bcf annual report 2014 r1

7/21/2019 Bcf Annual Report 2014 R1

1/15

WERE in it for GOOD

1

$1,444,250

39

CREATING AN ENDURING SOURCE

OF FUNDS FOREVER DEDICATED

TO THE GOOD OF BERMUDA

ANNUALREPORT 2013 14

GRANT COMMITMENTS

$4.4 millionTOTAL ASSETS UNDER

MANAGEMENTFUNDS UNDERMANAGEMENT

62GRANTS SINCEINCEPTION

11FUND TYPES:ELEVEN WAYSTO ENGAGE

INCREASEDEFFICIENCIESFOR GRANT-

MAKING

GROWTH INCHARITABLE

ENDOWMENTS

More localgiving

Community philanthropy

exists as a

practice inBermuda


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THE BERMUDA COMMUNITY FOUNDATIONis here for good. Forgive the play on words, but itexpresses the essence of the BCF, the organisation thatexists for the good of the community, forever.

Thats what our founding investors expected when theytook a leap of faith and committed to supporting theBCF, enabling it to sprout from the seed of an idea to a

scrappy, lean start-up.

Having completed a full year since opening for business,the BCF has become an established, functioningorganisation. Still lean but with all the fundamentalsand an effective infrastructure in place.

Today, we can confidently affirm that the BCF is deliveringthe services a community foundation should be delivering.Obviously theres much more to come but you dont builda multi-storey edifice without a strong, enduring foundation.

Our first annual report provides a snapshot of theachievements so far. As you review the material we hopeyou come away with an understanding of three things:

We collect data and thats key if were going tounderstand community needs and the impact thatcan be made by planned philanthropy.

We bring donors together, because collaborationwill enable bigger successes.

Thoughtful, strategic giving is our golden rule.

A few years ago probably soon after the trauma of 2008 philanthropy in Bermuda took a hit. With thedisturbing signs of a reeling economy emerging, donors

started narrowing their focus and the Government beganto cut grants. It soon became glaringly obvious that thenon-profit sector was not just a discretionary luxury tobe cut at will, but a necessity that was in effect providinga social safety net for Bermuda. Faced with the seriousreality, everyone non-profits and their supporters was compelled to start thinking more strategically. Thisis proving to be a positive outcome.

While much needed to change, one thing remains aconstant: Bermuda depends on its non-profit sectorfor human and community services, for the conservationof our land and marine environment, for the proliferationof our arts, culture and heritage.

The Bermuda Community Foundation aims to be apermanent fixture on the philanthropic landscape.Because Bermuda needs the non-profit organisationswe can support, for good.

MESSAGE FROM THE CHAIRMAN & CEO

BCF is here for GOOD

MYRA VIRGIL, CEO &MANAGING DIRECTOR

PETER DURHAGER, CHAIRMAN


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Total giving: $1,444,250 grant commitmentsthrough 62 grants since inceptionThe Bermuda Community Foundation (BCF) facilitatesthree types of grantmaking: 1) donor-advised funds atBCF through applications submitted directly to the donorfunds; 2) a Board-designated central operating fund forgrants to effective programmes; and 3) provision of grantsadvisory services to donor individuals and entities. All of

these grantmaking activities assist donors to direct theirgiving towards the areas that matter to them most and

drive funds towards nonprofit programmes that improvethe quality of life in Bermuda.

Community foundations categorise the funds they holdin different ways, depending on how the funds are to beused and how they will be managed. BCF currentlymanages 39 funds. Some of these funds are invested forthe long or medium term (endowed or quasi-endowed)

and some are managed and disbursed in the short term(12 years, non-endowed, operating and special projects).

BCFs financial year is July 1 to June 30. This first report encompassesactivities from BCFs inception, January 1, 2013, to December 31,2014. Future reports will mirror BCFs fiscal reporting period.

THE FIRST ANNUAL REPORT

Getting started

ASSETS BYENDOWMENT TYPE

DONOR FUNDTYPES

39 FUNDS AT BCF

BCF also categorises funds on the basis ofthe level of participation a donor will have inmaking grant recommendations. Donor-advised funds, for example, enable the donorto be very involved in the grantmaking process.

Special project funds / 3%

Operating fund / 3%

Endowed46%

Agency / 8%

Donor-advised(endowed)

20%

Specialinterest

13%

Unrestrictedor community

15%

Donor-advised(programmatic)

10%

Donor-advised(fiscal sponsorship)

3%

BCF operating / 5%

BCF endowment / 5%

Field of interest / 10%

Designated / 8%

Cedarberry / 3%

Quasi-endowed10%

Non-endowed38%


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Youth Achievementand Community-

Based Education

$544,50025 Grants

Strategy : Ensuringthat communitymembers,particularly youthliving at or below

the povertyline have access

to enrichingeducational andextracurricularopportunitiesthat encouragecareer interests,mentoring rela-tionships and thedevelopment of leadership skills

Arts for All andBermudas Heritage

$55,0002 Grants

Strategy :Advancingarts and cultureinitiatives investmentorganisations thatprovide access,

enlightenmentand enjoyment

for people of allages, backgroundsand abilities toartistic, culturaland historicalprogramming inschools, communitycentres, museums,institutes andpublic spaces.

CaringCommunity

$398,500

18 Grants

Strategy : Supportfor programmes,services andresearch thatimprove the livesof families,

seniors, thedisabled and

other vulnerableresidents(including animals)facing immediateor longer-termthreats of hunger,homelessness,isolation orunmet health andsocial needs.

CharitableInfrastructure

and CommunityDevelopment

$226,25011 Grants

Strategy :Stabilising andstrengtheningBermudasnon-profitorganisations and

neighbourhoodswith personaland communitydevelopment pro-grammes, sportsand recreation,communityempowerment,and plannedgrowth initiatives.

Green and BlueCommunity

$220,0006 Grants

Strategy : Protect-ing and enhancingthe environment,both marine andterrestrial, forthe health and

enjoyment of the community.

This includespreservation,education andadvocacy pro-grammes aimedat short and longterm conservationof Bermudasland, sea and theirbiodiversity.

$$$ Giving by strategic area: inception to Dec. 2014

450,000400,000350,000300,000250,000200,000150,000100,000

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A DIFFERENT VIEW OFTHIS GIVING: SUPPORT

BY CORE MISSION


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FUNDING FOR GREATER IMPACT

Considered together, grants facilitated through BCF canachieve outcomes beyond the strategy or field of interestof a specific donor fund, programme or organisation. Webelieve that a comprehensive multi-pronged approach tograntmaking will ultimately help Bermuda tackle deeplyentrenched social problems like poverty, unemployment,

or poor educational opportunities. We also believe that

thinking about how grant funds are disbursed collectivelyhelps us understand how we are doing on issues likecreating access to opportunities, improving communityhealth and well-being, or promoting the wide range of cultural, artistic and environmental activities that improvelife in Bermuda. Here are the programme areas and issuesthat, collectively, donor funds at BCF have supported.

A deeper view of grantmaking at BCF

$29,000Administration

of Justice

BCT Donor-Directed

$7,500Child AbusePrevention

RenaissanceRe Charitable Fund

$10,000Diagnostic, Intervention

& TreatmentServices (Asthma)

BCT Donor-Directed $50,000Elementary &

Secondary Schools

XL Foundation Programme

$35,000Adult Education

BCT Donor-Directed


$104,500Children &Youth Services

BCT Donor-Directed


The Atlantic PhilanthropiesDonor-Directed Fund at BCF

$113,500Early Childhood

Education

BCT Donor-Directed

Designated Gifts Programme FundHemera Foundation Fund

RenaissanceRe Charitable FundEarly Childhood Development Project

and Research Fund

$20,000Elementary &

Secondary Schools(Alternative School)

BCT Donor-Directed

$5,000Recreation

& Sport


$30,000CulturalHeritage


$45,000Educational Assessment

& Evaluation



$65,000Environmental &Sustainable Design

(Advocacy)

BCT Donor-Directed



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$120,000Environmental &

Urban Beautification


$2,500Hospitals

BCF Central Fund

$25,000Land

Conservation


$82,250Nonprofit

Management

Streetwise 'MBA' FinancialSustainability Programme

$25,000Residential Care


$100,000Extracurricular

Activities (Sailing)


$62,000Intergroup &

Race Relations

Designated Gifts Programme Fund


$50,000 *Literacy

Buechner Society of Bermuda

$35,000Senior Services


$25,000Gifted Education


$29,500Intergroup Relations


$15,000Youth Violence

Prevention

BCT Donor-Directed

$10,000Marine

Conservation


$50,000Experiential Learning /

Recreational Centre



$15,000Services for

Specific Populations


*Grant amount includes a $10,000 inter-fund contributionto establish the Read Write Bermuda Campaign Fund.


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$32,500OrganisationalDevelopment

& Training

BCF Central Operating Fund

BCT Donor-Directed



$40,000Student FinancialAid (Scholarships)


$25,000VolunteerismPromotion


$50,000 Wildlife Preservation

& Protection


$100,000Substance Abuse,

Dependency, Prevention& Treatment

BCT Donor-Directed



$41,000Youth Development

Programmes(Mentoring)

BCT Donor-Directed



$5,000TransportationAssistance


DONORS SUPPORTED GRANTEESIN UNDERTAKING THE FOLLOWING

STRATEGIES TO ACHIEVETHEIR MISSIONS

Community-basedprogrammes

21%

Community-basedservices

16%

Formal education / 8%

Information & education / 2%

Infrastructure or capital improvements / 4%

Licensure, accreditation or compliance / 1%

Outreach & communications / 9%

Research / 7%Financial support / 4%

Land or building acquisition / 5%

Advocacy / 5%

Building construction, renovations / 8%Capacity building / 10%


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The RenaissanceRe Charitable Fund has madesignificant contributions to nonprofits in the fields of youth development and human services; their givinghas been enhanced by a keystone infrastructuregrant to revamp parts of the Bermuda Railway Trail.

The Streetwise MBA Programme was launchedat Bermuda College, creating an opportunity forsmall business owners and nonprofit managers todeepen their knowledge of financial and businessmanagement techniques in order to improve theirability to manage their organisations successfully.

ReadWriteBermuda Campaign for Literacy :Established with a seed donation from the BuechnerSociety Fund of Bermuda, this campaign hascontributed to efforts to improve literacy inBermuda. Anyone who cares about reading, writingand numeracy can make a contribution to the fund!

De Weg Fund for Education : Established by Rachelvan de Weg, this fund exemplifies how creativityand matched-giving can grow a Cedarberry Fundinto a Donor-Advised Fund in less than one year!Its founder will be ready to make grants from thefund in late 2015.

RenaissanceRe Charity Challenge : Endowmentcontributions were pledged to the following agenciesupon the launch of their own endowment fundsat BCF: Greenrock, Western Stars Sports Club,The Family Centre, Coalition for the Protection of Children, Open Airways, Bermuda Debate Society,Bermuda High School for Girls PTA, DiversityInstitute of Bermuda, National Dance Foundation,Bermuda Audubon Society, Bermuda NationalAssociation of Social Work, Ida James MemorialFund for Social Work and Age Concern Bermuda.

Ida James Memorial Fund for Social Work :When the Bermuda National Association of SocialWorkers decided to honour respected colleaguethe late Ida James, they believed an endowmentfund would be a respectful tribute. Established inOctober 2014, investment returns will providecapacity building and professional developmentfunding opportunities for practicing social workers,service providers and social work students orfor community-based social work programmes.

! Programme highlights

FUNDS ESTABLISHED AT BCF

DONOR FUNDS & GRANTMAKING:A SAMPLE OF THE FUNDS THAT

HAVE BEEN ESTABLISHED AT BCF


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Early Childhood Development : Funding forresearch into 03-year-olds in Bermuda and whysome are failing to thrive was made availablethrough the Early Childhood Development Projectand Research Fund, which was established by theHemera Foundation with additional contributionsfrom the Bank of Bermuda Foundation, theGutteridge family and private donors. The firstreport is anticipated to be released for stakeholderconsultation in April 2015.

TalkWell Bermuda : In the works is a seriesof moderated blogs premised on the idea thatrespectful dialogue can help the communityexplore and resolve meaningful social issues.http://www.talkwell.org/

Diversity Initiative Fund Tribute : The belief inthe power of people to create change lives on inthis fund established by the Diversity Institute of Bermuda. BCF will host DIBs former members in acelebration of the agencys work in 2015 throughthe public launch of the fund and the publication of a commemorative booklet.

Give Bermuda Pilot : GiveBermuda.org, ouronline grantmaking platform, which we will makeaccessible to the whole philanthropic sector, hasbeen re-launched. This will be a powerful resourcefor funders that do not currently have a grantsmanagement tool and who want access to a robustglobal platform without incurring the set-up andannual costs of managing one themselves.

Friends of Bermuda Community Foundation :In December 2014, the Friends of BCF Foundationwas established as a 501(c)(3) tax-exempted UScompany. Friends of BCF facilitates giving toBermuda-based registered charities from Americandonors with a connection to Bermuda.

SAC : On July 24, 2014, Conyers Dill & Pearmanadvised BCF on its conversion to and registrationas a segregated accounts company under theSegregated Accounts Companies (SAC) Act. As asegregated accounts company, BCF now has thecapability to establish segregated charitable funds(i.e., ring fencing Donor-Advised Funds and AgencyFunds for significant donor groups from othercommunity funds, protecting them from liabilitiesor obligations of other funds).

Programme highlights

AND WHAT THEY ASPIRE TO ACHIEVE

SPECIAL INITIATIVES: SOME OFTHE DONOR FUND AND BCF

PROGRAMME INITIATIVES

For more information and details on how to make contributions to Funds at BCF, go to www.bcf.bm

!


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Summary statement of financial activities

BCF BCF Non- Endowment 2014 2013 NotesOperating Endowment Endowment Funds 2014 2013

Funds Funds Funds$ $ $ $ $ $

IncomeFunding received 466,299 534,537 1,000,836 7,242 1Donations and other 891 891 3,420incomeTotal income 467,190 534,537 1,001,727 10,662

ExpenditureGrants and 534,537 534,537 2contributionsOperating expenses 467,190 467,190 10,662

3

Total expenditure 467,190 534,537 1,001,727 10,662

Net surplus (deficit)

BALANCE SHEET AS AT JUNE 30, 20142014 2013

$ $InvestmentsInvestment in property 454,000 6

Fixed assetsComputer equipment 4,660

Current assets

Cash at bank and in hand 3,930,842 908,709Prepaid expenses 2,900

3,933,742 908,709

Total assets 4,392,402 908,709

Current liabilitiesAccounts payable 17,880 7,230

Non-current liabilitiesDeferred contributionsBCF Operating Funds 1,154,745 636,044 5

Non-Endowment funds 1,490,898 265,435

2,645,643 901,479

Equity BCF Endowment Funds 1,500,000 4Endowment Funds 228,879

1,728,879

Total liabilities & equity 4,392,402 908,709

for the Year Ended June 30, 2014

5

4


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Notes to the financial statements

1 Funding receivedThe Bermuda Community Foundation (the "Foundation") has elected the Deferral method of accounting for contributions.Endowment funds are held as capital funds and as such are not normally expendable.The income from investing capital endowment funds is expendable.No income was earned on endowment funds for the current and prior year, as the funds will only be invested in August 2014.Non-Endowment Funds are only in the form of restricted contributions.All current period expenses for Non-endowment funds are recognised as revenue/funding received.All future expenses under Non-endowment funds are deferred and recognised as revenue in the same period the expenses arerecognised.All funding received to finance the operations of the Foundation is classified as either BCF Endowment Funds (if the capitalfunds are not expendable) or BCF Operating Funds (if the capital funds are expendable).

2 Grants and contributionsThis expenditure includes all grants and contributions made by the Foundation from both Endowment and Non-endowmentfunds.In the current and prior year, no grants and contributions were made from Endowment funds.A summary of the expenditure is provided below:

Non-Endowment Funds2014 2013

Grant recipients $ $Financial Sustainability & Streetwise MBA @ Bermuda College 82,250 Friends of Bermuda Railway 120,000 The Family Centre 75,000 YouthNet 20,000 Bermuda Sloop 100,000 Knowledge Quest 10,000 The Reading Clinic 20,000 Windreach Bermuda 20,000 ABIC Scholarships / RenRe 5,000 Early Childhood Development Project & Research 42,287 Cedarbridge PTSA Read, Write, Bermuda Campaign Partnership 40,000

Total 534,537

3 Operating expensesThese costs represent the programme and development support costs of running the Foundation.These operational expenses include the costs of administering grant programmes and can be broken down and summarisedas follows:

2014 2013$ $

Programme development 74,440 8,004Office administration 26,185 2,644Legal expenses 2,500 14Rent and utilities 14,400 Software implementation and maintenance 239,219 Salaries and wages 110,446

Total 467,190 10,662


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Notes to the financial statements

4 EquityEndowment funds are recognized directly in equity. This relates to capital funds which are not expendable.A summary is provided as follows:

2014 2013BCF Endowment Funds $ $The Atlantic Philanthropies 1,000,000 RenaissanceRe 500,000

Total 1,500,000 Endowment FundsDonor-Directed (Includes Cedarberry) 185,615 Designated 4,950 Field of Interest 35,814 Agency 2,500

Total 228,879

Total endowment funds 1,728,879

5 Deferred contributionsAll Non-Endowment Funds are in the form of restricted contributions. All future expenses under Non-endowment fundsare deferred and recognised as revenue in the same period the expenses are recognised. Funding received in the form ofexpendable capital, to finance the operations of the Foundation, is classified under BCF Operating Funds.

The Foundation's Operating Fund balance as at year end is $1,154,745 (2013: $636,044).The donors to the BCF Operating Fund are listed below:

BCF Operating Fund donorsThe Atlantic PhilanthropiesThe Atlantic Philanthropies Challenge MatchRenaissanceReBloomberg Philanthropies

XL FoundationCF Feasibility Assessment ContributionBridge Charitable TrustConyers Dill & Pearman (Gift-in-kind)Core Operating Regrant c/o Fiscal Agent

The Foundations Non-Endowment Fund donors and Deferred Contribution balances are summarised below:2014 2013

Non-Endowment Fund donors $ $The Atlantic Philanthropies Fund at BCF 150,000 RenaissanceRe Charitable Fund 1,030,000 RenaissanceRe Designated Funds (Friends of Railway Trail, Bermuda Sloop Foundation)Buechner Society of Bermuda Fund for Family Literacy & Literature 85,000 Financial Sustainability & Streetwise MBA Regrant 55,500 137,750

BYDFC Capacity Building Regrant 41,860 41,860Capacity Building Regrant 85,825 85,825Early Childhood Development Project & Research Funders 7,713 Hemera 35,000

1,490,898 265,435

6 Investment in propertyInvestment in property represents assets owned by The Foundation for capital appreciation or rental income.During April 2014, as a part of the BCF Endowment received from The Atlantic Philanthropies, 1,343 shares in the SterlingHouse building were transferred to the Foundation. These shares were independently valued at $338 per share representinga total market value of $454,000.


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The strategy for change

INCREASED PHILANTHROPIC RESOURCES AND CAPACITIES

ROBUST, MULTI-PURPOSEPHILANTHROPIC

INFRASTRUCTURE

FIT-FOR-PURPOSE,ADVANCED

TECHNOLOGY

PROVEN FUNDINVESTMENTSTRATEGIES

DEEPSECTOR

KNOWLEDGE

1. Build andoperate thecommunity

foundation

2. Fund devel-opment/buildpermanent

endowments

5. Onlinedonations andindividual

campaigns

6. Informationmanagementand technology

3. Manage andinvest funds

4. Grantmaking,managedprogrammes,

donor services

Platform forstructured,sustained givingaddressesever-changingsector andsocial needs

Planned andlegacy giftsbecome asustainingnonprofitrevenue stream

Simplified, moreefficient, moreaccessible givingand fundraisingsystems enhancetransactions

Donor decisionsare influenced bydata and metrics;better accessto informationon socialprogrammes

Pooled invest-ment portfolioyields returnswhile segregatedaccountingensures thatfunds go tointendedpurposes

Shared philanth -ropic services/systems reducefees; improveefficiencies,increase anddiversify invest-ments in effectivesolutions toproblems

Permanence

Local giving

Endurance

Lasting giving

Effectiveness

Easier giving

Quality

Smarter giving

Growth

More funding

Efficiency

Less waste

Community philanthropy exists as a practice in Bermuda: it positively impacts how giving is done(donors philanthropic wishes are respected; giving is impactful); how the philanthropic environment

is experienced (accessible, equitable) and how the sector is sustained.


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IT CommitteeDavid Atwood

Scott HumphreyDavid Petty

Somers Drake

Finance Committee & Bookkeeping SupportElizabeth Lee

Thelma KachisaSandy Furtado,Windcrest Management Ltd.William J. Carr, Windcrest Management Ltd.

Communications SupportPaul Shapiro, Brimstone Media Ltd.

Paul Dobson, Yellow PagesCharles Doyle, Yabsta

Legal & Corporate Secretarial SupportPeter Pearman, Conyers Dill & Pearman

Scott Davis, Codan Services Limited

Investment Committee & Advisory SupportTodd FonnerWilliam Gray

Alexander Cutler, Orbis Investment Management Limited

Grants Programme Support, Donor Fund Project Teams& Strategic Advisors

Zakiya JohnsonDr. Edmina Bradshaw

Dr. Tamara Gathright Fritz, StrategicEvaluation Consulting

Sarah CookeCummings V. Zuill

Frank MutchTony McWilliam

Katrina Ball

BCF Central Endowment & Operating Fund DonorsThe Atlantic Philanthropies

RenaissanceReBloomberg Foundation

Buchanan Charitable FundXL Foundation

Individual contributors

We would also like to acknowledge the Friends of BermudaCommunity Foundation Board

Robin MastersWilliam Holmes

OUR TEAM

BCF Board of DirectorsPeter Durhager, Chair

Michael BraceBrian OHara

Amanda OuterbridgeMichael Schrum, Treasurer

Nikkita ScottMyra Virgil, Assistant Secretary

BCF Staff / General Administration SupportMyra Virgil,CEO and Managing Director

Michelle Grant, Programme Associate(February 2015present)

Lauren Yelle-Simmons(Contract, March 2013October 2014)

Sheila Thompson (Contract)DeAndrea Easton (Contract)

Volunteer Advisors, Consultants & Contractors


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Get in Touch

BERMUDA COMMUNITY FOUNDATIONSterling House, 16 Wesley Street, 4th Floor

Hamilton, Bermuda HM 11

Founding Investors

and private donors

A community foundation is an independent grantmakingorganisation comprised of permanent and component fundsestablished by many donors to carry out their charitableinterests for the broader interests of and benefit of localresidents and to offer a solution to simply charitable giving.

BuchananCharitable Fund

XL GroupInsurance

Reinsurance

bcf annual report 2014 r1

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