Annual Report - 2006
To Our Friends...

Dear Friends,

The Foundation’s primary mission is the building of permanent philanthropy through the creation and stewardship of endowments for donors, communities and charitable causes. We seek to increase our capacity to serve this region by offering philanthropic planning opportunities through which individuals, families and organizations may fulfill their visions of making a difference in the lives of citizens of the Permian Basin area.

During 2006, the Foundation received $2.8 million in contributions, including $1.0 million from nonprofit organizations, for which the Foundation is pleased to steward endowment funds. Grants, distributions and scholarships for the year totaled $1.8 million. As the year ended, the Foundation’s permanent endowment assets totaled $42.8 million.

In addition, in December 2006, the Foundation received $2.5 million of a total grant of $5 million to be received over two years designated for the TRIAD Fund initiative. This special project, commissioned by the California Community Foundation, provides resources to expand assistance to American military personnel and their families who have unmet needs due to death, injury, or other physical or mental detriment, or financial hardship, as a result of service in Iraq or Afghanistan. Our Foundation was honored to be one of the three Texas community foundations selected to facilitate grant making for these purposes, and we hope these resources will improve the lives of those who have sacrificed so much in service to our Nation.

The Foundation can accept various types of assets in the creation of permanent charitable funds including:

• Cash contributions
• Securities, such as stocks and bonds
• Distributions from retirement accounts
• Real estate
• Oil and gas mineral interests
• Life insurance proceeds.

For donors aged 70-1/2 or older, the IRA Charitable Rollover provisions of the Pension Protection Act of 2006 allow favorable tax treatment of up to $100,000 in charitable gifts. The IRA Charitable Rollover opportunity lapses at the end of 2007.

We invite you to consider a living or a planned gift to the Foundation as your circumstances allow. The Permian Basin Legacy Society is an excellent method of manifesting your personal intention of support for the mission of the Foundation, and we are honored to recognize members of the Society.

Throughout the pages that follow, we are pleased to share information about the ongoing activities of the Foundation, including brief stories that illustrate the many avenues and the flexibility by which the Foundation serves donors and our communities. Perhaps these will suggest a method, an opportunity, or an inspiration for you to call on us to assist with your charitable endeavors.

Tracy Elms, Chairman Board of Governors 2006	Guy McCrary President & Chief Executive Officer	A.J. Brune III, Chairman Board of Governors 2007