2007 Threshold Alliance Foundations
2007 Threshold Alliance Foundations
This past year has been an electrifying time for Threshold Foundation. There was a major                
reorganization of our grants committees last year and this year was the time to see if the fruits
of our labors would be realized. Had we listened long and hard enough to what direction the
community was trying to take us? Was all the hard work and due diligence of the previous year
going to pay off?
Al Gore met with us at a Threshold conference two years ago, before he won the Nobel Peace Prize.
His message was clear at that time: a sustainable planet and the democracy to allow it to happen
are where the world needs us to focus our time and energy. He confirmed what we already knew.
This past year Bill McKibben, Harvey Wasserman and Mark Ritchie spoke to us at our June
conference. Again we heard how important sustainability and democracy are to our future and the
planet’s future.
Our community was convinced. Last year we brought one of the largest grants pools in recent
history to the table. Our two core grant committees, Sustainable Planet and Democracy were able to
make some of the most significant and substantial grants in their areas of focus. Sustainable Planet
targeted work that addresses Community-based Solutions, Ecological Hotspots and Averting Mass
Extinction. They also accelerated two timely grants in 2007 to support work on Climate Change,
which the committee has taken on as a new area of focus for 2008. The Democracy Committee
funded efforts to: ensure integrity in election processes and voting equipment; empower marginalized
communities to register, vote and challenge barriers to voting access; and limit the influence of big
money special interests in governmental processes, especially elections and legislation.
A spectacular one-two punch.
This was all done in the midst of also generously funding our new Funding Circle initiatives;
Restorative Justice, International Microcredit, and Gulf South Allied Funders. Funding Circles were
our response to the varied and specific interests that we see in our donor community that fluctuate
with time and the current state of affairs globally. We wanted to harness this energy and bring it
back into the Threshold fold for everyone’s benefit.
Restorative Justice sought to promote alternatives to the modus operandi of the American criminal
justice system. International Microcredit provided funding for indigenous microfinance institutions
   (MFI’s) and critically needed capital for local entrepreneurs in developing regions throughout the
    world. Gulf South Allied Funders is a donor initiative formed in response to the devastation by
    Hurricanes Katrina and Rita. It was also a way for us to build ties between donor communities — with
    whom GSAF is in collaboration — to strengthen our ability to work together and fund strategically.
    While still in its infancy, Funding Circles look like a homerun. Initially there was concern that this
    initiative might affect our core committees’ capacity to give. How could we fund both of these areas
    in a meaningful way? Would we be competing with ourselves?
    The answer was a resounding “no.” Not only did we increase our grants pool giving, we exponentially
    expanded our capacity to give as a community in all of our initiatives. There was a 15.7% increase in
    the number of people giving and a whopping 56% increase in dollar amount given to all initiatives
    from last year. A great lesson…In my own life I refer to it “Act as if” or faith with due diligence. We
    acted as if we had the capacity to hold all of these wonderful initiatives, did our homework and
    watched it manifest itself. Thank you.
    Looking into 2008 we are riding a wonderful wave of momentum. There is increased vigor in our
    two core grantmaking committees and an increase in the number of funding circles from three to
    five. The three funding circles returning for their second year are Restorative Justice, International
    Microcredit and Gulf South Allied Funders. The two new funding circles are Complementary
    Currency and Arts for Social Change.
    Will we be able to sustain our capacity to give? I think so…with faith and the perseverance to do our
    homework, I believe we are nowhere near our limit to manifest what we seek!
    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 2007, the committee supported efforts to: ensure integrity in election processes and voting equipment;
     empower marginalized communities to register, vote and challenge barriers to voting access; 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.
    Alliance for Sustainable Colorado                          systems. It is its mission to catalyze, strengthen, and
                                                               connect these local networks.
    Works to achieve environmental, economic and social
                                                               $20,000 — General Support
    sustainability in Colorado through building broad
                                                               San Francisco, CA • www.livingeconomies.org
    support among individuals, nonprofit organizations,
    businesses and government. The Alliance facilitates
    relationships and common goals and agendas among           California Academy of Sciences
    individuals, nonprofit organizations, businesses and       Enables scientists to conduct vital research around
    government to unify support behind jointly backed          the Bay Area, across the United States, and in the
    policy initiatives that consider long-term impacts. It     world’s hotspots of biodiversity. It plays an important
    provides the nucleus for a statewide sustainability        role in empowering teachers across the state with
    movement for Colorado and a model for sustainability       resources and training, and providing education
    movements in other states.                                 outreach programs directly to underserved youth.
    $25,000 — General Support                                  Steinhart Aquarium and world-class exhibits are
    Denver, CO • www.allianceforcolorado.org                   one example. As a project of California Academy
                                                               of Sciences, the mission of Center for Biodiversity
    Business Alliance for Local Living                         Research and Information (CBRI) is to foster and
    Economies                                                  disseminate integrative, multidisciplinary research
                                                               based on the biodiversity data residing in CAS
    A rapidly growing alliance of 35 local business
                                                               specimen collections. CBRI applies a wide range of
    networks comprising over 12,000 entrepreneurs and
                                                               geospatial tools and analysis to museum biodiversity
    small company owners from across the U.S. and
                                                               data to understand and communicate changing
    Canada who are collaborating to build diversified local
                                                               patterns of species distributions.
    economies that support community life and natural
                                                               $35,000 — Center for Biodiversity Research and
                                                               Information
                                                               San Francisco, CA • www.calacademy.org
Energy Action Coalition / Earth                             Global Cooling / Planetwork
Island Institute                                            An informal group of collaborating scientists from the
A coalition of more than 40 organizations from across the   US and UK examining an idea for creating a controlled
US and Canada, founded and led by youth to help support     global cooling to balance global warming resulting
and strengthen the student and youth clean energy           from burning fossil fuel. Its Cloud Seeding to Avert
movement in North America. Funding supports the             Catastrophic Global Warming project will assess and
Lobby Day and Rally components of Power Shift 2007.         develop a scheme for mitigating global warming via
$25,000 — Power Shift 2007                                  low lying maritime clouds.
Washington, DC • www.powershift07.org                       $25,000 — Cloud Seeding to Avert Catastrophic
                                                            Global Warming
                                                            Boulder, CO • http://planetwork.net/climate/cooling
Environmental Law Alliance
Worldwide
                                                            Global Response                                            
Gives public interest lawyers and scientists around
the world the skills and resources they need to             Empowers people of all ages, cultures, and nationalities
protect the environment through law. Its advocates          to protect the environment by creating partnerships for
serve low-income communities around the world,              effective citizen action. At the request of indigenous
helping citizens strengthen and enforce laws to             peoples and grassroots organizations, Global Response
protect themselves and their communities from toxic         organizes urgent international letter campaigns to help
pollution and environmental degradation. Its advocates      communities prevent many kinds of environmental
are building a sustainable future by helping citizens       destruction. Global Response involves young people as
participate in policy decisions about the environment.      well as adults in these campaigns to develop in them
By giving grassroots advocates access to critical legal     the values and skills for global citizen cooperation and
and scientific resources, E-LAW strengthens these           earth stewardship.
advocates to challenge environmental abuses and             $30,000 — General Support
pursue environmental justice.                               Boulder, CO • www.globalresponse.org
Mission  Gulf South Allied Funders (GSAF) 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.
10
     Mission             The mission of the Restorative Justice Funding Circle is to promote 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 2007, the Funding Circle focused on endeavors
                         to transform, heal, motivate, and empower prisoners, all with the principal goal of reducing
                         recidivism and uplifting the communities to which ex-prisoners return.
                                                                  Mediation Works
     Insight Prison Project                                       Empowers individuals and organizations to resolve their
     A community organization that believes community             differences peacefully. It teaches conflict resolution
     members need to play an active role in the prisons sur-      skills and provides mediation services, thereby building
     rounding a community. IPP is dedicated to creating and       understanding and respect in its diverse community.
     conducting effective programs for inmate rehabilitation      $13,000 — Empowering Incarcerated Youth
     and to support the reinstatement of rehabilitation as a      Medford, OR • www.mediation-works.org
     core operating principle within the penal system.
     $28,500 — General Support
     San Rafael, CA • www.insightprisonproject.org
Stop Prisoner Rape                                                   11
A national human rights organization seeking to end sexual
violence against women, men and youth in all forms of detention.
It works to advocate for policies that ensure institutional
accountability, to change society’s attitudes toward prisoner
rape, and to promote access to resources for survivors of sexual
assault behind bars.
$25,500 — Survivor Connections Project
Los Angeles, CA • www.spr.org
12
     Mission            The International Microcredit Funding Circle funds microlending institutions in regions of
                        the world where people are living in poverty. It directs funds through existing microfinance
                        institutions that primarily lend to women, and that provide training in business practices,
                        and if necessary, technical assistance. The funding circle seeks opportunities in which the
                        money gets recycled into a lending pool and becomes a permanent endowment for change.
                        Microlending empowers people with ‘an arm and a leg up’ to sustainable self-sufficiency; it
                        preserves their dignity and promotes self-esteem in the process, rather than providing a
                        handout, which can be disempowering.
14   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.
16
                     Climate Trust
                     $2,180 — General Support
                     Portland, OR • www.climatetrust.org
Threshold Foundation’s annual grants program includes two Core Grantmaking Committees — the Democracy             17
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               emergency or discretionary grants outside of the
with the submission of Letters of Inquiry (LOI)          annual grant cycle.
by organizations interested in seeking grants
                                                         Grant amounts typically range from $5,000 to
from Threshold Foundation. Threshold members
                                                         $25,000.
may sponsor organizations with a letter of
recommendation or organizations may submit an            Organizations seeking grants must have 501(c)(3)
unsolicited LOI. Threshold Foundation does not           tax-exempt status or 501(c)(4) lobbying status
match organizations with Threshold members for           from the IRS or must be exclusively organized for
sponsorship into the grantmaking process, but            charitable or educational purposes, inside or outside
all LOIs are given an initial review. From the LOIs      the United States.
the grant committees select a limited number
of organizations to which are sent a Request for
                                                         Applying for a Grant
Proposal (RFP). After reviewing the proposals, the
grant committees select a subset of organizations        The first step in applying to the annual grant cycle
for a site-visit and evaluation. Once the site-visit     is to submit an online Letter of Inquiry through our
and evaluations are complete evaluations are             website at www.thresholdfoundation.org. Note that
reviewed and grant committees finalize their grant       guidelines for applying to the annual grant cycle
recommendations to the Circle (Board of Directors)       often change, as we are continually trying to improve
in June. Grant agreement and funds are disbursed at      our process based on feedback from grantees and
the end of July.                                         committee members. Therefore, we recommend that
                                                         grantseekers visit the Threshold Foundation’s website
                                                         in August for the most up-to-date information
Grant Types and Sizes                                    regarding the deadline and application process for the
Threshold Foundation provides grants for general         following year’s cycle.
operating expenses as well as special projects.
Grants are primarily single year though occasionally
grants may be for two to three years. We do not give
     Endowment Investment Report
20   Board of Directors
     Threshold Foundation
     We have audited the accompanying statement of financial position of Threshold Foundation (“the
     Foundation”) as of December 31, 2006, and the related statements of activities and cash flows for the
     year then ended. These financial statements are the responsibility of the Foundation’s 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 Foundation’s 2005 financial statements
     and, in our report dated July 28, 2006, 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 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, 2006, 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
Balance Sheet
Liabilities
	    Grants payable	                           $ 6,525	      $ 10,000
	    Accounts payable 	                         13,771	        28,399
	    Refundable deposits	                        7,845	         7,000
Net Assets
	    Unrestricted net assets
	    General operations	                       325,998	       303,312
	    Designated for grantmaking pool	          207,295	       299,302
	    Designated for endowment purposes	      2,797,629	     2,698,680
	    Total unrestricted net assets	         3,330,922	     3,301,294
     Expenses
     	   Program services
     	   Grants	                                            1,137,425		                     1,137,425	       866,735
     	   Conference expenses	                                67,659		                         67,659	         46,870
     	   Network communications	                            185,194		                        185,194	        101,293
     	   Total program services	                       1,390,278	                   —	    1,390,278	       1,014,898
     	   Supporting services
     	   Grantmaking support	                                91,903		                         91,903	         85,450
     	   Board/corporate support	                           127,014		                         127,014	       122,362
     	   Total supporting services	                         218,917	                —	       218,917	        207,812
             Jane suffered many losses in her life, most painfully the death of her
             daughter, Janie, but kept on living her best. Jane loved her shore home in
             Ocean County, NJ, and was beloved in her home community of Simsbury,
             CT. She was a practitioner of bioenergetic analysis. Jane was the epitome
             of maternal love and sacrifice, giving up her freedom in her last years to
             nurture her grandchildren while encouraging what relationship they might
             have with their mother. She was a wise woman, always seeking to learn,
             a loyal friend with a charming sense of humor, and a loving mother and
             grandmother.