Foundation Annual Reports

LILLY ENDOWMENT

2801 North Meridian Street
P.O. Box 88068
Indianapolis, Ind. 46208
(317) 924-5471
http://www.lillyendowment.org

Period covered: Year ending December 31, 2004.

Purpose and areas of support: This foundation was created in 1937 by J.K. Lilly Sr. and his sons Eli and J.K. Jr. and endowed through stock in the family’s pharmaceutical business, Eli Lilly and Company. The endowment’s financial portfolio continues to consist primarily of Lilly stock; however, the endowment is wholly separate from the company, with a distinct board, staff, and location.

In keeping with the wishes of the three founders, the endowment allocates grants through three program divisions: community development, education, and religion. It places special emphasis on projects that benefit young people and promote leadership education and financial self-sufficiency at nonprofit organizations.

In 2004 the endowment approved grants totaling $396.9-million to 638 grantees, compared to $315.3-million to 640 grantees in 2003. The education division continued to receive the most money — $207.5-million, or 52 percent of total dollars awarded — followed by the religion division, which received $113.4-million, or 29 percent, and the community-development division, which received $76-million, or 19 percent.

As in previous years, the lion’s share of new grant dollars went to nonprofit organizations in Indiana, with groups in Indianapolis and surrounding Marion County receiving grants totaling $49.7-million, and groups elsewhere in the state receiving $205.5-million.

The education division revolves primarily around efforts to improve education in Indiana, with special emphasis on higher education and on programs designed to increase the number of Indiana residents who hold bachelor’s degrees. The endowment maintains several invitational grant programs for Indiana colleges and universities, and also supports programs intended to expand access to higher education for blacks, American Indians, and Hispanic-Americans.

The main goal of the religion division is “to deepen and enrich the religious lives of American Christians,” including through efforts to attract and retain young people in the ministry and to provide sabbatical and other programs for current pastors. Allocations included $1,101,092 to the University of North Carolina at Chapel Hill for the second phase of a national study on young people and religion.

Community-development grants go to efforts that benefit residents of Indianapolis and Indiana in the areas of human and societal needs, inner-city and neighborhood revitalization, low-income housing, and the arts and culture. For example, the Coalition for Homeless Intervention and Prevention, in Indianapolis, received $250,000 for general operating support.

Application procedure: Charitable organizations with projects that fit the endowment’s guidelines may submit a preliminary letter of two pages or less that provides information about the organization, the proposed project, and the amount of money to be requested. Correspondence should be directed to the Program Office at the address above. The endowment responds in writing to all preliminary inquiries and will request a full proposal from those organizations whose projects it feels warrant consideration. The grant-review process takes three to six months, and all grant seekers receive written notification of the endowment’s decisions. Additional information is available on the endowment’s Web site.

Key officials: N. Clay Robbins, president; David D. Biber, secretary and treasurer; Sara B. Cobb, vice president, education; Craig Dykstra, vice president, religion; William M. Goodwin, vice president, community development; Thomas M. Lofton, chairman of the Board of Directors.

Z. SMITH REYNOLDS FOUNDATION

147 South Cherry Street, Suite 200
Winston-Salem, N.C. 27101
(336) 725-7541
http://www.zsr.org

Period covered: Year ending December 31, 2003.

Purpose and areas of support: This foundation was created in 1936 as a memorial to Zachary Smith Reynolds (1911-32), the youngest son of the founder of the R.J. Reynolds Tobacco Company. It was endowed by his brother, R.J. Reynolds Jr., and two sisters, Mary Reynolds Babcock and Nancy Susan Reynolds Bagley, using the money they inherited from his estate.

As stipulated in its charter, the foundation makes grants only to organizations that benefit North Carolinians and, over the years, groups in all 100 of the state’s counties have received awards from the foundation.

The foundation derives its income from two separately controlled trusts, the W.N. Reynolds Trust and the Zachary Smith Reynolds Trust. While the foundation itself has no assets, the two trusts cumulatively hold assets valued at approximately $400-million.

Following a recent strategic-planning process, the foundation now focuses on five areas: community building and economic development; the environment; governance, public policy, and civic engagement; precollegiate education; and social justice and equity. Its grant-making policies remain flexible, however, and it strives “to serve as a catalyst for new practices and ideas and to respond to other challenges or opportunities that are unique to North Carolina.”

The community-building and economic-development program emphasizes community-led efforts that help poor and other traditionally excluded people create economic opportunities, enhance race relations, and boost community development. Within this framework, specific areas of focus include increasing affordable housing, advocating alternative energy sources, supporting sustainable agriculture, eliminating disparities in the living standards of rural and urban residents, and addressing myriad barriers caused by discrimination.

Allocations included $25,000 to the Hinton Rural Life Center, in Hayesville, to support low-cost housing and economic renewal in the far western corner of North Carolina, and $50,000 to the Partnership Project, in Greensboro, for the Institutional Dimensions of Racial and Ethnic Disparities in Health Care project.

Environmental grants support projects that help prevent irreversible damage to the environment; that preserve, protect, and improve North Carolina’s diverse natural areas; and that advocate environmental justice. For example, the Dogwood Alliance, in Asheville, received $25,000 for its advocacy work to reduce the demand for forest products.

The governance, public-policy, and civic-engagement program supports efforts to spur civic engagement and responsibility, to educate the public about government institutions and policies, and to monitor government performance. Awards included $50,000 to the Institute for Southern Studies, in Durham, for the NC Voting Rights Project.

Grants for precollegiate education focus on improving equity in education, particularly in low-income communities, and on encouraging public schools to address challenges that North Carolina’s increasing racial and ethnic diversity poses for students, teachers, and administrators.

The social-justice and equity program strives to empower women and girls, promote racial and ethnic equality, reduce poverty through economic opportunities, and achieve greater equity in the state’s criminal-justice system. Grants included $30,000 to High Country Amigos, in Boone, to establish a center for Latinos in Ashe County, and $70,000 to Legal Aid of North Carolina, in Raleigh, to guarantee that legal services are available to victims of domestic violence.

In 1946 the foundation entered into a contract with Wake Forest University to move the institution from the town of Wake Forest, near Raleigh, to its current home in Winston-Salem. The foundation continues to provide annual support to the university.

Application procedure: The foundation makes grants only to nonprofit, charitable organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code and to government units. Organizations that operate both within and outside North Carolina may be eligible for consideration for programs operating within the state. The foundation accepts proposals twice a year: by February 1 for consideration at its May board meeting and by August 1 for consideration at its November board meeting. Proposals may be sent by mail or via the foundation’s Web site, but not by fax or e-mail. Detailed information on grant-making guidelines and the application process is available on the foundation’s Web site.

Key officials: Thomas W. Ross, executive director; Mary Fant Donnan, Barbara Roole, Monteic A. Sizer, and Joy Vermillion, program officers; Patricia B. Williamson, executive assistant; Mary Mountcastle, president of the Board of Trustees.

CORPORATIONS

METLIFE FOUNDATION

1 Madison Avenue
New York, N.Y. 10010
(212) 578-6272
http://www.metlife.org

Period covered: Year ending December 31, 2003.

Purpose and areas of support: This corporate foundation was established in 1976 by the Metropolitan Life Insurance Company, commonly known as MetLife. It makes grants to organizations nationwide.

In 2003, the foundation gave $25,803,530, and MetLife awarded $2,821,822, in six program areas: health, which received $7,665,087, or 27 percent of grant dollars; civic affairs, $7,036,175, or 25 percent; education, $5,277,893, or 18 percent; culture, $4,410,500, or 15 percent; United Ways, $1,900,000, or 7 percent; and public broadcasting, $1,317,000, or 5 percent. The remaining 3 percent of grant dollars went to fund-raising events and affiliate contributions. All figures were consistent with the previous year’s grant making.

During the year, the foundation increased its efforts to promote healthy aging. Specific areas of focus include the “mental fitness” and civic involvement of older Americans, research on Alzheimer’s disease, and public awareness about age-related issues.

Other current health-related efforts emphasize national programs that seek to increase fitness and prevent obesity among young people and to educate them about the perils of drug and alcohol abuse.

Civic-affairs grants focus on projects to meet the needs of low- and moderate-income people, including through affordable housing, community-based services for families, after-school activities for youths, public-safety and economic-development activities, and efforts that promote diversity, inclusion, and volunteerism.

The education program stresses support for projects that enhance classroom teaching and teacher retention, encourage parental involvement, increase interaction between schools and their adjacent communities, and expand access to higher education. For example, the foundation’s new Community College Connection Program made grants to nine institutions for programs designed to attract and retain students, provide counseling and other support services, and reach out to diverse students.

Culture grants support arts education, national tours of performing-arts groups and traveling exhibitions, community outreach, and family-oriented programs. The foundation renewed its Museum Connections program for an additional three years, making grants to museums in 13 states.

MetLife’s Social Investment Program committed nearly $25-million in loans and equity investments to local and national organizations that might otherwise have difficulty obtaining credit. Awards included $3.7-million to Chelsea Residents, in New York, to establish 207 units of supportive housing.

Application procedure: Applications are accepted and reviewed throughout the year. Additional information is available on the foundation’s Web site.

Key officials: Sibyl Jacobson, president and chief executive officer; Jonathan Rosenthal, treasurer; Catherine A. Rein, chairman of the Board of Directors; Robert H. Benmosche, chief executive officer and chairman of the board, MetLife and Metropolitan Life Insurance Company.