the foundationN E W S A N D V I E W S F R O M WAC O F O U N DAT I O N

Winter 2008

J. Sullivan Bond

E. B. Burleson

H. M. Fentress

Howard Hambleton

Hilton E. Howell

Walter Lacy, Jr.

Lee Lockwood

Jean McReynolds

Mrs. James Mixson

H. Hart Nance

Winthrop Seley

Joe L. Ward, Jr.

Current

Nancy Callan

David Dickson

Louis Englander

Jim Haller

Jim Hawkins

Lisa Jaynes

Beth Mayfield

William R. Pakis

Tom Salome

Maggie Stinnett

Fifty Years of Investing in Our Community

Board of T r u s t e e s

continued page 2

900 Austin Avenue, Suite 1000 Waco, TX 76701-1949

(254) 754-3404www.wacofoundation.org

Founding

Fifty years ago, a couple in Indiana made a decision that has made “a positive difference in the lives and future of the people in Waco and McLennan County” ever since. Mr. R. B. Parrott and his wife, Edith Heinze Parrott, decided that they would help set up a community foundation in Waco and would donate $30,000 in stock to establish its capital.

Inspired by the William James quote that “the great use of a life is to spend it for something that outlasts it,” the Parrots envisioned an organization modeled after the Indianapolis Foundation where donors would have the option to contribute to an unrestricted fund or create their own fund.

Mr. Parrott, a Waco native, was the son of Colonel Bob Parrott, an early pioneer and city council member who established the Provident State Bank. Around the turn of the century, twenty one year old R. B. Parrott left for New York where he became prominent on Wall Street. After the 1929 crash, he sold his interests and moved to Indianapolis where he built a successful group of insurance and investment firms.

After much long distance correspondence and local meetings, the Waco Perpetual Growth Foundation was established on September 19, 1958. A board of governors, comprised of prominent Waco citizens, was selected to direct the day-to-day operations and to distribute funding for community projects. The trust departments of three downtown banks were selected to supervise the investments of the Foundation and provide accounting and custodianship of the income. The decision was made not to hire full time staff; the Cooper Foundation generously allowed their executive director, Jerry Cartwright, to include management of the Waco Perpetual Growth Foundation in his responsibilities.

Mr. Parrott died in 1962 and his wife in 1974 without direct heirs; both are buried at Oakwood Cemetery. In his will, he arranged for the Foundation to receive an additional $311,000 upon her death. The amount of the bequest was based upon the assets the Foundation had accrued since its beginning.

The assets grew modestly until 1991, when the board of trustees was surprised to learn that Stephen Goldstein, a local citizen, had left $16 million to Waco Foundation (as it had become known). Mr. Goldstein, a musician who never married, was the only child of A. M. and Lenore Goldstein. His parents, along with his maternal grandfather, Sol Hirschberg, were very active in Waco’s civic affairs.

The Goldstein estate was settled in 1993 and, because of the large increase in assets, Jerry Burks was hired as the full time director. Under Mr. Burks’ guidance, the MAC Scholarship program was started in 1995 with Malcolm and Mary Ruth Duncan’s wish to establish a scholarship fund that would give every local student the opportunity to attend college.

Upon Mr. Burks’ 1997 retirement, Tom Collins, a Foundation board member since 1987, was asked to ser ve as execut ive

director. Mr. Collins did so until his retirement in 2007, when Ashley Allison became executive director.

The Foundation had been supporting McLennan County nonprofit agencies through grant making since the awarding of the first grant in 1963. They decided to further provide assistance in 2001 by creating the Community Grant Writer Program which assists local organizations in accessing funding from outside the county.

In 2007, the Board again received the surprising news that the Foundation was the recipient of a large bequest. Lyle Kay Masterson named the Waco

Foundation as the income beneficiary of a $6.5 million charitable remainder unitrust. This gift created a fund in memory of her mother Lyle Seley Masterson, a descendent of Waco’s prominent Seley family.

Today, the decision made by a couple in Indiana

is still making an impact. It is only through the philanthropic efforts of the Parrots, Mr. Goldstein, Ms. Masterson and countless other contributors that the Waco Foundation is able to continue making “a positive difference in the lives and future of the people in Waco and McLennan County.”

Lyle Seley Masterson and daughter Lyle Kay

Stephen Goldstein and mother Lenore

Past

Norman Adamson

Sharon Allison

Rick Bostwick

Jafus Cavil

Penny Chase

Jim Clifton

Tom Collins

Jean Darden

Virginia DuPuy

Jean Eastman

Woody Englander

Artie Giotes

Priscilla Gutierrez

Harry Harelik

Gay Lynn Hooks

David Horner

Bill Kelly

Luanne Klaras

David Lacy

Frank Levy

J. J. Mays

John McDonald

Ada Patton

Art Pertile

Al Pollard

Randy Preddy

Nelwyn Reagan

Norma Rhodes

David Smith

C. Cullen Smith

Jim Stewart

Pat Taggert

Hal Whitaker

Gerald Winchell

Esther Wolf

Board of T r u s t e e s

Dear Friends,

Over the years, community foundations have made positive impact on cities and neighborhoods by helping nonprofit organizations make a difference. I am sure that fifty years ago the Parrots never dreamed that their $30,000 gift would launch a foundation with assets now exceeding $60 million. More importantly, I think they would be extremely pleased with the knowledge that the Waco Foundation has benefited so many people.

Having grown up in Waco, I was vaguely aware of the Waco Foundation and its philanthropic efforts, but it was not until I began serving on the boards of nonprofit organizations that I become aware of the awarding of unrestricted fund grants to provide needed services in Waco and McLennan County.

Becoming a board member of the Waco Foundation gave me more insight into our mission. I realized we were more than a grant provider. We promote philanthropic endeavors by providing an efficient way for others to give, helping students realize their dream of higher education through the MAC program, and supporting the nonprofit sector by providing a community grant writer and a resource center.

I would like to offer a sincere thank you to all of the donors that have helped make the past fifty years such a success. If you would like to support the Waco Foundation with a contribution to our unrestricted fund, establish a donor advised fund, or contribute in some other manner, please do not hesitate to contact me or Executive Director Ashley Allison.

Together we can make a difference in our community.

Yours Truly,

Chairman of the Board

executive Directors

PASTJerome Cartwright

Jerry BurksTom Collins

CurrentAshley Allison

continued from page 1

In 2001, the board of trustees decided that in addition to directly funding organizations, they would offer support in other ways, including assistance in the acquisition of funds from other sources. This resulted in the creation of the Community Grant Writer Program, an endeavor that helps 501(c)3 organizations in McLennan County acquire funding from outside the county. Housed in the Grants Resource Center in the downtown library, the program is a collaborative partnership between the Waco Foundation, the City of Waco, and the Waco-McLennan County Library.

Since its inception under the guidance of Executive Director Tom Collins, Community Grant Writer Susan Duecy has provided a variety of beneficial services; for the past two years, she has been joined in the endeavor by Grant Research Assistant Lindsay Petersen.

The services offered include:• assistance in researching and writing grant proposals• notification of potential funding opportunities• training in use of nonprofit resources• identification of barriers to receiving funding• facilitation of collaborations between agencies• attendance with agencies at government proposal bidders’ conferences

Community Grant Writer Provides vital services to agencies

Older adults enjoy the fellowship and food provided at Central Texas Senior Ministry’s Sul Ross Senior Center. The Community Grant Writer Program staff is instrumental in the agency’s search for funding from outside of McLennan County.

For more information, please contact:Susan Duecy, Community Grant Writer sduecy@wacofoundation.orgLindsay Petersen, Grant Research Associate lindsay@wacofoundation.org254.750.5975

Aid Association for Lutherans $20,000

Allergan $2,000

Altrusa International Foundation $2,700

AmeriCorps VISTA $83,928

Bank of America $10,000

Criminal Justice Division—Victims of Crime Act $126,501

Covenant Foundation $1,000

Criminal Justice Division $240,816

Daughters of Charity $10,000

Department of Education $1,000,000

Hoblitzelle Foundation $37,000

Housing and Urban Development $3,569,832

M.D. Anderson Foundation $50,000

Mabee Foundation $250,000

PetSmart $6,500

Swalm Foundation $255,000

Target Foundation $2,500

Texas Council on Alcoholism and Drug Abuse $9,456,790

Texas Department of Health $11,664

Texas Department of Housing

and Community Affairs $351,070

Texas Education Agency $975,000

Texas Bar Association $15,200

Texas Book Festival $2,499

Texas Commission on the Arts $1,500

Telecommunications Infrastructure Fund Board $40,500

The Meadows Foundation $372,000

TJX Foundation $5,000

Texas Developmental Disabilities Council $247,434

United States Department of Agriculture/

Food and Nutrition Service $75,000

Criminal Justice Division—

Victims Assistance Discretionary Grants $36,735

Wolf Aviation Fund $1,500

The Community Grant Writer Program has assisted in theacquisition of over$17 million in fundsfrom outside of

Funders from outside McLennan County

McLennan County.

Total $17,259,669

Grant Making Continues a a Strong Legacy

The Waco Foundation began a legacy of meeting local needs in 1963 with the awarding of the first unrestricted fund grant to the Cherry Street YWCA for playground improvements. This tradition continues fifty years later as the Foundation annually distributes approximately one million dollars to various 501(c)3 organizations that serve the residents of McLennan County. In the spring and the fall, the Board of Trustees reviews requests for funding and awards grants based on the need for the project and the amount of funds available. In 2006, Cheryl Allen was selected to fill the newly created position of Grants Administrator, a move which allows the board to more closely monitor the disbursement of the funds. Funding priority is given to projects that:• serve disabled individuals, disadvantaged children and youth, low-income and traditionally marginalized populations• cannot be easily accomplished without the support of the Waco Foundation• result in an increase of funding from outside of McLennan County• strengthen the community’s vitality

For more information, please contact:Cheryl Allen, Grants Administratorcherylallen@wacofoundation.orgNational Lloyds Building900 Austin Avenue, Suite 1000Waco, TX 76701-1949254.855.2259

At Heart of Texas Therapeutic Riding Center, children and adults receive hippotherapy, an innovative program in which the movement of the horse is used to improve muscle tone, balance, posture, coordination, motor development, as well as emotional well-being, in individuals with disabilities.

Christian Women’s Job Corps$24,300 community coordinator position

Family Abuse Center, Inc. $4,600 transportation costs for children’s activities

Friends for Life$9,680 metronome for children’s educational therapy

Heart of Texas Therapeutic Riding Center$17,200 hippotherapy scholarships for individuals

McLennan County Children’s Protective Services Board$10,000 for items for foster children

Potter’s Vessel Ministries, Inc.$5,456 office equipment and computers

Rapoport Academy$50,000 Quinn Campus building renovation

Talitha Koum Institute$35,000 toddler teacher position and staff/volunteer background checks

The Salvation Army — Waco Corps $15,000 provides emergency shelter for women and children in crisis

Waco Center for Youth Volunteer Services Council$5,000 books for special needs library

Waco Founder Lions Foundation$50,000 roof repair

Waco Humane Society $8,771 computer upgrade

Waco Performing Arts Company$29,990 filler and cover for orchestra pit

Waco Southern Little League $20,000 building at ball field

Waco Symphony Association, Inc.$9,000 video equipment

WISD Outstanding Teachers $7,000 teacher awards

Youth Connection, Inc.$4,000 conference speaker

YMCA of Central Texas Doris Miller Branch$100,000 facility

Fall 2007 Grant Recipients

$404,997 was awarded to nonprofit organizations that serve the residents of McLennan County

Friends for Life’s Einstein Institute provides innovative therapy using an interactive metronome to assist learning disabled children and adults in increasing attention span, coordination, and reading and writing skills.

Grant Making Continues a a Strong Legacy

Potter’s Vessel helps individuals facing health care challenges by identifying available health resources, providing assistance in acquiring free and low cost pharmaceuticals, and implementing community wellness initiatives and programs.

Waco Humane Society provides animal shelter, advocates for animal welfare, and conducts educational programs. Annually they care for over 10,000 animals in the shelter and through the pet foster care program; currently they have 200 animals available for adoption.

MAC Scholarships Help Local Students Achieve Dreams

Each year, the MAC Scholarship Program helps students accomplish their dreams of pursuing higher education by providing tuition assistance to graduates of McLennan County high schools.

The vision for the program began in 1995 with Malcolm and Mary Ruth Duncan’s wish to establish an innovative scholarship fund that would give every local student the opportunity to attend college, despite their financial status. As the success of the program became apparent, the Duncans were joined by other educational proponents such as Mr. and Mrs. Clifton Robinson, Mr. and Mrs. Paul J. Meyer and Mr. and Mrs. Bernard Rapoport.

The program was initiated under the guidance of Executive Director Jerry Burks and Program Director Dot Snyder. Following Dr. Snyder’s tenure, Bob Balshaw briefly served as director, followed by Robbie Stabeno in 1998.

In addition to overseeing the distribution of tuition funds, Ms. Stabeno visits each public high school in the county, letting students know of the scholarship opportunity, providing general financial aid information and offering assistance in completing the Free Application for Federal Student Aid (FAFSA).

To be eligible for the program, students must apply their senior year in high school and have a family income of $50,000 or less. Students attending MCC or TSTC may receive

For more information or to contribute to the program, please contact:Robbie Stabeno, MAC Scholarship Program Director rstabeno@wacofoundation.orgNational Lloyds Building900 Austin Avenue, Suite 1000Waco, TX 76701-1949254.752.9457

MAC Scholarship Program Director Robbie Stabeno and Counselor Sharon Blanchard visit with each Robinson High School senior to make sure the students have the information needed to make a college education a reality.

tuition assistance for four years of college; individuals not attending those school s rece ive scholarships only for the final two years of college.

Since its inception, the program has provided $3,379,795 million in tuition assistance to McLen-nan County students and has helped numerous students complete the FAFSA, an en-deavor which resulted in more than $22 million in federal and state aid being awarded locally.

“As a MAC Scholarship participant, I knew that the program really helped me, but it wasn’t until I became an intern at the Foundation that I realized what a big difference it makes for students that are trying to get degrees.” Angie Vega, University High School Graduate

The success of the Waco Foundation lies not only in the vision of the Parrots, but also in the initiative of local nonprofit organizations that saw early on the benefit of placing funds with us.

In his will, Mr. Parrott arranged for us to receive additional money based upon the assets accrued. At that time, Historic Waco Foundation, Duncan Foundation, and McLennan County

Medical Society established funds; a decision which benefited not only their organizations, but also the community because the increase in assets resulted in a larger bequest.

As time has progressed, more agencies have seen the benefit of having funds with the Foundation. We currently

Ashley AllisonExecutive Director

From the Director’s Deskhave 58 funds that have been set up by an agency or one of its benefactors. These entities realize that having funds with us reduces the amount of paperwork involved, lessens the stress of overseeing investments, and demonstrates to the public that their money is wisely managed. They also appreciate our publicizing of the fund, which keeps them in the public eye without having to engage in active marketing. The funds incur an annual fee of .75% to cover administrative and investment costs.

Please contact me for information regarding setting up a fund or contributing to one of the designated funds listed below.

Ashley Allison, Executive Director a.allison@wacofoundation.orgNational Lloyds Building900 Austin Avenue, Suite 1000 • Waco, TX 76701-1949254.754.3404

Investment Consultant to Assist Waco Foundation in Overseeing InvestmentsThe Waco Foundation Board of Directors recently engaged Colonial Consulting LLC as an investment consultant. For the past 26 years, the firm has primarily served nonprofit organizations and currently has 80 clients, 25 of which are community foundations, with a cumulative asset base of approximately $19 billion. Brian F. Crawford, CFA, Senior Consultant, serves as the primary contact for the Foundation. Mr. Crawford has a Bachelor of Arts in Finance and Accounting from the University of Missouri and a Masters in Finance from Boston University; prior to joining Colonial Consulting LLC he managed the investment research team at Bank of America.

Designated Funds provide an ongoing source of support for a specific charitable organization.

Advocacy Center for Crime Victims and Children FundAnnie Hattie Turner FundArt Center FundBoys & Girls Club FundCameron Park Zoological and Botanical Society FundCamp Fire USA, Tejas Council — Pat and Goodson McKee FundCaritas — Esther and Eugene Jud Endowment FundCommunity Cancer Association Endowment FundCommunity Race Relations Coalition (CRRC) Endowment FundCompassion Ministries Endowment FundDavid and Lorraine B. Hoppenstein FundDr. Brian Aynesworth Memorial Library FundDr Pepper Museum and Free Enterprise Institute FundDuncan Fund (benefiting Historic Waco Foundation)Family Counseling and Children’s Services FundFamily Health Center FundFirst Baptist Church of Waco Foundation FundFirst Baptist Mission FundFuzzy Friends Rescue Endowment FundGirl Scouts — Bluebonnet Council, Inc. Endowment FundHistoric Waco FundHumane Society — Animal Shelter FundJ. Carroll and Doris W. Wood FundJunior League of Waco Clifton House FundJunior League of Waco Community Projects FundMark and Esther Wolf Charitable Fund

McLennan Community College Foundation FundMcLennan County Peace Officers Memorial FundMcLennan County Youth Collaboration (MCYC) FundMelanie Popejoy Girls’ Choir FundMission Waco Endowment FundPitts Fund (benefiting Waco Habitat for Humanity)Planned Parenthood of Central Texas Endowment FundRodney and Nan Brown Fund (benefiting Seventh & James Baptist Church)Senior Ministry FundThe Freeman Center FundUnited Way of Waco-McLennan County Unrestricted FundVanguard Building Maintenance Endowment FundVanguard Foundation Endowment FundWaco Civic Theater FundWaco Cultural Arts Fest — Branding the Brazos FundWaco Family “Y” FundWaco Family YMCA Building FundWaco Foundation Community Grant Writer FundWaco ISD Education Foundation Endowment FundWaco-McLennan County Library — Margin of Excellence FundWaco Performing Arts Company, Inc. Endowment FundWaco Public Library FundWaco Symphony Association FundWaco Symphony Council Conductor’s Chair FundWaco Symphony Martha G. Beard Concertmaster FundWoodway Foundation Endowment Fund

Half a century of making a difference

GRANT MAKING50 years of grant making$24,306,804 in funding to nonprofit organizations$2,731,765 arts and culture$8,524,748 education$678,522 environment$10,279,064 community and social services$2,069,405 medical and health services

MAC SChOLARShIP13 years of providing tuition assistance$ 3,379,795 in scholarships$22 million in federal and state aid through assistance with FAFSA

COMMUNITy GRANT WRITER7 years of assisting in the acquisition of outside funding$17 million in federal, state, corporate, and private grant funding

900 Austin Avenue, Suite 1000 Waco, TX 76701-1949

NONPROFITORGANIZATIONU.S. POSTAGE

PAIDPERMIT #119

WACO, TX

The mission of the Waco Foundation is to make a positive difference in the lives and future of the people who live in Waco and McLennan County through grant making, promotion of community

philanthropy, and support of the not-for-profit sector.