Discovery Charter School Foundation Inc.

## Approach Strategy

The Discovery Charter School Foundation Inc. is not a traditional grantmaking foundation. It is a fundraising and fund distribution entity (IRS classification: Educational Institutions and Related Activities / Fund Raising and/or Fund Distribution) that exists to support Discovery Charter School, a STEAM-focused charter school located in Bahama, NC (Durham County).

Discovery Charter School opened in August 2019 on a 60-acre campus in northern Durham County. The school serves students in grades 6 through 11, expanding one grade level per year until it becomes a full 6-12 school. The school's mission is to prepare students to be self-motivated, lifelong learners through a challenging STEAM-focused curriculum.

The foundation's $13.7M in total assets is largely offset by $13.4M in liabilities, resulting in net assets of only $307,575 as of 2024. This liability structure suggests the assets represent school facilities or construction debt rather than an investable endowment. Organizations should not approach this foundation seeking external grants — it channels all resources to its affiliated charter school.

## Funding Patterns

The Discovery Charter School Foundation operates exclusively as a supporting organization for Discovery Charter School. It does not make external grants to other organizations.

The foundation's revenue comes primarily from contributions and school-related income. Its expenses of $1.2M exceed revenue, resulting in an operating deficit offset by improvements in net asset position (up from -$1,067,730 in 2022 to $307,575 in 2024).

The school itself has received notable external grants: - $800,000 Charter School Growth Fund grant - NC GreenPower Solar+ Schools grant - $2.4 million EPA grant for electric buses

These grants flow to the school or school group entity (EIN 47-5370695), not through the foundation.

## Peer Comparison

The Discovery Charter School Foundation is unusual among North Carolina foundations with similar asset levels because it is a school-supporting entity rather than a grantmaker. Its $13.4M in liabilities (against $13.7M in assets) sharply distinguishes it from traditional foundations.

The key difference is that traditional foundations hold their assets as invested endowments generating income for grantmaking, while the Discovery Charter School Foundation's assets likely represent school property and facilities encumbered by debt. Its net assets of $308K represent less than 1% of the Brady Education Foundation's $17.6M, making it fundamentally different in capacity and purpose.

## Recent Activity

The Discovery Charter School Foundation showed significant financial improvement in its 2024 filing, moving from negative net assets of -$1,067,730 in 2022 to positive net assets of $307,575. Revenue grew from $452,140 in 2022 to $982,959 in 2024, suggesting growing enrollment and fundraising success.

The affiliated Discovery Charter School continues to expand, adding grade levels each year toward its goal of becoming a full 6-12 school. The school has been recognized for its innovative programs including Passion Learning Time and renewable energy initiatives. Recent grants to the school entity include an $800,000 Charter School Growth Fund grant and a $2.4 million EPA grant for electric school buses.

The foundation's website (discoverycharterschool.org) is no longer active — it now displays unrelated content. The school's current website is discoverycharterdurham.org. Executive Director Toni Shellady leads the organization, with Carl Forsyth serving as board chair.

The foundation received tax-exempt status in July 2024, a relatively recent designation that formalizes its role as the school's fundraising arm.

## Application Tips

This entity does not accept or review external grant applications. The Discovery Charter School Foundation exists solely to support Discovery Charter School in Bahama, NC, and does not distribute funds to other organizations.

For organizations interested in partnering with or supporting the school:

1. Partnership Opportunities: Organizations focused on STEAM education, renewable energy, or youth development in Durham County may explore partnership or program collaboration directly with Discovery Charter School at discoverycharterdurham.org.

2. DonorsChoose: Individual classroom teachers at Discovery Charter School post project requests on DonorsChoose.org, which may present opportunities for targeted educational support.

3. If You Are Seeking Education Grants in NC: Consider these alternative grantmaking foundations in the state: - Brady Education Foundation (Carrboro, NC) — funds education research and program evaluations - George W. & Ruth R. Baxter Foundation (Charlotte, NC) — general grantmaking - Victoria Garrett Legacy Foundation (Asheville, NC) — supports churches and charitable organizations

4. Contact: The school can be reached through its website at discoverycharterdurham.org or at 501 Orange Factory Rd, Bahama, NC 27503.