Letter from The President and The Chairman
Taking the long view, investing in Rhode Island
 Against a backdrop of sweeping national change and an historic presidential election, 2008 was a year of new beginnings at Rhode Island’s only community foundation. In its 92nd year, the Foundation welcomed its fourth president and chief executive officer. And George Graboys, who served the Foundation with distinction as a director for a decade and as chairman for the last three years, passed the mantle of leadership to a new chairman. The Foundation owes a debt of gratitude to George, who also served the Foundation as acting president for the last seven months of his chairmanship. The George Graboys Leadership Fund, established by the board of directors in his honor, permanently commemorates his countless contributions. We salute George for accepting a new challenge as chairman of the University of Rhode Island Foundation, a reflection of his unerring commitment to public education in our state. The Foundation’s significant ongoing investment in the URI/Central Falls partnership, the Rhode Island League of Charter Schools, and other innovative efforts, and our increasing role as a champion for quality public education can certainly be counted among George’s great legacies.
Tempered by sobering economic news for our nation and our state, the Foundation’s own financial outlook remained cautiously optimistic. Our investments in the community through grantmaking exceeded $27 million for the first time in our history. We accepted more than $44 million in new gifts, a figure we have achieved only once before. Thanks to hundreds of generous Rhode Islanders who continued to place their trust in the community foundation model of permanent philanthropy, despite a stunning downturn in the financial markets that left much of the nation reeling, we maintained our position as one of the largest community foundations in the United States by asset size. Like all endowments, ours suffered losses in the short term, but we are proud of our 10-year investment performance and feel confident in our long-term investment strategies.
"We take seriously our responsibility to serve a broad crosssection of Rhode Islanders..."
The largest fund to be established in 2008 was the Fund for a Healthy Rhode Island, a $20 million dollar endowment that will be directed toward increasing access and affordability of primary care and medications to all Rhode Islanders. Healthcare has long been a priority investment area of the Foundation; the Fund for a Healthy Rhode Island will help us to further advance the systemic changes in healthcare so critical to the future of our state. We invite you to learn more about the Fund in these pages.
We take seriously our responsibility to serve a broad crosssection of Rhode Islanders, as the state’s only community foundation. Witnessing the difficulties faced by so many Rhode Island residents in the wake of unprecedented unemployment and a crushing housing foreclosure crisis, we felt impelled to take action. So, in December, partnering with three trusted agencies that provide statewide, direct services – the Rhode Island Community Food Bank, Crossroads Rhode Island, and the Salvation Army Good Neighbor Energy Fund – the Foundation contributed $500,000 that would otherwise have been reinvested in our permanent endowment to ensure that individuals and families would be able to get through the winter with adequate food, shelter, and heating assistance.
This emergency community grant represented a departure for the Foundation from our customary investments in Rhode Island. In fact we are committed to a long-term strategy shaped by priorities in six key sectors: education, healthcare, human services, community and economic development, arts and culture, and the environment. Through a variety of grants programs over the years, the Foundation has funded innovative projects like AS220 and the Knowledge Economy, seeded critical research arms like Rhode Island Kids Count, and supported organizations with statewide reach like Grow Smart Rhode Island. We regularly convene leaders in every sector to explore common interests and share best practices. Included in the yearbook is a complete listing of our 2008 grantees – our treasured partners in envisioning and implementing change for the better in our state.
The Foundation has long been committed to strengthening and building the capacity and financial sustainability of these organizations through activities that extend our reach beyond grantmaking. In 2008 our Initiative for Nonprofit Excellence (INE) set the wheels in motion for several targeted programs, including an educational series for board members sponsored by Fidelity Investments. The INE also selected twelve executive directors to participate as Foundation Fellows, a yearlong opportunity for rejuvenation, renewal, and self-exploration.
Our investments in Rhode Island would not be possible without the generosity of our donors who invest along with us. We have continued the tradition of placing these heroes at the heart of our yearbook, where you can read their touching and inspirational stories. Common threads seem to emerge each year: love for Rhode Island, desire to leave a lasting legacy, and determination to return something meaningful to the community.
"…taking the long view, in the Foundation’s 93rd year, we remain optimistic."
And common threads have run through the Foundation’s history. Even as we consider the economic and social challenges ahead, we renew the commitment to our fundamental principles of community leadership, statewide impact, and permanent philanthropy.
In 1966, as the Foundation commemorated its 50th anniversary, board chairman John Nicholas Brown wrote these words:
“This has been a year to celebrate, for in 1966 the Rhode Island Foundation completed its first half century. Since 1922 grants by the Foundation to hundreds of the state’s health, welfare, cultural, educational, and recreational activities have amounted, with marked increased each year, to the significant total of $3,155,853.24. Despite this impressive record of public service, some of the state’s public-minded citizens may not be aware of how effective such a community trust is as an instrument for public or private philanthropy. The Rhode Island Foundation operates on the theory, ‘That gifts for charitable purposes can be more effectively administered and the income more effectively distributed if such gifts are combined in a common fund; and that the people of Rhode Island may feel assured that their bounty shall be applied in such ways as shall be found, from time to time, to be for the greatest good of the community notwithstanding the constantly changing conditions of human life.’”
These are challenging and changing times for all Rhode Islanders. But taking the long view, in the Foundation’s 93rd year, we remain optimistic. We will come out of this economic downturn. And the Foundation will find new ways to continue fulfilling its mission, thanks in no small part to the wonderful Rhode Islanders engaging in philanthropy for the greatest good of the community, “notwithstanding the constantly changing conditions of human life.”
We thank you for your continued confidence in your community foundation.
David M. Hirsch
Chairman
Neil D. Steinberg
President and Chief Executive Officer |