2002

INFORMATION: E

VE

RY

ON

E.EVERYWHERE.AN

YT

IME

.

ANNUAL REPORT

BEAUMONT FOUNDATION of America

BEAUMONT FOUNDATIONof America

a not-for-profit corporation

470 Orleans, First Floor Beaumont, Texas 77701 409.838.1812 www.bmtfoundation.com

Information for everyone, everywhere, anytime.

BFA Layout 4.1 4/4/03 4:17 PM Page 1

w a y n e a . r e a u dis the founder of the firm of Reaud, Morgan &Quinn and is known throughout the legal communityas a champion of working men and women. Hereceived his law degree from Texas Tech Universityin 1974. Mr. Reaud is a former member of the LamarUniversity Board of Regents, is a former Directorof the Texas Trial Lawyers Association and a pastPresident of the Southeast Texas Trial LawyersAssociation. He is a Life Fellow of the Texas BarAssociation, a Fellow of the International Society ofBarristers and is listed in Best Lawyers of America.

g i l b e r t i . l o w is a partner in the firm of Orgain, Bell & Tucker,L.L.P., where he specializes in litigation representingclients in major cases. He received his law degreefrom the University of Texas School of Law in1960, graduating with highest honors. Mr. Low isformer Chairman of the Texas Supreme CourtEthics Committee and is Vice Chairman of theTexas Supreme Court Advisory Committee. He islisted in Best Lawyers in America.

r o d c . k e l l e r , j r . currently serves as Executive Vice President ofToshiba’s Computer Systems Group (CGS), man-aging the strategic direction of the three divisionsthat comprise CGS – the Computer SystemsDivision, Computer Systems Engineering and PC

Configuration Center. Mr. Keller received a Bachelorof Business Administration with concentration inmarketing in 1981 from Southwest Texas StateUniversity. He was listed in Who’s Who Among Studentsin American Universities and Colleges.

BOARD of DIRECTORS

Launching a foundation and joining the ongoing cause of promotingequal access for all has generated remarkable benefits and challenges.Our first year has been rich with dialogue. The days are long, the hours areprecious and every moment offers endless promise. There has been anabundance of growing pains and an equal dose of accomplishments.

Lessons learned are countless and continue. Our achievements arereflected in the more than 120 schools and community-based programsfunded in 2002; in our growth from a staff of three to more than 40professionals recruited near and far; in the tremendous enhancementof our operational infrastructure such as our online application; and inthe more than 20 alliance partners of America’s most noted nonprofitorganizations. All demonstrate the strong support provided to individuals,communities and schools benefiting from our grants.

We remain dedicated to self-improvement, best practices andleveraging our voice to advance what we believe to be one of the majorsocial justice issues of the decade—digital equity and inclusion.Knowing we are but one component of this ongoing endeavor, our goalis to build a nationwide coalition of foundations, corporations, non-profits, schools, faith-based organizations, elected officials, professionalsand community leaders to support our philanthropic contribution tothe United States.

We hope our work will serve as an example for the creation ofsimilar foundations that may arise from class action lawsuits. And weforesee developing and sharing operational systems that may benefitothers dedicated to digital equity.

Our success will be defined by our grantees, alliance partners andnetwork of relationships. We are honored and humbled that they willbe the face, heart and soul of the Beaumont Foundation of Americathrough our lifespan, and our legacy will be lives transformed by technology. Please accept our gratitude for your continued support.

W. F R A N K N E W T O N , President and Chief Executive Officer

When the concept of a new Foundation using unclaimed funds from a class

action lawsuit was first introduced, I was intrigued with the prospect of

making a lasting contribution. The hard work and unwavering commitment

of friends, partners, staff and many others have provided

the momentum. The Beaumont Foundation of America

is on the map. Thank you!

Computers can provide

news and information, job

skills and a simple ability

to keep in touch. I am happy

to work with a group trying

to bring those things to

schools, community groups

and individuals... who can’t

afford them.”

from thePRESIDENT

dave freuenthal, wyoming governor

“

BFA Layout 4.1 4/4/03 4:17 PM Page 3

Pilot Year Grantees 2002

Pilot year grantees offered an opportunity for the Foundation to explore relationships

with diverse populations we eventually hope to serve in all 50 states and the District

of Columbia. It was an opportunity to discover what works and what doesn’t in

trying to achieve digital equity. We learned many valuable lessons from the schools

and community organizations with which we were privileged to work and encourage

you to visit the Yearbook section of our website for additional insight.

i l l i n o i s $ 1 , 5 0 0 , 0 0 0

During the Foundation’s initial year, fiveChicago community-based organizations and14 public schools were selected to receiveequipment. The city united to share resourcessuch as training and software. Students enjoymobile computers at schools, where the com-munity gets involved in after-hours technologyprojects. Foster care parents and underservedcommunities benefit from improved communi-cations. Computers generating positive imagesare offered late-night at various sites throughoutthe city, and a coordinator reports residents atthe housing authority gather around at-homelaptops rather than a television.

n e w y o r k $ 1 , 5 0 0 , 0 0 0

The Foundation, in collaboration withCongressman Charlie B. Rangel and the NewYork City Department of Education, partneredto build and enhance access to technology in 27 schools and community-based organizationsin New York City. The goal was to promotecollaboration that positively affects the wholelife of the community with schools sharingresources as community learning centers.Programs are designed to serve as the backbonefor organizing, building and strengtheningcommunities and run the gamut from access totechnology for individuals with disabilities toworkforce development for youth; technologyliteracy programs for elementary and middlegrade students to parent-centered activities andtutorials; and promoting technology careers foryoung women of color to technology programsfor homeless families.

n e w m e x i c o $ 5 0 0 , 0 0 0

gadsden independentschool districtRiverside ElementaryDesert View ElementarySunland Elementary

west las vegas school districtWest Las Vegas Middle SchoolWest Las Vegas Valley SchoolDon Cecilio Martinez

Elementary

zuni public schooldistrict Zuni Middle SchoolZuni High School

With Hispanic and Native American studentpopulations between 97 to 99-percent low-income, three districts were selected by theNew Mexico State Department of Education toincrease access to technology for economicallychallenged families. Geographically and demo-graphically diverse and serving extremely ruralpopulations, the schools function as hubs in thecommunities of Zuni, Gadsden and West LasVegas where the schools incorporate technologyto increase student achievement, especially inreading, language arts and math.

new york cityAlianza DominicanaAmber Charter SchoolChoir Academy of HarlemConvent Avenue Family

Living CenterEast Harlem Council for

Community ImprovementGeorge Washington

High SchoolHarlem Children’s Zone Harlem Congregation of

Community InvolvementHarlem Partnership CenterHarriet Tubman Family

Living CenterIntermediate School 195

Roberto Clemente School Intermediate School 275

Henry Highland Garnet School

Public School 30 Hernandez-Hughes Learning Academy

Public School 38 Roberto Clemente School

Public School 57James Weldon Johnson School

Public School 92 Mary McLeod Bethune

Public School 96 Joseph Lanzetta

Public School 129 John H. finley Campus

Public School 154 Harriet Tubman School

Public School 161 Don Pedro Albizu Campus

Public School 180 Hugo Newman

Public School 197 John B. Russwurm School

STRIVE (Supporting and Training Result in Valuable Employees)

Technology and Learning Center (TLC) at the Armory

Wadleigh Middle SchoolYM & YWHA of Washington

Heights and Inwood

chicagoBethel New LifeCabrini ConnectionsChicago Housing AuthorityChicago Public Schools:Beidler Carver Primary Chopin Corkery Elementaryfield ElementaryLara AcademyLloyd ElementaryMarconi AcademyMireles AcademyMontefiore Special SchoolOwen Scholastic AcademyPalmer SchoolParkside ElementaryRoss Elementary

Lawndale Christian Development Corporation

One Economy CorporationUhlich Children’s Home

BFA Layout 4.1 4/4/03 4:17 PM Page 5

north dakota $ 5 0 0 , 0 0 0

The Foundation partnered with the NorthDakota Department of Education to establish a school and community technology infrastruc-ture that increases utilization of technology incurriculum areas as well as adult access to information for community enrichment. Fourschools in primarily rural Native Americancommunities house computer labs to supportthis effort. Beyond regular academic activities,technology is used for music class, creating aschool newspaper and making maps in geology.Adults, community members and seniors oftenaccess the equipment for literacy classes, careerresearch and simply for basic skills such as keyboarding.

carsonRoosevelt Public School

dunseithDunseith Public Schools

spirit lake nation reservationFort Totten School District

standing rock reservationFort Yates Public School

District #4

south dakota $ 5 0 0 , 0 0 0

Ten schools and two community organizationswere chosen by the South Dakota Departmentof Education and Cultural Affairs’ Office ofTechnology. In mainly Native American high-poverty districts, students use technology tointerview tribal elders, to document a bison killand to research the Badlands. Technology alsowill support students who live in the Hutteritecolonies, where an ancient German dialect isspoken exclusively until the age of six, toimprove reading and writing skills.

alexandriaHanson School District

eagle butte, cheyenne river reservationCheyenne River BIA

Junior High School

kyle, pine ridge reservationLittle Wound School

martinBennett County School

marty, yankton reservationMarty Indian School

mclaughlinMcLaughlin School District

pine ridge, pine ridge reservationRed Cloud Indian School

porcupine, pine ridge reservationPorcupine Year Round

School

rapid cityRapid City Area

School District

roslynRoslyn ISD

sioux fallsSoutheastern Behavioral

Health Care

spearfishNorthern Hills

Training Center

austinBoys & Girls Clubs

of the Capital Area

beaumontAll Saints Episcopal School Art Museum of

Southeast TexasBeaumont Housing

AuthorityBeaumont Independent

School District:Blanchette Elementary Dunbar Elementary fletcher Elementary Martin Elementary

Boys’ Haven of America, Inc.CASA (Court Appointed

Special Advocates) of Southeast Texas, Inc.

Catholic CharitiesCommunities in Schools

of Southeast TexasDiocese of Beaumont’s

Hispanic MinistryFamily Services of

Southeast TexasGirls’ Haven, Inc.I Have a DreamInspire, Encourage, Achieve

(IEA)-Ben’s KidsJefferson County Juvenile

Probation CenterLamar University

Department of EducationMemorial Hermann

Baptist HospitalPartners Resource

Network, Inc.Salvation Army’s

Boys & Girls ClubSalvation Army’s Home

Sweet Home ProgramSoutheast Texas Family

Resource CenterYWCA

corpus christiCorpus Christi Independent

School District:Carroll Lane ElementaryCasa Linda ElementaryCentral Park ElementaryCrockett ElementaryFannin ElementaryGarcia ElementaryHouston ElementaryLos Encinos Menger ElementaryOak Park

el pasoTexas Cooperative Extension,

Texas A & M University

houstonTexas Cooperative Extension,

Texas A & M University

laredoLaredo Boys & Girls ClubLarga Vista

Community CenterSanto Niño

Elementary SchoolSenator Judith Zaffirini

Elementary School

wacoCommunity Training CenterThe Rapoport AcademyTexas State Technical CollegeWaco Independent

School District:A.J. Moore AcademyUniversity High SchoolWaco High School

weslacoTexas Cooperative Extension,

Texas A & M University

We are excited that our students will have the opportunity to enhance their readinglevels in our new technology lab. Having their parents attend computer and ESLclasses will be a great step toward bringing community and school together.”

texas $ 1 , 5 2 5 , 0 0 0

Working close to home offered the Foundationan opportunity to work with administrators,teachers and community program directors ininnovative projects with an emphasis on involv-ing the entire family. Programs include parentsusing technology to learn English to keep upwith their teens, children with disabilities doingresearch and a study of the effect of technologyon two youth groups from disparate back-grounds. Grantees include K-12 schools and adiverse group of community organizations andgovernment agencies that serve low-incomecommunities.

— anna torres, principal, senator zaffirini school, laredo, tx

“

BFA Layout 4.1 4/4/03 4:17 PM Page 7

Balance SheetassetsFixed Assets

Leasehold Improvements 134,785.43Office Equipment 443,993.60

Total Fixed Assets 578,779.03

Other AssetsInvestments

Community Bank Investments 10,002,782.56Northern Trust Investments 347,547,232.36

Total Investments 357,550,014.92

Total Other Assets 357,550,014.92

liabilities & equityEquity

Retained Earnings 351,615,343.70Net Income 6,513,450.25

Total Equity 358,128,793.95

Total Liabilities & Equity 358,128,793.95

Profit and LossJanuary-December 02

ordinary income/expense incomeInterest Income 8,523,056.09

Miscellaneous Income 11,324.00Realized Gain/Loss 9,318,193.07

Class Settlement 802,857.31

Total Income 18,655,430.47

expenseBank Management Fees 261,727.05BFA Hardware/Software 202,584.78

Board Compensation 111,000.00Communications 37,087.85

Dues and Subscriptions 748.00Grants Issued 5,869,404.80

Job Advertising 537.00Meetings / Seminars 70,859.07

Miscellaneous 10,275.89Moving Expenses 4,590.90

Occupancy Expense 74,178.22Office Equipment / Supplies 70,171.45

Payroll/Benefits 1,852,363.71Postage and Delivery 14,090.46

Printing and Reproduction 2,194.45Marketing/Professional Fees 3,254,506.92

Training and Education 5,675.64Travel 299,984.03

Total Expense 12,141,980.22

Net Ordinary Income 6,513,450.25

Net Income 6,513,450.25

BEAUMONT FOUNDATION of America

Providing access to technology and theskills to use it plays a tremendous rolein leveling the playing field for Boys &Girls Club members. Our partnershipwith the Foundation will put technol-ogy in the hands of thousands of youthacross the country, transcending bound-aries and providing them with a link tothe world.”— roxanne spillet, president,

boys & girls clubs of america

The Beaumont Foundation of America strongly supports ongoing comprehensive

efforts for digital equity. By partnering with respected national organizations to

establish strategic alliances, the Foundation’s philanthropy is greatly enhanced as

we strive to advance underserved communities.

These organizations have committed leadership, an established relationship with

underserved populations and a history of addressing the needs of society. Collaboration

therefore affirms our mission and allows the Foundation to involve entire com-

munities, thus completing and complementing a successful technology coalition.

AC4 (The Association of ChristianCommunity Computer Centers)

Alliance for Technology Access*

Aspira*

Boys & Girls Clubs of America

Boy Scouts of America

Communities in Schools (CIS)*

CTCNet (CommunityTechnology Centers’Network)*

Bill & Melinda Gates Foundation

Girl Scouts of the USA

Intel® Computer Clubhouse

Alliances

Intel® Model School Program

League of United Latin American Citizens (LULAC)*

NAACP*

National Urban League*

NetDay

Points of Light Foundation

Ronald McDonald House Charities

Salvation Army

Shriners Hospitals

Technology For All

YMCA

YouthLearn*

* National Community Coalition members

“Profit and Loss

AS OF DECEMBER 31, 2002 (Unaudited)

YEAR ENDING DECEMBER 31, 2002 (Unaudited)

BFA Layout 4.1 4/4/03 4:17 PM Page 9

Group A States

AlabamaAlaskaCaliforniaColoradoDistrict of ColumbiaHawaiiIdahoIllinoisKansasMississippiMontanaNebraskaNew MexicoNew YorkNorth DakotaOregonSouth DakotaTexasVirginiaWashingtonWest VirginiaWyoming

Group B States

ArizonaArkansasConnecticutDelawarefloridaGeorgiaIndianaIowaKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMissouriNevadaNew HampshireNew JerseyNorth CarolinaOhioOklahomaPennsylvaniaRhode IslandSouth CarolinaTennesseeUtahVermontWisconsin

The Future

After the 2002 pilot year, the

Beaumont Foundation of America

will continue to allocate awards

to individuals, schools and com-

munity organizations across the

United States to assist in advanc-

ing digital equity and inclusion.

Distribution is based on the 2000

Census numbers for population

and poverty.

During the 2003 grant year we will award technology equipment to K-12 schools, communityorganizations and individuals in 21 states and theDistrict of Columbia that comprise the Group Astates. In 2004 we will award grants in theremaining 29 states that comprise Group B.

In 2005 we return to Group A states withsimilar grants, and in 2006 to Group B. The lifeof the Beaumont Foundation of America willconclude when the approximately $350 millionin technology grants is fully distributed acrossthe United States.

We believe, given access to technology equip-ment and digital information, people will have a more equal opportunity to advance socially,economically and intellectually. Our promise isto try to make a positive difference in as manylives as possible in the course of our lifespan.

The Foundation goes beyond contributing technology equipment. They provide

the impetus and focus needed to make schools not just computer owners but

effective technology users.”

Frank NewtonPresident and Chief Executive Officer

Donald L. GroningerVice President, Chief Operating Officer

DaleAnn StatesVice President, Treasurer, Chief Financial

Officer

Robert W. CraftSecretary and General Counsel

Daryl Ann BorelExecutive Director of Grant Administration

Ed KellerExecutive Director of Grant Review and

Authentication

Barbara DuncanDirector of Community Grants

Franny OxfordDirector of Human Resources

Sean RichardsonDirector of Information Technology

EXECUTIVE STAFF

— mark gura, director of instructional technology, new york city department of education

“

The latest technology and information is critical to providing a solid education for Nebraska students. I applaud the Beaumont Foundation’s efforts.”

— ben nelson, nebraska senator

“

PROGRAM OFFICERS

Angelique AlbertScout CarrShirley De La CruzDavid GeilhufeCecilia GutierrezNora Jean HernandezLois LoofbourrowRoderick Natta Marian PekarVirginia S. PeoplesOllie RashidMichelle ReynoldsMichael D. SmithShannon Sullivan

BFA Layout 4.1 4/4/03 4:17 PM Page 11