D E E PI N T H E

O F

H E A R T

G I V I N G

C O M M U N I T I E S F O U N D A T I O N o f T E X A S

2 0 1 4 A N N U A L R E P O R T

Communities Foundation of Texas fund holder and White Rock Lake Conservancy board member Mickie Bragalone is passionate about the lake. “It’s a beautiful place that brings Dallas together,” she says. “There is something for everyone to enjoy here, and best of all, it’s free and accessible to all citizens.” The White Rock Lake Conservancy, with funding from Communities Foundation of Texas, is working to preserve and enhance the safety, beauty and identity of the lake for generations to come.

1

Every charitable act comes from

Some give because they have a vision of a brighter future, shaped by challenges they have overcome. Others are motivated by family members and friends who have inspired them. Many are moved by deep convictions, or by pure, profound compassion.

Whatever the inspiration, donors hold these passions close to their hearts, where they form the wellspring of philanthropy.

This is where Communities Foundation of Texas resides—deep in the heart of giving. We are a hub of philanthropy, with a depth of resources, charitable expertise, proven history and commitment to the community that enables us to amplify and multiply those seeds of goodwill. We take the raw material of hopes, dreams and ideals and translate them into tangible results that transform communities.

We connect donors to the causes that move them, empower businesses to do good, strengthen nonprofits and foster an ever-expanding culture of giving with a heart as big as the great state we call home.

C O M M U N I T I E S F O U N D A T I O N o f T E X A S

Dan and Joellyn Smith were always strong proponents of helping those in need. They established the Smith Family Fund at Communities Foundation of Texas as a way to pay

their prosperity forward.

After Joellyn passed away from breast cancer, Dan approached us for guidance on how to honor her memory. Together we created the Joellyn Smith Fund for Breast Cancer Support and matched him with the Bridge Breast Network, which fit Dan’s vision to provide practical support to low-income uninsured women.

Joellyn Smith always made philanthropy a priority in her life. Thanks to her loving family and support from Communities Foundation of Texas, she is still giving back today.

“Joellyn wanted to support other women

battling breast cancer, and I know she would

be proud of the fund we’ve established.

CFT took the administrative burden off my shoulders

so I could focus on honoring her memory.”

D A N S M I T HFund Holder, Communities Foundation of Texas

32 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

D E E P I N T H E H E A R T o f G I V I N G

D E E P I N T H E H E A R T o f G I V I N G

“Karen and I believe the legal profession has an

obligation to assure access to justice for lower-income

individuals. We had the resources and desire to

work towards achieving this, but didn’t know how.

That’s where CFT stepped in and helped us turn our

philanthropic vision into tangible results.”

M I K E T A N K E R S L E YFund Holder, Communities Foundation of Texas

Mike Tankersley hires lawyers who will never work a single day for him. He and his wife, Karen, also an attorney, approached Communities Foundation of Texas seeking

to translate their business law practices into courtroom assistance for the less fortunate.

We helped them set up a donor-advised fund providing two years of support for a new, full-time lawyer at Legal Aid of Northwest Texas. It’s a hire with a higher purpose, and Communities Foundation of Texas helped make it happen.

4 C O M M U N I T I E S F O U N D A T I O N o f T E X A S 5

Following a stroke in utero that left her son with his brain severely damaged, Gini Florer has become a champion for children with special needs.

John Lawson has progressed beyond expectations, but still needs special care. Grateful for the caregivers in their life, Gini and her husband, John, were inspired to provide support to other families with similar life circumstances.

The GiveWisely series at Communities Foundation of Texas helped the Florers sharpen their personal giving strategy — one that reflects the lessons learned through their unique experiences. Through the class, they decided to give to Rays of Light, a nonprofit providing childcare support for parents of special needs children.

“My family cares deeply about supporting children

in need. The GiveWisely program at CFT gave

us invaluable tools and advice to help us achieve

our charitable goals.”

G I N I F L O R E RPhilanthropist and GiveWisely Participant

76 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

D E E P I N T H E H E A R T o f G I V I N G

Brad Miller is one of the many businesspeople fostering a community of service and building a philanthropic legacy from the ground up through Entrepreneurs For North Texas

(EFNT), a Communities Foundation of Texas program that makes it easy for small and midsized companies to do good.

Each year on 9/11, EFNT hosts Freedom Day, an inspirational day of community service. This year, more than 911 volunteers from the business community put the tools of change to work by renovating transitional housing for veterans and revitalizing the VA North Texas Health Care System’s Dallas Campus. A veteran himself, Brad was proud to serve those who have served.

“EFNT and CFT epitomize the can-do spirit

of the Texas entrepreneurial culture. Encore is

proud to be an EFNT member company and

give back through events like Freedom Day.”

B R A D M I L L E RPresident, Encore Multifamily & Business-Advised Fund Holder

98 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

D E E P I N T H E H E A R T o f G I V I N G

“What I always stress on Giving Day

is that when you give to places like shelters,

a lot of the people who benefit end up

doing great things and giving back.”

T I M V O N H A T T E NNorth Texas Giving Day Donor

Tim Von Hatten knows the encompassing despair of homelessness. He felt trapped in a vicious cycle of addiction and joblessness with nothing to call his own, until Arlington Life

Shelter offered him a safe haven, tough love and practical advice that helped him find a job. After four years without missing a day of work, that job has blossomed into a fulfilling career and a bright future.

On North Texas Giving Day, Tim was able to donate to the organization that changed his life. During this annual giving event, thousands of people donate to nonprofits like Arlington Life Shelter that are improving our community. Thanks to the incredible outpouring of support, many of the discouraged and hopeless are empowered to eventually give back themselves, creating an enduring cycle of giving.

1110 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

D E E P I N T H E H E A R T o f G I V I N G

A L E T T E R F R O M T H E P R E S I D E N T B O A R D O F T R U S T E E S A N D L E G A L C O U N S E L

Brent E. ChristopherPRESIDENT AND CEO

John McStayJohn McStay and Associates

Carlos González PeñaPresident and FounderPeña Search Consulting, LLC

The Honorable Florence ShapiroFormer Texas State Senator

Harold MontgomeryChairman and CEOCalpian, Inc.

Karen ShufordCivic Leader

Nicole G. SmallPresidentLyda Hill Foundation

Our Board“So what do you hold

C L O S E T O Y O U R H E A R T?”

CFT’s funds and underlying assets are governed by an independent board of trustees composed of respected community leaders from diverse backgrounds. CFT board members are selected for their knowledge of community needs and for their professional expertise. The trustees’ charge is to understand donors’ interests and the roles of nonprofits, acting as stewards for more than 900 funds. Trustees serve without compensation and exercise final authority with regard to all CFT investments and charitable grants.

In addition to its board of trustees, CFT also has an advisory council that includes leaders from myriad businesses and civic and cultural organizations. Beyond generating public support for the foundation’s work, advisory council members provide educated and objective viewpoints that are valuable to CFT’s projects and endeavors. For a full listing of our advisory council, please visit www.CFTexas.org.

Frank RischBoard ChairCivic Leader

Jeanne T. CoxCivic Leader

Becky BrightCivic Leader

Brent ChristopherPresident and CEO Communities Foundation of Texas

James E. BassPresidentOjai Goliad, LLC

Terdema L. Ussery IIBoard Vice Chair President and CEODallas Mavericks

Ruth Sharp AltshulerEx-Officio, Chairman’s CircleCivic Leader

Vester T. Hughes, Jr.Senior Tax CounselK&L Gates, LLP

Bobby B. LylePresident and CEOLyco Holdings, Inc.

Chris KleinertHunt Consolidated Investments, LLP

Kenneth HershCofounder and CEONGP Energy CapitalManagement

Jack M. KinnebrewAttorneyStrasburger & Price, LLP

Judith W. GibbsCivic Leader

Frederick B. Hegi, Jr.Immediate Past ChairPrincipalWingate Partners

1312 D E E P I N T H E H E A R T o f G I V I N G

Y ou’ve just read a sampling of stories about donors whose families, experiences and ideals have shaped their giving. But what about you?

No matter your answer, your charitable passions added up to something really special this year.

That’s because for the first time in our 61-year history, Communities Foundation of Texas paid out $100 million in charitable grants. (Actually, it was $101 million; and every million counts.)

What a milestone to celebrate! The amount of grants through CFT varies each year, largely due to the recommendations by donors from advised funds and the grants initiated by staff from discretionary funds, along with the success of North Texas Giving Day. But we’ve never crossed the $100 million mark of annual grantmaking. Until now.

Needless to say, that amount of grantmaking is a powerful statement. You can think of it as not just the number of dollars, but the countless number of people that will thrive as a result. That’s breathtaking.

With CFT alongside you, the ripple effect in those lives got an extra boost. Maybe that boost was through matchmaking of community needs with your interests, or the research of a strategic grant. Perhaps it was the quality of the cost-effective management of the charitable assets that funded the grant. Or maybe it was collaboration with other leaders, like-minded donors and dedicated nonprofits to come up with new ideas that make the community stronger. In all of those cases, that’s why we’re here.

Huey Lewis sang about the heart of rock and roll. There’s nothing wrong with feeling the energy in a good song. But when you look at impact, it’s really the heart of giving that’s still beating!

1110090807060504 12 13 14

$605$647

$700

$801$754

$651$705

$769

$853

$982

$1,065

14

$86

10

$87

11

$54

12

$73

13

$134

12

$66

10

$73

13

$76

14

$101

11

$79

I N V E S TM E N T M A N AG E R S

Aberdeen Asset Management, PLC

Barrow, Hanley, Mewhinny & Strauss, LLC

BlackRock

BNY Mellon Cash Investment Strategies

Burgundy Asset Management Ltd.

Credit Suisse

Disciplined Growth Investors, Inc.

Hotchkis and Wiley Capital Management, LLC

Pacific Investment Management Company, LLC

State Street Global Advisors

The Investment Fund for Foundations (TIFF)

Western Asset Management Company

C U S TO D I A N

BNY Mellon

L EG A L CO U N S E L

K&L Gates, LLP

I N D E P E N D E N T AU D I TO R

Cole & Reed, P.C.

I N V E S TM E N T CO N S U LTA N T

Segal Rogerscasey

For a listing of named funds at CFT and to review the annual independent audit report and the related audited consolidated financial statements with footnotes, please visit www.CFTexas.org.

2 0 1 4 C O M P O S I T I O N O F A S S E T S(in millions, unaudited)

2 0 1 4 C O M P O S I T I O N O F G I F T S(in millions, unaudited)

Fiscal years ending June 30

Donor-Advised Funds 45.3

Agency Funds 20.5

Designated Funds 20.2

Other 0.1

TOTAL GIFTS $86.1

W.W. Caruth, Jr. Foundation 382.6

Donor-Advised Funds 312.9

Discretionary Funds 123.5

Other Supporting Organizations 95.1

Designated Funds 85.0

Nonprofit Agency Funds 34.1

Scholarship Funds 15.0

General Operating Funds 8.6

Charitable Remainder Trusts 8.4

TOTAL ASSETS $1,065.2

T O T A L G I F T S R E C E I V E D(in millions, unaudited)

A S S E T S(in millions, unaudited)

T O T A L G R A N T S P A I D(in millions, unaudited)

6%Other

3%Youth &

Recreation

2 0 1 4 G R A N T S D I S T R I B U T I O N

11%Religion

10%Housing &

Human Services

8%Community

Improvement

19%Health & Scientif ic Research

27%Education

16%Arts &

Culture

1514 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

F I N A N C I A L I N F O R M A T I O N

$10.7

$14.4MILLION

MILLION

$25.2MILLION

MILLION$5

MILLION$4

MILLION

2012

2013

2014

2011

20102009

$26.3

Extending

G E N E R O S I T YO N G I V I N G D A Y

“The ultimate impact is for our clients. Because of D3 we’re now keenly focused on helping them reach important outcomes that not only have a personal effect but will also have lasting, positive effects for our community too. It’s incredible to think that a 50-hour course can have such significant impact.”

The Data Driven Decision-Making Institute (D3) provides training to organizations serving low-income working families in making effective use of data. Key data can be used to make informed, relevant, strategic decisions, evaluating programs

and organizational impact, overcoming cultural barriers to change within organizations and better telling an organization’s story.

K ATIE PAT TERSON | Richardson Adult Literacy Center

“The D3 Institute was a game changer

for us.”

$86 MILLIONraised in 6 DAYS over 6 YEARS

In a landslide of giving, the sixth annual North Texas Giving Day exceeded its own national giving day record. Communitywide events, nonprofit performances and a groundswell of support led to widespread

buzz and excitement. The staggering number of donations poured in from all 50 states, six territories and more than 28 countries.

N O R TH TE X A S G I V IN G DAY HI G HL I G H T S

98,056 26%Total number of donations Percentage of donationsmade in 17 hours that were a donor’s first to the chosen charity

1,580Number of nonprofits receiving donations on North Texas Giving Day

1716 C O M M U N I T I E S F O U N D A T I O N o f T E X A S D E E P I N T H E H E A R T o f G I V I N G

W O R K I N G P O O R N O R T H T E X A S G I V I N G D A Y R E P O R T

Strengthening

N O N P R O F I T ST H R O U G H T H E D 3 I N S T I T U T E

2 0 1 2 / 2 0 1 3 C L A S SAVANCEBuilders of Hope CDCCatholic Charities of DallasCitySquareGenesis Women’s ShelterDallas Area Habitat for HumanityHealing Hands MinistriesH.I.S. BridgeBuildersInterfaith Housing CoalitionJewish Family ServicesLiteracy Instruction For Texas (LIFT)NETWORK of Community MinistriesNorth Dallas Shared MinistriesThe Senior SourceVickery Meadow Learning Center (VMLC)YWCA of Metropolitan Dallas

2 0 1 3 / 2 0 1 4 C L A S SBryan’s HouseChildren’s Advocacy Center of Collin CountyCornerstone Assistance NetworkCrossroads Community ServicesGalaxy Counseling CenterGrapevine Relief and Community Exchange (GRACE)International Rescue CommitteeIrving Cares The Ladder AllianceRichardson Adult Literacy Center (RALC)SafeHaven of Tarrant CountySharing Life Community OutreachVogel AlcoveVolunteers of America TexasWilkinson CenterYMCA of Metropolitan Dallas

2 0 1 4 / 2 0 1 5 C L A S SArlington Life ShelterConsumer Credit Counseling Service of Greater DallasCommunity Enrichment CenterCommunity LifelineDallas Leadership FoundationFamily Pathfinders of Tarrant CountyHabitat for Humanity of Greater GarlandHousing Crisis CenterInterfaith Ministries of DentonLaunchAbilityServices of HopeVoice of Hope MinistriesWisdom’s HopeYWCA of Fort Worth & Tarrant County

D3 M E M B E R O R G A N I Z AT I O N S46 nonprofits have participated since 2012

17%

31st

HEATHER HOLL AND | Aspiring Ed Leader

The future of health care as we know

it is about to change.

A$12 million grant by the W.W. Caruth, Jr. Foundation at Communities Foundation of Texas will enable the Parkland Center for Clinical Innovation (PCCI) to build the Dallas Information Exchange Portal (IEP), a revolutionary

electronic data integration platform that will transform health care delivery and serve as a model for the state and country.

The Dallas IEP will help solve the problem of fragmented patient information that inhibits delivery of care. Critical knowledge is often lost as vulnerable patients move in and out of the social service and health care systems, with results that can be devastating.

The Dallas IEP will use artificial intelligence and advanced analytics to predict patients’ risks of adverse health events and help providers deliver the best care. The results of such a breakthrough will be nothing short of revolutionary.

“The IEP will make Dallas the most advanced city in the nation with respect to information exchange,” said Dr. David Krause, president and CEO of Parkland Foundation. “We are truly blessed by the support of the Caruth Foundation at CFT to bring this incredible resource to life.”

22 out of 40 Teaching Trust

Aspiring Ed Leaders are working in middle

schools

95% of Aspiring Ed Leaders are now in leadership roles

(instructional coach, assistant principal,

principal)

16% of DISD middle school campus

leadership teams trained during first year

of the program

Heather Holland, Dallas ISD graduate, was in the charter 2009 Teach For America DFW corps and is now the Assistant Principal at L.V. Stockard Middle School. As part of her Aspiring Ed Leaders Residency Year with Teaching Trust in 2013, she worked closely with four 6th-grade teachers at Stockard. As a result of the team’s hard work and Heather’s leadership, the school’s 6th-graders out-performed all of Dallas ISD on the Fall 2013 interim STAAR-prep exams and ranked number one in the district for math.

In 2013, Teaching Trust was given a two-year grant as part of Communities Foundation of Texas’s Community Impact grantmaking focus on at-risk middle school youth. The organization’s leadership programs have made remarkable progress in improving teacher

effectiveness, student achievement and a culture of learning in DISD middle schools, causing ripples that will continue to positively impact the district for years to come.

C R E AT I N G A L E A D E R S H I P R I P P L E E F F EC TProgram highlights made possible by the grants from Communities Foundation of Texas:

1918 C O M M U N I T I E S F O U N D A T I O N o f T E X A S D E E P I N T H E H E A R T o f G I V I N G

W . W . C A R U T H , J R . F O U N D A T I O N A T - R I S K M I D D L E S C H O O L Y O U T H

Multiplying

L E A D E R S H I PA T T E A C H I N G T R U S T

Revolutionizing

H E A LT H C A R EW I T H T H E P A R K L A N D I N F O R M A T I O N E X C H A N G E P O R T A L

94S C H O O L D I S T R I C T S

A F T E R H I G H S C H O O L , E D T X G R A D U A T E S :

Ten years ago, Communities Foundation of Texas founded an innovative public-private partnership focused on a common goal: improving the public education system so that every Texas student is prepared for success in school, in the

workforce and in life. Educate Texas turns 10 years old in 2014, and we are looking back at a decade of being a leading catalyst for progress in education.

Our Staff

L E A D E R S H I PBrent E. ChristopherPresident and Chief Executive Officer

Amanda RobertsExecutive Assistant to the President, CEO and CFO

F I N A N C E A N D A D M I N I S T R AT I O NBeth BullSenior Vice President and Chief Financial Officer

Inve s tment s and Account ing

Phillip AdamsSenior Accounts Payable Administrator

Brian DoyleVice President of Investments

Donna LangdonAccounts Payable Administrator

Bobby LewellenAccounting Manager

Zaneta OliverInvestment Assistant

Sylvia SanchezAccounting Assistant

Kristine ThomasVice President, Accounting

Fac i l i t i e s and Admini s t ra t ion

Matt AllenInformation Technology Director

Philip BrownFacilities Associate

Beverly GarnerFacilities Director

D’Etta HughesHuman Resources Director

Karen MercadoHuman Resources Coordinator

Dani PerryHospitality/Facilities Associate

Lisa StablerMeeting Coordinator

Alyssa SteitzFront Desk Coordinator

Ann Marie WarrickEFNT/Human Resources Coordinator

P H I L A N T H R O P YSarah Cotton NelsonChief Philanthropy Officer

Wende BurtonCommunity Philanthropy Director

Jennifer CliffordPhilanthropy Officer

Lisa PearrowExecutive Assistant

Monica Egert SmithCommunity Philanthropy Director

R E L AT I O N S H I P SSusan Swan SmithChief Relationship Officer

Rachel AbbotExecutive Assistant

Yvette ElkinsData Integrity Manager

Carol Pierce GogliaMarketing and Communications Director

Karen GutierrezData Management Director

Melissa HardageDonor Initiatives Officer

Abigail HazlettProjects Coordinator

Claire HodgesMarketing and Communications Manager

Geri JacobsDirector of Charitable Gift Planning

Bilen KassaData Integrity Associate

Sally KurtzPalacios Area Fund Coordinator

Elizabeth LiserDonor Services Director

Carolyn NewhamFund Administration Director

Stephanie ValenzuelaGrants Associate

Angela WoodsonAdvisor Relations Officer

E N T R E P R E N E U R S f o r N O R T H T E X A SPam GerberExecutive Director

Kimberly BruceOperations Associate

Sejal DesaiProgram Director

E D U C AT E T E X A SJohn FitzpatrickExecutive Director

George TangChief Operating Officer

Luzelma CanalesRGV Collective Impact Executive Director

Chris CoxonChief Program Officer

Denise DavisAssociate Program Officer

Denise DevoraAssociate Program Officer

Kelty GarbeeAssociate Program Officer

Alma GarciaProgram Officer

Priscilla Aquino GarzaAssociate Program Officer, Policy and Advocacy

Amy GroffDirector of Finance

Melissa HendersonPolicy Officer

Susan HendersonAssociate Program Officer

Kristin KuhneResearch and Evaluation Analyst

Manny LamarreAssociate Program Officer

Kelbert McGeeFinancial Analyst

Lora McKeownAccounting Assistant

Jennifer PearsonDirector of Development

Catherine Penai3 Project Manager

Reo PruiettProgram Officer

Isaac RicardMarketing and Communications Manager Education Pioneers Graduate Fellow

Esther RodriguezRGV Focus Project Manager

Daniel TesfayRGV Focus Analyst Education Pioneers Graduate Fellow

Daniel TouboletsAnalyst Education Pioneers Graduate Fellow

Katelyn WalbridgeAssociate Program Officer Education Pioneers Graduate Fellow

W.W. C A R U T H , J R . F O U N D AT I O NJeverley R. CookExecutive Director

20 C O M M U N I T I E S F O U N D A T I O N o f T E X A S

E D U C A T E T E X A S T H E H E A R T O F O U R O R G A N I Z A T I O N

Amplifying

E D U C AT I O NE D U C A T E T E X A S C E L E B R A T E S T E N Y E A R S !

135E C H S & S T E M A C A D E M I E S

200%more EdTX students are

completing AP and dual credit courses than the average

Texas student

15%more college-ready

students graduate from EdTX programs than the

state average

75 %of EdTX students are

historically underrepresented and economically

disadvantaged

63K+S T U D E N T S N O W

E N R O L L E D

are going to college at a

16%higher rate than the

average Texas student

are persisting in college at a

21%higher rate than the

average Texas student

are projected to earn

$250Kmore over their lifetime than

the average Texas student

Design by O&H Brand Design | Photography by Kim Ritzenthaler Leeson

5500 Caruth Haven Lane Dallas, Texas 75225-8146 214.750.4222 Fax 214.750.4210CFTexas.org | EdTX.org | EFNT.org | NorthTexasGivingDay.org