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T H E S C H M I D T FAM I LY FO UNDATI O N
ANNUAL REPORT 2009
TAB LE O F CO NTE NTS
Mission Statement
03
Message From the President
04
Message From the President
of The 11th Hour Project
05
2009 Grants
06
The 11th Hour Project Program Activities
13
Greenhound Program Activities
17
2009 Financial Statements
19
Foundation Leadership
21
our mission
The Schmidt Family Foundation supports efforts, using best expert information,
to help transform the world’s environmental and energy practices in the 21st
century. Our mission, at its broadest, is to advance the creation of an increasingly
intelligent relationship between human activity and the use of the world’s
natural resources.
We bring philanthropic resources to bear on some of this century’s greatest
challenges across the globe. Applying new knowledge and innovation is our
model for problem solving and for advancing original research in science,
energy and the sustainability of the world’s biosphere.
“No problem can be
solved from the same
level of consciousness
that created it.”
– Albert Einstein
03
message
MESSAGE FROM THE PRESIDENT
We live in a world of networks, where every interaction influences the next,
and is enabled by those preceding it – in a complex web of interconnected
relationships.
At The Schmidt Family Foundation, we believe in the power of networks to
create positive change, and foster this dynamic force as our grantees work on
projects from a local to an international scale, each helping to restore a balance
between human, industrial, and natural systems. In the United States and
abroad, we support local efforts to create the infrastructure needed for a more
resilient world.
Much like a self-correcting ecosystem, the Foundation continues to shape our
mission to adjust to the urgent needs of the times. This year, The 11th Hour
Project recognized the need to envision a renewed mission statement to best
reflect its funding philosophy. In 2010, we will launch a new program in
ecological agricultural and food systems, to address the growing dislocation
between people and the source of our sustenance.
Looking back over the year, and the many events we have witnessed across
the world, we believe there is a new conversation arising that questions the
presumption of unlimited growth in a world of finite resources, and seeks
instead to develop a paradigm based on the regeneration of materials and
resources. As our grantees continue to build a new narrative about ecology
and economy, we want to participate in the evolution of their thinking, and
look forward to strengthening our network of partners in the year to come.
We believe in the power
of networks to create
positive change, and
foster this dynamic force
as our grantees work on
projects from a local to
an international scale,
each helping to restore a
balance between human,
industrial, and natural
Wendy Schmidt
President, The Schmidt Family Foundation
systems.
04
message
MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT
This year brought reflection and upheaval on both the macro and micro level.
As a nation, we ached for a different direction and sought new leadership at
every level of government. In communities across America, households tightened their expenses and braced themselves for the turbulent waters of a recession
caused by a global financial market collapse. As an organization, we heeded
these actions as a call for deep systemic change and formalized this thinking
within a new mission statement heralding the interdependence of both human
and natural systems. Our energy, food and water issues cannot be solved in
isolation, but must work in concert with each other to reach the best outcomes
over the longest term.
In reflecting back on 2009 and the progress and failures that we as a community
have witnessed, I am encouraged by the innovative spark that continues to shine
in the work of our partners. From the halls of Congress to the neighborhoods
of Portland, Oregon all the way to the farthest reaches of the oceans, the inspired
work of so many individuals and organizations forges ahead to challenge
conventional systems that hold us back and beckon for a reboot. We shall not
be discouraged, but rather turn our attention to the continued evolution of
thought and practice as we strive to create a more resilient and just society.
To bluer skies,
Amy Rao
President, The 11th Hour Project
Our energy, food and
water issues cannot
be solved in isolation,
but must work in
concert with each
other to reach the
best outcomes over
the longest term.
05
2009 grants
THE SCHMIDT FAMILY FOUNDATION
MARINE SCIENCE AND TECHNOLOGY FOUNDATION $4,800,000
www.mstfoundation.org
Palo Alto, CA
For organizational capacity building related to increasing our understanding of
the world's oceans through research and technology development.
SCHMIDT RESEARCH VESSEL INSTITUTE
$4,009,163
www.srvi.org
Palo Alto, CA
For organizational capacity building related to advancing ocean exploration,
discovery and knowledge sharing.
NATURAL RESOURCES DEFENSE COUNCIL
$1,000,000
www.nrdc.org
(3rd of 5 year/ $5 million)
New York, NY
For the support of communication about international and domestic environmental priorities.
COLUMBIA CENTER FOR CHILDREN’S
ENVIRONMENTAL HEALTH
$50,000
www.ccceh.org
(3rd of 3 year/$150,000)
New York, NY
For a longitudinal study of health risks to mothers and children from environmental pollutants generated by coal-fired power plants in China.
OTHER SPONSORSHIPS
For sponsorship of various events.
$30,000
06
2009 grants
THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND
RWANDA COMMUNITY WORKS
$500,000
www.rwandacommunityworks.org
(2nd of 3 year/ $1,500,000)
Rwanda
To fund construction of new health centers in the Gashora sector in Rwanda's
Bugesera district.
ORPHANS OF RWANDA
$100,000
www.orphansofrwanda.org
(1st of 3 year/ $300,000)
Rwanda
To fund core scholarship costs for 31 university students for the first three years of
their university education.
THE 11TH HOUR PROJECT
THE ALLIANCE FOR CLIMATE PROTECTION
$1,000,000
www.climateprotect.org
Menlo Park, CA
For the support of education and communication on climate change.
THE ENERGY FOUNDATION
$500,000
www.ef.org
San Francisco, CA
For the advancement of clean energy technologies as a means of reducing global
warming and pollution in the United States and China.
THE REGENERATION PROJECT
$280,000
www.theregenerationproject.org
San Francisco, CA
For organizational development and capacity building, and to strengthen the
connection between ecology and faith.
07
2009 grants
THE 11TH HOUR PROJECT [continued]
GREEN FOR ALL
$250,000
www.greenforall.org
Oakland, CA
To support the building of a green economy, strengthening of local infrastructure,
and growing a movement to promote green jobs and the environment.
GRIST.org
$200,000
www.grist.org
Seattle, WA
For the support of Grist’s informative yet irreverent news and commentary on
climate change science and solutions dedicated to reaching a younger audience.
ROCKY MOUNTAIN INSTITUTE
$200,000
www.rmi.org
(1st of 2 year/ $400,000)
Snowmass, CO
To support the interdisciplinary research at Rocky Mountain Institute and to
foster the efficient and restorative use of resources to make the world secure, just,
prosperous, and life-sustaining.
YALE UNIVERSITY
research.yale.edu/environment/climate
New Haven, CT
To support the US Climate Change Target Audiences project.
$200,000
SOLAR ONE
$150,000
www.solar1.org
New York, NY
To support the visualization of the Solar 2 building through the drafting of the
Solar 2 construction documents.
08
2009 grants
THE 11TH HOUR PROJECT [continued]
CLIMATE CENTRAL
$100,000
www.climatecentral.org
Princeton, NJ
General operating support to develop honest, nonpartisan, and up-to-date information to help people make scientifically sound decisions about climate and energy.
TIDES FOUNDATION
$100,000
(Fiscal sponsor for Tar Sands Project)
www.dirtyoilsands.org
San Francisco, CA
For the campaign to reduce development of high-carbon tar sands fuels in Canada.
SAILORS FOR THE SEA
$75,000
www.sailorsforthesea.org
Newport, RI
To support outreach work on ocean conservation and related climate change
impacts.
SAN FRANCISCO FILM SOCIETY
$50,000
www.sffs.org
San Francisco, CA
To support the production and distribution of the film Connected: A Declaration
of Independence.
ASIA SOCIETY
$45,000
www.asiasociety.org
New York, NY
To support the "Rivers of Ice,Vanishing Glaciers of the Greater Himalaya"
exhibit.
09
2009 grants
THE 11TH HOUR PROJECT [continued]
CENTER FOR INVESTIGATIVE REPORTING
$35,000
www.centerforinvestigativereporting.org
Berkeley, CA
To fund the production and distribution of “Dirty Business” exploring the on the
ground effects of coal mining, and efforts by industry to promote clean coal
technologies.
SUSTAINABLE NANTUCKET
$35,000
www.sustainablenantucket.org
Nantucket, MA
To facilitate the focused and strategic development of Sustainable Nantucket as
well as raise awareness of the organization in the community.
CLEAN ECONOMY NETWORK FOUNDATION
$30,000
www.cleaneconomynetwork.org
Washington, DC
To support the launch of a new organization focused on bringing the voice of
green business into policy discussions.
CLEAN AIR-COOL PLANET
$25,000
www.cleanair-coolplanet.org
Portsmouth, NH
For review of best practices for reducing the carbon footprint of historic buildings
in New England.
GEORGE WASHINGTON UNIVERSITY
$25,000
www.planetforward.org
Washington, DC
To support the development and distribution of Planet Forward via PBS and web
outreach.
10
2009 grants
THE 11TH HOUR PROJECT [continued]
OPEN SPACE INSTITUTE
$25,000
(Fiscal sponsor for No Impact Project)
www.noimpactproject.org
New York, NY
To support the distribution and outreach of the film "No Impact Man" amongst
college students and faith groups.
TIDES FOUNDATION
$25,000
(Fiscal sponsor for Instituto Terra)
www.institutoterra.us
Aimorés, Brazil
To support the afforestation efforts by Instituto Terra in Brazil’s Rio Doce basin.
UNION OF CONCERNED SCIENTISTS
$25,000
www.ucsusa.org
Cambridge, MA
For creation of the “Consumer’s Guide to Effective Climate Choices.”
SAN DIEGO FOUNDATION
$20,000
(Fiscal sponsor for Green Cities California)
www.greencitiescalifornia.org
Mill Valley, CA
To support Green Cities California, a coalition of ten local governments, whose
mission is to take collaborative action to accelerate the implementation of sustainability policies and programs. For the development of a Master Environmental
Assessment (MEA) for single use bags.
CALIFORNIA ACADEMY OF SCIENCES
www.calacademy.org
San Francisco, CA
To support the California Academy of Sciences Nightlife series.
$15,000
11
2009 grants
THE 11TH HOUR PROJECT [continued]
PERMACULTURE RESEARCH INSTITUTE USA
$10,000
www.permacultureusa.org
Pahoa, HI
To support the Culture of Permaculture Campaign and to bring permaculture
practices around the world to a larger audience.
COLLECTIVE ROOTS
$4,000
www.collectiveroots.org
East Palo Alto, CA
To support a fellowship working to bring ecologically and locally grown food to
disadvantaged communities through garden based learning and food systems change.
12
activities
THE 11TH HOUR PROJECT PROGRAM ACTIVITIES
This past year brought many changes from the inauguration of a new President
to the EPA’s announcement that they would begin regulating CO2 emissions.
The 11th Hour Project continued to evolve in 2009 as well – retooling our
mission statement to reflect the interdependence of human systems with food,
water, and energy resources. We looked for new ways to communicate this
interdependence, and to support efforts that respect this concept, while moving
towards a sustainable way of life.
Effective Communications
Continuing our dedication to communication strategy and storytelling efforts,
The 11th Hour Project proudly supported the work of Climate Central and
Grist, two emerging voices in environmental reporting. Climate Central continues to create compelling visual imagery, making climate change science accessible to a wider audience through content distribution with PBS NewsHour,
Time, Scientific American, New York Times and elsewhere. Climate Central has
developed a unique ability to convert peer-reviewed climate science into
high-impact graphics that can convey the research effortlessly.
“Never doubt that a
small group of
thoughtful, committed
citizens can change
the world; indeed, it’s
the only thing that
ever has.”
– Margaret Mead
Grist has carved out a unique corner of the web for itself with smart, incisive
analysis of today’s environmental issues, using humor to disarm, and eventually
engage, key online demographic targets.
11th Hour expanded our support of diverse film offerings, ranging from large,
cinematic achievements like the Oceans movie to intimate stories about sustainability, such as No Impact Man. To generate interest in Oceans, 11th Hour
brought together the filmmakers and a San Francisco Bay Area audience for a
sneak preview of the film and to learn more about the dynamic journey that
took these filmmakers to all corners of the world’s oceans.
We also sponsored innovative programming with partners such as the California
Academy of Sciences, who are resetting expectations of museum programming
with their successful Nightlife events. 11th Hour curated the month of September and introduced such esteemed speakers as Annie Leonard, Sally Benson and
Dan Kammen to the twenty- and thirty-something crowds at Nightlife. For the
13
activities
THE 11TH HOUR PROJECT PROGRAM ACTIVITIES [continued]
last Nightlife event in September, we were proud to feature Orville Schell and
David Breashears from the Asia Society. We are supporting their Glacier Imaging
Research Project that is eloquently documenting the decline of the great
glaciers of Asia, jeopardizing the water supply for billions.
Besides relaying the urgent message of climate change and environmental
degradation, we also focused on positive themes of energy efficiency and
renewables. The simple value proposition of “less energy, save money” is
understood by the public, and we’re beginning to see the traditions of
conspicuous consumption lose ground. The longitudinal surveys conducted
by the Yale Project on Climate Change point to an encouraging trend:
“By more than a 2-to-1 margin, respondents said that making changes to
reduce their energy use will improve – not diminish – the quality of their lives.”
Understanding the public’s behavior and attitudes towards energy consumption
is important to informing good communications work.
We continue to seek new approaches and voices to relay these important
themes, in hopes that these efforts will resonate and spark the transformative
change we need.
Driving Change
The prolonged recession in 2009 was a potent reminder that our current
economic structure, especially its foundation in excessive consumption, was ripe
for change. One solution to reviving our economy must be to break the
economic and environmental stranglehold of fossil fuels and to develop a
diversified, distributed, renewable energy supply. We are powering a 21st
century economy with 19th century energy technology, and the time has come
for a system-wide upgrade. We continued efforts to kick-start this transformation at the federal level by supporting advocacy for climate policies through
networked organizations like Alliance for Climate Protection and The Energy
Foundation. While federal policy is crucial, we also recognized that much of
14
activities
THE 11TH HOUR PROJECT PROGRAM ACTIVITIES [continued]
the implementation rests in the hands of individual states and cities. The work
of Green for All, Green Cities California and Rocky Mountain Institute is
creating tangible solutions at the local level and we were proud to support their
work this year.
Our partner Green For All launched a new effort to scale public-private
partnerships that grow green jobs in cities across the country by designing and
implementing energy efficiency programs. Their initial model in Portland has
received nationwide attention and we anticipate this initiative will gather
momentum in the coming year.
The launch of the Green Cities California website was created by city staffers
for other cities to access and replicate the processes needed for progressive
sustainable policies. The website received widespread attention, from Governor
Schwarzenegger all the way to city officials in Ohio looking to enact a mandatory composting ordinance similar to San Francisco’s landmark legislation.
One of our new partners, Rocky Mountain Institute, launched their “Project
Get Ready” campaign, a collaboration of policymakers and technical advisers
(including General Motors, Ford and Nissan). It aims to sign up 20 cities to take
part in the effort and create a Web-based template for cities to link up with
local utilities, politicians and other stakeholders to accelerate the infrastructure
needed for plug-in electric vehicles.
Our grantee Regeneration Project, which expanded to include 5 new chapters
this year, connected the local with the global with their Carbon Covenants
campaign linking people of faith in the U.S. with congregations on the front
line of climate change. All of the projects addressed the number one source of
greenhouse gas emissions in the developing world: deforestation. From the
forests of Cambodia to Ghana, to the encroaching deserts of Cameroon, all the
way to the slopes of Kilimanjaro, these projects aligned resources in a unique
and meaningful way.
15
activities
THE 11TH HOUR PROJECT PROGRAM ACTIVITIES [continued]
Onward
Looking ahead to 2010 we are excited to begin the development of a new
program centered on food systems. Much of our work on climate has highlighted the need for increased public engagement and food presents a powerful
entry point for civic participation and systemic change. We look forward to
planting new seeds in this area next year, using our strategies of storytelling,
policy mechanisms, and grassroots efforts to drive change.
Solutions are all around us, and every one of us is being called upon to bring
those solutions into the light. The 11th Hour Project is committed to efforts
that bring us closer to a more regenerative and resilient world.
“I love people who
harness themselves,
an ox to a heavy cart,
who pull like water
buffalo, with massive
patience, who strain
in the mud and the
muck to move things
forward, who do what
has to be done, again
and again.”
– Marge Piercy
16
activities
GREENHOUND PROGRAM ACTIVITIES
In 2009, Greenhound, LLC continued to work towards its goal of reducing the
automobile congestion in downtown Nantucket by partnering with the Nantucket Regional Transit Authority (NRTA), re-engineering the use of the site
to accommodate more bus routes and investing in transit research.
The Greenhound property served as a bus stop for two of the bus routes in the
system during 2008. Although this provided some relief from the stack up of
buses on the street, it did not go far enough. An analysis of the routes by Paula
Leary, NRTA’s administrator and a redesign of the space by GPI Engineers led
to the site being reconfigured to accommodate the four longest running, both
daily and seasonally, routes.
In the fall of 2008, an Urban Land Institute Advisory Panel identified the need
for better transportation-related research on Nantucket. ReMain Nantucket
through Greenhound acted on ULI's recommendation and, in collaboration
with NRTA, developed a research program for the 2009 summer season.
Norman W. Garrick, an Associate Professor and Director of The Center for
Transportation and Urban Planning at the University of Connecticut, brought
a team of researchers to the Island three different times the summer of 2009 to
survey public attitudes towards transportation. Overall, the team gathered the
views of 742 people. At a well-attended public presentation at The Atheneum
in December 2009, Dr. Garrick praised Nantucket's seasonal bus system, said it
was reliable, clean and safe and rated highly by its users. "The existing bus
system is well-run and well-designed," said Dr. Garrick. "NRTA's system of
buses provides a solid foundation for the community as it looks at an interconnected system that includes cars, bicycles and buses."
The UConn survey and report identified strategies to increase the visibility,
viability and attractiveness of alternatives to cars, especially in the summer when
traffic congestion and parking are problems and noted that the Greenhound
Building provided one of the few “dignified” places to wait for the bus on the
Island. Greenhound continued its private/public partnerships by subsidizing
once again the satellite visitors’ services center on the property to provide
17
activities
GREENHOUND PROGRAM ACTIVITIES [continued]
information about accommodations, restaurants, historic sites, bike paths and
bus routes. During the 2009 season, NRTA joined NVS at the Greenhound,
which allowed the building to be open 7 days a week from 9:00 to 5:00 and
provided information to over 12,000 visitors throughout the 2009 season.
Consistent with its desire to collaborate with existing non-profit organizations,
Greenhound offered the use of the building to the Nantucket Community
School from September 2009 to May 2010, which allowed them to expand
their adult education programming to the daytime and to the downtown. The
Nantucket Community School provides year-round educational enrichment for
adults, and for children outside the traditional school day. Adult programs focus
on enhancing workplace skills, supporting personal interests, and encouraging
health and wellness. During the fall 2009 season, hundreds of people attended
classes, lectures and demonstrations at the Community School’s downtown
campus.
The Greenhound building also served as a ticket office and merchandise storage
for several local non-profits during the summer of 2009, and as an outlet for
pamphlet distribution and event advertising for many other groups throughout
the summer.
18
2009 financials
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
DEC 31, 2009
Cash and cash equivalents
$ 1,490,297
Investments
155,100,712
Investment related receivables
194,344
Program-related investment loan receivable, net
4,057,852
Prepaid excise tax
197,317
Property and equipment
7,921,276
DEC 31, 2008
$ 33,157,170
114,795,285
274,249
1,931,217
290,138
3,860,600
Total assets
$ 168,961,798
$ 154,308,659
LIABILITIES & NET ASSETS
Accounts payable
Accrued liabilities
Grants payable, net
DEC 31, 2009
$
5,411
457,279
2,927,065
DEC 31, 2008
$
147,867
245,238
3,902,693
3,389,755
4,295,798
165,572,043
150,012,861
$ 168,961,798
$ 154,308,659
Total liabilities
Net assets - unrestricted
Total liabilities and net assets
19
2009 financials
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
REVENUE AND OTHER SUPPORT
Contributions
Net realized & unrealized gain (loss) on investments
Dividend, interest, and other investment income
Rental and other income
Investment related expenses
Federal excise tax
FOR THE YEAR
ENDED
DEC 31, 2009
$
4,418,395
23,583,022
3,680,003
23,971
(306,645)
(347,824)
FOR THE YEAR
ENDED
DEC 31, 2008
$
94,407
(63,701,607)
4,108,120
11,710
(306,225)
286,171
Net revenue (loss) and other support
31,050,922
(59,435,424)
EXPENSES
Program services - grants awarded
Program services - direct charitable
Management and general
12,937,535
2,221,607
332,598
5,764,044
1,853,066
643,580
Total expenses
15,491,740
8,260,690
Change in net assets
15,559,182
(67,696,114)
150,012,861
217,708,975
$ 165,572,043
$ 150,012,861
Net assets, unresctricted, beginning of period
Net assets, unresctricted, end of period
20
foundation leadership
AS OF JANUARY 2010
BOARD OF DIRECTORS
Wendy Schmidt
Eric Schmidt
Sophie Schmidt
STAFF
Wendy Schmidt
President
Eric Schmidt
Vice President
Joe Sciortino
Executive Director
Shally Shanker
VP, Investments
Scott Olle
Director of Investments
William J. Arthur
Secretary
Jeanne Huey
Chief Financial Officer
INVESTMENT COMMITTEE
Eric Schmidt
Committee Chair
Donald R. Dixon
Beth Strutzel
THE 11TH HOUR PROJECT
Amy Rao
President
“We cannot live only
for ourselves. A thousand fibers connect us
with our fellow men.”
– Herman Melville
Erin Strain
Program Manager
Sarah Bell
Communications Manager
GREENHOUND, LLC
Melissa Philbrick
Executive Director
Rachel Hobart
Program Manager
Virna Gonzalez
Office/Events Coordinator
Joe Rose
Treasurer
Jennifer Huang
Controller
Gladys Gunaratne
Senior Accountant
AUDIT COMMITTEE
George Vera
Committee Chair
Teling Peterson
21