We All Benefit From Helping Others

Sylvia Yuen and Harold Masumoto have sought to give back to the community, both in their professions and in their philanthropy.

“We’re very pragmatic people,” said Sylvia Yuen about the decision to establish an endowment fund at Hawai‘i Community Foundation (HCF) with her husband Harold Masumoto. “So many gifts are perishable, but this one will continue to provide benefits into the future.” That’s why, in lieu of receiving gifts last year, the couple asked friends and family to donate to their new fund, the Yuen-Masumoto IHS Endowment.

Sylvia and Harold chose to support the Institute for Human Services (IHS) as a way of helping one of the most vulnerable groups in the state. “IHS has a philosophy we believe in — of providing a hand-up, not a hand-out,” says Harold.

The couple set up their gift to serve as a continuing source of unrestricted funds, based on what frequently happens in nonprofits. As Sylvia explains, “Because they need to be in fundraising mode, staff time that could be used for client services gets diverted. And unlike grant funds that dictate how the money has to be used, a steady stream of unrestricted funds lets agencies respond to emergencies and opportunities as they arise.”

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FACES O F P H I L A N T H R O P Y

2015 ISSUE 1

A message from Kelvin H. Taketa, President & CEO and Deborah K. Berger, Board Chair Leading the MissionIt’s hard to believe that summer is here when it seems we’ve just started 2015. Part of what accounts for the sensation of speed is the fact that HCF is a dynamic organization, constantly iterating in response to the changing needs of the community, and continuing to grow to meet the many requests for our help.

We’ve long been committed to building the capacity of local nonprofits to deliver on their missions, having invested more than $14 million in grants, technical assistance and leadership development programs for several hundred nonprofits over the last decade. Building on everything we’ve learned, we recently launched HCF’s Nonprofit Excellence Initiative, which is designed to benefit high performing organizations and those that are striving to be high performing.

In this issue of Faces of Philanthropy, you can read about an innovative conference (Page 10) we sponsored for nonprofit executives and members of their boards to share new tools, new connections, and new ideas for strengthening their organizational performance and leadership.

One of the ways to multiply the value of our accumulated knowledge is to share it widely. To that end, we’ve revamped HCF’s online Knowledge Center, which is a rich resource for and about nonprofits. Bottom line, if we can strengthen local nonprofits, the entire community will benefit.

In a survey we commissioned to assess how charitable giving by the people of Hawai‘i has changed over time, we’ve learned some interesting things about our community. You can read a summary of the Hawai‘i Giving Study in this issue (Page 9) and access the full report online.

Each of the donor stories you’ll read here is compelling; behind every fund is a very personal reason for why and how someone has chosen to give. We are awed by the generosity and passion of those we come into contact with at HCF.

Given how fast time flies, we’ll be celebrating our centennial before long. We aim to be as vital and relevant as ever and to earn the confidence that’s been bestowed on us by the people of Hawai‘i on a daily basis.

Both of them children of immigrants, Sylvia and Harold feel very fortunate for their fulfilling jobs and appreciative of their supportive families and friends. “We’re part of Hawai‘i and want to do what we can to make it a better place,” says Harold. Both have served on numerous community boards, including the seven years Sylvia spent on HCF’s Board of Governors. “Being part of the HCF board made me aware of HCF’s excellent fund management capability and that our endowment would be in good hands” reports Sylvia.

The couple has also set up scholarship funds for high school and college students.

For Sylvia Yuen and Harold Masumoto, giving back to the community is part of a virtuous cycle that Sylvia describes this way: “Helping others to lead more stable and secure lives enables them to raise healthy children who will succeed in school and life, develop strong families, and contribute to their communities. In the end, the quality of life in Hawai‘i improves, and we all benefit.”

Cover story continued

Kelvin Taketa & Deborah Berger

Our Mission We help people make a difference by inspiring the spirit of giving and by investing in people and solutions to benefit every island community.

– Sylvia Yuen

2

Their Legacy for Their Community on Moloka‘i

The remote Kalaupapa Peninsula on the island of Moloka‘i was once a place where many Hawaiians afflicted with Hansen’s disease (also known as leprosy), were sent to live. Though now a National Historical Park, it is a place where suffering, as well as kindness, took place.

Teruo and Adeline Ogawa lived on Moloka‘i for more than 40 years, and both worked for the state at Kalaupapa Settlement; he was a carpenter and she was a house supervisor. Over the years, they developed a love for the residents in the isolated community and witnessed the hardships that the children faced. The Ogawa’s dream was to provide a way to give those children the chance one day to pursue a college education, especially since neither Teruo or Adeline had ever had the means to do so.

With their attorney Stephen Reese, and their nephew Edward Nakagawa, two funds were established at HCF in their memory. One supports programs on the island that help youth prepare for college, and the other provides scholarships for Moloka‘i students to attend college. “My aunt and uncle believed in continually learning and setting goals to work toward,” said Nakagawa. “The scholarship fund and the education fund are great ways to honor two people who were of Moloka‘i, and for Moloka‘i.”

Planning for the Future for You and the CommunityBy Curtis Saiki, Vice President of Philanthropy & General Counsel

A charitable gift annuity (CGA) is a really great way for HCF donors to make a gift that will give them a steady stream of income for life, reduce their tax bill, and benefit the community.

Donors who are age 60 or over and who want the security of a fixed payout for life, can establish a CGA with an initial gift of at least $20,000 in cash, funds or securities. The donor receives a tax deduction on the net value of the gift and gets to decide how to use the remaining balance at the end of the CGA term. This “residuum” can be applied to establish a new or supplement an existing fund at the Hawai‘i Community Foundation.

The annuity is easy to create. We work shoulder to shoulder with the donor and his/her professional advisor to customize the CGA based on that individual’s personal situation and charitable investments. Donors have the comfort of receiving fixed annuity payments and knowing that their gift is backed by the financial strength of one of the largest and oldest community foundations in the nation.

Charitable Gift Annuity ExampleMrs. Kealoha, age 72, makes a cash gift of $200,000 to the Hawai‘i Community Foundation to set up a Charitable Gift Annuity. She will receive fixed annual payments of $10,800 from HCF for the rest of her life.

Mrs. Kealoha is entitled to an immediate charitable tax deduction of approximately $83,000. Assuming she is in the 35% federal tax income bracket, she could save as much as $29,050 in federal income taxes. Of the $10,800 she receives every year of her life, $8,067 is tax-free for 14.5 years.

Mrs. Kealoha has requested that, at the end of her life, the remaining balance of her CGA fund (projected to be 50% of the original contribution) is used to establish a “Field of Interest” fund to benefit disadvantaged youth who reside in Leeward O‘ahu.

To get more information or to establish a CGA at HCF, contact me at 808-566-5521 or csaiki@hcf-hawaii.org.is Saiki at 808-566-5hcf-hawaii.org.

Leaving a Legacy

Anonymous (5)

Paul Arrigo

Elizabeth Arrigo

Mark A. Boyd

Concetta DiLeo

Karyl Franks

Doug Gibson

Christiaan N. Grootaert

Grant Harris

Carolyn S. Jhung

Christine Moskowitz

Karl Moskowitz

Dora C. Thevenin *

Leon A. Thevenin *

*Deceased

New Legacy Society Members

3If you would like more information about Leaving a Legacy, please contact Martha Hanson at 566-5526 or mhanson@hcf-hawaii.org

Welcome to the ‘Ohana

New Funds at the Hawai‘i Community Foundation We warmly welcome HCF clients who recently created funds; they join a special group of dedicated people who share a passion for helping others and making Hawai'i an even better place to live. Though their interests may vary, what HCF clients have in common is a strong desire to make a meaningful impact during and beyond their lifetimes.

The HCF Board of Governors is made up of respected community leaders who provide invaluable leadership to the Hawai‘i Community Foundation. We warmly welcome the addition of these three individuals:

Alan Arizumi is Vice Chairman of First Hawaiian Bank and Manager of the Wealth Management and Consumer Banking groups. He is also Chairman and CEO of Bishop Street Capital Management Corporation, a subsidiary of the bank. He has over 30 years of banking experience and serves on numerous boards that benefit our community.

It is a privilege to serve on the HCF Board of Governors and be part of an organization that touches the lives of so many people in Hawai‘i. HCF has a proven and effective infrastructure that helps to maximize the level of giving, and through its many programs employs unique and innovative approaches to solving issues and improving the communities we live and work in.

Roberta Chu is Senior Vice President at Bank of Hawaii, where she is Hawai‘i Island Commercial Banking Center and Hawai‘i Island Manager. She has more than 30 years of experience in the banking industry, and has made time for extensive community service by serving on multiple boards.

I’ve been involved with HCF for many years on the Hawai‘i Island Leadership Council, so I know what HCF is doing and I believe that it’s a great organization. I hope I can help it to continue to grow and assume an even bigger role as a valuable bridge between nonprofits, for-profits and the state government.

Elliot Mills is Vice President and General Manager for Aulani, a Disney Resort & Spa at Ko Olina. Born in Hilo, Elliot has held various executive and resort management positions on Kaua‘i, Maui and O‘ahu before assuming responsibility for management of the 1050-room Aulani, Disney’s first family destination resort in Hawai‘i.

I think the vision and mission of HCF is at the heart of what the community really needs. I believe the organization is making a huge difference and having a big community impact. My hope is to be able to add some value and help HCF perpetuate its history of contributing to the community in meaningful ways.

New to the Board of Governors

Anonymous (2)Aloha Angels FundAnna K. Gower and Annabelle K. Gower Scholarship FundAnna Kalei Gower FundAranoff Keiki FundEmpowerment Scholarship FundFriends of Youth Outreach FundGeorge Bartlett FundGerald W.G. Kwock Charitable Foundation Scholarship FundHale Kaua‘i Scholarship in Memory of William MoragneHawai‘i Chapter No.1 Order of the Eastern Star Scholarship Fund

Hawai‘i Environmental Funders Group FundImi Ho‘ola Leadership Scholarship FundInkinen & Associates Charitable FundKathryn Inkinen Charitable FundLeon and Dora Thevenin Fund Loa‘a Mai Ka I‘ke FundParks Family FundPat Shinobu Scholarship FundTony Group Scholarship FundZia-Miyasato Family Fund

4 If you would like more information about opening a fund, please contact Cara Mazzei at 566-5527 or cmazzei@hcf-hawaii.org

New Fund Profile: Aloha Angels FundHCF welcomes Aloha Angels Fund, newly established to raise private funds for the 10,000 students and teachers at the 13 public elementary schools, including public charter schools, on Kaua‘i. HCF spoke with the group’s president, Ric Cox, whose ambitious vision of giving away $1 million a year is off to a running start.

Q. What is the need that your new fund responds to?

A. Our local schools, like those nationwide, have limited resources. Teachers and parents don’t have sufficient funds to provide students with the basic tools — including pencils and notebooks, not to mention computers — they need to perform adequately in the classroom. Students cannot afford to take field trips to other areas of our small island.

Q. How did you come up with the name of your fund?

A. The program that Aloha Angels grew out of, Adopt a Classroom, offered donors the opportunity to become Classroom Angels by donating $700 and volunteering in the classroom

one hour a week. They were also awarded halos. That approach was so successful that we decided to adopt it for our new organization. Those who donate $10,000 or more are designated as Aloha Angels, although any donation is welcome.

Q. What has the response been?

A. The generosity of people on Kaua‘i has been amazing. In just two months, we’ve raised $237,000 and made grants totaling $133,000 to support Adopt a Class, Adopt an After-School Club, Junior Achievement, and Growing Our Own Teachers on Kaua‘i. Among those who have earned the designation Aloha Angels are three of the island’s five Rotary clubs.

Q. What is the impact you are hoping to see?

A. Our ultimate goal is to form a more perfect Kaua‘i, with an initial emphasis on enriching the lives of our young people, particularly those in public schools. We want to see happier students and teachers creating better outcomes. And we’re off to an excellent start.

Ric Cox, one of the creators of the Aloha Angels Fund.

As Vice President for Advancement & Philanthropic Services, Paul Keenan oversees the fundraising, marketing and client-service functions at HCF. He brings to the role 25 years as an executive with Harvard University and has also provided strategic counsel to corporations and nonprofits seeking his expertise.

Through my role at HCF, I hope I can help people, acting on their best inclinations, to make a positive impact on Hawai‘i and the world.

Before joining HCF as Associate Director of Philanthropy Advancement, Martha Hanson worked with the UH Foundation and The Nature Conservancy of Hawai‘i for over a decade each. She brings her substantial experience to her current role, where she is overseeing the stewardship of HCF legacy and annual donors.

I admire HCF’s ability to bring the community together to address important issues and look forward to helping our donors achieve the impact their generosity makes possible.

New to HCF

5

Leadership, Learning, Legacy Hawai‘i Community Foundation events illustrate the broad reach of our statewide efforts. We encounter highly engaged volunteers, donors, clients, and partners wherever we travel in the community. To see more photos from our events, view our Facebook Albums at Facebook.com/HawaiiCommunityFoundation.

Barbara and Paul Morgan

Frances and Earl Tokumura

Gail Kamitaki, Guy Kamitaki, Sada Okumura, John Drouilhet, and Edmund Casella

Marshal, Maureen Maurer, Zeus, Brian Kajiyama, John Leong, and Mary Saunders

German Benevolent Society of Honolulu

O‘ahu Donor Event On April 15, over 250 guests joined us to celebrate the positive impact our donors are having on the community.

HCF Happenings

6

Betty Bell and Jana-Lynn Kolo

Margaret and Tad Miura

Shana Brown, Janelle Olores, Jaysha Olores, and LaVerne Bishop

Kaua'i Leadership Council with HCF Staff

Robin and Sam Pratt

Shirley and David Iha

Kaua‘i Donor EventEach year, HCF recognizes our amazing donors throughout the islands. We gathered on Kaua‘i on May 21.

7

Advancing Nonprofit Excellence ConferenceHCF hosted over 300 executives and board members at a leadership conference on May 7 to advance the nonprofit sector. (Page 10)

Maui Leadership Council EventMaui Leadership Council members were honored for their dedication to the community on April 30.

Charlene Schulenberg and Gary Passon

Randy Omel and Roxanne Scott Tamar Goodfellow and Wendy Rice Peterson

Judy and Ronald Aikawa

Jim and Honey Bun Haynes

HCF Happenings

8

The Hawai‘i Community Foundation commissioned SMS Research to conduct a telephone survey of 900 households throughout the state to ask about their charitable giving in 2014 and assess how things have changed over time.

Summary highlights:

• 93% of Hawai‘i households gave cash, goods, or time in 2014.

• This is about the same rate as the overall U.S.

• Most households donated cash (66%)

• Overall giving in each county has remained fairly constant.

• Although there was a small decrease in the percentage of households giving cash, the average amount of cash gifts has increased across the state for all ages and income groups.

• There has been an increase in the number of households giving outside the state.

• 70% of contributions are still made to nonprofit organizations in the state.

• Most households contribute to human services organizations.

• However, the largest average gifts are given to religious organizations.

• People give to nonprofits they have a personal relationship with.

• They see the organization they support as best suited for the work.

• The number of households that include charitable plans in their wills and bequests has doubled.

• There was a significant increase in the percentage of households that say their giving is planned ahead.

For more information and to see the complete study, visit HawaiiCommunityFoundation.org

9

Hawai‘i Giving Study

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$

O‘ahu Hawai‘i Maui Kaua‘i State

80%

60%

40%

20%

0%

Average Monetary Gift

65% 63%

71%

76%66%

$2,3

92

$1,0

85

$1,

29

4

$1,

273

$2,0

24

Average Monetary Gift % Who Made a Specific Monetary Gift

Hawai‘i United States

Year 2008 2014 2009 2013

Average total annual cash giving $1,446 $2,024 $2,333 $2,974

Advancing Nonprofit Excellence

Catchafire Comes to Hawai‘iRecognizing the essential role nonprofits play in the economy and health of our community, HCF is always on the lookout for opportunities to improve the capacity of organizations to better help those they serve.

That’s why HCF created a partnership with Catchafire, a capacity building service that connects nonprofits with professionals who want to volunteer their skills with a cause they care about. “Catchafire gives Hawai‘i nonprofits access to a national pool of volunteer talent,” explains Pi‘ikea Miller, HCF program director.

HCF selected FLEX grantee organizations to participate in a pilot program this spring. To date, 83 local nonprofits have successfully listed 203 projects, matched 89, and completed 17.

Family Promise of Hawai‘i Executive Director Mary Saunders already has three projects in the works, including database customization, which she estimates has saved her organization $7,000.

Through the end of July, Catchafire will be offering all local nonprofits a special introductory rate of $1,600 for a 1-year membership, a savings of $400.

To learn more about Catchafire, visit: Catchafire.org

Rachael Chong, CEO and Founder of Catchafire presenting at the Advancing Nonprofit Excellence Conference in May 2015.

The work of nonprofits impacts the quality of life for everyone in Hawai‘i. Because they are critical to the well-being of our community, it is critical to support them. What we’ve learned at HCF from nearly two decades of capacity building has culminated in a new initiative to advance nonprofit excellence.

As part of this effort, HCF recently hosted a one-day conference called Advancing Nonprofit Excellence, designed to give nonprofit executives and board members the chance to explore what they can do in partnership to help their organizations achieve excellence.

Using the acronym CHANGE, Kelvin Taketa outlined the best practices of a high-performing nonprofit:

Community Connections

Healthy Finances

Accountable Results

Networked Relationships

Great Governance and Leadership

Effective Programs

Feedback from the more than 300 attendees was universally positive, with 90% of the attendees surveyed rating the sessions as “Great” and 82% saying that sessions provided them with

ideas, information, tools, or skills that will help them in their organizations.

Through its online Knowledge Center, HCF is a resource for valuable information about nonprofit organizations, their leadership and best practices. PowerPoint presentations and handouts from the conference are available at: HawaiiCommunityFoundation.org/about-us/advancing-nonprofit-excellence-conference-program. Information on upcoming events and webinars can be found at: HawaiiCommunityFoundation.org/KnowledgeCenter

HCF Initiatives & Programs

10 To learn more about HousingASAP and the Fresh Water Initiative, visit HawaiiCommunityFoundation.org

HousingASAPA thriving network of providers; a dedicated partnership of funders

Recognizing that there are a significant number of families with children under age 18 who are homeless in Hawai‘i, HCF spearheaded an innovative, three-year $4 million program called HousingASAP in 2014. Now in its first year, a coordinated network of eight agencies on Hawai‘i Island, Maui and O‘ahu is working to build both organizational and joint capacity to achieve this purpose:

• The goal of HousingASAP is to move more homeless families into stable housing faster and keep them there.

Making this possible is the commitment of 14 funders who have come together to achieve better outcomes for homeless families across our state.

The network’s impact on family homelessness is showing signs of early progress based on the 2015 State of Hawai'i Homeless Point-In-Time Count and the HousingASAP quarterly reports:

• 70% of homeless families in Hawai'i are located on O‘ahu.

• There is a 4% decrease in the number of homeless families over last year on O‘ahu.

• There are 2.5% fewer children who are homeless on O‘ahu.

• There is a 20% increase in the number of families that moved to permanent housing through the HousingASAP network.

Network members are beginning to make changes in their programs serving families and in their evaluation of those programs. To learn more about HousingASAP, visit HawaiiCommunityFoundation.org/HousingASAP

11

Fresh Water InitiativeRecent scientific findings documenting reduced rainfall, higher evaporation rates, and declining stream flows — not to mention California’s dire situation—have raised concern about long-term fresh water security for our islands. Couple these with climate change uncertainties and an ever-increasing population, and the result is a potential fresh water crisis of our own.

The Hawai‘i Fresh Water Initiative was launched by the Hawai‘i Community Foundation to bring together stakeholders from all sides of the issue —farmers, scientists, landowners, conservationists, and government officials —to convene as a blue ribbon Fresh Water Council.

The result? A Blueprint for Action with a goal of providing 100 million gallons a day of additional reliable fresh water supply by 2030 … and a commitment from members of the Council to continue working together to help innovate in the field and implement policy recommendations.

The team approach is already paying off. Before the ink was dry on the Blueprint, the Council helped support and pass three key state laws during the 2015 legislative session that will improve Hawai‘i’s ability to capture, reuse and store fresh water—making us all a little more secure.

You can read the full version of the Blueprint online at HawaiiCommunityFoundation.org/FreshWater

The three main tenets of the Blueprint are Conservation, Recharge and Reuse

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