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2013 Annual Report


Letter from the
President & Chair

From the time that James B. Duke penned his Indenture of Trust in 1924, The Duke Endowment has had a home in the Carolinas. Our founder, one of the great industrialists of the 20th century, was born and raised here, and he dreamed of putting his business profits to use for the common good.

Eugene W. Cochrane Jr., President (left)
Minor M. Shaw, Chair (right)

North Carolina and South Carolina were poor, rural states at the turn of the century, but Mr. Duke saw potential in the land and water, and an opportunity to help citizens thrive. His goal was to leave a philanthropic legacy that would "administer to the social welfare" and help people "along physical, mental and spiritual lines."

The future looks brighter today, but challenges persist for far too many. At The Duke Endowment, using Mr. Duke's Indenture to guide us, we address those challenges through our four focus areas: higher education, health care, child welfare and rural faith communities. Our fast-paced world has changed dramatically since our founder's time, but his legacy continues to open doors of opportunity across the two states.

We feature examples of that work in this year's annual report. You'll meet church volunteers who build homes for neighbors in need, giving them a fresh start. You'll learn about hospitals adopting a new business model to fine-tune the way they offer quality care. You'll read about a multi-year initiative to help colleges enhance student resiliency. And you’ll see how we are collaborating with other funders to make a stronger impact on child well-being.

As we reflect back on 2013, we are also looking ahead. In the summer of 2014, the Endowment will move to its first standalone headquarters on 1.8 acres in the Dilworth community, not far from our current offices in downtown Charlotte. The 46,000-square-foot building is planned for LEED certification, with meeting areas on the first floor and staff offices on the second and third. With its central location and increased access, we believe our new home will advance our efforts to work with others. Today's philanthropy takes place in an interconnected world, and the Endowment will cultivate opportunities to convene stakeholders involved in issues that touch our two states.

We are eager to open the doors at 800 E. Morehead St. and start a new chapter in Mr. Duke's dream for the Carolinas.

At Home In Charlotte


Home of James B. Duke

400 Hermitage Road


Duke Power Building

422 South Church Street


Johnston Building

212 South Tryon Street


North Carolina National Bank/City National Center/BB&T Center

200 South Tryon Street


Bank of America Corporate Center

100 North Tryon Street




Local Companies


Local People Employed


Working Hours


Steel From Recycled Sources


Construction Waste Recycled


Leed Certification

Our new headquarters will be LEED certified. Here are examples of how we earned points:

Sustainable Sites

Green roof, comprised of drought-tolerant sedum and northern reed grass, reduces storm water fees and protects the roof membrane.

Materials & Resources

Constructed of locally and regionally sourced materials, including concrete, structural steel and limestone. Materials use 20 percent recycled content.

Indoor Environmental Quality

Glass offices allow for natural light, while LED bulbs reduce energy consumption.

Water Efficiency

Utilizes low flow plumbing fixtures and a 20,000-gallon cistern captures rainwater for irrigation.

Energy & Atmosphere

21 percent less energy used compared to conventional design.


Tabs for


The Duke Endowment approved $99.4 million in new grants, some of which will be paid in future years. More than $127.7 million was distributed through grants, some of which were approved in previous years.
New Grants
Distributed in 2013
New Grants
Child Care

Prevention and early intervention

To equip children and families with skills to ensure that children reach developmental milestones to lead successful lives

Out-of-home care

To drive child welfare systems toward greater accountability for child well-being

New Grants
Distributed in 2013
New Grants
Higher Education

Academic excellence

Enhancing academic excellence through program and campus development

Educational access
and success

Increasing educational access and supporting a learning environment that promotes achievement

Campus and community engagement

Promoting a culture of service, collaboration and engagement among schools and communities

New Grants
Distributed in 2013
New Grants
Health Care

Quality and safety of
health care

Improving the quality and safety of health care delivery

Access to health care

Improving health by increasing access to comprehensive care

Prevention and
health equity

Improving population health by promoting prevention and health equity

New Grants
Distributed in 2013
New Grants
Rural Church

Rural church development

Building the infrastructure and capacity of United Methodist churches to enhance ministry and mission

Clergy and lay leadership

Strengthening United Methodist churches by improving the quality and effectiveness of church leadership

Congregational outreach

Engaging United Methodist congregations in programs that serve their communities

New Grants
Distributed in 2013
New Grants
Cross Program & Special Opportunity
New Grants
Distributed in 2013
New Grants


Partnering For
Child Well-Being
Child Care
Helping Students
Higher Education
Patient Care
Health Care
Engaging Rural
Churches in Service
Rural Church


Partnering For Child Well-Being

CHILD CARE: Helping vulnerable children lead successful lives by supporting early intervention, collaborative approaches and evidence-based programs that help serve children and their families more effectively.

Collaboration has always been a part of The Duke Endowment’s philosophy. But in today’s world, we see more than ever that the right partners can help us test ideas, expand effective programs and make strategic use of our grant dollars.

Our Child Care program area is working with several national funders — the Annie E. Casey Foundation, Casey Family Programs, the Dave Thomas Foundation for Adoption, the Doris Duke Charitable Foundation and the Edna McConnell Clark Foundation — to tackle challenges in child welfare.

The Endowment teamed with Annie E. Casey, for example, to see if an assessment tool used effectively in behavioral health could help vulnerable children receive the best care. Annie E. Casey launched a pilot to test the tool in Ohio; in 2013, the Endowment awarded a $750,000 grant to begin pilots in two North Carolina counties.

With Edna McConnell Clark, the Endowment participated in a national grants program, the Social Innovation Fund, to bolster high-performing providers that assist disadvantaged youth. In another project, the two funders helped Youth Villages expand in North Carolina to serve more families through Multisystemic Therapy, an intensive, in-home mental health treatment model that addresses serious behavior problems.

A $1 million grant from the Endowment is helping the Dave Thomas Foundation increase adoptions of children in foster care. The grant will fund Wendy’s Wonderful Kids recruiters in the Carolinas, who will use a tested approach called Child- Specific Adoption to find the best homes for children.

Working with other funders has helped the Endowment stretch its resources and reach. For grantees, it has cleared paths to outside opportunities.

In South Carolina, for instance, a longtime Endowment beneficiary — Carolina Youth Development Center — became the focus of a $350,000 grant from Edna McConnell Clark through the PropelNext initiative. PropelNext is helping Carolina Youth Development evaluate and refine its Bakker Career Center, which prepares young people in foster care for independence.

“Our relationship with The Duke Endowment helped connect us to a national funder, bringing new resources to the children of South Carolina,” says Barbara Kelley Duncan, Carolina Youth Development’s CEO. “Beyond the resources, these two foundations’ shared commitment to outcomes has made us more focused on the results of our work.”

Helping Students Flourish

How can colleges and universities help their students become more resilient? That’s the question behind a new initiative involving students, faculty and staff at four schools in the Carolinas. Supported by a $3.4 million grant from The Duke Endowment, the four-year collaborative will study resiliency on each campus and pilot interventions to enhance it.

Project leaders define resiliency as the ability to thrive despite adversity and difficult circumstances.

“Many students come to us well- prepared to handle the academic and intellectual rigor of college life, but they often struggle with emotional, social and psychological issues,” says Cathy Jones, dean of Student Success at Johnson C. Smith University in Charlotte. “It’s not enough just to enroll them.

We need to be sure we have the infrastructure in place to support their diverse needs.”

HIGHER EDUCATION: Working through Davidson College, Duke University, Furman University and Johnson C. Smith University to advance the pursuit of educational excellence, make education more affordable for qualified students and develop initiatives and programs to benefit local communities.

Planning for the initiative began in 2012 when The Duke Endowment sponsored a one-day summit for staff at Davidson College, Duke University, Furman University and Johnson C. Smith to discuss the idea of well-being and what it looks like on a college campus.

In the spring of 2013, Endowment Trustees approved a $600,000 grant to increase case management services for students at the four schools. The $3.4 million resiliency grant was approved that summer.

During the first year, campus leaders began designing the research model, which includes opportunities for students and faculty to work together and share their findings. The focus for the second year will be data collection and analysis, which will help identify key challenges at each school. In the third year, the schools will pilot interventions and assess their effectiveness.

By the final year, the goal is for each campus to have developed its own program to enhance student resiliency.

Participants say the diversity of the schools offers a unique opportunity to develop campus-wide models that could change the way college leaders across the country think about health and well-being.

“We may bring different concerns to the table,” Jones says, “but we’re all working toward the same goal of empowering students to compete, succeed and flourish.”

Transforming Patient Care

Some people might hear the word “lean” and think of a New Year’s resolution. But in rural hospitals across the Carolinas, the word is synonymous with improved — and more efficient — patient care.

Small and rural hospitals provide key medical services for the communities they serve, but many of them face unique challenges, says Laura Easton, president and CEO of Caldwell Memorial Hospital in Lenoir, N.C. “Through Lean, we’re preparing for tomorrow by looking at how we can improve the way we do our work today.”

Lean is a business transformation practice that was first used by manufacturers. It emphasizes continuous improvement by tapping the expertise of staff instead of relying on “top-down” decision-making, and focuses on adding value with fewer resources.

The Duke Endowment helped launch Lean in hospitals in 2008. After funding a successful pilot in Western North Carolina, the Endowment worked with the North Carolina Hospital Association and the South Carolina Hospital Association to expand the effort in both states. The South Carolina Office of Rural Health and the North Carolina Office of Rural Health and Community Care are also involved.

By the end of 2013, four hospitals in South Carolina and 20 hospitals in North Carolina were implementing Lean business practices. Fourteen additional rural hospitals in the two states had begun training.

The Endowment has committed $6 million in grants to the program, and the results are promising. Participating hospitals are reducing avoidable expenses and improving quality of care.

HEALTH CARE: Enhancing the lives of individuals and the vitality of communities by promoting prevention, improving the quality and safety of services and increasing access to care.

Every day at Caldwell Memorial, for example, teams of employees gather to discuss what went right the day before and to share ideas for improvement. Suggestions may be simple — such as storing surgical scrubs on a shelf that makes them easier to reach — but those 10-minute huddles help the hospital serve patients better.

At Abbeville Area Medical Center in South Carolina, CEO Rich Osmus says efficiencies gained from Lean have helped the hospital save about $1 million.

“Lean is an important part of our survival strategy,” Osmus says. “But most importantly, it’s improving the way we work for our patients.”

Engaging Rural Churches in Service

Behind each door is a story. A man was living in a camper. Another was sleeping on a relative’s floor. A woman and her granddaughter were in a mobile home with a leaky roof.

Their lives changed for the better thanks to Hope Homes, a nonprofit in Davie County, North Carolina, that builds new houses for neighbors in need. Established by Bethlehem United Methodist Church in rural Advance, it has expanded to include teams of volunteers from more than a dozen churches in the county.

Since 2007, $340,000 in grants to Bethlehem from The Duke Endowment has helped Hope Homes build 13 houses, including two in 2013. It’s one example of how the Endowment’s Rural Church program area is addressing a critical need in North Carolina, and creating opportunities for churches to engage in outreach. Other grants have supported multi- family housing or expanded housing repair ministries.

“The first person we built a house for told us, ‘You think you built me a house, but you gave me a home. Because you gave me a home, you’ve given me hope.’ And that’s how we got our name,” says Jim Stockert, Hope Homes’ volunteer leader. “Our mission is to provide housing for people who can’t provide it for themselves.”

Using a mix of public funds and private donations, Hope Homes builds one-, two- and three-bedroom houses. Volunteers do much of the labor; they even fill the rooms with furniture and stock the pantry with food.

“We tell people that all they need to bring is their clothes and themselves,” Stockert says. “By providing these families with suitable housing without a mortgage, we know that the limited resources they currently have can be better used to help improve their way of life.”

Hope Homes has the capacity to build one or two houses a year; the organization receives applications from as many as five families each time it launches a project. For most, it will be the boost they need for a fresh start. “I had lost everything,” says one woman. “Moving into this house gave me another chance, a way to see past a very hard time. It was like a door had opened to heaven.”

RURAL CHURCH: Developing rural United Methodist churches, supporting their clergy and lay leaders and expanding church outreach across North Carolina.


Since James B. Duke’s death in 1925, the assets of The Duke Endowment have achieved significant growth,
from $107 million to $3.4 billion. During the same time, over $3.2 billion has been distributed in grants.

Grants paid


Investment expenses


for taxes


Administrative expenses


Program expenses


Grants and Expenses

Almost 83 percent of the Endowment’s total spending goes directly to grantmaking. This compares favorably to foundations of similar size. The figures above show our grantmaking in the context of other spending. This grantmaking volume depends on our ability to invest assets wisely.




The Duke Endowment’s investment portfolio is managed by DUMAC, Inc., a professionally-staffed investment organization governed by Duke University.

During 2013, the investment return on the Endowment’s portfolio was 17.1 percent. Investment performance benefited from increases in global equity, hedged strategies, private capital, real estate, natural resources, commodities and fixed income. Impacted by investment returns, grants and expenses, the Endowment’s assets increased in value from $2.9 billion to $3.4 billion from December 31, 2012, to December, 2013.

For the 10-year period ending December 31, 2013, the Endowment’s investment portfolio, net of fees, returned 8.9 percent annualized, outperforming its policy benchmark by 2.3 percent and a 70 percent MSCI All Country World Index/30 percent Barclays Capital Aggregate Bond Index benchmark by 2.2 percent annualized over the same period.




First in the Nation

After eight years of development, Health Sciences South Carolina launched the nation’s first statewide clinical data warehouse in 2013. The online system features patient health records from the state’s largest health care systems and gives researchers from three major universities access to anonymous, real-time patient data. Since 2006, Health Sciences South Carolina has received more than $32 million from The Duke Endowment.

Valuable Resources

For information about grant writing, funding opportunities and other topics related to philanthropy, the Foundation Center Funding Information Network at Charlotte Mecklenburg Library is the place to go. A three-year, $60,000 grant from The Duke Endowment expanded the network in 2013 to include access at the library’s regional centers as well as the Main Library, which has housed the collection since 2006.

Training Ground

How do you harness the power of social media? What’s the best way to work with reporters? How can staff members help deliver your message? Those questions and more were covered in six months of grantee communications training coordinated by the North Carolina Network of Grantmakers and funded by The Duke Endowment and five other N.C. foundations. The pilot effort, which included three Endowment grantees, offered individualized coaching and webinars from GYMR Public Relations.

Center Stage

After two years of construction, a renovated Baldwin Auditorium is winning rave reviews at Duke University. Built in 1927, the iconic structure has been transformed into a state-of-the-art concert venue with improved acoustics, comfortable and accessible seating and a wrap-around balcony. The $15 million project was funded by The Duke Endowment as part of an $80 million grant to the university.

Promise for the Future

When The Duke Endowment joined other public and private partners to address maternal and child health challenges in the Carolinas, they recognized that North Carolina and South Carolina needed a proven intervention to change birth outcomes and help more families break the cycle of poverty. They decided to invest in Nurse-Family Partnership, a nationally recognized, evidence-based nurse home visitation program that helps first-time, low-income mothers. In 2008, the Carolinas had just one NFP site. Today, the program has grown into a thriving network across the two states, serving more than 2,000 families in 50 counties on any given day.

Just a Click Away

Please visit our redesigned website! We unveiled the new look in 2013, using two years of Google analytics to show us what visitors wanted from our site. The new is easier to access on your desktop or mobile device, and features grantee stories, current news and expanded information from our four program areas. There’s also a more robust section on Evaluation.

Expanding Rural

When Mr. Duke wanted United Methodist churches in rural North Carolina to benefit from his philanthropy, he limited “rural” to less than 1,500 people. In the 1920s, that covered most Methodist churches in the state. Today, with North Carolina’s population at 9.5 million, our Trustees believed it was important to expand our reach. The Endowment’s Rural Church program area is now using a method developed by the U.S. Department of Agriculture called Rural-Urban Commuting Area codes – or “RUCA” – as an additional way to determine if a church is eligible for funding. 

Strengthening Families

Across the globe, the Strengthening Families training program is preventing child abuse and neglect by equipping parents and children with important skills. Outcomes include increased family resilience and reduced risk factors for problem behaviors in children. The Children’s Trust of South Carolina, the S.C. Department of Social Services and The Duke Endowment are now working together to bring the program to 10 communities in South Carolina. Along with Federal dollars, a $1.5 million grant from the Endowment is supporting the effort.




Guiding Principles




Eugene W. Cochrane Jr.


Arthur E. Morehead IV

Vice President/General Counsel

Susan L. McConnell

Director of Education/
Director of Human Resources

Terri W. Honeycutt

Corporate Secretary

Carolyn M. Duff

Director of Payroll and Benefits

Laura A. Peres


Tania G. Mapes

Senior Administrative Specialist

Todd W. Dalrymple


Christina H. Strader


Child Care

Rhett N. Mabry

Vice President

Phillip H. Redmond Jr.

Associate Director

Tamika D. Williams

Program Officer

Marilyn H. MacKenzie

Senior Administrative Specialist


Charity L. Perkins


Jeri F. Krentz

Associate Director

Diana Zilberdrut

Project Specialist

Higher Education

Susan L. McConnell

Director of Education,
Director of Human Resources


William F. Bacon


Janet B. Haas

Senior Administrative Specialist


Karen H. Rogers


Lily H. Zhang


Anita W. West

Accounting Manager

Melinda O. Hardin

Accounting Specialist

Natalie C. W. Smith

Financial Analyst

Health Care

Mary L. Piepenbring

Vice President

Linwood B. Hollowell III

Associate Director

Meka S. Sales

Program Officer

Ronda S. Dwyer

Senior Administrative Specialist

Ashleigh J. Allessio

Senior Administrative Specialist

Nancy L. Edwards

Administrative Specialist

Information Technology

Matthew D. Sharp



K. Todd Walker

Managing Director

Diana Zilberdrut

Project Specialist

Office Services

Paula W. Greene

Office Services Coordinator

Toni M. Roof


Eric D. Stevens

Administrative Specialist

Rural Church

Robert R. Webb III


Kristen R. Richardson-Frick

Program Officer

Trena McClure

Senior Administrative Specialist


Minor M. Shaw


Greenville, S.C.

Dennis M. Campbell, Ph.D.

Vice Chair

Woodberry Forest, Va.

Mary D.T. Jones

Vice Chair

Abingdon, Va.

William G. Anlyan, M.D.

Durham, N.C.

William Barnet III

Spartanburg, S.C.

Ravenel B. Curry III

New York, N.Y.

Harris E. DeLoach Jr.

Hartsville, S.C.

Constance F. Gray

Winston-Salem, N.C.

Thomas S. Kenan III

Chapel Hill, N.C.

Charles C. Lucas III

Charlotte, N.C.

Wilhelmina M. Reuben-Cooke

Fairfax Station, Va.

Russell M. Robinson II

Charlotte, N.C.

Jean G. Spaulding, M.D.

Durham, N.C.

Kenneth D. Weeks Jr., M.D.

Charlotte, N.C.

Judy Woodruff

Washington, D.C.

Guiding Principles

Follow James B. Duke’s philanthropic intent

using the discretion he gave us to address current circumstances and emerging issues.

Maintain a commitment to the Carolinas

through grantmaking that strengthens organizations, replicates successful programs and tests innovative approaches.

Direct resources where they will produce the best results

and hold ourselves and our grantees accountable for achieving them.

Provide ethical leadership

by seeking diverse opinions, fostering new ideas and strategies, and taking appropriate risks.

Build effective relationships with grantees

by listening with respect and understanding, learning about their communities and challenges and working together to identify potential solutions.

Create opportunities to share information

about successes, failures and lessons learned.