Ride's not over but the end is closer; long-term view serves NCCF well

Down 37, up 26.5 – the S&P 500 Index for 2008 and 2009 keenly illustrates the financial markets like a rollercoaster at the State Fair. Though Q4 ‘08 and Q1 ‘09 appeared the end for the financial markets, the crisis was averted and the markets roared back.  But there’s still work to do, and what does 2010 hold in store?  If January and February are any indicator, the rebound will be more of the slow and steady variety. Though the recession ended last summer, the economy remains fragile, tight credit and tenuous job growth.  However, as we stand at the one-year anniversary of the equity market lows, the outlook is indeed much, much brighter than a year ago. 

Thankfully, the market rebound of 2009 conformed to the behavior of historical bear markets (declines of greater than 20%), recovering a major portion of the decline in the first year. The average second-year return of the S&P 500 over the past nine bear markets is 12%.  With the questions facing this recovery though, 12% appears optimistic for 2010.  But there are many positives – corporate cost control, increased productivity, innovation, returning sentiment, which all point to a positive year for equities.   

Still, our focus is not on one year. It’s not five or ten.  Philanthropic investing has an extremely long-term perspective, longer than personal investing, longer than retirement investing.  And this long-term view confirms the need for and benefits of equity in the portfolio.  Our recent market experience has only reinforced the Foundation’s investment strategy – a diverse, moderate asset allocation is essential for philanthropic investing.  Through this moderate allocation we will preserve historical value, maintain grant effectiveness and ultimately build the endowments for future good.

So how are things going, really??

When people ask, “So, how are things going?”  --  I realize that they usually aren’t truly inquiring about me. They want to know HOW THINGS ARE GOING philanthropically speaking.  What they’re asking is: Are you seeing any upturn in giving?  Are you seeing good things happening?  Are donations increasing?  Any signs that we can hold on to that things are beginning to turn around?  Often a community foundation is a real barometer for the economic environment and general well being of how folks are feeling. Many are asking us to test the wind, hold up a mirror and to provide some good news for what has been a pretty bleak time.

If you know me, you know that I am an optimistic realist.  And what I tell folks who ask, (and even some who don’t!) is that we are seeing signs that things are getting better in North Carolina. Often, difficult times provide us an opportunity to refocus our efforts on what is truly important, to push us to get involved in ways that we may not have been before and to remind us of our empathy for our neighbors.   

Too many of my friends and neighbors are out of work.  We have rural communities who are struggling to gain a foothold in our changing economic environment. We still are facing most of the same issues and more than we were a year ago in North Carolina. But what we’re also seeing now is lack of complacency. We’re witnessing renewed involvement and energy and a true generosity of spirit.

Our donors are asking more questions -- of us and of grantees -- and many of those questions are focused on impact.  The recession has made the environment much more competitive, but has also provided an opportunity for each of us to decide what issues are truly important to us. Often those are the ones we believe are making an impact.  We are seeing more collaborative giving through giving circles and leveraging of gifts.  We are seeing partnerships spring up in new ways and in new places.

If you know me, you know that I love my job.  And what I love most of all are the people I get to meet and talk to. That is where I get my energy: from engaging with our donors and volunteers and learning about their interests and their passion and all the good stuff that is happening, right here in our communities.

I look forward to meeting with you and exchanging ideas through this blog -- and in person. 

Introducing Many Voices

Welcome to Many Voices, the introduction and first installment of the NCCF’s blog. In this space you will hear regularly from our CEO Jennifer Tolle Whiteside, who always has something interesting to say and share about what she’s observed about philanthropy throughout North Carolina and beyond. She has asked to share the dialogue with several others on our team, who will each provide a unique perspective based on their particular areas of expertise. It was her idea to name our blog Many Voices because we want this space to be a conversation with you and channel the diverse and many viewpoints we represent across the state. 

In this space, you will also meet:

• Beth Boney Jenkins, VP of Affiliate Services, who manages our development staff statewide and has witnessed the power of endowed giving throughout North Carolina; 
• Peggy Birkemeier, Leslie Stewart and Patricia Lawler, all members of the development team, who not only represent different geographies but ideas as well;
• John Hartley, our Director of Finance, who has keen insight on the markets and our investment portfolio;
• Carrie Gray, Director of Donor Engagement, who is always engaging if not informative about giving, granting and the NCCF’s program areas;
• Noël McLaughlin, Director of Marketing and Communications, who like all of her ilk is never at a loss for words.

We can’t wait to get the conversation started… 

The NCCF Blogging Team

                           
Jennifer                   Carrie                       Beth                        John

                           
Peggy                      Leslie                       Noel                        Patricia