Foundation Report 2011

hope heroes

Who we areHope Christian Community Foundation is a non-profit and tax-exempt community foundation that helps people invest strategically for the building of God’s kingdom in our community and throughout the world.

In 1998, Larry Lloyd’s vision of a “resourcing ministry” to provide assistance to donors and ministries became Hope Christian Community Foundation. Hope is now the largest Christian community foundation in the United States with assets of more than $100 million. Since its inception, grants made through Hope total almost $200 million with more than 75 percent of the gift made to Christian charitable organizations. Last year, it was the largest granting foundation in Memphis with grants of $30 million.

A look inside■ Profile of Kem and Norma Wilson

■ Donor Advised Funds

■ Profile of David and Lindsey Ozier

■ Hope For Memphis Fund

■ Profile of Nancy Coe

■ Why Invest through Hope

■ Financial Highlights

Dear friends, What does it mean to be a hero? When we’re kids, it’s pretty easy to define —someone with superpowers and a cape or a high-jumping, hard-dunking athlete. As adults, the word hero means much more — from the heroes of 9/11 and military personnel to firefighters and teachers.

No matter the nature of their heroism, a common thread that links heroes of any type—heroes don’t do what they do for thanks or recognition. Heroes give of themselves freely because they understand their call to do so.

The individuals and families who give away their resources — whether it’s through the Hope Christian Community Foundation or some other vehicle — do so because they are called to do it. They’re not in it for recognition; rather, they realize that everything they have actually belongs to God. They give out of the sheer gratitude that they feel for the abundance that the Father provides us all. Our heroes also include the countless persons who are called to serve in ministries and in churches throughout the city.

Remember the Lord your God, for it is He who gives you the ability to produce wealth.

Deuteronomy 8:18

In the following pages you’ll read about a few of these heroes who remind us of Christ’s words from the book of Matthew, “For where your treasure is, there your heart will be also.” Their hearts and their treasure are in dozens of ministries that are making a positive impact in the Memphis community and around the world.

If you are not a current member of the Hope family of donors — which includes more than 300 individuals, families and companies — we invite you to learn how we can help you be the hero you are called to be.

Our mission is to encourage philanthropy and increase giving.

We seek to transform the city of Memphis through churches and

ministries that combine Christian faith and Christian action.

Michael Harris, CFAPresident, Hope Christian Community Foundation

Kemmons Wilson, Jr. inherited more than a name from his father. Along with his brothers and sisters, he inherited a legacy of philanthropy from their dad, founder of the Holiday Inn chain of hotels. Through the Kemmons Wilson Family Foundation, Kem and his siblings invest generously each year, supporting a variety of causes dedicated to improving the Memphis community.

Kem and his wife, Norma, are equally enthusiastic about philanthropy when it comes to their own resources. “Well, the family legacy of giving started with my father and his love for the city,” Kem says. “He got involved in many, many good causes like The Salvation Army and The Memphis Union Mission, and we saw the joy he and my mother had from giving. It just sort of soaks in.”

Kem and Norma are partners when it comes to giving decisions, and are determined to pass on the joy of giving to their kids. “I think Kem is very generous,” Norma says. “I can see how it’s rubbed off on them,” she says. “They have that heart of giving that they’ve learned from Kem.”

For many reasons, Kem and Norma choose to direct their giving through the Hope Christian Community Foundation. “I’ve been involved with Hope for a long time,” Kem says, “and I think it is absolutely the most efficient way of investing our resources.”

The couple is passionate about a host of causes, including various mentoring programs in Memphis, including DownLine Ministries and the Second Presbyterian Fellows program.

“When we invest through Hope and our gifts are distributed to organizations in our city,” Norma says,

“it’s a way of giving twice.”

Like so many Hope donors, the reward is the joy of giving itself.

“I would say there’s a couple of truths that have helped shape our lives for effervescent

giving, and one is that God does own it all and we are all Earthly stewards,” Kem says. “And

secondly, it’s not about giving, it’s about returning. It all came from Him. And finally, we’re here to build God’s kingdom.”

“To me, finding joy is serving and bringing joy is giving. You can give without loving but you can’t love without giving. It really does have to be in tandem.”

Joy of giving is a family affair

DownLine Ministries

A Donor Advised Fund (DAF) makes giving efficient, effective, flexible and easy. A DAF is established by donors and provides continued involvement, allowing donors to plan their giving and make grant recommendations to churches or non-profit organizations whenever they choose. The donors receive a tax deduction the year in which the gift is made to their specific fund. Funds are invested in a variety of alternatives and grow tax-free. A DAF is a low cost, tax-advantaged alternative to a private foundation.

Better than a private foundationFamilies and companies have the functionality of a private grant-making foundation with no hassles and at a fraction of the cost.

ConvenientAs a donor, you make tax-deductible contributions to your separately administered fund. Your fund is invested in a variety of alternatives until you decide to give or make grants. You advise Hope concerning who to give the resources to, and we write all the checks you normally write to church, non-profits, schools and ministries. We send you quarterly statements listing your gifts, grants, investment returns and the balance of your fund. All of this information is available to you on our secure website.

Tax efficientHope encourages donors to contribute to their funds in a form that maximizes the tax efficiency of their giving. While giving cash to charity saves taxes by creating a tax deduction, giving appreciated stock or giving out of a business can create more tax savings above and beyond the tax deduction.

TimingA donor can make a contribution at the end of the year

for tax purposes and then take his/her time to decide on the recipients.

Accumulate fundsA donor can accumulate funds to make a very large gift or continue to give during lower income or retirement years while

receiving tax deductions in years when their income is higher.

Private & anonymousWhile private foundations are required to fully disclose all activities,

and therefore are not very private, the activity within Donor Advised Funds is disclosed in aggregate with other funds within the foundation, thus maintaining anonymity. In addition, we enable you to make anonymous grants from your fund. Hope is the only Foundation in Memphis that will not publish our donors’ names in publications or online.

Strategic givingHope can assist you with determining needs, conduct ministry research and develop your giving strategy. You can determine who to give to and develop a budget and a strategy for your giving rather than reacting to pleas and emergency appeals.

Estate & gift planningA Donor Advised Fund is the ideal tool for planned charitable giving, offering the ultimate in flexibility in wills or trusts.

Financial & retirement planningYour financial or retirement plan should include the funding of a Donor Advised Fund prior to retirement, maximizing the value of your charitable deduction during your highest income-earning years while eliminating the concern of depleting retirement savings with charitable gifts.

Give complex giftsHope offers the ability to accept gifts such as real estate, restricted securities, business interests, retirement plans, life insurance, certain personal property and business equipment.

Tax-free growthYour invested Donor Advised Fund grows tax-free until you decide to make grants. Hope offers access to Longleaf Partners, Diversified Trust and Reliant Investment Management. Individual investment managers may be selected for funds with assets greater than $300,000.

A legacy of givingDemonstrate to your children the joys of giving. Allowing them to be a part of your family grants will educate children on being good stewards of the resources God entrusted to us.

It is more blessed to give than to receive.Acts 20:35

Donor Advised Funds

Giving strategically — and intentionally — isn’t just for folks in the latter years of their lives or careers. Younger givers can benefit — possibly even more than their older counterparts — from a partner like the Hope Foundation.

For proof, look no further than David and Lindsey Ozier, 33 and 31 respectively, with three children under the age of 5. Their passion for giving is inherited. “For me, giving has always been a big part of my family,” David says. “My parents have always given generously, and I think that’s what my father picked up from my grandfather, and Lindsey’s dad is certainly the same way — just generous with giving.”

David’s dad passed on not only the giving gene but also a passion for the work of the Hope Foundation.“It always seemed like a good thing, like something all the leaders of Memphis would do. Just the neat opportunities it produced and the way it gives back to the city — to me it was a no-brainer.”

Ditto for Lindsey, who coordinates the family’s finances. “Practically speaking, it’s so easy,” she says. “You can write one check a month, which is what I do, and when tax time comes you can go online, to one place and keep track of things so easily. It streamlines it for someone like me who is not the most organized person. We love it.”

Hope’s local focus is a plus for the couple as well. “I’ve not always lived in Memphis, but I love being part of something bigger with its hands on the pulse of the city,” Lindsey says. “It’s so exciting to know that even when you don’t have the resources and understanding, you can jump in on

something that you can trust and know they really have a good grasp on what our city needs.”

Locally, the couple is particularly passionate about Advance Memphis and Young Life.

“It might not be that the amount you can give every month is earth-shattering, but it’s a privilege to have a part in all these great things that God is doing,” Lindsey says.

Both Lindsey and David are sold on the flexibility of giving through Hope. “There’s money there, when things

come up, that is already set aside,” says David. “Why would you want to do all this on your own and juggle getting different receipts back? I’m more than willing to talk about the value that it’s added to us.”

“The Bible talks about how where your money is, there your heart will be,” Lindsey adds. “When you put your money somewhere, your heart goes there too. You’re immediately attached.”

Putting their money where their hearts are

Advance Memphis

Grants of more than $800,000 have been made from the Hope for Memphis Fund since September 2007 to the following organizations:

Advance Memphis offers job skills and financial literacy training for residents of the 38126 ZIP code, one of the poorest ZIP codes in Memphis. In partnership with the Irwin Lansky Foundation, The Fund underwrote a new staff position to enhance their “Jobs for Life” training program for three years.

Agape Child & Family Services provides children and families with healthy homes in the regional area through community restoration, homeless services, mentoring, foster care, adoption, maternity services and counseling. The Fund provided a three-year grant to support the development of Agape’s Powerlines Community Network (PCN). PCN is a neighborhood-based program to assess needs and supply necessary resources and tools for transformation.

Brinkley Heights Urban Academy is a private Christian school for at-risk inner-city kids. The Fund provided funding to build the capacity of the school’s development efforts.

Crown Financial Ministries works primarily with churches equipping members to learn, apply and teach God’s financial principles. The Fund provided support for Crown’s area director.

DownLine Ministries exists to train and equip Christ followers in making disciples according to the model and mandate of Jesus Christ. The Fund helped underwrite the hiring of the director of its Emerging Leaders Program.

Emmanuel Episcopal Center offers a multitude of Christian-based services and programs to youth and adults in the Memphis inner city. The Fund provided a grant to help expand its after-school program at the charter school, Promise Academy.

Hope for Memphis FundThe Hope for Memphis Fund was established by the Foundation to invest strategically in Christian organizations seeking city transformation: spiritually, academically, economically and relationally. It desires to fund ministries that seek to combine Christian faith and Christian action in furthering God’s kingdom in our city.

We believe Christian ministries (faith-based non-profits) offer the potential to be more effective and have an advantage over their secular counterparts. We have generally found that the most effective faith-based groups are explicit about their faith, relationship-based, holistic, character-forming, entrepreneurial, extend over time, and rooted in neighborhoods.

The primary focus for the Hope for Memphis Fund is to empower and strengthen existing Christian ministries in Memphis by helping them be more effective and sustainable.

The Fund makes grants and loans from the surplus earnings of Hope and donations made to the Fund. As a result of our continued growth and financial strength, all earnings from new Donor Advised Funds are added to the Hope for Memphis Fund.

Generous Community Initiative is an initiative of an independent steering committee to encourage Biblical stewardship in Memphis. The Fund has provided funding for this initiative.

Families Matter is an outreach ministry of Christ Community Health Services that focuses on strengthening marriage and families. The Fund partnered with the Irwin Lansky Foundation and the Second Presbyterian Church Foundation to offer multi-year grants to relaunch Families Matter.

Juvenile Intervention & Faith-based Follow-up (JIFF) is a court & community referred intervention program designed to give youth involved with the juvenile justice system the skills, support and direction necessary to break the destructive cycle of criminal behavior. The Fund provided a capacity building grant including a strategic plan and fund development.

Memphis Center for Urban Theological Studies (MCUTS) provides affordable, accessible and accredited theological education and training for pastors serving in the urban context. The Fund provided multi-year support during its transition from affiliation with Crichton College to Belhaven University.

Memphis Leadership Foundation empowers urban individuals and families through creative, innovative, and effective ministry and leadership. The Fund provided funding to support the hiring of a director for its Red Zone Ministry, which serves at-risk youth in several areas of the city. In addition, The Fund underwrote development and implementation of its Transformational Giving curriculum. This development training was provided for more than 20 non-profits.

Memphis Urban Young Life works in the schools of inner-city Memphis to introduce young people to the Gospel and help them grow in their faith. The Fund provided funding to add a full-time staff person.

The Neighborhood Christian Center provides compassionate, Christ-centered ministry to the practical and spiritual needs of the city’s poor. The Fund helped underwrite its LoveBuilders program for marriage and family enrichment.

The Neighborhood School is a kindergarten through eighth grade Christian school in Binghampton for children who had no hope. The Fund provided funding to hire a new executive director and provide for upgrades to its computer system.

The Visible Music College prepares Christian artists, technicians and business professionals for skilled, relational service in the arts industries and the church. The Fund provided a one-year grant to underwrite the hiring of a development director to complete its capital campaign for the college’s new location in downtown Memphis.

YMOT Outreach Ministries serves at-risk youth in Whitehaven through after-school and other programs. The Fund provided a challenge grant to expand its after-school program.

Youth Visions’ mission is to meet the holistic needs of the youth who live in the Frayser Community. The Fund provided funding for its summer youth-leadership program. In addition, it provided support for a leadership program in partnership with Youth Visions and Frayser High School.

God shall supply all your needs...Philippians 4:19

Often, donors first come to foundations like Hope through a financial advisor. And you’re not likely to find a bigger fan of Hope’s work than Nancy Coe with Morgan Stanley Smith Barney.

“As a financial advisor, I’m having a conversation with clients about what their goals and dreams are for this money,” Nancy says. “I ask, ‘What do you hope to accomplish? What do you expect these resources to do? And what do you really value?’”

What givers value is key, Nancy says. “I have had the happy opportunity to introduce quite a few clients to the Hope Foundation. Two of them had no children. Their values really come into play,” she continues. “I told them about Hope, they liked what they learned and both of them set up Donor Advised Funds, which simply means that at their death, everything they had went into this fund. But one of them got so excited about it he started putting everything in when he was alive, because he wanted to have the fun of giving away while he was alive.”

Raising a generation of future givers is a priority for Nancy and —hopefully — by extension, her clients. “I think one of the greatest opportunities for the Donor Advised Fund is to train the next generation in philanthropy, to make it a family affair with your children so with the assets you set aside — whatever size — you set one weekend a year when all

the children gather to decide where to give. I think people are scared off by thinking that we’re talking about a lot of money. But God is interested in your heart, not the zeroes.”

The volume of giving is not the only misconception Nancy encounters. “Not everybody is a Christian who gives

to the Hope Foundation,” she says. “It’s been fun to straighten out some misconceptions about that. First of all, not everything you give through the Hope Christian Community Foundation has to go to Christian causes. It has to go to 501c3 organizations.

Secondly, several of my clients who have decided to open funds have not been Christians, but they see the

tremendous value, efficiency and competency of Hope as a partnership to achieve their goals.”

It doesn’t take long to learn that Nancy is enthusiastic not only about her job, but also about the Hope Foundation. “I just love it,” she says. “I love having the conversation. It’s so easy”

Helping clients discover the joy of giving makes her happy. And she’s more than happy to do it through Hope. “I’m not sure there is a greater joy,” she says. “You think that you’re doing something for someone else, but it transforms your life. I can’t imagine what Memphis would look like without Hope.”

For one Hope ambassador, it all starts with a conversation

Emmanuel Episcopal Center

Why invest through Hope?Hope Christian Community Foundation has a Christian-focused vision for Memphis with a high level of services for donors. We emphasize giving and

not building an endowment. We are an important resource for donors, ministries and churches.

We…■ Are the largest granting foundation in Memphis (2010-2011)

■ Give away all surplus earnings and fees on new funds

through the Hope for Memphis Fund

■ We emphasize giving — not

building an endowment

■ Help donors develop a

Christian stewardship

philosophy

■ Emphasize strategic Christian giving

■ Are the largest Christian Community Foundation in the

United States

We serve…■ INDIVIDUALS: Donor Advised Funds, charitable gift

planning, assistance with estate and financial planning, grant

assistance and ministry research

■ MINISTRIES: Management of endowments and surplus

cash, consulting services and grants through the Hope for

Memphis Fund

■ CHURCHES: Administer church foundations, Donor Advised

Funds for members and investment of surplus cash

■ FINANCIAL ADVISORS: Build and strengthen client

relationships with charitable gift planning, estate planning

and financial/retirement planning

Financial Highlights

Cumulative Grants (Millions) Total Assets (Millions)

125

156

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

815

2938

4757

73

92

191

3.3

12.46.5

22.3

31.7

49.7

70.7 71.0

52.9

67.4

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

106.2

Audited financial statements are available upon request.

Fiscal year ends April 30th.

Areas of ImpactA breakdown of grants by area

A. Education 39%

B. Youth 17%

C. Churches 17%

D. Families 15%

E. International Ministries 12%

A

BC

D

E

From everyone who has been given much, much will be demanded...

Luke 12:48

Board of Directors Board of Advisors

Hope Staff

Kirk Bailey, ChairmanMagna Bank

Ralph BradenMorgan Stanley Smith Barney

Nancy CoeMorgan Stanley Smith Barney

Barry CoxF.S. Sperry Co.

Ben ClarkClark & Clark

Fred DavisFred L. Davis Insurance Agency

John DudasBelz Enterprises

Tom DyerWyatt, Tarrant & Combs

Howard Eddings, Jr.Memphis Leadership Foundation

Ed GillentineWilliams & Gillentine Legacy Planning

Lee GibsonDiversified Trust

Sarah HaizlipSummit Asset Management

Hamp HolcombStrategic Financial Partners

Frank Jemison, Jr.ALCO Management, Inc.

John LaughlinSummit Asset Management

Larry LloydMemphis Leadership Foundation

Bill MartinReal Estate & Financial Consulting

Ashley MayfieldDiversified Trust

Jimmy SextonAthletic Resource Management

Douglas SkipworthRedplus Innovations

Harry SmithHNB Partners

Floyd TylerPreserver Partners

C. Kemmons Wilson, Jr.Kemmons Wilson Corporation

Kim BlankenshipSecond Presbyterian Church

David DixonLipscomb & Pitts Insurance

Barry JenkinsWells Fargo

Musette Morgan

Calvin Ozier, Jr.UWT Logistics

Hank ParksLifetime Planning

Carroll Ann PeraEnvironmental Testing & Consulting

Michael Harris, CFAPresident

Brenda BrazleyDirector of Donor Relations

Shana South, CPAChief Financial Officer

Chris HillDirector of Development

HOPE CHRISTIAN COMMUNITY FOUNDATION5100 Poplar Avenue, Suite 2412

Memphis, TN 38137

(901) 682-6201www.hopeccf.org