Z. Smith Reynolds Foundation: Funding Flows to the Left
Such a broad mission gives the Foundation wide latitude to fund almost anything, but ZSRF lists five major areas to which it gives particular focus, including community economic development, the environment, democracy & civic engagement, pre-collegiate education, and social justice. Grants are restricted to North Carolina programs, with much of its funding seeking to advance a liberal agenda. The organization is ranked as North Carolina's 11th largest grantmaker in NC Gives most recent compilation.
History
The Z. Smith Reynolds Foundation began in 1936 when heirs of Reynolds Tobacco decided to honor their brother Zachary, the son of R.J. Reynolds, founder of the company that still carries his name today. The original objective of the foundation was simply to support charitable activities in North Carolina.
Background
The Z. Smith Reynolds Foundation was established after R.J. Reynolds son, Zachary, was murdered at the age of 22, allegedly by his new bride, the Broadway torch singer Libby Holman, during a weekend party at Reynolda House in
Of the 14 current members of the Board of Trustees, nine contributed exclusively to Democrats on the federal level from 2003-2006, with donations to candidates in excess of $356,000. Members include Thomas Ross, Nancy Bagley, Smith Bagley, Anita Brown-Graham, Sen. Dan Clodfelter, Katharine Mountcastle, Mary Mountcastle, John McNairy, David Neal, former Congressman Stephen Neal, former Hunt cabinet secretary Jane Patterson, Virgil Smith, and Dr. Lloyd Tate.
In January 2008, the Foundation hired former three-term Democratic Senator Leslie Winner (NC State Senate 1993-98) to serve as its executive director. Winner came to Z. Smith Reynolds after serving as general counsel to the UNC system since 2000, where her duties included advising the UNC Board of Governors. She previously represented the Charlotte-Mecklenburg Board of Education.
Prior to hiring Winner, the Foundation was headed up from 2001 to 2007 by Thomas Ross, former chief of staff for Democratic Congressman Robin Britt. Thomas Lambeth, who served as executive director from 1978-2001, was once an administrative assistant to Democratic Governor Terry Sanford. Other prominent Democrats include current State Senator Daniel Clodfelter (D-Mecklenburg), who serves on the Board of Trustees, and Rep. Rick Glazier (D-Cumberland), who serves on the advisory panel.
Most of the trustees receive compensation, including, oddly, Zachary Smith, who receives $5,000 annually, even though he died over 55 years ago. According to ZSRF's latest IRS 990 filing, Zachary reportedly serves one hour per month as a trustee.
Funding Progressive Advocacy Groups
Left-leaning public policy advocacy organizations operating in North Carolina have a friend in the Z. Smith Reynolds Foundation (ZSRF). From advocacy for illegal immigrant rights, to eliminating the death penalty, to pro-choice efforts, the Z. Smith Reynolds Foundation funds them all.
The Z. Smith Reynolds Foundation has contributed over $47.2 million in the last three years alone on numerous left-leaning public policy groups and community related causes. Its traditional top beneficiary is
- Death Penalty & Gun Laws
A number of grants are aimed ending the death penalty and for advocacy for criminal rights and stronger gun laws. Grantees include the Center for Death Penalty Litigation, the Fair Trial Initiative (founded by ZSR Board member David Neal), People of Faith Against the Death Penalty, North Carolinians Against Gun Violence (lobbies against the current law allowing the use of deadly force to defend one's home), and Families Against Mandatory Minimums (opposes NC's Habitual Felons law and mandatory prison time for criminals).
- Hispanic Causes
Over the past few years, a growing number of ZSRF's grants are being directed to groups that work with and advocate for Hispanic causes, including some who advocate for amnesty and rights for illegal immigrants. Roughly a dozen grants were awarded expressly for Latino or immigrant outreach and empowerment including El Pueblo, Inc., which advocates for the rights of illegal immigrants.
- Legal Efforts
The Z. Smith Reynolds Foundation provides funding for the ACLU to train attorneys to provide Muslims with legal representation (the ACLU specifically opposes the FBI's efforts to question Muslim community members about terrorist activities, warning that questions don't have to be answered). It also contributes to the North Carolina Institute for Constitutional Law (NCICL), which engages in litigation to uphold the rights of citizens under the state constitution.
- Environmental Advocacy
Beginning in 1998, the Z. Smith Reynolds Foundation formed a coalition with other environmental groups to attack high technology farming, or "factory farms" (Environmental Grantmakers Association, Winter 2003). The group rejects research which concludes that modern, large scale livestock production facilities put more food on the table using one-third of the land with 40-percent lower emissions than old style free-range production (Center for Global Food Issues, 11/26/07).
In 2007, the Z. Smith Reynolds Foundation turned much of its focus toward global warming. According to the Wall Street Journal, ZSRF is a chief backer of the Center for Climate Strategies, which is taking a leading role in advising North Carolina policymakers on renewable energy policy (WSJ, 9/30/07). The Center helped craft a plan this year which will cost consumers $310 million (the John Locke Foundation, 7/9/07).
- Other Public Policy Advocacy
The Z. Smith Reynolds Foundation provides financial backing for a wide range of liberal activist organizations that are involved in policy making and grassroots advocacy. Its largest monetary grant goes to the
Potential Conflicts
Board member David Neal's law firm received $58,000 for services provided to the Foundation.
Board member Sen. Dan Clodfelter has introduced and helped pass numerous pieces of legislation supported by the groups funded by the Z. Smith Reynolds Foundation.
Foundation Assets
The Z. Smith Reynolds Foundation is a private, 501 C-3 charitable organization. According to the foundation's most recent available IRS statement (for the fiscal year 2005-06), ZSRF has $19.5 million in assets, mostly in cash, and income comes from two trusts, the W. N. Reynolds Trust of Winston-Salem and the Z. Smith Reynolds Trust of Baltimore.
Foundation Staff
The Z. Smith Reynolds Foundation currently employs a staff of sixteen, including its executive director, Leslie Winner.
Grant Cycles
The Z. Smith Reynolds Foundation operates two grant cycles per year, with its Board of Trustees meeting in last May and in late November to consider grant applications. The Foundation does not accept proposals by mail, facsimile, or email, so grant-seekers must visit their website to apply through their proprietary online system.
Summary
The Z. Smith Reynolds Foundation states that its primary goal is to serve organizations within the state of North Carolina. It serves as a major financial backer of many progressive public policy and advocacy organizations in the state, and it may be the sole source of funds for some smaller organizations.
Sampling of Grant Activity per 2006 Reporting:
| $65,000 | ACLU |
| $55,000 | Center for Death Penalty Litigation |
| $125,000 | Common Cause |
| $150,000 | Conservation Trust for NC |
| $350,000 | Democracy NC |
| $87,500 | El Pueblo, Inc. |
| $25,000 | Equality NC |
| $60,000 | Fair Trial Initiative (founded by Board member David Neal) |
| $50,000 | Families Against Mandatory Minimums |
| $200,000 | |
| $275,000 | Legal Aid of NC |
| $100,000 | NARAL Pro-Choice NC |
| $400,000 | Nature Conservancy |
| $250,000 | NC Center for Non-Profit Organizations |
| $300,000 | NC Center for Voter Education |
| $900,000 | NC Community Development Initiative |
| $425,000 | NC Environmental Defense |
| $2,000,000 | |
| $15,000 | North Carolinians Against Gun Violence |
| $25,000 | North Carolina Institute for Constitutional Law |
| $50,000 | People of Faith Against the Death Penalty |
| $100,000 | Planned Parenthood |
| $250,000 | Public School Forum |
| $550,000 | Southern |
| $100,000 | Sustainable NC |
| $1,783,990 |
ZSRF grants per 2005-06 IRS Form 990: 214 grants totaling $16,605,740
Contact Information
Barbara Mabe
Administrative Assistant/Bookkeeper
Z. Smith Reynolds Foundation
147 S Cherry St. Ste 200
Telephone: (336) 725-7541
Website: http://zsr.org/
