THRESHOLD FOUNDATION

is a progressive foundation and a community of individuals united through wealth, who mobilize money, people and power to create a more just, joyful and sustainable world.
2009 ANNUAL REPORT

OUR MISSION
To be a powerful and visible model of conscious, effective philanthropy. To create a fertile training ground that supports the full and authentic expression of our passions and purpose. To be a dynamic forum for learning about social issues and the people working to address them. To cultivate and continually renew the heart and soul of our community. To be a vibrant, growing and diverse multi-generational membership organization. To transform wealth into an instrument of change.

MISSION STATEMENT 2

ABOUT THRESHOLD
Threshold is a community of individuals united through wealth, and a progressive foundation mobilizing money, people and power to create a more just, joyful and sustainable world.
Threshold provides a place where people with significant financial resources, a commitment to social change and an interest in their own emotional, psychological, and spiritual development can come together to scheme, dream, learn, work, play and see what happens. We have observed that social change flows from personal growth so we work on our inner lives and social responsibility simultaneously. Threshold meetings are an ongoing experiment an evolving form designed to encourage members to discover their most meaningful work and purpose, and engage in the world from that place. Threshold Foundation serves the social change movement through collaborating with and funding innovative national and international nonprofit organizations and individuals working towards social justice, environmental sustainability, humane economic systems and peaceful coexistence. Member volunteers administer the foundation with the assistance of Tides Foundation which is located in San Francisco. Granted funds are raised annually with almost all donations coming from the membership. New members join Threshold Foundation primarily through a personal relationship with an existing member or by referral from a membership committee. Information about submitting a grant request to Threshold Foundation can be found on page 27 of this report and at www.thresholdfoundation.org.

ABOUT THRESHOLD 3

LETTER FROM THE PRESIDENT

As we move from the broad excitement and dramas of the historic past year into the reality of the devil being in the details, I would like to express my sincere appreciation to the community I belong to. Its a community that puts both equal measure of heart and mind into our giving process, as well as employing macro to micro thinking in our planning and doing. We bring all of this together to inform the whole picture, and trust in the powerful collective process that leads to our end results. Our grantmaking work is an exercise in grace and faith in each other and our community. To quote a long time grantmaking committee member grants work is sacred work, and we are privileged to be in a community that has, as one of its basic forms, this work. This past year, our two core committees, Democracy and Sustainable Planet, again took up the challenge to do our best and contribute our small part to heal our planet and support all voices to be heard in the process that we call democracy. We believe that these are fundamental issues that are ongoing and although we may change our particular strategic focus areas from year to year our fundamental belief in their importance does not change. This past year funding took into consideration the opportunities afforded us in the wake of 2008s historic election year while still keeping in mind the longer view in both creating engaged citizens of the world and the knowledge that we all share one planet. In our Funding Circle format we funded International Permaculture projects, supported the Arts for Social Change movement and continued our Gulf South funding partnership with 21st Century Foundation, one of the few national and publicly endowed Black foundations in the United States. We also had very strong support for criminal justice reform in our Restorative Justice funding circle so much so that in the 20092010 grants cycle it has moved into a focus area of our Democracy committee and the strong, focused Election Integrity arm of the Democracy committee has become a very impactful and organized new funding circle. It was an amazingly organic transition with none of the past stories of angst around similar kinds of change. I think its a sign of our growing maturity as an organization that we can move through these evolutions with the level of respect and harmony that I witnessed.

LETTER FROM THE PRESIDENT 4

2009 also featured a new format for our organizations February conference; an immersive experience of both bearing witness to and doing hands-on community service work in support of the extraordinary rebuilding efforts in New Orleans. This grew directly from our 3 year relationship with Gulf South allied funders and the personal vision of one of our long time members. It gave our community the opportunity to deepen and personalize our connection to our grants work, to the people of the lower ninth ward and delightfully and unexpectedly to each other. Another area of our work that often goes unnoticed or at least unemphasized is the care that is put into Thresholds endowment investments. The entire portfolio has a social investment focus with positive and negative screens: seventy percent is in socially screened stock, bonds, and cash with another twenty percent in Community loan funds or PRI (program related investments). During this past year of record losses across investment classes, it was especially rewarding to see our PRI investing produce such positive returns and have our values be rewarded in such a visible and concrete way. PRI was one of the only areas that had a positive return during 2008, and continued to be a strong anchor to the portfolio in 2009. The endowment also made it possible this year to extend a 20% match up to 1 million dollars to our funding pool. We saw this as a moment for Threshold as a community to model digging deep in answer to the huge call of need we saw in our sector and in our world. I extend my sincere appreciation to the endowment investment committee for all of its due diligence and stewardship. It is an important and often invisible contributor to our giving at Threshold and we appreciate it. Im always in awe of the volunteer nature of this organization. I would like to thank all of our individual volunteers and especially the volunteers who step into leadership roles within the organization. You give your time, money and support to the grants program to make it what it is. You, and our dedicated staff that supports each step of the way, make the grants program the sacred work that it is. Threshold has been described as An ongoing 28 year social experiment and that it is. It is a pleasure and surprise at each twist it takes as we attempt to see around the corners and be and produce our highest selves. Wont you join us in our journey? Michele Grennon, President, New Castle, NH, January 2010
LETTER FROM THE PRESIDENT 5

THRESHOLD FOUNDATION 2009 GRANTS LIST

Following a two-year process of change and development, Threshold launched a newly re-designed Grants Program in 2007. We established two Core Committees: Democracy and Sustainable Planet, and introduced a new philanthropic form for Threshold: Funding Circles. The Democracy and Sustainable Planet Committees are the more permanent, institutional fixtures in Thresholds philanthropic constellation. Funding Circles are authorized in a yearly charter process and remain in the foundations orbit for a more limited scope of work or length of time. For more information about current Core Committee and Funding Circle guidelines and funding criteria, please visit the Threshold Foundation website at www.thresholdfoundation.org.
GRANTS PROGRAM 6

DEMOCRACY COMMITTEE To save

our democracy we must put citizens at the center of the problem solving. We must ask, How corrupt has our system of government become? Why are Americans voting in such low numbers, especially low income people, the young, marginalized constituencies and the formerly incarcerated? In 2009, the committee supported efforts to: ensure integrity in election processes and voting equipment; maintain sustained, bottom-up models of building electoral power in historically under-represented constituencies; limit the influence of big money special interests in governmental processes so that they do not enjoy favored status or unfair access to decision makers. 2009 GRANTS$314,750

AMERICAN CIVIL LIBERTIES UNION OF WISCONSIN MILWAUKEE, WI www.aclu-wi.org

American Civil Liberties Union of Wisconsin (ACLU/WI) strives to protect and defend the civil liberties and civil rights of all Wisconsinites. $20,000 Restore the Vote WI Now coalition program
BUS PROJECT PORTLAND, OR www.busproject.org

ELECTION DEFENSE ALLIANCE / INTERNATIONAL HUMANITIES CENTER SAN PABLO, CA www.electiondefensealliance.org

Election Defense Alliance (EDA) is building a national citizen movement to expose electoral fraud and establish electoral integrity, so that governments accountable to the people are legitimately elected. It seeks to replace privatized, computerized voting machines with voter-marked paper ballots, hand-counted by citizens in the precincts, in public view, so that elections are transparent and fully accountable to the voters. $50,000 General Support for Election Defense Alliance
MAPLIGHT.ORG BERKELEY, CA www.maplight.org

Bus Project is an innovative vehicle for hands-on democracy which tours the country in a bus, mobilizing voters and hosting forums about candidates and policy issues. $29,750 Grassroots Organization Building
CENTER FOR POLITICAL ACCOUNTABILITY WASHINGTON, DC www.politicalaccountability.net

Center for Political Accountability seeks to bring transparency and accountability to corporate political spending in order to end the pervasive secrecy that hides corporate political activity from shareholders and the public and to change corporate political behavior. $20,000 General Support

MAPLight.org illuminates the connection between money and politics. It shines a light on special interest campaign contributions and shows their related legislative outcomes, which leads to more informed constituents, increased responsiveness of legislators, and election reform. Its public, web-accessible database links campaign contributions to legislators votes, exposing how money affects the specific issues relevant to peoples lives. $30,000 General Support

DEMOCRACY 8

PROJECT ON GOVERNMENT OVERSIGHT WASHINGTON, DC www.pogo.org

VELVET REVOLUTION WASHINGTON, DC www.velvetrevolution.us

Project On Government Oversight (POGO) is an independent nonprofit that investigates and exposes corruption and other misconduct in order to achieve a more accountable federal government. $20,000 Revolving Door Database
SOUTHEAST REGIONAL ECONOMIC JUSTICE NETWORK DURHAM, NC www.rejn.org

Velvet Revolution (VR) is a 501(c)4 organization founded five years ago for the purpose of providing a means for citizens and organizations to mobilize to create a clean, transparent and accountable government. Its major focus is exposing and correcting problems with electronic voting machines and their tabulators. $50,000 Election protection and government accountability work
VOTER ACTION / INTERNATIONAL HUMANITIES CENTER SEATTLE, WA www.voteraction.org

Southeast Regional Economic Justice Network (REJN) is a memberled, inter-generational network, comprised of 40 culturally, racially, and socially diverse organizations representing the working poor, who work on a variety of justice issues in the South. Formed to proactively respond to the downside of Globalization, REJN works to strengthen local organizing, collaborations, and civic engagement to better impact policies that promote prosperity and accountable governance. $60,000 General Support

Voter Action (VA) aims to protect an open and transparent election process in the United States. It supports the rights of all voters to cast their ballots in an independent manner and to have their votes accurately recorded and counted. VA seeks to reclaim elections for the public domain, controlled by voters and not by private interests. $35,000 Voter Actions Legal Advocacy Project

DEMOCRACY 9

SUSTAINABLE PLANET COMMITTEE How do we meet

the needs of people now without compromising the needs of future generations? How do we bring all human activities into harmony with nature for the benefit of all beings? To face these questions, we must transform both human culture and technology to live within the physical limits of the local and global ecosystems. Most urgently, this implies protecting threatened ecosystems to preserve biodiversity and prevent extinction. This in turn will require addressing global ecological issues such as climate change, empowering local and indigenous communities and deploying new clean technologies. 2009 GRANTS$321,600

1SKY ACTION FUND TAKOMA PARK, MD www.1sky.org

1Sky Action Fund supports the work of its sister organization 1Sky Education Fund to build a diverse nationwide movement and convince the federal government to take bold action to tackle the climate crisis and harness the enormous economic opportunity of energy efficiency and the renewable energy economy as soon as possible. $50,000 Field Organizing
AMAZON WATCH SAN FRANCISCO, CA www.amazonwatch.org

environmental justice, improves health and nutrition, builds community and empowers residents, breaks down racial and ethnic barriers, and underlies sustainable food systems. $16,000 Growing Food Secure Communities
APPALACHIAN CENTER FOR THE ECONOMY AND THE ENVIRONMENT LEWISBURG, WV www.appalachian-center.org

The mission of Amazon Watch is to partner with South American indigenous/environmental NGOs to protect Amazonian ecosystems and indigenous lands threatened by internationally financed industrial megaprojects (oil/gas pipelines, dams, highways, waterways). $36,600 program to advance rainforest protection, indigenous rights, and climate stability in the Equadorian Amazon
AMERICAN COMMUNITY GARDENING ASSOCIATION COLUMBUS, OH www.communitygarden.org

Appalachian Center for the Economy and the Environment (ACEE) is a regional nonprofit organization dedicated to protecting the communities and natural resources of Appalachia and to developing a sustainable economy for the region. The Center provides legal representation and policy assistance to citizens and grassroots organizations. $30,000 General Support
BONOBO CONSERVATION INITIATIVE WASHINGTON, DC www.bonobo.org

American Community Gardening Association (ACGA) works with community-based organizations throughout the United States to help residents address local social, economic, and environmental issues by developing community gardens. Community gardening fosters social and

Bonobo Conservation Initiative (BCI) is dedicated to ensuring the survival of the bonobo (Pan paniscus) and its tropical forest habitat in the Congo Basin. By working with indigenous Congolese people through cooperative conservation and community development programs, as well as on the national and international levels, BCI is establishing new protected areas and leading efforts to safeguard bonobos wherever they are found. $34,000 Bonobo Peace Forest

SUSTAINABLE PLANET 11

DEFENSA Y CONSERVACIN ECOLGICA DE INTAG OTAVALO-IMBABURA, ECUADOR

GLOBAL COOLING / PLANETWORK BOULDER, CO www.planetwork.net/climate/cooling

Defensa y Conservacin Ecolgica de Intag (DECOIN) works to involve local people in environmental conservation measures and to stop extractive industry projects (mining), promote sustainable economic alternatives, and to educate the local population on the importance of natural resource conservation. $20,000 Periodico Intag DECOIN
FRIENDS OF THE EARTH WASHINGTON, DC www.foe.org

Global Cooling is a nonprofit led by Dr. John Latham and other renowned scientists working to stall global warming by researching, developing, and rapidly deploying technology to increase the reflectivity of maritime clouds, thus cooling the planet and providing more time to develop and globally apply cleaner methods of meeting our populations energy needs. $15,000 General Support for Global Cooling
GREEN FOR ALL OAKLAND, CA www.greenforall.org

Friends of the Earth (FoE) is a national organization dedicated to protecting the planet from environmental disaster; preserving biological, cultural, and ethnic diversity; and empowering citizens to have an effective voice in decisions affecting their environment and their lives. FOE fosters partnerships with a broad range of non-governmental environmental groups on all continents. $20,000 General Support
FRIENDS OF THE EARTH ACTION WASHINGTON, DC www.foeaction.org

Green for All seeks to help build a green economy strong enough to lift people out of poverty. By advocating for a national commitment to job training, especially for people from disadvantages communities, Green For All fights both poverty and pollution at the same time. $16,000 General Support
PROJECT SEAHORSE FOUNDATION FOR MARINE CONSERVATION CEBU CITY, PHILIPPINES www.projectseahorse.org

Friends of the Earth Action (FoE Action) provides extra political muscle on legislative battles to its sister organization, Friends of the Earth, which is part of a network of affiliates in over 70 nations. FoE Action not only fights for laws and lawmakers that will do the right thing on environmental issues, it also helps the public join in the political battle. $25,000 work to achieve US Legislation to reduce greenhouse gas emissions

Project Seahorse Foundation is an interdisciplinary organization committed to the conservation of Philippines marine ecosystems through equitable sustainable use. It undertakes research and management initiatives for marine resources, within an ecosystem framework. It focuses on Danajon Bank region as it ecompasses critical Philippine conservation issues. $14,000 work to initiate a World Heritage site for marine life and for coastal communities
SUSTAINABLE PLANET 12

SUSTAINABLE CONNECTIONS BELLINGHAM, WA www.sconnect.org

Sustainable Connections works with local, independently owned businesses that have the autonomy to make any transformational change in their business that they can imagine. It supports a community of innovators in green building, sustainable agriculture, renewable energy; independent businesses in town centers, and mentors a new breed of entrepreneurs that have designed their business with a sustainable vision. $10,000 General Support
TAXPAYERS FOR COMMON SENSE WASHINGTON, DC www.taxpayer.net

The mission of Taxpayers for Common Sense (TCS) is to expose and end wasteful and harmful spending in order to create a federal government that operates within its means. $35,000 General Support and Synthetic Fuels Program

SUSTAINABLE PLANET 13

THE ARTS RISING FUNDING CIRCLE

builds support and visibility for the field of Arts and Social Change. Projects funded use participatory arts, have high artistic quality and a clear strategy for social change. 2009 GRANTS$95,500

1+1+1=ONE BROOKLYN, NY www.wegotissues.org

ECOARTS CONNECTIONS BOULDER, CO www.ecoartsonline.org

1+1+1=ONE uses Arts Based Civic Transformation to empower individuals, communities, and societies in affecting positive social change. Two of its projects are: We Got Issues!, a women-led organization that encourages the voices of all women to be heard, and Next Wave of Women and Power, an international leadership development network designed for young women ages 1840. $16,000 We Got Issues!
ART IN THE PUBLIC INTEREST SAXAPAHAW, NC www.communityarts.net

EcoArts Connections brings together science, arts and other organizations to advance understanding of climate change and inspire the successful shift to a sustainable future. $12,000 Capacity Building and Outreach
NATIVE MOVEMENT FLAGSTAFF, AZ www.nativemovement.org

Art in the Public Interest works to bring about recognition of the arts as part of a healthy culture in which the artist provides both intellectual nourishment and social benefit. It supports art that reflects not only a commitment to quality but a concern for the culture in which that work appears. $22,000 Community Arts Network
ARTCORPS BEVERLY, MA www.artcorp.org

Native Movement is a national non-profit organization that supports culturally based leadership development and sustainability programs in Alaska and Arizona, while inspiring and supporting young Indigenous leaders across North America. It provides sponsorship and technical support for Indigenous-led organizations and initiatives. $10,000 Black Sheep Art Collective
TORONTO PLAYBACK THEATRE TORONTO, ON www.torontoplayback.com

ArtCorps advances social change initiatives by promoting arts and culture as powerful tools to generate cooperative and sustainable work between development organizations and the communities they serve. $20,500 artist placements in Guatemala, Honduras, and El Salvador

Toronto Playback Theatre is dedicated to listening to peoples stories and transforming them spontaneously into theatre. Its mission is to provide organizations with dramatic, audience-interactive performances and programs that build trust, deepen dialogue and generate opportunities for personal and community development. $15,000 Urban Green: Finding Common Ground

ARTS RISING 15

THE GULF SOUTH ALLIED FUNDERS FUNDING CIRCLE is a donor initiative formed
in response to the devastation by Hurricanes Katrina and Rita. Its objectives include:
Generating at least three years of steady financial support from individual donors, donor communities and foundations, for equitable rebuilding of the Gulf South. Discussing the ongoing human rights violations in the region, and the ways in which the very personal tragedies of the people in the area have national implications. Building the ties between donor communities in order to strengthen our ability to work together strategically. Raising the capacity and visibility of the Twenty-First Century Foundation (21CF) one of the few national and publicly endowed Black foundations in the United States. Facilitating positive changes in public policy.
TWENTY FIRST CENTURY FOUNDATION NEW YORK, NY www.21cf.org

Established in 1971, Twenty First Century Foundation is a national public foundation committed to providing resources for Black community social justice initiatives and leadership development. For 35 years, the Foundation has been supporting the civil rights, economic empowerment, and grassroots leadership of the African American community in the United States through its grantmaking and personalized donor services. $152,300 Gulf Coast Organizing, Advocacy, and Leadership Initiative

THE INTERNATIONAL PERMACULTURE FUNDING CIRCLE funds strategic international

permaculture projects that effectively address fundamental issues of international development. Its goal is to fund organizations and projects working to enhance eco-, bio-, and cultural diversity, while protecting indigenous cultures, food traditions, and habitats. Special consideration is given to projects working on generating seminal models for alternatives to conventional, international development paradigms. 2009 GRANTS$105,600

AFRISTAR FOUNDATION JOHANNESBURG, SOUTH AFRICA www.afristarfoundation.org

REDE CONTRA O ABUSO DE MENORES MAPUTO, MOZAMBIQUE www.redecame.org.mz

Afristar Foundation seeks to educate, train and engage the people of Southern Africa in the development of sustainable models for ecological human settlement and local economic development, such as sustainable villages, in ways that facilitate the ethics of care of people and care of the earth. $15,000 Marginalized Community Action Plan in sub-Saharan Africa
FAMBIDZANAI PERMACULTURE TRAINING CENTRE HARARE PROVINCE, ZIMBABWE www.fambidzanai.org.zw

Rede Contra O Abuso De Menores (Rede CAME) is dedicated to mobilizing forces and synergies within the Mozambican society in order to fight all forms of child abuse through advocacy, education and sensitization, respecting child rights but rejecting any form of discrimination, especially in relation to gender and age. $10,000 permaculture program in Mahubo Primary School
REGIONAL SCHOOLS AND COLLEGES PERMACULTURE PROGRAMME BLANTYRE, MALAWI www.rescopeprogramme.org

Fambidzanai Permaculture Training Centre seeks to teach and demonstrate relevant skills and knowledge to restore peoples confidence in their ability to produce off the land while still working creatively in harmony with nature. $10,200 work promoting sustainable permaculture
KLEIN KAROO SUSTAINABLE DRYLAND PERMACULTURE PROJECT WESTERN CAPE, SOUTH AFRICA www.berg-en-dal.co.za

Regional Schools and Colleges Permaculture Programme (ReSCOPE) provides technical support to partners working with schools and colleges to promote environmental management systems that are ecologically sustainable, socially just and economically viable. $20,000 PLAN Africa Initiative
SCHOOLS ENVIRONMENTAL EDUCATION AND DEVELOPMENT KENILWORTH, SOUTH AFRICA www.seed.org.za

Klein Karoo Sustainable Dryland Permaculture Project (KKSDPP) seeks to develop sustainable Dryland permaculture models for use in training, collaboration and for inspiring ecological human settlement in the African context. $20,000 development of a run-off catchment infrastructure

Schools Environmental Education and Development (SEED) is building a school-driven movement that results in Permaculture being taught across all learning areas and results in learning environments being transformed into productive and inspiring places. $15,000 regional networking and design for Cape Flats Permaculture Institute
INTERNATIONAL PERMACULTURE 18

YEHIWOT BREHAN CHURCH OF ETHIOPIA DEVELOPMENT ORGANIZATION ADDIS ABABA, ETHIOPIA

Yehiwot Brehan Church of Ethiopia Development Organization (YBCEDO) seeks to contribute to bringing a long-lasting change and improvement in the holistic life of the disadvantaged members of the community with more emphasis on children and women through integrated development programs with active community participation. $15,400 permaculture training and demonstration center

INTERNATIONAL PERMACULTURE 19

THE RESTORATIVE JUSTICE FUNDING CIRCLE promotes humane alternatives to the

current modus operandi of American criminal justice. It supports efforts to (1) prevent imprisonment, particularly lengthy, Draconian sentences; (2) transform imprisonment from a period of suffering and debilitation into a period of healing, growth and empowerment, including victim-offender dialogue and reconciliation, spiritual and emotional healing, and vocational endowment; (3) diagnose and treat prisoners with mental health and/or substance abuse problems; (4) support prisoners families during and after incarceration; and (5) steward and mentor prisoners when they return home. In 2009, the Funding Circle focused on endeavors to transform, heal, motivate, and empower prisoners, all with the principal goal of reducing recidivism and 2009 GRANTS$148,300 uplifting the communities to which ex-prisoners return.

DIRECT ACTION FOR RIGHTS AND EQUALITY PROVIDENCE, RI www.daretowin.org

FREEDOM PROJECT SEATTLE, WA www.freedom-project.org

Direct Action for Rights and Equality (DARE) is a multi-racial and multi-issue grassroots organization of low-income families primarily headed by single mothers. It organizes neighborhood residents through house meetings, community outreach, membership meetings and committee participation, and mobilizes its constituency through direct issue campaigns. $13,900 Behind the Walls
FAMILIES AND FRIENDS OF LOUISIANAS INCARCERATED CHILDREN NEW ORLEANS, LA www.fflic.org

Freedom Project strengthens our community through supporting the transformation of prisoners into peacemakers. It offers trainings in concrete skills of Nonviolent Communication and mindfulness leading to reconciliation with ourselves, our loved ones and the community. Its work addresses the healing of relationships ruptured by violence and the forging of community founded on genuine safety through connection. $15,700 General Support
GETTING OUT BY GOING IN LOS ANGELES, CA www.gettingoutbygoingin.org

Families and Friends of Louisianas Incarcerated Children (FFLIC) is a statewide membership-based organization that fights for a better life for all of Louisianas youth, especially those involved in or targeted by the juvenile justice system. As mothers and fathers, grandparents, siblings, cousins, aunts, uncles and allies FFLIC believes in and implements a model of organizing that is people and community centered, and is explicitly anti-racist. $17,700 General Support
FREE BATTERED WOMEN / LEGAL SERVICES FOR PRISONERS WITH CHILDREN SAN FRANCISCO, CA www.freebatteredwomen.org

Getting Out By Going In (GOGI) is dedicated to the release preparation of incarcerated men, women and children by providing simple tools for making positive choices. GOGI is designed to help participants Get Out of old behavior by Going In for self-improvement. Coaches empower the individual with information, opportunity and support for lasting change. $17,200 Lynwood Campus program
INSIGHT PRISON PROJECT SAN RAFAEL, CA www.insightprisonproject.org

Free Battered Women seeks to end the re-victimization of incarcerated survivors of domestic violence. It does this as part of the movement for racial justice and the struggle to resist all forms of intimate partner violence against women and transgender people. $12,700 General Support for Free Battered Women

Insight Prison Project (IPP) is a community organization that believes community members need to play an active role in the prisons surrounding a community. IPP is dedicated to creating and conducting effective programs for inmate rehabilitation and to support the reinstatement of rehabilitation as a core operating principle within the penal system. $18,200 General Support
RESTORATIVE JUSTICE 21

A NEW WAY OF LIFE REENTRY PROJECT LOS ANGELES, CA www.anewwayoflife.org

TEMPLE UNIVERSITY PHILADELPHIA, PA www.temple.edu/inside-out

A New Way of Life Reentry Project provides housing and reentry support to formerly incarcerated women and their children. It assists women and girls to break the cycle of entrapment in the criminal justice system and lead healthy and satisfying lives. $17,200 General Support
RIGHTS FOR IMPRISONED PEOPLE WITH PSYCHIATRIC DISABILITIES / URBAN JUSTICE CENTER NEW YORK, NY www.rippd.org

Inside-Out Prison Exchange Program increases opportunities for men and women, inside and outside of prison, to have transformative learning experiences that emphasize collaboration and dialogue, inviting participants to take leadership in addressing crime, justice, and other issues of social concern. $18,200 Inside-Out Prison Exchange Program

Rights for Imprisoned People with Psychiatric Disabilities (RIPPD) is a grassroots, direct action organization, united to demand justice and social change, for imprisoned people with psychiatric disabilities. RIPPD confronts all those who have the repsonsibility to make changes by strategizing, protesting, negotiating, collaborating with other groups, and by any creative means necessary. $17,500 General Support for Rights for Imprisoned People with Psychiatric Disabilities

RESTORATIVE JUSTICE 22

INFORMAL FUNDING occurs at Threshold meetings and raises funds for organizations
presented by members to members. These are closed funding cycles and as such do not accept unsolicited letters of inquiry. 2009 GRANTS$209,778

350.ORG / SUSTAINABLE MARKETS FOUNDATION RIPTON, VT www.350.org

$12,650 General Support for 350.org

BOULDER INSTITUTE FOR NATURE AND THE HUMAN SPIRIT BOULDER, CO www.boulderinstitute.org

INSTITUTE FOR THE STUDY AND PRACTICE OF NONVIOLENCE PROVIDENCE, RI www.nonviolenceinstitute.org

$6,711 General Support

JOURNEY TO FREEDOM EDUCATION PROJECT / GREATER WASHINGTON EDUCATIONAL TELECOMMUNICATIONS ASSOCIATION SHERBORN, MA www.journeytofreedomfilm.com

$5,011 Training Pilgrimage Leaders on the Abraham Path

ELECTION DEFENSE / ALLIANCE INTERNATIONAL HUMANITIES CENTER SAN PABLO, CA www.electiondefensealliance.org

$6,911 General Support for Journey to Freedom Education Project

LOWER NINTH WARD NEIGHBORHOOD EMPOWERMENT NETWORK ASSOCIATION NEW ORLEANS, LA www.9thwardnena.org/

$14,400 General Support of Election Defense Alliance

ELECTION TRANSPARENCY COALITION / JUSTICE THROUGH MUSIC PROJECT STAATSBURG, NY

$18,843 General Support

MULTIDISCIPLINARY ASSOCIATION FOR PSYCHEDELIC STUDIES SANTA CRUZ, CA www.maps.org

$11,100 Election Transparency Coalitions work to save the lever voting system in New York
GAIAFIELD PROJECT / CALIFORNIA INSTITUTE OF INTEGRAL STUDIES KENSINGTON, CA www.gaiafield.net

$9,900 MDMA/PTSD research

NEXTWAVE FOUNDATION MANSONS LANDING, BC www.hollyhock.ca

$6,261 Gaiafield Projects WiseClimate 2009

$14,586 Support of Hollyhock Foundations Social Change Programs

INFORMAL FUNDING 24

OJAI FOUNDATION OJAI, CA www.ojaifoundation.org

VETERANS GREEN JOBS BOULDER, CO www.veteransgreenjobs.org

$6,761 Youth Rite of Passage

RED DE PERMACULTURA EN EL PERU PUCALLPA, PERU www.redpalperu.org

$6,961 General Support

WECANBUILDANORPHANAGE.COM TOPANGA, CA www.wecanbuildanorphanage.com

$8,087 Achual Sustainable Art Collective

SISTERHOOD IS GLOBAL INSTITUTE NEW YORK, NY www.sigi.org

$11,260 General Support

WORLD FAMILY FOUNDATION HONOLULU, HI www.world-family-foundation.org

$15,500 GlobalSister.org
TROPICAL RAINFOREST COALITION CUPERTINO, CA www.rainforest.org

$8,536 Restorative Circles: Sri Lanka and Brazil

YOUTH SPIRIT CENTER / YOUTH FOR ENVIRONMENTAL SANITY AMMAN, JORDAN

$32,700 Llushin River Valley project with the Amazanga Community

$13,600 Youth Spirit Centers Middle East Jam

INFORMAL FUNDING 25

DISCRETIONARY GRANTS
GLOBAL COOLING / PLANETWORK BOULDER, CO www.planetwork.net/climate/cooling

$1,000 General Support for Global Cooling

TWENTY FIRST CENTURY FOUNDATION NEW YORK, NY www.21cf.org

$1,500 Hurricane Katrina Recovery Fund

VELVET REVOLUTION WASHINGTON, DC www.velvetrevolution.us

$1,000 General Support

INFORMATION FOR GRANTSEEKERS Threshold Foundations annual grants program

includes two Core Grantmaking Committees the Democracy Committee and the Sustainable Planet Committee and a number of funding circles, which change on an annual basis. For current information about Core Committee and Funding Circle guidelines and funding criteria, please visit the Threshold Foundation website at www.thresholdfoundation.org.
GRANTS PROCESS
The annual grant cycle begins in September with the submission of Letters of Inquiry (LOI) by organizations interested in seeking grants from Threshold Foundation. Threshold members may sponsor organizations with a letter of recommendation or organizations may submit an unsolicited LOI. Threshold Foundation does not match organizations with Threshold members for sponsorship in the grantmaking process, but all LOIs are given an initial review. From the LOIs the grant committees invite a limited number of organizations to submit a proposal. After reviewing the proposals, the grant committees select a subset of organizations for a site-visit and evaluation. Once the site-visit and evaluations are complete evaluations are reviewed and grant committees finalize their grant recommendations to the Circle (Board of Directors) in June. Grant agreements and funds are disbursed at the end of July.

GRANT TYPES AND SIZES

Threshold Foundation provides grants for general operating expenses as well as special projects. We do not consider emergency or discretionary grants outside of the annual grant cycle. Grant amounts typically range from $5,000 to $25,000. Organizations seeking grants must have 501(c)(3) tax-exempt status or 501(c)(4) lobbying status from the IRS or must be exclusively organized for charitable or educational purposes, inside or outside the United States.

APPLYING FOR A GRANT

The first step in applying to the annual grant cycle is to submit an online Letter of Inquiry through our website at www.thresholdfoundation.org. Note that guidelines for applying to the annual grant cycle often change, as we are continually trying to improve our process based on feedback from grantees and committee members. Therefore, we recommend that grantseekers visit the Threshold Foundations website in August for the most up-to-date information regarding the deadline and application process for the following years cycle.
INFORMATION 27

ENDOWMENT INVESTMENT REPORT

The endowment investment principles of Threshold Foundation complement its philanthropic goals. The entire portfolio has a social investment focus with positive and negative screens: seventy percent is in socially screened stock, bonds, and cash with Boston Common Asset Management, Calvert, Miller/Howard Investments, and Trillium Asset Management; twenty percent is in Program Related Investments, primarily Community Development Loan Funds that are listed here; the remaining ten percent has been designated for high growth, venture-type investments.
Program Related Investment Accion International Boston, MA www.accion.org Cooperative Fund of New England Amherst, MA www.cooperativefund.org E&Co Bloomfield, NJ www.eandco.net Enterprise Corporation of the Delta Jackson, MS www.ecd.org Loan Amount $55,000 $20,000 $50,000 $35,000 Program Related Investment New Hampshire Community Development Concord, NH www.nhclf.org Loan Amount $25,000

Endowment Gifts You can make an endowment gift to Threshold Foundation through a charitable trust, real estate gift, or by means of a bequest in your will. Because grantee organizations, grantee needs and other conditions change over the years, it will often avoid legal complications if simple unrestricted language like the following is used in wills: I hereby give and bequest ___________ to Threshold Foundation, a not-for-profit taxexempt public charity founded under the laws of the State of New York, having as its principal address PO Box 29903, San Francisco, California 94129-0903, for the general purposes of Threshold Foundation. If you want to discuss the language of your bequest, or if you want more information on planned giving possibilities (including real estate gifts), the staff or Circle (Board of Directors) would be happy to meet with you. To schedule a meeting contact the Foundation Manager at 415-561-6400.

Opportunity Finance Network $100,000 Philadelphia, PA www.opportunityfinance.net Root Capital Cambridge, MA www.rootcapital.org Self-Help Credit Union Durham, NC www.self-help.org Self-Help Enterprises Visalia, CA www.selfhelpenterprises.com Shared Interest New York, NY www.sharedinterest.org Shorebank Pacific Ilwaco, WA www.eco-bank.com $20,000 $25,000 $45,000 $25,000 $50,000

Human/Economic Appalachian Development, Inc. Community Loan Fund (HEAD Corp.) $20,000 Berea, KY www.headcorp.org Institute for Community Economics Springfield, MA www.iceclt.org The Loan Fund Albuquerque, NM www.loanfund.org National Federation of Community Development CU New York, NY www.natfed.org $25,000 $20,000

$50,000

FINANCIALS 28

INDEPENDENT AUDITORS REPORT

Board of Directors Threshold Foundation

We have audited the accompanying statements of financial position of Threshold Foundation (the Foundation) as of December 31, 2008, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Foundations management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Foundations 2007 financial statements and, in our report dated September 30, 2008, we expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundations internal control over financial reporting. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Threshold Foundation as of December 31, 2008, and the changes in net assets and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Signed Fontanello, Duffield & Otake, LLP Certified Public Accountants 44 Montgomery Street, Suite 2019 San Francisco, CA 94104
FINANCIALS 29

BALANCE SHEET

Statements of Financial Position

YEARS ENDED DECEMBER 31, 2008 AND 2007

2008

2007

Assets
Cash and cash equivalents Pledges receivable Deposits Other assets Investments Program related investments Total assets $ 288,818 18,525 25,280 11,543 2,250,824 535,000 3,129,990 $ 482,520 15,325 33,737 16,250 3,167,199 535,000 4,250,031

Liabilities
Grants payable Accounts payable Refundable deposits Total liabilities 350,000 10,942 9,500 370,442 10,476 22,160 32,636

Net Assets
Unrestricted net assets General operations Designated for grantmaking pool Designated for endowment purposes Total unrestricted net assets Temporarily restricted net assets Total net assets Total liabilities and net assets 385,458 164,399 2,170,166 2,720,023 39,525 2,759,548 $ 3,129,990 357,121 724,401 2,796,226 3,877,748 339,647 4,217,395 $ 4,250,031

INCOME & EXPENSE

Statements of Activities
YEARS ENDED DECEMBER 31, 2008 AND 2007

Unrestricted

Temporarily Restricted

2008 Total

2007 Total

Support and Revenue

Grants and contributions Conference revenues Investment income/(loss) Net assets released from restriction Total support and revenue $ 1,872,047 144,645 (473,834) 1,542,858 339,647 1,882,505 39,525 (339,647) (300,122) $ 39,525 $ 1,911,572 144,645 (473,834) 1,582,383 1,582,383 $ 2,476,062 131,565 176,476 2,784,103 2,784,103

Expenses
Program services Grants Conference expenses Network communications Total program services Supporting services Grantmaking support Board/corporate support Total supporting services Total expenses 99,324 126,549 225,873 3,040,230 (1,157,725) 3,877,748 $ 2,720,023 (300,122) 339,647 $ 39,525 99,324 126,549 225,873 3,040,230 (1,457,847) 4,217,395 $ 2,759,548 89,955 135,626 225,581 2,123,745 660,358 3,557,037 $ 4,217,395 2,609,084 24,660 180,613 2,814,357 2,609,084 24,660 180,613 2,814,357 1,683,528 52,337 162,299 1,898,164

Change in Net Assets

Net assets at beginning of year Net assets at end of year

FINANCIALS 31

CASH FLOWS

Statements of Cash Flows

YEARS ENDED DECEMBER 31, 2008 AND 2007

2008

2007

Cash flows from operating activities

Change in net assets Adjustments to reconcile change in net assets to cash used in operating activities: Net investment income/(loss) Contributed stock Changes in operating assets and liabilities: Pledges receivable Deposits Other assets Grants payable Accounts payable Refundable deposits Net cash used in operating activities (3,200) 8,457 4,707 350,000 466 (12,660) (830,539) (3,976) 88,163 (3,192) (6,525) (3,295) 14,315 (156,262) 473,834 (194,296) (176,476) (725,634) $ (1,457,847) $ 660,358

Cash flows from investing activities

Purchase of investments Proceeds from sale of investments Net cash provided by investing activities (745,606) 1,382,444 636,838 (193,701) 482,520 $ 288,819 (650,000) 938,882 288,882 132,620 349,900 $ 482,520

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

FINANCIALS 32

2009 Board of Directors

Michele Grennon, President Gita Drury, Vice President and Secretary Sophia Bowart, Treasurer Craig Harwood, Director David Hills, Director Drummond Pike, Director Mary Calder Rower, Director Sam Utne, Director Laura Wasserman, Director

2009 Staff
Liza Siegler, Foundation Manager David Falzone, Member Programs Manager Joyce Tang, Foundation Accountant Diana Chavez, Foundation Associate Doug Seckinger, Foundation Associate And other staff of Tides Foundation

Photography Tim Jones Graphic Design Ison Design

BOARD/STAFF 33

IN MEMORIAM
Phillip Rush Threshold is filled with extraordinary people. Phillip was one of them. Though he lived on the other side of the country we were close and I thought I knew him. But it wasnt until he died that I understood the true measure of the man. So many stories surfaced of his service and constant personal availability to hundreds of people, especially young queer folks. Phillip didnt just give money and time to his community, he gave his whole heart. And his phone number! Phillip gave many gifts to Threshold, but perhaps his greatest will be to remind us of all the delicious, ridiculous and sad stories residing inside the person you are sitting next to in circle or at a meal. The journey of knowing each other takes a lifetime. And sometimes thats just not long enough. Nancy Harris Dalwin

Diane Jackson Donut and friend Linda Diane Jackson died at home in Oklahoma City on February 28, 2009 after a dignified and intrepid battle with cancer. She was 61 years old. An anthropology graduate, Diane was an avid traveler, extensively exploring Central America and venturing as far and wide as Bhutan and Antarctica. A woman with many talents, Diane was an accomplished photographer with an MFA in photography from Parsons New School of Design in Los Angeles, a perpetual and skilled student of creative writing, a pianist and composer of music, a scuba diver and always the adventurer, took up dog sledding at 59. Most of us though, probably remember her best for her impassioned practice of yoga, opening The Yoga Studio in Oklahoma City in 1995. Dianes generous and indomitable spirit, celebration of life, and raucous laughter will remain in our hearts. She will be sorely missed. Laura Wasserman