C O M M U N I T Y

MATTERSFoundation Receives $6 Million Gift from

the Estate of Charles H. Babcock, Jr.

THE WINSTON-SALEM FOUNDATION C o m m u n i t y N e w s l e t t e r | Fe b r u a r y 2 0 0 7

THE MARY REYNOLDS BABCOCK FOUNDATIONannounced in October that approximately $24 million from

the estate of Charles H. Babcock, Jr. will go to three commu-

nity organizations that match his life-long interests. They are

The Winston-Salem Foundation, Reynolda House Museum of

American Art, and the Mary Reynolds Babcock Foundation.

“This distribution of Charles’ estate reflects his life-long

interests in his family home at Reynolda House, his communi-

ty through The Winston-Salem Foundation, and the family

foundation, the Mary Reynolds Babcock Foundation,” said

Gayle Williams, executive director of the Babcock Foundation.

The Babcock Foundation’s mission is to address the root causes

of poverty and help move people and places out of poverty

across the Southeastern United States. Approximately $12

million will be added to the Babcock Foundation.

Two endowment funds totaling $6 million were estab-

lished at The Winston-Salem Foundation. One is an unre-

stricted fund which will be used to support general changing

needs of the community. The second is a field of interest fund

which will support arts and culture in the community. The arts

were a passion of Mr. Babcock’s and his charitable legacy

reflects this.

“We knew that by creating an unrestricted fund and a

field of interest fund at The Winston-Salem Foundation,

Charles’ interests would be supported,” noted Ms. Williams.

These funds give The Winston-Salem Foundation the oppor-

tunity to respond to changing community needs that ultimate-

ly impact the lives of everyone in our community. We trust the

community foundation to be a good steward of these funds

long into the future.”

“This extremely generous bequest will create two endow-

ments that will allow our board to respond to the community

not only next year, but into the future,” said Scott Wierman,

president of The Winston-Salem Foundation. “We know that

there will be interest from nonprofits that want to access these

funds. Nonprofits can access Foundation grant funding

through our regular competitive grant process which can be

found on the Foundation’s website at www.wsfoundation.org.”

FOUNDATION LAUNCHING E-NEWSLETTER

BE SURE YOU ARE INCLUDED IN THE

FOUNDATION’S NEW E-NEWSLETTER

MAILING LIST. WE WILL BE SENDING OUT

IMPORTANT UPDATES FOR THE COMMUNITY,

FOUNDATION HAPPENINGS, AND LEGISLA-

TION AND EVENTS THAT COULD IMPACT

YOUR CHARITABLE GIVING.

CALL US AT 336-725-2382 OR GO ONLINE

TO SIGN-UP FOR THIS NEW SERVICE AT

WWW.WSFOUNDATION.ORG.

STARTING NOVEMBER 1 the Foundation began using a

new application process for proposals for competitive grants. The

Foundation has adjusted its process in an effort to be more acces-

sible to the nonprofit community and to streamline the amount

of time nonprofits invest in their grant applications.

Nonprofits may submit a Preliminary Application on the

first of any month. The Preliminary Application includes general

information about the applying organization and proposed grant.

Nonprofits will be notified within 30 days as to whether or not

their Preliminary Application qualifies them to submit a full

application.

To learn more about how to apply for a competitive grant

from the Foundation, go to www.wsfoundation.org and click on

“grant seekers.”

NEW GRANT APPLICATION PROCESS FOR NONPROFITS

SANDRA FISHEL-BOOTH joined The

Winston-Salem Foundation as a program

officer on November 27. In her position as

program officer, she will become familiar

with issues relevant to the local nonprofit

community and review grant proposals to

be considered by The Winston-Salem

Foundation Committee. She will keep informed on communi-

ty issues and organizations by attending meetings, consulting

with prospective grantees and assisting nonprofit organizations

in their interactions with The Winston-Salem Foundation.

Fishel-Booth most recently served as program manager for

the National Urban League in New York City where she gained

extensive experience in grants management, community and

economic development, and organizational strategic planning.

She also worked with the Neighborhood Development

Corporation as business development coordinator.

Fishel-Booth holds a Bachelor of Arts in English from

Syracuse University and a Masters degree in Urban Policy

Analysis and Management from The New School in

Manhattan. She, her husband, and two children recently

relocated to Advance, NC.

Foundation WelcomesNew Program Officer

SEEKING NOMINATIONS

THE WINSTON-SALEM FOUNDATION AWARD

THE WINSTON-SALEM FOUNDATION AWARD IS THE

FOUNDATION’S HIGHEST HONOR GIVEN TO THOSE WHO HAVE

DEMONSTRATED VISIONARY LEADERSHIP AS THEY HAVE

WORKED TO IMPROVE THE QUALITY OF LIFE FOR ALL INDIVIDU-

ALS IN OUR GREATER COMMUNITY. THE AWARD COMES WITH

A $10,000 GRANT TO A NONPROFIT SELECTED BY THE WINNER.

DEADLINE: FEBRUARY 13, 2007

TO LEARN MORE OR TO MAKE A NOMINATION, GO TO

WWW.WSFOUNDATION.ORG

ECHO AWARDS

THE WINSTON-SALEM FOUNDATION AND THE ECHO COUNCIL ARE

ACCEPTING NOMINATIONS FOR THE 2007 ECHO AWARDS. THESE

AWARDS HONOR PEOPLE AND INFORMAL GROUPS WHO ARE

BUILDING SOCIAL CAPITAL. WE HOPE TO RECOGNIZE THOSE

PEOPLE WHO PERSONIFY THE ECHO LOGO OF BUILDING A

STRONGER COMMUNITY BY BUILDING CONNECTIONS AMONG

PEOPLE.

DEADLINE: MARCH 16, 2007

TO LEARN MORE OR TO SUBMIT A NOMINATION, GO TO

WWW.WSFOUNDATION.ORG

NOW ACCEPTING STUDENT AID APPLICATIONS

THE FOUNDATION IS NOW ACCEPTING NEED-BASED GRANT, SCHOLARSHIP AND LOAN APPLICATIONS FOR COLLEGE STUDENTS FOR THE

2007/2008 ACADEMIC YEAR. FOR MORE INFORMATION ON DEADLINES, PROCESSES, AND APPLICATIONS, PLEASE GO TO

WWW.WSFOUNDATION.ORG AND CLICK ON “STUDENTS”

C O M M U N I T Y M AT T E R S [ 2 – 3 ]

PEOPLE GOING TO THE MOVIES in the 1920s had to

wait during each show while a projectionist changed film reels

by hand. In Portsmouth, Virginia, audiences enjoyed a sepa-

rate performance during this technical intermission thanks to

the accomplished musical talent of a confident child who

would take the stage and play his violin for a few minutes.

This child was Milton Goldberg.

Born in New Jersey, growing up in Virginia and finally mov-

ing to North Carolina in 1938, Milton brought with him to

Winston-Salem his wife, Vera, and a

well-developed love of the arts. Jobs

were scarce as the Depression was taking

its toll on the country, but Milton

found work as a smelter for Douglas

Battery and eventually started his own

metal alloy company. Always an advo-

cate of spirited entertainment — not to

mention an enthusiastic performer him-

self — Milton later confirmed his com-

mitment to the arts by giving his busi-

ness property to the North Carolina

School of the Arts to be used as a prop-

shop and costume storage building.

But this wasn’t Milton and Vera

Goldberg’s only generous contribution

to the landscape of Winston-Salem. In fact, one successful out-

come of their philanthropic natures would materialize after their

deaths, coming as a $10,000 grant to the Cinema Society

through the unrestricted endowment of the Vera Goldberg

Memorial Fund. This creative gift to the community, made possi-

ble by the Goldberg’s willingness to trust The Winston-Salem

Foundation with an unrestricted financial donation, affords peo-

ple in Winston-Salem an opportunity to enjoy unique and social-

ly provocative films. Many of the films are shown in the magnifi-

cent Stevens Center, where the Cinema Society — in collabora-

tion with the North Carolina School of the Arts School of

Filmmaking — holds its Films on Fourth series. Ask 81-year-old

Lorraine Shearer, a local citizen who depends on the Cinema

Society for artistic suste-

nance, about the emo-

tional impact of these

cinematic offerings and

her face lights up: “After

seeing some of these

films, it makes me want

to become a pioneer of

reform!”

All this is thanks to

the enriching possibili-

ties of unrestricted giv-

ing and the generous,

socially-responsible spir-

its of Vera and Milton

Goldberg, whose posi-

tive impact on the community came in the form of a city project

they couldn’t even imagine but which is poignantly consistent

with their creative, open-hearted lives.

The Power of Unrestricted Giving

MILTON AND VERA GOLDBERG’S UNRESTRICTED FUND ENABLES

THE FOUNDATION TO MEET CHANGING COMMUNITY NEEDS

THROUGH COMPETITIVE GRANTS TO NONPROFITS.

“After seeing some of these films,it makes me want to become a pioneer of reform!”

— LORRAINE SHEARER

THE WINSTON-SALEM FOUNDATION and Womble

Carlyle Sandridge & Rice, PLLC, sponsored an informational

program for charitable organizations on the new opportunities

and new rules for charitable giving contained in the Pension

Protection Act of 2006 (the “Act”).

The best new opportunity allows a donor who is age

70-1/2 or older to make a direct distribution from an

Individual Retirement Account (IRA) to a charitable organiza-

tion. Such a gift can be made to any public charity, including

the Foundation. Gifts to the Foundation can be made to the

Community Fund, the Women’s Fund, scholarship funds and

many other funds. The new IRS rules do not permit a direct

distribution to a donor advised fund, but a donor can make a

restricted gift from an IRA for a particular purpose as long as

the donor does not retain the right to give advice. Such a direct

gift of up to $100,000 in 2007 can be counted as part of the

required minimum distribution from the IRA.

The Act defines a donor advised fund to be a fund (i)

identified by the contributions of a donor or donors, (ii) owned

by a public charity and (iii) with respect to which the donor

expects to have advisory privileges for distributions or invest-

ments. The new rules provide that donors, donor advisors and

family members may not receive any benefit from grants made

from a donor advised fund

Under the new IRS rules, the Foundation may not make

donor advised grants that give the donor/advisor benefits in any

form. Thus, requests such as the following can not be paid from

a donor advised fund.

> Athletic booster clubs when a gift entitles the donor to

purchase tickets at a special rate, time, or location

> Alumni Associations when donors are entitled to sport-

ing events, performances, parking, etc.

> Special events or named society memberships when a gift

entitles the donor or their guests to attend the event or receive

benefits of value in return

> Pledges to fulfill personal commitments

Previously, donors have been allowed to cover the benefit

portion of the gifts of the type listed above with a personal

check while the charitable portion was paid from a donor

advised fund. However, this is no longer allowed, because the

IRS interprets the use of the charitable dollars in permitting the

donor’s participation as a benefit to the donor. Under the new

rules, grants may still be recommended to charitable organiza-

tions sponsoring fund raising events if all associated benefits are

declined. Or, a grant from a donor advised fund may be recom-

mended as a contribution with the donor purchasing a separate

ticket for the event. Such an option is available only if tickets

are offered separately from sponsorships. Failure to follow these

rules may result in penalties to the donor and to the

Foundation.

The Act is the result of increased scrutiny by Congress of

charitable giving practices in the nonprofit sector. Some oppor-

tunities are targeted to specific types of charitable gifts and some

of the rules are targeted to isolated abuses that have been report-

ed in the press. The Foundation has always maintained the high-

est standards of integrity, conduct, and ethics. However, as with

other charities across the country, the Foundation will adjust its

practices to comply with the new rules.

RANLET (RAN) S. BELL IS

A MEMBER OF THE TAX

SECTION AT WOMBLE

CARLYLE AND FOCUSES

HER WORK ON CHARITA-

BLE GIVING AND TAX

EXEMPT ORGANIZATIONS.

EDWARD W. GRIGGS IS A MEMBER OF THE TRUSTS & ESTATES

SECTION AT WOMBLE CARLYLE AND FOCUSES HIS WORK ON ESTATE

PLANNING, CHARITABLE GIVING AND TAX EXEMPT ORGANIZATIONS.

IF YOU HAVE SPECIFIC QUESTIONS ABOUT YOUR DONOR ADVISED

FUND, PLEASE CONTACT A MEMBER OF THE PHILANTHROPIC

SERVICES TEAM AT THE FOUNDATION.

CHARITABLE GIVING: NEW OPPORTUNITIES AND NEW RULES

C O M M U N I T Y M AT T E R S [ 4 – 5 ]

Families that Give Together: Realizing the Benefits of Family Philanthropy

TRACY GARY, author of Inspired Philanthropy, is no stranger

to the challenges and rewards of raising charitable kids. When

Gary was old enough to earn an allowance, her parents gave

her 25 cents a week in the form of five nickels — three to

spend, save, and invest, respectively; one to lend; and one to

give away. By emphasizing charity early, says Gary, her parents

instilled her with a love of philanthropy.

It stuck with her: Gary went on to launch seventeen non-

profits, including the Women’s Foundation of San Francisco,

the oldest and largest philanthropic fund for women in the

Western United States. A preeminent donor activist and phil-

anthropic adviser, she has dedicated her life to helping families

embrace charitable giving as a way of life. Gary’s message: fam-

ilies who give together can magnify, exponentially, the diverse

benefits of philanthropy.

PASSING VALUES TO THE NEXT GENERATIONMost Americans recognize the value of family giving.

According to the 2000 Cone/Roper Raising Charitable

Children Survey, 85 percent of the respondents said they

believe children should be introduced to philanthropy — and

that parents play a key role in getting kids involved. Fully 96

percent agreed that parents’ charitable giving and volunteer

activities are good ways to teach children about helping others.

Family philanthropy provides a focal point for parents to

transmit their values. By engaging several generations, children

have an opportunity to learn from an early age that giving

back to their communities is an important endeavor. Giving

also offers the opportunity to create a family legacy, ensuring

that important values extend beyond parents’ lifetimes.

Gary advises families to begin their charitable giving pro-

grams with the creation of a mission statement and a discus-

sion of family values. She recommends that every member of

the family participate by listing the issues they hold dear, such

as peace, compassion, or equality, and specific areas of interest,

such as humanitarian aid, soup kitchens, or civil rights. Areas

of focus for family philanthropy often emerge from discussions

about the values that family members share, or the values that

decision leaders such as parents or grandparents may hold in

special favor.

ENGAGING KIDS IN GIVING Family philanthropy can be conducted in a variety of ways,

leveraging many types of charitable vehicles. The popular alter-

natives include family foundations, donor-advised funds, and

family giving circles in which members make a collective deci-

sion on how to direct charitable dollars. “It’s rare that you’ll

find a family that only gives through a single foundation,” says

Deborah Brody Hamilton, director of the National Center for

Family Philanthropy. “If they have one, it’s usually a sign that

they’re giving in all sorts of ways.”

Tracy Gary cites the example of one family that gives away

$250,000 annually. The parents make gifts of $100,000 to

CONTINUES ON BACK PAGE

AN ESTIMATED $3.6 TRILLION is currently invested

in IRAs, and the total continues to grow. For the first time,

IRA owners can give a portion of their retirement savings directly

to charity without first counting it as income and paying

income tax.

For larger estates, a good portion of IRA wealth goes to

estate and income taxes of beneficiaries. Experts estimate heirs

will receive less than 25% of most IRA assets that pass through

estates.

In 2006 and 2007, holders of traditional and Roth IRAs

who are at least 70-1/2 years old can make direct charitable trans-

fers of up to $100,000 per year per taxpayer. As a qualified public

charity, The Winston-Salem Foundation can help you execute

the transfers to an existing fund or to create a new one. Unfortu-

nately, the law does not allow charitable rollovers to Donor-

Advised Funds. You may choose to establish or contribute to an

Unrestricted, Field of Interest, Designated or Scholarship fund.

This is the opportunity of a lifetime to make the gift of a

lifetime. Learn more at www.wsfoundation.org or have your

advisor call us at (336) 725-2382.

NEW GIVING OPPORTUNITY: THE IRA CHARITABLE ROLLOVER

THE FOUNDATION HOSTED ITS ANNUAL Legacy

Society Dinner on October 4, 2006 at SciWorks. The Legacy

Society is comprised of people who have already made gifts

of $10,000 or more to endowed funds at the Foundation,

and people who have included gifts to endowed funds at the

Foundation in their wills or estate plans.

“We see this as an opportunity to thank community

members for investing in the Foundation, and in the commu-

nity’s future,” noted Annette Lynch the Foundation’s vice presi-

dent of philanthropic services. “For the last few years, our

Legacy Society members have

heard stories directly from people

who have benefited from compet-

itive grants from endowed funds.”

This year, a family whose son

attends Applied Behavioral

Analysis Center shared their

touching story. The center

received a grant from the

Foundation which enabled them

to provide a fulltime psychologist

position to better serve their stu-

dents. Two women who partici-

pate in the “El Nido” program of

YMCA Community Outreach

Services shared how learning to

speak English has helped them

connect with their children’s schools and be engaged in their

children’s education. “El Nido” received a grant for staff and

materials to teach ESL and literacy classes to parents and chil-

dren. Finally, a student shared how receiving a scholarship

from the Foundation has enabled him to pursue his college

education at Wake Forest University.

If you are interested in learning more or becoming a part

of the Legacy Society, please contact Annette Lynch at (336)

725-2382 or e-mail giving@wsfoundation.org.

Dinner Brings Together Current and Future Donors

ABOVE: SKIP AND MELINDA BROWN,

CHANDRA AND NAT IRVIN

RIGHT: SKIP WANDERS, LINA WANDERS,

FRANK DRISCOLL, CARMEN ROSSITCH,

GENE ROSSITCH

THE FOUNDATION IS grateful to those donor advisors who

have become Grantmaking Partners by funding portions of or

entire grants made by the Foundation through the competitive

grants process. Because these individuals chose to partner with the

Foundation, an additional $98,600 was awarded in grants to local

nonprofits.

We, along with a grateful nonprofit community, thank the

following 2006 Grantmaking Partners for their commitment to

expanding the Foundation’s grantmaking capacity:

> Elwood & Helen Clinard > Deborah Marshall

> Jane Craven > Mr. & Mrs. Lucian H. Neal

> Louis & Marcia Gottlieb > John & Marguerite Taylor

> Charlie Hemrick > Karl Yena

> Eugene Heise > Anonymous

If you would like to learn more about how you can partner

with the Foundation in its competitive grantmaking, please

contact Keri Muuss at kmuuss@wsfoundation.org

or (336) 725-2382.

DONOR ADVISORS PARTNER WITH THE WINSTON-SALEM FOUNDATION TO MAKE COMPETITIVE GRANTS

C O M M U N I T Y M AT T E R S [ 6 – 7 ]

IN LATE 2005 the Foundation creat-

ed a strategic plan to lead us to 2012.

We are excited about our plan and

where it will lead us and the communi-

ty in the coming years. Our plan brings

us to a place where we will be able to

serve our community at a higher level.

We hope to grow the Foundation’s assets to $400 million,

maintaining the Foundation’s place as one of the 40 largest

community foundations in the country. We want to be able to

increase our capacity to make competitive grants to the non-

profit community to $6 million annually.

We also intend to grow our community leadership capacity,

not only in the social capital arena, but other areas of concern

for the greater community.

We have been taking steps towards making these goals a

reality:

> The Foundation hired an executive vice president in

2006 to help lead the internal functions of the Foundation.

> The Foundation underwent an organizational assess-

ment which has resulted in the restructuring of our internal

teams. Three teams that regularly interact with the community

have changed their names. As of January 2007, our donor serv-

ices team became the philanthropic services department. Both

development and donor services functions will be housed in

this department. The grants team and student aid team joined

to become the community investment department.

> We are continually working towards growing the

Foundation’s assets and providing the tools that community

members need to help fulfill their charitable intentions. In

2006 the Foundation created a development officer position

who is working to cultivate new donors and develop profes-

sional advisors’ understanding of the services the Foundation

can offer their clients.

We are excited about the opportunities that are ahead of

us and look forward to working with you to help make our

community a better place for everyone.

— SCOTT WIERMAN, PRESIDENT

MOVING TOWARDS OUR GOALS

message from the president

MEMBERS OF THE EXECUTIVE COMMITTEE of the

Women’s Fund of Winston-Salem hoped to have 100 members

when they launched their initiative on November 15 at their

first annual meeting. Those expectations were far exceeded

when they reached 217 members.

“We are overjoyed and overwhelmed by the outpouring of

interest from women in our community,” noted fund chair Janie

Wilson. “It’s clear that women in our community are passionate

about helping other women. We hope to enable their passion to

grow by creating a giving vehicle that connects financial resources,

and enables women to build relationships in the process.”

The Women’s Fund will now begin the process of con-

necting its members to subcommittees, planning its first grant

cycle, and holding educational events for women in the com-

munity. To learn more about the Women’s Fund, visit

www.wsfoundation.org/womensfund or call (336) 725-2382

and speak with Keri Muuss.

WOMEN’S FUND OF WINSTON-SALEM LAUNCHES WITH 217 MEMBERS

FRONT ROW (L TO R) EVELYN TERRY, JANIE WILSON, MARTHA

LOGEMANN, LYNN EISENBERG, CHEVARA ORRIN; SECOND ROW

(L TO R) KERI MUUSS (WSF STAFF), MARY JAMIS, MARGARET

SCALES, SARAH HOLTHOUSER, MICHELLE COOK; DAISY

RODRIGUEZ (NOT PICTURED)

8 6 0 W e s t F i f t h S t r e e t

W i n s t o n - S a l e m , N C 2 7 1 0 1 - 2 5 0 6

Te l e p h o n e 3 3 6 - 7 2 5 - 2 3 8 2

To l l Fr e e 8 6 6 - 2 2 7 - 1 2 0 9

Fa x 3 3 6 - 7 2 7 - 0 5 8 1

w w w . w s f o u n d a t i o n . o r g

Non-Profit Org.

U.S. Postage

PAIDWinston-Salem, NC

Permit No. 406

FAMILY PHILANTHROPY, CONTINUED FROM PAGE 5

support causes that are important to them. Their two adult

children each receive $50,000 to support their own interests

through separate vehicles. The family collectively decides where

to grant the remaining $50,000.

There are many ways to involve younger family members

in philanthropy. Just as Gary received 25 cents to give away,

children can be given small sums of money and guided in

choosing how to donate it. Young children can also be encour-

aged to make donations of clothes, shoes, and toys, and travel

with their parents to deposit the items at a shelter. In addition,

school-age children can be encouraged to volunteer their time.

Teenagers, meanwhile, can be tasked with researching

nonprofits, either as potential grantees or as a place to volun-

teer their time. Some parents give their children an allowance

based on their volunteer hours.

USING OUTSIDE RESOURCES As the amount of charitable gifts and family size increases,

families may find it helpful to establish an advisory committee

— either formally or informally, depending on the giving vehi-

cle they employ — and decide by vote how and when to make

charitable gifts. In some cases, advisors such as lawyers,

accountants, and nonprofit specialists may participate as board

members and help guide philanthropic decision-making. These

third-party experts can provide a wealth of guidance, and keep

the peace when families disagree on giving priorities. “An out-

side facilitator can help a family decide on a mission and keep

it focused on an area where they will be most effective,” says

Gary. Community foundations, she notes, can offer expertise

on local nonprofits, where many family giving programs are

centered. Families can also benefit from the experience of their

peers. “They can speak with other families that have worked

through these issues,” says Deborah Brody Hamilton.

Family philanthropy is a rewarding way to bring change to

communities. With some careful planning, it can also tighten

family bonds, transmit family values to future generations, and

create a lasting family legacy.

— BY COLLETTE PARKER, A FREELANCE WRITER BASED IN

ATLANTA, COPYRIGHT 2003, USED WITH PERMISSION