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2014 Annual Report a Letter from Our President and Chair

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2014 Annual Report a Letter from Our President and Chair A LIVING HISTORY 2014 ANNUAL REPORT A LETTER FROM OUR PRESIDENT AND CHAIR We opened the doors to The Duke Endowment’s new headquarters on East Morehead Street on August 25, 2014. We had relocated from just a mile away, but the process of moving was still an adventure. As staff members packed and unpacked crates and boxes, we were keenly aware that this new chapter in the legacy of our founder, James B. Duke, was the result not only of months of planning, but of the decades of hard work that came before us. EUGENE W. COCHRANE JR., PRESIDENT MINOR M. SHAW, CHAIR The Duke Endowment today is built on the strong foundation of our past. From the time Mr. Duke established his Trust in 1924, the Endowment has been on a journey with grantees in the Carolinas to create a place where children are nurtured, health is promoted, minds are educated, and spirits are enriched. The Duke Endowment in Charlotte, We have had a long history of collaborating North Carolina, is a private foundation with organizations in North Carolina and South established in 1924 by industrialist and Carolina that are making a lasting impact on the philanthropist, James B. Duke. We seek communities and people they serve. to fulfill his dream for the Carolinas by enriching lives and communities through Thanks to all of our grantees across the two children’s services, health care, higher states, much has been accomplished in these 90 years. As we look back, we are grateful for the education and rural churches. Mr. Duke’s partnerships that will move us forward. legacy endures today in every life touched, every institution advanced and every We celebrate that living history in our 2014 Annual innovation discovered. Report. By featuring some of our original grantees and showing how our work continues today, we wanted to honor the past and focus on the opportunities ahead. As one of the older foundations in the United States, The Duke Endowment is steeped in history and traditions. But we must be willing to adapt and change to serve the Carolinas and address today’s complex issues effectively. Our new headquarters is a part of that change. Mr. Duke wanted his philanthropy to continue in perpetuity, and our Trustees view this building as an investment for the Endowment’s future. This will be our home for years to come — a place for continuing our long commitment to North Carolina and South Carolina. Photo courtesy of Duke University Archives After 24 years of faithful service, Dr. William G. Anlyan retired from our Board of Trustees. The Board elected John F.A.V. “Jack” Cecil, president of Biltmore Farms in Asheville, N.C., as his successor. When our new Charlotte headquarters opened in August 2014, years of planning became a reality. The 46,000-square-foot building features meeting space on the first floor and two levels of office space for staff. It was an honor to invite neighbors, grantees and other partners to help us celebrate this important milestone in our founder’s legacy. We said goodbye to two longtime staff members and wished them well in retirement. Marilyn MacKenzie (left) joined the Endowment in 1987. Toni Roof was with us since 1992. James B. Duke saw wisdom in surrounding himself with hard-working, talented people. From starting his businesses to creating The Duke Endowment, he sought out people of character and commitment. LEADERSHIP STAFF Eugene W. Cochrane Jr. President Ashleigh J. Allessio Trena McClure Stacy E. Warren Senior Administrative Senior Administrative Specialist, Program Officer, Health Care Specialist, Health Care Rural Church Robert R. Webb III William F. Bacon Susan L. McConnell Director, Rural Church Director, Evaluation Director, Higher Education/ Director, Human Resources Kimberly M. Webb Denton W. Baird Senior Administrative Specialist, Fellow, Information Arthur E. Morehead IV Child Care/Finance Technology Vice President/General Counsel Anita W. West Carolyn M. Duff Laura A. Peres Accounting Manager Director, Payroll and Benefits Paralegal Tamika D. Williams Ronda S. Dwyer Charity L. Perkins Program Officer, Child Care Senior Administrative Director, Communications Specialist, Health Care Lily H. Zhang Mary L. Piepenbring Controller Nancy L. Edwards Vice President TRUSTEES Administrative Specialist, Director, Health Care Diana Zilberdrut Health Care Project Specialist, Phillip H. Redmond Jr. Communications/Investments Philip W. Freeman Associate Director, Child Care Fellow Kristen R. Richardson-Frick Paula W. Greene Program Officer, Rural Church Office Services Coordinator Karen H. Rogers Janet B. Haas Chief Financial Officer/Treasurer Minor M. Dennis M. Mary D.T. William John F.A.V. Senior Administrative Shaw Campbell Jones Barnet III Cecil Specialist, Evaluation Meka S. Sales Chair Vice Chair Vice Chair Spartanburg, SC Asheville, NC Program Officer, Health Care Greenville, SC Durham, NC Abingdon, VA Melinda O. Hardin Accounting Specialist Matthew D. Sharp Director, Information Technology Linwood B. Hollowell III Associate Director, Health Care Natalie C. W. Smith Financial Analyst, Terri W. Honeycutt Finance/Higher Education Corporate Secretary Eric D. Stevens Jeri F. Krentz Administrative Specialist Associate Director, Communications Christina H. Strader Ravenel B. Harris E. Constance F. Thomas S. Charles C. Fellow Curry III DeLoach Jr. Gray Kenan III Lucas III New York, NY Hartsville, SC Winston Salem, NC Chapel Hill, NC Charlotte, NC Rhett N. Mabry Vice President K. Todd Walker Director, Child Care Managing Director, Investments Tania G. Mapes Senior Administrative Specialist, Administration/Higher Education Wilhelmina M. Russell M. Jean G. Spaulding Kenneth D. Judy Reuben-Cooke Robinson II Durham, NC Weeks Jr. Woodruff Alexandria, VA Charlotte, NC Charlotte, NC Washington, D.C. DISTRIBUTED GRANTMAKING CHILD CARE $10,556,272 $9,839,666 IN NEW GRANTS APPROVED HEALTH DISTRIBUTED CARE $45,204,012 $31,288,463 IN NEW GRANTS APPROVED HIGHER DISTRIBUTED EDUCATION $59,212,078 A $31,825,000 IN NEW GRANTS APPROVED RURAL DISTRIBUTED GROWING CHURCH $13,679,746 INVESTMENT $15,126,590 IN NEW GRANTS APPROVED CROSS PROGRAM/ DISTRIBUTED SPECIAL OPPORTUNITY $11,350,081 1924–2014 $8,860,392 IN NEW GRANTS APPROVED In 2014, The Duke Endowment distributed $140 million through 375 grants, some of DISTRIBUTED which were approved in previous years. TOTAL GRANTMAKING The Endowment approved 198 new grants $140,002,189 totaling over $96.9 million, some of which $96,940,111 IN NEW GRANTS APPROVED will be paid in future years. Today, the Endowment’s Child Care program area looks at group care as an intervention, not a placement. Recent grants have helped quality providers offer an array of programs to help vulnerable children receive services based on their assessed needs. With Endowment funding, several organizations have joined forces to become full-service child welfare agencies. 2014 DISTRIBUTED 35 NEW GRANTS $10,556,272 $9,839,666 18 NEW GRANTS 17 NEW GRANTS OUT-OF-HOME CARE PREVENTION AND EARLY INTERVENTION $5,318,811 $4,520,855 As a child, James B. Duke suffered the loss of his mother, then lived with his grandparents while his father was sent off to war. His compassion for children without supportive families helped shape his vision for a better world and became an important part of his legacy. CHILD CARE When Barium Springs Home for Children opened its doors as an orphanage in 1891, most residents would arrive as infants and stay through high school or college. Orphanages played a custodial role, providing food, shelter and schooling for “wards of society.” The Duke family long supported these homes for children, and James B. Duke, who grew up motherless, continued that assistance in his own philanthropy. When he listed beneficiaries in the Indenture of Trust that established The Duke Endowment, he included “properly operated” facilities “in an effort to help those who are most unable to help themselves.” In the early decades, the Endowment distributed its funding to facilities in North Carolina and South Carolina based on the CHILD CARE number of children served. After the end Helping vulnerable children lead successful lives by of World War II, the need for orphanages supporting early intervention, lessened. Instead of providing homes for collaborative approaches and evidence-based programs children who were parentless, they began that help serve children and their families offering therapy for children who suffered more effectively from abuse and neglect. Grants from the Endowment during that time went toward campus renovations and programs. In 2014, Barium Springs, based in Statesville, merged with another of the Endowment’s original grantees, Grandfather Home for Children, based in Banner Elk. Through that consolidation, two of North Carolina’s oldest campuses have become one of the state’s largest private child welfare providers — Children’s A Hope Alliance — serving some 3,500 children in 63 counties through adoption, foster care and comprehensive treatment for abuse and neglect. The merger will help the two organizations maximize resources to provide the highest quality care. A $350,000 grant from the Endowment offsets costs related to the effort. HOME “By helping ‘properly operated’ providers offer a continuum of effective services, more families will have access to the critical resources they need,” says Dr. Jean FOR CHILDREN Spaulding, the Trustee who chairs the Endowment’s Committee on Child Care, “and vulnerable youth will have a better chance to flourish and thrive.” In 2006, with increasing costs of health care and the growing number of uninsured, the Trustees elected to redesign the “Free Days of Care” program. The new model would help develop community-based partnerships to connect low-income, uninsured patients to medical homes and offer comprehensive, coordinated services through safety net providers. 2014 DISTRIBUTED $45,204,012 62 NEW GRANTS $31,288,463 26 NEW GRANTS ACCESS TO HEALTH CARE $11,496,672 5 NEW GRANTS PREVENTION $2,161,128 A healthy man for most of his life, James B.
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