The Finance and Investment Committee’s wisdom and experience is invaluable as they work closely with the Executive Director on all fi nancial matters, including the budget, audit and investments. Members are Jim Hawkins, Bill Pakis, Lisa Jaynes, Tom Salome, Jim Haller and, not pictured, David Dickson and Louie Englander.

Remaining StableIn Uncertain Times

SUMMER 2009

BOARD OFT R U S T E E S

Cara ChaseDavid Dickson

Louie EnglanderJim Haller

Jim HawkinsLisa Jaynes

Beth Mayfi eldWilliam R. Pakis

Tom SalomeMaggie Stinnett

900 Austin Avenue, 9th FloorWaco, TX 76701-1949

(254) 754-3404www.wacofoundation.org

F O U N D I N G

J. Sullivan BondE. B. BurlesonH. M. Fentress

Howard HambletonHilton E. Howell

Walter Lacy, Jr.Lee Lockwood

Jean McReynoldsMrs. James Mixson

H. Hart NanceWinthrop SeleyJoe L. Ward, Jr.

C U R R E N T

In celebration of our fi ft ieth anniversary last year, we looked back on the past with a feeling of thankfulness for the wisdom shown by early leadership. In today’s economic climate, we are even more grateful for their strategic planning because it allows us to maintain, and even enhance, our contribution to the community.

Th is year, even with a decrease in asset value, we will grant approximately one million dollars from unrestricted funds to nonprofi t organizations that provide services to McLennan County residents. We are able to do this because early Trustees established a spending policy based on fi ve percent of a seven year rolling average, rather than the industry standard of three to fi ve years. It is this conservative policy that allows us to consistently grant almost one million dollars annually, even in economically distressed periods.

Th e current Board continued this legacy of fi nancial responsibility by recently hiring an invest-ment consultant to assist them in managing assets. Th is move, made aft er considerable thought and research, led to changes in the Investment Policy and Asset Allocation Strategy which created a more diverse portfolio. It also allowed us to move up to

the top quartile of returns in comparison to our peers, despite a decline in assets due to the extremely negative market. Long term, we expect this strategy to continue to produce bett er overall performance.

In another strategic move, the Foundation shift ed its service delivery to provide more signifi cant support to nonprofi t organizations through the Capacity Building Program. By establishing partnerships with local and state entities, we are providing a broader range of services, more aligned with the needs of area nonprofi t organizations (based on an in-depth assessment). Our focus is to assist nonprofi ts in building capacity so that they can experience sustainable growth. Services off ered include training in fundraising, strategic planning, management, and board development, as well as facilitation of collaborations. As in the past, information on how to research and write a grant will be off ered; however, grant writing services will be provided through the use of specialized professionals for collaborative projects with high impact in the community.

Even in uncertain times, one thing that remains unshaken is Waco Foundation’s commitment to improving the lives of those in our community.

THE FOUNDATIONNEWS AND VIEWS FROM WACO FOUNDATION

Dear Friends,

As a board member for eight years, I witnessed fi rsthand the impact that the Foundation has in our community. By focusing on our mission of making a positive diff erence in the lives and futures of people in Waco and McLennan County, we thrive despite societal and fi nancial changes. Th is is possible because we diligently assess the best ways to make grants, promote community philanthropy, and provide support for area nonprofi ts—and then strategically make changes.

Th is process requires strong leadership like that provided by Louie Englander, who has just completed his two-year tenure as Chairman. During this time, we made improvements in several areas so that we may bett er serve the community, our donors and nonprofi t organizations. In this newslett er, you will fi nd more information regarding these changes.

In addition to Louie, I am deeply appreciative to the wisdom of all of the board members in our fi ft y-year history. In this time of fi nancial turmoil, I am especially thankful for the foresight shown in basing our spending policy on a seven-year average return. Th is conservative strategy allows us to grant almost one million dollars from Unrestricted and Designated Funds to area nonprofi t organizations each year, and we do not anticipate any decrease in the future.

With the hiring of our investment manager last year, we adopted a more modern investment policy and asset allocation strategy that spread the Foundation’s risk among a broader class of assets. Although returns were negative, we have been watching performance closely, and early results indicate that our foundation performed far above average in dismal market conditions. We believe that these recent changes provide the best long-term growth and protection for Foundation assets.

Other changes include expanding the staff , a result of our focus on increasing capacity and in-house expertise in the Foundation’s accounting, records management, and technology. In January, we welcomed Erica Ancira as Director of Technology and Administration. Erica completes the recent staff changes made to poise the Waco Foundation for future growth and development.

Th ank you for the support that you have shown the Foundation, its Board, and its staff . Th e commitment that we have is simply a refl ection of our community’s overwhelming philanthropic spirit and its concern for the lives and well-being of others. If you have any questions regarding the Foundation or if you would like to contribute to a fund, please do not hesitate to contact me or Executive Director Ashley Allison. Yours truly,

Chairman of the Board

P A S T

BOARD OFT R U S T E E S

Norman AdamsonSharon AllisonRick BostwickNancy Callan

Jafus CavilPenny ChaseJim Clift on

Tom CollinsJean Darden

Virginia DuPuyJean Eastman

Woody EnglanderArtie Giotes

Priscilla GutierrezHarry Harelik

Gay Lynn HooksDavid Horner

Bill KellyLuanne Klaras

David LacyFrank Levy

J. J. MaysJohn McDonald

Ada Patt onArt PertileAl Pollard

Randy PreddyNelwyn ReaganNorma Rhodes

David SmithC. Cullen Smith

Jim StewartPat Taggert

Hal WhitakerGerald Winchell

Ester Wolf

E XECU TIVEDIRECTOR

STAFF

Ashley Allison

Erica AnciraCheryl Allen

Leslie MitchellRobbie Stabeno

Tihara Vargas

We have moved!Our new address is:900 Austin Avenue, 9th FloorWaco, Texas 76701-1949

Thanks to A&A Telecom Group, Inc., Barfi eldSW Sales, and Heart of Texas Network Consultants for contributing discounted services.

Special thanks to Chip Wilson and 360 Solutions for donating six months of offi ce space.

NONPROFITS BENEFITFROM CAPACITY BUILDING

Waco Foundation is committ ed to providing support to the nonprofi t sector through the Capacity Building Program. Capacity building is the intentional investment of time, thought, resources, and eff ort dedicated to the improvement of leadership, management, fi scal responsibility, skills, procedures, fundraising, and human resources in order to increase impact and sustainability.

Th e Capacity Building Program includes:• Collaboration with Waco-McLennan County Library to present

workshops and maintain nonprofi t resources• Nonprofi t memberships to an online grants database

and training center• Facilitation and project development assistance for

collaborating organizations • Partnership with local and state entities to provide training• Development of www.McLennanNonprofi ts.com • Provision of specialized consultants• Feedback on grant applications• Implementation of Leaders Circles

For more information, please visit www.wacofoundation.orgor contact:Tihara Vargas, Director of Special Projectstvargas@wacofoundation.org254.754.3404

Waco Community Development Corporation Executive Director Mike Stone and Keep Waco Beautiful Executive Director Sherri Street recently learned about new Form 990 requirements at a workshop held in partnership with McLennan Community College.

Leaders Circles are a new component of the Capacity Building Program. Th ese collaborative learning networks give nonprofi t executives the opportunity to address common challenges, exchange ideas, and share solutions

at monthly meetings. Th is leads to an improvement in performance and impact for theorganizations that participate. One

circle began in June and anotheris set to start in the fall.

Members of the fi rst Leaders Circle are:Pam Smallwood

Planned ParenthoodJim McCall

Compassion Ministries of WacoMelody McDermitt

Meals & WheelsDoug McDurham

Communities In SchoolsNeil Miller

World Hunger Relief, Inc.John Alexander

Waco Habitat for Humanityand David Davis, Advocacy Center

for Crime Victims and Children

SPRING 2009GRANTMAKING

Approximately one million dollars is distributed annually from unrestricted and designated funds to 501(c)(3) organizations that serve the residents of McLennan County. Grants are awarded in the spring and fall.

$9,000 Arrow Child and Family Ministries is providing foster parents with the ability to furnish needed clothing for children in their care.

$16,125 Campfi re USA Tejas Council, in partnership with Art Center Waco, is providing summer camp scholarships to children from low income homes.

$25,000 City of Waco, along with Greater Waco Chamber of Commerce, is developing a master plan and economic development strategic initiative for the greater downtown Waco area.

$11,000 Family Abuse Center is strengthening its program of assisting victims of domestic violence.

$200,000 Family Health Center is increasing primary healthcare and dental services with an expansion of the Dr. Tom Oliver 18th Street Community Clinic.

$8,134 Friends for Life is upgrading client security with the purchase of special door locks and surveillance cameras.

$20,000 Fuzzy Friends Rescue is increasing the large dog adoption rate by conducting a special training class.

$38,287 Kids & Company is renovating the kitchen at their Edna Street site to bett er accommodate the expanding number of children.

$7,629 Meals & Wheels is purchasing a convection oven to assist in the preparation of meals for senior adults.

$9,000 Ruth Project is implementing a program that will help immigrants open bank accounts so they can pay income taxes.

$21,000 Th e Salvation Army—Waco Corps is remodeling the former thrift store building into a community kitchen to serve needy individuals.

$11,000 Waco TECH is providing computer training in labs located in recreation centers and low income housing developments.

$21,992 World Hunger Relief, Inc. is increasing the capacity of their education program by expanding outdoor learning facilities.

For more information, please visit www.wacofoundation.org or contact:Cheryl Allen, Director of Grants and Marketingcherylallen@wacofoundation.org or 254.855.2259

GRA NTMAKINGIMPACTS COMMUNITY

FAMILY HEALTH CENTERDR. JOHN SHULTZ, DENTAL DIRECTOR

What is the mission of the Family Health Center?It is to increase access to high quality comprehensive primary and preventative healthcare, and to improve the health of the underserved and vulnerable residents of McLennan County. We do this by having fi ve sites where we provide comprehensive healthcare, including dental and behavioral at some locations, to individuals that live at or below 200% of poverty guidelines ($46,000 income for a family of four).

What impact will the $200,000 grant have in the community?Th e funds will go toward the expansion of the Dr. Tom Oliver South 18th Street Community Clinic. In addition to allowing us to expand our primary healthcare services, we will be able to increase the number of dental chairs from 18 to 26. By the second year of the expansion, we anticipate adding 6,624 dental encounters to the 17,000 in 2007.

How does providing dental care fi t into your mission?Every day there is a new revelation linking oral disease to other health issues, such as diabetes and heart problems. Because we deliver approximately 40% of all babies in the county, we are particularly concerned about the correlation of expectant mothers’ dental problems to pre-term, low-weight babies. We also see lives changed through an improvement in self-esteem, especially in teens.

Who receives the dental care?Children under twenty-one on Medicaid. We focus on this because tooth decay is now the number one childhood disease nationwide and Medicaid payment gives us steady funding. We also see adults at the 18th Street Clinic who have private insurance, revenue we use to provide services to patients that cannot aff ord it. Needy adults can visit the Riverside location for a nominal amount, but since even that can be prohibitive to some, we are establishing an endowment to off set the fees.

What is the mission of Ruth Project?Waco Immigrant Services Center is a faith-based nonprofi t organization and Board of Immigration Appeals (BIA) accredited site. Since our establishment in 2007, we have provided low-cost legal immigration services and comprehensive social service referrals to immigrant families in poverty. In addition, we educate individuals and the community about immigrant rights and responsibilities under the law.

What impact will the $9,000 grant have in the community?Th e funds will allow us to assist immigrants in obtaining Individual Tax Identifi cation Numbers (I-TIN) from the Internal Revenue Service. With an I-TIN, they can open bank accounts, where their money is safe, and pay federal income taxes. Th is results in an increase in the community’s tax revenue.

How does assisting immigrants in opening bank accounts fi t into your mission?Our goal is to off er immigrants of all backgrounds the opportunity to lead successful, productive lives as contributing citizens in our community. As tax-paying individuals with money in the bank, they are bett er able to accomplish this.

Who do you anticipate will use the services of the program?We expect that the clients will be immigrants who want to become legalized citizens by working through the appropriate legal system.

RUTH PROJECTVIVIANA TRIANA, CO-FOUNDER

Laura “Star” De La Cruz loves going to work every day, and for her, education has been the key to professional success. Star graduated from La Vega High School in 2004 in the top ten percent of her class. Unsure of what career path to take, she began taking basics at MCC where she maintained a 4.0 grade point and was an active member of Phi Th eta Kappa. In her third semester, she gave birth to a baby girl, Gema Yamileh. With that extra motivation, Star decided to transfer to Baylor University and study journalism. While a student, she freelanced at Waco Tribune-Herald and interned at Tiempo newspaper and KWOW La Ley 104.1. In August 2008, she graduated with a BA in Journalism and a minor in Latin American Studies. Star currently works at the Waco Tribune-Herald as the content editor of Fronteras newspaper and reporter for Waco Today and Dwelling. She stays busy participating in One Book One Waco and the Education Summit Media Stakeholder group. Her future plans include att ending Baylor Law School or gett ing a Master’s Degree in Latin American Studies.

Each year, the MAC Scholarship Program helps students accomplish their dreams of pursuing higher education by providing tuition assistance to graduates of McLennan County high schools. To be eligible for the program, students must apply their senior year in high school and have a family income of $50,000 or less. Since its inception, the program has provided $4,079,196 in tuition assistance and has helped numerous students complete the FAFSA, an endeavor that has resulted in more than 30 million dollars in state and federal funding awarded locally.

For more information or to contribute to the program, please visit www.wacofoundation.org or contact: Robbie Stabenorstabeno@wacofoundation.org 254.752.9457

MAC SCHOLARSHIPSREPORT SUCCESS

Director of Scholarships and MAC Program Robbie Stabeno, with assistance from MAC Scholarship recipient and Waco Foundation Intern Angie Vega, helped 1,131 individuals complete the FAFSA between January and May of this year.

Star, shown here with “Waco-Tribune Herald” Editor Carlos Sanchez, states, “Being a fi rst generation college student, I was very unsavvy about scholarships and the higher education process. I am absolutely thankful to Ms. Stabeno because she gave me the hope and answers I needed. Words cannot express the gratitude I feel for all the help I received from Waco Foundation and the extreme push they gave me by giving me a MAC scholarship.”

FROM THE DIRECTOR’S DESK

ASHLEY ALLISONExecutive Director

Welcome New Staff Member Erica AnciraBorn in Conroe and raised in College Station, Erica Ancira has a background that makes her uniquely

qualifi ed as Director of Technology and Administration. Her academic career began at McLennan Community College, includes a business degree from Baylor University and an MBA from the University of Texas at Arlington. Although she holds a real estate broker’s license, Erica has spent the majority of her career as a legal assistant, most recently at the law fi rm of Sheehy, Lovelace, and Mayfi eld. She has also taught evening classes in technology and business at MCC. Erica oversees all aspects of technology, records and offi ce management, and with her guidance we have upgraded our computer network and telephone systems, approved a records retention policy and emergency plan, and moved offi ces. Erica is married to Ben Ancira, and they have a two-year-old son, Aadin. She is an avid cyclist who enjoys volunteering with the Lance Armstrong Foundation and the Junior League of Waco.

Erica Ancira — eancira@wacofoundation.org — 254.754.3404

Since the beginning, the Board has practiced fi nancial diligence in order to maximize funds available to the community. Trustees take very seriously their responsibility regarding not only investments, but also program and administrative expenses. With fi ve to seven fewer people than comparable community foundations, our small staff of fi ve full-time and one part-time employees

are well qualifi ed; all have completed higher education, and four have graduate degrees.

In addition to following the lead of early Trustees in keeping expenses low, we have continued the conservative spending policy set for Unrestricted Funds. As of March 31, those funds have total assets of $30,609,458, an amount that allows us to grant almost one million

dollars per year to area agencies.Th e fi ve funds held by the Foundation were created for a variety of

reasons; some to honor loved ones, others as a result of strategic changes to a trust or private foundation. In each case, they were established so that Waco Foundation Trustees could use their experience and expertise, along with staff research, to direct the resources to the greatest community needs at the time. Donors who choose to practice philanthropy in this manner have the option of contributing to Waco Foundation Unrestricted Fund or creating a lasting legacy with a separate fund that carries the family’s name forever.

If you would like to contribute to one of the existing funds or establish a new one, please contact me.

Ashley Allison, Executive Directora.allison@wacofoundation.org254.754.3404

Unrestricted Funds Meet CurrentCommunity Needs

J. Carroll and Doris W. Wood FundEstablished by the Wood Family(initially a private foundation).

John F. Horsfull, Jr. FundEstablished by Margaret Horsfull to honor

her family (initially a trust).

Lyle Seley Masterson and Lyle Kay Masterson FundEstablished by a bequest from Lyle Kay Masterson

to honor her mother.

Louis and Rosa Conti FundEstablished by a bequest from James Newberry Todd

to honor his grandparents.

Waco Foundation Unrestricted FundEstablished by an initial donation from Mr. and Mrs. R. B. Parrot

and increased by bequests from the Parrott s and Stephen Goldstein.

NONPROFITORGANIZATIONU.S. POSTAGE

PAIDPERMIT #119

WACO, TX

900 Austin Avenue, 9th FloorWaco, TX 76701-1949

Th e mission of the Waco Foundation is to make a positive diff erence in the lives and future of the people who live in Waco and McLennan County through grantmaking,

promotion of community philanthropy, and support of the not-for-profi t sector.

GRANT MAKING51 years of assisting area nonprofi t organizations$28,182,190 in grants from unrestricted and designated funds MAC SCHOLARSHIP14 years of helping students with higher education$4,079,196 in scholarships$30 million in federal and state grants through assistance with the FAFSA

IMPROVING THELIVES OF OTHERS