CHESAPEAKE BAY FOUNDATION 2007 ANNUAL REPORT CHESAPEAKE BAY FOUNDATION Saving a National Treasure m PRESIDENT AND CHAIRMAN’S MESSAGE As 2007 ends, CBF’s Board and staff thank you, our dedicated members, for supporting us. With volunteer hours, advocacy, and contributions, CBF members are responsible for our every success. litigate in Commonwealth courts. And we taught tens of thousands of students as the nation’s largest environmental educator. CBF has also entered the federal legislative arena by advocating reform to the federal Farm Bill and the federal No Child Left Behind Act. We have much to celebrate. Twenty-five years ago, there was no definitive agreement for restor- ^ Still, there is much to be done. As mg the Chesapeake Bay In fact, I f, Wk H B I CBF’s 2007 State of the Bay shows, the states were more likely to be I j M Jfl I poor water quality continues to fighting over the Bay than working Chesapeake Bay Foundation President threaten the Bay. Blue crabs, oys- together for it. Today, the states William C. Baker and Chairman D. Keith Campbell ters, and other species are strug- have formed a working pact and gling. And our revived striped bass signed the Chesapeake 2000 Agreement, which sets spe- population faces disease, failing food resources, and cific and measurable goals, an important first step. Twenty-five years ago, there were no sewage treatment plants on the Bay that had nitrogen removal technology. Today, more than half the plants do. Twenty-five years ago, striped bass were nearly gone. Today, they are plen- tiful. Twenty-five years ago, we had 10,000 members. Today, we have nearly 200,000. In just the past year, our legislative victories in Pennsylvania, Maryland, and Virginia resulted in hun- dreds of millions of dollars allocated to pollution reduc- tion. We have planted underwater grasses and living shorelines across the region, and we have started collab- orative investigations into precision feeding for farm ani- mals and waste-to-energy solutions for agricultural manure. Our combination of grassroots outreach, media work, and effective litigation defeated two proposed mega-developments that would have further polluted the Bay. CBF attorneys won a precedent-setting victory before Virginia’s Supreme Court, confirming our right to reduced habitat. Rising water temperatures threaten underwater grasses and pollution-filtering wetlands. Sprawling development continues to blight the landscape. 170,000 new people moved into the Bay watershed in 2007, each leaving an environmental footprint. Our elected officials know what must be done to get the Bay off the federal Clean Water Act’s “dirty waters” list by the court-imposed 2010 deadline. In 2008, we will push even harder to see that they follow good science and fund the existing restoration plans to meet the deadline. Thank you for making all of this possible. We will save the Bay. William C. Baker D. Keith Campbell TABLE OF CONTENTS Introduction AR3 New Outreach AR4 New Momentum AR8 New Investment AR12 Financials AR15 Leadership Back cover ► 3*? — ^ , - ■-# ' . ‘ ^ CBF’s Philip Merrill Environmental Center in Annapolis, Maryland, earned the Center for Built Environment’s Livable Building Award in 2007 for exemplifying the benefits of green technology in the workplace. AR2 CHESAPEAKE BAY FOUNDATION - CBF.ORG 2007 ANNUAL REPORT We don’t accomplish anything in this world alone. . .and whatever happens is the result of the whole tapestry of one’s life and all the weavings of individual threads from one to another that creates something. Sandra Day O’Connor At a September press conference at the Merrill Center, Senior Scientist Dr. Beth McGee explains CBF’s 2007 Bad Waters report to members of the media. Concern for the environment, coupled with a new determina- tion to stop the degradation of our water, land, and air, reached new heights of public consciousness in 2007. In the Bay states, citizens expressed a growing awareness of the toll that human activities are taking on the Chesapeake Bay, voiced their sup- port for vigorous new programs and funding for its recovery, and shared their conviction that saving the Bay and restoring our region’s waterways is an urgent and essential task. This public outcry reflects the Chesapeake Bay Foundation’s (CBF) 40-year effort to attack the causes of pollution, restore the natural landscape, and raise the con- sciousness of our citizens. Our goal is to achieve significant improvements and create lasting investments by 2010. This past year, our staff and volunteers dedicated them- selves to campaigns that linked the common interests of our members, farmers, watermen, teachers and students, the business sector, and environmental partners. The result was a powerful new synergy that yielded positive momentum and growing investment in pollution reduction. Basing our policies on sound science, we have aligned our goals with those laid out in the region’s 36 Tributary Strategies (river restoration plans). We have set our sights on leveraging CBF’s resources to enact this blueprint by the year 2010, as our region’s leaders agreed when they signed the self-imposed Chesapeake 2000 Agreement (C2K). We know that by aggressively reducing runoff from farmland and upgrading sewage treatment plants, we can achieve approximately 80 percent of the necessary pollution reductions for about 20 percent of the overall cost. As 2007 closes, we are at a tipping point. CBF has pushed hard to reduce pollution, secure funding, and provide countless opportunities for students, teachers, and others to experience the Bay. Progress is accelerating — but we have a long way to go to meet our objectives, and the government’s C2K annual pollution reduction target, by 2010. Like the public, we are convinced that these goals are nec- essary and achievable, and we imbue every one of our actions with that belief. 2007 ANNUAL REPORT AR3 AR4 CHESAPEAKE BAY FOUNDATION ■ CBF.ORG NEW OUTREACH Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. Margaret Mead CBF’s nationally acclaimed, hands-on educational experiences put students in touch with their local waterways and instill environmental awareness for the future. Reaching out through advocacy, volunteerism, education, alliances, and membership, CBF expanded and strength- ened its base of support in 2007. ADVOCACY As CBF’s outreach grows, so does our capacity for action. Nowhere was this more evident than in our 2007 advocacy campaigns: urging funding for pollution reduction in the federal Farm Bill and Pennsylvania’s Resource Enhancement and Protection Act (REAP), and opposing poorly-planned mega-developments. Across the watershed, CBF’s staff focused intensely on lobbying efforts, e-commu- nications, paid media, and direct outreach to educate citi- zens and politicians on the issues. Tens of thousands of CBF members and volunteers turned out for town hall meetings, responded to our call to contact their elected officials, and opened their homes for community discussions. Their efforts resulted in tangible gains for CBF initiatives. CBF ACTION NETWORK The CBF Action Network, our online community of Bay advocates, extended its reach in 2007. The network gener- ated a 12 percent increase (from 17,000 to 19,000 over the previous year) in the number of issue-oriented e-mails delivered to elected officials. These messages generated added political clout as we advocated for our issues and ensured that our voices continued to be heard. VOLUNTEERISM Throughout the watershed, more than 14,000 volunteers joined CBF’s active, hands-on efforts to reduce pollution and improve water quality. This year’s Clean the Bay Day in Virginia, an annual pick up of trash and debris in local waterways, attracted more than 6,000 participants — an all- time record. Additionally, a new corporate partnership with Starbucks brought its employees and customers to volunteer at restoration events in Maryland, the District of Columbia, 2007 ANNUAL REPORT AR5 and Virginia. These efforts reflect the kind of collaboration that has tremendous benefits for the Bay. Graduates of CBF’s three-year-old VoiCeS (Volunteers as Chesapeake Stewards) program, which combines in- depth tutorials on Bay issues with a commitment to 40 hours of community service, undertook outreach proj- ects in Maryland from Frederick to the Eastern Shore. VoiCeS-certified “Chesapeake Stewards” lent hands-on assistance, restoring oyster reefs, monitoring water qual- ity, and “greening” local schools. More than 50 partici- pants completed the program in 2007. VoiCeS began at CBF’s Heart of the Chesapeake Office in Salisbury, which leads our restoration and outreach efforts on Maryland’s Eastern Shore. Our important work in this region was initiated and has been sustained by lasting and meaningful support from the Mary Flagler Cary Charitable Trust. EDUCATION Environmental education has been an essential part of our mission for more than three decades, and our dedication and success have earned CBF recognition as the leading environmental educator in the country. Our program, the largest of its kind, offers unique field experiences, accred- ited professional development courses for teachers, stan- dards-based classroom curriculum materials, and student leadership opportunities. We also coordinate hands-on restoration projects for pupils, such as growing underwa- ter grasses for transplant, raising oysters, building rain barrels, designing rain gardens, and participating in schoolyard “greenification” projects. In 2007, CBF provided nearly 40,000 on-the-water educa- tional experiences for students and teachers throughout the Bay states. One supporter, the Beazley Foundation, helped underwrite Virginia field trips for nearly one thousand Hampton Roads students. “Our region is blessed with the natural beauty of the Chesapeake Bay and tributaries, and education promotes and enriches an appreciation of the Bay’s extraordinary value,” says Foundation President Judge Richard Bray. For the eighteenth consecutive year, another partner — the Great Chesapeake Bay Schooner Race — donated all proceeds from its annual event to our environ- mental education program. Upstream, the Susquehanna Watershed Education Program in Pennsylvania introduced 2,000 students to their local rivers and streams through support from concerned donors like Louis J. Appell of York. Appell’s support stems from his belief that “it is very important that students recognize the great significance that a healthy Bay has for our area.” This year, CBF also expanded its Student Leadership Program, running five summer trips for 63 participants from THE FACES OF CBF JJ.T. “JERRY” CRAWFORD CBF MEMBER OF THE YEAR CBF presented its 2007 Member of the Year award to J. T. “Jerry” Crawford, an active CBF vol- unteer and member for more than two decades. As a certified Bay Wise Master Gardener, a frequent worker at CBF’s Oyster Restoration Program, and a political advocate, Crawford is steeped in Bay knowledge, which he shares with the public at CBF Speakers Bureau presen- tations, fairs, and festivals. Since retiring from an international career with the Central Intelligence Agency, he has authored two works of historical fiction, Skipjack! and Beyond Reach. He donates 20 percent of his books’ proceeds to CBF AR6 CHESAPEAKE BAY FOUNDATION - CBF.ORG Imahk Von “The Beazley Foundation is pleased to partner with the Chesapeake Bay Foundation and Portsmouth Public Schools in providing ‘on-the-water’ experiences for local students,” says Beazley Foundation President Judge Richard Bray, shown here (second from right) with a group of Hampton Roads students. Tree planting events sponsored by CBF attracted participants from many sources. A new partnership with Starbucks provided volunteer manpower to projects across the Bay watershed. across the watershed. New to this effort in 2007 was the Student Action Network, an online program that provides high school students with ideas and resources for environ- mental projects they can do in their own communities. ALLIANCES Forming strong relationships with partners was a hall- mark of 2007. For example, a coalition of more than 125 national groups joined with CBF to reform the No Child Left Behind Act to ensure environmental instruction for our nation’s schoolchildren. Leaders in the health and construction industries allied themselves with a CBF ini- tiative in the Maryland legislature that created a fund ded- icated to improving water quality in the Bay. And the Chesapeake agricultural community backed CBF cam- paigns for Bay-saving funding (in Pennsylvania and in the federal Farm Bill) that would help farmers implement pol- lution reduction strategies. These working partnerships have amplified CBF’s effectiveness. Virginia Governor Tim Kaine stated that CBF’s work with diverse partners, including the Virginia Farm Bureau, is a compelling reason why he wants to continue to invest in pollution reduction measures, despite competing needs and tight fiscal restraints. MEMBERSHIP At the close of 2007, CBF membership reached an all- time high, nearing 200,000 — an increase over the previous year of more than 10 percent. This growth indicates both the vitality of CBF’s message and the growing consensus that the Bay and its rivers and streams need every citizen’s support. Backed by our members, CBF pledges to continue the ongoing fight to protect and restore our national treasure, the Chesapeake Bay. APRIL TODD NORTHRUP GRUMMAN TEACHER OF THE YEAR Each year, CBF hosts a special Bay trip for teachers from around Maryland who have been nomi- nated as the Teacher of the Year in their county and Baltimore City. This October, April Todd, a lan- guage arts teacher at Somerset Intermediate School in Somerset County, was selected as Teacher of the Year out of 24 candidates. She and 15 of herfellow nominees traveled to CBFs Smith Island education center for a three-day retreat. This trip was sponsored by Northrop Grumman through its commitment to support CBF’s Maryland Environmental Education Programs. 2007 ANNUAL REPORT AR7 AR8 CHESAPEAKE BAY FOUNDATION - CBF.ORG NEW MOMENTUM Sometimes being pushed to the wall gives you the momentum necessary to get over it. Peter de Jager Thousands of bushels of oyster shell must be bagged each year to supply CBF’s oyster propagation projects. Students stand atop a mound at CBF’s Oyster Recovery Center in Shady Side, Maryland. National and local breakthroughs in 2007 reflected CBF’s insistence on immediate, bold action by elected officials. In addition to ground-breaking legislation at federal and state levels to fund pollution reduction measures by farmers, CBF made further strides in a number of key initiatives. BLACKWATER Tens of thousands of activists and supporters joined forces with CBF in 2007 to oppose dangerous precedents in new development. Our campaigns combined a variety of tools: grassroots organization, online alerts and petitions, aggres- sive media efforts, and legal action. In a victory for CBF and its partners, a final settlement by the state of Maryland halt- ed a sprawling mega-project that threatened Blackwater National Wildlife Refuge. Under the revised plan, the state purchased more than 700 acres of the property for Program Open Space and allowed less than 10 percent of the origi- nal development. In a separate case, permits for a large waterfront project on Maryland’s Eastern Shore were denied after CBF President William C. Baker and Maryland Executive Director Kim Coble met with Governor O’Malley. RESTORATION The year also brought progress in key restoration proj- ects. Ongoing efforts to bring back the Bay’s dwindling oyster population got a boost from new, CBF-initiated legislation in Maryland, where the General Assembly mandated safeguards for existing oyster reefs and funded programs to restore the native oyster. Meanwhile, large-scale oyster propagation efforts at CBF facilities in Maryland and Virginia showed encouraging success, and millions of juvenile oysters were planted. CBF’s many-faceted oyster program sup- ports the recovery of one of the Chesapeake’s most valuable natural filters, which will improve water quality throughout the Bay. 2007 ANNUAL REPORT AR9 CBF litigation contesting discharge per- mits granted to corporate giant Phillip Morris resulted in a victory for regional environmental organizations. In Washington, D.C., the House of Repre- sentatives passed a 2007 Farm Bill that would provide $500 million over five years for Bay conservation measures. Governor Edward Rendell and the Pennsylvania legislature approved a $10 million tax credit program to support conservation measures by farmers. With a generous multi-year grant awarded by the Richard King Mellon Foundation in 2006, CBF lever- aged additional resources for habitat restoration in Pennsylvania. Working with our partners in the Commonwealth, CBF completed more than 350 restoration projects, planting some 300,000 trees and shrubs. The results were 191 miles of new forested buffers, including 600 acres of wetland restoration and enhancement. Buffers are tremendously cost-effective pollution filters; new research shows that streams with these natural filters can remove two to eight times as much nitrogen as streams without buffers. PHILIP MORRIS In a landmark ruling, the Supreme Court of Virginia unan- imously recognized CBF’s right to challenge pollution per- mits issued by the Commonwealth (in this case, to indus- trial giant Philip Morris). The high court’s decision in May means that, for the first time, conservation groups can chal- lenge the state’s environmental decisions on behalf of their members — a right previously denied. LITIGATION CBF’s newly expanded litigation department continued to press for enforcement of existing environmental reg- ulations. Staff attorneys used litigation more ambi- tiously than at any time in CBF history, arguing 17 cases in Virginia, Maryland, and the District of Columbia, and filing friend-of-the-court briefs in relat- ed environmental suits. The program enlarges CBF’s ability to use every tool at its disposal to demand enforcement of existing environmental laws. It has been made possible with dedicated funding from foun- dations and individuals like Louis F. and Pru Ryan of Norfolk, who have supported CBF for two decades. “I feel strongly that collaboration and cooperation are superior tools for restoring the Chesapeake,” explains Mr. Ryan. “However, sometimes, as a last resort, it is THE FACES OF CBF JON MUELLER CBF LITIGATION DIRECTOR Since joining CBF in 2004, Litigation Director Jon Mueller has led strategic and focused legal action to protect the Bay and its rivers and streams. He now heads a team of three who pur- sue cases throughout the Bay region with the goal of enforcing environmental law. In a land- mark victory this spring, Jon successfully argued before the Virginia Supreme Court that CBF had the right to challenge pollution permits issued by the Commonwealth. The ruling confirmed the right of groups like CBF to oppose, on behalf of their members, state permits that threat- en the quality of our water. Jon previously served for 17 years as an attorney with the U.S. Department of Justice Environmental Enforcement Section. AR10 CHESAPEAKE BAY FOUNDATION - CBF.ORG necessary to resort to the courts. My wife and I are sup- porting the CBF litigation program because after other alternatives have been exhausted, CBF needs to have the capacity to litigate aggressively and effectively to restore the Bay” PROTECTION The Atlantic States Marine Fisheries Commission approved a long-awaited final agreement capping the annual commercial harvest of menhaden, called “the most important fish in the sea.” CBF Senior Scientist Bill Goldsborough played a vital role in the campaign to save these filter feeders, which are an essential part of the Bay ecosystem. LIVABLE BUILDING AWARD In Annapolis, the Philip Merrill Environmental Education Center, CBF’s widely acclaimed “green” headquarters, won the Center for Built Environment’s Livable Building Award. Selected for the honor from more than 300 entries — mostly buildings newer than the Merrill Center — CBF was cited for exemplifying technologies that make buildings more environmen- tally friendly, more productive to work in, and more economical to operate. The award reflects CBF’s com- mitment to embody green principles throughout the organization. No Child Left www.eenclb.org Inside"] NO CHILD LEFT INSIDE Finally, a campaign on Capitol Hill — one that has far- ranging implications for future environmental stew- ardship in the country — underscored CBF’s ability to rally a national constituency. Working with many part- ners, and with support from CBF Trustee H.F. “Gerry” Lenfest and his wife, Marguerite, CBF’s education staff led a coalition of more than 125 organizations to lobby for reform of the No Child Left Behind Act (NCLB). The coalition proposed new legislation, sponsored in the House by Rep. John P. Sarbanes (D-MD) and in the Senate by Sen. Jack Reed (D-RI), to strengthen envi- ronmental education opportunities for America’s stu- dents. These changes were incorporated into the larger NCLB bill and have earned bipartisan support. A vote is pending. More than 40,000 students across the watershed joined CBF field experiences to “learn outside.” CBF is leading a nationwide effort to strengthen environmental education requirements. DON BAUGH CBF VICE PRESIDENT AND HENRY L AND GRACE DOHERTY CHAIR FOR ENVIRONMENTAL EDUCATION CBF Vice President Don Baugh has directed the Education Program at CBF for more than 30 years. During his tenure, 800,000 students and teachers have connected with their water- ways during outdoor field experiences. He has made “hands-on, minds-on” learning the hall- mark of CBF’s program-the largest of its kind in the nation. During 2007, Don led the nation- al effort to strengthen environmental education for schoolchildren through changes in the No Child Left Behind Act. He and his partners assembled a coalition of more than 125 groups to press for new requirements in the re-authorization of the Act, now before Congress. 2007 ANNUAL REPORT AR11 NEW INVESTMENT One generation plants the trees; another gets the shade. Chinese Proverb The planting of trees and shrubs in forested buffers, as well as other agricultural “best management practices” to reduce pollution, got a boost from funding at both state and national levels. In 2007, state and federal leaders responded to the call for Bay-saving funding with outstanding initiatives. Our legislative successes reflect the tireless efforts of CBF’s staff, board of trustees, members, and volunteers, all of whom worked together to achieve increased outreach and momentum. FEDERAL FARM BILL In July, the U.S. House of Representatives voted to include an additional $100 million in conservation funding annual- ly for five years in the re-authorized Farm Bill — an action that affirmed the federal government’s essential role in sav- ing the nation’s largest estuary. CBF fought hard for this vic- tory, with the leadership of Rep. Chris Van Hollen (D-MD) and other Bay congressional members and the support of the New York Community Trust. With matching state con- tributions, the funding could reduce millions of pounds of nitrogen pollution in the watershed. An alternate version of the bill, championed in the Senate by Sen. Bob Casey (D- PA) and Sen. Ben Cardin (D-MD), allocates $165 million in new funding. The Senate vote is pending. This assistance will help farmers re-establish natural filters, plant forested and grassy streamside buffers to remove con- taminants from runoff, and sow winter cover crops — all proven, cost-effective practices that will clean our waters and remove carbon dioxide from the air. PENNSYLVANIA’S REAP In Pennsylvania, Governor Edward Rendell signed the landmark Resource Enhancement and Protection Act (REAP), one of the most innovative conservation laws in state history. REAP helps farmers who plan and implement proven water-quality measures by providing $10 million in transferable state tax credits. The legislation will result in annual, compounding reductions in pollution to Pennsylvania rivers, streams, and the Chesapeake Bay; healthier aquatic habitats for trout and other extremely 2007 ANNUAL REPORT *— J Bay-area farmers joined CBF in a coalition that demonstrated the political muscle of an agricultural-environmental partnership. valuable Pennsylvania fisheries; economically sustainable agriculture-based communities; and improved water quali- ty throughout the Commonwealth. Because this bill has no end date, investments in clean water can continue to build. The REAP victory came after a year-long campaign led by CBF and a coalition of 68 groups, including environmental, agricultural, and business interests. Town hall meetings, paid newspaper advertising, telephone calls, and a massive postcard campaign generated state-wide support for the ini- tiative. Activists across the state hailed REAP’s passage as an indicator of Pennsylvania’s growing commitment to im- proving water quality. Conservation measures supported by REAP will keep hundreds of thousands of pounds of pollu- tion from contaminating Pennsylvania’s waterways. MARYLAND’S CHESAPEAKE BAY 2010 TRUST FUND In a victory long sought by CBF and clean water activists, the Maryland General Assembly voted to create a fund that will deliver $50 million annually to reduce pollution and restore the Bay and Maryland rivers. The Chesapeake Bay 2010 Trust Fund, formerly known as the “Green Fund,” was proposed by CBF and supported by a broad alliance of interest groups. The bill survived a highly con- tested budget debate and ultimately passed both houses during a special session in November. A statewide coalition of partners — including leaders from environmental, agricultural, health, and home-building sectors — backed the legislation, which will underwrite improvements in agricultural, stormwater, and buffer proj- ects to protect water quality. In 2007, Maryland began to see tangible returns from its 2004 Bay Restoration Fund, or “flush tax.” Six state-of-the- art wastewater treatment plants went online (at Celanese, Hurlock, Aberdeen Proving Ground, Easton, Swan Point, and Kent Island) and an additional eight began construc- tion. By implementing much higher standards for nitrogen removal, full upgrades at facilities throughout the state will eventually eliminate seven million pounds of pollution now degrading the Bay and its rivers and streams. VIRGINIA’S BAY BONDS In April, in an eleventh-hour victory spearheaded by CBF staff and trustees, Virginia built on last year’s historic clean- water funding with an additional $250 million in new bonds for wastewater treatment plant improvements. The Bay Bonds legislation will supplement past and future appropriations to Virginia’s Water Quality Improvement Fund to reduce excess nitrogen pollution, the most seri- ous problem plaguing Virginia rivers and the Bay. With a total of $550 million now budgeted for essential upgrades, the action “finishes the job” on addressing pollu- tion from Virginia sewage plants. The appropriation will enable Virginia to meet its established goal for pollution reduction from sewage treatment plants — nearly one-third, or nine million pounds, of the Commonwealth’s total goal. CBF and partners have now achieved $2 billion in funding in the Bay states — allocations which will take us one-third of the way to the goals outlined in the Tributary Strategies, the “roadmap” to Bay restoration. Our challenge for the future is to secure the dollars needed for the final two-thirds. THE FACES OF CBF ANN JENNINGS CBF VIRGINIA EXECUTIVE DIRECTOR Ann Jennings oversees our environmental and legislative advocacy, resource protection, land conservation, and grassroots programs in the Commonwealth. This year, she coordinated CBF’s successful efforts to gain passage of Virginia’s $250 million Bay Bonds legislation during the 2007 General Assembly session. CBF’s top priority during the session, the bond measure was originally proposed by GovernorTim Kaine and, after many stops and starts during the legisla- tive process, ultimately passed both Assembly houses by unanimous votes. Ann shares cred- it for the victory with the Virginia office staff, CBF’s Virginia trustees, and CBF members and friends, who sent hundreds of emails and phone calls to legislators in support of the bonds. ARM CHESAPEAKE BAY FOUNDATION - CBF.ORG FINANCIAL OVERVIEW FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDING ON JUNE 30, 2007 CBF’s management practices ensure that operating funds raised in the current year as well as the capital campaign funds pledged in previous years are effectively put to use to support programs to save the Bay. SUPPORT AND REVENUE 2007 # Membership Contributions 22% Grants and Gifts 60% Education Contracts and Tuition 5% Investment Income 10% O Other 3% Membership contributions 4,766,693 Grants and gifts 12,823,073 Education contracts & tuition 1,147,662 Investment income 2,178,749 Other 593,421 Funds raised in prior years to support FY07 expenses 685,371 Total Support and Revenue $22,194,969 EXPENSES 2007 Program Services 80% General & Administrative 7% Fundraising 13% PROGRAM SERVICES Environmental Education Environmental Protection & Restoration Communications 5,494,565 9,059,829 3,232,732 Total program services 17,787,126 SUPPORT SERVICES General & Administrative 1,617,180 Fundraising 2,790,663 Total support services 4,407,843 Total Expenses $22,194,969 A copy of the audited financial statement & IRS 990 tax return are available through our state offices or the headquarters office in Annapolis, Maryland. (See back cover for addresses.) 2007 ANNUAL REPORT AR15 LEADERSHIP OFFICERS D. Keith Campbell, Chairman James E. Rogers, Vice Chairman Susan S. Phillips, Secretary Arnold I. Richman, Treasurer William C. Baker, President TRUSTEES Myrtha L. Allen Donald F. Boesch, Ph.D. John T. Casteen, III Atwood Collins, III Richard L. Franyo G. Waddy Garrett Alan R. Griffith Carolyn Groobey Michael J. Hanley Virginia R. Holton Jennifer B. Horton Randal B. Kell H. F. Lenfest Harry! Lester H. Turney McKnight Wayne A. Mills W.Tayloe Murphy, Jr. Donald H. Patterson, Jr. Marie W. Ridder Alexis G. Sant Truman T. Semans Simon Sidamon-Eristoff Jennifer Stanley Thomas H. Stoner Michael Watson John R. Whitmore Anthony A. Williams HONORARY TRUSTEES Louisa C. Duemling C. A. Porter Hopkins Burks B. Lapham T. Gaylon Layfield, III M. Lee Marston Charles McC. Mathias Godfrey A. Rockefeller Russell C. Scott Edmund A. Stanley, Jr. Aileen Bowdoin Train William W. Warner EX-OFFICIO TRUSTEES Governor Martin O’Malley Annapolis, Maryland Governor Edward G. Rendell Harrisburg, Pennsylvania Governor Timothy M. Kaine Richmond, Virginia Mayor Adrian M. Fenty Washington, D.C. Joanne S. Berkley, Bay Care Chapter Norfolk, Virginia Hal C. B. Clagett, Clagett Trustee Upper Marlboro, Maryland Peter Gnoffo,York Chapter White Marsh, Virginia SENIOR STAFF William C. Baker President Edward! Allenby Vice President for Development Don R. Baugh Vice President of Education, Doherty Chair for Environmental Education Elizabeth !. Buckman Vice President of Communications Charles D. Foster, Jr. Chief of Staff Roy A. Hoagland Vice President of Environmental Protection & Restoration Fay R. Nance Vice President of Finance Mary !od Winchester Vice President of Administration Kim L. Coble Executive Director, Maryland Matthew J. Ehrhart Executive Director, Pennsylvania Ann F. Jennings Executive Director, Virginia Debbie L. Boyd Director of Human Resources Jon A. Mueller Litigation Director Cj Chesapeake bay FOUNDATION Saving a National Treasure Maryland Philip Merrill Environmental Center 6 Herndon Avenue Annapolis, MD 21403 410/268-8816 410/269-0481 (from Baltimore metro) 301/261-2350 (from D.C. metro) Pennsylvania The Old Waterworks Building 614 North Front Street, Suite G Harrisburg, PA 17101 717/234-5550 Virginia Capitol Place 1108 East Main Street, Suite 1600 Richmond, VA 23219 804/780-1392 Web site: cbf.org E-mail: chesapeake@cbf.org Membership information: 888/SAVEBAY Chesapeake Bay Watershed ABOUT THE COVER: CBF efforts in education, restoration, and advocacy touched communities throughout the Bay watershed in 2007. Images left to right: CBF Staff, Beth LeFebvre/CBF Staff, Loren Barnett Appel/CBF Staff, Bill Portlock/CBF Staff, Getty Images, Karl Willey/CBF Staff, Marcy Damon/CBF Staff, Margaret !ossey, Jeff Vanuga, National Resources Conservation Service Photo insets on interior pages: Ian J. Plant PHOTO CREDITS: page AR2: top: Kelly McMahon Willette; bottom: Dave Hartcorn page AR3: Loren Barnett Appel/CBF Staff page AR4: Getty Images pa geAR5: Bill Portlock/CBF Staff P ageAR6: top: Beth LeFebvre/CBF Staff; bottom: Jennifer Wallace/CBF Staff page AR7: left to right: CBF Staff, Marcy Damon/CBF Staff; bottom: Jeff Rogee/CBF Staff page AR8: Ian J. Plant P ageAR9: Karl Willey/CBF Staff page AR10: left to right: Bill Portlock/CBF Staff, Getty Images, Commonwealth Media Services; bottom: Dave Hartcorn page AR11: CBF Staff; bottom: Dave Harp page AR12: Ian J. Plant (Pinnacle Overlook, Susquehanna River) page AR13: CBF Staff page ARM: Bob Nichols, National Resources Conservation Service; bottom: CBF Staff The Chesapeake Bay’s 64,000-square-mile watershed covers parts of six states and is home to more than 17 million people.