TM

National Foundation 2006 Annual Report 2006 ANNUAL REPORT 1 o assist in the development, o develop a fund to financially research, and cultivation of prospective donors, and provide support and encouragement to regions in their efforts to help councils achieve their goals and objectives for endowment. support the mission, values, and and the mission, values, support programs of the Boy Scouts of America by promoting and soliciting gifts, grants, and matching funds from individuals, corporations, and foundations interested in supporting councils local their through and other Scouting organizations, and internationally. both nationally Foundation—Purpose T Foundation—Mission T NATIONAL BSA FOUNDATION 2 The fund makes it possible for our family family our for possible it makes fund The an advisedfundestablishedbyourfamily. was year last Foundation the to added funds charities. other and Scouting support to ways best the find families their and donors capital, andendowmentneeds.Italsohelps operating, their support to gifts new and donors new finds and programs, council our stabilize financially us helps It Foundation. we’ve beendoing. what do to continuing simply grow—by alone programs—let our sustain longer model forScouting.Infact,wecanno years. Butwhathaschangedisthefunding unchanged, astheyhaveforalmost100 remain Scouting of values and spirit, soul, I’m proud to say that one of the new new the of one that say to proud I’m BSA the That’sabout excited I’m why I t pleases me greatly to say that the the that say to greatly me pleases t leadership and their focus on funding funding on focus their and leadership their for Kugler Al and Rosenberg Henry to you Thank about. excited get to easy Scouting’s financialfuture,andthat’s on impact measurable and significant the onewe’veestablished. to similar fund a consider you’ll hope I fact, In it. support who those of expectations increased the and Scouting for funding of landscape changing the both meet to tries Foundation It’s the us. ways the of one just to meaningful are that charities other even perhaps and council local our support to The BSA Foundation will have a have will Foundation BSA The usual,” norwilliteverbeagain.Thankyou. our fund-raisingisnolonger“businessas that understand who you—donors like visionaries from receive we support the We through only generations. but it, do can for America’scommunities and youth to available are experiences and values Scouting’s that ensure to want we and through theFoundation. Plan Strategic National BSA current the Values are learned through experiences, Valuesexperiences, through learned are Chairman, NationalBSAFoundation William F. “Rick” Cronk 2006 ANNUAL REPORT 3

councils raise $9.7 million in outright endowment gifts and identified another $47.7 million in deferred commitments. We’re excited about our success and our and our excited about our success We’re Thanks to the whole Foundation team • helped our local The Foundation future. There’s no doubt we’re moving in the in the no doubt we’re moving future. There’s only surprise is how fast right direction. The and have your support, we’re moving. We for council funding, to an increasing need thank for that. for your great efforts, and a special thanks of this to you for your continuing support great movement and its financial future.

made

four

Tour

first

Art

our

Endowment

welcomed

The Foundation assets grew to grew to The Foundation assets increase of almost $49 million—an the previous year. 26.8 percent over members into our Scout members into our with all four Philanthropy Society, minimums of $1 gifts qualifying at million each. The Foundation staff added a new national senior endowment counsel, as well as a new donor services administrator. now have nine donor- We advised funds in the Foundation, with assets totaling more than Our 12 stops throughout the country, recognizing 150 donors for endowment gifts of almost $29 million to their local councils. $7 million. We yany measure, 2006 was a good year • • • In terms of our support to local councils B • • and working through the regional endowment teams: for the National BSA Foundation. Among Among BSA Foundation. for the National our successes: BSA Foundation Albert H. Kugler Executive director, Executive director, Advisory Committee Chairman, Foundation Henry A. Rosenberg Jr. Henry A. Rosenberg NATIONAL BSA FOUNDATION 4 National Boy Scouts of America Foundation Advisory Committee Committee Advisory Foundation America of Scouts Boy National Directors of Board Foundation America of Scouts Boy National Executive Vice President William F. “Rick”Cronk Norman Augustine John Gottschalk John M.Belk President Chairman, Foundation Foundation Chairman, Advisory Committee Henry RosenbergJr. Harry E.BovayJr. Drayton McLane McLane Drayton Allen D.Brown Vice President Anderson W. Chandler Roy L.Williams Keith A.Clark Vice President Terry Dunn Secretary William F. “Rick”Cronk John W. CreightonJr. Assistant Treasurer James J.Terry Jr. Aubrey Harwell Harwell Aubrey Treasurer

2006 ANNUAL REPORT 5 Roy S. Roberts Steven R. Rogel Roger M. Schrimp Vittz-James Ramsdell Vittz-James Henry A. Rosenberg Jr. Charles Pigott Wayne M. Perry Wayne Glen McLaughlin Drayton McLane Jr. Sanford N. McDonnell Richard H. Leet Gen. William Lyon Gen. William Robert J. LaFortune Thomas C. MacAvoy J. Willard Marriott Jr. J. Willard Gary D. Forsee Terrence P. Dunn P. Terrence R. Michael Daniel John C. Cushman III John C. Cushman III Aubrey B. Harwell Jr. NATIONAL BSA FOUNDATION 6 John W. ThomasJr. Joe W. Walkoviak Rex W. Tillerson Charles A.Sted Edward E.WhitacreJr. Ronald H.Yocum Milton H.Ward E. W. Wendell Regional Endowment Chairmen R. Michael Daniel, Northeast Region Daniel, Michael R. Allen Brown,Southern RegionAllen Chuck Sted, Western Region Ron Yocum, Central Region 2006 ANNUAL REPORT 7 Funding for high-adventure programs programs for high-adventure Funding Scout (such as Philmont and facilities Ranch, Northern Canoe Tier Base, and as well as numerous Florida Sea Base), local council high-adventure programs and facilities. 100th Funding for Scouting’s anniversary celebration. In 2010, Scouting in America will be 100 years and initiatives old. Numerous projects focusing on the history and heritage of Scouting are planned. 6. Gifts may be used to support immediate 5. needs for these and other projects, or to or establish endowment funds for long-term perpetual support. Soccer and Scouting. Part of our program, it focuses on boys of Hispanic/Latino younger bilingual heritage and combines and ethics, training in leadership Scout program, elements of our Cub soccer program. and an organized BSA professional internship programs. Designed to find, train, and hire the best young men and women who localwant to work in Scouting’s councils, especially those with skills and abilities to and serve inner-city minority populations. New Scouting programs designed These to combat childhood obesity. programs combine youth-friendly educational materials and fitness incentives to address a problem that is almost universally recognized as one greatest challenges. of our society’s

2. 3. 4.

ne of the Foundation’s highestne of the Foundation’s Scoutreach. This program is specifically designed to deliver Scouting and quality after-school programs to the most hard-to-serve youth in America: rural and urban youth who are at risk, economically disadvantaged, or from minority populations.

1. Some of the specific projects for O which we are seeking funds include: priorities is to accommodate donors who programs, the local councils, want to help they want to support. and Scouting initiatives There are also some programs and initiatives for which the Foundation actively seeks them are provided and funding. Many of funded at the local council level as well as at the National Council. They are also part of National Strategic Plan. current the BSA’s Current Foundation Priorities Foundation Current NATIONAL BSA FOUNDATION 8 what wecandofortheneediestofyouth.” Grant Program The Ward Scoutreach Special InitiativesFollow-Up circumstances and their own specific cultures. Law astheyapplytotheiroftendifficult the valuesofScoutOathand important principlesandcauses.Itteaches leaders, acceptresponsibility, andcareabout staying inschool.Ithelpstrainyouthtobe strengthening faith,developingskills,and heritage. Itfocusesonbuildingself-esteem, African American,andNativeAmerican especially ofHispanic/Latino,Asian, members inruralandurbancommunities, Scouting toat-riskandunderservedyouth Scoutreach isaspecialprogramthatbrings support localcouncilScoutreachefforts. priorities istoestablishamajorfund O —Roy L.Williams, ChiefScoutExecutive by judged “Ultimately,be will Scouting ne oftheFoundation’s highest

grants: those received that councils local by reported successes the of some are Here grants. nine the for applications grant 150 over received we response, Foundation’s In priorities. the of one was program Scoutreach the knew they because provided bythesedonors a one-timeopportunity was This funds. advised grants fromoneoftheir us tooffernine$15,000 and AdeleWard—asked generous donors—Milt Foundation’s BSA most rural Scoutunitsgrewby243 percent. council grew483percent, and thenumberof the numberofruralyouthservedby from alandslide.Also,injustoneyear’s time, drive tohelparuralAlaskavillagerecover leaders, helpedfundafoodandcollection training kitstoorientandtrainnewScout Anchorage, Alaska. the of two 2005, In Provided numerous Colorado, asaresultofWard ScoutreachGrantin2006 Greeley, in established unit Scouting and Soccer New than in2005. more youthintheirScoutreach program percent 30 about served Greeley; in schools in Scoutingprogramatfourelementary Soccer new the for coaches soccer and aides school Scoutingprogram. science workshopsaspartofthecouncil’s in- offered literacyprogramsandmath the importanceofeducationandhardwork; an inner-city elementaryschooltotalkabout to Brock Lou Famer of Hall Baseball by visit a sponsored area; Louis St. the in available learn aboutarts,music,andAfricanlanguage to inner-city for youth/Scouts trips field Greeley, program new Funded Colorado. six possible Made Belleville, Illinois. 2006 ANNUAL REPORT 9 “Our great success simply would not Louisiana Charles, Lake executive, —Scout New Scout from 582 Troop trying to start a fire, Unalakleet, Alaska, in April 2006 have been possible without the assistance the assistance possible without have been Grant.” Scoutreach of the Ward new

Indian

and

Earth

numerous

White

the Reservation,

Organized on

Indian

leaders

Earth

Dayton, Ohio. Funded a new a new Funded Pennsylvania. Butler, Fargo, North Dakota. Provided camp baseball teams/packs, providing Cub Scout camping experiences for all Scouts/players from the teams; greatly increased single-parent participation in Scouting and outdoor experiences; used its Grant to attract an additionalWard $46,000 in corporate funding. Reservation. developed new weekend programs for for developed new weekend programs fall camping; sponsored a high-adventure outdoor program for 40 Scoutreach Scouts; and provided training for all unit leaders program pack and crew at one housing development to two new paraprofessionals and hired help run the unit, and help organize and cultivate leadership for four additional HUD sites; have established Scouting as service for HUD qualified community facilities, increasing volunteer and family involvement. experiences to 216 new youth from the White

Funded 22 Funded 22 Funded monthly Memphis, Tennessee. Louisiana. Lake Charles, new Scout units specifically for low-income for low-income units specifically new Scout by Hurricane youth displaced and at-risk aide volunteers Katrina; paid for program youth units and cover to serve these at-risk fees and equipment; their costs for camp largest the in program Scouting new a funded (containing 578 youth) FEMA trailer park and fund similar and is trying to establish housing locations programs in 42 additional at the specific request of the governor. fishing trips for 300 youth and 70 adults from at-risk neighborhoods, training them in conservation, wildlife management, and ecosystems; hired program specialists to set up programs in four Memphis housing projects and two low-income neighborhoods; paid for anti-drug literature distributed to over 1,500 young people; established with eight new collaborative relationships impact other organizations to leverage the of their program. NATIONAL BSA FOUNDATION 10 Jeanne ArnoldFamily plays inourlife.” it role the by values core our to testimony bears it And it. acquire or spend we which in manner the through character true our reveal can wealth test, a As dreams. our realize us help testimony.can it tool, a As Funds The ArnoldFamilyAdvised he wantedtoaccomplish. by hisfather. Buthehadaveryspecialgoal country, the in companies started business a of thelargesttruckingandtransportation was about worried have should they thing last the Pennsylvania, Lebanon, of community their in organizations numerous and Children’s State Penn the Hospital, College, Valley Lebanon Dame, Notre of University respected theyare.Asmajordonorstothe Arnold knowshowgenerousandwell- A —Family “Money canbeatool,test,or He wantedtopassonhis heirsboth

money. nyone

philosophy Ed

who

owned—and

knows

of

the Ed

sold—one

and Ed

and

Jeanne

it awayproperly. give to how understand had—and they what appreciate to them wanted He successful. so father his and him made that experiences the hardships,values,workethic,and work, hard the understand to them wanted He wealth. emotional financial wealthand In 2005,EdandJeanne’s financialadviser Nathaniel Kotzmoyer, StarScout. and president; council Gerhart, Jeffrey Webelos Scout; Robinson, Matthew by accompanied dedication, hall dining the at Jeanne, wife, his with left, Arnold, Ed

planning processwithPerry. Theyemerged the Arnoldswentthrough a completefamily Arnolds accomplishtheirgoals.Asaresult, enthusiasm forhowScoutingcouldhelpthe some greatplanningideasandanewfound The adviserreturnedtotheArnoldswith Perry Cochell,fromtheBSAFoundation. affluent. Oneofthecourseinstructorswas attended aseminaroncounselingthe

2006 ANNUAL REPORT 11 Another example of Ed and Jeanne Arnold’s generosity towards Scouting in their community. Another example of Ed and Jeanne Arnold’s Thanks to the Arnold Fund, these kids from the Pennsylvania enjoying Scouting. Dutch Council are now mission;

Jeanne

and

Ed

else

Scouting—something The children are now more actively involved They also set up three donor-advised funds funds donor-advised They also set up three

had hoped for. To quote the Arnolds’ adviser: quote the Arnolds’ adviser: To had hoped for. Arnold, who said “Much to the surprise of Mr. it couldn’t be done, this was a complete success and an incredible achievement. This to process has made such a huge difference giving them a foundation forthe family, two difference generations to build on and make a in this world.” in at the BSA Foundation. They requested that They requested that at the BSA Foundation. the funds be used to support the Scoutreach of their favorite BSA local programs in three councils. Most important, they helped their children learn to be better philanthropists, giving them the job of monitoring the annual the three distributions from the fund and how local councils spent them. a much greater sense of shared values; appreciation of family heritage, and ethics; and a focused purposehistory, for their family wealth. with a new family vision statement and family vision statement with a new NATIONAL BSA FOUNDATION 12 BSA FoundationCategoriesofFunds BSA 22.7% 9.3% 11.4% 7.5% 9.4% 15.7% 23.8% pledges receivableof$765,000. include not does Also America. of Scouts Boy the by held are funds the but Foundation, the by funds of$11,272,944.Theseprogramsareoverseen pooled and funds annuity gift include not Does (as of 12/31/06) 12/31/06) of (as Total FundsUnaudited Funds Discretionary Designated Funds Museum Scouting National World Scouting Regional Funds Trusts Charitable Remainder Donor-Advised Funds

$11,519,401 $48,352,548 $10,997,934 $3,643,031 $3,643,031 $4,516,052 $5,520,186 $7,597,000 $4,559,242

2006 ANNUAL REPORT 13 Great

to

$6,000

Reservation;

Indian

$7,786 for program support to the Green $60,817 to 12 local councils in support No distributions in 2006. No distributions $46,000 to eight local councils as follows: Gaylord Warren Beebe Memorial Fund Warren Gaylord (Northeast Region) Mountain Council. Northeast Region Fund (Main Trust) of operating and capital needs: Bangor, Maine ($5,000); Chicopee, Massachusetts ($2,337); Millville, New Jersey ($7,500); Doylestown, Pennsylvania ($1,475); Utica, ($6,000); Hagerstown,New MarylandYork ($2,000); DuBois, Pennsylvania ($1,500); Florham Park, New Jersey ($10,000); New ($5,000); Rochester, New York Albany, Pennsylvania Lehigh Valley, ($7,500); York ($7,500); Reading, Pennsylvania ($5,000). Peter A. Rose Fund (Southern Region) Rose Fund (Southern Peter A. Fund Region Trust Central $2,000 to Fargo, North Dakota, for supplies and programs for youth on the White Earth Falls, Montana, for materials and costs of materials and costs of Falls, Montana, for a youth-produced summer camp video. $6,000 to Hermantown, Minnesota; $5,000 $6,000 to Rapid to Mankato, Minnesota; South Dakota; $10,000 to Rochester, City, Minnesota; $5,000 to St. Paul, Minnesota; and $6,000 to Sartell, Minnesota; to be used for staff, marketing materials, and support of their youth outreach programs. of

memory

in

Event,

Auction

Gala

$250,000 to councils in the Gulf Coast $250,000 to councils in the Gulf Coast $60,000 for the support of various council No distributions requested for 2006. Council,$5,000 to the San Gabriel Valley (NewNo distributions requested for 2006. No distributions made in 2006. $6,015 to the Pennsylvania Dutch Southern Region Discretionary Fund Southern Region Discretionary Fund Southern Region Trust Dorothy L. and Dorothy Fund Jr. Henry A. Rosenberg (New fund in 2006) Scouting Fund The Cushman Family Family Advised Fund The Cronk Regional Funds Fund Trust Region Western affected by the hurricanes late in 2005. needs in the Southern Region. Edward and Jeanne Arnold Donor- and Jeanne Arnold Edward Fund Three Advised Pasadena, California, to support its Stars and Stripes (New fund in 2006) John C. Cushman Jr. fund in 2006) Council, Lancaster, Pennsylvania,Council, in Lancaster, support Scoutreach ofprograms. the council’s (New fund in 2006) ) $6,015 to the Allohak Council, Parkersburg, $6,015 to the Allohak Council, Parkersburg, $6,015 to the Grand Canyon Council, $106,995 to send adult Scoutreach leaders $111,439, for minority staff scholarships $51,000, which included $25,500 to the $25,500 to the $51,000, which included West Virginia, in support of the council’s of the council’s in support Virginia, West Scoutreach programs. (New fund in 2006 Edward and Jeanne Arnold Donor- Edward Advised Fund Two Phoenix, Arizona, in support of the council’s council’s Phoenix, Arizona, in support of the Scoutreach programs. (New fund in 2006) Edward and Jeanne Arnold Donor- Edward Advised Fund One Ward Scoutreach Leadership Fund Scoutreach Ward to the BSA National Annual Meeting, provide awards and incentive recognitions for these leaders, printing, and council employee travel related to Scoutreach. to Philmont, Florida Sea Base, and Northern CanoeTier Base, and high-adventure expeditions for adult leaders in the Scoutreach program. A. Ward High Adventure Scholarship Fund Scholarship Adventure High A. Ward Greater Southwest Council, Albuquerque, New Mexico, and $25,500 to the Catalina Arizona. Council, Tucson, Milton H. and Adele R. Ward Fund and Adele R. Ward Milton H. Donor-Advised Funds Donor-Advised 2006 National BSA National 2006 Reports and Distributions Foundation NATIONAL BSA FOUNDATION 14 ($3,000), fordesignatedspecialprojects Connecticut ($8,000); and Milford, Connecticut Island ($5,000),forgeneraloperatingneeds. Massachusetts ($1,135);andProvidence,Rhode operating needs. needs. operating general for ($466), Massachusetts Chicopee, and ($4,000); Massachusetts Henry P. RobbinsFund(NortheastRegion) Irving B.HoweFund(NortheastRegion) (Northeast Region) Hattie M.JacobsFund Samuel JoseloffFund(NortheastRegion) the NortheastRegionoffice. to $905 Massachusetts; Haverhill, to $10,292 as follows:$11,423toWaterbury, Vermont; Northeast Regionofficeforgeneralsupport Northeast RegionRestrictedFund Massachusetts ($162),forcouncilcampneeds. Massachusetts ($1,000);andChicopee, $4,366 to two local councils: Milton, Milton, councils: local two to $4,366 $1,162 totwolocalcouncils:Milton, $6,135 totwolocalcouncils:Chicopee, $11,000 totwolocalcouncils:Hartford, the and councils local two to $22,620

. affected byHurricanesKatrinaandRita. directly families their and employees BSA purchase new canoes. Eagle Scouts(nodistributionsin2006). and variousWorld Scoutinginitiatives. the Hurricanes KatrinaandRita. of wake the in relief budget and operations general and cleanup, of costs supplies, materials, rebuilding, capital emergency Fund toRebuildScouting BSA EmployeeHurricaneReliefFund Designated Funds Ted Winans Northern Tier Endowment Fund Foundation forgeneralsupport. (World Scouting) McIntosh European Fund Endowment Scholarship W. HansenandMaryHall Restricted Fund World ScoutingUnrestricted and Porter BrintonHigh-Adventure Fund the FloridaKeys(fundclosedoutin2006). $18,662 to support emergency needs of of needs emergency support to $18,662 $6,975 to the Northern Tier Canoe Base to to Base Tier Canoe Northern the to $6,975 $82,726 Toqualified to scholarships college provide $323,743 totheWorld ScoutFoundation at operations general support to $1,219 for councils local nine to $390,972

BSA’s

Brinton

to

the

European

Environmental

Scout

Center

in general expenses. and needs operating for Museum BSA PooledIncomeFunds BSA GiftAnnuityProgram Gift AnnuitiesandPooledFunds Foundation Discretionary Fund Discretionary Funds Endowment Gerald LawhornFamilyParentReach National ScoutingMuseumEndowment and ongoingdailyactivitiesoftheFoundation Total valueofBSApooledincome • Nine • Onenewgift—value:$23,162 • Total • Twenty-two • Thirty-three • $222,334 tosupportthegeneralexpenses No distributionsin2006(newfund). Scouting National the to $437,728 to councils:$209,750 Program: $8,471,588 distribution tocouncils:$253,406 $1,699,680 funds: $2,801,356

matured value

of

matured new

BSA gifts—total

gifts—total

Gift

gifts—total

Annuity

distribution

value:

. 2006 ANNUAL REPORT 15 in

$2,500

of

minimum

a

be

must

gift

Each The BSA Pooled Income Fund is similar The pooled fund may be an excellent Please contact the Foundation or councils chosen by the donor. councils cash, stocks, or bonds, and beneficiaries must beneficiaries must or bonds, and cash, stocks, of age. Annuity payments be at least 50 years begin immediately. may be deferred or Program, but more like to the Gift Annuity a “charitable mutual fund.” It requires a minimum gift of $5,000, beneficiaries must be at least 40 years of age at the time of the gift, and the annual income is based on the vary. actual returns of the fund and may choice for donors who do not need a an predictable rate of return and seek income stream that may help protect against inflationary periods. your regional endowment counsel for further information and gift guidelines. The Foundation is tax exempt as a charitable organization described in IRC Section not501(c)(3); a it is a public charity, private foundation.

and

ranches,

properties,

rental

by the Foundation) other real estate other real insurance and IRAs insurance The BSA Gift Annuity Program allows The BSA Foundation is also qualified to is also qualified to The BSA Foundation • and life estates Bargain sales, gift/sales, • collectibles) Personal property (art, • Oil and gas royalties • (as approved Other marketable assets • Homes, BSA Gift Annuity Program BSA Gift Annuity Program and Pooled Income Funds donors to make a gift to Scouting and, in return, receive lifetime income and other by the tax benefits. The rate is guaranteed general assets of the Boy Scouts of America and will not change for the duration of When the gift annuity ends,the annuity. the remainder goes to the local council or accept direct, tax-free gift transfers from IRAs, as permitted under the Pension with your own Protection Act of 2006. Talk advisers or fund administrators for more information.

for

life

and

gifts

multiple current

from organizations

trusts

benefit

generate to

Scouting foundation

to

designations

remainder gifts and

gifts World

for

e welcome a wide variety of gifts to of gifts to a wide variety e welcome charitable lead trusts and needs income and tax benefits for donors and that will eventually benefit Scouting specific Scouting programs and initiatives in targeted communities

councils, programs, or Scouting organizations W • Beneficiary • Charitable • and bequests Wills Most gifts to the Foundation are gifts of • Gifts • Planned • Individual • Corporate Charitable Gift Services cash and stocks. But gifts also include: support the needs and mission of Scouting. of Scouting. needs and mission support the General unrestricted gifts are used to support Scouting initiatives of greatest need, as determined by the Foundation. Specific purpose gifts—for council, a donor-selected program, or initiative—are welcome as well. gift purposes may include: Typical NATIONAL BSA FOUNDATION 16 10 abouttheArnoldfamily.) page on story the charities usedthefunds.(See the how to as reports receive and fund, the from distributions annual recommend fund, the advise to grandchildren or children donor createsthefundandselects philanthropy. in engaged fully more The their childrenorgrandchildrenbecome entities. non-Scouting Scouting and to distributions annual about Foundation donors tocreateasinglefundandadvisethe allow They planning. philanthropic their in flexibility greater seek who families donor-advised fundsfordonorsand Donor-Advised Funds Donor andFamilyServices Many donors use these funds to help help to funds these use donors Many T he BSA Foundation accommodates accommodates Foundation BSA he the nextgeneration. estate andyourfamilyvaluesethicsfor fortune second”andpreservebothyour about howtoputyour“familyfirstand information more for Ask families. their and donors for counseling wealth confidential and resources planning free offer to pleased is Foundation BSA the issues, these address and savingthefamilyfortune.To help taxes saving It’s between difference the to othersbuthardpassvaluesthem. valuables pass to easy is it that found have Family Wealth Counseling Many generous and successful individuals individuals successful and generous Many 2006 ANNUAL REPORT 17

a

E.

As

James

Award.

our

of

45 percent of councils 34.6 percent of councils 34.5 percent of councils 10.6 percent of councils members

Achievement

West Fellowship, 1910 Society, or Fellowship, 1910 Society, West Founders Circle, with total local council of over $39 million endowment gifts became The Foundation also worked with regions • who 1,900 donors Recognized over Congratulations to Area 5, Northeast Congratulations to Area Region. Seventy percent of the councils in that area earned the award, the highest in the country. of any area percentage to help their councils earn the National Endowment of all BSA local result, almost 30 percent award in 2006. The councils earned the percentages of councils earning the award by region are: Northeast Region Central Region Region Western Southern Region and

gift

Fellowship major

seminars

training numerous

Endowment

new an

he Foundation fully supports the prospects to make their gifts directly prospects to make their gifts directly to their local councils instead of the Foundation because it was more appropriate at the council level

course materials on endowment and major gifts for BSA professionals and volunteers at Philmont in June, offering Week unprecedented access and opportunities for tours and recreation at Philmont to volunteers and their families T • events Hosted 12 Endowment Art Tour • Hosted • Encouraged • Offered In the past decade, local council Local Council Endowment Needs Endowment Council Local endowment growth has been significant. The Foundation is proud of its continuing role in supporting councils in this important initiative. In 2006, the Foundation: endowment philosophy of the Boy Scouts the Boy Scouts philosophy of endowment of America: the most effective way for local to their Scouting councils to bring stability programs, and to protect their financial each council establish its future, is to have fund. own endowment NATIONAL BSA FOUNDATION 18 National FoundationDonorRecognition members include: all our first members of the society in 2006, 2006, in society the of members first our Philanthropy Society: recognition forqualifyinggiftstotheScout of levels four are There Foundation. the in initiatives, orforaScouter-advised fund purposes, specificneeds,nationalScouting 2005. in Society Philanthropy Scout the introduced we gifts, transformational To Foundation. these the recognize properly on Scoutingareofthehighestpriorityto

M We areproudtosaythatwerecognized $100million-pluslevel • $25million-pluslevel • $10million-pluslevel • $1million-pluslevel • general for designated be may gifts These at

the

ajor gifts that make a major impact impact major a make that gifts ajor $1

million-plus

level.

Our

Gerald I.Lawhorn Milt andAdeleWard important recognition. Foundation formoredetailsaboutthis the contact Please Foundation. the to sizes must beoutright. gift the of percent 10 least at levels, higher At outright. be must gift the of $1 million-pluslevel,atleast50percent the at gifts present valueofthegift.For the on based etc.), designations, beneficiary insurance/IRA trusts, charitable (bequests, gifts deferred or land) stock, (cash, gifts outright (To berecognizedin2007) Ed andJeanneArnold Rick andJanetCronk Henry RosenbergJr. We welcome and recognize gifts of all all of Wegifts recognize and welcome be may gifts Qualifying

2006 ANNUAL REPORT 19 March 15, 2007 March 15, April 12, 2007 April 19, 2007 May 10, 2007 May 17, 2007 May 24, 2007 August 30, 2007 September 27, 2007 October 4, 2007 October 11, 2007 October 18, 2007 October 25, 2007 San Jose, California Lexington, Kentucky Appleton, Wisconsin Jackson, Mississippi Indianapolis, Indiana Abilene, Texas New York Rochester, Colorado Denver, Baltimore, Maryland Santa Ana, California New York Albany, Omaha, Nebraska For more information, please contact the Foundation or your local Scout executive. cities: in the following will be Tour Endowment Art The 2007

and for

It

Eagle”

Tour. to

the recognized

Art at

“Trail

be donors

will

fifty attendees

Endowment

theme

2006 Tour Theme: Theme: 2006 Tour hundred hundred

annual

The

estate planning seminars cities visited with over 2,000 Twelve attendees at the receptions $29 million in new endowment gifts and and $29 million in new endowment gifts commitments to their local councils One our

ne of the Foundation’s most popular most popular Foundation’s ne of the

is

• Six • “Building a Foundation for Scouting” “Building a Foundation •

The tour for 2007 will again be hosted by the by the The tour for 2007 will again be hosted O events combines an educational seminar on estate planning, recognition of local council endowment of some of the most popular donors, and a display the National Scouting Museum. works of art from feature a brand-new work by renowned Scouting Scouting feature a brand-new work by renowned artist Joseph Csatari. Foundation. Endowment ArtEndowment Tour NATIONAL BSA FOUNDATION 20 in thesesixcategories,asfollows: invested percent, 13.7 was return investment investment performance: Foundation’s the affect annual positively Investment Performance andGuidelines Investment Performance For 2006, the Foundation’s the 2006, For total It • Itsassetsandpoliciesareoverseen • It • T Cash Fixed HighYield Real EstateInvestmentTrusts International Equity Fixed CoreIncomeFunds Domestic Equity(Index) consultant. Texas, Dallas, and analyst investment as in Associates LCG and management, asset for Massachusetts, Boston, in Advisors Global Street State assets: its and InvestmentCommittee. BSA’s the on serve also who Finance financial experts,thesameindividuals by 24nationallyknownCEOsand Boy ScoutsofAmerica. investing itsassetswiththoseofthe here are three primary factors that that factors primary three are here

uses benefits

two

from

industry

economy

leaders

of

to scale

manage 3.6% 6.4% 7.9% 14.2% 24.5% 43.4% Target

by

available fromtheFoundation uponrequest. is distributions and performance, size, paramount. are assets Foundation of preservation and the broaddomesticmarkets.Thesafety returns withriskconsistentthoseof the principal,and(c)generateinvestment of value real the preserve (b) investments, fund the from income of stream steady a investment. Ourobjectivesareto(a)seek the of time the at prevailing circumstances and facts the under prudence and care business ordinary exercise to is Foundation diversifying intosuchfunds. at closely look to continue we funds, hedge and equity private as such classes asset use not to tend ours to purpose and size in similar foundations most While mixes. portfolio different require them of some Foundation, the in funds specific of needs Current financial information as to fund fund to as information financial Current The standardofinvestmentforthe distribution and purpose the of Because

14.2% 7.9% 24.5% 6.4% Cash Fixed highyield trusts Real estateinvestment International equity Fixed coreincomefunds Domestic equity(index) 3.6% 43.4% 2006 ANNUAL REPORT 21 0 757 2,594 2,298 4,892 2005 28,669 $4,135 Total Total $31,263 0 5,973 1,968 7,941 3,944 2006 31,263 $3,997 Total $37,236 0 0 3,207 3,207 2,174 23,434 $1,033 $26,641

Restricted Permanently Permanently 0 922 692 1,350 1,992 $2,272 $1,300 (1,070) Restricted Temporarily Temporarily

6,479 1,844 1,968 1,070 2,742 1,078 $8,323 $1,664 Unrestricted Net assets, end of year Net assets, beginning of year Change in net assets Expenses Net assets released from restrictions Total revenue Total Investment income Revenues Contributions Foundation Unaudited StatementFoundation Expenses, of Revenues, and Other Assets Changes in Net totals for 2005) with comparative 31, 2006 (in thousands, Ended December For the Year $805 1,182 6,529 7,334 3,501 2,978 6,479 1,350 2005 23,434 31,263 $38,597 $38,597 $37,415 765 3,731 4,592 8,323 2,272

2006 $1,120 10,758 11,878 26,641 37,236 $49,114 $49,114 $48,349 Total assets Total assets Liabilities and net and Accounts payable—trade affiliates Due trust and uni-trust beneficiaries liabilities Total Net assets: Unrestricted: General operations Board-designated unrestricted net assets Total restricted Temporarily Permanently restricted net assets Total liabilities and net assets Total Assets value Investments, at fair Pledges receivable As of December 31, 2006 and 2005 (in thousands) 31, 2006 and 2005 (in As of December Foundation Unaudited Balance Sheets Unaudited Balance Foundation NATIONAL BSA FOUNDATION 22 nation tonation.Findout moreaboutittoday. and coast to coast Scouting’sfuture, financial responsibility.We for foundation the are moral and making, decision ethical in training values, family traditional support to continue focal pointforthemillionsofpeoplewho contact them. Foundation oryourlocalcouncilcanhelpyou many and proposals, gift advisers, financial their and donors with visits personal offering provide directservicewithinyourregion, BSA’s regionalendowmentcounsel.They the with objectives and needs philanthropic as well. 972-580-7886. www.bsafoundation.org., at us fax or toll-free at800-BSA-INFO,visitourWeb site us call us, e-mail please Foundation, the about counseling services,orifyouhavequestions wealth family our considering, be may you Foundation Staff and Contact Information andContact Foundation Staff Scouting continues to serve as the financial financial the as serve to continues Scouting your Youdiscuss to want also may F

or more information about specific gifts gifts specific about information more or other

specialized

Our

address

services.

is

listed

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below

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Benjamin C. Stahmann, Esq. Benjamin C.Stahmann, ([email protected]) Associate Director, Associate BSA Foundation Foundation BSA Donor ServicesAdministrator ([email protected]) Dana Fossett

Donor Records Coordinator Coordinator Records Donor ([email protected]) ([email protected]) Paula Smith ([email protected]) Executive Director Director Executive Albert H.Kugler Albert

National Senior Endowment Endowment Senior National ([email protected]) ([email protected]) Counsel—operations Colin V. French,Esq.

([email protected]) Division Secretary Melissa Oronoz National Senior Endowment Endowment Senior National Counsel—development ([email protected]) Perry Cochell,Esq., Perry

2006 ANNUAL REPORT 23 Ray Smith—Southern Region Ray Smith—Southern Jake Carlson—Western Region Jake Carlson—Western Robert Pape—Northeast Region Russ McNamer—Central Region John Shannon—Southern Region John Shannon—Southern Regional Endowment Counsel Endowment Regional Joe Long (Nashville, Tennessee) Joe Long (Nashville, Texas) Bill Lucas (Houston, Michigan) (Detroit, Rick Williamson Indiana) Scott Clabaugh (Indianapolis, Bill Dalton (San Leandro, California) Jason Stein (San Jose, California) Hugh Travis (Baltimore, Maryland) (Baltimore, Hugh Travis York) (Hawthorne, New Jack Sears The eight Scout executives whose terms terms whose executives eight Scout The Southern Region Central Region Region Western Northeast Region Northeast expire in August 2007 are: that

the

efforts for

facilitators

priorities

and

Foundation

solicitations

the

gift

Foundation

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he Foundation Advisory Committee Foundation do not interfere with local Foundation do not interfere with local council fund-raising will most benefit local councils will most benefit for endowment training sessions and courses

with those of local councils with those of local T • Making • Helping • Serving • Coordinating includes eight current Scout executives. Their participation is critical and their include: responsibilities committee NATIONAL BSA FOUNDATION 24 TM TM

National Boy Scouts of America Foundation 1325 West Walnut Hill Lane P.O. Box 152079 Irving, TX 75015-2079 www.bsafoundation.org

38-102 2007 Printing