2012-10-30T14:55:43-05:00 2011-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2011-01-01 205583324 UNITED STATES ENDOWMENT FOR FORESTRY AND COMMUNITIES INC UNIT 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 8642337646 2012-10-30 1 AMY BIBBY P00445891 8282542254 2011 2016-02-24 21:20:13Z CARLTON OWEN 908 EAST NORTH STREET GREENVILLE SC 29601 145742461 0 X WWW.USENDOWMENT.ORG X 2006 DE TO ADVANCE POSITIVE CHANGE FOR THE NATION'S WORKING FORESTS AND FOREST-RELIANT COMMUNITIES 13 12 8 0 0 0 2553966 3136246 0 0 2426273 -882040 0 0 4980239 2254206 5085116 4569846 0 0 781140 912409 0 0 0 862654 1043719 6728910 6525974 -1748671 -4271768 193315878 180347039 1681715 2673211 191634163 177673828 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 5893004 4569846 0 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 SIX PRIMARY INITIATIVES EACH OF WHICH SUPPORTS A NUMBER OF PROJECTS OR ACTIVITIES. I. HEALTHY WATERSHEDS 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. THE ENDOWMENT ALSO HOSTED A "CONVENING" OF EXPERTS FROM ACROSS THE NATION TO DETERMINE HOW TO FURTHER DEVELOP AND ADVANCE THIS WORK. II. WOODY BIOMASS/WOOD-TO-ENERGY IS A JOINT-VENTURE APPROACH TO DEVELOPING SUSTAINABLE MARKETS FOR SMALL DIAMETER, 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 SERVICE THAT HAS LED TO TWO GRANTS AND SIX 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 CAUSED 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 CONCERNS). THE THREE-YEAR INITIATIVE IS SLATED TO END IN 2012. 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. HEALTHY 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. 5893004 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 0 0 0 0 1 18 0 1 8 1 0 0 0 0 0 0 0 0 0 0 X 13 12 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 DE X X X FLORENCE COLBY 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 40.00 X X 263380 0 46842 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 JOHN KULHAVI 1.00 X 0 0 0 CHUCK LEAVELL 1.00 X 0 0 0 BRUCE MILES 1.00 X 0 0 0 JAMES RINEHART 1.00 X 0 0 0 KARL STAUBER 1.00 X 0 0 0 JOHN WEAVER 1.00 X 0 0 0 PETER STANGEL 40.00 X 191935 0 38573 ALAN MCGREGOR 40.00 X 120812 0 23557 576127 0 108972 3 0 1 0 B GRACE TERPSTRA TERPSTRA ASSOCIATES 1211 CONNECTICUT AVE NW WASHINGTON DC 20036 CONSULTANT - HARDWOOD CHECK OFF 175226 1 2806286 329960 14030 3136246 2943697 2943697 139662518 143488255 -3825737 -3825737 -3825737 2254206 0 0 -882040 4569846 4569846 271800 217440 54360 470106 303427 166679 170503 119011 51492 13897 13897 37660 37660 194212 194212 494770 479875 14895 38341 33084 5257 29329 29329 136473 103196 33277 5086 5086 16087 16087 BAD DEBT EXPENSE 67125 67125 MISCELLANEOUS 10739 10739 6525974 5893004 632970 0 1479174 1534493 602651 342954 2755113 2050037 8604 13961 461895 9453 198862 452442 104591609 91372729 83034365 82366173 645500 2214250 193315878 180347039 733468 1166332 948247 1169794 337085 1681715 2673211 X -8575764 -22389677 209927 63505 200000000 200000000 191634163 177673828 193315878 180347039 X -4271768 -9688567 X 0 1 1 X 1 1 X 200041425 86000 1724195 2553966 3136246 207541832 200041425 86000 1724195 2553966 3136246 207541832 207541832 4030629 3523031 3059301 2426273 2943697 15982931 6003 900 214993 221896 223746659 0.92760 0.93910 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 191495449 -10535319 3148994 177811136 178689176 16519791 3992541 191495449 151473881 29713616 2498321 178689176 214017399 -61203745 1339773 151473881 1.00000 0 0 137794 137794 324101 9453 314648 452442 17153238 F FIXED INCOME 25022729 F ALTERNATIVE INVESTMENTS 40190206 F 82366173 2254206 6525974 -4271768 -9459067 -229500 -9688567 -13960335 -7489075 -9459067 -90002 -9549069 2059994 194212 194212 2254206 6341660 9898 9898 6331762 194212 194212 6525974 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: 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, 2011. FISCAL YEARS ENDING ON OR AFTER DECEMBER 31, 2008, REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. PART XI, LINE 8 - OTHER ADJUSTMENTS: CAPITAL STOCK IN CWF -229,500. PART XII, LINE 2D - OTHER ADJUSTMENTS: EQUITY LOSS IN NORTHSTAR -90,002. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 194,212. PART XIII, LINE 2D - OTHER ADJUSTMENTS: CWF EXPENSES 9,898. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 194,212. 1 INSTITUTE OF FOREST BIOTECHNOLOGY 140 PRESTON EXECUTIVE DR CARY NC 27513 562278107 501(C)(3) 292513 BIOTECHNOLOGY: FOREST GENETICS UNIVERSITY OF GA RESEARCH FOUNDATION 621 BOYD GRAD STUDIES RESEARCH CENTER ATHENS GA 306027411 581353149 501(C)(3) 156000 BIOTECHNOLOGY: FOREST GENETICS PENNSYLVANIA STATE UNIVERSITY SCHOOL OF FOREST RESOURCES UNIVERSITY PARK PA 16802 246000376 501(C)(3) 529184 BIOTECHNOLOGY: FOREST GENETICS RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NY 35 STATE ST ALBANY NY 12207 141368361 501(C)(3) 345333 BIOTECHNOLOGY: FOREST GENETICS UNITED STATES DEPT OF AGRICULTURE FOREST SERVICE SOUTHER RESEARCH STATION 23332 OLD MISSISSIPPI 67 SAUCIER MS 39574 GOVERNMENT 212679 BIOTECHNOLOGY: FOREST GENETICS THE CONVERSVATION FUND PO BOX 271 CHAPEL HILL NC 27514 521388917 501(C)(3) 76317 SOUTHERN FORESTLAND CONSERVATION COUNCIL ON FOUNDATIONS PO BOX 0021 WASHINGTON DC 20055 136068327 501(C)(3) 19750 GENERAL FOUNDATION SUPPORT ECOAGRICULTURE INTERNATIONAL 730 11TH ST NEW STE 301 WASHINGTON DC 20001 202349392 501(C)(3) 23431 HEALTHY WATERSHEDS: SCOPING PAYMENTS UPSTATE FOREVER 507 PETTIGRU ST GREENVILLE SC 29601 571070433 501(C)(3) 6000 CLEAN WATER CREDITS RESOURCES FOR THE FUTURE 1616 P STREET NW WASHINGTON DC 20036 530220900 501(C)(3) 10000 RETAINING HEALTH WORKING FORESTS SUSTAINABLE NORTHWEST 813 SW ALDER STE 500 PORTLAND OR 97205 931152222 501(C)(3) 500000 SUSTAINABLE FORESTRY & VALUE STREAMS NORTHERN FOREST CENTER PO BOX 210 CONCORD NH 03302 223458955 501(C)(3) 500000 SUSTAINABLE FORESTRY & VALUE STREAMS MOUNTAIN ASSOCIATION FOR COMMUNITY ECONOMIC DEVELOPMENT 433 CHESTNUT BEREA KY 40403 310900246 501(C)(3) 325000 SUSTAINABLE FORESTRY & VALUE STREAMS THE TRUST FOR PUBLIC LAND 101 MONTGOMERY ST STE 900 SAN FRANCISCO CA 94105 237222333 501(C)(3) 385951 CONSERVATION EASEMENT DATABASE PINCHOT INSTITUTE FOR CONSERVATION 1616 P STREET NW STE 100 WASHINGTON DC 20036 521935342 501(C)(3) 462472 HEALTHY WATERSHEDS CONSERVATION TRUST FOR NC 1028 WASHINGTON ST RALEIGH NC 27605 581552188 501(C)(3) 174962 HEALTHY WATERSHEDS VIRGINIA DEPT OF FORESTRY 900 NATURAL RESOURCES DR STE 800 CHARLOTTESVILLE VA 22903 GOVERNMENT 77365 HEALTHY WATERSHEDSHEALTHY WATERSHEDS NC STATE UNIVERSITY 2200 HILLSBOROUGH RALEIGH NC 276957214 566000075 GOVERNMENT 95764 WOODY BIOMASS/WOOD-TO-ENERGY ENVIRONMENTAL DEFENSE FUND 257 PARK AVE SOUTH NY NY 10010 116107128 501(C)(3) 9366 WOODY BIOMASS/WOOD-TO-ENERGY G-4 INSIGHTS INC 7966 WINSTON ST BURNABY CA 125000 WOODY BIOMASS/WOOD-TO-ENERGY NORTH STAR JEFFERSON LLC 1170 PEACHTREE ST STE 1200 ALTANTA GA 30309 452814380 1500000 WOODY BIOMASS/ WOOD-TO-ENERGY 16 5 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 X 0 0 0 0 0 0 0 0 0 CARLTON OWEN 241380 0 0 0 22000 0 26850 0 19992 0 310222 0 0 0 PETER STANGEL 174235 0 0 0 17700 0 21965 0 16608 0 230508 0 0 0 PART I, LINE 1A THE ORGANIZATION PAID $540 IN 2011 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 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 CONDUCTED 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 5: NET UNREALIZED LOSSES ON INVESTMENTS: -9,459,067. CAPITAL STOCK IN CWF -229,500. TOTAL TO FORM 990, PART XI, LINE 5: -9,688,567. COMMUNITY WEALTH THROUGH FORESTRY INC 320362399 INVESTMENT GA US ENDOWMENT FOR FORESTRY AND COMMUNITIES INC C 144382 1.00000 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 COMMUNITY WEALTH THROUGH FORESTRY B 229500