Ideas to Impact: 2012 Annual Report

Eugene W. Cochrane and Minor M. Shaw

left:
Eugene W. Cochrane Jr.,
President

right:
Minor M. Shaw,
Chair

Financials PDF Download our 2012 Print Annual Report

Letter from the President & Chair

Those of us who work in philanthropy know that effective grantmaking is really quite complex. At The Duke Endowment, our desire to direct resources where they will produce the best results in North Carolina and South Carolina involves research, collaboration in the field, progress reports and frequent site visits, where we’re privileged to see our grant dollars at work.

But it all starts with the seed of an idea.

Our founder, James B. Duke, began the Endowment with the idea of doing “big things for God and humanity.” His long-held dream was to channel profits from his hydroelectric power company into life-enriching services for people in the Carolinas, creating a philanthropic foundation that would benefit the region forever.

He spent years discussing the plan with his friend and attorney, William R. Perkins. In late 1924, when Mr. Duke was ready to finalize the Indenture that would create The Duke Endowment, he and trusted advisors met for four days in Charlotte, reading each section aloud to make sure the document “met the test of real assistance.”

Eighty-eight years later, our work is still rooted in that process. Our grantmaking begins with an idea that aligns with our strategic goals. We test and learn from that idea, sometimes through pilot projects. Small efforts may percolate into strategies for larger-scale programs — but even with modest investments, we strive for lasting impact.

On the following pages, you will find examples. A telepsychiatry network improves the way patients receive treatment. The Furman Fine Arts Initiative provides enrichment for campus and community. A child welfare reform project promotes family well-being. Spirited Life helps pastors tend to their mental and physical health.

You’ll read about other milestones as well. In 2012, we distributed more than $120 million in grants, bringing our total since inception to more than $3 billion. We honor the many organizations that have worked with us to improve health and health care, to help children lead successful lives, to prepare students to contribute to society and to enrich spirits in rural communities. In the year ahead, we look forward to cultivating new ideas for “real assistance” — and continuing Mr. Duke’s legacy of hope.

Financials

$3 Billion Since 1925

As of December 2012, The Duke Endowment had distributed more than $3 billion in grants.

Total Assets: $2.8 Billion Grants and Expenses
Grants Paid Provisions for Taxes Program Expenses Investment Expenses Administrative Expenses Grants Paid Provisions for Taxes Program Expenses Investment Expenses Administrative Expenses
Financials PDF Download our 2012 financial statements

Celebrating a Milestone

At the end of 2012, we marked another chapter in our founder’s legacy by distributing our 3 billionth dollar since inception. The milestone gave us an opportunity to celebrate our grantees, past and present, who share Mr. Duke’s commitment to making a difference. It took us 68 years to distribute our first $1 billion, another 12 years to reach $2 billion — and only eight more to arrive at $3 billion.

Celebrating a Milestone

Major Grant

Our $45 million grant to Davidson College in October was the largest single grant ever given to the school. The support will help the college restructure its campus to foster new methods of interdisciplinary learning. Six buildings will be expanded, renovated or constructed over the next decade. Our board chair, Minor Shaw, said the historic grant was “a testament to our strong belief in the college, its leadership, faculty and staff, and student body.”

Major Grant

Faith and Food

Across North Carolina, Come to the Table conferences link members of the faith community with farmers, gardeners, educators, health professionals and community organizers to find ways to relieve hunger and support local agriculture. A $50,000 grant from The Duke Endowment in 2012 supported the most recent round of regional conferences, which drew record numbers. The gatherings “speak to the heart, mind and hands of people of faith,” said one participant. They inspire people to be “part of the front-row connection between faith and food.”

Faith and Food

Extending our Reach

To help us find the most strategic use for our grant dollars, we explore ways to improve lives and communities through collaboration. Our Child Care program area is working with several national foundations, including the Annie E. Casey Foundation, Casey Family Programs and the Edna McConnell Clark Foundation, to tackle challenges in child welfare. In November, the Endowment joined the Dave Thomas Foundation for Adoption to expand child-focused adoption across the Carolinas.

Extending our Reach

Rural Hospital Improvement

With $5 million in support from the Endowment, 10 small and rural hospitals in North Carolina and South Carolina have been chosen for an innovative effort to implement a management philosophy and practice called “Lean.” Additional hospitals will be chosen in 2013. In an earlier pilot project, Lean led to a cumulative cost savings of more than $19 million for 11 North Carolina hospitals.

Rural Hospital Improvement

Trent Semans Center

Duke University’s School of Medicine has moved into the new Mary Duke Biddle Trent Semans Center for Health Education in the heart of the Duke Medicine campus. The gleaming, state-of-the-art building includes simulation labs, a student lounge with outdoor terrace and a lecture hall for team-based learning. It is named in memory of the late Mary Semans, a Trustee of The Duke Endowment for 55 years and the first female Chair.

Trent Semans Center

At Home in the Carolinas

With construction underway, the countdown has begun for our move across town to 800 East Morehead Street. Our three-story, 46,000-square-foot building is planned for LEED Silver certification, with meeting space on the first floor for Endowment grantees and other stakeholders, and two upper levels of office space for staff. We expect to move in the summer of 2014.

At Home in the Carolinas

Warm Welcome

Our Trustees named two new members to the Board and elected Minor Shaw to serve as Chair. Shaw succeeded the late L. Neil Williams Jr., and is the tenth person to hold the Chair position since the Endowment’s founding. Joining the Board are Harris DeLoach Jr., executive chairman of Sonoco Products Co., and Judy Woodruff, co-anchor and senior correspondent for The PBS NewsHour.

Warm Welcome

Home Sweet Home[Page]

In April, The Duke Endowment launched a newly redesigned website chock full of inspiring grantee stories, current news and expanded information from our four program areas. Dynamic new features make it easy to connect with us, and a fresh look conveys how the vision of James B. Duke lives on. Take a look around. We would love to hear what you think.

Home Sweet Home[Page]

Leadership

Staff Guiding Principles Trustees

Guiding Principles

Trustees

Staff