2011-10-21T12:04:41-05:00 2010-12-31 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-01-01 205583324 UNITED STATES ENDOWMENT FOR FORESTRY AND COMMUNITIES INC UNIT 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 8642337646 2011-10-21 1 AMY BIBBY 8282542254 2010 2016-03-07 17:11:31Z X CARLTON OWEN 908 EAST NORTH STREET GREENVILLE SC 29601 109383497 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 1939118 2553966 0 0 2093197 2426273 70 0 4032385 4980239 2557728 5085116 0 0 529112 781140 0 0 0 1108608 862654 4195448 6728910 -163063 -1748671 180221115 193315878 1114202 1681715 179106913 191634163 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 6092326 5085116 -180878 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 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 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. 6092326 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 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 0 0 0 0 0 1 17 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 0 0 DE X X X FLORENCE COLBY 8642337646 908 EAST NORTH STREET GREENVILLE SC 29601 CARLTON OWEN 40.00 X X 258110 0 31863 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 DAVID DODSON 1.00 X 0 0 0 TAMAR DATAN 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 STRANGEL 40.00 X 138250 0 18345 396360 0 50208 2 0 1 0 COMMONFUND 15 OLD DANBURY ROAD WILTON CT 06897 INVESTMENT MANAGEMENT 192358 1 1213989 1339977 2553966 2607151 2607151 104222380 104393857 9401 -171477 -9401 -180878 -180878 4980239 -180878 0 2607151 5085116 5085116 260908 208726 52182 377441 238467 138974 142791 89673 53118 19796 19796 36163 36163 191804 191804 404106 373572 30534 21149 21149 64118 64118 112078 75623 36455 11268 11268 MISCELLANEOUS 2172 2172 6728910 6092326 636584 0 4044750 1479174 214923 602651 2755113 9135 8604 198862 14101 198862 104790370 104591609 71147836 83034365 645500 180221115 193315878 131672 733468 982530 948247 1114202 1681715 X -21382037 -8575764 488950 209927 200000000 200000000 179106913 191634163 180221115 193315878 X -1748671 14275921 X 0 1 1 X 1 1 X 200041425 86000 1724195 2553966 204405586 200041425 86000 1724195 2553966 204405586 204405586 4030629 3523031 3059301 2426273 13039234 6003 900 214993 221896 217666716 0.93910 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 178689176 16519791 3992541 191495449 151473881 29713616 2498321 178689176 214017399 -61203745 1339773 151473881 1.00000 0 0 135374 135374 63488 63488 198862 18935844 F FIXED INCOME 31440281 F ALTERNATIVE INVESTMENTS 32658240 F 83034365 4980239 6728910 -1748671 14275921 14275921 12527250 19073757 14275921 9401 14285322 4788435 191804 191804 4980239 6546507 9401 9401 6537106 191804 191804 6728910 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, 2010. FISCAL YEARS ENDING ON OR AFTER DECEMBER 31, 2007, REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF EQUIPMENT 9,401. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 191,804. PART XIII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF EQUIPMENT 9,401. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 191,804. 1 AGRI-TECH PRODUCERS LLC 116 WILDWOOD CLUB COURT COLUMBIA SC 29223 050632234 250000 N/A N/A PROGRAM-RELATED INVESTMENT CONSERVATION TRUST FOR NC 1028 WASHINGTON STREET RALEIGH NC 27605 581552188 501(C)(3) 67870 N/A N/A HEALTHY WATERSHEDS COUNCIL ON FOUNDATIONS PO BOX 0021 WASHINGTON DC 20055 136068327 501(C)(3) 20650 N/A N/A GENERAL FOUNDATION SUPPORT ECOAGRICULTURE INTERNATIONAL 730 11TH STREET NW STE 301 WASHINGTON DC 20001 202349392 501(C)(3) 69726 N/A N/A HEALTHY WATERSHEDS : SCOPING PAYMENTS GREENWOOD CLEAN ENERGY 13429 SE 30TH STREET SUITE A BELLEVUE WA 98005 274590996 250000 N/A N/A PROGRAM-RELATED INVESTMENT HM3 ENERGY INC 500 SE BUTLER ROAD GRESHAM OR 97080 261860285 241000 N/A N/A PROGRAM-RELATED INVESTMENT INSTITUTE OF FOREST BIOTECHNOLOGY 140 PRESTON EXECUTIVE DRIVE CARY NC 27513 562278107 501(C)(3) 255012 N/A N/A BIOTECHNOLOGY : FOREST GENETICS MOUNTAIN ASSOCIATION FOR COMMUNITY ECONOMIC DEVELOPMENT 433 CHESTNUT BEREA KY 40403 310900246 501(C)(3) 500000 N/A N/A SUSTAINABLE FORESTRY & VALUE STREAMS NORTHERN FOREST CENTER PO BOX 210 CONCORD NH 03302 223458955 501(C)(3) 500000 N/A N/A SUSTAINABLE FORESTRY & VALUE STREAMS ORTIGALITA POWER COMPANY LLC 1800 SCOTT STREET SAN FRANCISCO CA 94115 264532127 250000 N/A N/A PROGRAM-RELATED INVESTMENT PENNSYLVANIA STATE UNIVERSITY SCHOOL OF FOREST RESOURCES UNIVERSITY PARK PA 16802 246000376 501(C)(3) 515319 N/A N/A BIOTECHNOLOGY : FOREST GENETICS PINCHOT INSTITUTE FOR CONSERVATION 1616 P STREET NW STE 100 WASHINGTON DC 20036 521935342 501(C)(3) 188343 N/A N/A HEALTHY WATERSHEDS RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NEW YORK 35 STATE STREET ALBANY NY 12207 141368361 501(C)(3) 376065 N/A N/A BIOTECHNOLOGY : FOREST GENETICS SUSTAINABLE NORTHWEST 813 SW ALDER STE 500 PORTLAND OR 97205 931152222 501(C)(3) 500000 N/A N/A SUSTAINABLE FORESTRY & VALUE STREAMS THE CONSERVATION FUND PO BOX 271 CHAPEL HILL NC 27514 521388917 501(C)(3) 106834 N/A N/A SOUTHERN FORESTLAND CONSERVATION THE CONSERVATION FUND PO BOX 271 CHAPEL HILL NC 27514 521388917 501(C)(3) 40000 N/A N/A COMMUNITY FORESTS SERVICE CENTER THE CONSERVATION FUND PO BOX 271 CHAPEL HILL NC 27514 521388917 501(C)(3) 250000 N/A N/A WORKING FOREST MARKETS - LINK GRASSROOTS INVESTORS TO SUSTAINABLE FORESTRY ENTERPRISES THE TRUST FOR PUBLIC LAND 116 NEW MONTGOMERY STREET 4TH FLOOR FLOOR SAN FRANCISCO CA 94105 237222333 501(C)(3) 500000 N/A N/A CONSERVATION EASTMENT DATEBASE THE UNIVERSITY OF TENNESSEE MORGAN HALL ROOM 103 KNOXVILLE TN 37996 626001636 501(C)(3) 85668 N/A N/A INDUSTRIAL BIOMASS STUDY US DEPARTMENT OF AGRICULTURE FOREST SERVICE SOUTHERN RESEARCH STATION 23332 OLD MISSISSIPPI 67 SAUCIER MS 39574 407026 N/A N/A BIOTECHNOLOGY : FOREST GENETICS UNIVERSITY OF GEORGIA RESEARCH FOUNDATION 621 BOYD GRAD STUDIES RESEARCH CENTER ATHENS GA 30602 581353149 501(C)(3) 306433 N/A N/A BIOTECHNOLOGY : FOREST GENETICS VIRGINIA DEPARTMENT OF FORESTRY 900 NATURAL RESOURCES DRIVE CHARLOTTESVILLE VA 22903 581552188 57500 N/A N/A HEALTHY WATERSHEDS 18 4 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 X X X X 0 0 0 0 0 0 0 0 0 CARLTON OWEN 229160 0 0 0 28950 0 26950 0 4913 0 289973 0 0 0 PETER STRANGEL 124675 0 0 0 13575 0 18345 0 0 0 156595 0 0 0 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 15A 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 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 GAINS ON INVESTMENTS: 14,275,921.