Annual Report - 2005
To Our Friends...

Dear Friends,

From seeds planted almost twenty seasons ago, Permian Basin Area Foundation has grown to nearly $40 million in total assets dedicated to perpetual philanthropy for the communities of our region. Over the course of these years, $15.4 million has been distributed in grants for services to communities, scholarships for advanced education, and distributions from endowments created to support the people-serving programs of nonprofit organizations.

Someone once said, “The bloom is still on the rose.” Even though this phrase probably has its origins in another context, we think it applies to the work of the Foundation. Building permanent endowments for the ongoing benefit of people who live in our communities remains our mission, and continued growth, our goal.

During 2005, we received almost $3.8 million in gifts, and made grants, scholarships, and
distributions totaling $2.2 million.

Among our accomplishments in 2005, the Foundation achieved compliance with National Standards for U.S. Community Foundations, promulgated by the Council on Foundations, whose members total more than 2,000 grantmaking organizations worldwide. We were among the first of the nation’s 700 community foundations to be certified in the Standards, which encompass effective governance and management in each of six strategic areas:

• Mission, Structure, and Board Governance
  
• Resource Development
  
• Stewardship and Accountability
  
• Grantmaking and Community Leadership
  
• Donor Relations
  
• Communications

We are very pleased with this distinction, and believe it affirms and reflects the Foundation’s commitment to best practices in this important work.

As we seek to expand the Foundation’s value for our communities, we offer a number of flexible options through which individuals, families and organizations may create lasting philanthropy for the changing needs of communities and for chosen charitable causes. We are prepared to assist donors who wish to share of their assets to perpetually support charitable causes. The Foundation may accept various types of gifts, including:

• Cash or receivable income
  
• Appreciated securities, such as stocks and bonds
  
• Retirement accounts
  
• Real estate
  
• Oil and gas interests
  
• Life insurance

We invite you to consider a living or a planned gift to the Foundation as your circumstances provide. If you have already provided for a gift to the Foundation as part of your estate plan, we would be honored to list your name as a member of the Permian Basin Legacy Society.

Whether asked to work directly with donors or with professional advisors, we look forward to being of service. Please call upon Permian Basin Area Foundation and let us help you plant your seeds of giving ... for all the seasons to come.

Jack Swallow President & Chief Executive Officer	Tracy Elms Chairman 2005