2008 Annual Report - Pacific Forest Trust

Winning Contributors

We gratefully acknowledge the following individuals, foundations and businesses that helped make our work in 2008 possible.

$50,000-$99,999 S.D. Bechtel, Jr. Foundation Bella Vista Foundation Merck Family Fund National Fish and Wildlife Foundation David and Lucile Packard Foundation $25,000-$49,999 Ayrshire Foundation Bullitt Foundation Community Foundation Sonoma County's Schulz Donor Advised Fund Compton Foundation John & Elaine French Family Foundation Laird Norton Family Foundation James & Rebecca Morgan Family Foundation Donald Putnam & Susann Kellison Tebbe Family Foundation William Laney & Pasha Dritt Thornton/ Flora L. Thornton Foundation Town Creek Foundation $10,000-$24,999 Allan & Marilyn Brown Harney & Sons Fine Teas Heller Charitable & Educational Fund Roy A. Hunt Foundation Libra Foundation Linden Trust for Conservation Marisla Foundation Moore Charitable Foundation Nancy Nordhoff San Francisco Foundation Larry & Carla Smith Charlie Swindells & Darci Holmquist Karie & David Thomson Weeden Foundation $5,000-$9,999 Truman & Kristin Collins Horatio B. Ebert Charitable Foundation Misty & Lewis Gruber Kongsgaard-Goldman Foundation Kirk Marckwald & Christina Desser Mendocino Redwood Company Mark & Bonnie Miller Gilman & Marge Ordway Pacific Gas & Electric Company Walter & Jeanne Sedgwick Timothy & Billie Taylor/Ecohaus Andrea & Don Tuttle

$2,500-$4,999 Autodesk Donald Miller Campbell Family Foundation Cantor CO2e Cherida Collins Smith & Glenn Smith Peter Davis Gordon & Betty Moore Foundation K&L Gates Nancy Kittle Ruthanne Lorentzen MTR Western Pieter & Jacqui Smith Sullivan & Worcester Cynthia Wayburn WM Beaty & Associates $1,000-$2,499 John Bernstein Constance Best Peter Boyer & Terry Gamble California Ski Industry Association The Campbell Group Donald & Gayle Collat The Collins Companies Kate Ditzler & Stuart Gasner Green Diamond Resource Company Nancy Fardelmann Betsy & Jesse Fink Fund Laura & John Fisher John Fullerton John Graham & Katherine Munro/ Knox Family Foundation Green Mountain Energy Company Hancock Timber Resource Group George Helmholz Maurice & Janice Holloway Bennett Johnston Robert & Edie Kirkwood LEF Foundation Perry & Tricia Lloyd Dixon Long MMA Sustainable Land Investments Stephen & Amanda Morris Pisces Foundation Port Blakely Tree Farms James D. Range Jim Rinehart/ R&A Investment Forestry Bob Schofield Peter Stein & Lisa Cashdan/ Lyme Timber Company William & Claudia Stelle Brooks Walker, Jr. Laurie A. Wayburn Edgar Wayburn, M.D. $500-$999 Bill Banzhaf & Adela Backiel Frances Beren Anthony & Carol Boutard Joseph Bunker Leslie Walker Burlock & Walter Burlock

Lew & Sheana Butler Norman & Portia H. Christensen, Jr. Terry & Barbara Collins Jesse Collins Ed & Kerry Cooper Tom Cronquist Julie Dickerson Robert Flint, Jr. David Frenznick Alison Geballe/Eucalyptus Associates Kass Green & Gene Forsburg Edmund Hayes, Jr. Mrs. A. Carl Helmholz Bill Hutton Douglas P. Ley William & Julie Parish Judson M. Parsons Hal & Janine Salwasser George & Anita Thompson Eric Tilenius Trillium Asset Management Steve Van Landingham & Matthew O'Grady Kirby Walker & Paul Danielsen William Wayburn $250-$499 Michael & Jeanne Adams Leslie & Doug Ballinger Ralph Benson Charles & Kristine Cardall Dave & Linda Cox James P. Finerty Michael Gallagher & Ruth Shapiro Lorraine Gallard/Bonness Enterprises Gary Hendrix Joe Houghteling Betsy Jewett Drew Maran & Sandra Slater Dan McNevin Martha Nelson & Kristine Peterson Jim & Lisa Nicol Peter & Julie Parker George Peyton, Jr. Michael Rorick Tom & Nona Russell Sealaska Corporation Steve & Renee Thompson Alicia Torre & Jonathan B. Nimer Mariquita West, M.D. & Celia Thompson-Taupin Georgia Westdahl Bill Wilkinson $50- $249 Michael & Susan Addison Cynthia Beren Gwendolyn Dhesi & Nirmal Singh Theodore & Patricia Eliot Katie Falkoff Douglas & Jane Ferguson Dwight & Joann Freund George Gaines & Mary Moore Laurie R. Gneiding & Michael J. Brady

H. Cort Gross & Mary Trombadore Edward O'Brien & Patricia Hickey Gus Kaufman, Jr. Marianna Kaufman & Diana Aleman in honor of Marian W. Kaufman Konrad Liegel & Karen Atkins Mike Liquori Samuel & Cindy Livermore Bridgett Luther & Tim Ahern Ross MacWhinney Sylvia McLaughlin William & Janet McLennan Osha Meserve Amy Meyer Wes Miller Greg Myers Theresa Nelson Jennifer Niedermeyer Patrick Noonan Ann Paglione Ben Patton Alicia Robbins & James P. Andrews Jeff Romm Leo Roy Gary C. Rynearson Elizabeth Sedgwick Ed & Marjorie Small Steven A. Small Linda Snyder Tania & Michael Stepanian Frank Tsai & Frances Reynolds-Tsai Doug Wickizer Kirke Wolfe Delphine Zeuli In-Kind Donations Alexander Valley Vineyards Ansel Adams Gallery Back to Earth Catering ESRI Frey Vineyards Husch Vineyards Jeremiah's Pick Coffee John Bentley's Restaurant Lagunitas Brewing Company Madroña Vineyards McEvoy Ranch Method Products Navarro Vineyards Oak Hill Farm Patagonia Phillips Bros. Mill & Tree Farm Ravenswood Winery Saintsbury Winery San Francisco Hat Company San Francisco Symphony SOAR Inflatables Soluri, Emrick and Meserve Sports Basement Sugar Bowl Ski Resort Veritable Vegetable *Due to space limitations, we regret we've been unable to list all those who generously donated up to $49

Everyone

Wins with Woods 2 0 0 8 A nn ua l R eport

© 2009 The Pacific Forest Trust. All rights reserved. Printed on recycled paper with soybean inks.

$100,000 and Up Energy Foundation Richard & Rhoda Goldman Fund James Irvine Foundation Henry P. Kendall Foundation Robertson Foundation Surdna Foundation

Celebrating Fifteen Years of Conservation and Climate Solutions

Winning Congressional Support

“The Pacific Forest Trust’s efforts to expand the conservation and stewardship of America’s working forests are yielding great public benefits. Forests are essential to healing our climate and must be part of any comprehensive strategy to combat the climate crisis.”

For the Love of Family Forests Partnering with the Sierra Nevada Conservancy and the Smith family, PFT helped conserve more than 400 acres of at-risk, family-owned forestlands bordering the Stanislaus National Forest and Big Trees State Park in California’s Calaveras County as part of our ongoing Love Creek Working Forests Project. In 2008, the Smith family worked in partnership with PFT to launch a CO2 emissions reductions project with California's Climate Action Reserve based on their excellent forestry.

Speaker Nancy Pelosi United States House of Representatives California

“I love the fact that 'Everyone Wins with Woods.' So, I am committed to continuing to work with the Pacific Forest Trust to make sure that there are strong incentives for sustainable forest management practices, to think outside the box to protect and preserve our forests and to use this opportunity to tackle what is the real challenge of our generation: global warming.” Senator Debbie Stabenow United States Senate Michigan

“The Pacific Forest Trust’s innovative efforts utilizing market forces to reward forest owners for managing their lands sustainably have made it a pioneer in its field. The Trust has been instrumental in championing conservation of our nation’s forests and the critical role they play in the fight against global warming. Their commitment to improving our environment is truly admirable and will contribute to the health of our planet for generations to come.” Senator Dianne Feinstein United States Senate California

“For the past 15 years, the Pacific Forest Trust has done exceptional work to protect America’s forests. By working with private landowners, forest managers and other stakeholders, PFT is ensuring that private forest land is preserved for wildlife, water use and climate control.”

“With the conservation agreement we’ve entered into with the Pacific Forest Trust, not only are we protecting our land from development, we have the opportunity to generate additional revenue by practicing sustainable forestry that yields both timber products and climate benefits.” Larry Smith Family Forest Owner Love Creek Forest

Winning

Riding Clean & Green with MTR Western

Conservation Gains

Readying the Klamath-Cascade Greenprint for the Future

Senator Barbara Boxer United States Senate

California

2008 Financial Review

Revenue: $501,076

Grants for Operations: $1,457,588 ••Foundation Recision of Foundation Grant Receivable for Land Acquisition: -$929,039 and Business Donations: $234,239 ••Individual Investment Income Net of Unrealized Losses: -$772,510 for Services & Government Grants: $505,378 ••Fee Other Income: $5,420 *

*

*Non-cash losses including write-off of land acquisition grant receivable due to program termination

Expenses: $2,627,245

$2,115,396 (80%) ••Programs: General and Administrative: $281,326 (11%) •Fundraising: $230,523 (9%) NOTE: Unaudited financials subject to auditor adjustments. The audited 2008 financial summary will be available on our website in the summer. Complete financial statements and an independent auditor’s report will also be available upon request at that time.

During 2008, PFT expanded its dialogue with landowners, community leaders, land use experts and other stakeholders in California’s “wood basket” – the KlamathCascade eco-region – to discuss the future of what is one of the most productive and biodiverse conifer regions in the world. These meetings helped inform the research we’ve been conducting in developing our strategy for our Klamath-Cascade Greenprint for the Future. These strategies and relationships will, in turn, lead to the conservation of tens of thousands of acres of high-priority forestlands in this ecologically vital region that supplies California with the majority of its drinking water.

“We had a vision when we first made contact with the Pacific Forest Trust of a forest that could not be subdivided or broken up; of a forest that would be harvested in perpetuity as a biodiverse, multi-age forest with trees of every size; of a forest that would be maintained the same way my uncles had cared for it; and of a forest that would continue to be passed on from one generation to the next. I thank PFT for helping us realize that vision.” Gary Hendrix Family Forest Owner Phillips Brothers Mill and Tree Farm 2008 Forest Champion of the Year

Monumental Victory PFT worked with Speaker Nancy Pelosi, U.S. Senators Ron Wyden, Gordon Smith and Dianne Feinstein, Representative Peter DeFazio and the Bureau of Land Management (BLM) to secure funding for the successful transfer of the first 900 acres of critical and previously threatened forestlands acquired by PFT within the Cascade-Siskiyou National Monument planning area into public ownership in December 2008. PFT plans to convey all of its 5,000 acres to the BLM as part of our Campaign to Complete the Vision of full protection for our nation’s first monument dedicated to biodiversity.

“The Pacific Forest Trust has been a great partner in the long struggle we’ve fought to conserve land within the Cascade-Siskiyou National Monument.” Senator Ron Wyden United States Senate Oregon

Farm Bill Honors for Working Forests

The Pacific Forest Trust and fellow members of the Forests in the Farm Bill Coalition received the 2008 Stan Adams Current Achievement Award for Partnerships from the National Association of State Foresters. The award was given in recognition of the coalition’s outstanding work collaborating with Congress to develop landmark legislation aimed at protecting working forests and the economic and environmental benefits they provide.

Partnering to Protect the Sierra Valley In California’s Sierra Valley – where we have previously conserved 2,700-plus acres of forest and ranch lands – PFT collaborated with several landowners in 2008 to design working forest conservation easements that, when finalized in the years ahead, will create a conservation corridor of more than 7,200 acres where the headwaters of the Feather River form the largest alpine wetland in North America.

Providing Safe Harbor and Sustainable timber The U.S. Fish and Wildlife Service approved a Safe Harbor Agreement with PFT in 2008 for the management of the Van Eck Forest in California. This innovative agreement recognizes that the stewardship forestry practiced on Van Eck – under the terms of a working forest conservation easement – meets the goals of the Endangered Species Act and will provide vital new protection for threatened Northern Spotted Owls. This "win-win" represents another conservation milestone for PFT, one that demonstrates active forest management can protect and restore critical habitat while, over time, yielding ever more sustainable timber.

“The Pacific Forest Trust is fully engaged in bringing the principles of science and conservation to the development and implementation of forest policy.” Jerry Franklin, Ph.D. Professor of Forest Ecology University of Washington 2008 Sequoia Award recipient

Monumental Victory PFT worked with Speaker Nancy Pelosi, U.S. Senators Ron Wyden, Gordon Smith and Dianne Feinstein, Representative Peter DeFazio and the Bureau of Land Management (BLM) to secure funding for the successful transfer of the first 900 acres of critical and previously threatened forestlands acquired by PFT within the Cascade-Siskiyou National Monument planning area into public ownership in December 2008. PFT plans to convey all of its 5,000 acres to the BLM as part of our Campaign to Complete the Vision of full protection for our nation’s first monument dedicated to biodiversity.

“The Pacific Forest Trust has been a great partner in the long struggle we’ve fought to conserve land within the Cascade-Siskiyou National Monument.” Senator Ron Wyden United States Senate Oregon

Farm Bill Honors for Working Forests

The Pacific Forest Trust and fellow members of the Forests in the Farm Bill Coalition received the 2008 Stan Adams Current Achievement Award for Partnerships from the National Association of State Foresters. The award was given in recognition of the coalition’s outstanding work collaborating with Congress to develop landmark legislation aimed at protecting working forests and the economic and environmental benefits they provide.

Partnering to Protect the Sierra Valley In California’s Sierra Valley – where we have previously conserved 2,700-plus acres of forest and ranch lands – PFT collaborated with several landowners in 2008 to design working forest conservation easements that, when finalized in the years ahead, will create a conservation corridor of more than 7,200 acres where the headwaters of the Feather River form the largest alpine wetland in North America.

Providing Safe Harbor and Sustainable timber The U.S. Fish and Wildlife Service approved a Safe Harbor Agreement with PFT in 2008 for the management of the Van Eck Forest in California. This innovative agreement recognizes that the stewardship forestry practiced on Van Eck – under the terms of a working forest conservation easement – meets the goals of the Endangered Species Act and will provide vital new protection for threatened Northern Spotted Owls. This "win-win" represents another conservation milestone for PFT, one that demonstrates active forest management can protect and restore critical habitat while, over time, yielding ever more sustainable timber.

“The Pacific Forest Trust is fully engaged in bringing the principles of science and conservation to the development and implementation of forest policy.” Jerry Franklin, Ph.D. Professor of Forest Ecology University of Washington 2008 Sequoia Award recipient

Scientists Unite Around Forests and Climate benefits PFT convened a Climate Task Force of top ecologists and economists to shape a comprehensive vision for how the conservation and sustainable management of U.S. forests will help fight global warming. The group – which includes members from the Nicholas School of the Environment at Duke University, the Cary Institute for Ecosystem Services and the universities of Washington, Georgia, Wisconsin and Oregon State – discussed core strategies for restoring forest carbon stocks by reducing forest loss, restoring former forests and increasing volume of carbon in our forests. The task force has continued to collaborate on research related to this topic and is working toward publishing a report later in 2009.

“I cannot begin to say how important it is to have an organization like the Pacific Forest Trust showing how forests can actually work in a very tangible way to improve the world’s forest carbon budget. The whole world needs to be managing their forests in the way PFT is encouraging. Their exemplary work is absolutely central to a better future for life on earth for us all.” Thomas Lovejoy, Ph.D. Biodiversity Chair Heinz Center for Science, Economics and the Environment 2008 Forest Fete Keynote Speaker

High Quality Forest Carbon Offsets in Demand The year 2008 proved beyond a doubt that our climate and forest owners can both benefit from commitments to conserve and sustainably manage forests for additional and lasting carbon sequestration. High-profile sales of Van Eck Forest Project emission reductions (ERs) demonstrated that businesses and other climate leaders are finding real value in the “carbon capture” capacity of forests when the accounting is rigorous and the reductions are permanent and verifiable. Natsource Asset Management, the world’s largest carbon credit buyer, purchased 60,000 metric tons of Van Eck verified ERs as an investment for their clients. MTR Western, a charter motorcoach operator, purchased 6,000 metric tons to help make its fleet buses “net carbon negative.” Sterling Planet, 3Degrees and Green Mountain Energy purchased Van Eck ERs to offer directly to consumers. And the City of San Franicsco used Van Eck ERs to help offset emissions associated with the Olympic Torch Relay. PFT closed the year by assisting three more private forest owners to list new projects with California’s Climate Action Reserve.

“Forestry can and should be an important part of the portfolio of climate change solutions moving forward. This deal between Natsource, the Fred M. van Eck Forest Foundation and the Pacific Forest Trust illustrates that when rigorous, clear rules are adopted, these investments can reduce costs for our compliance customers and provide attractive investment opportunities with enduring environmental and economic benefits.” Jack Cogen President & Chief Executive Officer Natsource

PFT Leadership Recognized People magazine celebrated the work of PFT co-founders Connie Best and Laurie Wayburn in their Earth Day issue and declared them “Protectors of the Planet” for their leadership promoting the climate benefits provided by forests. In the article, Speaker Nancy Pelosi said “Laurie and Connie are doing for forests today what Jacques Cousteau did for marine conservation.” PFT also was recognized with Wayburn’s receipt of the James Irvine Foundation Leadership Award, Land Trust Alliance’s Kingsbury-Browne Conservation Leadership Award and a fellowship with the Lincoln Institute of Land Policy.

“While others were simply thinking about carbon credits, Laurie Wayburn and her team were designing a credible, state-adopted system for measuring and selling emissions reductions for forests that is now considered a model.” Russ Shay Director of Public Policy Land Trust Alliance

Winning

Climate

achievements

Western Roots, National Influence PFT continued to work closely with the state of California and climate stakeholders to build out the fundamentals of the state’s climate solutions program, a program that has emerged as a model for others regionally and nationally. PFT‘s staff expanded beyond California, Oregon and Washington to include team members in Washington, D.C., and Boston. This expansion has allowed us to work with climate leaders and forest owners in the northwest, mid-Atlantic, New England and southern states – and in our nation’s capital – to promote sound forest-based climate policies that can be used to help tackle the global warming crisis. We also began working with Al Gore and his Alliance for Climate Protection and advising the Green Group, whose members represent the nation’s top environmental organizations active on Capitol Hill.

“I am convinced that without the Pacific Forest Trust, we wouldn't be so well positioned to put forests into a climate framework. And that's due to PFT's relentlessness in pursuit of protecting private forestlands.” Sally Collins Director USDA Office of Ecosystem Services and Markets

Scientists Unite Around Forests and Climate benefits PFT convened a Climate Task Force of top ecologists and economists to shape a comprehensive vision for how the conservation and sustainable management of U.S. forests will help fight global warming. The group – which includes members from the Nicholas School of the Environment at Duke University, the Cary Institute for Ecosystem Services and the universities of Washington, Georgia, Wisconsin and Oregon State – discussed core strategies for restoring forest carbon stocks by reducing forest loss, restoring former forests and increasing volume of carbon in our forests. The task force has continued to collaborate on research related to this topic and is working toward publishing a report later in 2009.

“I cannot begin to say how important it is to have an organization like the Pacific Forest Trust showing how forests can actually work in a very tangible way to improve the world’s forest carbon budget. The whole world needs to be managing their forests in the way PFT is encouraging. Their exemplary work is absolutely central to a better future for life on earth for us all.” Thomas Lovejoy, Ph.D. Biodiversity Chair Heinz Center for Science, Economics and the Environment 2008 Forest Fete Keynote Speaker

High Quality Forest Carbon Offsets in Demand The year 2008 proved beyond a doubt that our climate and forest owners can both benefit from commitments to conserve and sustainably manage forests for additional and lasting carbon sequestration. High-profile sales of Van Eck Forest Project emission reductions (ERs) demonstrated that businesses and other climate leaders are finding real value in the “carbon capture” capacity of forests when the accounting is rigorous and the reductions are permanent and verifiable. Natsource Asset Management, the world’s largest carbon credit buyer, purchased 60,000 metric tons of Van Eck verified ERs as an investment for their clients. MTR Western, a charter motorcoach operator, purchased 6,000 metric tons to help make its fleet buses “net carbon negative.” Sterling Planet, 3Degrees and Green Mountain Energy purchased Van Eck ERs to offer directly to consumers. And the City of San Franicsco used Van Eck ERs to help offset emissions associated with the Olympic Torch Relay. PFT closed the year by assisting three more private forest owners to list new projects with California’s Climate Action Reserve.

“Forestry can and should be an important part of the portfolio of climate change solutions moving forward. This deal between Natsource, the Fred M. van Eck Forest Foundation and the Pacific Forest Trust illustrates that when rigorous, clear rules are adopted, these investments can reduce costs for our compliance customers and provide attractive investment opportunities with enduring environmental and economic benefits.” Jack Cogen President & Chief Executive Officer Natsource

PFT Leadership Recognized People magazine celebrated the work of PFT co-founders Connie Best and Laurie Wayburn in their Earth Day issue and declared them “Protectors of the Planet” for their leadership promoting the climate benefits provided by forests. In the article, Speaker Nancy Pelosi said “Laurie and Connie are doing for forests today what Jacques Cousteau did for marine conservation.” PFT also was recognized with Wayburn’s receipt of the James Irvine Foundation Leadership Award, Land Trust Alliance’s Kingsbury-Browne Conservation Leadership Award and a fellowship with the Lincoln Institute of Land Policy.

“While others were simply thinking about carbon credits, Laurie Wayburn and her team were designing a credible, state-adopted system for measuring and selling emissions reductions for forests that is now considered a model.” Russ Shay Director of Public Policy Land Trust Alliance

Winning

Climate

achievements

Western Roots, National Influence PFT continued to work closely with the state of California and climate stakeholders to build out the fundamentals of the state’s climate solutions program, a program that has emerged as a model for others regionally and nationally. PFT‘s staff expanded beyond California, Oregon and Washington to include team members in Washington, D.C., and Boston. This expansion has allowed us to work with climate leaders and forest owners in the northwest, mid-Atlantic, New England and southern states – and in our nation’s capital – to promote sound forest-based climate policies that can be used to help tackle the global warming crisis. We also began working with Al Gore and his Alliance for Climate Protection and advising the Green Group, whose members represent the nation’s top environmental organizations active on Capitol Hill.

“I am convinced that without the Pacific Forest Trust, we wouldn't be so well positioned to put forests into a climate framework. And that's due to PFT's relentlessness in pursuit of protecting private forestlands.” Sally Collins Director USDA Office of Ecosystem Services and Markets

Winning Congressional Support

“The Pacific Forest Trust’s efforts to expand the conservation and stewardship of America’s working forests are yielding great public benefits. Forests are essential to healing our climate and must be part of any comprehensive strategy to combat the climate crisis.”

For the Love of Family Forests Partnering with the Sierra Nevada Conservancy and the Smith family, PFT helped conserve more than 400 acres of at-risk, family-owned forestlands bordering the Stanislaus National Forest and Big Trees State Park in California’s Calaveras County as part of our ongoing Love Creek Working Forests Project. In 2008, the Smith family worked in partnership with PFT to launch a CO2 emissions reductions project with California's Climate Action Reserve based on their excellent forestry.

Speaker Nancy Pelosi United States House of Representatives California

“I love the fact that 'Everyone Wins with Woods.' So, I am committed to continuing to work with the Pacific Forest Trust to make sure that there are strong incentives for sustainable forest management practices, to think outside the box to protect and preserve our forests and to use this opportunity to tackle what is the real challenge of our generation: global warming.” Senator Debbie Stabenow United States Senate Michigan

“The Pacific Forest Trust’s innovative efforts utilizing market forces to reward forest owners for managing their lands sustainably have made it a pioneer in its field. The Trust has been instrumental in championing conservation of our nation’s forests and the critical role they play in the fight against global warming. Their commitment to improving our environment is truly admirable and will contribute to the health of our planet for generations to come.” Senator Dianne Feinstein United States Senate California

“For the past 15 years, the Pacific Forest Trust has done exceptional work to protect America’s forests. By working with private landowners, forest managers and other stakeholders, PFT is ensuring that private forest land is preserved for wildlife, water use and climate control.”

“With the conservation agreement we’ve entered into with the Pacific Forest Trust, not only are we protecting our land from development, we have the opportunity to generate additional revenue by practicing sustainable forestry that yields both timber products and climate benefits.” Larry Smith Family Forest Owner Love Creek Forest

Winning

Riding Clean & Green with MTR Western

Conservation Gains

Readying the Klamath-Cascade Greenprint for the Future

Senator Barbara Boxer United States Senate

California

2008 Financial Review

Revenue: $501,076

Grants for Operations: $1,457,588 ••Foundation Recision of Foundation Grant Receivable for Land Acquisition: -$929,039 and Business Donations: $234,239 ••Individual Investment Income Net of Unrealized Losses: -$772,510 for Services & Government Grants: $505,378 ••Fee Other Income: $5,420 *

*

*Non-cash losses including write-off of land acquisition grant receivable due to program termination

Expenses: $2,627,245

$2,115,396 (80%) ••Programs: General and Administrative: $281,326 (11%) •Fundraising: $230,523 (9%) NOTE: Unaudited financials subject to auditor adjustments. The audited 2008 financial summary will be available on our website in the summer. Complete financial statements and an independent auditor’s report will also be available upon request at that time.

During 2008, PFT expanded its dialogue with landowners, community leaders, land use experts and other stakeholders in California’s “wood basket” – the KlamathCascade eco-region – to discuss the future of what is one of the most productive and biodiverse conifer regions in the world. These meetings helped inform the research we’ve been conducting in developing our strategy for our Klamath-Cascade Greenprint for the Future. These strategies and relationships will, in turn, lead to the conservation of tens of thousands of acres of high-priority forestlands in this ecologically vital region that supplies California with the majority of its drinking water.

“We had a vision when we first made contact with the Pacific Forest Trust of a forest that could not be subdivided or broken up; of a forest that would be harvested in perpetuity as a biodiverse, multi-age forest with trees of every size; of a forest that would be maintained the same way my uncles had cared for it; and of a forest that would continue to be passed on from one generation to the next. I thank PFT for helping us realize that vision.” Gary Hendrix Family Forest Owner Phillips Brothers Mill and Tree Farm 2008 Forest Champion of the Year