Golden LEAF Foundation

Frequently Asked Questions | A Comparison of the Foundations and Trust Funds Created as a Result of the 1998 Tobacco Settlement

A Comparison of the Foundations and Trust Funds
Created as a Result of the 1998 Tobacco Settlement

	Phase I Foundation and Trust Funds			Phase II North Carolina Tobacco Settlement
	Golden LEAF Foundation	Tobacco Trust Fund	Health & Wellness Trust Fund	Phase II North Carolina Tobacco Settlement
Funding Levels	$2.3 billion over 25 years Annual average of $82 million $8-$10 million available for 2001 funding cycle	$1.15 billion over 25 years Annual average of $41 million Funding availability to be determined	$1.15 billion over 25 years Annual average of $41 million Funding availability to be determined	$1.975 billion over 12 years Annual average of $165 million $140 million distributed in 1999-2000 $107 million available for end of year 2000
Board or Commission	15 members appointed by the Governor, President Pro Tempore and Speaker of the House with representatives from: tobacco production tobacco manufacturing tobacco-related employment health interests economic development	18 members appointed by the Governor, President Pro Tempore and Speaker of the House 8 farmers/allotment holders 1 person in or displaced from tobacco-related employment 9 at-large appointees	18 members appointed by the Governor, President Pro Tempore and Speaker of the House 9 in health care 9 at-large appointees	14 members including: Governor Commissioner of Agriculture Attorney general Member of congress and General Assembly 6 farmers 1 at-large appointee
Endowment rules	The Foundation intends to create an endowment. The Foundation may choose from time to time to make funds available from the principal as well as earnings on the endowment. Only earnings will be used for grantsmaking in 2001.	The creating act, HB1431, does not discuss endowing the fund.	Annual payments through 2000 are non-reserved (can be disbursed.) 50% of the annual payments for 2001-2025 are reserved (endowed) 50% of the annual payments for 2001-2025 are non-reserved Investment earnings are non-reserved through 2025	Not an endowment. Phase II is a private agreement between cigarette companies and tobacco farmers, allotment holders and political leadership of the tobacco growing states.
Purpose and Objectives	The foundation is a public charitable corporation with two basic objectives: To promote the social welfare of North Carolina's citizens. To receive and distribute funds to be used for economic impact assistance.	The fund is an independent entity administratively located within the Department of Agriculture to: Indemnify (compensate) individuals and companies for the adverse economic impacts of the settlement on tobacco growers, quota holders, and persons engaged in tobacco-related businesses Fund qualified agricultural programs that support, foster, encourage, and facilitate a strong agricultural economy	The fund is an independent entity administratively located within the Office of the Treasurer to: Address the health needs of vulnerable and underserved populations in North Carolina. Fund programs and initiatives (research, education, prevention, treatment) and increase the health response capacity of communities. Develop a comprehensive, community- based plan to improve health and wellness.	The Phase II fund is a private non-profit organization established to distribute funds to compensate tobacco growers and quota holders for losses of income and equity caused by a reduction in the national tobacco marketing quota.
Program areas	Education Assistance Job Training and Employment Assistance Scientific Research Economic Hardship Assistance Public Works and Industrial Recruitment Health and Human Services Community Assistance	The act foresees direct compensation to individuals and companies affected by the settlement and funding of agricultural research to universities, governmental agencies and private sector entities.	Not established as of August 4, 2000. The act foresees funding of health initiatives and the development and measurement of a series of health objectives with a proposed timetable for achievement of these objectives.	Phase II provides direct payments to tobacco farmers and allotment holders for losses as determined by a board of trustees.
Eligibility rules	North Carolina-based established tax-exempt organizations and governmental units are eligible. Deadline to receive proposals for funding this year is August 1, 2001	For indemnification: those adversely affected by the settlement For agricultural programs: governmental agencies and private sector entities	North Carolina-based established tax-exempt organizations and North Carolina governmental units are eligible.	Must be certified as a flue-cured or burley tobacco grower or a holder of flue-cured or burley quota
Organizational Stage of Development	Foundation in operation. Board meetings are scheduled for first Thursday and Friday in January, March-June and September-December, 2001. First grants were approved in December 2000. Valeria L. Lee is the CEO of the foundation.	The board has been appointed and initial awards have been made.	The board has been appointed as of March 31, 2001.	Administered by The North Carolina Phase II Tobacco Certification Entity, Inc.
Contact information	Valeria Lee, President Golden LEAF Foundation Suite 200, 800 Tiffany Plaza Rocky Mount NC 27804 252-442-7474 voice 252-442-7404 fax 888 684-8404 toll free web site: www.goldenleaf.org email: info@goldenleaf.org	William Upchurch NC Department of AgricultureRaleigh, NC		John Ray Davis, Executive Director P.O Box 808 Winston-Salem, NC 27012-0808 919-838-4100 or 888-566-9599 (toll free) web site: www.phase2.wcsr.com/

Sources: Senate Bill 6 of the 1999-2000 General Assembly session, House Bill 1431 of the 1999-2000 General Assembly session; Articles of Incorporation of the Golden Leaf Foundation, October 22, 1999; Golden LEAF Foundation web site, http://www.goldenleaf.org; and Phase II Tobacco Settlement Administration web site, http://www.phase2.wcsr.com/.

Golden LEAF Foundation
301 N. Winstead Avenue, Rocky Mount, NC 27804
252-442-7474 phone 252-442-7404 fax 888-684-8404 toll free
www.goldenleaf.org email: info@goldenleaf.org