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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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED Platinum-certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $10,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CENTER FOR CHILDREN’S ENVIRONMENTAL HEALTH $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED Platinum - certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to NRTA for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5,719 visitors throughout the 2008 season. Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Change in net assets Net assets, unresctricted, beginning of period Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. AS OF JANUARY 2010 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED Platinum-certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $10,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CENTER FOR CHILDREN’S ENVIRONMENTAL HEALTH $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED Platinum - certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to NRTA for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5,719 visitors throughout the 2008 season. Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Change in net assets Net assets, unresctricted, beginning of period Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. AS OF JANUARY 2010 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED Platinum-certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CENTER FOR CHILDREN’S ENVIRONMENTAL HEALTH $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED Platinum - certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to NRTA for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5,719 visitors throughout the 2008 season. Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Change in net assets Net assets, unresctricted, beginning of period Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. AS OF JANUARY 2010 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED Platinum-certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $10,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CENTER FOR CHILDREN’S ENVIRONMENTAL HEALTH $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED Platinum - certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to NRTA for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5,719 visitors throughout the 2008 season. Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Change in net assets Net assets, unresctricted, beginning of period Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. AS OF JANUARY 2010 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year, bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we renewed our relationship with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. We were eager to promote these alliances as a way forward. To that end, we partnered with the Commonwealth Club and brought Green for All CEO Van Jones and California State Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’ The News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their efforts in bringing environmental science and commentary to a younger audience. With the opening of the new LEED Platinum-certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. We were proud to support this exhibit since its inception and look forward to its evolution. Always looking for the fresh perspective, Sarah Bell joined us as our second dedicated staff in her role as Communications Manager. With our increased capacity, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” 17 Wendy Schmidt President, The Schmidt Family Foundation Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. VOTE SOLAR INITIATIVE $10,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CENTER FOR CHILDREN’S ENVIRONMENTAL HEALTH $50,000 www.ccceh.org (2nd 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED Platinum - certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to NRTA for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5,719 visitors throughout the 2008 season. Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Change in net assets Net assets, unresctricted, beginning of period Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. AS OF JANUARY 2010 STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17 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. With this as our fundamental goal, we work strategically, and often in collaboration, to create successful models of our vision. This includes the restoration and protection of vulnerable historic places while improving their environmental profile, using new technologies and the growing knowledge about the impact of the built environment on the Earth’s climate system. We support efforts around the world to improve health, education, transportation and communications through investing in a pattern of economic development that includes green, sustainable environmental practices and design. T H E S C H M I D T FA M I LY FO UNDATI O N ANNUAL REPORT 2008 TA BL E OF C O NTENTS Mission Statement 03 Message From the President 04 Message From the President of the 11th Hour Project 05 2008 Grants 06 The 11th Hour Project Program Activities 12 Greenhound Program Activities 13 2008 Financial Statements 15 Foundation Leadership message “No problem can be solved from the same level of consciousness that created it.” – Albert Einstein 2008 grants 2008 grants MESSAGE FROM THE PRESIDENT OF THE 11TH HOUR PROJECT THE SCHMIDT FAMILY FOUNDATION THE SOPHIE EMERSON SCHMIDT CHARITABLE FUND THE 11TH HOUR PROJECT [continued] This year, the Foundation deepened its relationships with a number of dynamic organizations which are leaders in public education on energy and climate. These include journalists filming how most of today’s energy is really made and paid for – and by whom – and journalists working closely with scientists to accurately convey – in print and video – climate science in plain English. They include a LEED Platinum level science museum in San Francisco wishing to display their regional story of climate change impact, and experts in clean energy development, distribution and policy. Other grantees, associated with major universities, are conveners of government/thought leaders looking to address state and national level policies on mitigating and adapting to a changing climate. In 2008, The 11th Hour Project completed its third year of bringing high quality messaging about climate change to diverse audiences. Continuing our tradition of forging new and unexpected alliances, we have also continued to expand our outreach to new audiences and were delighted to partner with diverse groups such as The Regeneration Project, Green for All, and Energy Action Coalition. ALLIANCE FOR CLIMATE PROTECTION $1,000,000 www.climateprotect.org Menlo Park, CA For the support of education and communication on climate change. RWANDA COMMUNITY WORKS $500,423 www.rwandacommunityworks.org (1st of 3 year) Rwanda To fund construction of new health centers in the Gashora sector in Rwanda's Bugesera district. GREENPEACE FUND $100,000 www.greenpeace.org Washington, D.C. For Project Hot Seat, a campaign to educate congressional leaders about climate change and to create grassroots support for strong climate legislation. Recognizing the power of high quality messaging combined with rigorous science, we were proud to support the launch of Climate Central and their first production for PBS’s News Hour with Jim Lehrer, Montana: Trout and Drought. We look forward to much more from this dynamic organization. We welcomed Grist as a new grantee and proudly supported their continued evolution in bringing environmental news and commentary to a younger audience. In bringing Van Jones and Senator Darrell Steinberg together for an evening of conversation on the future of green jobs in California, we found an outstanding partner in The Commonwealth Club. With the opening of the new LEED certified California Academy of Sciences building, thousands of visitors interacted with the highly acclaimed “Altered States” exhibit on climate change. We were proud to support this exhibit from its inception and look forward to its evolution. Always looking for the fresh perspective, we looked at our own messaging and updated our website to reflect the evolving dialogue on climate change awareness and solutions. NATURAL RESOURCES DEFENSE COUNCIL $1,000,000 www.nrdc.org (2nd of 5 year/ $5 million) New York, NY For the support of communication about international and domestic environmental priorities. THE 11TH HOUR PROJECT FRACTURED ATLAS $75,000 www.fracturedatlas.org New York, NY For production of the "Bible and Earth" documentary, to promote environmental stewardship to evangelical audiences. Ultimately, all our grantees are fostering the new paradigm we want to encourage: a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. We encourage a transformation of human understanding, based on increasing scientifically measurable evidence, of our physical and moral connection to the planet that sustains us. 17 Wendy Schmidt President, The Schmidt Family Foundation This past year brought many extreme changes to the United States and to the world. From the inspiring election of Barack Obama as President to the far reaching collapse of a global financial system, 2008 has become a year for reflection. During this critical time, we realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. We realize the imperative need to rebrand the climate crisis as an unprecedented opportunity for the advancement and empowerment of all people. By approaching the multitude of problems we now face with a holistic mindset, we realize that the path to a prosperous and sustainable economy follows the path of an energy revolution – one in which renewables such as wind and solar energy power our lives. We will continue to cultivate new partnerships, deepen existing relationships and strive to view 2009 as a year of opportunity. As Donella Meadows always said, “We have exactly enough time, starting now.” Amy Rao President, The 11th Hour Project 04 CLIMATE CENTRAL $1,250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. NANTUCKET DREAMLAND FOUNDATION $1,000,000 www.nantucketdreamland.org Nantucket, MA To fund the restoration of the Dreamland Theatre in downtown Nantucket. THE ENERGY FOUNDATION $500,000 www.ef.org (Final of 3 year/ $1,500,000) 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. 05 FOUNDATION FOR ENVIRONMENTAL RESEARCH $1,250,000 (Fiscal sponsor for Climate Central Inc.) www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. CLIMATE CENTRAL INC. $250,000 www.climatecentral.org Princeton, NJ General operating support to launch a new group of scientists and communicators to develop honest, nonpartisan, and up-to-date information to help people make sound decisions about climate and energy. 2008 grants activities SCHWAB CHARITABLE GIFT FUND [continued] SCHWAB CHARITABLE GIFT FUND [continued] THE 11TH HOUR PROJECT PROGRAM ACTIVITIES GRIST $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. THE ENERGY AND RESOURCES INSTITUTE, NORTH AMERICA www.terina.org $30,000 Washington, D.C. For the Lighting a Billion Lives Campaign to distribute solar powered lanterns to villages in India. In 2008, The 11th Hour Project continued to support efforts to deliver highquality messaging to a wide range of audiences. By supporting the networks of The Regeneration Project, Green for All, and Energy Action Coalition, we saw powerful messaging on climate change solutions preached from the pulpit, across college campuses, and throughout struggling neighborhoods faced with the greatest health impacts of our fossil fuels based economy. EARTH ISLAND INSTITUTE $100,000 (Fiscal sponsor for Energy Action Coalition) www.climatechallenge.org San Francisco, CA For the Campus Climate Challenge, a project that leverages the power of young people to organize on college campuses and high schools across Canada and the US to win 100% Clean Energy policies at their schools. SUSTAINABLE NANTUCKET DEVELOPMENT CORPORATION www.sustainablenantucket.org $25,000 Nantucket, MA To facilitate the focused and strategic development of Sustainable Nantucket as well as raise awareness of the organization in the community. We continued to focus on engaging and targeted communications work to help deliver positive and potent messages about climate change. We found a new partner with Grist.org and look forward to their continued expansion in bringing environmental news and commentary to a younger audience. We were proud to found the creation, along with Jane Lubchenco and Stephen Pacala, of Climate Central, an organization dedicated to delivering vibrant media using sound science. Their first production, Montana: Trout and Drought, aired on PBS’ The News Hour in October 2008. By supporting the Alliance for Climate Protection, we saw the creation of a pioneering media campaign on climate solutions reach print, television, and online audiences. SAN DIEGO FOUNDATION $50,000 (Fiscal sponsor for Green Cities California) www.greencitiescalifornia.org For 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. NATURAL CAPITAL INSTITUTE $250,000 (Fiscal sponsor for Green For All) www.greenforall.org Oakland, CA To support the further development of Green for All’s online presence and their mission to build an inclusive green economy strong enough to lift people out of poverty. VOTE SOLAR INITIATIVE $15,000 $15,000 www.votesolar.org San Francisco, CA To support the transition to a renewable energy economy at the local, state and national level. YALE UNIVERSITY $140,000 New Haven, CT For the Yale 2008 Conference of Governors on Climate Change ($40,000), and the US Climate Change Target Audiences Project ($100,000). 2008 grants SCHWAB CHARITABLE GIFT FUND In 2007, The Schmidt Family Foundation granted $4.5 million to the Schwab Charitable Gift Fund. In 2008, The Schmidt Family Foundation recommended the following projects to the Schwab Charitable Gift Fund for consideration and ultimate support. NATURAL RESOURCES DEFENSE COUNCIL $25,000 www.nrdc.org New York, NY For a television series to raise public awareness in China about greenhouse gas emissions and communicate solutions to climate change, at a national and individual level. CENTER FOR INVESTIGATIVE REPORTING $500,000 www.centerforinvestigativereporting.org (Final of 2 year/ $700,000) Berkeley, CA For production of a documentary exploring the on the ground effects of coal mining, and efforts by industry to promote clean coal technologies. GLOBAL HERITAGE FUND $500,000 www.globalheritagefund.org Palo Alto, CA For planning and community development to build a sustainable model for the world’s endangered cultural heritage sites. 2008 grants COMMONWEALTH CLUB OF CALIFORNIA $68,703 www.commonwealthclub.org San Francisco, CA For support of the Climate One Initiative to engage audiences and foster dialogue on the emerging green economy. CALIFORNIA ACADEMY OF SCIENCES $500,000 www.calacademy.org (Final of 2 year/ $1,000,000) San Francisco, CA For the climate change exhibit, “Altered State,” developed for the new LEED Platinum-certified Academy building in Golden Gate Park. COLUMBIA CHILDREN ENVIRONMENTAL HEALTH STUDY $50,000 www.ccceh.org (1st 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. To bluer skies, 03 2008 grants MESSAGE FROM THE PRESIDENT Others we support are demonstrating the power of small communities, in the U.S. and abroad, to drive significant local change that improves the quality of life for local people and others far distant, in the countless networks to which they are also attached. The health of a child in rural China or in the American Grainbelt is intimately connected to the industrial patterns of resource use and energy production we have inherited from a century ago. The world’s economy already suffers from the prospect of the future these patterns have created. We believe we can help bring our collective resources together to design a better, more sustainable outcome. In addition, we support public education around issues of energy and the environment and promote public understanding of the science of climate change. Among the world’s poorest populations, the Foundation works to improve their future prospects in the world economy, using the latest tools of communication. message As a result of continued search for new models of communication in this dynamic landscape, the Story of Stuff Project joined us as a grantee this year. This 20 minute film has reached across political and socioeconomic spectrums, from elementary schools all the way to retirement communities.With over 5 million views in the 11 months since its launch, this systematic look at the materials lifecycle and our place within it provides a fresh perspective with a powerful reach. TIDES CENTER $50,000 (Fiscal sponsor for The Story of Stuff Project) www.storyofstuff.com Berkeley, CA For organizational development and capacity building to increase the reach of the Story of Stuff Project and their efforts to connect our daily choices to the greater environmental, social, and economic narrative. THE REGENERATION PROJECT $250,000 www.theregenerationproject.org San Francisco, CA For organizational development and capacity building, and to strengthen the connection between ecology and faith. activities 11th Hour Team Joe Sciortino, Erin Strain, Wendy Schmidt, Amy Rao and Sarah Bell “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 Turning our focus to California, we saw the completion of the LEED certified California Academy of Sciences building in which thousands of visitors interacted with the highly acclaimed “Altered State” exhibit on climate change. This effort builds on the public’s trust in scientists as a voice of credibility and authority. We also sponsored an event with NOAA and the Gulf of the Farallones National Marine Sanctuary that brought together major actors on Bay Area water issues to discuss the impending changes to the San Francisco Bay due to climate change. activities Continuing this spirit of collaboration, we have also planted a seed for 2009 in our new grantee, Green Cities California. We anticipate that their model of cities providing progressive environmental legislative resources for other cities will lead to greater impact and stronger partnerships between local communities. While much discussion amongst funders focuses on the need for federal climate policy, we recognize that the implementation of policy by local and state governments can make the difference on the ground. Like the Story of Stuff Project, Green Cities California taps into the power of the internet to quickly and efficiently disseminate vital information. For the 2008 summer season, the vacant lot at 12 Washington Street was made available to the Nantucket Regional Transportation Authority (NRTA) for use as a bus stop. NRTA and the Town’s Planning Department have envisioned a transportation facility in this location that would eventually accommodate seven of NRTA’s 9 bus routes using a combination of the Greenhound property and adjacent Town land, thereby eliminating the need to have bus stops along the Washington Street sidewalk and creating a more convenient system for riders. To this end, the Town made slight alterations to the curbs, provided striping to delineate bus lanes and benches for waiting passengers. NRTA operated the Surfside Beach and Airport bus routes from the property beginning in late June through Labor Day. Greenhound added benches and bike racks to the site and cosponsored with NRTA and Visitors Service a “Do the Ride Thing” promotion of public transportation, as well as the national “dump the pump” initiative. Statistics for the summer reflected an almost 7% increase in ridership over 2007. Since the launch of 11th Hour in 2006, we have seen awareness on climate change sky-rocket and the conversation quickly shift to solutions. As we look forward to 2009, we feel this is the story that must be told – one of empowerment and engagement through innovative solutions and collaboration. As a movement, we are writing a new operating system for the earth and humanity. We are proud to support this unique moment in history. Greenhound began work with NRTA and engineering consultants in the fall of 2008 to plan for improved use of this property by increasing the number of routes on, and therefore buses that leave from, the site. GREENHOUND PROGRAM ACTIVITIES Greenhound LLC completed its first full year of activity in 2008 and made tangible progress towards developing a better seasonal bus system by working in partnership with the Town of Nantucket and the Nantucket Regional Transportation Authority (NRTA). Our goal is to reduce traffic congestion in the historic downtown streets, increase ridership, and offer Islanders and visitors alike an attractive transportation alternative to private automobiles. The Foundation hopes that ultimately, the system will become a zero-emission operation that will serve as a model for other mass transit providers. To expand the idea of a private/public partnership between Greenhound and the Town, Greenhound subsidized the opening of a satellite visitors’ services center on the property. Nantucket Visitors Service (NVS), an existing Town department, provides information about accommodations, restaurants, historic sites, bike paths and bus routes. The Visitors Service annex at the Greenhound building was open from 9 am to 5 pm, Wednesday to Saturday, from Memorial Day through mid-September, and answered questions and provided information to 5719 visitors throughout the 2008 season. During the spring of 2008, the former liquor store building at 10 Washington Street was cosmetically renovated to make it suitable for use by the public and Greenhound used simple “green” strategies in undertaking those renovations. Greenhound’s messaging within the building sought to educate the public regarding the green renovation techniques that were used, and to encourage residents and visitors to “Explore Nantucket gently, on foot, by bike and by bus”. An open white board invited public commentary on a variety of different energy and transportation related issues over the summer. 2008 financials “And after they had explored all of the stars in the universe and all of the planets around each sun they realized they were alone, and they were glad, for they now realized that they would have to become all of the things they had hoped to find.” – Lanford Wilson 2008 financials STATEMENT OF FINANCIAL POSITION $ 154,308,659 $ 223,350,447 LIABILITIES & NET ASSETS Accounts payable Accrued liabilities Tenant improvement allowance Grants payable DEC 31, 2008 $ 147,867 215,238 30,000 3,902,693 DEC 31, 2007 $ 172,564 102,633 5,366,275 Total liabilities and net assets 4,295,798 150,012,861 $ 154,308,659 FOR THE YEAR ENDED DEC 31, 2008 DEC 31, 2007 $ 3,725,155 214,439,482 1,284,928 129,879 600 3,770,403 Total assets Net assets - unrestricted AS OF JANUARY 2010 BOARD OF DIRECTORS Wendy Schmidt Eric Schmidt Sophie Schmidt STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS ASSETS DEC 31, 2008 Cash and cash equivalents $ 33,157,170 Investments 114,795,285 Investment related receivables 274,249 Investment related prepaids Program-related investment loan receivable, net 1,931,217 Prepaid excise tax 260,938 Deposits 29,200 Property and equipment 3,860,600 Total liabilities foundation leadership REVENUE AND OTHER SUPPORT Contributions $ 35,936 Net realized & unrealized gain on investments (63,701,607) Dividend and interest income 4,108,120 Contributed facilities and services 58,471 Rental income 11,710 Total revenue and support Investment related expenses Federal excise tax Net revenue and other support 5,641,472 (59,415,370) FOR THE ELEVEN MONTHS ENDED DEC 31, 2007 $ 143,469,165 1,384,410 4,467,508 82,994 - STAFF Wendy Schmidt President Eric Schmidt Vice President 149,404,077 (306,225) 286,171 (186,768) (1,486,811) (59,435,424) 147,730,498 Joe Sciortino Executive Director Shally Shanker VP, Investments Scott Olle Director of Investments EXPENSES Program services - grants awarded Program services - other Program services - contributed travel Management and general 5,764,044 1,813,166 39,900 643,580 7,725,553 880,291 36,494 97,666 Total expenses 8,260,690 8,740,004 (67,696,114) 138,990,494 William J. Arthur Secretary Jeanne Huey Chief Financial Officer 217,708,975 Net assets, unresctricted, beginning of period Consistent with Greenhound’s desire to collaborate with existing non-profit organizations, the Greenhound building served as a ticket office for the Nantucket Film Festival in June, merchandise storage for Nantucket Race Week to benefit Nantucket Community Sailing in August, and an outlet for pamphlet distribution and event advertising for many other groups throughout the summer. Net assets, unresctricted, end of period 217,708,975 78,718,481 $ 150,012,861 $ 217,708,975 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 $ 223,350,447 Change in net assets INVESTMENT COMMITTEE Eric Schmidt Committee Chair Jennifer Huang Controller Gladys Gunaratne Senior Accountant AUDIT COMMITTEE George Vera Committee Chair Teling Peterson 06 07 08 09 10 11 12 13 14 15 16 17