UPDATEYOUR QUARTERLY NEWSLETTER FROM THE KALAMAZOO COMMUNITY FOUNDATION / ISSUE 3 2013

NO PLACE LIKE HOME ARCUS FOUNDATION DONATES DEPOT TO COMMUNITY FOUNDATION [PAGE THREE]

THOSE LITTLE LIBRARIES[PAGE FOUR]

EVERY VOICE MATTERS[PAGE FIVE]

IN THEIR WORDS: WES FREELAND AND BOB SALISBURY[PAGE SIX]

IN THIS ISSUE3 NO PLACE LIKE HOME Learn about the Arcus Foundation’s remarkable gift to us and how it will transform our work.

4 THOSE LITTLE LIBRARIES A look at the movement that promotes literacy and builds community, and the teen who brought it to Kalamazoo.

6 IN THEIR WORDS Q&A with Community Foundation team member Wes Freeland and Bob Salisbury, chairperson of the Community Foundation’s Financial Investment Committee.

8 HELLO, MY NAME IS... Meet Elena Mireles-Hill, a recent addition to our Community Investment team.

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2 KALAMAZOO COMMUNITY FOUNDATION ISSUE 3 2013

LOVE WHERE YOU LIVEIn Kalamazoo County — where we live — you can relax on a beach or hike in a forest. You can run a marathon, visit a farmers’ market, cheer on professional athletes, play golf, or take in a concert or play. You can sample a tasty offering at a locally-owned winery, micro brewery or eatery. You can discover a new artist at a monthly art event or annual art fair. You can explore an award-winning nature center, museum or library. All of these things make us love living here.

Now we want to know what YOU love about Kalamazoo County. Email us your high resolution (at least 300 dpi) images of what you love about Kalamazoo County and you may see it in a future issue of Update or on our Facebook timeline at facebook.com/kalfound. Be sure to include your name and a few words about why the person, place or thing you’ve captured makes you love where you live. Send your photos to Shannon Bronsink at sbronsink@kalfound.org.

We love the Barn Theatre in Augusta. Founded

in 1946, the Barn is one of the United States’

oldest equity resident summer-stock theatres.

Photo by Robert Neumann

ISSUE 3 2013 KALFOUND.ORG 3

ARCUS FOUNDATION GIVES COMMUNITY FOUNDATION A PERMANENT HOME

NO PLACE LIKE HOME

The Arcus Foundation, a global foundation dedicated to advancing social justice and conservation issues, will gift its downtown Kalamazoo office building, known as the Arcus Depot, to the Kalamazoo Community Foundation.

Arcus will donate the building and make a one-time grant of $1 million to the Community Foundation to support transition and renovation costs.

The Depot will become the new home of the Community Foundation — currently located in the Comerica Building in downtown Kalamazoo — in the second half of 2014.

The Depot, located on the corner of East Michigan Avenue and Pitcher Street, was built in 1874 as a railroad passenger and warehouse depot and was purchased in 2003 by Arcus founder and President Jon Stryker.

Stryker, a Kalamazoo native who trained as an architect, redeveloped the 10,000 square-foot building into office space for Arcus and other local nonprofits. The renovations earned a Historic Preservation Merit Award from Kalamazoo’s Historic Preservation Commission. The Depot is currently listed on the Michigan Register of Historic Places.

Arcus’ space needs in Kalamazoo have evolved over the years, and the foundation determined that it would no longer occupy the Depot.

“We wanted to ensure that the Depot would continue to serve the Kalamazoo community and that its architectural integrity would be maintained,” says Kevin Jennings, Arcus’ executive director. “The Kalamazoo Community Foundation emerged as the ideal steward of this community resource and the architectural legacy that the Depot represents, and we are delighted to give this important asset to the Community Foundation.”

According to Community Foundation President/CEO Carrie Pickett-Erway, “The value that having a permanent location will bring to our work is, in itself, tremendous. Making our home in the iconic Depot, a visible and accessible symbol of Kalamazoo’s history and promise, will deepen our connection to grantees, donors and community groups.”

“We could not be more grateful to Jon Stryker and the Arcus Foundation for their longstanding record of generosity to the Kalamazoo community, which will now include this extraordinary gift to our foundation,” she says.

Agencies currently housed in the Depot include Interfaith Strategy for Advocacy & Action in the Community (ISAAC), Kalamazoo River Watershed Council, Fair Housing Center of Kalamazoo County, Advocacy Services for Kids, and Parent-to-Parent. The Community Foundation is working with these agencies to assist with their transitions.

The Depot (located at 402 E. Michigan Ave. in downtown Kalamazoo) will

become the home of the Community Foundation in

the latter part of 2014.

Photo by Robert Neumann

If you love learning and libraries, Kalamazoo County is a great place to live. In fact, it’s home to libraries so small they fit on a pole.

Thanks to 14-year-old Hannah Lane-Davies and her family, the national Little Free Library movement has come to Kalamazoo. Hannah saw a LFL for the first time while on a trip to St. Paul in 2012. “It was love at first sight,” she says. “We looked online and saw there were only 12 LFLs in Michigan, and none were in Kalamazoo. So I knew it would be great for the community.”

What exactly is a Little Free Library? Basically, it’s a small decorated wooden box containing 30 to 40 books that sits on a post outdoors, usually in participants’ front yards or businesses. The books are free. People who pass by a LFL can take or leave a book anytime; they often add notes inside for other readers.

THOSE LITTLE LIBRARIES

4 KALAMAZOO COMMUNITY FOUNDATION ISSUE 3 2013

Hannah Lane-Davies and her Little Free Library.

The LFL movement was started in Hudson, Wis., in 2009 by Todd Bol and Rick Brooks to promote worldwide literacy and community building. When Hannah and her family opened their LFL in September 2012 at their home in the Westnedge Hill neighborhood, it was number 3,761 on the international list. Since then, 12 more Kalamazoo and Portage families have become official “stewards” of their own LFLs — with another seven to be installed by the end of summer.

“Hannah is adding a unique piece to the LFL movement,” Elizabeth Lane-Davies notes. “In July we had our first Kalamazoo/Portage stewards meeting, with 15 interested and active families.”

“Other communities have LFLs, but the stewards don’t necessarily know each other,” Hannah explains. “We’re trying to connect the local stewards so we can share resources and advice. We want to make sure this isn’t a ‘one-hit wonder’ project.”

The Lane-Davies family was able to help establish the original LFLs thanks, in part, to support from the Gretchen LaReau Memorial Fund of the Kalamazoo Community Foundation, an Advised Fund established in 1993 by the LaReau family in memory of their daughter.

“We’re very grateful to the Community Foundation, and especially to the LaReau family, for their interest and support,” Hannah says. “Things have come full circle as we’ve gotten to know the family. They set up their own LFL this summer. We have really enjoyed learning about Gretchen and her interests, especially how much she loved books. You could totally see her setting up her own LFL.”

ISSUE 3 2013 KALFOUND.ORG 5

The collection of stories includes: Michael Williams, first executive director of the Douglass Community Association, speaking with Buddy Hannah about the changes he has seen growing up, going to school, pursuing a career and the choices he has seen for African Americans living in Kalamazoo; Lois Richmond and Shirley Shane telling Sharon Carlson about the history of the Ladies’ Library Association; KVCC’s Marilyn Schlack answering Tom Thinnes’ questions about how the college has made an impact on the Kalamazoo community; and Jasmine Granville talking about her perspective on life before and after becoming a Kalamazoo Promise recipient.

Other stories are Krista Johnson, a past recipient of the Community Foundation’s Clarence L. Remynse Scholarship, talking with local attorney Dan DeMent about moving back to Kalamazoo after college to work as a nurse; Nate Fuller and Sister Ginnie Jones discussing the Bow in the Clouds conservation project; Judy Sarkozy

telling Dhera Strauss about how two PhDs learned to make bread and how Kalamazoo helped build and restore her bakery; and Warren Lawrence telling Christina Aubrey about his love for Vicksburg.

Also, Rachel Eagly talks to Sandra Glista about living with Aphasia; Elizabeth Upjohn Mason and Joel Orosz discuss philanthropy; Jim Van Zandt and Mark Riley talk about USTA Boys’ National Tennis Championships; Donald Parfet and Sydney Waldorf speak with Martha Parfet about Upjohn history; and Richard Hughey and Carol Snapp talk arts.

Jerry Albertson and Toni Thompson discuss trail ways; Deborah Droppers and Von Washington discuss area events; Chris Broadbent and Matt Lechel cover local food; Madelyn Pinder and Robert Gadwood talk science education; and Rev. Kenneth Schmidt and our own Carrie Pickett-Erway discuss diversity.

The Community Foundation looks forward to sharing these unique stories that show why we love where we live.

AN UPDATE ON AN EXCITING COLLABORATION WITH STORYCORPS

Every voice matters. That’s the philosophy of StoryCorps, the independent nonprofit whose mission is to provide people of all backgrounds and beliefs with the opportunity to record, share and preserve the stories of their lives.

“Like StoryCorps, we believe everyone has a story to tell, so we brought StoryCorps to Kalamazoo as part of our Love Where You Live campaign,” says Jeanne Grubb, a donor relations officer at the Community Foundation. “We wanted to create an ‘anthology’ of the stories of people from around Kalamazoo County to highlight our shared history, strong partnerships and rich community assets.”

The conversations — recorded in May — will be shared with the community in a variety of ways. A complete set of the conversations was also given to the Kalamazoo Valley Museum for its oral history collection.

EVERY VOICE MATTERS

WE DO THIS TO REMIND ONE ANOTHER OF OUR SHARED HUMANITY, STRENGTHEN AND BUILD THE CONNECTIONS BETWEEN PEOPLE, TEACH THE VALUE OF LISTENING, AND WEAVE INTO THE FABRIC OF OUR CULTURE THE UNDERSTANDING THAT EVERY LIFE MATTERS. STORYCORPS

How are the Kalamazoo Community Foundation’s investments handled? Since 2005, the Community Foundation has partnered with the City of Kalamazoo and Kalamazoo County, using a group of seven national investment management firms which invest its core assets. At June 30, core assets were $282 million, or 72 percent of our

IN THEIR WORDS: WES FREELAND AND BOB SALISBURY THE KALAMAZOO COMMUNITY FOUNDATION’S WES FREELAND AND BOB SALISBURY, CHAIRPERSON OF THE COMMUNITY FOUNDATION’S FINANCIAL INVESTMENT COMMITTEE, ANSWER QUESTIONS ABOUT OUR INVESTMENT PERFORMANCE.

$392 million in total assets as of June 30. These managers are directly accountable to the Financial Investment Committee, which in turn, is supported by an investment consultant.

What is the investment model? The model is the investment policy and strategy developed and managed by the

City/County/Foundation Investment Committee. The model began with the City’s retirement assets in 1981. Then in 1987, the County began using the same model for its retirement assets. The model was brought to the Community Foundation in 2005.

What is the value of a shared model? First, each of the institutions’ investment committees consists of the same members, although the Community Foundation’s Financial Investment Committee also includes a member of the board of trustees. Each of its members brings an extensive background and depth in the investment management field. Second, with very minor exceptions, each of the institutions retains the same investment managers and employs

the same asset allocations. Third, each of the entities shares a common investment consultant. Fourth, the three partners split the annual costs for due diligence work among the three organizations. Combined, about a billion dollars in assets are under management for the three entities. Finally, the CCFIC is a volunteer committee.

How do you benchmark investment performance? The Community Foundation’s Financial Investment Committee uses performance benchmarks relative to the asset allocation. Administratively, the Community Foundation compares its endowed asset performance to the community foundation field data-base quarterly, which is prepared by the Council on Foundations. Of the 700 community foundations in the U.S., an average of 70 to 170 respond to the quarter,

6 KALAMAZOO COMMUNITY FOUNDATION ISSUE 3 2013

Wes Freeland Bob Salisbury

year-to-date, one-, three-, five-, seven-, 10- and 15-year measurement periods. The Community Foundation also compares its performance to the public results of the National Association of College and University Business Officers, which monitors some 800 colleges and universities across the country annually at June 30.

How have the Community Foundation’s investments performed? Since the model’s 2005 implementation,

performance has consistently been within the upper or top quartile of the community foundation field. Additionally, the model has compared strongly to NACUBO’s average performance. Although we have only been using this investment model since latter 2005, it is important to remember that it has been time tested, virtually unchanged, for more than 30 years since it started with the City of Kalamazoo’s leadership and the support of The

Upjohn Company’s John Nelson who developed this model.

What about the future? While it is impossible to predict future investment performance, the Community Foundation’s board and committee are committed to its investment policy and strategy, a disciplined asset allocation policy, regular rebalancing, minimizing fees and expenses, and not reacting to near-term market pressures or new investment fads.

ISSUE 3 2013 KALFOUND.ORG 7

Investment performance is net of manager fees and derived from core Kalamazoo Community Foundation assets allocated into its two investment strategies. Historic performance for each is then derived from linkages to prior quarterly returns. Performance reflects prior changes in asset allocations while benchmarks assume current allocations. For more information about our investment performance, please contact Wes Freeland at 269.381.4416 or wfreeland@kalfound.org.

KALAMAZOO COMMUNITY FOUNDATION INVESTMENT PERFORMANCESECOND QUARTER 2013

Core Assets Qtr 2 YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs

Moderate Growth Performance

Actual

Benchmark

0.1%

–0.1%

6.8%

6.3%

15.9%

13.6%

13.1%

12.4%

7.7%

6.0%

6.0%

5.5%

Income and Growth Performance

Actual

Benchmark

1.0%

0.3%

6.2%

5.5%

10.6%

9.6%

11.3%

11.0%

8.1%

6.6%

7.3%

6.0%

FINANCIAL INVESTMENT COMMITTEE Members of the Financial Investment Committee serve without compensation and were chosen because of their community and professional knowledge and leadership.

Bob Salisbury Retired CFO, Pharmacia & Upjohn

Randy Eberts President, W.E. Upjohn Institute

Dean Bergy Corporate Secretary and Former CFO, Stryker Corp.

Dan DeMent Member, DeMent and Marquardt

Si Johnson Vice Chairperson, Kalamazoo Community Foundation Board of Trustees

La June Montgomery Tabron Senior Vice President/CFO and Treasurer, W.K. Kellogg Foundation

Jan Van Der Kley Vice President and Treasurer, Western Michigan University

ELENA MIRELES-HILL IS A RECENT ADDITION TO OUR COMMUNITY INVESTMENT TEAM. AFTER GROWING UP IN THE LOS ANGELES AREA ON THE UNITED STATES’ LEFT COAST AND PURSUING HER EDUCATION ON ITS RIGHT AT BOSTON COLLEGE, SHE AND HER HUSBAND DECIDED TO MAKE ITS MIDDLE THEIR HOME IN 2012.

KALAMAZOO COMMUNITY FOUNDATION151 South Rose Street, Suite 332Kalamazoo, MI 49007-4775

Nonprofit OrganizationU.S. Postage

PAIDKalamazoo, MI 49001

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This publication was printed on recycled paper with soy inks. When you are finished with it, please support our commitment to the environment by recycling it or passing it along to a friend.

Cover photo by Robert Neumann

HELLO, MY NAME IS... IS A REGULAR FEATURE

OF THIS NEWSLETTER AND IS DESIGNED TO HELP

YOU GET TO KNOW OUR TEAM AND WHAT WE LOVE

ABOUT OUR WORK AND THIS GREAT COMMUNITY

WE ALL CALL HOME.

HELLO, MY NAME IS...ELENA

WHAT DO YOU ACTUALLY DO ALL DAY? Work alongside people to learn and serve together for the greater good of Kalamazoo.

FAVORITE FLAVOR OF ICE CREAM Going outside the box: mango sorbet. Basically anything refreshing and fruity.

WHY DO YOU LOVE WHERE YOU LIVE? The unique sense of community and concern for one another.

WHAT’S THE BEST PART OF YOUR JOB? The relationships and endless possibilities for meaningful impact.

FAVORITE BOOK Life of the Beloved by Henri Nouwen

FAVORITE SMARTPHONE OR TABLET APP Map Quest, for which without, I would be lost. LITERALLY!

FAVORITE KALAMAZOOAN My husband, for whom if I had never met, I would not be living in Kalamazoo!

FAVORITE KALAMAZOO RESTAURANT Martini’s.

WHAT IS THE MOST-PLAYED SONG ON YOUR IPOD? Suavemente by Elvis Crespo

GUILTY PLEASURE Reality TV. I’ll leave it at that.

LOVE WHERE YOU LIVE