Quarterly UpdateFirst Quarter, January 1 — March 31, 2012

A Quarterly Update for Triangle Community Foundation Fundholders and Successor Advisors

A Message From the President

Dear TCF Family,

The Foundation continues to focus on implementing the goals outlined in our strategic plan as we prepare to enter a new era. This past January the Foundation’s Board of Directors convened a seven-member committee, led by Board chair Rick Guirlinger, to begin the search for TCF’s next President and CEO. Recently the Board announced the engagement of Jorgenson Consulting, Inc., of Greensboro, to conduct the executive search. The search process will continue over the next 2-3 months, with mid to late summer as the expected timeframe to have the new leader in place. We look to the future with enthusiasm and confidence knowing that Triangle Community Foundation is well-positioned to continue its forward momentum as a sustainable, high performing organization.

The Foundation attained another milestone with total assets at March 31, 2012, of $148.4 million, the highest amount in its 28 year history. Total gifts to the Foundation for the past nine months were $13.1 million, compared to $8.8 million during the same period last year. Total grants disbursed were $9.3 million compared to $9.8 million during this period last year.

The quarter ended March 31, 2012 was one of the strongest quarters for the investment markets in recent memory. Investors responded favorably to improving economic reports in the US and in a number of important international markets. Guarded optimism continues, though, as equity markets face a number of challenges in the near term. The Foundation currently has several investment portfolios that were created three years ago, and they have performed very well compared to market indices. For more details, please refer to the Investment Overview on Page 4 of this newsletter.

Our community programs remain strong, and we are proud to launch the 27th season of Send A Kid To Camp™. Camp partners range from specialized groups such as the Autism Society of NC, the American Diabetes Association, and the NC Bankers Association Foundation to general membership organizations like 4-H Clubs, YMCAs and Boys and Girls Clubs. Our goal this year is to raise $200,000 to send 600 children from disadvantaged backgrounds to camp. Please take a few minutes to visit our website to learn more about our camp partners and how you can support campers this summer, giving them an experience that could be inspirational and even life-changing (www.kidstocamp.net).

As always, we thank you for your generous support of the Foundation and its community programs and partners. Working together, we can continue to improve the quality of life for everyone in our region through community-based philanthropy.

Phail Wynn, Jr. Interim President and CEO Immediate Past Chair, Board of Directors

Phail Wynn, Jr.

Kudos

Board member and fundholder Perry Colwell was awarded the Governor’s Medallion Award for Volunteer Service at a ceremony on April 19 in the State Capitol.

That same week, Perry was also recognized with a Lifetime Achievement Award by the Volunteer Center of Durham for his contributions to Executive Service Corps of the Triangle.

Fundholder James Maynard, Chairman and CEO Investors Management Company/Chairman, Golden Corral Corporation, received the 2012 Corning Award for Distinguished Citizenship. The North Carolina Chamber bestows this award at its Annual Meeting to an individual who has made significant contributions to North Carolina’s economy and to the life of the state.

Frank Daniels Jr., TCF Leadership Council member and fundholder, received the North Carolinian of the Year Award from the N.C. Press Association (NCPA)

in March. Daniels, the former president and publisher of The News & Observer, served as president of the NCPA and the Southern Newspaper Publishers Association and has been chairman of the board of both the Associated Press and the American Newspaper Publishers Association Foundation. He was inducted into the N.C. Journalism Hall of Fame upon his retirement in 1996.

Continued on page 2

2 | Quarterly Update

New Funds for this Quarter

Franco-Wilkinson Animal Fund: A donor-advised fund established as a birthday gift for Danielle Franco-Wilkinson by her parents, Richard and Dianne Franco, who are TCF fundholders. The fund will be used by Danielle to support her philanthropic interests, especially programs which promote animal health and safety.

Friends of the Orange County Public Library Fund: An agency fund created and advised by the Friends of the Orange County Library to support libraries in Orange County. Founded in 1981, the Friends is a group of people from all backgrounds, age groups and walks of life who share a common goal: lending active support to the Orange County Public Library’s services and programming.

Umesh and Usha Gulati Scholarship Fund: A scholarship fund created by Umesh and Usha Gulati to support graduating high school seniors in Durham. The scholarship will be awarded based on merit and need with a preference given to first generation college students.

High Oak Fund: A donor-advised fund advised by Martha S. Klopfer and established as a legacy by Martha’s

mother. The fund will be used to support the philanthropic interests of the family.

Morse Family Giving Fund: A donor-advised fund created by the grandchildren of John and Elizabeth Morse to support organizations and programs important to the Morse Family.

The Nonprofit Leadership Education Fund: A committee-advised fund created and advised by Charles & Susan Recorr, Geoffrey & Jennifer Bell, Charles & Wendy Moore and Christopher Thompson to support leadership education needs for nonprofit organizations based in the Triangle.

The Elsie Perry and Hallie Coppedge Charitable Fund: An endowed fund created by the late Elsie Perry and Hallie Coppedge to support charitable needs in the Triangle for perpetuity.

SAFEchild Fund: An agency fund created by SAFEchild to sustain and grow its work to eliminate child abuse in Wake County. SAFEchild helps adults and children create nurturing environ-ments free from abuse and neglect.

A total of eight new funds were created in the quarter ended March 31, 2012. We welcome these fundholders to Triangle Community Foundation.

Hearty congratula-tions to Dr. Phail Wynn, Jr., who was awarded the 2012 I.E. Ready Award for his 30 years of visionary leadership at Durham Technical

Community College. The award is the highest honor given by the NC State Board of Community Colleges for extraordinary service which results in greater educational opportunities for the people of North Carolina. The prestigious award was presented April 19, 2012 at the Raleigh Convention Center, with a reception at the Executive Mansion preceding the luncheon ceremony. Dr. Wynn was the first African-American community college president in North Carolina as well as the youngest commu-nity college president ever to serve in North Carolina at that time. Dr. Wynn’s leadership has been recognized by numerous organizations, and he received one of the state’s highest honors, the Order of the Long Leaf Pine, from Governor Jim Hunt in 2000.

TCF is enormously proud of the contributions made to the community by its fundholders and leadership and congratulates them on these well-deserved accolades.

Kudos

Grants to Support Community Issues:

For the quarter ended March 31, 2012, the Foundation made:

663 grants totaling $2,752,545

2 scholarships totaling $2,000

In sum, there were 665 transactions for a total of $2,754,545 in distributions.

Please join us for the next Triangle Donors Forum on May 23rd for Giving Circles 101: Giving for Everyone, a panel discussion to be moderated by Darryl Lester of Hindsight Consulting. The event will be held at the Burroughs Wellcome Fund from 12pm to 2pm and lunch will be served.

Please note that the Foundation will be closed on Monday, May 28, for the Memorial Day holiday.

Quarterly Update | 3

Send A Kid To Camp™ 2012

This year TCF’s goal is to raise $200,000 to send 600 children to camp – but we need your help! Every dollar you donate is used directly to send a child from a disadvantaged home in the Triangle to summer camp. Since the program began 27 years ago, over $2 million has been raised to send more than 7,500 children to camp where they can play, learn, exercise, and meet long-lasting friends and positive role models. Send A Kid To Camp is made possible through contributions from generous donors and the support of Blue Cross and Blue Shield of North Carolina. To make a contribution or to learn more, please contact your Fund liaison or visit www.kidstocamp.net.

TCF Welcomes New Staff and Board Members

In his role as Development Officer, Caleb Baker leads the research and outreach activities for the Development team, helps donors create new funds at TCF, and works with community partners in collaborative funding opportunities in the Triangle. Caleb is a 1998 graduate of the University of North Carolina at Chapel Hill and most recently worked for seven years at UNC’s Central Development Office and at the Kenan Flagler Business School.

Last month TCF announced the addition of three new members to its Board of Directors. One of Triangle Community Foundation’s greatest assets is its Board leadership, and we are fortunate to have such dynamic individuals from the community assume a leadership role at the Foundation.

Welcome New Shannon St. John FellowsTo recognize our founding president, TCF’s Board created the Shannon E. St. John Philanthropy Endowment in 2005 and the Shannon St. John Fellowship was established in 2009. Not one, but two Shannon St. John Fellows will be joining us at the Foundation from May through August 2012.

Sarah Guidi is a student in UNC ‘s Masters of Social Work program with a concentra-tion in Community, Management, & Policy Practice. She has a Bachelor of Arts degree in

Spanish and psychology from College of the Holy Cross and studied at Universitat de les Illes Balears in Palma de Mallorca, Spain. Sarah has worked as a research assistant in UNC’s Family Support Program and is serving as an MSW intern at the Orange County Department of Social Services in the Adolescent Parenting Program.

Jordan Jones worked at both the Good Work Network and the Green Collab-orative of New Orleans and is the recipient of numerous commu-

nity service awards. He graduated from Wake Forest University with a BS in Business and a Minor in American Ethnic Studies in 2006 and is currently working on his Master of Public Administration & Master of City and Regional Planning at UNC-Chapel Hill.

TCF is fortunate to have such accom-plished and high caliber Fellows, and we are excited to welcome Jordan and Sarah, who will be assisting with research that will shape the future of our community programs and other important projects.

Ruth Dzau, prominent civic leader in Durham who currently serves as board chair of the Center for Child and Family Health and is a member of the Board of Trustees for the North Carolina Symphony.

Mark Kuhn, president of Kuhn & Carson, Inc., which he founded in 1993 to help

clients consider their philanthropic goals. He is a North Carolina CPA and a member

of TCF’s investment committee.

Paul Harrison, previous director of the Wake County Medical Society Community Health Foundation. Harrison is a member of the Foundation’s Community Grantmaking Program Committee and has served on the Board of Trustees of Urban Ministries of Wake County.

4 | Quarterly Update

Montrose James Moses

Monte Moses, R. J. Reynolds Professor in Medical Education (emeritus) at Duke University Medical Center, died in September 2011 after a period of declining health. In 1956, Monte was the first scientist to describe the synaptonemal complex, and in 2006 he attended a conference honoring the 50th anniversary of his discovery. He joined Duke Medical School as an associate professor of Anatomy in 1959, became a full professor in 1966 and served as vice chairman of the department of Cell Biology. He was a member of numerous scientific societies and president of the American Society for Cell Biology. The family requests that contributions in his honor be made to the Connie and Monte Moses Endowment for Arts in Durham at the Triangle Community Foundation or to Duke Hospice.

Zora Rose Rashkis

Zora Rashkis, age 98, passed away in February 2012. She taught nearly two decades in Chapel Hill, was chosen Teacher of the Year in North Carolina and retired in 1979. Zora and her husband Mel, who died in 2008, received numerous community awards and an

In Memory . . . Our thoughts are with the families and loved ones of the following special friends of the Foundation

TCF: Investment Overview March 2012

-12%

-7%

-2%

0%

3%

8%

13%

18%

8.5% 8.4%

1Q 2012 1 Year 3 Years

Endowed Equity-Oriented Fixed Income-Oriented

4.4%1.7%

3.0%4.9%

14.0%16.2%

9.5%

1Q 2012 and 1-Year and 3-Year ReturnsThe first quarter ended March 31, 2012 for the investment markets was one of the strongest quarters in a number of years. Investors responded favorably to better economic data in the US, improved growth and lower inflationary concerns in emerging markets, and a reduced threat of collapse in the EU. Despite recent strength, however, investors remain tepid as equity markets face a number of issues in the near term.

The S&P500 equities index gained 12.6% for the quarter, while International Equity markets (MSCI EAFE) gained 10.9% and Emerging Markets (MSCI EM) gained 14.1%. The Barclays Aggregate index for Fixed Income investments returned 0.3% in the first quarter. Triangle Community Foundation’s portfolios performed well compared to the markets given the diversified investment methodology, which includes certain allocations of equity and fixed income asset classes.

The First Quarter 2012, 1-Year and 3-Year returns are shown in the accompanying graph for the:

• Endowed Investment Portfolio (60% equity, 20% fixed income, 20% alternative)

• Equity-Oriented Investment Portfolio (70% equity, 30% fixed income)

• Fixed Income-Oriented Investment Portfolio (30% equity, 70% fixed income).

For more information, please contact Robert Naylor, Chief Financial Officer, at Robert@trianglecf.org or 919-474-8370 x129.

elementary school was named for the couple to honor their generosity and volunteer service. The Chapel Hill-Carrboro Public School Foundation holds an agency endowment fund at the Foundation in her honor, the Zora Rashkis Teaching Chair in Language Arts Fund, and TCF also holds the Mel and Zora Rashkis Endowment Fund, a field of interest fund to assist Jewish causes in the Durham-Chapel Hill community.

Dr. Leroy T. Walker

Dr. Leroy T. Walker, chancellor emeritus of N.C. Central Univer-sity and former president of the United States Olympic Commit-tee, died April 23, 2012 at the age of 93. While working as a track coach at NC Central University, he coached Olympic teams from Ethiopia, Israel, Jamaica, Kenya and Trinidad & Tobago before becoming the first black head coach of a U.S. Olympic team in 1976; he was the first African-American to lead the U.S. Olympic Committee (from 1992 to 1996). Dr. Walker was a member of TCF’s Board of Directors and Leadership Council, and the LeRoy Walker Endowment for the John Avery Boys and Girls Club was established at TCF in 1995.