U.S. Endowment Blog

Working not Where the Light is Best; Rather, Where the Gains are Greatest PART 3 of 3

2012-01-17T08:32:00.000-05:00

Planning for a Viable Business
The first objective of any business must be to achieve economic viability. Without such it will not last. The jobs and commodity purchases won’t last. Taxable income isn’t generated…and, on and on. That’s why when the Endowment and North Star looked at a green, domestic energy facility scaled to fit the community, considerations included the potential to use tire-derived fuel (TDF -- the energy-rich material resulting from grinding discarded tires) as a supplement to woody biomass.

Matching TDF and Biomass: A Double Win
We opted to pursue a plan that would include not-more-than 20% TDF along with the overwhelming majority being woody biomass for two reasons. First, the energy-rich TDF will increase the energy output of the facility while increasing profit margin. Second, taking discarded tires out of the environment and turning them to a beneficial use addresses one of the nation’s most ubiquitous environmental challenges. And, all of this is accomplished while meeting rigorous EPA emission standards through a proven technology.

Looking to the Future
Permitting, constructing, and operating the facility are simply means to an end. The end in this case is an economically viable and stable corporate neighbor that creates family-supporting jobs (both direct and indirect), add to the tax base, generates significant cash flow through the local economy in the form of raw material and other facility needs, and provides an incentive for forest landowners to better manage their lands with an economic reward for doing so. But, perhaps the biggest and most lasting benefit from the facility will come in the targeting of profits to one or perhaps two of the areas’ most important social needs. The plans for these distributions will come as Community Wealth through Forestry works with the community to identify and develop specific plans to address those outcomes.

A National Model
While both North Star and the Endowment are excited to be working with the people of Jefferson County to test this new model designed to create assets that will not only remain in, but bolster, the community over the long run, our long-term vision is rooted in a hope that this model can and will be replicated in other rural communities across the nation. The result would be formally linking the interests of private businesses and the communities that support them in ways that go far beyond traditional means. Only time will tell, but we have our hopes and our dreams.

Carlton N. Owen

Working not Where the Light is Best; Rather, Where the Gains are Greatest PART 2 of 3

2011-12-30T08:23:00.001-05:00

“What are you looking for?,” asks a man seeing his friend frantically searching for something under a street light.
“My car keys,” comes the response.
The friend, offering to help says, “Where did you loose them?”
“Over there,” the response.
To which the friend, logically replies, “Then why are you looking for them here?”
“Because, the light is better here!”

Great Gains are Indeed Possible
In Part 1 of this Blog we noted that the Endowment and North Star Renewable Energy had intentionally decided to look at Jefferson County, Georgia, as the site of a national trial for a new ownership model for a domestic, green energy facility. We did so, not because the light was better in Jefferson County, but because it is a place where we think a sound investment can make a real difference.

With high unemployment and a much greater than average proportion of families living in poverty, even the planned 25 direct jobs that will provide family-supporting wages offer great hope to a significant number of families. Add that to wages that will circulate in the community – both from direct and perhaps 50-75 indirect jobs -- to the taxes that will be paid, and to the millions that will be spent annually for woody biomass and other supplies needed for the facility, and the gains begin to mount.

But, our plan goes even farther. Yes, sawmills and landowners will have additional markets for low-value wood, allowing them to enhance management and productivity of their forests, But we also plan to take up-to 40% of the profits that will be derived from the facility – the Endowment’s ownership via “Community Wealth through Forestry, Inc” (a wholly-owned subsidiary) – and plow them right back into the community.

Generating Assets that will Grow in and with the Community
Therein lies the potential of a national model. Most current private-sector businesses, take the majority of the wealth created and “export” them to their home location. In this case, under the planned joint-venture model, the facility will have deep roots that will ultimately be “owned” in some form by the community. One would expect those dollars to circulate many times within the local economy and help craft a future Jefferson County that exceeds national averages in new, and more positive, ways.

Carlton N. Owen

Working not Where the Light is Best; Rather, Where the Gains are Greatest PART 1 of 3

2011-12-13T17:22:00.000-05:00

Look out the Window

Darla Moore is known for her straight talk and ability to "dust it up" with the best of the good-old-boy network. In giving a talk to a group of citizens in a rural county in South Carolina, she asked those present where they thought their economic future lay. Answers ranged from aviation to high tech. Not limited by an overabundance of patience, Moore implored the group to "Look out the window! You build first on your primary asset. See those trees? That’s your future."

Philanthropist and economic develop advocate, Moore of tiny Lake City, SC (population 6500) stands apart from the crowd in many ways. First, she left "the backwoods" to do exceptionally well on Wall Street. Then, defying all expectations, Moore – and her riches -- moved back to Lake City where she directs her Palmetto Institute and works tirelessly to help her home town, county, and state craft a positive vision and actions for the future.

Jefferson County, Georgia: A National Model

As the Endowment has begun to work on a project to advance "asset creation" for under served and disadvantage populations (read poor and often of color), I’ve reflected on the comment attributed to Darla. We are in the early stages of working with the residents of Jefferson County, Georgia, where – if we are successful – this off-the-beaten-path area could ultimately host what best selling authors Chip and Dan Heath call a "bright spot." In short, our hope is to develop a shining light of positive progress resulting from a new business model.

Before getting into the basics of the plan, first visualize with me Jefferson County. The total population is just over 17,000. Trees – even whole acres of trees --outnumber people by nearly 15-to-1. Fully three-quarters of the rural landscape is cloaked in forest cover.

The hardworking people of this east-central Georgia area exceed not only state, but also national averages in several categories. It is a majority-minority county with fully 56% of the population being African-American. Poverty and unemployment are all-too-common with both far exceeding the national average. Families living below the poverty line are half-again more common than the rest of the nation and unemployment, anticipating another plant closure that has already been announced, will double that of the nation – expected to surpass 17% in the next few months.

Dumping vs. Investing

Some have questioned the Endowment’s plans to partner with for-profit alternative energy developer, North Star Renewable Power. The most cynical say that the county was targeted because its population is poor and heavily minority. The odd thing is the critics are right. The difference is intent. We, indeed, "targeted" Jefferson County, but not to "take advantage" of its people and its plight; rather, our hope is to try some tangible things designed to help reverse the downward trend.

Jefferson County is first and foremost a "forest rich" place. Even current private employment is heavily rooted in the forest. Among the most important businesses are family-owned Battle Lumber Company that produces hardwood lumber and flooring for global markets. Just up the road is Fulghum Industries working with international customers in the wood handling business, both paper and lumber. And , there is Cooper Machine which makes equipment for the sawmill industry. An outside expert might look at these three businesses, and the ubiquitous forests, and suggest that Jefferson County already has the makings of a "business cluster" – one tied to forests.

Enter the Endowment and North Star. Our plan is to develop a right-sized (scaled to fit the community and the forest resource) wood-to-energy facility that not only provides additional markets for waste wood and low-value timber, but also, that showcases the potential of linking a for-profit business with the long-term needs of the community through a significant equity investment designed to accrue financial gains that will stay within the community. The Endowment’s interests will be represented by its first-ever for-profit subsidiary – Community Wealth through Forestry, Inc. (CWF).

Carlton N. Owen

Dollars for Water and Water Quality Keep Forests as Forests

2011-11-28T09:03:00.003-05:00

A key component of the Endowment’s Theory of Change is to provide new value streams to forest landowners. One way we approach this is through our Healthy Watersheds through Healthy Forests Initiative. A path that we are pursuing in this arena is developing "payments for ecosystem services," and more specifically, payments for watershed services.

In this scenario, forested landowners who maintain a healthy, working, sustainable forest that protects water quality and that helps moderate water flow, such as flood protection, would be paid for those services, preferably by downstream water users.

The Endowment is funding four pilot projects in the East to better develop this concept, with an eye toward making payments for watershed services a commonplace activity. If successful this approach could potentially:

help conserve millions of acres of forested watersheds (an estimated 180 million American’s drink water that originates in a forested watershed);

generate new sources of income for owners of forested watersheds, helping them maintain and better manage their properties); and

reduce drinking water costs for the public (the cleaner the water coming into treatment facilities, the cheaper it is to treat it.)

One pilot project is underway right in the watershed where the Endowment’s headquarters is located. To tell you more about this program, we asked John Tynan, Deputy Director, Upstate Forever, and the Endowment’s grantee, to describe their efforts.

Peter Stangel, Senior Vice President, the Endowment

Saluda-Reedy River Watershed
In early 2011, the Endowment committed to match a $6,000 grant that Upstate Forever
(www.upstateforever) received through the Land Trust Alliance (LTA) to explore the feasibility of establishing a Clean Water Credit program in the Saluda-Reedy Watershed. 　The overall objective of our efforts was to assess if water and wastewater utilities in the watershed would compensate owners of forest and agricultural properties for conservation efforts or improved management practices because of the nutrient reductions that these activities provide.

The Saluda-Reedy is well positioned for this type of pilot project as it is at risk for forest cover loss, is facing increased regulation for nutrients, has been the focus of significant research and conservation implementation, and is an EPA priority watershed. 　Upstate Forever began by estimating the amount of phosphorus (the critical nutrient in the watershed) that may enter the watershed from each property. 　This will serve as a prioritization tool for the implementation phase of the project.

Finding Partners Support from the Endowment and LTA also allowed us to facilitate discussions with the core stakeholders in a Credit program. 　The largest wastewater discharger, one of the significant water utilities, and the state permitting agency, have all been supportive of the concept and committed to working through an iterative process to develop a functional system that will result in funding for conservation or improved land management and, in turn, reduced nutrient inputs to the watershed. 　

We are now researching existing nutrient trading program protocols throughout the country and plan to propose a project framework to the stakeholders in early 2012. 　We have also initiated a related project to identify possible pilot phase landowners. 　This related project is a 319 grant awarded from South Carolina Department of Health and Environmental Control that involves　outreach to and one-on-one work with local landowners to implement practices that will reduce nutrient runoff into Walnut Creek, a tributary to the Reedy River.

Small Grant Leverage Bigger Pots of Money The grant provides $370,000 in cash and is matched with $250,000 of private contributions (through cost-share or "payment for ecosystem service" funds). An integral and innovative component to the $620,000 project is the incorporation of payments for ecosystem services. 　Current cost-share models, such as the Environmental Quality Incentives Program (EQIP) Program offered through the Department of Agriculture’s Natural Resource Conservation Service, only provide funds to agricultural landowners for the initial cost to establish a Best Management Practice (BMP) on site.　

Traditional programs do not compensate landowners for lost revenue from the land placed into a BMP (for example, revenue might be lost because trees in a riparian buffer are not cu, to preserve their ability to hold soil and filter nutrients) despite the fact that the lands set aside continue to provide water quality benefits to the watershed.　 One component included in our 319 grant will allow us to provide yearly payments for ecosystem services to landowners to compensate for lost revenue as a result of BMP installation as well as for the ongoing ecosystem benefit that the BMP provides.　

It is Upstate Forever's hope that successful, on-the-ground improvements will result both from the 319 grant and the ongoing Clean Water Credit program funded by the Endowment and LTA, providing significant funds for improvement of the watershed and protection and improved management of workings forest and agricultural lands.

Written by: Peter Stangel and John Tynan
Approved by: Carlton Owen, the Endowment

The Convergence of National Security and Working Forests

2011-11-16T11:39:00.000-05:00

How might working forests contribute to national security? Providing "buffers" around military installations is one important opportunity that simultaneously supports the military’s training needs and that might also provide a much-needed revenue source to private forest landowners.

A Changing Landscape
When the military’s large training facilities were created decades ago, they were typically placed in rural areas with low population density, so that training operations would minimize the impact to local communities of the noise, fire, smoke, and other by-products of maneuvers. Over time, however, urban sprawl has increasingly brought people closer to bases. In some areas, housing developments extend literally to the edge of the fence. At the same time, new technology and weaponry is requiring even more space for the military’s training activities. This clash of needs has stimulated the Department of Defense to seek cost-effective ways to expand the area around their bases where training activities may safely be executed.

Private Forest Owners and the Military -- Cooperating for National Security
Given the prohibitively high cost of land acquisition, conservation easements and similar tools are becoming increasingly important to military planners. Because of the still rural nature of land around many bases, using easements to prevent development in these "buffers" is cost-effective and also provides income to the land owners. For many bases, particularly those in the South, this means working with corporate or family forest owners. The Endowment is helping bring together both the Department of Defense and forest land owners to explore mutual benefits.

The Endowment’s Partnership for Southern Forestland Conservation (ww.pfsfc.org), a group of more than 30 landowners, agencies, and non-profits, is now working with the Southeast Regional Partnership for Planning and Sustainability (www.serppas.org), a group of federal and state agencies, including the military services, on this issue. A Working Forest Task Force was created to study opportunities. This draft strategy is being reviewed and was presented to the SERPPAS leadership on November 9.

Watch this blog site for updates on the strategy and the Endowment’s plans to keep working forests an important part of the military’s base buffering strategy.

Submitted by: Peter Stangel, Senior Vice President, the Endowment
Approved by: Carlton Owen, President, the Endowment

A New Tree Grows in Greenville

2011-11-03T11:04:00.000-04:00

While we've been in our new "organizational home" since late May (with construction still going on), we had a formal dedication of the facility on October 28th in concert with our fall Board of Directors meeting. Dozens of community leaders, partners, donors, and vendors, joined the Endowment's Board and staff for a reception and tours of the eclectic space.

And, in keeping with the Endowment's "tree-centric" view of the world, instead of a ribbon cutting, we had a tree planting to commemorate the occasion. Contrary to the song, "we took down a parking lot and put up a tree..."

As reported in our June 3, 2011 Blog, driven by need to find additional space for an expanded staff and hoping to take advantage of the deeply depressed commercial real estate market, the Endowment opted to buy a long-abandoned building and rehab (recycle/repurpose) it for our offices. We met all of our goals plus some with the decision...

...We now have the space we need to conduct business;
...we were able to bring the project in with only a slight excess over budget but still at a cost that compares very favorably with rent; and,
...the facility which has hard floors and beautiful wood walls has had a noticeable positive impact on our staff members who suffer with allergies.

Here are just a few of the images from that wonderful evening.

Endowment Chairman Mack Hogans thanks Board and Community Leaders for Their Support while President Owen looks on. (That's not our building in the background)

Community Leaders Mark Taylor, President of SynTerra Corp (left) and Dr. Walt McPhail (right) Sign In for the Event

Endowment Staffer Florence Colby Leads a Tour for Vendor Partner Michele Perron

President Owen Explains Some of the Office Features

Board Members David Dodson (right) and Mil Duncan (center) Visit with Chairman of The Palmetto Bank, Leon Patterson (left)

Kevin and Becky Hatch (left) Read the Endowment's 2010 Annual Report While Touring

Minor Shaw of the Daniel-Mickel Foundation visits with John Warner of the SC Governor's School for the Arts and Humanities

If you get the chance to visit Greenville, it will be our pleasure to show you our home. Ya'll come!

National Conservation Easement Database Goes Live!

2011-10-11T08:15:00.000-04:00

When the Colorado legislature proposed in 2010 a cut in the tax benefits afforded to landowners looking to offer conservation easements on thier properties, local conservation organizations knew they needed to act fast. To create an economic foundation for conservation easements, the organizations set out to quantify the financial benefits of the environmental services provided by such easements. While accepted estimates existed for the economic benefit of various habitats spread across Colorado’s 1.4 million acres currently under conservation easements, the tricky question was how to quickly calculate the total benefit across the state.

A Tool to Support Sound PlanningEnter the National Conservation Easement Database. With a quick search, economists with the Trust for Public Lands were able to quantify land areas and in turn calculate the total economic contribution of those lands through environmental services. The total: $3.51 million in public benefits—clean air and water, habitat and wildlife protection, and open space representing a $6 to $1 return on investments made to conserve land, some of which came in the form of state tax credits.

NCED Uses Modern Technology to Advance Cause and Accountability
This result would not have been possible if not for the newly-released National Conservation Easement Database (NCED). The database, conceived of and funded by the Endowment, represents collaboration between five national conservation organizations in an effort to create a central location for up-to-date data regarding our nation’s conservation easements. While knowledge of easement size, location, and purpose was rarely available even at the state-level, NCED allows a user full access to a national database of conservation easement data, including spatial maps and GIS overlays.

The Value of Accurate Information
Accessibility of this information has implications spanning conservation, policy, and land management, and will lead agencies, land trusts, and other organizations to plan more strategically, identify opportunities for collaboration, advance public accountability, and raise the profile of what’s happening on-the-ground in the name of conservation. Of NCED, Endowment President Carlton Owen says, “While we know where public lands are, without comparable information on those lands subject to conservation easements, conservation planners—whether they be from the public or private sectors—are operating without all of the pieces of the puzzle. Such is like driving blind; it can be done, but it doesn’t offer much potential for getting to the desired location by the best route.”

Building the database involved the collection of physical attributes of individual easements—such as State, County, easement holder, easement purpose, size in acres, and year acquired—creating a multi-layered GIS dataset, searchable by categories.

Screen capture of easement data in Orange County, NC.

As of August 1, 2011, the database has compiled data on 80,756 individual conservation easements, representing nearly 18 millions acres of land. NCED contributors estimate this to be approximately 60% of all easements in the country. Easement holders and land trusts can easily add their own land data on the highly interactive website, http://nced.conservationregistry.org/.

Cameron Tommey
Endowment Special Projects Intern

ShadeFund Offers Options for Small Business

2011-09-13T15:48:00.007-04:00

ShadeFund is an Internet-based program designed to connect green entrepreneurs with capital from individual and corporate donors. The start-up investment came from the Endowment and the initiative is managed by The Conservation Fund.

Small Business is the Focus
ShadeFund was recently recognized in the U.S. Green Chamber of Commerce (USGC)'s August 31st e-newsletter as well as in a longer story on the USGC website. The article, "Searching for Green Capital?,” focused on the importance of financial contributions from governmental and private sectors for small start-up and entrepreneurial companies, particularly green businesses. Between 1993 and 2009, small businesses created 65 percent (or 9.8 million) of the 15 million net new jobs. A recent report from The Brookings Institute recognized that “currently the U.S. green economy employs 2.7 million workers across a multitude of industries.”

USGC Puts Spotlight on ShadeFund
With the current state of the economy, grants created through the stimulus package have disappeared. As a result, many businesses have approached the USGC for help in finding funding sources. ShadeFund is seen as a beacon of light and hope that there is still money accessible to green entrepreneurs (foresters, farmers, eco-tourist businesses, food and medicine naturalists, and small-scale renewable energy producers).

“The ShadeFund was designed to help green innovators get the funding they need to move their business forward when their personal resources run out, or when banks fail to support their small business ideas,” -- Rick Larson, The Conservation Fund.

Loans of $5,000-$50,000
The ShadeFund lends $5,000 - $50,000 to green entrepreneurs across America so they can expand their business and create jobs. “ShadeFund grew out of the need to invigorate the growing U.S. green economy,” said Larson. “The future of American business will be green, but only if our entrepreneurs can get the “green” (capital) they need to grow.”

Be a ShadeFund Supporter!
If you’d like to be a ShadeFund supporter and help a green entrepreneur build the economy of the future, visit http://www.shadefund.org/ and make a donation.

Michelle McGee
Endowment 2011 Intern

Two Great Gifts: Wood and Woodworkers

2011-09-06T20:53:00.000-04:00

A group of America's hardwood producers have voluntarily come together to develop a tagline designed to promote the tradition, warmth, and value of their products -- "American Hardwoods: Treasured for Generations."

America is truly a country built on wood. The first European-Americans landed to find towering forests comprised on not just mighty oaks but tall pines as well. What appeared to be an endless store of wood provided shelter, furnishings, heat, food, and more.

Hand-me-downs Everyone Wants
Like most Americans some of my family's most prized possessions are wooden boxes, trunks, and well-worn furniture handed down from generation-to-generation. Wood and wood products are without peer as inanimate objects that provide fodder for the stories of life.

We at the Endowment were recently granted two new "gifts" of the forest. We asked the Greenville Woodworkers Guild (www.greenvillewoodworkers.com) to come to our aid so that we could re-purpose some salvage items from our recently remodeled office and to make useful objects from surplus hardwood plywood panels left after panelling some of our walls.

The Results are Outstanding
We couldn't be more pleased with the results! Among the first of five requested small projects was an attempt to turn a poorly-placed building support column into a useful tool. The result is a small break table now surrounded by re-purposed fountain stools that once supported patrons at the Little Princess Restaurant's main dining counter (see related Blog of June 3, 2011). The "gifts" to the Endowment aren't just the "new" heirlooms that adorn our home, but also, the blessings of having talented artisans share their skills.

Use It or Lose It Applies to Forests Too

2011-08-08T14:34:00.001-04:00

Some readers probably thought that the April edition of this Blog -- "Save a Forest: Print Your Emails" -- was an April Fools' joke. Not so then nor now.

A recent book released by the USDA Forest Service, Forest Products Laboratory points to the importance of sound and vibrant markets for wood if forests are to be conserved over the long-term. The book, Sustainable Development in the Forest Products Industry, notes what appears to be a contradictory conclusion as does our April Blog.

Data Differs from Feelings
"The historical data we examined in this study support the hypothesis that an economically vibrant industrial forest products sector has been key to forest policies and forestry practices that support sustainable timber supply and demand," notes author Dr. Peter Ince.

Drawing from Ince's work, the Summer 2011 Issue of the Forest Products Laboratory's Newsline, notes that "If a forest is providing only low-value wood, such as fuelwood to heat homes or cook meals, there is less incentive for sustainable management. Such lands are also likely to be converted into a more profitable venture, such as agriculture, grazing, or development."

America's Forests Amazingly Stable in Face of Use
Forests across the United States were once cleared with abandon to supply materials to build homes, railways, or provide places to grow crops. Those changes drove real deforestation -- permanent conversion of forest to non-forest uses. Yet, over the past century, even in the face of burgeoning population growth, the overall forest estate has remained remarkably stable. That in a nation that still relies heavily on forest products. One need only look at the tens of millions of homes built in recent decades and the mountains of paper-based publications (books, newspapers, etc.) to see that forest use continues while forestland remains.

Lack of Use is a Bigger Threat than Too Many Uses
In a nation where fully one-third of our lands are covered by trees and more than 300 million citizens depend on them for traditional wood and paper products -- not to mention wildlife habitat and the source of drinking water for more than one-half the population -- it is the lack of markets for forests that should be of concern not the threat of over-harvest.

One need only look to Colorado, a state that has lost dozens of mills and now has millions of acres of dead and dying trees due to a devastating mountain pine beetle epidemic, to see one picture of what a future with limited harvesting and manufacturing infrastructure holds. There the Forest Service and other landowners must spend hundreds to thousands of dollars per acre to "manage" forestlands that heretofore generated income rather than served as money pits.

Complex Issues Require Complex Solutions
No doubt one can identify a few places where the problem is too much market demand putting too much pressure on forest sustainability. That said, the most common problem for the nation's forest landowners -- be they public or private -- isn't one of too many markets; it's just the opposite.

Results from Sustainable Development in the Forest Products Industry adds support to the Endowment's belief that our best hope of ensuring healthy working forests and the family-supporting jobs that they provide, is to find more and better ways to support a vibrant forest products sector. In our view such a vision includes traditional sawmills and pulp and paper production as well as markets for wood-to-energy as well as high-tech chemicals and pharmaceuticals.

The Committed Class

2011-07-01T15:22:00.000-04:00

In their best seller, Switch, Chip and Dan Heath talk about making change when change is hard. In an uncertain world where everything around us seems to be in chaos -- the potential of government default on its financial commitments due to Congressional impasse; protracted wars on three fronts; and an economy that just can't seem to get on track -- how can rural, forest-reliant communities move to a brighter future?

Ingredients Necessary for Successful Change
Many researchers and writers have developed lists of necessary ingredients or steps to successful change. Among them, clear vision, adequate resources (people and financial) and more. But, what if we tried to boil it down to that one vital key to successful change? What would it be?

Richard Florida, author of Rise of the Creative Class, points to the importance of young, educated, creatives as a class needed to advance positive change. These bright, young, artistic thinkers no doubt help. But, what if you live in a community that doesn't attract a steady stream of those illusive creatives? Is all gloom?

Those Who Refuse to Give Up
There is one critical ingredient necessary to success in any significant change. Simply stated, at least one or more people must be "committed" to making it happen. It's not enough to have a great idea or hope that someone else will step forward. It's the presence of what we might call the "committed class" -- those who regardless of age, education, wealth, or talent, simply pour themselves into the task at hand -- that make the difference.

In the Endowment's hometown of Greenville, South Carolina, we recently lost one of the committed class that put a sleepy, southern textile town on the path to renaissance. Max Heller, an Austrian who fled his Nazi-occupied homeland, was by all accounts someone who didn't include in his vocabulary "can't" or "impossible." Instead, Heller, would set about often risky steps to change his adopted city for the better.

Across America in villages small and large, there are the Max Heller's -- the committed class -- who refuse to acknowledge barriers. They don't spend their time on inventories of the risks or assessing what they don't have. Like John Wayne at his best, they show true grit and just do it.

Giving Aid to the Committed Class
Who are the members of the committed class in your town? What can you do to help lift them up and spur them on? Ronald Reagan helped a generation of Americans turn from looking only at problems by instead focusing on a vision and a future -- a bright shining city on a hill. The committed class don't have to have the charm or sales ability of a Reagan, but they do have to be ready and willing to give their all to their cause.

Endowment Deepens Roots in Greenville

2011-06-03T21:59:00.000-04:00

First generation Turkish immigrant Alex Kiriakides opened his Little Princess Restaurant in Greenville in 1975. For more than 15 years it was an icon for the breakfast and lunch crowd in a small city with relatively few eating establishments. What once was an easy-to-access restaurant location became a hard-to-enter site as highways were realigned. In 1990 the Little Princess closed for the last time. The building that had housed a once vibrant eatery sat vacant for more than two decades. Poor access and zoning changes seemed to doom the location to remain just another deteriorating eyesore. But then something changed.

On June 1, 2011, the U.S. Endowment for Forestry and Communities opened its new headquarters in the repurposed building. The added space – double that of the organization’s previous leased space just a half block away –better meets the needs of Greenville’s largest foundation.

Doing Well While Doing Good
The long-vacant restaurant building sitting on a quarter-acre along the city’s primary gateway offered the Endowment the chance to advance three causes with a single action: 1. Better meet space needs of the growing organization; 2. Live the organization’s values by showcasing sustainably produced wood products and an environmentally-friendly footprint; and 3. Give back to our hometown through rehabilitation of a highly-visible property.

Meeting Space Needs While Stewarding Financial Resources
The Endowment’s leased space served the original three employees well for four years. But, with the addition of two new team members and a continuing commitment to an Internship Program, there was little question that added space was a must. The new plan doubles to 2500 the Endowment’s space. A dedicated conference room, break space, and adequate room for all of the team, is welcome by all.

But what of the decision to purchase versus rent? Is that a good decision for an Endowment that should be focusing its resources on mission? The Endowment’s staff and Board studied and debated that issue long and hard. We believe the decision to purchase is extraordinarily sound on a number of fronts.

First, rented space still costs money and it is rarely configured or flexible enough to meet an organization’s needs. That’s surely been the case for the Endowment. While we looked at many options, few fit well and many came with high per foot price tags and added costs for parking. Too, leased facilities often necessitate fairly frequent moves either to meet the organization’s changing needs or to address plans of the landlord. Moves are highly disruptive and extremely expensive.

Second, the Endowment was able to not only take advantage of deeply depressed real estate prices but to also help pump needed jobs and cash into the local economy as part of the rehab initiative. Low interest rates made a loan even more attractive than using funds from the Endowment’s corpus. In fact, monthly mortgage payments will be less – about 23% less on a square foot equivalent basis – than renting even if the Endowment could have obtained similar sized space at the same attractive rate. But, there is a significant upside. In 15 years the Endowment will own the building free and clear and one would expect that its value would be significantly greater than the purchase price. So, on the numbers side alone, purchase was clearly the better option.

Living Light on the Land
The opportunity to repurpose and bring new and better life to an old building, has been greeted with excitement by staff and the community. Rather than implode the old structure we opted to reuse and recycle all that we could to reduce our overall impact on the environment.

On the “reuse” side after assessing the value of old cooler units and kitchen equipment, we opted to donate most of the fixtures to a family-owned restaurant – Manna Deli – that was relocating and rehabbing its own facility. We retained a few items for our own use. We also opted to retain the original tile floors so as to avoid addition of carpet and associated upkeep and health issues (allergy factories) that follow.

We had a strong commitment to recycling all that we could. After a search we found a facility that would accept the old ceiling tiles and we reclaimed all metal for sale to a scrap yard.

Right-sized heating and cooling systems with high-efficiency ratings along with an upgraded roof and interior insulation will significantly reduce overall energy use. Skylights will enhance employee use while further cutting need for artificial light.

A roof-top rainwater harvesting system will ensure non-potable water for all exterior needs as the impervious surface and parking was cut by more than two-thirds to soften environmental impact. Among the gains will be a “cooler” property – both in terms of look and summer temperatures due to native tree and shrub plantings – and significantly reduced stormwater run-off.

On the materials front the Endowment opted for a very functional look and feel to minimize costs and to offer maximum flexibility. Open ceilings give an eclectic warehouse look but significant use of wood in the form of hardwood panels and a custom front door, add warmth and beauty from the forest. For the few walls that would have been built using steel studs, we opted for locally-grown and milled pine 2x4s.

We can’t thank our wood products friends enough for their generosity. Their donations helped keep down the cost while allowing the Endowment to showcase sustainably produced wood products. In that regard, Columbia Forest Products provided walnut and maple hardwood panels that were used throughout the office space and conference room; Cox Industries provided all softwood lumber for behind the scenes construction and screening; Norbord added oriented strand board (OSB) to support the new façade; and Sweeney Hardwoods/ResDoor and the National Hardwood Lumber Association provided the custom walnut door that serves as our primary entrance. Lowe’s Home Improvement via its Cherrydale location provided miscellaneous wood products to complete the job.

We couldn’t have done the job without support of the Greenville Water System that led to the rainwater harvesting system.

Playing an Active Role with our Community
Greenville is our home and we want to give back where we can – something not likely on the grant front. The once “Textile Capital of the World” has over the last quarter century seen a rebirth that City Manager John Castile calls “the magic of Greenville.” The transition from city in decline to renaissance is founded on vision and a broad public-private partnership.

The Endowment’s decision to purchase what some considered a white elephant and give it new life as an office complex was viewed by some with skepticism but by City leaders with gusto. In fact, the Greenville Local Development Corporation, a non-profit entity working with the City and the private sector, provided a significant financial grant that helped off-set some of the costs for the building’s new face and front yard.

Greenville is a series of stories and events where one action has led others to pick up the cause and aid in the overall rejuvenation. The Endowment‘s decision has already led to one potential spill-over effect on a neighboring property. The Kiriakides family used funds from the sale of the Little Princess to purchase of an adjoining office building that when combined with abutting property that they already owned, offers a parcel large enough for future redevelopment.

Next time you are in Greenville, please stop in. We’ll be happy to show you our “home.”

A Tale of Two Watersheds

2011-05-02T10:15:00.002-04:00

Imagine a community that had such foresight as to purchase two entire watersheds so as to have control over the destiny of its water supply. Imagine now that such decisions were made more than three-quarters of a century before there were serious concerns about water quality or quantity.

If you are with me, you are seeing my adopted home town of the past 21 years -- Greenville, SC.

A Vision for the Future
In 1890 Greenville built a small reservoir on the side of Paris Mountain just north of the City, to supply its-then 8600 residents with water. A second reservoir was added just nine years later. But, the breakthrough came in the 1920's when the system's water commissioners had the vision to purchase an entire watershed -- the first wholly-owned public drinking water reservoir/watershed in the nation. A second reservoir and watershed were added in the 1950s.

Today, Greenville's Water System fully owns 26,000 acres -- protecting two entire watersheds that supply much of the water for nearly 400,000 users. Greenville is known for having some of the cleanest, sweetest, freshest mountain water in the world!

What were the ingredients that led to Greenville's early success? Clearly visionary leaders committed to intergenerational thinking.

A Modern Saga
As Paul Harvey said, "Now, the rest of the story." In 1985 to meeting growing needs, the system accessed Lake Keowee -- a large mountain reservoir developed by Duke Energy for power production. While most Greenvillians think that 100% of their water comes from protected forest watersheds that are not only unmanaged but also restricted to all public access, the truth is different. Only 50% of the water comes from system-owned watersheds. The remaining one-half -- and growing -- comes from Lake Keowee...a lake with few restrictions on recreational use, home building, and rapid development occurring throughout the watershed.

So, what we have is not the tale of two cities; rather, the tale of two visions and watersheds. One where the past was assured and a future where the quality and quantity of water is left to chance unless the Greenville Water System and others adopt a forward thinking strategy to ensure that Lake Keowee doesn't become a highly-developed and polluted body of water.

Pay me now or pay me Later
Looking ahead, two things stand out when thinking about trying to change a system that has been in place for decades. First, we've all been able to obtain clean, safe, potable water in near unlimited quantities at far below its real societal value. Obviously, we can't expect people to "increase assessments on themselves" in such an anti-tax environment. But, is that true?

A couple of things give great hope that we can indeed turn the corner toward a brighter future. First, we draw encouragement from the literally hundreds of local land conservation ballot initiatives that are being adopted across the nation -- in red states as well as blue. In well over three-quarters of those cases, citizens say on one hand "don't raise taxes/cut public spending," but then they vote for local assessments.

It is the "local" that is perhaps the key. Most people are skeptical about sending money to the state capital, much less the federal one. Yet, we remain highly concerned and committed to our own back yards.

Secondly, let's look at consumer spending habits. While a gallon of some of the best tasting water in the nation goes for about 2.5 cents per gallon when purchased from the Greenville Water System, consumers in Greenville and elsewhere show little restraint in paying significantly more for an inferior product.

For instance, the average consumer will pay between $1.39 and $1.89 for a liter of off-brand water at the average grocer. Pay tax on that bottle and convert to full gallon price an it is equal to $6.10 -- or almost 250X what the best tap water costs.

But, let's not forget places like Chicago O'Hare Airport. There water comes at a bit of a premium. We tested and found it approaches $23.00 per gallon! Nearly 1000X tap cost!

Final Thoughts
Thus, if we look at "bright spots" across the nation -- places that are working to protect their drinking water, one must ask what we can do to extend those bright spots to more communities to ensure a brighter future for water, watersheds, and Americans everywhere?

We know that there are many different tools and mechanisms that could help, but in the Endowment's approach to its mission, we believe that systemic, transformative and sustainable changes are necessary.

So, together, we hope that we can extend and greatly increase progress of linking every American to their source of water ... and that by so doing we can advance the health of watersheds across the nation. While our core interest is in the one-third of the nation that is forested, these same ends hold in all watersheds whether they be covered by range or rocks.

Using Dan and Chip Health's "bright spots" approach from their best seller, Switch, if we can connect people with the water in their "backyard," and if we can do so in ways that show real value and gains locally, we can make a difference.

We and our co-sponsors have asked you to help us think more deeply about actions that we, you, and others can take together to advance the cause of water and its broad benefits to society. While we don't want to get into the science and politics of climate change, we know that humans can adapt to a hotter planet. It may be uncomfortable and inconvenient, but we can/will adapt. But, there are some base needs like water that cut across differences of race, color, creed, or economic status.

We all need clean, safe water. It is at its best when it is locally available and secure.

Let us end with one of the most often quoted statements from anthropologist Margaret Mead. "A small group of thoughtful people can change the world. Indeed, it's the only thing that ever has."

Our hope is that this small group, and this time and place, will be the start of one of those important times of change for our world...starting right at home.

This blog is excerpted from opening remarks provided by Endowment President Carlton Owen as he addressed a convening on "Healthy Watersheds through Healthy Forests" in Chicago, April 13-14, 2011. The convening was sponsored by the Endowment along with the Weyerhaeuser Family Foundation; Kelley Family Foundation; Knoblock Family Foundation; American Forest Foundation; Sand County Foundation Bradley Fund; and the USDA Forest Service.

Save a Forest: Print Your Emails

2011-04-04T12:38:00.010-04:00

Well-intentioned email taglines inspired by sincere desire to help the planet have become ubiquitous in recent times: "Please don't print this email," "Save trees: Print only when necessary," or "Please consider the environment before printing this email."

However, the World Wildlife Fund has taken this to the extreme with a new nonprintable electronic document. Patterned after the highly successful PDF (Portable Document Format) that has revolutionized electronic document sharing and storage, the WWF format takes the decision away from you.

This tact is sure to frustrate and increase inefficiency, leaving some saying, "Wait a minute, I really needed to print that document!" What many folks don't realize is that it also may indirectly hasten the conversion of forests to other uses like strip malls, parking lots and housing developments -- because the nation's forest landowners can't keep growing trees without markets for this natural, organic and renewable product.

Chuck's email tagline reads: "Notice: It's OK to print this email. Paper is a biodegradable, renewable, sustainable product made from trees. Growing and harvesting trees provides jobs for millions of Americans. Working forests are good for the environment and provide clean air and water, wildlife habitat and carbon storage. Thanks to improved forest management, we have more trees in America today than we had 100 years ago."

Now, understand that we don't advocate the wanton waste of paper or any other material, but avoiding the print option does absolutely nothing to save the planet or forests. More forests are dying of insect infestation and disease or being pave over across this country right now than could be converted to an email print-out in a thousand years.

Paper is good. Around 105 A.D., man discovered that paper traveled and transcribed better than stone; it became the renewable medium of choice. Frankly, the human eye can only stare at a computer screen for so long.

We appreciate and applaud people who are sensitive to environmental issues. We both love forests and are avid environmentalists. But we are going to continue to print out those necessary emails without guilt.

Honest, it's okay to print. Trees are renewable, recyclable and sustainable.

This Blog originally ran as an Op-Ed in the March 31, 2011 edition of the Wall Street Journal (Page 17). It is co-authored by Mr. Chuck Leavell a musician, tree farmer, environmentalist and author; and Carlton Owen, a forester, wildlife biologist and CEO of the U.S. Endowment.

Routine Emergencies and America's Forests

2011-03-01T11:01:00.002-05:00

My recent flight from Indianapolis to Charlotte was capped with extra excitement as the pilot executed a rapid pull-out just prior to landing. With clear weather, most passengers likely assumed as did I, that another plane had inadvertently crossed the active runway. Nearly 10 minutes passed as we continued our climb and then started the turns to take us back into the landing pattern.

The pilot finally came on with, "Folks, we have a 'routine emergency.' We've lost our flaps and will have to land using only brakes and reverse engine thrust." He continued with other less-than-soothing assurances. "We practices this type of landing all the time in the simulators. Don't worry about all of the fire equipment that will be visible as we land."

Other than a few accelerated heart rates and the delays and missed flights that followed, the only lasting legacy of the event was the odd combination of words -- "routine emergency."

Are America's Forests Experiencing Routine Emergencies?
America is blessed with some of the most diverse and productive forests in the world. Yet, those forests are plagued by challenges. It is true that total forest acreage has remained relatively constant over the past several decades -- no small feat in the face of a population that has grown by more than a dozen South Carolina's in just 20 years ... 58 million more people with no added space.

Recent USDA Forest Service projections suggest that as many as 57 million acres -- about 7.5% of the nation's total forested estate -- will be subjected to increased housing densities by 2030. Yet, there are two less visible threats that some would consider routine and others dire emergencies: forest health and the loss of markets for wood and fiber.

Threats to the health of the nation's forests fall well outside of historical norms. The Forest Service reports that nearly 12 million acres -- again almost the total amount of all forests in the State of South Carolina -- were lost to mortality in 2009. And 2009 saw an increase of nearly 3 million acres over 2008. The oxymoronic aspect (aka "routine emergency") facet of these challenges is only exacerbated by the closure of dozens of sawmills and pulp & paper mills from coast-to-coast. Without markets to provide economically-viable tools to manage those forests, losses to pests, diseases and in some cases extraordinary wildfires, are often the unintended result.

Growing Recognition of the Importance of Markets -- Too Little; Too Late?
Many concerned about forests -- environmental groups and average citizens -- have often equated harvesting of trees with forest destruction. No doubt, some practices of the past (over-harvesting and high-grading) contributed reality to that perception. But, today, in the face of enlightened self-interest by forest owners who don't want to slay the goose laying the golden eggs; with all states having active forestry agencies -- some with stringent regulatory authority; with outright forest loss being a far more daunting threat than sound forest management; America's forests face new challenges.

We at the Endowment believe that if we are to retain America's bountiful forests, we must make progress in addressing existing and emerging challenges to forest health exploding in the face of globalization and climate change. Too, we believe that markets -- diverse and vibrant ones for traditional as well as emerging products and services -- are among the best tools in the tool box.

Americans and Open Space Conservation

2011-02-02T14:39:00.000-05:00

Want to know what someone's "real" interests and priorities are, just look at their calendar. Or, as the old adage goes, look at their checkbook. Another way of saying it is "follow the investment -- whether time or money."

In the most tumultuous of times in American political history the pundits and those running for political office tell us that Americans won't stand for paying another dollar in taxes. But is that really the case?

In the most recent elections -- November 2010; clearly an anti-tax environment -- according to the Trust for Public Lands, those crazy American voters approved an overwhelming 80% of all ballot proposals in support of conservation funding! Twenty-eight of 35 proposals were passes with votes ranging from 59% in Maine for a statewide bond providing for investments in land conservation and the preservation of working waterfronts and state parks to 71% in very conservative South Carolina where votes in Dorchester County approved $5 million in bonds to buy parkland, trails, and wildlife habitat.

Is this an Aberration?
One might consider the votes of 2010 an aberration but such would be a big mistake. In fact, the numbers differed only in that they were higher than a long-term trend whereby open space conservation initiatives typically are passed at the rate of 3 of 4 considered.

What does this Mean?
Without the benefit of rich and expensive studies, perhaps there are a few conclusions that are warranted. While few voters are supportive of sending more tax dollars to Washington and beyond, they seem to be very concerned about what is going on right in their backyards. In short, people are very concerned AND willing to pay for the quality of life close to home.

It is encouraging to see that a growing number of Americas also are coming to an understanding that conservation doesn't just mean "buy and set it aside." Rather, many of these self-assessed funding initiatives are designed to promote conservation of working farms, forests, and ranches. Perhaps there really is a way to "have your cake and eat it too" by 1) keeping lands on the tax rolls and providing jobs and commodities to meet consumer needs; 2) while also ensuring that those lands will retain their important ecological and broader societal benefits such as open space, wildlife habitat, and clean air and water -- what some call the "natural infrastructure" or environmental "services" that lands provide.

It may be too that many are beginning to look at the future through the eyes of their grandchildren and come to the conclusion that we must do a better job if we are to leave future generations with options and a quality of life. Whatever the real reasons, it is interesting to note that this trend has continued for many years in good economic times and in bad. There must be something there.

2011: The Year of the Rabbit ... and Forests

2011-01-03T14:36:00.000-05:00

The Chinese calendar recognizes a dozen animals on a rotating basis each with their special "year." Last year was a very powerful one with the tiger holding the seat of honor. As we approach Chinese New Year 2011 (February 3), the rabbit will take center stage.

Similarly, the United Nations (UN) establishes a cause for annual global recognition and attention for its member countries. With a pre-planning schedule that is the envy of even the most obsessive scheduler, the UN voted in December 2006 to make 2011 "The International Year of Forests."

UN General Assembly Resolution 61/193 set as preamble, "Convinced that concerted efforts should focus on raising awareness at all levels to strengthen the sustainable management, conservation and sustainable development of all types of forests for the benefit of current and future generations,"

1. Decides to declare 2011 the International Year of Forests;

2. Requests the secretariat of the United Nations Forum on Forests of the Department of Economic and Social Affairs of the Secretariat, to serves as the focal point for the implementation of the Year, in collaboration with Governments, the Collaborative Partnership on Forests and international, regional and subregional organizations and processes as well as relevant major groups;

3. Invites, in particular, the Food and Agriculture Organization of the United Nations, as the Chair of the Collaborative Partnership on Forests, within its mandate, to support the implementation of the Year;

4. Calls upon Governments, relevant regional and international organizations, and major groups to support activities related to the Year, inter alia, through voluntary contributions, and to link their relevant activities to the Year;

5. Encourages voluntary partnerships among Member States, international organizations and major groups to facilitate and promote activities related to the Year at the local and national levels, including by creating national committees or designating focal points in their respective countries;

6. Requests the Secretary-General to report to the General Assembly at its sixty-fourth session on the state of preparation for the Year.

The Endowment Accepts the Challenge
Not surprisingly, we at the U.S. Endowment for Forestry and Communities, think that on this issue, the UN is right on target! While forests aren't the only issue in the world, they definitely are among the most important. As sources of the world's greenest of all products (wood and paper), homes to nearly incalculable wildlife, the sources of clean water for hundreds of millions of the world's human residents and places for recreation as well as spiritual re-creation, we think forests are worthy of recognition and honor.

Forests and Americans
As the work of the Endowment centers almost exclusively on those forests that fall within the borders of the United States, with an occasional joint-venture across the border with Canada, we don't have to think long or hard about the importance of forests. North America is indeed a continent of forests with cultures deeply rooted in forests. From the King's Trees (white pines) of New England to the once ubiquitous American chestnut that blanketed the Appalachians to the bald cypress swamps of the deep south to the giant redwoods and sequoias of California, tree cover blankets fully one-third of the nation.

But even where forests were not the natural dominate vegetative cover, wherever our people have gone so too have trees and forests. What American city doesn't have an Elm Street, Oak or Maple? We've learned that urban forests not only make our yards and cities more beautiful, but they make them more livable as well. Trees serves as natural filters for our rain and air, they lessen the blast of heat in the summer and cold winds in the winter.

The Year Ahead for the Endowment
Our work is rooted deeply and daily in forests. That won't change. However, as one of our organizational commitments to the International Year of Forests, we will be more intentional about sharing our approach to forests and the people that they serve through a monthly installment of our Blog to share more about what we are doing to advance sustainable forestry and the needs of those people nested within forest-rich environments.

So, to all Americans everywhere, "Happy Year of Forests!"

Growing the Market for Sustainably Produced Wood Products

2010-11-18T10:06:00.000-05:00

Through November 30, 2010, the USDA Agricultural Marketing Service Research and Promotion Branch is accepting public comments regarding a proposed Softwood Lumber Research, Promotion, Consumer Education and Industry Information Order. Following are excerpts from the Endowment's comments on that proposed order.

Among the first initiatives undertaken by the Endowment was a study that led to the report, "Commodity Check-off: The Potential for North American Softwood Lumber." The study led to the creation of the Blue Ribbon Commission for Softwood Lumber Check-off (BRC). At that point the Endowment was joined by the BiNational Softwood Lumber Council (an industry support group also created under the Softwood Lumber Agreement 2006) in advancing and providing financial support to the BRC.

The Need for Check-off

Grow the Market for Renewable Products: North America is a continent of forests and a society founded on forest products. In spite of the fact that wood is the greenest of all building products, it has increasingly lost share to competing products (e.g. steel, plastic and concrete) that are not renewable, require greater energy consumption in production and have more environmental impacts. The widely fragmented forest products sector has never been able to mount and sustain a broad-based research and promotion program to grow its markets due to lack of broad participation in underwriting those activities. A USDA check-off is the only solution to remedy this situation.

Provide Markets to Encourage Management of Forests: North America is plagued by increasing forest health challenges driven by globalization and climate change. Varied and vibrant markets for forest products are the most important tool in providing outlets that encourage and allow forest owners to appropriately manage their holdings. A strong promotion program funded by a check-off will stimulate new and increased demand for forest owners' products, and the expanding revenue streams that will flow from this will support management required by new forest health challenges.

Focus on Growing: An Indisputable Business Case: We believe that one of the greatest gains from check-off will come in improved relations between the U.S. and Canadian industries through a laser-like focus on the all important need to grow markets for the good of all. North America's forest industry has long experienced conflict between the U.S. and Canadian systems, which continues today. While these issues go unresolved, competing products continue to take market share from wood. Both countries and their respective industries will benefit greatly from a collective focus on growing the market pie through a powerful promotion program funded by a check-off.

Family-Supporting Jobs in Rural Communities: By their very nature the growing, harvesting, manufacturing and renewing forests and forest products are rural. The forest products industry has been one of the most important pillars of rural community life through provision of family-supporting jobs. Growing markets through concerted research and promotion will retain and create needed jobs.

Keeping Forests as Forests: Forests blanket one-third of the United States and those forests are held primarily by families -- some 11,000,000 of them. If we hope to retain those non-public lands as forests for the many benefits they provide to society (e.g. sources of wood products, homes to wildlife, places for recreation, providers of water, etc.) it is important that we provide the economic incentives -- markets -- for those trees when landowners need to sell to meet their management and economic objectives. A check-off can be a strong driver to maintain forests as forests.

Check-off: Extending Lessons from Traditional Agriculture to Forests
American farmers have shown for decades the importance and power of collaboration to grow markets for their products. The literally hundreds of millions of dollars that have been provided through voluntary self-assessments under check-offs have led to new products and markets through research and expanded consumer understanding, appreciation and use. We feel strongly that the forest products industry as represented by softwood lumber producers domestically and those from around the world who wish to access the U.S. market will benefit greatly from adoption to check-off.

Staffing for the Future

2010-07-09T14:50:00.000-04:00

From inception in late 2006 until just recently the Endowment operated with what we believe is the leanest staff model in our peer group. That model -- three full-time staff and a rotating university intern; later augmented with a part-time financial consultant -- served us well through our start-up and early program implementation phase.

As we've learned more about how we can best achieve our mission and stick to our niche, the Board and staff have been looking at options to ensure that we can meet the needs of the future. Our leadership began discussions in mid-2009 and presented a staffing plan for the Board late that fall. After thorough discussion and review the Board agreed that it was time to make some adjustments. As a result, we beefed-up the finance role and added depth to the program staff. Those changes, which we'll address in a bit more detail, position us well for the next several years.

Getting our Financial Systems in Order
The Endowment began like few other organizations with a one-time infusion of funds that had to be placed under management all at once. While many organizations have the benefit of a "quiet period," often of three years or more to allow the corpus to grow, the Endowment had no such buffer. Our overhead costs began on day one even as we were just starting to consider how best to achieve our challenging missional objectives. Timing is everything. Our entry into the market allowed us the all-too-brief euphoria associated with the upward ride of an aging bull market; followed by harrowing declines associated with the "Great Recession."

But for the wisdom of a Board that had adopted a "down market" programmatic investment spending plan before the market declined, things would have been even more chaotic. The good news of the saga is that we have been very successful in forging strong partnerships that have allowed us to "leverage" our diminished spending potential to still have a total impact near that anticipated pre-market decline. In short, we've been able to commit nearly $40 million to missional investments.

The flip side of that coin is that each of those partnerships -- especially those with federal agencies -- has added complexity and need for additional review and controls. Thus, we "up-graded" our part-time Chief Financial Officer role to a full-time Director of Finance. Kim Morgan, a deeply experienced CPA, joined us in March to help steer the financial ship day-to-day.

Re-directing and Expanding the Program Team
The Board also agreed that it was time to add some all-star strength to the program team that had been represented by significantly less than two full-time equivalents of the original three-person model. We began with a commitment to add senior experience. With the addition of a Senior Vice President who brings rich program experience augmented by a re-direction of our community development program, we were able to do just that. These two new team members -- Peter Stangel and Alan McGregor -- respectively, along with our President who also serves a dual role as a program officer, position us well for the future. Each brings significant experience and a proven record of success.

Stirring the Technology Pot
As if adding three new faces to a five-person staff model all at once wasn't enough, we determined that is was also time to up-grade our information technology systems. That transition has proven challenging but holds significant promise of better days for those who survive the journey.

The Future is Now
As we begin the second half of 2010 -- which coincides with the second half of our fourth year as an entity -- we believe we are well positioned to serve the needs and challenges of these trying times. Our five full-time team members are individually and collectively excited to be granted the privilege of being a part of the important work being undertaken by the Endowment and our partners. Too, we want to assure you that even with this significant growth -- from 3+ to 5 -- we remain among the leanest organizations of our kind and we don't expect that to change.

One of our beliefs is that this small staff model, while challenging at times, ensures that we keep the focus on delivery at the wholesale vs. retail level. We plan to remain a grantmaking institution that works with strong partners in the field to achieve important "systemic, transformative and sustainable" advances for the nation's working forests and forest-reliant communities.

Choosing What NOT To Do

2009-09-11T10:14:00.000-04:00

One of the more difficult steps in making sound decisions about how to focus an organization’s programmatic investments for maximum impact is to decide what NOT to do. Early on the Endowment’s Board developed a list of “ineligible” activities to help avoid the trap of “trying to be all-things-to-all-people”—a dilemma that afflicts many non-profits.

Some Things the Endowment Always Says No To
Some of the early “Nope, can’t go there” things were the proverbial no-brainers for a national endowment focused on sustainable forestry: sporting or booster clubs or religious activity. Others were imbedded in our “organic act”: political activity and humanitarian or disaster relief (under the Softwood Lumber Agreement that activity was handed to Habitat for Humanity).

Still others were on the “do not call list” as they would divert from the Endowment’s desire to be “systemic, transformative and sustainable” in the type of change we hoped to promote. Among those were: debt retirement, capital campaigns, annual fund drives and honorary functions. While a significant donation to a single organization’s capital campaign might be transformative to that entity, it isn’t likely that the Endowment could chart an approach that would be “systemic” in such endeavors nor could it be “sustained.”

While not perfect, we’ve found that initial list of things “not to do,” very helpful in focusing our Board and staff time and the organization’s limited financial resources on areas that offer greater potential value and return.

Conferences and Forums
An additional area that we adopted early, but had not put on the “ineligible” list (although we’ve now added it), is the whole arena of conferences and forums. Not surprisingly, we get lots of calls and requests for $5,000 or $50,000 “sponsorship” of some very important conferences. In choosing not to fund this type of activity we are in no way minimizing their value. In fact, our staff pays a registration fee and attends several such meetings every year to expand understanding of current or emerging topics.

There are two primary reasons that we’ve opted not to provide funds for such meetings. First, we don’t believe that it is possible to appropriately measure benefits against our desire to be “systemic, transformative and sustainable.” Secondly, and perhaps just as importantly, given that there are so many worthwhile opportunities to provide conference support, we’ve found that it is far easier to be consistent by not supporting any rather than in trying to explain to others why their conference isn’t going to gain Endowment support if we just funded a similar one somewhere else.

The Importance of Consistency
We know that the need for financial support in the not-for-profit sector is great and growing. We know too that for every time we are able to say yes to someone’s great idea, we at the same time must say no to dozens of other worthwhile projects and initiatives. Finally, we know that we don’t have all of the answers. We welcome ideas and input. In fact we aggressively seek it via open exchanges such as our Blog, through periodic convenings of experts in a given topical area and through reading and listening as we travel across this great country. In all of this we attempt to be transparent and consistent in how we treat everyone. All the while we seek to stay true to our Board’s desire to really move the needle of change. Thus we continue to focus our actions and our resources.

Soliciting the Best of the Nation’s Creative Conservation Thinkers

2009-08-13T14:54:00.000-04:00

The Endowment is in the midst of implementing a new program in partnership with the Natural Resources Conservation Service (NRCS) made possible by a new Grants Leveraging Category contained within the agency’s Conservation Innovation Grants Program (CIG). Through a pending Request for Proposals process the Endowment is seeking to identify projects and partners for implementation under the Endowment’s successful 2009 CIG submission entitled, “Healthy Watersheds through Healthy Forests Initiative.”

At this point we don’t know if NRCS will continue the Grants Leveraging Category of CIG going into the future. What we do know is that we found the thought process that led us to the winning 2009 submission -- with the support of input from a number of conservation professionals from across the country -- to be a stimulating way to bubble up important initiatives and priorities. In short, it allowed us to build on our original public input process as the Endowment set its strategic programmatic priorities. We’d like to engage you in continuing that process as we think ahead to 2010.

About CIG
The purpose of CIG is to stimulate the development and adoption of innovative conservation approaches and technologies while leveraging the Federal investment in environmental enhancement and protection. CIG projects are expected to lead to the transfer of conservation technologies, management systems, and innovative approaches (such as market-based systems) into NRCS technical manuals, guides, and references or to the private sector. CIG does not fund research projects. It is a vehicle to stimulate the development and adoption of conservation approaches or technologies that have been studied sufficiently to indicate a likelihood of success, and to be candidates for eventual technology transfer or institutionalization. CIG funds projects targeting innovative on-the-ground conservation, including pilot projects and field demonstrations.

The Endowment Approach to CIG
Rather than approach the CIG program as a single applicant wishing to implement a specific project at the field level in one of the listed areas of National Concern – water resources; soil resources; atmospheric resources; grazing land; forest health or wildlife habitat – we believe our strength and core competence is found in developing a thematic approach to CIG that tests a single idea or technology in differing geographies. Thus, more rapidly proving the technology and vetting its use in a range of circumstances. For instance, under our 2009 grant we will be seeking to link up-stream water producers (e.g. forest landowners) with downstream water users/consumers ultimately by monetizing the water component of ecosystem services of forests. We anticipate deploying strategies and practices in two to three well-funded watersheds in different parts of the country to gain deep knowledge that can then be used by NRCS and others to transfer those learnings to other watersheds across the country.

Opening the Idea Box
As we think ahead to 2010 and a potential partnership with NRCS again (should such prove possible and be a direction approved by the Endowment’s Board) we want to engage you in bubbling-up those great ideas that meet the spirit of CIG and that would provide measurable results on the ground to advance forest sustainability and the needs of rural forest-reliant communities. We see this as a dialogue that extends the reach of the Endowment and helps us to benefit from the best of ideas from across the country. We offer two ways for you to engage. First, you may chose to just respond to this Blog or if you don’t wish your thoughts to be seen on the web, send your ideas directly to us – michelle@usendowment.org . Either way, we appreciate you taking the time to share with us so that we may consider ways to better target the Endowment’s work to achieve our important mission.

Let the creativity begin!

Thoughts on Overhead Costs versus Programmatic Investment

2009-04-16T09:07:00.000-04:00

The Endowment’s commitment to openness and transparency is often a challenge. We get some tough questions. Among those we’ve received recently, was a rather direct one about the ratio of our overhead or administrative costs as relates to the funds that we get to the ground to address our mission. Here’s a quick summary of some of what we shared with our questioner.

Compare us with Peers – Start-ups; Not Long-running Organizations
It shouldn’t be surprising that a start-up foundation would have an “upside down” ratio for a while. As the only non-profit chartered as a totally new entity to receive funds under the Softwood Lumber Agreement (SLA), one would expect a period of time to get our feet on the ground. The Endowment took a very deliberate approach to determining how best to achieve the mission that was assigned as part of the SLA – sustainable forestry and forest reliant communities. While we were “legally chartered” in September 2006, our Board didn’t have its first meeting until late November. Perhaps more importantly we didn’t get our full corpus funding until nearly May 2007.

Thus, the first few months of our existence – December 1, 2006 – March 31, 2007 – were spent in things such as getting an office in place, interviewing staff, building governance policies, developing an investment policy and selecting a fund manager … all with a single staff person. By April 1, 2007 we had our full staffing identified (a total of only 3), to dig deeper into programmatic planning processes and strategic program direction. In total we took about six months to build our organizational foundation and a first-cut at a program. The Endowment board then decided to vet broadly the proposed programmatic plan. Those processes, which were designed to reach out to all interested parties, took an additional six months. Thus, by early November 2008, we publicly announced not only our direction but our plan for programmatic investment – an anticipated $10 million annually beginning in 2009.

The Endowment is a “True Endowment”
In a university setting most endowment funds are sequestered for an average of three years to allow time to build earnings that can be paid out for missional purposes. The U.S. Endowment didn’t have such a luxury. Our one-time infusion of funds – a single $200 million corpus – had to provide for administration as well as program … immediately. Administration costs started on day one. While the Board crafted a very modest plan for overhead costs – just 0.375% of corpus – adequate for a lean staff model with the full corpus … it isn’t when one experiences a significant market decline. Fortunately, being initially chartered as a public charity, we were not bound as are private foundations with the requirement of spending 5% of corpus regardless of the situation.

Investing in Real Change vs. Spending Money
The Endowment Board has taken a very thoughtful and constructive approach to our work. Spending money is easy. Just chip in a few bucks to hundreds of causes. But, the Endowment’s Board wanted to be “systemic, transformative and sustainable” in the change we sought. This requires a very different programmatic investment strategy – one that often means doing a very few things rather than lots of little things and investing with our partners for a longer period of time. Thus many of our grants are for multiple years.

From 0 to 60 in __ Seconds
The Endowment Board adopted a “ramp-up” plan to go from $0 -- our starting point on May 1, 2007 (when funds were in place and invested) -- to full programmatic engagement which we expected to take 2-3 years. We have done this in the face of the greatest market declines and uncertainty since the Great Depression. Our ramp-up strategy has allowed us to stay the course and make several multi-year, multi-million dollar programmatic commitments when some other organizations are being forced to renege on previous commitments. That said, we are doing so in the face of losses to our endowed base in excess of 30% -- thus, in reality we have NO earnings to invest in program. Yet, our Board is navigating the balance between missional focus and fiduciary responsibility in a way that makes us all proud.

Building the Fire Truck on the Way to the Fire
We’ve already touched on the fact that we had to do everything from scratch -- no small task. Thus, when one looks at our first two years of operation – we are clearly upside down on administrative costs vs. programmatic payout. That said, we’ve taken such a conservative approach to showing these numbers that we perhaps do ourselves a disservice. Our Form 990 shows a much truer picture than does our annual report in that two of our three staff members also have heavy roles in program content. If we perhaps more appropriately showed those costs as “program investment” vs. administration, the picture would look much better. But, we chose not to do that. Instead we urge those interested to look not in the rear-view mirror; but ahead. The Endowment’s 2008 Annual Report clearly notes nearly $9 million in programmatic commitments with significant additional leverage that will quickly bring the Endowment’s overhead vs. program ratio into a much more favorable position. In fact, we expect that when fully “at speed” our ratio will be among the lowest of our peer group.

Seeking 21st Century Solutions to America’s Forest Health Crisis

2009-03-02T13:49:00.000-05:00

The U.S. Endowment is serving in a catalytic role in a broad-based initiative regarding the potential of biotechnology as a tool in the fight to address forest health challenges. The partnership is designed to assess the potential to develop and deploy scientifically-sound, socially acceptable and rigorously vetted/regulated approaches that might see the benefits of biotechnology used in the fight against the ever increasing list of alien pests and diseases that threaten North America’s forests.

The partnership – “Advancing Forest Health through Biotechnology” -- is a three-year perhaps $10M effort that will use the American chestnut as the test tree. The Endowment has pledged $1M to the effort and will serve on the Steering Committee along with other core funding partners, the USDA Forest Service and Duke Energy. Additional guidance and oversight on the Steering Committee comes from Environmental Defense Fund, The Nature Conservancy and a retired forest scientist.

The Forest Health Crisis in North America is Large and Growing
Millions of acres of North American forests (perhaps as many as 58 million acres in the U.S. alone) in every region of the continent are suffering under an onslaught of pests both endemic and exotic unprecedented in human history.

Global climate change and expansion of global trade both portend a future with an increased number of forest health threats with accelerated rates of expansion.

Traditional Means to Address Emerging Threats Aren’t Enough
Traditional tools to address these emerging challenges fall woefully short of meeting needs. While tens of millions of dollars are being spent to fight existing and emerging threats, most result in triage at best with millions of acres and billions of dollars in forest value lost. (Annual timber losses from exotic pests in the U.S. are estimated at $4.2 billion – not accounting for monitoring, control and environmental losses.)

New challenges and the rapid nature of their expansion call for new tools in the fight. Forest biotechnology offers the potential to provide at least one new tool under timelines not practical with any other technology or response.

Foundations Should Lead and Take Calculated Risks that Others Cannot
The U.S. Endowment believes that it is the responsibility of Foundations to do those things that others can’t or are unwilling to undertake. Biotechnology is neither a panacea nor is it likely the plague that some suggest. The Endowment believes that the best way to explore the scientific potential of the technology is to do so in an open/transparent way that is conducted concurrently with societal discussions and regulatory engagement and oversight.

If the Endowment were to try and engage in traditional battles to address forest health challenges, our additional resources while important, would do little to advance the field. However, through a catalytic role and tightly-focused investment in biotechnology we have the potential to offer societal and forest health values that far exceed our small investment.

Science without Consideration of Social and Regulatory Interests Is Unacceptable
In keeping with the Endowment’s approach to all of its work, advances from this investment would be broadly available to society and all work would be conducted in an open/accessible manner. What sets this initiative apart from others is the commitment to concurrently integrate the science, social and regulatory paths in a single plan.

Frequently Asked Questions
Why is the Endowment supporting this initiative?
Adding a new tool to address North America’s forest health needs fits well with our mission of promoting sustainable forestry and even more directly nests within our initiative to address retention and restoration of healthy working forests. It also aligns well with our core commitments to creating new economic values from forests and benefit communities.

Why is the American chestnut the test tree?
American chestnut was once perhaps the most valuable and wide-spread tree in eastern forests. Its importance as a building material was unmatched. Yet, that is only part of the story. Chestnut was among the nation’s most desirable wildlife food crops as well as a staple for people. By focusing on an iconic tree that crosses the lines of economic and ecological value we have the potential to engage a broad base of interests.

What do you see as some of the biggest benefits potentially coming from this initiative?
While gaining a plantable American chestnut that could offer a new tree and nut crops to landowners and communities up and down the Appalachians would be important, even that pales in comparison to providing new, safe, economical and rapid means to address the growing number of forest health threats.

Aren’t you afraid that biotechnology will go awry and yield “Frankintrees?”
We acknowledge that biotechnology isn’t without potential risks. That said, we too must put things in perspective. Humans have been manipulating plant genes for literally thousands of years through traditional genetic crosses to yield plants and products that meet human needs. The advantage of this work is that it takes a holistic approach to the issue: science will be conducted concurrent with review of societal concerns and regulatory safeguards. Too, as another contextual issue, this work isn’t what one saw in the highly entertaining and perhaps frightening Jurassic Park. In this pilot, two closely related trees – American chestnut and Chinese chestnut – form the base for the work.

An Open Letter to President-Elect Obama

2009-01-05T09:36:00.000-05:00

Americans overwhelmingly live in urban and suburban areas -- 80%, with nearly 60% living in just over 150 urban areas. The remaining 20% live in the vast, productive, often-forgotten America beyond. The U.S. Endowment for Forestry and Communities wishes to share some views about infrastructure investments on behalf of rural America.

America is arguably the most blessed nation on earth. Many of those blessings relate not to the material wealth so evident in our urban/suburban lifestyles but to the natural blessings that we too often take for granted. We are a nation endowed with rich soils that yield “amber waves of grain.” On a planet dominated by salt water, we are a nation of fresh, drinkable waters teaming with aquatic life. And yes, we are a nation of forests -- towering pines, oaks and giant sequoias.

Mr. President-Elect, as you assume your new role we urge you to look not just at the shining cities, concrete ribbons of highways and runways and productive factories as the “infrastructure” that powers America. Indeed, we urge you to consider the potential and power of rural America and the “natural resources infrastructure” that not only “built” America but that still holds great potential for our collective future.

There is a Chinese proverb that says all of life’s blessings can be represented by a “0”; with human health a “1”. Without one’s health all other blessings mean nothing. As you look to invest in America’s “built” infrastructure – highways, schools and factories – we urge you to recall that these investments have little value if we lose the rich soils, plentiful and productive waters and abundant forests that set America apart … our “1”.

Take America’s forests as an example of unmatched potential. Fully one-third of our “sea-to-shining-sea” expanse is covered by forests. Simple and yet complex. Perhaps the greatest single gift to our planet, forests provide not only expected products that form our homes and then warm them, but that also serve as the source of clean waters and fresh air. More than 2/3rds of our nation’s potable water is derived from forests – both public and private.

In a time of climate change perhaps no single tool is more diverse and flexible as forests. Not only can they sequester carbon as they grow, they can serve to provide environmentally-preferable products – lumber, paper, rayon and more – that each sequester carbon through-out their long lives and then can easily be recycled without exacerbating greenhouse gasses or leading to pollution challenges.

Yes, forests serve as homes to much of America’s rich and diverse bird, mammal and reptile populations, while at the same time meeting the needs of our nation’s peoples. While forests have housed our population, provided the means to record our history and communicate our feelings, they too have the potential to play a vital role in setting our nation on a course for sustainable energy independence.

America’s forests are as diverse as its people. Not only do the species and types of forests differ, but so do their owners and potential. While we are blessed with lands held in common for all Americans – parks, national forests and wildlife refuges – many of these lands are beset by unprecedented challenges. Climate change, insect infestations, disease and wildfire are all taking a heavy toll. These challenges are inequitably shouldered by our publicly owned forests; yet, these threats are shared by the bulk of our nation’s forests – those stewarded by America’s families, as well.

Whether the term is “ready to go” or “shovel-ready,” when one considers our nation’s natural resources infrastructure, there are literally tens-of-thousands of investment opportunities that will yield family-supporting jobs and economic activity immediately while at the same time yielding long-lasting benefits. The jobs that come from these “green investments” aren’t likely to be out-sourced to other countries nor will the benefits accrue solely to other countries. Neither will they exacerbate global climate change. We urge you to consider investments in the nation’s forests, parks and refuges as well as in private forests and rangelands to ensure adequate supplies of clean water, enhanced storage of carbon, alternative sources of renewable energy and the multitude of benefits that flow from nature’s bounty – renewable wood and paper products, wildlife habitats and places for recreation and re-creation of the American soul and spirit.

We at the U.S. Endowment are, like you, very new in our position. Yet, we are full of hope and anticipate the great change that will benefit not just our generation, but many generations of Americans to come. We stand ready to do our part and look forward to partnering with you to invest in America’s natural resources infrastructure to serve current and future generations. An investment in our nation’s natural resources infrastructure will yield unprecedented potential in terms of environmental and human health, green energy, environmentally-preferable products, clean air and water and a higher quality of life for all Americans – urban and rural.

Addendum to Frequently Asked Questions

2008-11-21T09:24:00.000-05:00

In July we began the Endowment Blog. The second in our series of postings dealt with what we termed the "Top Seven Questions Asked about the Endowment." While several months have passed that posting remains largely up-to-date. We did want to provide one addendum related to Washington Forest Law Center's (WFLC) actions regarding the U.S. Government and any relationship to the Endowment. Since the time of our earlier posting, the Forest Stewardship Council (FSC), has joined WFLC in a lawsuit against the U.S. Government. Here are the quick facts:

1. FSC as lead plaintiff filed a suit against the U.S. Government – specifically the U.S. Trade Representative’s office and others.

2. The suit follows a Freedom of Information challenge to the U.S. Government led by WFLC regarding the Government’s handling of certain decisions related to the Softwood Lumber Agreement (SLA) 2006.

3. The FSC suit is against the U.S. Government and does not name as defendants the U.S. Endowment for Forestry and Communities or any of the other organizations granted funds under the SLA. The concerns raised by FSC/WFLC deal with how the U.S. Government made certain decisions related to the SLA trade deal with Canada. These are issues only the Government can address.

4. Other parties in the lawsuit are Conservation Northwest and the Center for Biological Diversity. Both had joined WFLC in its earlier Freedom of Information requests and legal challenges of the Government.

5. The U.S. Endowment is focused on the important work set-forth in our mission – healthy working forests and forest-reliant communities across America -- with a wide range of public and private partners.

Navigating Uncertain Economic Times and Remaining True to Mission

2008-10-28T10:47:00.000-04:00

I ran into a young man the other day who said, “I’m glad I don’t have any money invested in the stock market so I don’t have to worry about the economic troubles caused by Wall Street.” Perhaps he and others who think they are immune to the global economic upheavals slept through Economics 101. Clearly everyone – individually and organizationally – is or will be impacted by these unprecedented times.

In speaking with the Executive Director of a regional not-for-profit just last week he said he’d seen financial support to his organization “fall off a cliff” in less than a month – that as we enter the quarter of the year where most non-profits expect the bulk of their annual contributions. We’ve also learned of one prominent Boston-based foundation that plans to let its staff go, put its federally-required programmatic spending programs under a minimal auto-pilot plan and “wait” for its corpus to bounce back.

Like the young “non-investor,” we’d like to think that as an Endowment we wouldn’t have to worry about these economic times. If, however, you’ve taken the time to view our latest quarterly Stewardship Report (ending September 30, 2008) you’ll see that our Endowment corpus plunged “well below water” from above $200 million to just less than $175 million – a number that we wish we still had just four weeks later!

As our Board of Directors prepares to meet for its Fall 2008 session, economic issues and realities will permeate our agenda. How can we be true to both our mission and our fiduciary responsibilities given these unprecedented times? How can we keep our commitments and do even more when non-profit partners and communities are under increasing pressure?

Our staff is working on options that would allow us to proceed on all fronts but perhaps in a more measured way – stretching some commitments beyond timelines originally planned while slowing program build-out. We won’t try to speculate what the Endowment’s Board will decide. But, we can assume that this committed and very experienced group of individuals will chart a responsible course of action to help the Endowment navigate uncharted waters in ways that remain true to our vision to see that “America’s forests are sustainably managed to meet broad societal objectives such as marketable products, clean waters, wildlife habitats and other ecological services, while ensuring healthy and vibrant forest-reliant communities."

Rural Areas in a World of Mega-Regions

2008-09-03T09:45:00.000-04:00

In his most recent book, Who’s Your City?, Richard Florida, the often quoted author of The Rise of the Creative Class takes issue with Thomas Friedman’s “flat world” theory. Florida points to growth and economic dominance of “mega-regions” as his premise and notes in his book’s sub-title that “the creative economy is making where to live the most important decision of your life.” He contends that the global economy is “happening” in a couple of dozen mega-regions (5 to 100 million people) – Greater Tokyo, London, Boston-NY-DC, Dal-Austin, Char-lanta and Cascadia (Portland-Vancouver), among them.

Using economic production, patents and other measures Florida reviews the huge “spikes” of economic power of these areas that far exceed simple concentration of human population (as significant as that is). His major contention is that it is the amassing of human brainpower, especially of those with advanced education and their ability to collaborate when in proximity, that is the driving force. While he does note some exceptions outside the mega regions – Nashville’s dominance in music, for example – each exception is built around a “clustering force” – the clustering of people and productivity, creative skills and talents around a single competitive competence or sector that powers economic growth.

Florida looks at all of the economic downsides to living in mega-regions – high cost of living, especially as relates to housing; long commutes; and congestion – and notes that these are the price of creativity and economic growth. Yet, people continue to vote with their feet and relocate to these areas. One telling factor is the rapid and prolonged increase in housing costs (wealth) in mega-regions vs. the stagnation or decline seen in many rural areas. While Florida’s work is just one theory – contrasted with Friedman’s view that one can live, work and innovate from anywhere in a flat world – it does suggest significant support for the idea that individual rural communities will have an increasingly difficult time competing. Thus, the need to form “mini-regions” built upon clustering of potential that if not ready to compete globally are vitally linked to mega-regions in a symbiotic relationship.

At the Endowment we think that the concept of “Forest Investment Zones” (mini-regions designed around a clustering force) may hold the potential to enliven the future of certain rural areas as the move to mega-regions continues unabated.

The Work of Foundations: Doing What Others Can't or Won't

2008-08-22T10:09:00.000-04:00

We plan to do few things and to do those very well. The Endowment’s Board of Directors has made a commitment to invest in those things where, but for the Endowment’s engagement, there is little chance of progress. The catch phrase that has guided us since our creation is to be “systemic, transformative and sustainable” in our work.

In this regard we point to one of our current activities as an example of what one might expect of the Endowment.

Growing Markets
One of our earliest initiatives considers the potential of agricultural “check-off” programs to be used as a vehicle to grow the market pie for softwood lumber in North America. Check-offs have been successfully used by nearly every agricultural product in America – from “Beef, It’s What’s for Dinner” to “Got Milk?” – two of the better known check-offs that have been used to grow markets for beef and milk, respectively. Forest products are eligible for these “voluntary, self-funded” mechanisms, yet, none has ever been attempted at the national level.

Some would say that growing markets is industry’s role alone. We agree; but, we also think there is a role for us as well. First, it is extremely difficult for a highly-diversified and competitive industry to do the work necessary to give full consideration to an effort that would bring all together for the good of the whole – especially where that “good” goes beyond profits to address broader societal values. As an independent third-party “without a dog in the fight,” the Endowment can truly do something that others can’t – conduct an independent study of the potential of check-offs and then serve as a convening catalyst to bring industry leaders together to consider the benefits of such an initiative.

A Sustained Source of Funds to Keep Forests in Forests and Jobs in North America
As we near the end of the assessment phase of the potential to use a check-off to grow softwood lumber markets in the U.S., we also remind others of what’s in it for the Endowment. While we would not be the recipient or manager of funds generated under a program if one were to be adopted, a check-off could generate between $30-50 million annually on an on-going basis to promote the environmental and other attributes of wood products – especially those produced here. We believe that such a program would have several benefits that match the Endowment’s mission and objectives.

First, and foremost, we want to see wood products jobs retained here at home. Second, markets for products link directly to the ability to keep forests in forests and to keep those forests healthy. Jobs, economic value to landowners and retention of manufacturing facilities in rural communities with all of their attendant benefits would multiply a very small Endowment investment many times over. We think that’s a wise investment of the Endowment’s limited resources that could pay-off for generations to come.

Learn More
If you are interested in learning more about the potential of ag-type check-offs to benefit forests, forest product markets and keep jobs in North America, read a copy of the project Overview report that can be found on the Publications page of our website.

Wood, Trees and Forests in the 21st Century Bio-Economy

2008-08-04T14:58:00.000-04:00

My good friend and colleague Ken Arney recently loaned me a precious first edition book entitled “Nazis in the Woodpile.” The wonderful work published in 1942 chronicles Hitler’s plot to create a near monopoly in wood to undergird his war effort.

As a forester and veteran of America’s forest products industry I’d never before heard of the pivotal role that wood, trees and forests played in Hitler’s plan for world domination. I asked myself, as author Egon Glesinger asks, “Why not oil?” Germans themselves had noted the world was in the “Age of Oil.” According to Glesinger there are “Two reasons. In the first place, the Nazis know they can secure world control of oil only by a final Anglo-American defeat…And then there is the second reason – they have made wood the backbone of their war economy. Wood helps them meet, to a large extent, their deficiencies in food, clothes, motor fuel and other war essentials. With true German thoroughness… they have come to the conclusion that wood is the coming raw material, and that Hitler’s “Thousand-Year Reich” will be the “Age of Wood.” They have given wood the surname Universalrohstoff, i.e., the material which can produce anything.”

Wood’s Place in a Post Cheap Oil World
For more than a century our world has built and moved on fossil fuels, most notably oil. While Hubbert predicted that oil production in North America would peak around 1970 followed by a worldwide peak near 2000, America continued to build its economy as if nothing would ever change. Gas guzzling SUVs filled our roads that stretched from our urban jobs to our suburban homes. With scarcely a blip caused by the 1973 oil embargo and other periodic jumps in oil prices we tenaciously stayed the course. In the ensuing years domestic production of crude dropped and imports steadily rose -- today standing north of 60%.

Many Americans seem to be slowly awakening to the fact that the age of cheap oil is over. Too, many are realizing that $1-1.5 billion daily sent to foreign producers who don’t share our views or values probably isn’t a good thing. Even if we take our Canadian friends – the biggest exporter of oil to the U.S. – out of the equation, let’s say it is just a $1 billion/day. That’s still a lot of money that won’t go to keep jobs in America. Even with talk of reopening coastal zones or the Alaska National Wildlife Refuge (ANWR) to exploration, we won’t drill or even conserve our way out of this era.

Companies as diverse as Duke Energy and Wal-Mart acknowledge the reality of climate change and the need to build a new energy future. Yet, potential sources of new supply aren’t any more evenly distributed or available than are current supplies of crude. As new technologies advance and as the costs of producing those products come down, solar may be a great fit for some, but not all areas. Likewise dependable sources of sustainable wind aren’t found everywhere. Yet, one-third of our nation is covered by trees…and still more by ag crops that could yield burgeoning supplies of residues or intentionally grown fibers for energy.

What Hitler’s master planner, Hermann Goering, knew in the early 1940’s, is even truer today. Wood, which can readily be “stored on the stump,” can provide a sustainable source of:
1. Solid and liquid fuels
2. Food and fodder
3. Cellulose and textile fibers
4. Structural material; and
5. Wood by-products as basic materials for chemical industries

Our Thinking on Woody Biomass and the Future
If wood held great potential in an era of cheap oil during World War II, why couldn’t it be one of the major foundational pieces for our world today when oil fluctuates in the low- to mid-$100s/barrel? With the Endowment’s vision to promote sustainable forestry and aid forest-reliant communities across the nation, there are few single “fixes.” Yet, wood-for-energy is truly the triple-play.

We think wise management and use of America’s forests for biofuels can play a significant role in addressing all three of our focal initiatives:
Ø Retention and restoration of healthy working forests;
Ø Identification and capture of multiple value streams; and
Ø Capacity and leadership at the community level.

We say wise management because we do not envision wholesale conversion of forests to energy crops. The greatest gains will come with “right-sized” opportunities that are matched to the local forest condition and, wherever possible, where products and services are used as close to where they are produced as is practical.

The transition to an economy that uses wood and forests to their full potential will not be successful if it “throws-out” traditional forest industry (paper and wood products); rather, it must be designed to eke out the highest and best use of each log, chip and chemical extract.

Endowment Actions
At the Endowment we’ve charted two routes on our course to use biomass to meet our mission. First, we soon will have a two-part effort underway that will first assess the current state-of-the-commercial-science in regard to woody biomass conversion to biofuels. The second aspect of that project will seek to create a first-ever system to track the current and emerging use of wood for energy by facility and region to better undergird sound forest management planning and economic development.

Next, we know that large investors and big industrial players have the expertise they need to make their decisions. However, we don’t believe the same is necessarily true of smaller players and communities. Therefore, we plan to work with the best experts across the nation to amass information and resources to aid communities in asking the right questions and to help in sifting the “wheat from the chaff” in the burgeoning field of bioenergy production.

We know all-too-well that the transition from one era to another (e.g. ag to industrial; industrial to information; and now, information to a bio-based economy) can be highly disruptive. Yet, from this disruption will come innovation, family supporting jobs and new sources of wealth.

At the Endowment we aspire to play a role in ensuring that America’s forests and forest-reliant communities are winners in this transition.

Preparing to Launch Forest Investment Zones

2008-07-18T14:41:00.000-04:00

A pebble dropped in water creates ripples that are initially small; but they rapidly grow in circumference. That’s how the Endowment envisions the results of our largest programmatic initiative to date: Forest Investment Zones: Co-Creating Innovation and Learning at the Regional Scale. Even though the initiative will focus on a small number of regions, our intent is for the benefits to be shared broadly as models that can be implemented in communities across the nation. The notion of co-creating this program is critical to success as we look to those closest to the ground to help us build and implement the concept.

Implementing a programmatic approach to funding at the nexus of forest health and community resilience is a major framework for the Endowment’s work. This framework was built upon initial conversation within the Endowment’s Board and staff, outreach to professional networks, a national survey of needs and opportunities and a national workshop that allowed depth and breadth of discovery.

The national workshop highlighted the opportunity to work strategically by focusing in specific geographic regions identified as “Forest Investment Zones.” We were intrigued by this notion and began a series of actions to build upon the idea. We have work underway in a number of initial efforts intended to provide a solid foundation for this signature work. Among some of these early works are:

1. A soon be implemented process to add information about conservation easements on forested lands that will help bring into focus a more complete picture when combined with public lands. Not only should this provide a glimpse of the opportunities for long term working forests, but it should also allow better targeting and coordination of limited financial resources;

2. Gathering information with regard to the benefits of “clustering” intended to uncover innovative business models and provide important information about ways to enhance market connections for new business opportunities. And,

3. Work to identify the state of community-based forestry endeavors that provide examples of existing community/regional work at the nexus of healthy working forests and vibrant forest-reliant communities.

The concept of forest investment zones has the potential to demonstrate the breadth of the Endowment’s Mission and Theory of Change. The work within zones stands to showcase actions that promote the health of working forests, create new business models and stimulate value-added production that is structured to create benefits for communities. This occurs because all three components are the focus of the work…market conditions (value streams), strategies to maintain healthy working forests…and, assisting communities to directly enhance their capacity needs to build a brighter future.

Working at the regional level is daunting, but many economic theorists agree that such is the best way for communities to mitigate impacts and seize opportunities resulting from globalization, climate change, and living in a post-cheap-energy world.

The Endowment will over the next few days release a Request for Pre-proposals (RFP) to begin this process. We anticipate selecting three responses nationally. They will be geographically diverse and respond to the variety of opportunity for retaining working forests, capturing value streams and enhancing community capacity. We will be looking for mature regional intermediary organizations or networks to assist with implementation. After all, it is the people working closest to the ground who have the connections, information and ideas necessary to not only influence their own future but also to help us all learn together.

Our hope is that this work will create additional ripples of innovation, inspiration and positive change across the nation.

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Definitions:

Regional intermediary: high-capacity organizations or networks of organizations who commonly work together. They are familiar with influences, drivers and opportunities in their given regions.

Region/forest investment zone: The base criteria for identifying Forest Investment Zone candidate areas include:

1. Multi-county, multi-community, and/or, where possible, a multi-state area that is considered as a region and shares characteristics common to other areas of the nation (living laboratories/incubators);

2. Sufficient amount of working forest (public and/or private) is available for a significant/foreseeable period (e.g. at least 25 years) to support a variety of forest-based business opportunities (Most of the work will be focused in areas that are likely to remain in a heavily forested condition where there are no currently known threats that suggest wholesale conversion to non-forest uses– for instance, the area is not in the immediate path of a major urban/suburban growth pattern.); and

3. Traditional forestry businesses (either pulp/paper, sawmilling and other related businesses) have been a significant part of the area’s development history and continue to be important today, although perhaps a declining segment of the economy.

A Picture is Worth...

2008-07-17T10:21:00.000-04:00

Is a picture really worth a thousand words? Or, do they sometimes just raise questions?

We’ve had a musing about what the “bridge” picture on our website is about. Without getting too esoteric it has several different meanings:

1. First, and perhaps most simply, this is “Liberty Bridge” in Falls Park on the Reedy River in Greenville, South Carolina. We used the picture in our 2007 Annual Report to depict a story about “our home.”

2. We are miserly in using the Endowment’s financial resources. When we opted to “enhance” and update our website, we chose to use art and pictures that we already owned rights to.

3. It is a wide angle shot that fits well in a banner layout. A tree would have to be in the prone position to do so.

4. There is a subliminal message as well. The Endowment focuses its work on “bridging” the full range of interests inherent in sustainable forestry – environmental, social and economic.

5. Yet, the underlying reason is that this particular bridge tells a story about perseverance, vision and symbolism in community revitalization.

As Paul Harvey would say, “Now, for the rest of the story…”

Like most communities in forested sections of the nation, Greenville was once built on trees and wood products. Yet, it quickly migrated to a different industrial base – textiles. The original wave of textile mills was always found on rivers. The flowing waters served as a source of needed energy and then as an all-too-convenient place to dump wastes.

Greenville’s small Reedy River and the falls that were once the center of downtown activity also hosted one of the first dams and mill complexes. Over the years, development, pollution and changing interests, saw the once popular recreational site fade from glory. Thus, when a four-lane highway and bridge were proposed directly over the falls some decades later, there was little outcry. Greenville’s roots were “forever” hidden from sight.

Even against the backdrop of a highly polluted river, a few women noted that the river and its falls held intrinsic value that shouldn’t be covered-up. A small number kept up that clamor for nearly fifty years until a very controversial decision was made to “tear down a perfectly good bridge” and replace it with a means for people to “walk across the falls.”

While few shared the vision of what could be – remembering only the polluted nature of the river – the project moved forward. The bridge came down and in its place rose a very expensive ($4.5 million) one-of-a-kind floating arc that provided a panoramic view of Greenville’s birth place – Reedy River Falls.

The action spawned a palpable and very visible rebirth of Greenville’s historic West End -- booming economic development both retail and residential, refurbished parks and lots of outdoor activity. But perhaps the greatest gain can be seen in the pride shared openly by Greenville residents who serve as tour guides to their visiting family and friends as the bridge and falls have become a “must see” for all.

Greenville’s decision to “do something radical” serves as a lesson to many forest-reliant communities seeking to chart a new future. Some of the most impactful decisions to stimulate economic activity and reinvigorate a community are often symbolic in nature. Greenville did something that is uniquely its own. It showcased its roots and built a shining symbol that bridges its past and its future.

For more information about Falls Park and Liberty Bridge visit: http://www.fallspark.com/about.asp

Endowment Launches Staff Blog To Enhance Openness and Transparency

2008-07-09T10:17:00.000-04:00

As one of the newest not-for-profits in the forestry sector, we at the U.S. Endowment have been running at full speed to build a a new organization with all of its moving parts (offices, staff, board, policies, bank accounts, fund managers, website, etc.) on the one hand, while charting a sound course for programmatic engagement and investment on the other. We've tried to do all of this with the leanest staff model in our peer group -- only three full-time employees.

Among the values we've espoused and tried hard to implement is a commitment to openness and transparency in all that we do. One of our Stewardship Principles is, "We value transparency, welcome public interest and communicate openly." We've tried to set the standard by posting "nearly everything" on our website. You'll find not only copies of our IRS Form 990 but also quarterly "plain language" stewardship reports penned by our Board Treasurer and President. These reports explain how we are doing in meeting our financial obligations -- something few not-for-profits share beyond their annual financial statements.

Additionally our two professional staff members have tried to make themselves readily available by attending conferences, "getting out" to hear directly from the field, or simply by responding to emails or phone calls. In short, we want to hear from all who share an interest in sustainable forestry and the needs of America's forest-reliant communities. For some time we've been thinking about how we might go even further. This "staff blog" is one such attempt.

Through periodic posts we plan to share deeper insight into the Endowment's thinking and decision-making processes as relates to programmatic investments and what's going on at the Endowment. It as a two-way street. We seek your thoughts, ideas and reactions.

One of our greatest challenges is to manage expectations. We get requests to attend dozens of conferences and appeals to support a wide range of projects and initiatives. While the Endowment is instantly the largest foundation in America dedicated solely to sustainable forestry and forest-reliant communities, our resources pale in comparison to the needs and challenges. Yet, we want to do all that we can to make a real and lasting difference.

In coming months we want to engage you in a better understanding of what we think we can do as well as those things that we can't.

We hope you'll join us in the discussion as well as the important work ahead.