The Endowment Program Charitable Organization Endowment Report OKLAHOMA CITY COMMUNITY FOUNDATION I SEPTEMBER 2005 Janet Taliaferro A Donor's Plan Illustrates the Power of Endowment An active community volunteer and Considering the investment strategy and political consultant who approaches distribution policy of the Oklahoma City every project with a special zeal, Community Foundation, Janet calculated how Janet Taliaferro knows firsthand that much she would need to contribute to each a solid plan is necessary if you want organization’s endowment so that future annual to reach a goal. When she decided earnings would replace her current annual gift to she wanted to provide permanent the charity after she was gone. Her calculations support for several charitable orga­ illustrated that it would require $15,000 to nizations in Oklahoma City, she put each of the six endowments. Although the her well-honed skills to work and economy was up and down over the next decade developed a plan. or so, Janet stuck with her plan and added to the An Oklahoma City native, Janet endowments as she was able. She even provided became active in many cultural, for the completion of the plan through her estate health and welfare activities as a in case she died before the endowments were fully student at Southern Methodist funded. University and during her career In 2003, Janet made her last gift toward her which lead to a relocation on the endowment plan, although she had moved back East Coast. After moving back to her to the Washington, D.C. area in 1999. And, just hometown from Washington, D.C. as she expected when she initiated her plan, the in 1981, Janet soon began supporting value of her cumulative gifts of $90,000 has now her favorite charitable organizations increased to $115,000 and will generate $5,600 by contributing to their endow­ in distributions this year for the endowments ment funds at the Oklahoma City of the following organizations: Canterbury Community Foundation. Attracted Choral Society, Chamber Music in Oklahoma, by the success of John Kirkpatrick's Francis Tuttle Foundation, Firstep, Oklahoma matches, she developed her own Philharmonic Society and Planned Parenthood of endowment building program for Central Oklahoma. Most importantly, just as she the organizations she supported. planned, Janet's gift will continue to provide for In 1991, she explained the logic of these organizations for generations to come and her plan: "I don't expect to live in Oklahoma City will increase to keep up with inflation. Janet Taliaferro and her plan illustrates after I’m older because my children live on the Janet Taliaferro and her plan illustrates that that when it comes to endowments, the East Coast and I want to be with them,” she said. when it comes to endowments, the Oklahoma "But 1 want to add to the endowments for these City Community Foundation makes giving Oklahoma City Community Foundation organizations so that when I do leave, my annual simple, flexible and forever. makes giving simple, flexible and forever. contribution will continue." Endowments: Creating Lasting Support for Charitable Organizations Table of Contents In 1970, an Oklahoma City businessman organizations know they rely upon an annual decided he wanted to find a way to support a distribution every year into the future. That's 1 Janet Taliaferro favorite organization forever. That individual, the power of endowment. A Donor's Plan Illustrates the Power of Endowment Jasper D. Ackerman, made a gift of $25-000 1-2 Endowments: Creating Lasting to the Oklahoma City Community Foundation What are endowments? Support for Charitable Organizations to establish an endowment for what is now Endowments are funds that are invested with 2 Working with donors to make charitable known as the National Cowboy & Western the intent to provide long-term support for a giving simple, flexible and forever Heritage Museum. Many others soon followed charitable purpose. A portion of the investment 3 Investment & Distribution Policies: Mr. Ackerman's lead and began establishing earnings is distributed annually to the charitable Tailored for Charitable Organization endowments for their favorite organizations. organization and the remaining earnings are Endowments Thanks to the vision and generosity of Mr. retained in the fund so that the endowment and 3 Online Services Ackerman and many others over the past the annual distribution stream both grow over 3 Charitable Organization Contact Information 35 years, the Oklahoma City Community time. Foundation administers the nation’s largest In addition to the Investment and Distribution 4-11 Charitable Organization Endowments charitable organization endowment program. Policies outlined on page 3, the Oklahoma 12 Historical Highlights In 2005. 260 charitable organizations will City Community Foundation also provides receive $4.1 million in distributions that will the following services through its Charitable provide for current needs as well as future Organization Endowment Program: operating expenses. This is revenue that exists because donors past and present support the Development Assistance many and varied missions of these organizations Our staff works continuously to promote the with contributions. And best of all, these Charitable Organization Endowment Program Continued on Page 2 I Thanks to the Charitable Organization Endowment Program, we witness the power of endowment working in our community everyday. And because endowments are forever, generations to come will benefit as well. Working with donors to make charitable giving simple, flexible and forever Investment & Distribution Policies: Tailored for Charitable Organization Endowments Providing simple and flexible giving options for donors is an important The PGDC Makes Charitable Planning Easy Charitable organization endowments are created to exist in perpetuity The Planned Giving Design Center is a comprehensive online resource and provide support for the charitable agency's current and future needs. service we provide through the Charitable Organization Endowment Charitable Organization Endowments* available at www.occf.org. A simple and free registration gives donors and The balance between generating current income and ensuring growth to Program. Charitable gifts can provide donors with tax benefits and Represent a Variety of Community Interests even annual income. professional advisors alike access to the latest information on charitable protect future income against inflation requires that investment and dis­ Our professional staff is experienced and knowledgeable about giving and estate planning. Highlights of the PGDC include sample tribution policies are well coordinated and that a long-term perspective # of Total Fund Value Organizations as of 6/30/05 '05 Distribution the different giving vehicles and can work with donors and their documents for charitable gift annuities, bequests and charitable trusts; is maintained. Area estate plan case studies; optional email news alerts on the latest regulatory The Oklahoma City Community Foundation Trustees monitor the professional advisors to develop a gift planning process that meets the Cultural 31 $5.6 million $276,517 donor's charitable and financial goals. And, because the Oklahoma developments; and an online calculator to compute tax and income investment process so that every charitable organization endowment Education 45 15.9 million 743,889 City Community Foundation is a public charity, the tax benefits are the implications. receives the best possible professional investment management. In addi­ Health/Medical 28 5.3 million 260,312 maximum allowed by law for gifts made to endowments we administer. tion, the distribution policies utilized by the Charitable Organization Below is a summary of the gift options and services we provide: Non-Cash Assets Endowment Program are modeled after the nation's largest and most Civic 62 8.3 million 393,588 We also make it easy for those donors who make charitable gifts using successful endowment programs. Social Services 67 11.5 million 543,490 Charitable Gift Annuities and Charitable Trusts non-cash assets. We are able to accept oil and gas interests, insurance Youth 14 3.7 million 180,421 Charitable gift annuities and charitable remainder trusts are giving policies, marketable securities, retirement plan assets and real estate. How are the agency endowment funds invested? Religious 3 463 thousand 11,263 vehicles that provide income to the donor or a loved one while also All charitable organization endowments are pooled with other Oklahoma making a charitable gift. The Oklahoma City Community Foundation One Gift To Benefit More Than One Organization City Community Foundation funds and invested by a team of professional * Excludes Organizational Affiliated Funds has the expertise and capability to issue gift annuity contracts and For donors who want to make one gift and divide it among several investment managers. Our investment policy calls for a portfolio of administer charitable trusts. Sample trust and annuity agreements charitable organizations, the Oklahoma City Community Foundation stocks and bonds that is highly diversified and of the highest quality. are available for review at www.occf.org. makes the process easy. Capital preservation and growth necessary to protect against inflation value of the fund, averaged over the previous 8 quarters. Any remaining are the policy's fundamental objectives. Our Investment Committee investment return over the 5 percent is left in the fund to increase