Behind Every Train... 2014 CONTRIBUTIONS ANNUAL REPORT
OUR MISSION Norfolk Southern Foundation was established in 1983 to direct and implement Norfolk Southern Corporation s charitable giving programs. Through strategic investments in educational, cultural, environmental and human service organizations within the region served by Norfolk Southern, the Foundation seeks to raise the standards of such programming, thereby enhancing the quality of life for Norfolk Southern employees and enhancing the livability of the communities it serves. NORFOLK SOUTHERN S INTENT IS TO HELP ENSURE THAT: Our region s children are provided with first-class educational opportunities that make them productive and valued citizens and employees in the future; Our communities can provide basic human services (food, shelter and medical care) to those in need; Our communities can offer their citizens access to cultural opportunities that make life more enjoyable; and Our communities can provide residential and work environments that are safe, attractive and desirable. As a major employer in both large and small communities throughout the eastern United States, Norfolk Southern takes seriously its role as a corporate citizen and its responsibility to commit resources, both human and financial, to the improvement of those communities for the benefit of our employees and our neighbors. This commitment is acknowledged in Norfolk Southern s Corporate Creed.
CONTENTS 2. THE YEAR IN REVIEW 4. ASSETS 5. CONTRIBUTIONS BY FUND 5. CONTRIBUTIONS BY CATEGORY 6. ITEMIZED CONTRIBUTIONS BY CATEGORY 6. Community relations 7. Education 8. Culture and the Arts 10. Business and Economic Development 10. Civic and Community 11. Environmental 11. Non-cash gifts 12. MATCHING GIFTS 13. GOOD GOVERNMENT FUND CONTRIBUTIONS 13. LOCAL-DISCRETION GRANT PROGRAM 13. DIVERSITY 14. CONTRIBUTIONS BY MAJOR GEOGRAPHIC LOCATION 14. Atlanta 14. Hampton Roads 14. Roanoke 15. LONG-TERM PLEDGES 17. 2015 FUNDING STATUS 2014 Norfolk Southern Foundation Annual Report 1
THE YEAR IN REVIEW Following a record 2013 year of giving made possible by the historic and unprecedented Corporate donation of $2,277,000 from the sale of its untitled 1959 Mark Rothko painting to targeted non-profits in Roanoke and Norfolk, Norfolk Southern continued to invest in its communities through expanded giving programs. For the purpose of equalizing year-to-year comparisons, all 2013 figures in this year s report do not include the special Rothko gift, but rather are reflective of our typical giving levels. The combination of cash contributions and non-cash donations in 2014 by the Foundation and the Corporation exceeded those in the previous year by 17.7%. Total cash and non-cash contributions for 2014 were $13,799,381, compared with $11,724,400 in 2013. Total cash contributions by the Foundation and the Corporation for grants, Matching Gifts and businessrelated programs totaled $13,150,001 in 2014. This total includes matching contributions of $994,489 to designated charities under the Corporation s Good Government Fund (GGF) Matching Contributions Program. The Foundation awarded a total of $6,985,866 in cash in 2014 (almost flat from the year prior), including 443 grants (a slight decrease of 9.0% from 2013) and 1,263 Matching Gifts (down 2.0% from 2013). The average Matching Gift increased by 8.7%, from $1,285 in 2013 to $1,397 in 2014. Since its establishment in 1983, the Foundation has contributed nearly $145 million to thousands of charitable organizations throughout Norfolk Southern s territory. In the last five years, it has provided more than $32.7 million in contributions. Although Norfolk Southern s focus has evolved over the years, the Foundation has maintained a record of significant support in the areas of education, arts and cultural programming, as well as the United Way organizations in communities in which the Corporation s employees live and work. 2 2014 Norfolk Southern Foundation Annual Report
In addition to funding provided by the Foundation, the Corporation provides direct funding that includes corporate sponsorships and memberships; contributions to nonprofit organizations, such as volunteer fire departments; and non-cash gifts to eligible organizations. The latter may include donations of real estate, rolling stock, track materials, and in-kind transportation. In 2014, the Corporation made total contributions, including non-cash donations and GGF-related matching contributions, of $6,813,515. The table below compares the total charitable contributions by category as of December 31 for the last five years: 2014 2013 2012 2011 2010 Foundation $ 6,985,866 6,948,479 6,984,677 6,191,545 5,584,647 Business* $ 3,698,646 2,513,128 2,383,207 2,363,292 2,048,608 Corporate** $ 2,465,489 1,982,102 2,120,652 2,430,252 1,719,925 Cash $ 13,150,001 11,443,709 11,488,536 10,985,089 9,353,180 Non-cash $ 649,380 280,691 1,514,401 672,889 498,691 Total $ 13,799,381 11,724,400 13,002,937 11,657,978 9,851,871 * Business includes corporate memberships in organizations such as Chambers of Commerce. ** Corporate includes GGF - related matching contributions, starting in 2008 ($652,049); 2009 ($699,171); 2010 ($748,387); 2011 ($750,252); 2012 ($788,652); 2013 ($894,402); 2014 ($994,489). Additionally, 2013 Corporate included the special Rothko gifts totaling $2,277,000 which are excluded from these totals. 2014 Norfolk Southern Foundation Annual Report 3
FOUNDATION ASSETS AS OF DECEMBER 31, 2014, THE FOUNDATION HELD THE FOLLOWING ASSETS: Cash (checking account) $3,815,160.52 Total $3,815,160.52 In 2014, Norfolk Southern Corporation donated cash to the Foundation in the amount of $583,000 per month during the twelve-month period, for a total of $6,996,000. The cash value of Foundation assets on April 30, 2015, was $4,314,919.31. 4 2014 Norfolk Southern Foundation Annual Report
CONTRIBUTIONS BY FUND (INCLUDES GGF RELATED MATCHING CONTRIBUTIONS) 18% Corporate 50% Foundation 5% Non-Cash 7% Sponsorships 20% Memberships & Dues CONTRIBUTIONS BY CATEGORY (EXCLUDES GGF RELATED MATCHING CONTRIBUTIONS) 14% Matching Gifts 5% Non-Cash 13% United Way 2% Environmnetal 6% Civic & Community 9% Health & Human Services 10% Education 28% Business & Economic Development 13% Culture & Arts 2014 Norfolk Southern Foundation Annual Report 5
ITEMIZED CONTRIBUTIONS BY CATEGORY (major grants are itemized) By Norfolk Southern Foundation and Norfolk Southern Corporation (excluding matching gifts and GGF-related matching contributions) COMMUNITY RELATIONS United Way 2013 2014 % Difference Hampton Roads $236,500 $240,000 1.5% Roanoke 184,370 184,370 0.0% Atlanta 182,000 182,000 0.0% Other agencies 951,680 1,045,650 5.5% Total United Way $1,554,550 $1,652,020 6.3% Health and Human Services Foodbank of Southeastern Virginia $135,000 Grady Memorial Hospital 110,000 American Red Cross 76,250 ForKids 61,000 Atlanta Community Food Bank 55,000 Feeding America Southwestern Virginia 50,000 YMCA of South Hampton Roads 37,500 Children s Hospital of the King s Daughters 32,500 Central Pennsylvania Food Bank 31,500 Food Bank of Central & Eastern North Carolina 30,000 Others 488,777 Total Health and Human Services $1,209,145 $1,107,527-8.4% Total Community Relations $2,763,695 $2,759,547-0.15% 6 2014 Norfolk Southern Foundation Annual Report
EDUCATION (EXCLUDING ALL MATCHING GIFTS) Operating Grants 2013 2014 % Difference Georgia Tech Foundation $61,250 College of William & Mary College (Business & Law School) 42,500 Old Dominion University 35,000 Michigan State University 32,250 North Carolina State University Engineering Foundation 32,250 Virginia Tech Foundation 28,250 Other 273,600 Total Operating Grants $487,640 $505,100 3.58% Capital Grants Eastern Virginia Medical School $100,000 Roanoke College 25,000 Virginia Wesleyan College 25,000 Other 31,000 Total Capital Grants $195,000 $181,000-7.18% State & National Fund Raising Virginia Foundation for Independent Colleges $50,000 Independent College Funds 65,000 Total State & National Fund Raising $105,000 $115,000 9.52% Scholarships & Fellowships National Merit Scholarship Corporation $94,560 ACCESS Scholarship Foundation 65,000 Other 36,000 Total Scholarships & Fellowships $229,100 $195,560-14.60% Other Jefferson County Board of Education $50,000 Virginia Early Childhood Foundation 50,000 Other 140,575 Total Other $204,875 $240,575 17.43% Total Education $1,221,615 $1,237,235 1.29% 2014 Norfolk Southern Foundation Annual Report 7
CULTURE AND THE ARTS (EXCLUDING MATCHING GIFTS) Music 2013 2014 % Difference Virginia Symphony $90,000 Virginia Opera 80,000 Roanoke Symphony 29,120 Other 27,880 Total Music $139,750 $227,000 62.43% Museums Smithsonian Institution $150,000 Virginia Museum of Transportation 152,000 Tennessee Valley Railroad Museum 125,000 Chrysler Museum of Art 105,000 North Carolina Transportation Museum 50,000 Other 153,980 Total Museums $476,220 $735,980 54.55% Public Radio & Tv WHRO $65,000 Blue Ridge PBS 7,280 Total Public Radio & Tv $71,450 $72,280 1.16% Arts Funds Or Councils Business Consortium for Arts Support $45,870 Other 11,000 Total Arts Funds Or Councils $55,180 $56,870 3.06% Theatres Virginia Stage Company $130,000 Mill Mountain Theatre 27,500 Other 11,000 Total Theatres $142,675 $168,500 18.10% 8 2014 Norfolk Southern Foundation Annual Report
Cultural Centers Kennedy Center for the Performing Arts $60,000 Western Virginia Foundation for the Arts & Sciences 51,500 Jefferson Center 35,000 Woodruff Arts Center 30,100 Other 25,000 Total Cultural Centers $177,655 $201,600 13.48% Dance Richmond Ballet $10,000 Total Dance $10,000 $10,000 0.00% Libraries Slover Library Foundation $50,000 Other 14,500 Total Libraries $63,902 $64,500 0.94% Other Virginia Arts Festival $80,000 Young Audiences Arts for Learning - Atlanta 36,540 Zoo Atlanta 30,000 Indiana Historical Society 25,000 Other 26,250 Total Other $284,910 $197,790-30.58% Total Culture and the Arts $1,421,742 $1,734,520 22.00% 2014 Norfolk Southern Foundation Annual Report 9
BUSINESS & ECONOMIC DEVELOPMENT Business & Economic Development 2013 2014 % Difference American Coalition for Clean Coal Energy $2,000,000 Virginia Center for Coal Research and Energy (ARIES) 525,000 Business Roundtable 170,000 U.S. Chamber of Commerce 110,000 Richmond 2015 75,000 National Association of Manufacturers 71,590 Georgia Allies 50,000 Operation Lifesaver 15,000 Business memberships and dues (not included elsewhere) 254,749 Business sponsorships (not included elsewhere) 222,800 Chambers and other state-level business groups (various) 162,565 Other 31,250 Total Business & Economic Development $2,560,983 $3,687,954 44.00% CIVIC & COMMUNITY Civic & Community 2013 2014 % Difference Local police, fire, and emergency services $105,450 Urban League of Hampton Roads 27,500 Urban League of Greater Atlanta 25,000 LEAD VA 25,000 The Norfolk Forum 25,000 Other 502,735 Total Civic & Community $670,360 $710,685 6.02% 10 2014 Norfolk Southern Foundation Annual Report
ENVIRONMENTAL Environmental 2013 2014 % Difference Chesapeake Bay Foundation $50,000 The Longleaf Alliance 50,000 Elizabeth River Project 30,000 Nature Conservancy of Virginia 25,000 American Chestnut Foundation 25,000 Other 81,500 Total Environmental $255,500 $261,500 2.35% NON-CASH GIFTS Rolling Stock & Equipment 2013 2014 % Difference Various freight cars to transportation museums and community organizations $60,019 Equipment and materials 216,495 Total Rolling Stock & Equipment $123,631 $276,514 123.66% Real Property Columbus, Franklin County, Ohio Donation of 0.678 acres $50,000 Boones Mill, Virginia Donation of Depot Building 15,771 Total Real Property $0 $65,771 100% Donated Transportation Various transportation moves for non-profits $307,095 Total Donated Transportation $156,560 $307,095 96.15% Other 2013 2014 % Difference Miscellaneous Donations $500 Total Miscellaneous Donations $500 $0 Total Non-Cash Gifts $280,691 $649,380 131.35% 2014 Norfolk Southern Foundation Annual Report 11
MATCHING GIFTS In 2014, the Foundation matched 1,263 gifts to 487 organizations. A total of $1,764,071 was paid under the Matching Gift program, a 6.56% increase or $108,659 over the previous year. THE MATCHING GIFTS FOR 2014 WERE DISTRIBUTED AMONG THE ELIGIBLE CATEGORIES AS FOLLOWS: Education $1,078,882 (611 gifts matched to 263 institutions) Arts/Culture $662,478 (610 gifts matched to 205 organizations) Environmental $22,711 (42 gifts matched to 19 organizations) THE TOP 10 ORGANIZATIONS RECEIVING MATCHING GIFTS WERE: Roanoke College $90,109 Virginia Tech Foundation, Inc. $62,099 The Chrysler Museum $56,275 Virginia Symphony $48,428 Marshall-Wythe School of Law Foundation $41,592 Virginia Episcopal School $40,720 Virginia Military Institute Foundation $39,408 Virginia Wesleyan College $37,750 University of Chicago $35,000 Museum of Contemporary Art $35,000 Organizations qualifying for Matching Gifts include certain educational institutions, arts/cultural organizations and environmental organizations that are located in the United States, recognized as tax-exempt, non-profit organizations under Section 501(c)(3) of the Internal Revenue Code, and independent of Norfolk Southern. 12 2014 Norfolk Southern Foundation Annual Report
GOOD GOVERNMENT FUND RELATED MATCHING CONTRIBUTIONS Dating back to 2008, contribution totals include matching contributions provided to charitable organizations as part of the Corporation s GGF Matching Contributions Program. Under this program, employees who contribute to the GGF may designate any tax-exempt charitable organization as the recipient of an equivalent contribution from the Corporation. In 2014, the Corporation contributed $994,489 through this program, an 11.2% increase or $100,087 over the previous year s total. LOCAL DISCRETION GRANT PROGRAM The local discretion grant program sponsored by the Corporation allows each operating division of Norfolk Southern Railway Company to recommend contributions, and allows those divisions to demonstrate good corporate citizenship. Each division may make recommendations for up to $20,000 of contributions annually. A total of $220,000 was paid out under the program in 2014, which was an increase of 17.6% over 2013. Community volunteer fire departments, rescue squads, and police departments received $104,450; arts, cultural, and historic organizations received $22,250; civic, community relations and human services organizations received $86,600; and educational institutions received $6,700. DIVERSITY The Foundation tracks grants made to organizations that support the Corporation s mission to enhance diversity in the workplace. For 2014, a total of $236,850 in grants was awarded to organizations that support higher education for minorities and women, more productive community relations and services to underserved populations in Norfolk Southern s operating territory. Among the recipients were ACCESS Scholarship Foundation, North Carolina A&T State University, Society of Women Engineers, the National Society of Black Engineers and the Urban Leagues of Hampton Roads and Greater Atlanta. 2014 Norfolk Southern Foundation Annual Report 13
CONTRIBUTIONS BY MAJOR GEOGRAPHIC LOCATION (EXCLUDING MATCHING GIFTS AND GGF RELATED MATCHING CONTRIBUTIONS) A breakdown of 2014 contributions by category and geographic location is as follows: Atlanta $785,989 ($744,539 in 2013 increase of 5.6%) Civic & Community 22 % Culture/Arts 14 % Education 10 % Environment 3 % Other Health/Human Services 28 % United Way 23 % Hampton Roads $1,935,826 ($2,105,692 in 2013 decrease of 8.1%) Civic & Community 8 % Culture/Arts 36 % Education 14 % Environment 4 % Other Health/Human Services 26 % United Way 12 % Roanoke $654,572 ($587,647 in 2013 increase of 11.4%) Civic & Community 4 % Culture/Arts 53 % Education 5 % Environment 0 % Other Health/Human Services 9 % United Way 29 % In 2013, contributions made from the Rothko sale affected our regional giving in both Norfolk and Roanoke. Details of that impact are reflected in the 2013 Annual Report. For the purposes of comparison, the special Rothko gifts are excluded from all 2013 figures referenced in this 2014 report. 14 2014 Norfolk Southern Foundation Annual Report
LONG-TERM PLEDGES In 2014, payments were completed by the Norfolk Southern Foundation and the Corporation on 16 long-term pledges, and 8 new long-term pledges were authorized. NEW PLEDGES Organization Annual Payment Years Pledged The Board of Education of the City of Chicago $25,000 2 Chicago Parks Foundation $10,000 2 Georgia Research Alliance $6,250 4 The Hurrah Players $10,000 5 Jefferson Center $25,000 2 Mill Mountain Theatre $20,000 3 National Safety Council $25,000 3 Union Station Kansas City, Inc. $10,000 5 EXISTING PLEDGES Type* Organization Annual Payment Years Pledged F Children s Hospital of the King s Daughters $25,000 0 F Eastern Virginia Medical School $50,000 0 C Friends of McCalla $125,000 0 F Grady Memorial Hospital $100,000 0 F Greater Bluefield Community Center $10,000 0 C Jefferson County Board of Education $50,000 0 C McAdory Area Fire District $150,000 0 F The Nature Conservancy of Virginia $25,000 0 F Roanoke College $25,000 0 F Salvation Army Tidewater Area Command $25,000 0 F University of Missouri St. Louis/Barriger Library $10,000 0 F Virginia Business Higher Education Council $10,000 0 F Virginia Stage Company $50,000 0 F Western Virginia Foundation for Arts & Sciences $20,000 0 F William and Mary Law School $30,000 0 F Zoo Atlanta $30,000 0 C The Board of Education of the City of Chicago $25,000 1 C Chicago Parks Foundation $10,000 1 F Eastern Virginia Medical School (Special Matching Grant) $50,000 1 2014 Norfolk Southern Foundation Annual Report 15
EXISTING PLEDGES (continued) Type* Organization Annual Payment Years Pledged B Hampton Roads Center for Civic Engagement $10,000 1 F Jefferson Center $25,000 1 F Lowcountry Open Land Trust $10,000 1 B The Norfolk Forum $25,000 1 F Operation Our Town $10,000 1 B Richmond 2015 $75,000 1 C Virginia Center for Coal and Energy $500,000 1 B Virginia Museum of Fine Arts $25,000 1 F Virginia Wesleyan College $25,000 1 B Hampton Roads Chamber of Commerce Foundation/ Hampton Roads Economic Development Alliance $50,000 2 F Indiana Historical Society $25,000 2 F Kennesaw Museum Foundation $25,000 2 B Lead Virginia $25,000 2 F Mill Mountain Theatre $20,000 2 B National Safety Council $25,000 2 F North Carolina Transportation Museum Foundation $50,000 2 B Roanoke Regional Partnership $5,000 2 F Slover Library Foundation $50,000 2 F WHRO $20,000 2 F Chesapeake Bay Foundation $50,000 3 F Chrysler Museum of Art $100,000 3 F Georgia Research Alliance $6,250 3 B Metro Atlanta Chamber of Commerce $10,000 3 F Old Dominion University Educational Foundation $25,000 3 F Science Museum of Western Virginia $10,000 3 F The Hurrah Players $10,000 4 F Union Station Kansas City, Inc. $10,000 4 * F Foundation, B Business, C Corporate 16 2014 Norfolk Southern Foundation Annual Report
2015 FUNDING STATUS For the 2015 funding year, the Foundation received 239 proposal requests, seeking approximately $8.01 million, by the September 30, 2014 deadline. Of these requests, 40 core organizations in Norfolk, Roanoke and Atlanta were funded (including independent college funds); and 77 organizations, including 13 first-time recipients, received pledges for funding. In addition, $360,000 was set aside for grants to colleges and universities in support of Norfolk Southern s scholarship programs. For 2015, the Trustees authorized a budget of $8.0 million, which was a $1 million increase from the previous year s budget. The Foundation anticipates funding $7.5 million in 2015. Through April 30, 2015, The Foundation awarded a total of $2,048,260 in Grants and Matching Gifts. Business payments were $1,772,460 and Corporate Contributions were $650,000. The estimated market value of Foundation assets on April 30, 2015, was $4,314,919.31. 2014 Norfolk Southern Foundation Annual Report 17
40.8792.0615.60 THREE COMMERCIAL PLACE NORFOLK, VIRGINIA 23510 www.nscorp.com