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2011 Annual Report the Duke Endowment in Charlotte, North Carolina, Is a Private Foundation Established in 1924 by Industrialist and Philanthropist James B

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2011 Annual Report the Duke Endowment in Charlotte, North Carolina, Is a Private Foundation Established in 1924 by Industrialist and Philanthropist James B TH E UNFOL D ING S T ORY The Duke Endowment 100 North Tryon Street, Suite 3500 Charlotte, North Carolina 28202-4012 Telephone 704.376.0291 dukeendowment.org 2011 annual report The Duke Endowment in Charlotte, North Carolina, is a private foundation established in 1924 by industrialist and philanthropist James B. Duke. We seek to fulfill his dream for the Carolinas by enriching lives and communities through children’s services, health care, higher education and rural churches. Mr. Duke’s legacy endures today in every life touched, every institution advanced, every innovation discovered. LETTER FROM L. NEIL WILLIAMS JR. THE PRESIDENT 1936-2012 our founder, james b. duke, was thinking strategically in 1924 when he created The Duke Endowment to “make provision in some measure for the needs of mankind along physical, mental and spiritual lines.” He could have extended the aid to other charities and beyond the Carolinas, he wrote, “but my opinion is that so doing probably would be productive of less good.” When we talk about “productive” grantmaking today, we are thinking about results. Sometimes, philanthropy leads to immediate results that are highly visible. Eugene W. Cochrane Jr., A state-of-the-art facility rises on a college campus – and students have a new President place to learn. A nurse provides counsel – and a pregnant woman stops smoking. A congregation builds affordable housing – and a family finally has a home. With some grants, however, results unfold over time. On the following pages, you’ll read about a thriving initiative that’s entering a “2.0” phase. You’ll learn about a successful effort that is being replicated elsewhere. You’ll see how years of research demonstrated a project’s effectiveness and attracted other funding sources. Mr. Duke established the Endowment to be perpetual, and we believe that encourages longer-term strategic thinking. At the Endowment, one of our guiding principles is to direct resources where they will produce the best results – and we hold ourselves and our grantees accountable for achieving them. Solutions to today’s social challenges are always complex. But as we work together to find the best approaches, we can celebrate our commitment to working strategically to make a true difference in the Carolinas. As we continue the work that Mr. Duke began, we mourn the recent passing of Staff and Trustees of The Duke Endowment mourn the loss of from Duke School of Law. He spent his professional career at four Trustees who shaped The Duke Endowment and made it stronger. Mary Duke Board Chairman L. Neil Williams Jr., who died in Winston- Alston & Bird in Atlanta, where he was named a partner in 1965 and Biddle Trent Semans was a member of the Endowment’s Board for 55 years and Salem on August 26, 2012. Mr. Williams joined the Endowment’s served as a managing partner from 1984 to 1996. Board in 1997, providing outstanding service as former Duke University honored him with a Distinguished Alumni served as our first female Chairman from 1982-2001. John G. Medlin Jr. served Chairman of our committees on Investments, Trustees and Award in 1990 to celebrate his dedication to his field, to Duke and to Governance, and Educational Institutions. He led our Board humanity, and Duke School of Law presented him with the Charles S. from 1996 to 2006. William B. McGuire served from 1965 to 1988. L. Neil Williams Jr. since January 2011. Rhyne Award in 1996 to recognize his professionalism, personal joined our Board in 1997 and served as Chairman since January 2011. Mr. Williams grew up in Charlotte, North Carolina, and integrity and commitment to education and community service. attended Charlotte public schools. He went on to earn an We join his family and a wide circle of friends and colleagues As we grieve their loss, we draw inspiration from their lasting legacy. undergraduate degree from Duke University and a law degree in mourning his loss. CHILD CARE S ‘LEGACY OF HOPE’ W Through personal letters, historical E documents and archived film clips, N a new 15-minute video presents a rare look at the life of James B. Duke and ON THE MOVE sheds light on his philanthropic dream. You can watch “Legacy of Hope: After years of leasing office The Story of James B. Duke” on our space in downtown Charlotte, MENT website at www.dukeendowment.org The Duke Endowment has W or on our YouTube channel. announced plans to build on a site a few miles away at 800 East Morehead Street. PROFILES OF SERVICE NDO Architectural designs are still E preliminary, but the three- Our founder, James B. Duke, surrounded himself with hard- story building will be LEED working men and women, believing that through working certified and feature meeting together, bigger and better things were possible. In 2011, space for Endowment grantees the Endowment launched a new series that spotlights a few and other stakeholders. of the “behind-the-scenes” workers at grantee organizations President Gene Cochrane who share Mr. Duke’s commitment to making a difference. said it was important to “Profiles of Service” honors people who dedicate their time, remain in a central area of talents and hearts to making community efforts successful. the Carolinas to be accessible to grantees. The Endowment WATCH VIDEO ‘LIKE’ US ON FACEBOOK hopes to break ground in Through DukeEngage, David Liu spent his summer When we surveyed our constituents about social media, 2012 and move in 2014. making a difference in 82.5 percent said they used social media and nearly 50 percent the lives of children. used it at least once a day. Those results – along with the arrival of our new Information Technology Director, Matt Sharp – led us to establish a presence on Facebook. The goal: increase awareness of our grantees’ work, share what we’ve learned in the field, and join conversations about important issues. MAJOR GRANTS In 2011, our Trustees approved nearly $130 million in new grants to strengthen organizations, replicate successful programs, and test innovative approaches. The total included several major multi-year awards, including $35 million to Johnson C. Smith University to support science programs, scholarships and capital improvements, and $11.25 million to Health Sciences South Carolina to advance leading-edge programs. In March, the Trustees also announced an $80 million gift to Duke University to transform the student union To read more Endowment news, and renovate two other landmark facilities. visit dukeendowment.org CHILD CARE CHILD CARE CHILD CARE HIGHER EDUCATION HIGHER EDUCATION HIGHER EDUCATION Building Family Making Education Affordable Networks for Youth for More Students When children are in foster care, they often In 2007, Davidson College became the lose connections to relatives who may be country’s first liberal arts institution to willing to provide a permanent home or eliminate loans from its financial aid packages. emotional support – and finding that extended Through The Davidson Trust, the college family can be difficult. pledged to meet 100 percent of an admitted A national program approaches the student’s demonstrated financial need through challenge with techniques inspired by the a combination of grants and employment. International Committee of the Red Cross The Duke Endowment supported the effort and the United Nations to reunite families with a $15 million grant. separated by war or natural disasters. Called Although it’s too early to measure the Family Finding, the program works to build long-term impact, campus officials say The secure, ongoing networks for youth. Davidson Trust is helping the college expand Family Finding has had significant results the vision of a quality education. Davidson has elsewhere. To determine if the model could seen a 29 percent increase in applications from improve outcomes for foster care children domestic students of color and a 37.5 percent in North Carolina, The Duke Endowment boost in applications from first-generation awarded a grant to support implementation college students. The college is also attracting and evaluation in nine counties. The N.C. students from a wider range of high schools Department of Social Services administered and enrolling 25 percent more students with the project in six of those counties; Children’s need-based aid. Home Society of North Carolina administered When Davidson President Carol Quillen it in three. spoke recently at a Congressional hearing on In 2011, the N.C. pilot’s rigorous evaluation “Innovations in College Affordability,” she helped Children’s Home Society win $6 million admitted the effort involves a large financial in funding from the New York-based Edna commitment – but the college believes it’s McConnell Clark Foundation and the federal an important step in “bridging the privilege government’s Social Innovation Fund. The gap.” “We are changing the face of society’s grant, which will also include matching money leadership,” she said, “and striving to make from The Duke Endowment, will allow Family equal opportunity real.” Finding to expand statewide and help more children form lifelong ties to caring adults. WATCH VIDEO WATCH VIDEO With the help of his Family Finder, “ I honestly could not have come to James Sanders now has the love Davidson without The Davidson Trust,” and support of extended family says Sarah Fisher, a senior at the college. in North Carolina. HIGHER EDUCATION HEALTH CARE 2011 GRANTMAKING GRANTS BY PROGRAM AREA In 2011, The Duke New Grants by Program Areas Child Care Higher Education Health Care Rural Church Cross Program Funding Strategy The Duke Endowment’s grantmaking The Duke Endowment The Duke Endowment The Duke Endowment The Duke Endowment & Special Endowment approved Three broad funding strategies reflects its commitment to nurture works through works through works through works in collaboration Opportunity define how the Endowment applies children, promote health, educate accredited organiza- select colleges and hospitals and health with the North The Duke $129.8 million in its resources to improve lives and minds and enrich spirits.
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