REPORT TO THE COMMUNITY 2003–2005 ? PENINSULA COMMUNITY FOUNDATION Established in 1964, Peninsula Community Foundation stewards more than 650 charitable funds and awards more than $65 million to 1,500 nonprofit organizations each year. The Foundation holds $611 million in total assets and manages a $113 million permanent Endow- ment for the Community. Hundreds of local residents have left a legacy to the community through PCF’s endowment, which grows through community support. The Foundation enables donors to connect with and support the causes they care about, and does so with the entrepreneurial spirit and commitment to innovation that are hallmarks of the region we serve. PCF is a 501(c)(3) public charity and its divisions and initiatives include the Center for Venture Philanthropy, the Peninsula Nonprofit Center, and the Peninsula Partnership for Children, Youth and Families. Of more than 650 community foundations across the United States, Peninsula Community Foundation is among the top 20 in assets and annual grantmaking. For more information, please visit www.pcf.org. WHY DO YOU WANT TO GIVE BACK? AT PENINSULA COMMUNITY FOUNDATION, WE HEAR MANY DIFFERENT ANSWERS TO THIS QUESTION. BECAUSE EACH ONE OF US HAS A STORY THAT HAS SHAPED OUR PERSPECTIVE ON LIFE. WE EACH HAVE A LENS THAT COLORS OUR WORLD VIEW, BASED ON OUR HERITAGE, OUR EXPERIENCES AND OUR DESIRE TO MAKE A DIFFERENCE. COMMUNITIES ARE BUILT OF PEOPLE HELPING PEOPLE. FOR FORTY YEARS, PENINSULA COMMUNITY FOUN- DATION HAS CONNECTED PEOPLE, IDEAS AND RESOURCES FOR THE COMMON GOOD. THESE ARE YOUR STORIES. LETTERS FROM THE PRESIDENT & CHAIR OF THE BOARD WHY? BECAUSE WE SHARE THIS COMMUNITY. Dear Friends, Anniversaries, like birthdays, are cause for great celebration and thoughtful introspection. In 1964, Peninsula Community Foundation was established with a small gift in honor of Frances Lilienthal. Now, four decades later, Peninsula Community Foundation is changing the world. We have granted more than $460 million back to nonprofits locally, nationally and interna- tionally, and become the philanthropic partner to thousands of families, individuals, organizations and corporations. These are reasons to celebrate. Almost 20 years ago, I came to Peninsula Community Foundation as a graduate student for a semester-long internship. The year was 1986 and the Foundation had just published its annual report discussing something it was calling “venture philanthropy.” That opportunity to work with Bill Somerville, PCF President from 1974 to 1990, at what was then a small but already remarkable foundation, changed my life. I am not alone in that experience. Peninsula Community Foundation has not only changed lives, it is changing the world—and this is no simple task. Sometimes making positive social change requires heroic action, as was the case when Peninsula Community Foundation’s endowment led the effort to provide universal health care for San Mateo County’s children. Other times, our work has been strategic and grounded in collaboration, as is the continued effort to preserve Silicon Valley’s ecosystem through the Environmental Solutions Forum. In other cases still, changing the world has simply meant helping a critical organization survive unexpected tough times. At Peninsula Community Foundation, service, integrity, partnership, diversity and innovation are our defining values, and we bring these principals to each issue and opportunity we address. Along the way we have learned and collaborated with so many wise partners—donors, foundation colleagues, nonprofits and community leaders—and we have been honored to serve as teachers and mentors in the national field of philanthropy. What’s left? Plenty. Our community, like our country, faces complex challenges that require shared attention and action. For all of our collective work, poverty, discrimination, environmental degradation and illiteracy still present huge barriers. Indeed, our most important work is yet to come. Peninsula Community Foundation will be here, continuing to change lives and ensure the health of this community for generations to come. Sincerely, STERLING SPEIRN President 2 Dear Friends, For over 40 years, Peninsula Community Foundation has been a leader in addressing the changing needs of this community and galvanizing others to become involved. The consistent role that PCF has played is, in part, a tribute to its exceptional leadership. With the departure of Sterling Speirn, President from 1992 through 2005, we want this report to celebrate his contributions and inspiration, even as we look ahead to a successor who will build on the legacy and continue the growth of the Foundation. On behalf of the staff and Board of the Foundation, and the hundreds of individuals and organizations that have benefited from Sterling’s vision, involvement and unflagging commitment, I want to express our collective gratitude. Sterling, you have meant so much to us. You have touched the lives of so many in this community, and you have established a lasting standard of excellence for all those who have worked with you. We will miss you greatly and we congratulate you on this well deserved next step as President of The Kellogg Foundation. Sterling often reminds us that in order to make a difference, all of us must participate. This report describes how the Foundation has facilitated the charitable goals of countless local residents, and has played a vital role in identifying the causes of, and solutions to persistent social concerns. This level of impact can only be accomplished through the involvement of an entire community, and we thank you for helping to make it possible. Sincerely, HONORABLE PATRICIA BRESEE Chair, Board of Directors FOUNDATION GROWTH AND GIVING HISTORY $611.0 (Millions Of Dollars) $538.0 Assets Cumulative Grantmaking $483.4 $479.0 Annual Grantmaking $449.0 $443.0 $395.2 $345.5 $303.0 $283.4 $221.0 $220.2 $156.0 $118.0 $64.2 $88.2 $63.2 $62.0 $31.0 $38.0 $49.7 1998 1999 2000 2001 2002 2003 2004 3 2005 BOARD OF DIRECTORS Composed of local leaders from diverse backgrounds, the Board of Directors provides guidance for the foundation’s grantmaking and community endeavors. These individuals generously invest their time, energy and expertise to address the changing needs of the Peninsula and Silicon Valley. HONORABLE STEVEN D. ANDERSON, ESQ. JOHN H. CLINTON, JR. CARETHA COLEMAN PATRICIA BRESEE (CHAIR) Attorney Retired Publisher Principal Retired Commissioner Carr, McClellan, Ingersoll, San Mateo Times Coleman Consulting Superior Court of Thompson & Horn San Mateo County NYLDA GEMPLE, R.D./L.D. UMANG GUPTA CHARLES “CHIP” HUGGINS SUSAN M. HYATT (SECRETARY) Retired Public Health Chairman and CEO Community Leader Administrator Keynote Systems President/Owner Sterling Confections BETSY MATTESON LINDA R. MEIER JENNIFER RAISER RICHARD WILKOLASKI, C.P.A. Community Leader Community Leader President Partner Raiser Senior Services Seiler & Company, LLP 4 BOARD EMERITUS Thomas E. Bailard Marjorie Bolton Hugh C. Burroughs T. Jack Foster, Jr. Bruce Hinchliffe Honorable Thomas M. Jenkins SUSAN FORD DORSEY BERNADINE CHUCK FONG, PH.D. Charles B. Johnson President President Sand Hill Foundation Foothill College Robert C. Kirkwood Olivia Martinez, Ed. D. Karen V.H. Olson Nancy J. Pedot Gordon Russell William L. Schwartz, M.D. Donald H. Seiler Warren E. “Ned” Spieker, Jr. William Wilson III Rosemary Young HONORABLE RICK JONES TERI L. JACKSON Director Superior Court Judge E. Richard Jones Family 2005 BOARD ADVISORS San Francisco County Foundation Thomas E. Bailard Richard L. Bennett Susan Garratt Elizabeth Obershaw Gordon Russell Donald H. Seiler Burnie E. Sparks, Jr. Mary P. White JANE H. WILLIAMS ALBERT J. HORN, ESQ. (TREASURER) (OF COUNSEL & CHAIR EMERITUS) President Carr, McClellan, Ingersoll, Sand Hill Advisors Thompson & Horn 5 GIVING WITH US HOW? BY WORKING TOGETHER AN ENDOWMENT FOR THE COMMUNITY A permanent charitable resource dedicated to San Mateo County and northern Santa Clara County, Peninsula Community Foundation’s Endowment for the Community is used to build our community, not our organization. It allows us to be flexible, responsive and innovative in our grantmaking, and to consider the health of our community over the long-term. A donation to the endowment is a philanthropic wish that will be carried out in perpetuity. The Endowment for the Community provides vital resources to support local charitable causes across the region. It is a catalyst to inspire action and collaboration and, with each grant from this permanent resource, a pressing need within our community is addressed. In 2003 and 2004, more than $10 million was awarded from the endowment, which continues to grow from community support. In 2005, $6 million more will be granted in the areas of children and families, education, health and human services, the environment, the arts and strengthening nonprofits. In this way the endowment is re-invested back into the community from which it came. 2004 TOTAL ASSETS: $611 MILLION 60% Advised Family Foundations 19% PCF Endowment for the Community 8% Chartered Family Foundations 7% Charitable Remainder Trusts 3% Field of Interest & Scholarship Funds 2% Nonprofit Funds 1% PCF Operating Funds 2003 AND 2004 TOTAL GRANTMAKING: $137.9 MILLION 17% Supporting Families 16% Higher Education 13% Health & Wellness 12% In School & Out of School 11% Environment 10% Building Community 8% Strengthening Nonprofits 7% Arts & Culture 4% First Five Years of Life 2% Religion 6 PENINSULA COMMUNITY FOUNDATION OFFERS A VARIETY OF