OREGONAnnual Report 2018

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DEAR FRIENDS,We have a lot to be proud of this year, but we know that our biggest challenges still lie ahead. Climate change is altering life as we know it in Oregon: catastrophic summer wildfires are the new norm, native plant and animal species are struggling to adapt to warming

temperatures, coastal fisheries are threatened with the risk of collapse, and people are facing water shortages, property loss and sea-level rise. The Nature Conservancy has the science, expertise and experience to make a difference, but we can’t do this critical work alone.

As we here in Oregon continue the innovative leadership for which our state has long been known and push to achieve significant success under TNC’s global Shared Conservation Agenda, collaboration with partner organizations, policymakers and supporters like you is more important than ever. That’s why we’re eagerly awaiting the opening of the Oregon Conservation Center in our renovated Portland office building. Designed as a gathering place, our reimagined headquarters will serve as a community resource by bringing diverse perspectives, thought leaders and change-makers together to put Oregon, and the world, on the path to protect nature for future generations.

We hope you will join us there.

Jim Desmond, Oregon State Director

ON THE COVER The last swirls of summer at Upper Beaver Falls, Oregon © Margot Kelley/The Nature Conservancy Global Photo Contest 2018 THIS PAGE left to right Rendering of the new building © LEVER Architecture; Oregon State Director Jim Desmond © Tim Jewett; OPPOSITE PAGE Blue butterfly photographed along the Coquille River near Powers, Oregon © Steve Dimock

The Nature Conservancy in OregonOFFICERS AND EXECUTIVE COMMITTEEChair: Margaret Kirkpatrick

Vice Chair:Charles Wilhoite

Chair Emeritus:John von Schlegell Executive Committee Members Steven H. CoreyBetsy CramerDavid C. HarrisonRob Hinnen

Steve PrattCurtis RobinholdSandy RoweChristine Vernier

MEMBERSKathy Shaloo BergMarcilynn A. BurkeJohn CarterScott ChambersHolly CoitNick EhlenJeffrey A. Evershed Jonathan Fink Roger HinshawWilliam Johnson Julie Jungers

Lorelei JuntunenCatherine Kordesch Kristin Luck Eileen O’Neill Odum Merritt Paulson Judy BlueHorse Skelton Roy W. Tucker Carol Wendt

SHARED CONSERVATION AGENDA

The problems our world faces are solvable. If we can make significant changes in the way we manage our lives, everything from our health to our economic systems and our governing policies, we can create a world where people and nature thrive. By implementing the Shared Conservation Agenda in Oregon and beyond, we can put the world on track to a healthy future for all.

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SHARED CONSERVATION AGENDA

Ensuring Sustainable Food and Water“I love to fish. If we can graze cattle AND help raise more fish,

that’s huge for our community. The amount of jobs, the number of people who come here to fish, and

knowing my kids can grow up fishing while our cattle graze right next to them—I’m all for restoring critical habitat for salmon in this area.”

—Reed Stacey, rancher in southwest Oregon

Protecting Land and Water“In an era of large and damaging wildfires, protecting our

land, forests, watersheds, communities and homes will take collaborative effort. The reach, capability and contributions of The Nature Conservancy on this issue have been exceptional and highly influential. TNC’s science support to the Rogue Basin Cohesive Forest Restoration Strategy. advanced a practical and ecologically sound response to the basin’s wildfire predicament, and this collaborative effort illustrates how people can work together to address differences and reduce the risk of severe wildfires.”

—Paul Hessburg, research landscape ecologist, USDA Forest Service, Pacific Northwest Research Station

Addressing Climate Change“To avoid the irreversible consequences of climate change, we need to keep global warming to less than 2° C, and preferably less than 1.5° C. For this to happen, we need to significantly reduce emissions as soon as possible and increase sequestration in our natural and working lands. How quickly we act to reduce and offset greenhouse gas emissions will have profound effects on the health and prosperity of businesses, communities and ecosystems in Oregon and around the world. “

—Catherine Macdonald, director of external affairs, TNC Oregon

Connecting People and Nature

“Nature nurtures both the body and the soul—the benefits for health and well-being are undeniable. We must be as diligent in conserving our environment as we are in improving our health because the two are inextricably connected. Healthy people are the product of healthy places.”

—Dr. William Johnson, president of Moda Health and TNC Oregon trustee

Building Healthy Communities “It has become clear that water in Harney Basin

is overallocated and that we are not using groundwater at a sustainable rate. The decisions that need to be made to correct this are not just difficult decisions—they are life-changing ones

for the people in my community. We are working through this issue with multiple

stakeholders in a collaborative process we call place-based planning. The Nature Conservancy is a trusted and valuable partner in this effort, thanks to their ability to understand the social and economic concerns of Harney County as well as the ecological.”

—Mark Owens, Harney County commissioner

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PROTECTINGLand and Water

THIS PAGE left to right Sycan Marsh © Craig Bienz/The Nature Conservancy; White grass nuts along Upper Table Rock Trail © Ben Herndon/Tandem Stills+Motion; Sage grouse © Joe Kiesecker/The Nature Conservancy; OPPOSITE PAGE clockwise, left to right Sage grouse © Joe Kiesecker/The Nature Conservancy; Volunteers pull weeds at Blind Slough Swamp Preserve. © Catherine Dunn; Melissa Reich paddles in Blind Slough Swamp. © Catherine Dunn

“Bringing scientists and fire workers together advances skills on all sides as we learn from each other and share ideas and expertise. With everyone at the table, we’re able to engage on policies, practices and partnerships with the common goal of protecting our lands and waters.”

—Craig Bienz, Sycan Marsh program director, TNC Oregon

Protecting Sage GrouseAs our scientists develop more effective ways to restore sagebrush habitat and native grasses in eastern Oregon, our Government Relations team has been working with stakeholders and government agencies to secure funding to implement the state’s official Sage-Grouse Action Plan. With your help, we’re committed to restoring the sagebrush sea and protecting the iconic birds that call it home.

Passing the Baton We began working with North Coast Land Conservancy (NCLC) to protect the Oregon silverspot butterfly in the 1990s. Since then, we’ve watched the organization

grow from a fledgling land trust to a pillar of the coastal conservation community. Our two organizations have several volunteers and staff alumni in common and have been hosting work parties together on Blind Slough Preserve for several years, removing non-native English ivy and other weeds that threaten the forest. We believe in the people and mission of NCLC, and it’s our shared commitment to the ongoing stewardship of the coast that convinced us that Blind Slough would be well-served in their capable hands. We’re excited to continue our long-term relationship with the preserve after we transfer ownership to NCLC this fall.

Sycan Marsh Preserve: A Living LaboratoryThanks to your generous support, our Sycan Marsh Preserve in south-central Oregon has become a model for collaboration and a living laboratory for studying forest ecology and restoration strategies. In 2018, we convened 80 researchers and fire practitioners from 15 organizations on the preserve to study fire behavior, gain certifications and implement controlled burns. With the need for forest restoration becoming increasingly urgent across the West, sharing knowledge has never been more important.

DID YOU KNOW? Blind Slough Preserve is the largest intact example of a tidally influenced Sitka spruce and cedar swamp in Oregon. This type of plant community used to cover the Lower Columbia River, but only 3 percent of it now remains.

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“The Nature Conservancy lent a lot of legitimacy to our land trust when we were starting out,” said Katie Voelke, Executive Director of North Coast Land Conservancy (NCLC). “The ‘street cred’ we got from partnering with TNC went a long way toward helping us grow to where we are today, protecting over 5,000 acres of the Oregon coast from Lincoln City to the Columbia River.”

BONUS! Take a real-time peek inside a sage-grouse lek from March through May and watch these iconic birds perform their mating dance: nature.org/sage-grouse

“Blind Slough is diverse, complex and very special,” said NCLC Stewardship Director Melissa Reich (right). Reich organized work parties at Blind Slough Swamp from 2009 to 2012 as an AmeriCorps volunteer for The Nature Conservancy before joining the NCLC staff in 2013. “It’s unlike any other conserved land in the area at this scale.”

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ADDRESSINGClimate Change

THIS PAGE left to right Organizing plants for restoration in Tillamook County © Mitch Maxson/The Nature Conservancy; Controlled burn in the Rogue Basin © Evan Barrientos; Controlled burn in Kingston Preserve © Jason Houston

“Our work on Natural Climate Solutions combines TNC’s

traditional strengths in science, land protection and

ecosystem restoration together with our

ability to work across the aisle on pragmatic conservation solutions to tackle the defining

challenge of our times —climate change.”

—ryan haugodirector of conservation science,

TNC Oregon

Restoring the Rogue BasinHotter, drier summers are exacerbating the threat of wildfire in Oregon. Working closely with partners, we developed the Rogue Basin Cohesive Forest Strategy, which, if fully implemented, would reduce overall wildfire risk in the Rogue Basin by 70 percent, improve habitats and support a predictable supply of ecosystem services in the Rogue Basin. Using strategic thinning and controlled burning on 1 million acres in the basin, the strategy works for all interests: it would generate 1,700 jobs, $65 million in local wages, and $260 million for the local economy while helping our forests adapt to a changing climate.

Pathways for Nature-Based Climate Solutions Nature is an essential part of our solutions toolkit for addressing climate change. Conservancy scientists are leading efforts to develop nature-based climate solutions that help ecosystems both adapt to and directly mitigate climate change. In Oregon, that could mean reforestation to help the land store more carbon, restoring estuaries for the same purpose and adjusting forest management to build and protect carbon stocks. We just launched a new partnership with researchers at Portland State University to build a stronger scientific basis for expanding this critical work.

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THIS PAGE left to right A western pond turtle at Willamette Confluence Preserve © Brady Holden; Walt Mintkeski sits on the roof of TNC headquarters in Oregon. © Jen Newlin

THANK YOU! 130 volunteers provided more

than 2,100 hours of volunteer

support for the Willamette Confluence Restoration

Project.

“The cheapest kilowatt is the one you don’t use,” says “Walt Mintkeski, TNC Oregon’s volunteer energy manager.

“We are always looking for ways to reduce our collective carbon footprint, whether it’s by reducing energy draw at our offices, phasing out natural gas, reducing vehicle miles or making sure vehicles are efficient. This year, we reused solar panels from the Portland office at Zumwalt Prairie to reduce reliance on propane and incorporated sustainable and energy-efficient design into plans for the Oregon Conservation Center.”

DID YOU KNOW? Scientists have discovered that tidal wetlands remove and store up to 10 times more soil carbon per acre than forests.

“Restoring tidal wetlands can help mitigate climate

change while improving habitat

for fish and wildlife—making restoration an important part

of the climate change solution.”

—laura brophyDirector, Estuary Technical Group,

Institute for Applied Ecology

Reconnecting the WillametteClimate change is increasing the risk of flooding in our rivers and streams, putting people, homes and communities at risk—and making floodplain restoration more important than ever. Our work to reconnect the Willamette River to its historic floodplain in Eugene-Springfield has resulted in six miles of riverfront restoration. We planted 500,000 native trees and shrubs and recreated habitat for western pond turtles, juvenile salmon, migratory birds and more. In the event of flooding, the interconnected pools and ponds will slow and absorb floodwaters, protecting the surrounding community. Due to our staff’s innovative approach, this decade-long project was honored with the 2018 Stream Project Award by the Oregon State Land Board.

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Habitat for Salmon This year, your support enabled us to restore critical habitat for juvenile salmon at Winter Lake, an agricultural area in the Coquille River Valley that has struggled to balance salmon’s need for wetlands with cattle’s need for pasture land. Working hand-in-hand with ranchers and the Coquille Indian Tribe, we restored tidal wetlands that offer salmon the space they need to grow and helped partners replace failing tide gates with a more sustainable design that allows ranchers to better control the flow of water. The result is a win-win: juvenile salmon can more easily access these nurseries to grow and prepare for their time at sea, while ranchers can extend their grazing season.

THIS PAGE left to right Cattle at Winter Lake; Aerial view of Winter Lake © Brady Holden

ENSURINGSustainable Food and Water

CONNECT WITH US! Follow us on Facebook Facebook.com/NatureConservancyOR

DID YOU KNOW? Tide gates block tidally influenced river water from flooding the surrounding land. There are an estimated 3,000 tide gates in Oregon, many of which are antiquated and failing, blocking fish from accessing critical habitat.

Many species in addition to salmon utilize flooded pasturelands in the Coquille River Valley for feeding and resting, including migratory waterfowl, raptors, beavers, and the Pacific lamprey, a culturally important species to native peoples.

When they have access to slow-moving waters in wetlands, juvenile salmon can thrive and reach the ocean at twice the size, which dramatically increases their survival rate.

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THIS PAGE clockwise from top left Malheur National Wildlife Refuge © Joan Amero; Oregon coast fisherman © Mitch Maxson/The Nature Conservancy; Juvenile Coho salmon © 2008 Bridget Besaw

Groundwater for Harney County We all depend on groundwater—and in some areas, it’s in short supply. That’s why we’re working on sustainable solutions for water users in the Harney Basin that support the needs of ecosystems and farming livelihoods. We believe that the collaborative solutions we develop in the Harney Basin could be used as a model for other groundwater-dependent areas uelsewhere in Oregon and across the West.

A More Sustainable Catch Unwanted bycatch is a major issue for fisheries around the world, but the solution is relatively simple: use better fishing gear. In Oregon, we’re working directly with fisherman on the coast to design a fishing pot that will catch only lingcod and no other species. Several of the top options were recently fabricated and will be tested to determine which one is the most effective and efficient.

“There is so much to be learned by working directly with fishermen—they’re the ones who know species behavior and the oceans best. It’s exciting to work together to create lasting benefits for fisheries and fishermen.”

—Gway Kirchner, marine fisheries project director, TNC Oregon

Bringing Salmon Back With your support, we are working to bring salmon back to the Klamath Basin. Once the third most productive salmon producer on the Pacific Coast, the Klamath River has been blocked by a series of dams for the past 100 years, dramatically reducing fish numbers. With dam removal planned for 2021, we are working proactively to prepare for the unprecedented restoration efforts that will follow. In addition to collaborating with partners on restoration plans for 14,000 acres of wetland and stream habitat, we are leading the development of a watershed action plan that will improve conditions for fish and water quality in the Upper Klamath Basin.

DID YOU KNOW? Research suggests that dam removal and the associated restoration of the Klamath River and wetlands could result in an 81 percent increase in Chinook salmon.

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CONNECTINGPeople and Nature Kearstin Williams, our 2018 AmeriCorps Community Engagement Coordinator, planned events that reached communities of difference and focused on inclusive strategies to connect people and nature. Coordinating 450 volunteers and working with The Oregon Zoo, the Black Student Union and Environmental Justice Club at Portland Community College and other partners, she created deep, meaningful relationships that were strengthened through environmental education and stewardship. Her favorite experience? An outing to Cascade Head Preserve with a group of children from Portland who saw the ocean for the very first time.

“Connecting people to nature helps inspire new environmental stewards with different perspectives. Getting more people of color and from communities of difference involved in conservation not only fuels support but also change.”

—Kearstin Williams, AmeriCorps community engagement coordinator

CONNECT WITH US! Follow us on Instagram @nature_oregon

PEOPLE AND NATURE ON THE PRAIRIE In addition to work parties and hikes, we hosted an elk shed antler hunt for local families on Zumwalt Prairie Preserve this year—and enjoyed a full day of nature discovery. After auctioning off the 1,035.5 pounds of antlers that local kids collected, we raised $11,866 for two nonprofit organizations in Wallowa County. That’s what we call creative reuse!

THIS PAGE left to right Kearstin Williams (in TNC shirt) with volunteers © Tim Jewett; Children collect antlers on Zumwalt Prairie Preserve © Chad Dotson

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TABLE ROCKS UNPLUGGED! For the past 32 years, we’ve hosted a variety of themed public hikes on Table Rocks Preserve in the hopes of connecting with new audiences. Our 2018 Table Rocks Spring Weekend Hike Series ended on a high note with 25 ukulele players jamming in the sunshine on top of Lower Table Rock. Experienced and new players strummed and sang to soaring turkey vultures, wildflowers and the Rogue River below.

ON THE RIVER Our Willamette Confluence Preserve may not be open to the public just yet, but we’ve made sure people are enjoying it. In 2018, we offered nine public hikes, including one tour for community members with limited mobility. We also welcomed birders to the preserve by hosting two spring bird walks led by volunteer naturalists.

GOOD NEWS FOR SEA STARSWith the help of volunteers, we’ve been keeping an eye on sea stars along the coast after a mysterious wasting disease decimated the population several years ago. The Oregon Zoo joined us in July and we counted over 400 sea stars in two hours—and almost all were healthy. Three cheers for community science!

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THIS PAGE clockwise from top left Monitoring sea stars at Cascade Head Marine Reserve © Mitch Maxson/The Nature Conservancy; Playing at Willamette Confluence Preserve © Matt Benotsch/The Nature Conservancy; Playing the ukelele at Lower Table Rock © Molly Morison

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BUILDINGHealthy Communities

THIS PAGE left to right Volunteers mulching at Powel Butte © Joshua Chang; Wildfire in Oregon © Angela Bohlke/The Nature Conservancy Global Photo Contest 2018

Planting Trees in PortlandThanks to a generous grant from The Boeing Company, we’re partnering with local nonprofit organization Friends of Trees to plant $500,000 worth of trees over the next two years in and around the Portland metro area. This green investment in urban nature will enhance the tree canopy, creating well-documented benefits for the community. In addition to reducing stormwater pollution, filtering air pollution and cooling urban heat islands, trees positively impact mental health and reduce stress, laying the foundation for happier, healthier people.

DID YOU KNOW? Trees absorb carbon dioxide from vehicle emissions, mitigating climate change.

Urban tree canopy improves neighborhood air quality and reduces heart attacks, strokes and asthma.

Tree shade reduces the need for air conditioning, which reduces fossil fuel consumption.

Wildfire Funding Fix In 2018, Congress enacted the Wildfire Funding Fix, thanks to a five-year legislative and grassroots advocacy campaign conceived and spearheaded by The Nature Conservancy. This bill represents a monumental shift in how wildfires will be paid for by the U.S. Forest Service and the U.S. Department of the Interior, freeing up much-needed funds for forest restoration on public lands. Thanks to your support, Nav Dyanand, our Director of Federal Government Relations, was able to help get the job done.

“Oregon’s forests and communities will greatly benefit from the Wildfire Funding Fix, made possible by advocates at The Nature Conservancy working with a bipartisan set of congressional leaders that recognized the urgency of the issue.”

—tom imeson, former TNC

Oregon trustee

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“We volunteer because we feel strongly that it is the most meaningful thing we can do to help our environment and culture. We chose The Nature Conservancy because of its science-based, proactive, and historic role in restoring, protecting and preserving our cherished natural environment.”

—melissa geiger and johnnie grgurich

THIS PAGE clockwise from top right Oregon blue sky and water © Maralee Park/The Nature Conservancy Global Photo Contest 2018; Mount Tabor Volunteer Restoration Day © Joshua Chang; John Helmer © John Helmer; Melissa Geiger and Johnnie Grgurich © Johnnie Grgurich and Melissa Geiger; background ©iStock Photo

VOLUNTEERING IN 2018

More than 900 volunteers contributed over 22,000 hours of time to advance conservation in Oregon.

50 volunteer naturalists shared their time and knowledge with more than 10,000 visitors at three TNC preserves.

650 volunteers participated in over 30 volunteer restoration events statewide.

Volunteers helped on 49 controlled burns across 3,876 acres.

VOLUNTEERS OF THE YEAR Johnnie and Melissa

Conservation is about innovation, and this year we honor Melissa Geiger and Johnnie Grgurich for their commitment to ingenuity at Zumwalt Prairie Preserve. The couple from Arizona have served as volunteer summer caretakers at the prairie since 2013, maintaining facilities and trails, hosting visitors, working with science and monitoring crews

and controlling noxious weeds. They went above and beyond in 2018, using their engineering mindsets to help keep elk out of sensitive areas by redesigning and rebuilding damaged fencing. Thank you, Johnnie and Melissa—you have become an integral part of conservation at Zumwalt Prairie Preserve.

John HelmerThere are few things more valuable than a passionate volunteer, and for that, we honor John Helmer. John has been volunteering with our Willamette Confluence project every step of the way, joining us in 2011 soon after we acquired the property. He has served as our eyes and ears at the Confluence, patrolling

boundaries, fixing fences, picking up trash, installing signage and serving as a liaison between The Nature Conservancy and neighbors and community members. What’s more, John launched and managed a successful tour program. Thank you, John—your work has improved the property in so many ways. We don’t know what we’d do without you!

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WHY WE GIVELinda Nelson

“My awareness of The Nature Conservancy began with a magazine on my parents’ coffee table,” says Linda Nelson. “My mom and dad were nature lovers and scientists and they always stressed the need to care for nature.”

Recently, Linda’s financial advisor suggested that she write an “ethical will,” or a statement detailing her values and what she’d want her legacy to be. “That assignment

really helped me realize that I want to contribute to nature as well as education and community inequities,” she says. “The Nature Conservancy is a natural fit.”

As a Legacy Club Member for over 20 years, Linda has gained a deep understanding of TNC’s mission. When she heard about the new Oregon Conservation Center, she felt compelled to support it. “I value TNC’s collaborative approach; the Conservation Center will be a place for collaboration and education,” she says. “A place like that will connect the community and bring people together in the name of conservation.”

Jon Levy and Janie ThomasActive outdoor lovers and avid travelers, Jon Levy and Janie Thomas had planned to build their dream home on spectacular property they owned near Arches National Park in Utah. But as years passed, they began to value the freedom to travel more and were less interested in owning property and material possessions.

Selling the land had financial disadvantages for the couple, however—including a hefty capital gains tax. On a TNC field trip to Juniper Hills Preserve last spring,

Jon mentioned the dilemma and a lightbulb went off: they could donate the property to TNC and fund a Charitable Remainder Trust. Not only would they avoid paying capital gains on the sale of the property, but they’d enjoy a significant immediate income tax deduction and a stream of income—all while helping to conserve the lands and waters of their beloved Oregon.

“People like us—of a certain age—have extra things like second homes or property and may be looking to simplify and decrease their ’stuff,’” says Jon. “Donating made sense financially and it feels good to know we’re doing something important. It was a win-win.”

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OPPOSITE PAGE left to right TNC supporter Linda Nelson loves to get outside © Linda Nelson; Jon Levy and Janie Thomas are avid travelers and supporters of TNC © Jon Levy and Janie Thomas; background Hike along the main trail on Lower Table Rock at sunset © Ben Herndon/Tandem Stills+Motion

WE CARRY OUT OUR WORK WITH A DEEP COMMITMENT TO ACCOUNTABILITY AND TRANSPARENCY. As a leading global charity, we hold ourselves accountable to our members, the public and all creatures that have a stake in the preservation of the world’s natural resources. We seek to make use of every dollar donated to The Nature Conservancy with careful attention to effectiveness and efficiency.

We are able to accomplish so much because we make careful use of our resources, with 82% of our funding going directly to our science-driven conservation work. Charity Navigator and the Better Business Bureau applaud program efficiencies above 66%, so you can be confident that any investment in the Conservancy will be put to good use.

Programmatic Efficiency

Revenue

Conservation81.6%

Contributions45.3%

General andAdministrative7.5%

Investment17.2%

Marketing and Engagement2.8%

Grants and Contracts 31.0%

Assets On June 30, 2018 On June 30, 2017Cash and Investments $10,870,364 $14,136,255Endowment Funds $36,868,785 $35,022,899Conservation Lands $54,329,657 $51,208,104Other Assets $5,047,160 $9,343,492Total Assets $107,115,966 $109,710,750 Liabilities $2,609,741 $5,637,802Net Assets $104,506,225 $104,072,948

(July 1, 2017–June 30, 2018)

Fundraising and Membership8.1%

Other Income6.5%

FY 2018 Total Expenses

$17,802,913

FY 2018Total Revenue

$18,236,192

OUR FINANCIALS

THE NATURE CONSERVANCY IN OREGON STATEMENT OF FINANCIAL POSITION

NATURE THANKS YOU

The Nature Conservancyin Oregon821 SE 14th AvenuePortland, OR 97214nature.org/oregon

(503) 802-8100oregon@tnc.org

Like us at facebook.com/NatureConservancyOR Tweet us at @nature_oregonFollow us at @nature_oregon

THIS PAGE Harlequin duck © Steve Dimock/The Nature Conservancy Global Photo Contest 2018