2013-10-15T11:05:09-05:00 2012-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2012-01-01 205583324 UNITED STATES ENDOWMENT FOR FORESTRY AND COMMUNITIES INC UNIT 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 8642337646 2013-10-15 1 AMY BIBBY P00445891 8282542254 2012 2016-03-07 17:11:31Z CARLTON OWEN 908 EAST NORTH STREET GREENVILLE SC 29601 127136208 0 X WWW.USENDOWMENT.ORG X 2006 DE TO ADVANCE POSITIVE CHANGE FOR THE NATION'S WORKING FORESTS AND FOREST-RELIANT COMMUNITIES 12 11 8 25 0 0 3136246 2222177 0 0 -882040 -7052309 0 0 2254206 -4830132 4569846 5072434 0 0 912409 1000669 0 0 0 1043719 665584 6525974 6738687 -4271768 -11568819 180347039 192612033 2673211 2347298 177673828 190264735 X THE ENDOWMENT WORKS COLLABORATIVELY WITH PARTNERS IN THE PUBLIC AND PRIVATE SECTORS TO ADVANCE SYSTEMIC, TRANSFORMATIVE AND SUSTAINABLE CHANGE FOR THE HEALTH AND VITALITY OF THE NATION'S WORKING FORESTS AND FOREST RELIANT COMMUNITIES. 0 0 5995908 5072434 THE ENDOWMENT SEEKS TO ADVANCE ITS MISSION USING A SIMPLY DEPICTED "THEORY OF CHANGE" THAT FOCUSES ON WORK IN THREE AREAS: RETAINING AND RESTORING HEALTHY WORKING FORESTS; PROMOTING AND CAPTURING MULTIPLE VALUE STREAMS; AND ENHANCING COMMUNITY CAPACITY, COLLABORATION, AND LEADERSHIP. THE ENDOWMENT DEPLOYS ITS WORK THROUGH FIVE PRIMARY INITIATIVES EACH OF WHICH SUPPORTS A NUMBER OF PROJECTS OR ACTIVITIES. I. HEALTHY WATERSHED THROUGH HEALTHY FORESTS: CONNECTING DOWNSTREAM WATER CONSUMERS WITH UPSTREAM FOREST OWNERS WITH THE INTENT TO ADVANCE OVERALL WATERSHED HEALTH AND QUALITY BY ENSURING CONSERVATION OF WORKING FORESTS. MUCH OF THIS WORK IS JOINTLY-FUNDED IN PARTNERSHIP WITH THE USDA NATURAL RESOURCES CONSERVATION SERVICE. PILOT PROJECTS ARE BEING DEPLOYED IN THE GREATER-PHILADELPHIA, RALEIGH, AND CHARLOTTESVILLE, VA WATERSHEDS. A NEW INIATIVE IS IN THE SAVANNAH RIVER BASIN. II. WOODY BIOMASS/WOOD-TO-ENERGY IS A JOINT-VENTURE APPROACH TO DEVELOPING SUSTAINABLE MARKETS FOR SMALL DIAMATER, DEAD & DYING WOOD TO ENHANCE FOREST HEALTH WHILE ADVANCING FAMILY-SUPPORTING JOBS IN RURAL COMMUNITIES THROUGH DOMESTIC GREEN ENERGY PRODUCTION. THIS WORK IS BASED IN A JOINT-VENTURE WITH THE USDA FOREST SERV ICE THAT HAS LED TO TWO GRANTS AND FIVE PROGRAM RELATED INVESTMENTS IN SMALL FOR-PROFIT BUSINESSES. III. FOREST HEALTH THROUGH BIOTECHNOLOGY (FHI). VIA A PARTNERSHIP WITH THE USDA FOREST SERVICE AND DUKE ENERGY, THE PRIMARY FUNDING PARTNERS, THE ENDOWMENT IS PLUMBING THE POTENTIAL OF MODERN FOREST BIOTECHNOLOGY TO AID IN ADDRESSING THE BURGEONING FOREST HEALTH PROBLEM CAUSES BY ENDEMIC AS WELL AS EXOTIC PESTS AND DISEASES. WORK UNDER FHI IS PROGRESSING ALONG THREE BRAIDED PRONGS -- 1. SCIENCE (WITH MAJOR RESEARCH UNDERWAY AT A FOREST SERIVCE LAB IN MISSISSIPPI AS WELL AS THE UNIVERSITY OF GEORGIA; PENN STATE; AND STATE UNIVERSITY OF NEW YORK AT SYRACUSE); 2. REGULATORY (WHERE WORK AND DISCUSSIONS ARE UNDERWAY WITH KEY FEDERAL AGENCIES WITH OVERSIGHT OF BIOTECHNOLOGY); AND 3. SOCIAL AND ENVIRONMENTAL CONCERS). THE MULTI-YEAR INITIATIVE IS SLATED TO CONTINUE THRU 2015. IV. GROWING MARKETS FOR SUSTAINABLY PRODUCED FOREST PRODUCTS. THE ENDOWMENT IS WORKING WITH AND ACROSS THREE SECTORS OF THE FOREST PRODUCTS INDUSTRY TO DETERMINE THE POTENTIAL OF USDA RESEARCH AND PROMOTION PROGRAMS (COMMODITY CHECK-OFFS) TO GROW MARKETS FOR SOFTWOOD LUMBER; PAPER AND PACKAGING; AND HARDWOOD LUMBER, HARDWOOD PLYWOOD, AND HARDWOOD FLOORING. V. FOREST INVESTMENT ZONES. THE ENDOWMENT IS USING THREE PILOT PROJECTS TO ASSESS THE POTENTIAL OF A REGIONAL APPROACH TO ADVANCE ITS MISSION. THE THREE AREAS (DRY FOREST ZONE -- CA/OR); CENTRAL APPALACHIAN ZONE -- TN/WV/OH; AND NORTHEAST--NY/NH/VT/ME) TO AID RURAL COMMUNITIES IN WORKING FOREST CONSERVATION AND RETENTION/RESTORATION OF WORKING FORESTS. THE FIVE YEAR INITIATIVE IS DESIGNED TO RUN THROUGH 2013. VI. HEALTHLY WORKING FORESTS. THIS "CATCH-ALL" INITIATIVE INCLUDES A NUMBER OF PROJECTS INCLUDING THE PARTERNSHIP FOR SOUTHERN FORESTLAND CONSERVATION; NATIONAL CONSERVATION EASEMENT DATABASE; AND WORKING FORESTS COALITION, EACH OF WHICH ARE DESIGNED TO AID IN RETENTION AND RESTORATION OF HEALTHY WORKING FORESTS. A NEW INIATIVE IS FOSTERING COLLABORATION TO RESTORE FORESTS IN THE MISSISIPPI RIVER BASIN. 5995908 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 8 0 1 8 1 0 0 0 0 0 0 0 0 0 0 X 12 11 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 DE SC X X X SIGNE C CANN 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 40.00 X X 273878 0 48473 MACK HOGANS 5.00 X X 0 0 0 MIL DUNCAN 1.00 X X 0 0 0 DUANE MCDOUGALL 1.00 X X 0 0 0 PEGGY CLARK 1.00 X 0 0 0 TAMAR DATAN 1.00 X 0 0 0 DAVID DODSON 1.00 X 0 0 0 JIM FARRELL 1.00 X 0 0 0 KENT GILGES 1.00 X 0 0 0 JOHN KULHAVI 1.00 X 0 0 0 CHUCK LEAVELL 1.00 X 0 0 0 JAMES RINEHART 1.00 X 0 0 0 KARL STAUBER 1.00 X 0 0 0 JOHN VOIGHTMAN 1.00 X 0 0 0 JOHN WEAVER 1.00 X 0 0 0 PETER STANGEL 40.00 X 193311 0 40032 ALAN MCGREGOR 40.00 X 122337 0 25877 589526 0 114382 3 0 1 0 0 1800815 421362 2222177 2326564 2326564 122587467 131966340 -9378873 -9378873 -9378873 -4830132 0 0 -7052309 5072434 5072434 282672 226138 56534 513113 309916 203197 77773 52389 25384 86195 58062 28133 40916 27562 13354 18000 18000 52848 52848 190287 190287 37637 37637 85752 81571 4181 32146 32146 83657 28169 55488 9935 9935 11628 11628 BAD DEBT EXPENSE 139667 139667 MISCELLANEOUS 4027 4027 6738687 5995908 742779 0 1534493 1870976 342954 565131 2050037 9138202 13961 10976 461895 25658 452442 436237 91372729 119103850 82366173 58443911 2214250 3042750 180347039 192612033 1166332 1493200 1169794 535410 337085 318688 2673211 2347298 X -22389677 -10071700 63505 336435 200000000 200000000 177673828 190264735 180347039 192612033 X -11568819 24336455 -176729 X X 0 1 X 1 1 1 X 86000 1724195 2553966 3136246 2222177 9722584 86000 1724195 2553966 3136246 2222177 9722584 1065653 8656931 3523031 3059301 2426273 2943697 2326564 14278866 900 214993 215893 24217343 0.35750 0.92760 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 175738902 16944377 6502701 186180578 191040779 -10535319 4766558 175738902 178689176 16519791 3992541 175647 191040779 151473881 29713616 2498321 178689176 214017399 -61203745 1339773 151473881 1.00000 0 0 137794 137794 324101 25658 298443 436237 7967124 F FIXED INCOME 31037137 F ALTERNATIVE INVESTMENTS 19439650 F 58443911 X DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ORGANIZATION WAS FUNDED WITH A ONE-TIME INFUSION OF $200 MILLION UNDER THE TERMS OF THE SOFTWOOD LUMBER AGREEMENT BETWEEN THE UNITED STATES AND CANADA. EARNINGS FROM THE ENDOWMENT CAN BE USED TO FUND THE ORGANIZATION'S PURPOSES OF SUPPORTING EDUCATIONAL AND CHARITABLE CAUSES IN TIMBER-RELIANT COMMUNITIES, EDUCATIONAL AND PUBLIC-INTEREST PROJECTS ADDRESSING FOREST MANAGEMENT ISSUES THAT AFFECT TIMBER-RELIANT COMMUNITIES, OR THE SUSTAINABILITY OF FORESTS AS SOURCES OF BUILDING MATERIALS, WILDLIFE HABITAT, BIO-ENERGY, RECREATION, AND OTHER VALUES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ENDOWMENT HAS OBTAINED NONPROFIT STATUS UNDER INTERNAL REVENUE CODE SECTION 501(C)(3), AND AS SUCH, IS EXEMPT FROM INCOME TAXES EXCEPT ON UNRELATED BUSINESS INCOME. ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION OR LIABILITY FOR FEDERAL AND STATE INCOME TAXES. THE ENDOWMENT HAS DETERMINED THAT THERE ARE NO MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF DECEMBER 31, 2012. FISCAL YEARS ENDING ON OR AFTER DECEMBER 31, 2009, REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. 1 INSTITUTE OF FOREST BIOTECHNOLOGY 140 PRESTON EXECUTIVE DR CARY NC 27513 562278107 501(C)(3) 198932 BIOTECHNOLOGY: FOREST GENETICS UNIVERSITY OF GA RESEARCH FOUNDATION 621 BOYD GRAD STUDIES RESEARCH CENTER ATHENS GA 306027411 581353149 501(C)(3) 328060 BIOTECHNOLOGY: FOREST GENETICS PENNSYLVANIA STATE UNIVERSITY SCHOOL OF FOREST RESOURCES UNIVERSITY PARK PA 16802 246000376 501(C)(3) 172969 BIOTECHNOLOGY: FOREST GENETICS RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NY 35 STATE ST ALBANY NY 12207 141368361 501(C)(3) 280190 BIOTECHNOLOGY: FOREST GENETICS THE CONVERSVATION FUND PO BOX 271 CHAPEL HILL NC 27514 521388917 501(C)(3) 394269 SOUTHERN FORESTLAND CONSERVATION SUSTAINABLE NORTHWEST 813 SW ALDER STE 500 PORTLAND OR 97205 931152222 501(C)(3) 250000 SUSTAINABLE FORESTRY & VALUE STREAMS NORTHERN FOREST CENTER PO BOX 210 CONCORD NH 03302 223458955 501(C)(3) 250000 SUSTAINABLE FORESTRY & VALUE STREAMS MOUNTAIN ASSOCIATION FOR COMMUNITY ECONOMIC DEVELOPMENT 433 CHESTNUT BEREA KY 40403 310900246 501(C)(3) 250000 SUSTAINABLE FORESTRY & VALUE STREAMS THE TRUST FOR PUBLIC LAND 101 MONTGOMERY ST STE 900 SAN FRANCISCO CA 94105 237222333 501(C)(3) 50298 CONSERVATION EASEMENT DATABASE PINCHOT INSTITUTE FOR CONSERVATION 1616 P STREET NW STE 100 WASHINGTON DC 20036 521935342 501(C)(3) 739190 HEALTHY WATERSHEDS CONSERVATION TRUST FOR NC 1028 WASHINGTON ST RALEIGH NC 27605 581552188 501(C)(3) 138509 HEALTHY WATERSHEDS VIRGINIA DEPT OF FORESTRY 900 NATURAL RESOURCES DR STE 800 CHARLOTTESVILLE VA 22903 GOVERNMENT 217182 HEALTHY WATERSHEDSHEALTHY WATERSHEDS NC STATE UNIVERSITY 2200 HILLSBOROUGH RALEIGH NC 276957214 566000075 GOVERNMENT 115499 WOODY BIOMASS/ WOOD-TO-ENERGY ENVIRONMENTAL DEFENSE FUND 257 PARK AVE SOUTH NY NY 10010 116107128 501(C)(3) 165194 WOODY BIOMASS/ WOOD-TO-ENERGY G-4 INSIGHTS INC 7966 WINSTON ST BURNABY CA 125000 WOODY BIOMASS/ WOOD-TO-ENERGY DOVETAIL PARTNERS 528 HENNEPIN AVE S7 MINNEAPOLIS MN 55403 522409510 501(C)(3) 143501 WOODY BIOMASS/ WOOD-TO-ENERGY OPEN SPACE INSTITUTE 1350 BROADWAY S101 NEW YORK NY 10018 521053406 501(C)(3) 88000 WOODY BIOMASS/ WOOD-TO-ENERGY SOCIETY OF AMERICAN FORESTERS 5400 GORSVENER LAND BETHESDA MD 20814 530204630 501(C)(3) 36887 WOODY BIOMASS/ WOOD-TO-ENERGY WORLD RESOURCES INSTITUTE 10 G ST NE S 800 WASHINGTON DC 20002 521257057 501(C)(3) 48000 WOODY BIOMASS/ WOOD-TO-ENERGY 18 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: GRANTEES ARE TYPICALLY SELECTED FROM SUBMISSIONS IN RESPONSE TO COMPETITIVE REQUESTS FOR PROPOSALS PROCESSES. EACH PROJECT HAS A DIFFERENT SET OF CRITERIA. ALL GRANTEES OPERATE WITH AN AGREED-UPON WORKPLAN AND DELIVERABLES FOR EACH PROJECT. FUNDS ARE DISBURSED BASED UPON MONITORING OF PROGRESS AND THE AGREEMENT BETWEEN THE GRANTEE AND THE ENDOWMENT OF SATISFACTORY ACCOMPLISHMENTS PER THE AWARD CONTRACT. THE ORGANIZATION'S PROGRAM-RELATED INVESTMENTS ARE MADE UNDER THE DIRECTION OF THE BOARD OF DIRECTORS. ALL INVESTMENTS ARE WITH ORGANIZATIONS THAT SUPPORT THE US ENDOWMENT FOR FORESTRY AND COMMUNITIES' PURPOSE AND GOALS. THE INVESTMENTS ARE MONITORED BY THE BOARD OF DIRECTORS. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 CARLTON OWEN 273878 0 0 0 0 0 27500 0 20973 0 322351 0 0 0 PETER STANGEL 193311 0 0 0 0 0 22500 0 17532 0 233343 0 0 0 PART I, LINE 1A THE ORGANIZATION PAID $260 IN 2012 FOR LODGING OUT-OF-TOWN STAFF IN A PERSONAL RESIDENCE DURING TRIPS TO GREENVILLE. THE RATE PAID WAS $20 PER NIGHT. FORM 990, PART VI, SECTION B, LINE 11 THE ENTIRE BOARD OF DIRECTORS WILL BE PROVIDED A COPY OF THE DRAFT FORM 990. REVIEW AND DISCUSSION OF THE CONTENTS WILL BE LED BY THE AUDIT COMMITTEE AND THE PRESIDENT & CEO. ALSO, OUR LEAD AUDIT PARTNER FREQUENTLY WILL BE AT THE MEETING TO DISCUSS DETAILS. THE BOARD WILL THEN FORMALLY APPROVE THE FORM 990 BEFORE IT IS SUBMITTED. FORM 990, PART VI, SECTION B, LINE 12C AT EVERY MEETING OF THE BOARD OF DIRECTORS, BEFORE ANY ACTION IS TAKEN ON A PARTICULAR TOPIC, MEMBERS ARE ASKED TO NOTE FOR THE RECORD ANY AREAS OF POTENIAL CONFLICT. ANNUALLY, EACH MEMBER OF THE BOARD AND STAFF ARE ASKED TO REVIEW AND SIGN A COPY OF THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 OFFICER-LEVEL SALARIES ARE ESTABLISHED BASED UPON THE EDUCATION, EXPERIENCE AND OTHER QUALIFICATIONS OF EACH INDIVIDUAL AND BENCHMARKED AGAINST THE PAY OF SIMILAR POSITIONS WITHIN NOT-FOR-PROFITS AS A CLASS (E.G. AVERAGE ANNUAL SALARY OF WASHINGTON, DC-BASED NGOS) AND A MORE DEFINED GROUP OF NOT-FOR-PROFITS "PEER" ORGANIZATIONS. SALARIES OF ALL STAFF, WITH THE EXCEPTION OF THE CEO, ARE ESTABLISHED USING THESE BENCHMARKS AND ADMINISTERED BY THE CEO WITH BOARD REVIEW/APPROVAL ON EACH EMPLOYEE'S ANNIVERSARY DATE WITH THE ENDOWMENT. IN THE CASE OF THE CEO, THE BOARD OF DIRECTORS REVIEWS THE CEO'S PAY AND BENEFITS AT LEAST ANNUALLY. THE ENTIRE PAY/BENEFITS PACKAGE IS TESTED IN A REVIEW OF PEER GROUP AND OTHER BENCHMARKS IN A SCAN ADMINISTERED BY THE AUDIT COMMITTEE AND PERIODICALLY REVIEWED BY OUTSIDE COUNSEL AND/OR A BENEFITS CONSULTANT. FORM 990, PART VI, SECTION C, LINE 18 COPIES OF THE ORGANIZATION'S FORM 990 IS AVAILABLE ON THE ORGANIZATIONAL WEBSITE AND WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 COPIES OF ALL GOVERNANCE DOCUMENTS -- CHARTER, BYLAWS, STEWARDSHIP PRINCIPLES, VALUES -- ARE AVAILABLE ON THE ORGANIZATIONAL WEBSITE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: EQUITY IN SUBSIDIARY -176,729. FORM 990, PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. COMMUNITY WEALTH THROUGH FORESTRY INC 320362399 INVESTMENT GA US ENDOWMENT FOR FORESTRY AND COMMUNITIES INC C 5893 903774 1.00000 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 COMMUNITY WEALTH THROUGH FORESTRY B 1270500 COMMUNITY WEALTH THROUGH FORESTRY D 260000