meditation but in a non-com- for local children either orphaned or mercial way. The Ashram was established from broken families. in 1990 by Baba Harihar Ramji while For more information, please visit he was living at Sky Farm in Sonoma, www.aghor.org.

Healing the Planet

David Brower Center (Borrower)

Thanks to RSF investors, RSF will The building honors the late Berkeley finance a portion of construction costs for conservationist David R. Brower, who the David Brower Center, a multi-tenant was the first executive director of the non-profit center and new home for the Sierra Club, then founder of Friends of environmental and progressive communi- the Earth, League of Conservation ties in Berkeley, California.* The Center Voters, and Earth Island Institute. will be an educational resource showcas- Executive Director Amy Tobin says, ing green architecture features: recycled “With key financing from RSF, the non-toxic materials, natural daylighting Brower Center is finally poised to make and ventilation, light-redirecting glass, a seven-year dream into a reality. By high-performance building envelope, and creating an asset for the community, this solar panels. partnership will have a direct impact on This LEED Platinum-rated building, the work of activists and social change scheduled to break ground in April 2007 for many years to come.” and open in January 2009, will house a For more information, or to learn more theater, art gallery, restaurant, meeting about their ongoing capital campaign, rooms, collaborative common spaces, and please visit www.browercenter.org. To flexible offices. Under one photovoltaic become an RSF investor, please contact roof, activists, business people, students, Mark Herrera at 415.561.6161. and visitors from around the world will meet, eat, exchange ideas, and work * This loan was approved in 2006 but funding is slated toward a just and ecologically sustainable for 2007 and 2008. The Brower Center also received a grant from the MK Gratitude Fund, a donor advised society. fund of RSF in 2006. A RENDERING OF THE FUTURE BUILDING COURTESY OF DAVID BROWER CENTER BROWER OF DAVID THE FUTURE BUILDING COURTESY A RENDERING OF 5 Philanthropic Services Highlights

RSF’s Philanthropic Services includes administration of donor advised funds, fi eld of interest funds, fi scal sponsorships, planned giving, and the Charitable Asset Manage- ment Program. Here are the programs’ highlights in 2006: Jewish and Arab • Total Grants Made: $10.3M compared to $5.8M in 2005. students plant an olive tree in memory of • Total # of Grants: 506 compared to 276 in 2005. four Arabs whose lives • Kerri Kleven was appointed manager of Philanthropic Services. were taken violently in Shefaram. • Philanthropic Services team restructured RSF’s Fiscal Sponsorship Program and led a donor awareness campaign regarding H.R.4, a signifi cant change in the tax code affecting donor advised funds. Promoting Peace in the Middle East Charitable Asset Management Program (RSF’s answer to investing philanthropic funds in a socially responsible manner) Salaam Shalom Educational Foundation (Grant Recipient) • Program Assets: $31.8M compared to $24.8M in 2005. The Salaam Shalom Educational Foun- • Pioneering investments in microfi nance, clean technology, health & dation (SSEF) was started by a group of wellness, development fi nance, nonprofi t fi nance, and social enterprise. Americans during the Hezbollah-Israeli confl ict to pave a path to peace by imple- menting peace education programs in the Middle East. Despite national boundaries of suspicion and animosity, a historic and miraculous relationship is being Transforming Money Collaborative developed between educators from Israel and educators from Palestinian from the Highlights occupied West Bank. The fi rst organization to support this work was RSF. RSF helped the Salaam RSF’s Transforming Money Collaborative (TMC) is a network of over eighty organiza- Shalom Educational Foundation support tional leaders focusing on developing a more sustainable, fair, and inclusive economy. a Waldorf kindergarten teacher training Here are the program highlights in 2006: for Palestinian teachers who are seeking • TMC launched its website and blog to share news, announcements, and articles to fi nd a way to bring this healing and from the TMC network, including the Sequoia Principles and the Fund Comple- nurturing classroom environment to mentary Currencies. For resources on nearly 400 links to organizations working Palestinian children who are living in the towards economic justice, philanthropy, social fi nance, sustainable development, midst of so much confl ict in this volatile complementary currencies, community building, and many other topics, please visit region. Teachers from the occupied West www.reimaginemoney.org. For articles on money, please visit www.reimaginemoney. Bank are escorted through the separation blogspot.com. barriers into Israel for training by Kobi Tuch, SSEF’s full time peace education • TMC convened a gathering entitled An Exploratory Conversation on Money, Race, director. and Class. The day-long conversation was recorded by the National Radio Project and touched on personal and profound perspectives on this topic, which is rarely According to Shepha Vainstein, presi- spoken about in society today. An edited transcript will be available by mid-2007. dent of SSEF, “The training has become so successful that there are already plans • One of RSF’s partners in the TMC, John Bloom, wrote an article, “There is No to bring in a new group of Palestinian Wealth but Life.” It appeared in the January/February 2007 issue of Resurgence, which teachers this upcoming school year and he guest edited. To read the article, please visit www.resurgence.org/2007/bloom240. continue this group for another year. htm. Additionally, there is interest by Palestin- ian teachers to study Waldorf educational methods for the grade school.”

6 Public Media is a National Treasure

Democracy Now! (Grant Recipient)

Over the years, many FCC rules designed Constitution, because journalists are to foster production of independent news supposed to be the check and balance on have been weakened so that today only a government. We’re supposed to be hold- few rules remain that prevent any person ing those in power accountable. We’re or company from owning all of the media not supposed to be their megaphone. outlets in a small- or medium-sized city, or That’s what the corporate media have from owning media outlets that blanket become...It’s journalism’s role to get to the country. Currently in the U.S., the truth.”* only about ten vast multinational firms “The support RSF has given to Democ- dominate our media system, radically racy Now! has had a profound effect on narrowing the information available to the work we do in promoting indepen- Promoting Peace in the Middle East the public. The RSF community strongly dent media and activating individuals to believes that a free and independent press defend free speech and protect the public Salaam Shalom Educational Foundation (Grant Recipient) is urgently needed to create a more just media outlets in their communities,” says and sustainable democracy. Karen Renucci, development director “Without the active support of RSF, we Democracy Now!, supported by a donor of Democracy Now! “This support has could never have brought this project advised fund at RSF, promotes a more come at an especially important time, a into being,” she adds. “RSF provides a sustainable democracy by providing the time when the cable industry along with way for donors to give easily and confi- public with perspectives rarely heard in telco conglomerates have poured millions dently. They also introduced us to people the U.S. corporate-sponsored media. into lobbying efforts...which can virtually who might be interested in supporting It is a national, daily, and independent eliminate public access channels. With this work, and these contacts were very news program airing on over 500 radio the grant from RSF, Democracy Now! important to us. We believe that these and television stations. The program has has taken to the road to build support for projects are the beginning of a very garnered dozens of awards for its ground- desperately needed free speech outlets important aspect of on-going peace work breaking work in radio and print journal- such as cable TV public access channels, in the region, and we are grateful for the ism. community radio, low power FM, and the continuing help of RSF.” Internet.” Among the illustrious journalists of SSEF is also sponsoring an intensive Democracy Now! is host and executive For more information or to donate, please four-year high school peace leadership producer, Amy Goodman. She began visit their website at www.democracynow. program in the Galilee for Jewish her career in community radio in 1985 org or contact Karen Ranucci, develop- students from Harduf Waldorf High and has traveled to East Timor to cover ment director, at karen@democracynow. School who are paired with Arab and witness first-hand military atrocities, org. students from Shefaram High School. and to Nigeria to report on human rights Students participate in conflict resolution *McConnell, Carolyn. 2005. “Going to Where the violations by a multinational oil company. Silence Is: Interview with Amy Goodman,” Yes! training, drama classes, and other coop- She has also traveled to Peru and Jamaica. Magazine (Spring). http://www.yesmagazine.org/article. erative ventures. After graduation from asp?ID=1183. high school, Jewish students will receive Asked by Yes! Magazine how she defines a one-year deferment from joining the the proper role of journalism, Amy Israeli army so they can work with their Goodman replied, “Journalism is the only fellow Arab high school graduates on a profession explicitly protected by the U.S. community development project. For more information about Salaam Shalom Educational Foundation, please “It’s journalism’s role to get to the truth. Those call 818.707.2164 or email in power are an increasingly small elite...Even if [email protected]. all those in power are in agreement, reporters should ask, is this true what they’re saying?” – Amy Goodman, Host and Executive Director of Democracy Now!*

7 New Initiatives Fund Grantees

RSF’s New Initiatives Fund supports and recognizes the creation of new initiatives that have the capacity for growth and eventual ﬁnancial independence. These New Initiatives Fund grants are only possible because of gifts to RSF. To contribute, please see below. The following projects received seed grants in 2006.

1 2 3 4 PHOTO BY ROD NORTHCUTT BY ROD PHOTO PHOTO COURTESY OF RUGMARK FOUNDATION USA FOUNDATION OF RUGMARK COURTESY PHOTO

5 6 7 8 PHOTO BY JASON STEINBERG COURTESY WAGES BY JASON STEINBERG COURTESY PHOTO PHOTO BY SHARI YOUNG KUCHENBECKER YOUNG BY SHARI PHOTO

1 Homeward Bound of Marin is working on develop- 4 Rugmark Foundation works to end child labor in Shown on the RSF website: ing a Trauma Treatment program for homeless South Asia’s handmade carpet industry which has Project TUPA, created by Free Radio Berkeley, children and their families to address the root one of the highest incidences of child exploitation. a project of Global Exchange, empowers indig- causes of mental health problems that homeless Their new three-year consumer awareness cam- enous, campesino, and barrio communities in the children are likely to experience. paign aims to raise awareness about human rights Americas with the tools, technology, knowledge, in manufacturing, to increase sales of Rugmark- 2 Jennifer Horning (middle) at the inaugural public and skills to build and maintain their own com- certified rugs, and to expand availability by growing exhibition of Ethical Metalsmith’s Golden Opportu- munity broadcast stations. Funds will be used to the importer and retail base. nity which raises awareness among the metal arts support two sessions of a model micropower community and the public of the environmental 5 San Diego Environmental Foundation’s program broadcast training program for 20-30 low and social costs of metal mining. Natural History of Energy is a mobile classroom income and at-risk high school students in the that will bring the EcoCenter’s alternative energy San Francisco/Bay Area. 3 People’s Grocery has a new project called Grow- expertise into sixth-grade science and technology ing Food for Jobs and Justice Program. This pro- Indigenous Permaculture Program helps the classes throughout the region. gram will develop a social enterprise model that Lakota community in Pine Ridge, SD, build a self- enables low-income residents of West Oakland to 6 Women’s Action to Gain Economic Security’s sustaining organic farm, improving land health, have access to local organic produce at affordable project, Eco-Friendly Housecleaning Cooperative human health, and access to local food. The goal prices, and youth to have meaningful and stable Start-up, creates well-paid, dignified jobs for low- of the community is to start a community- jobs. income Latina women by developing and launching supported agriculture program (CSA) by 2008. a new eco-friendly housecleaning cooperative in The Carrot Project, a project of Third Sector the San Francisco/Bay Area. New England, seeks to fill financing gaps by 7 World of Good Development Organization’s Fair directing financial resources toward small- and DONATE NOW! Trade Pricing Calculator is an innovative free-ware medium- sized sustainable farm enterprises, web technology that creates a new framework particularly those with limited resources. for the fair pricing of hand-made goods. This tool Please support RSF, our ﬁscal Women’s Survival Center of Oakland County – provides a measurable and auditable floor pricing sponsored projects, and grant Maggie’s Rising Stars Child Care Center’s family model that can be replicated globally and has the recipients: micro-enterprise gardening project teaches potential to lift thousands of artisans out of pov- students and families how to plant and tend erty. Here, Board Chair Priya Haji demonstrates • Online through gardens for personal consumption, and how the wage guide for artisans in Kenya. www.networkforgood.org to package and sell produce to increase their • Checks, stocks, wire transfers, or 8 Youth Philanthropy Worldwide is expanding their income. During the project, both parents and bequests accepted High School Global Action Clubs project, a new students will learn the basics of budgeting, initiative launched in June 2006 that focuses on salesmanship, marketing, and managing a small Please contact Kelley Buhles at global issues and effective philanthropy for young business. 415.561.6152 for more information. people in the U.S.

8 Grant Recipients

TOTAL GRANTS MADE IN 2006: Cross Cultural Journeys Foundation League of Young Voters $10.3 MILLION Current Innovations Lemniscate Arts David Brower Center Linda Goodwin for Integrated Life Services ACORN Institute David Darcy for Waldorf Education Outreach Link Media Acumen Fund Democracy Now! Lionheart Foundation Adopt-A-Native-Elder Detroit Waldorf School Local Harvest Alliance for Childhood Diversityworks Maria M. Gonzales for Race, Class, and Money Alternatives in Action Doctors Without Borders Dialogues American Council on Renewable Energy Dr. Don Edward Beck for Spiral Dynamics Research Marin Community Foundation for New Leadership American Farmland Trust Dreamweather Foundation Scholarship Fund American Friends Service Committee E.F. Schumacher Society Marion Institute American Himalayan Foundation Earth Island Institute—Rooted in Community Matthew Temple for Network M American Society for Technion Earth Island Institute—Wild Futures Project Michael Fields Agricultural Institute AnewAmerica Community Corporation Earth Island Institute—Women’s Global Green Michael Henkle for Philanthropic Research Anna Lappé for Grub Campaign Action Network Microcredit Enterprises Fund Annalisa Hodgkins for Aspen Grove Project Earth Island Institute—Fiji Organic Project Minnesota Waldorf School Anthroposophical Society in America (ASA) Earth Ways Foundation Navdanya Appalachian Coalition for Just and Sustainable Earthfire Institute Netzwerk Sudost e.V. Communities Ecole Caminarem New York Foundation for the Arts Arawaka Ecology Center Ojai Foundation Arcturus Rudolf Steiner Education Program Elizabeth A. Worth for Pedagogical Stories On The Move for V.O.I.C.E.S. Arizona Sonora Desert Museum Ella Baker Center for Human Rights Organic Center for Education Art Everywhere Essential Information Organic Farming Research Foundation Arts Engine Eurythmy Spring Valley Pacific Zen Institute ASA Prison Outreach Family Farm Defenders People’s Grocery Association for a Healing Education Farm Labor Research Project—Farm Labor Permacultura America Latina Association of Waldorf Schools of North America Organizing Committee for NC Guest Worker Pesticide Action Network Austin Eurythmy Ensemble Organizing Philadelphia Community Farm Austin Waldorf School Food Project for Project BLAST Philanthropic Ventures Foundation—South Business Alliance for Local Living Economies Forum on Cross-Cultural Inspiration Central Farmers Bay Area Center for Waldorf Teacher Training Foundation for Media Education Pine Hill Waldorf School Bead for Life Four Winds School Pleasant Ridge Waldorf School Biodynamic Farming and Gardening Association Free a Child Polaris Institute USA Blue Mountain Clinic Freunde der Erziehungskunst Rudolf Steiners Portland Waldorf School Bravewell Collaborative Friends of Creation Spirituality Positive Futures Network for Yes! Magazine California Association of Food Banks Garden Project Poudre Hospital Foundation for Healing Calvert Foundation Global Exchange—Friends of the Landless Gardens Fund Camphill Communities California Workers Movement Power of Hope Camphill Foundation Global Exchange—Project Tupa Prairie Hill Waldorf School Camphill Village Kimberton Hills Global Fund for Women Pro Mujer Camphill Village Minnesota Global Greengrants Progressive America Fund CARE Grameen Shikkha Raphael Association Cedar Springs Waldorf School Green Belt Movement International Research Institute for Waldorf Education Center for Anthroposophy Research and Renewal Greenpeace Fund Rita Marsh for Aspen Grove Project Center for Ecoliteracy Greenworker Cooperatives River Song Waldorf School Center for the Art of Living in America Guide Dogs of America Riverhead Foundation Center for the Development of Social Finance Hartsbrook School Robert Karp for Agricultural Domestic Fair Trade Charleston Research Institute for Cardiodron Hawthorn Foundation for the Healing Arts Research Pilot Study Hawthorne Valley Association Roca Chicago Waldorf School Health Care Without Harm Rocky Mountain Wildlife Conservation Center Christian Community—Taconic Heron Dance—Soul Flares Rudolf Steiner Branch of the Anthroposophical Christian Community Chicago Historic Third Ward Association for Milwaukee Society Cincinnati Waldorf School Public Market Rudolf Steiner Centre City of Lakes Waldorf School Homeward Bound of Marin Rudolf Steiner College Clearvision Institute IC Foundation Rudolf Steiner Fellowship Foundation Coalition of Immokalee Workers Independent Media Institute for AlterNet Rudolf Steiner Institute Collective Heritage Institute—Bioneers Institut fur Stromungswissenschaften Rudolf Steiner School of Ann Arbor Community Environmental Legal Defense Fund Institute for Environmental Entrepreneurship Rugmark Foundation USA Community Food Security Coalition Institute for Social Ecology Sacramento Waldorf School Community for Renewal of Education and Work Institute for Social Renewal San Diego Environmental Education Foundation Community Foundation of Southeastern International Federation of Organic Agriculture Santa Cruz Waldorf School Massachusetts Movements Seeking Common Ground Community Homestead International Rescue Committee Seminary of the Christian Community Co-op America Jennifer Horning for Ethical Metalsmiths ShadeTree Multicultural Foundation Cornucopia Institute for Organic Integrity Project Kimberton Waldorf School Creative Speech Spring Valley Land Stewardship Project CONTINUED ON NEXT PAGE 9 Fiscal Sponsored Projects

RSF approved and welcomed the following fiscal sponsored projects (also known as pre-approved grant funds) in 2006. Fiscal sponsorships allow organizations or initiatives to raise and receive funding under RSF’s non-profit umbrella for their public benefit activities.

Central Coast Learning Opportunities in Morro Bay, CA, dependent, the Forum asks how people with diverse religious and provides students with training in processing skills that focuses on philosophical beliefs, cultural backgrounds, and base mythologies developing cognitive strategies critical to comfortable learning in will engage with one another. an academic setting. Skills are developed in the areas of auditory and visual processing and short- and long-term memory. Training Isummer Group’s mission is to provide a forum for the exploration improves speed, attention, logic and reasoning, and phonemic of the relationship between Art and Spirit, and how that relation- awareness. ship impacts the world at large.

Chengdu Waldorf School is China’s first Waldorf school provid- New York City Fair Trade Coalition is dedicated to raising public ing environmental education to students and children from public awareness, and increasing visibility and availability of fair trade schools. This non-profit school actively promotes a new kind products. of education and farming in China in accordance with Rudolf Steiner’s work. Oikostasis Project supports activists and activist organizations that work non-violently towards social, spiritual, and economic trans- Current Innovations cultivates and supports economic ecology formation. Specifically, the Project focuses on the carbon cycle, and sustainability by facilitating the issuance of trusted comple- peak oil, and climate change, with the ultimate goal of protecting mentary currencies within geographic communities. the environment in order to protect the economy.

Forum on Cross-Cultural Inspiration brings together critical Wellspring Living Arts (WLA) in Chestnut Ridge, NY, provides a thinkers from many disciplines to ask which qualities, competen- healthy environment for young adults. Within WLA is a therapeu- cies, and perspectives are necessary to capture the imaginations of tic biodynamic farm for young adults who have recently experi- diverse people to bring them together for shared purpose. As the enced a life crisis. Also within WLA is the Wellspring School, world shrinks and we become more interconnected and inter- which serves teenagers and young adults wishing to gain skills in the trades and the arts.

GRANT RECIPIENTS CONTINUED

Sheltering Arms Family Center The Christian Community Central Vermont Bicycle & Pedestrian Coalition Shift Foundation The Nature Institute Vermont Humane Federation Shining Mountain Waldorf School Third Sector New England for Resource Generation Vermont Public Interest Research Group Singing Winds School Third Sector New England for Carrot Project Visiting Nurse Association of Chittenden & Society for Effective Affective Learning for Threefold Educational Foundation Grand Isle County for “Holding Our Own” Teaching Freedom Tides Center—Project Renewal Waldorf Alliance Sophia Foundation of North America Tides Center—Environmental Defenders Law Waldorf Association of Princeton Sophia Project Center Waldorf Initiative of Madison—Oak Song School South East Branch of the Anthroposophical Time Dollar Institute Waldorf Institute of Southeastern Michigan Society Tobias Community Waldorf School Association of Texas Speech Association of North America TransFair USA Waldorf School of Mendocino County Spikenard Farm Triskeles Foundation Walking the Dog Theater Spirit Rock Meditation Center Trustee of Brantwood Camp Wolf Conservation Center Spring Garden Waldorf School Twenty First Century Foundation—Gulf South Women Donors Network Starting Bloc NFP Allied Funders Women’s Action to Gain Economic Security Steiner Books United Community Centers—East New York Farms! Women’s Survival Center Sunbridge College United Nations Association for Responsible World Birth Forum Suncoast Waldorf Association Property Investing Working Group World of Good Development Organization Taj R. Forer for Photographic Projects in the University of Montana Foundation for Ecological World Wildlife Fund Mid-States Agriculture & Society Program Yggdrasil Land Foundation Tamarack Community School University of North Carolina for Biodynamic Youth for Environmental Sanity Taos DaVinci Project Farming Research Youth Initiative High School, Viroquia Teen Talking Circle Project Vanishing Cultures Foundation The Christian Community—Sacramento Verein fur Krebsforschung 10 RSF Consolidated Financial Highlights

2006 2005 2004 2003 2002 Unaudited Information*

Number of Client Accounts at Year-End Borrower Funds 82 75 76 85 70 Investor Funds 824 761 736 723 599 Pooled Income Funds 2 2 2 0 0 Unrestricted Client Funds 191 212 194 172 157 Restricted Client Funds 2 2 2 6 0 TOTAL Client Funds 1,101 1,052 1,010 986 826

Balance Sheet at Year-End ($000) Borrower Funds $ 35,615 $ 31,553 $ 33,239 $ 32,737 $ 28,531 Investor Funds 49,207 37,356 39,162 36,689 36,071 Gifts and Grants Funds 43,409 37,541 26,964 25,152 22,937 Liquid Assets 40,087 33,313 23,003 10,547 12,587 Total Assets 105,016 88,055 80,691 65,162 62,159 Reserve Funds 6,824 6,280 6,684 477 472 Undesignated Operating Net Assets 1,312 1,815 2,297 1,266 1,501

Client Gifts ($000) Gifts Received $ 15,691 $ 19,215 $ 25,550 $ 6,364 $ 9,967 Grants Made 10,300 5,831 9,989 4,193 3,075

Operating Fund Data ($000) Net Interest and Program Fees $ 2,404 $ 2,395 $ 2,183 $ 1,946 $ 1,437 Gift and Contribution Income 1,553 1,703 1,050 690 498 Personnel Expenses 2,257 2,390 2,046 1,655 1,137 Other Expenses 1,687 1,644 1,119 978 791

Operating Income Over (Under) Expenses 13 64 68 3 7

* When available, RSF’s audited 2006 financial report will be available upon request. Please contact us to receive a copy.

��

11 ADDRESS SERVICE REQUESTED Nonproﬁt Org U.S. Postage TM PAID San Francisco, CA Rudolf Steiner Foundation Permit No. 589 1002A O’Reilly Avenue San Francisco, CA 94129 1-888-RSF-3737 RSFSocialFinance.org

IN THIS ISSUE • 2006 Year-In-Review: RSF and Social Finance • President’s Letter • Power of Giving: RSF Staff Donates $23,000! • New Board Members • Investing and Lending Highlights • Philanthropic Services Highlights • Transforming Money Collaborative Highlights • New Initiatives Fund Grantees • Grant Recipients • Fiscal Sponsored Projects • RSF Consolidated Financial Highlights

RSF QUARTERLY IS PRINTED ON NEW LEAF RECYCLED PAPER WITH SOY-BASED INKS. WWW.NEWLEAFPAPER.COM

RSF QUARTERLY DESIGNED BY HEATHER STOUT DESIGN, WWW.HEATHERSTOUT.COM AND MISSION MINDED, WWW.MISSION-MINDED.COM

A new book by RSF Board of Trustee Siegfried E. Finser. You will not see money the same way again.

“This book makes clear that initiatives like RSF need people like Siegfried Finser and his colleagues, not only with a long-term perspective but also with a clear understanding of what contemporary spiritual knowledge in the ﬁeld of money means today. Understanding of what it can do in a positive sense is probably the most forceful source for social renewal today.” —Peter Blom, Chairman of the Executive Board of Triodos Bank Group, the leading social bank in Europe

Available NOW from SteinerBooks and all major booksellers. Order online at www.steinerbooks.org or call 703.661.1594. For an autographed copy, please order directly from the author at sigﬁ[email protected]. BOOK COVER BY WILLIAM JENSON. USED BY PERMISSION. WILLIAM JENSON. BY BOOK COVER