News Releases

Friday, August 10, 2007

PROBATE COURT APPROVES NEW PARKER RANCH FOUNDATION TRUST GOVERNANCE STRUCTURE

CHANGE SUPPORTS RICHARD SMART’S LONG TERM VISION FOR WAIMEA COMMUNITY

The Hawai’i Probate Court approved a change in the governance structure of the Parker Ranch Foundation Trust yesterday. In June of this year, the Trustees and the Beneficiaries of the Parker Ranch Foundation Trust petitioned the court to change the Trust structure in order to best continue Richard Smart’s charitable support for the Kamuela community.

The Trustees, with the full support of the Trust’s four Beneficiaries – North Hawai‘i Community Hospital, Parker School Trust Corporation, Hawai‘i Preparatory Academy and the Richard Smart Fund of the Hawai‘i Community Foundation – sought approval to reform the Trust’s governance structure in order to qualify for a new federal tax status, known as a Type I supporting organization. Under the newly approved revised structure, Beneficiaries will appoint Trustees, giving them more input and control in Trust matters. In addition, there will be more flexibility for the Trust’s annual distributions, better ensuring continuation of meaningful distributions to the four beneficiary groups.

Conversion to Type I supporting organization status – from the Trust’s current Type III status – was requested in response to recently-enacted federal legislation containing tax law changes related to charitable reform. Because the legislation subjects Type III supporting organizations, but not Type I’s, to additional operating restrictions and requirements, conversion enables the Trustees to move forward with careful and planned asset management to optimize ongoing support to the Beneficiaries over the long term, which was Richard Smart’s primary purpose in creating the Parker Ranch Foundation Trust.

In order to effect the conversion to Type I status, the beneficiary organizations must appoint the Trustees of the Trust, and the current trustees will resign upon selection of between 3 and 5 successor trustees by the Beneficiaries. Current Trustees may be considered for reappointment. An advertisement is expected to run in local newspapers between August 19 and August 26, which will invite qualified individuals to submit letters of interest along with their qualifications to a beneficiary-appointed selection committee.

The Beneficiaries are pleased that the Court has approved the requested Trust amendments,” said Pat Bergin, Chair of the Beneficiary Committee. “We recognize that we would not be at this point without the strong support of the current Trustees and we are grateful to the Trustees – and to the Beneficiary representatives that have been involved in this process – for all of their work to ensure that Richard Smart’s remarkable gift continues to enrich our community for many years to come.”

“Among the most significant achievements over the last year was the tremendous progress made with the beneficiaries on the Ranch’s long-term strategic planning process, including the Distribution Committee’s unanimous endorsement to adopt long-term guiding principles for the Ranch under the umbrella of our Next Century Plan. Yesterday’s approval to convert to a Type I supporting organization will strengthen plans for the future direction of the Ranch, to lead and resolve many of the community’s issues, and to explore diversification alternatives for the lands in a sustainable manner, which is respectful of the rich culture and history of the Kamuela area. It is our hope these efforts will serve to better preserve the character of the community,” stated Trustee Warren Haruki. “The Trustees will work closely with the Beneficiaries during this transition period to ensure continuation of our mutual goal, namely fulfilling the vision of Richard Smart.”

The Parker Ranch Foundation Trust was created in 1992 by Richard Smart, a sixth generation descendant of John Palmer Parker, founder of Parker Ranch. The Trust was formed exclusively for health care, education, and charitable purposes within the Kamuela community. Cumulative distributions to the four designated beneficiary organizations have totaled more than $13 million in cash and land since distributions began in 1998. Current Trustees are Warren H. Haruki, Timothy E. Johns and John B. Ray.

The Trust is the sole shareholder of Parker Ranch Inc., one of the largest and most historic ranches in the United States, spanning approximately 150,000 acres across Hawai‘i’s Big Island. Founded in 1847, Parker Ranch surrounds the town of Kamuela and spreads between the Kohala and Mauna Kea mountains. Chris J. Kanazawa serves as Parker Ranch Inc. President & CEO.

North Hawai‘i Community Hospital (NHCH) is a full service acute care hospital centrally located in Kamuela. Governed by a local board of directors, this community owned non-profit hospital opened in May 1996 and primarily serves the 30,000 residents and visitors of the northern region of the Big Island. NHCH offers a full spectrum of acute care hospital services with a commitment to patient-centered care that treats the patient as a whole person—mind, body and spirit—in the context of family, culture and community. Designed as a “healing instrument,” NHCH is fast becoming a prototype for the careful integration of select complementary healing practices with high quality medical care.

Parker School Trust Corporation (PSTC) provides funding and support to Parker School, a small, independent, co-educational day school for students in grades K-12. For over 30 years, Parker School has provided students with a college-preparatory program with emphasis on personal and educational excellence. PSTC also operates Waimea Community Education, established in 1984 to provide educational programs that enhance the living experience of people of all ages in the Kamuela Community. Courses offered by Waimea Community Education are as diverse and interesting as the Kamuela community, ranging from professional development courses to classes for sheer fun and personal enrichment, including courses that celebrate the Hawaiian culture through language, arts and hula.

Hawai‘i Preparatory Academy (HPA) is one of the Pacific region’s leading boarding and day college-preparatory schools, featuring a remarkably low 10:1 student-to-teacher ratio and courses and activities that make use of Hawai‘i’s unique geographical and social setting. Founded in 1949, HPA is an independent coeducational school providing a full range of opportunities for students from kindergarten through grade 12. The school has two campuses in the town of Kamuela: the Lower and Middle Schools are located on six acres in the heart of Hawai‘i’s ranching country, while the Upper School is located just two miles away at the foot of the Kohala Mountains.

The Hawai‘i Community Foundation (HCF) helps people make a difference by inspiring the spirit of giving and by investing in people and solutions to benefit every island community. HCF provides support and services to donors, volunteers, other nonprofit agencies, grantseekers and the community. The Richard Smart Fund was established by Richard Smart at HCF to support health care, educational and charitable purposes that improve the general welfare and quality of life for the people of Kamuela. The fund is currently being used to provide grants to Kamuela organizations for increasing community and organizational capacity, including a special initiative supporting Waimea Elementary School’s restructuring and change in leadership efforts.

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