2017 ANNUAL REPORT

E M P O W E R I N G T H E F U T U R E

Kelle Huffman

President’s Thoughts “Alone we can do so little, together we can do so much.” – Helen Keller

Our community is very fortunate that several individuals had the vision to come together and create The Community Foundation of Burke County (CFBC) in 2001. This was a time

when our nation faced unforeseen challenges and the financial markets struggled. How discouraging this must have been for the founders. Undaunted, they persevered. Today, the Board of Directors has the oversight responsibility for over 100 endowed funds. The Foundation continues to demonstrate an excellent investment discipline strategy.

Another vision of members of the community was the establishment of The Burke Women’s Fund (BWF). Burke Women’s Fund was created in 2009 by a group of 15 women. The mission is to gain an understanding of the issues related to women and families of Burke County. One of my favorite community events each year is the BWF’s s celebration event. In 2017, the event featured Dr. Leslie McKesson whose topic was “gRaCE: Growing Racial and Cultural Empathy.” Since BWF’s inception, the total amount awarded to grant recipients has been $272,459.

The most recent vision of the Foundation is to develop and energize the new generation of philanthropists,

under the mentorship of Sara Black Moses. Comprised of students from Burke’s four high schools and home schools, the group meets regularly to learn about philanthropy and the grant cycle in which they determine recipients. What a great experience this is for our youth!

Former CFBC Board Chair, Chip Black, noted in the 2016 report that our community is in the process of securing a public transit system. When anticipated funds were not received as expected, numerous organizations in the community collaborated; now, this project is nearly funded. A limited bus route may start as soon as late summer. The Foundation continues to evaluate the emerging needs of our community and is working with other organizations to fund solutions.

I would like to thank everyone who supports our community and the Foundation. I would also like to encourage you to contact the Foundation office or me if you would like to learn more about the Foundation and how to make a difference in our community.

Sincerely, Kelle Huffman

Mission Statement

To encourage, develop and participate in philanthropy by providing

flexible giving opportunities, professional support and responsible

stewardship for the benefit of donors and qualified recipients.

“Believe in something larger than yourself and get involved in the big ideas of your time” – Barbara Bush

Board MembersElizabeth W. AndrewsJohn F. Black, Jr.Chris T. BrittainPhillip E. ChurchJ. Rountree Collett, Jr.John N. Heilman

Kelle B. HuffmanNaomi W. HuntM. Alan LeCroyMartha McMurray-RussJ. Mark Rostan

Rev. Diana Spangler- CrawfordBenjamin S. Succop David R. WieseV. Otis Wilson, Jr.

Board Members EmeritusJohn T. BranstromWilliam M. BrinkleyCynthia H. CallawaySterling R. Collett, IIIP. Paul DeatonElisabeth C. ErvinJohn W. Ervin, Jr.Le N. ErwinJ. Hugh Fletcher

C. Michael FulenwiderDoris L. FullwoodSusan L. HaireCharles E. HortonJack B. KirkseyJames E. LowdermilkDonald J. McCallNettie M. McIntoshMarcus W. H. Mitchell, Jr.

W. Harold MitchellBarbara C. NorvellSusan C. PollpeterJames H. RostanDerinda P. StieneRobert T. Turner, IIEdward D. WallEmily Williamson GangiOtto H. Woerner

Community Committee MembersAmparo R. AlfaroDan A. BoggsJohn T. BranstromR. Mark BuffJames A. CornelisonEmma R. DraughnDana S. ElliottJohn W. Ervin, Jr.Doris L. Fullwood

Susan L. HaireFrances M. HildebranDouglas C. HallBruce N. HershockHannah M. JohnsonGeorge K. LoganLisa MillerMark K. MillerMarcus W. H. Mitchell, Jr.

Jerry T. NorvellSusan C. PollpeterJason M. PopeJames H. RostanMary Charlotte SaffordFrederick L. SchuszlerEarl B. Searcy IIILouis E. Vinay

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Executive Director’s RemarksIn 2017, the Community Foundation of Burke County (CFBC) focused on the growth and educational components of its strategic plan.

Throughout the year, opportunities were explored to develop new donor relationships. Those efforts

generated ten new endowed funds which are advancing and promoting the mission of the Foundation. These new endowed funds include five scholarship funds, two unrestricted funds, two donor advised funds and one designated endowed fund. All of these funds were established to directly benefit the residents and nonprofit organizations of Burke County.

The Board of Directors advanced its commitment to educating our youth about the values and benefits of philanthropy. Sixteen Burke County high school

students were welcomed into the Burke Youth Organized Philanthropists. Under the leadership of Volunteer Director Sara Black Moses, the group developed knowledge of nonprofit organizations and enhanced its ability to responsibly evaluate grant requests while honoring donor intention.

CFBC continued its work of providing educational opportunities for local nonprofit leadership. The Foundation conducted its annual educational needs assessment. Also, CFBC worked in partnership with the Western Piedmont Community College Small Business Center and WNC pathways to create instructive learning opportunities for Burke County nonprofit leadership.

Our Annual Report provides you with the stories and faces of the people who have contributed to the progress and growth of the Foundation. Throughout the year, I was constantly reminded of the vision of our Founders and their inspiring commitment to serve the people and organizations of Burke County.

It remains my privilege to be a part of this organization.

Learn more about the Community Foundation

If you know a group that might enjoy learning about us, please contact Nancy W. Taylor at 828-437-7105. We have a brief 15-20 minute presentation that explains how the Foundation works and how anyone can become a philanthropist.

nancy Taylor

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Burke Youth Engage in PhilanthropyIn 2017, Burke Youth Organized Philanthropists (BYOP) entered their second year of operation. The program is open to Burke County ninth-twelfth grade students who are enrolled in Burke County Public Schools or recognized homeschools. The Volunteer Director is Sara Black Moses, a native of Burke County.BYOP completed its first competitive grant cycle in May of 2017 and awarded four grants to organizations that offer programs/projects impacting the lives of children, ages 0-18, and their families. Recipients of the grants were: Burke United Christian Ministries (funding to purchase shoes for children); First United Methodist Church, Valdese (funding for its backpack ministry); Good Samaritan Clinic – Teeth In Need Program (funding to provide dental care for children); and Southmountain Children and Family Services (funding to purchase a defibrillator for the Advocacy Center).Applicants for the 2017-2018 BYOP year were interviewed for membership in the program in June. Students were selected and their work began in August. Throughout the remainder of the year, the program participants gained knowledge about local nonprofits, financial operations of nonprofits and the needs of Burke County children and their families.

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2017 – 2018 BYOP MembersTripp CausbyGabriel EggersRaquela FranciscoWill GessnerDorian GregoryBennett HallSterling HallGraleigh Hildebran

Kacey JohnsonBeth LeCroySam MillerMadison ReedMicah RobinsonBridger ScogginsHarrison SeagleDean Tullis

2017 BYOP Grant RecipientsWendy Jodry - Southmountain Children & Family ServicesDavid Burleson - Burke United Christian MinistriesNancy Ferguson Brown - Good Samaritan ClinicJim Sweezy - First United Methodist Church, Valdese

2017 Community Grant Cycle Recipients Top Row (left to right) Dale Barrier, Burke Charitable Properties; George Logan, New Day Christian Church; Alan Barnhardt, Catawba Science Center; and Chris Jernigan, Southmountain Children and Family ServicesMiddle Row (left to right) Suzy Fitzgerald, The Meeting Place One; Holly Johnson, The Outreach Center; Marie Palacios, Exploring Joara Foundation; Maddie Patterson, Blue Ridge Community Action; Allison Bell, Center for Rural Health Innovation; and David Burleson, Burke United Christian MinistriesBottom Row (left to right) Kristy Graf, Options; Elaine Lite, Prevent Blindness North Carolina; Beth Willard-Patton, Foothills Conservancy of North Carolina; and Kim James, Burke Council on Alcoholism and Chemical Dependency

Donors and 2017 Grantees RecognizedOn October 12, 2017, the Board of Directors of the Community Foundation of Burke County (CFBC) held its annual event to recognize Foundation donors and 2017 grantees. Since 2001, over $4.9 million dollars has been granted to qualified nonprofit organizations through the funds established by donors. During the event, a tribute was paid to donors who have so generously given to meet the needs of others and to improve the quality of life in their respective communities.

Since 2002, CFBC has awarded over $1,344,258 in community grants to nonprofits that serve the residents of Burke County.

In 2017, grant recipients included: Blue Ridge Community Action Circles Initiative, Burke Charitable Properties, Burke Council on Alcoholism and Chemical Dependency, Burke United Christian Ministries, Catawba Science Center, Center for Rural Health Innovation, Exploring Joara Foundation, Foothills Conservancy of North Carolina, Inc., New Day Christian Church, Options, Inc., Prevent Blindness North Carolina, Southmountain Children and Family Services, The Meeting Place, Inc., and The Outreach Center.

Featured speakers included John F. Black, Jr., 2017 Chairman of CFBC, and John C. Marshall of the Western Piedmont Council of Governments, who provided an update on the “Fixed Public Bus Transportation Initiative.” CFBC has committed $60,000 in unrestricted funds to this project. Grant recipient Marie Palacios provided an update on the progress and activities of the Exploring Joara Foundation.

JoHn (cHip) BlacK, Jr. cfBc Board memBer

marie palacios exploring Joara foundaTion

2017 granT recipienT

JoHn marsHall TransporTaTion proJecT

WesTern piedmonT council of governmenTs

Community/Economic Vitality $86,566

9%

2017 Total GrantsEndowed, Ltd. Endowed, BWF, BYOP, and Community

7

Arts, Culture & Humanities $51,612

5%

Human Services $247,685

25%

Environment/Animals$81,827

8%

Education $144,452

15%

Health $153,334

16%

Religion $209,877

22%

In 2017, grant funds in the amount of $975,353 were distributed to qualified nonprofit agencies and organizations. Human Service organizations received the largest amount of grant distributions with more than 25% of total grant funds going to qualified nonprofit agencies.

“We make a living by what we get, but we make a life by what we give.” – Winston S. Churchill

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2017 Endowment Funds

AnimalsBurke County Friends for Animals Endowment Fund

ArtsBurke Arts Council Endowment FundCaldwell Arts Council Endowment FundCaldwell Arts Council Limited Endowed Donor

Advised FundThe Rock School Arts Foundation Endowment Fund

Broad Charitable PurposesAvery-Causby FundDonald and Betty Taylor FundDorothy K. Ervin Endowment FundDrew Woerner Endowment FundEmanuel A. and Romilda P. Richard Endowment FundFrancis and Emily Grill Memorial FundJean Conyers Ervin FundMarilyn Malone Gordon Endowment FundOtto and Wynne Woerner Fund William E. and Laura Ervin Smith Fund

Cemetery MaintenanceMountain View Cemetery FundQuaker Meadows Cemetery FundWaldensian Presbyterian Church Cemetery Endowment

Fund

Culture/HistoryHistoric Burke Foundation-Alice Elaine Falls Endowed

FundHistoric Burke Foundation-Alice Elaine Falls Limited

Endowed Donor Advised FundHistory Museum of Burke County Endowment FundHistory Museum of Burke County Limited

Endowment FundLibrary Foundation of Burke County Endowment

Fund

Deaf and Hearing ImpairedAlbert Mehl Endowment Fund

Donor AdvisedBowers-Greene Endowment FundBurke Sunrise, Inc. Limited Endowed Donor

Advised Fund Burke Women’s FundCamp Lake James Stewardship FundCharles M. and Alice M. Carey FundChris and Leanne Brittian Family FundChristian Shull Children’s Endowment FundCooper McCall Endowment FundGresham Orrison Endowment FundJackie and Paul Deaton FundJames H. Rostan and Linda R. Rostan Endowment

FundJoel Hastings Endowment FundJohn P. Rostan, Jr. and Naomi Bounous Rostan

Endowment FundJoyce Amos Jones Endowment FundMorgan-Avery FundSalsbury-Taylor Fund

Education/ScholarshipAdam Benson Scholarship FundAndrea Galen Jacks Scholarship Endowment FundAnita Wilson Scholarship FundAnn Cornwell Patton and George Thomas Cornwell

FundBetty and Otto Woerner Endowed Scholarship Fund Burke Education Endowment Program Endowed FundCranford Scholarship Endowment Fund Clyde Nichols Young, Jr. Endowed Scholarship FundCrump-Pollpeter Scholarship FundDrexel Alumni Association FundGlenn R. Yoder Scholarship Endowment Fund

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Community Foundation of Burke County

Please consider making a donation to one of these endowments.

Education/Scholarship (continued) Jimmy C. Draughn Scholarship Endowment FundKeith Warren Black Educational Scholarship FundLarry and Louise Huffman Scholarship Endowment

FundLarry Simpson Memorial Scholarship FundMichael Williamson Eley Endowment FundMildred and Hugh Fletcher Scholarship FundMorganton Day School Scholarship Endowment FundRaymond K. Miller Scholarship Endowment FundRobert A. “Bob” Shook Memorial ScholarshipRotary Club of Morganton Scholarship Endowment

FundTim Spain Scholarship FundValdese Rotary Club Endowed Scholarship FundWaldensian Presbyterian Women Scholarship Program

Endowment FundWynne and Otto Woerner Endowed Scholarship Fund

EnvironmentFoothills Conservancy of North Carolina Burke

County Endowment FundThe Martha’s Park Endowment Fund

HealthcareBurke Hospice & Palliative Care Endowment FundBurke Hospice & Palliative Care, Inc. Limited

Endowed Donor Advised FundBurke Hospice & Palliative Care, Inc. Limited

Endowed Donor Advised Fund IIGood Samaritan Clinic Endowment FundRon LaSalle Limited Endowment Fund for Charitable

CareStop Alcohol and Drug Addiction Endowment FundTeeth in Need Endowment Fund

Human ServicesBlue Ridge Community Action FundBurke Charitable Properties Limited Endowed Donor

Advised Fund

Human Services (continued) Burke County United Way FundBurke United Christian Ministries Limited Endowed

Donor Advised FundChildren’s Home Society of North Carolina Limited

Endowed FundFoothills Service Project Limited Endowed Donor

Advised FundHabitat for Humanity of Burke County, Inc. FundOptions Against Family Violence FundRay and Laura Consley Endowed FundSouthmountain Children and Family Services

Endowment FundW. Edwin & Marie T. Hoyle Endowed Fund

School Nurse Program/Nursing Scholarship

Minnie Bell Rector Cooper Nursing Scholarship FundStiff Endowment Fund

ReligionFirst Presbyterian Church Morganton Limited

Endowed Donor Advised FundWaldensian Presbyterian Church Endowment FundWalter Howard Lewis Endowment Fund

Travel Fellowship-First Baptist Church Morganton

Jerald C. Liebhart, Sr. & Grace Folmar Liebhart Fund

UnrestrictedBetsy and Billy Joe Patton Endowment FundBill and Hazel Bailey Abernathy Endowment Fund Carl H. and Linda S. Wall Endowment FundDonald Jackson McCall Endowment FundF. Sam and Phyllis Rogers FundJohn L. and Caroline W. Kos FundJohn W. Ervin, Jr. Endowment FundPat and Harold Mitchell Fund

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Cranford Scholarship Supports East Burke and Jimmy C. Draughn High School GraduatesIn 2013, Francis Paul Cranford made the decision to implement a scholarship program that would honor his brother, Fred Cranford, and his nephew, Eric Cranford. Fred was a retired educator from the Burke County Public Schools who passed away in 2007. Eric served in the United States Navy and lost his life when Airline Flight 77 struck the Pentagon building in 2011. It was of great importance to Paul that he pay tribute to the life and work of his brother and nephew. He felt that providing an opportunity for a higher education to deserving students was a meaningful way he could do that.

In 2017, the Cranford Scholarship Endowment Fund awarded four $3,500 scholarships to deserving students. Recipients included: Ethan Hahn from East Burke High School who would be attending Appalachian State University to major in Computer Science; Brianne Lockee from East Burke High School who would be

attending Western Piedmont Community College to major in Accounting; Ava Smith from Jimmy C. Draughn High School who would be attending UNC-Chapel Hill to major in nursing and chemistry; and Hayden Wilson from Jimmy C. Draughn High School, who would be attending Appalachian State University to major in banking and finance.

Francis Paul Cranford passed away in February of 2015. His hope that his brother Fred, and his nephew, Eric, would always be remembered has been realized through the Cranford Scholarship Endowment Fund.

francis paul cranford

2017 Scholarship RecipientsTop Row (left to right) Ava Smith, Sarah Sharpe, Ethan Hahn, Megan Treadway, Rebekah Ewing

Middle Row (left to right) Cindy Ennis, Christin Brookshire, Hayden Wilson, Alex Farris, Christopher Drum, Ben Hagaman, Braeden Personius, Brooke Hall, Kristin Damron

Bottom Row (left to right) Julia Valasquez Miguel, Cortney Hildebran, Selby Baughman, Kaylee Huffman, Brianne Lockee

Financial Reports

2017 Audit completed by Davidson, Holland, Whitesell & Co., PLLC. Financials were extracted from the annual audit. 11

Statement of Financial Position

2017 2016Total Total

Assets Current assets:

Cash and equivalents 704,117 742,772 Short-term investments 2,000 2,000 Promises to give 1,460 1,690 Other receivables 2,476 2,135 Prepaid expenses 5,154 6,968 Annuity held for sale 38,417 - Land held for sale 25,500 25,500

Total current assets 779,124 781,065

Investments 20,781,207 16,414,189 Cash surrender value of life insurance 23,616 23,201

Total Assets 21,583,947 17,218,455

Liabilities and Net AssetsCurrent liabilities:

Accounts payable 12,586 9,054 Grants payable 62,750 34,500

Total current liabilities 75,336 43,554

Net assets:Unrestricted

Discretionary 307,856 327,139 Board designated 249,208 216,822 Donor advised 237,514 335,075

Total unrestricted 794,578 879,036 Temporarily restricted 20,584,033 16,175,865 Permanently restricted 130,000 120,000

Total net assets 21,508,611 17,174,901 Total liabilities and net assets 21,583,947 17,218,455

YEAR ENDED DECEMBER 31, 2017 | COMPARATIVE 2016 TOTALS

Statement of Activities

Complete audited statements are available at the offices of the Foundation.12

2017 2016Total Total

Revenues and other support:Contributions 2,749,993 668,261 Grants 8,000 93,564 Investment income 501,689 392,617 Net realized and unrealized gains on investments 2,350,559 1,113,918 Change in cash surrender value of life insurance 415 74 In-kind contributions 15,269 15,269 Other 1,651 2,421 Net assets released from restrictions - -

Total revenues and other support 5,627,576 2,286,124

Expenses:Program services 1,186,033 984,846 Management and general 107,833 101,177 Pledge cancellations - 3,428

Total expenses 1,293,866 1,089,451 Increase (decrease) in net assets 4,333,710 1,196,673

Net assets at beginning of year 17,174,901 15,978,228 Net assets at end of year 21,508,611 17,174,901

Financial Reports

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Assets

Growth of Endowment

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

39 49 53 61 67 67 71 73 78 84 87 90 100Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds

2.8 M

3.3 M

4.8 M

5.4 M

15.5 M

16.2 M

15.5 M

16.1 M

16.5 M

20.8 M

17.2 M

21.6 M

14.7 M

15.7 M

12.0 M

12.8 M

11.1 M

11.7 M

11.2 M

11.9 M

10.1 M

10.6 M

8.0 M

8.6 M

7.3 M

8.0 M

Steering Committee MembersMarsha CarverKelly HawkinsBeth HeileMolly HemstreetKelle HuffmanRexanna LowmanLisa MillerLaurie MillerJane MoodySherron PrewittLeslie RostanMary Charlotte SaffordMary Ellen Wiese

Burke Women’s Fund Giving CircleSince 2009, the Burke Women’s Fund (BWF) , operating under the auspices of the Community Foundation of Burke County, has been focused on its mission of improving the lives of women and their families in Burke County. As of December 31, 2017, the Burke Women’s Fund had granted more than $246,025 to programs that addressed issues impacting women and their families.

On May 6, 2017, the BWF held its annual celebration to recognize the 2017 grant recipients. The featured speaker was Dr. Leslie McKesson whose topic was “gRaCE: Growing Racial and Cultural Empathy” and the Waldensian Presbyterian Church was the host site for the event. The Compassionate Hearts Clinic, Oak Ridge Baptist’s church free clinic, provided an

update on the 2016 grant that they received from BWF to support the work of the clinic. The Kitchen Connection, located in Morganton, was also recognized for its ongoing corporate sponsorship.

Grant recipients included: Burke Literacy Council, Catawba Science Center, Center for Rural Health Innovation, Library Foundation of Burke County, Oak Hill United Methodist Church, Oak Ridge Baptist Church and Western Piedmont Community College. A focus grant was awarded to the City of Morganton for its “One Dime Blues,” Etta Baker tribute.

The Burke Women’s Fund continued during 2017 to grow its endowment fund to over $130,958 ensuring the long term vision of advancing the power of collective giving among Burke County women.

Burke Women’s Fund - Annual Event Speakers From Left to Right: Mary Charlotte Safford, Dr. Leslie McKesson and Lisa Miller14

Burke Women’s Fund 2017 Grant Recipients

Burke Women’s Fund Endowment Balance

Through December of 2017, the Burke Women’s Fund awarded more than $246,025 in grants to programs that addressed issues impacting women and their families.

Burke Women’s Fund - Annual Event Speakers From Left to Right: Mary Charlotte Safford, Dr. Leslie McKesson and Lisa Miller

2017 Corporate Sponsor“The need in our community is so great. By pooling our knowledge and our resources through the Burke Women’s Fund, we can truly improve the lives of women and families in Burke County.” – Pam Saunders, Owner 15

2017 131 K2016 110 K2015 94 K2014 91 K2013 81 K2012 63 K2011 44 K2010 40 K2009 11 K

The Community Foundation of Burke County205 North King Street | PO Box 1156 Morganton, NC 28680

828-437-7105 Telephone 828-437-0433 Fax

To learn more, visit us online www.cfburkecounty.org

Burke Youth Organized Philanthropists exists to engage and empower youth through learning and serving to strengthen our community. – cover photo