Transformation Trust Inc.

## Approach Strategy

Transformation Trust Inc. is a private independent foundation based in Indianapolis, Indiana (PO Box 80007, Indianapolis, IN 46280) that has operated since December 1997. The foundation is classified under NTEE code T22 (Private Independent Foundations) with a primary focus on "Philanthropy, Voluntarism and Grantmaking Foundations" and its principal activity is described as "Gifts, grants, or loans to other organizations."

Key Leadership: The foundation is governed by a small board consisting of Sheila Klink (Board Member, $75,000 compensation), Elizabeth Hamilton (Board Member, $22,000 compensation), and Jeanne Paquette (Board Member, $0 compensation). Ed Klink has historically served as Executive Director.

Strategic Positioning: Transformation Trust operates as a family-directed private foundation with no public-facing website, application portal, or published guidelines. This structure strongly suggests that the foundation operates on a preselected/invitation-only basis, with grants directed to organizations and causes personally selected by the board members. The absence of a public application process, combined with the small board size and family governance structure, indicates that relationship-building and direct outreach to board members would be the primary pathway to consideration for funding.

Website Note: The domain transformationfoundation.org belongs to an unrelated entity (The Transformation Foundation, EIN 27-1137250, Fort Myers, FL). Transformation Trust Inc. does not appear to maintain its own website.

## Funding Patterns

Financial Overview (FY 2024): - Total Assets: $21,856,502 - Total Revenue: $1,126,317 - Total Expenses: $1,520,925 - Charitable Disbursements: $1,302,961 (85.7% of expenses) - Net Income: -$394,608 - Total Liabilities: $0

Revenue Composition (FY 2024): - Dividends: $769,934 (68.4%) - Sales of Assets: $326,237 (29.0%) - Other Income: $30,146 (2.7%) - Contributions Received: $0

Historical Grantmaking Trend: The foundation has experienced a sustained asset decline from approximately $31.8 million in 2011 to $21.9 million in 2024, a 31% decrease over 13 years. This reflects a deliberate spend-down pattern where charitable disbursements consistently exceed investment returns. The foundation has operated at a deficit in most years since 2011, indicating the board prioritizes maintaining or increasing grant output over preserving the endowment. Annual charitable disbursements have ranged from $1.3 million to $1.7 million over recent filing periods.

Compensation Structure: Board compensation totals $97,000 annually ($75,000 + $22,000), representing 6.4% of total expenses. This is relatively high for a private foundation of this size, consistent with active family foundation governance.

Grant Size Indicators: With $1.3 million in annual charitable disbursements and no published information about the number of grants, typical individual grant sizes likely range from $10,000 to $100,000, consistent with mid-sized private foundations in Indiana.

## Peer Comparison

Key Observations: Transformation Trust sits in the mid-tier of Indianapolis private foundations by asset size. Its payout rate of approximately 6.0% ($1.3M/$21.9M) exceeds the IRS minimum distribution requirement of 5% for private foundations, and its consistent deficit spending suggests an intentional distribution strategy rather than investment-growth orientation. Among its Indianapolis peers, the foundation's lack of public transparency (no website, no published guidelines, no mission statement on file) is notable but not unusual for family-directed foundations in this asset range.

## Recent Activity

FY 2024 Highlights: - The foundation distributed $1,302,961 in charitable disbursements, maintaining its historically high payout ratio of 85.7% of total expenses dedicated to charitable purposes. - Revenue totaled $1,126,317, primarily from investment dividends ($769,934) and asset sales ($326,237), reflecting a conservative investment portfolio heavily weighted toward income-producing securities. - The foundation received zero contributions, confirming it operates entirely from endowment returns rather than fundraising.

Multi-Year Trend: Assets have declined steadily from $31.1M (2013) to $25.1M (2019) to $21.9M (2024), a trajectory suggesting the foundation may be on a multi-decade spend-down path. At current rates of net depletion (~$400K/year), the endowment could sustain current grant levels for approximately 50 more years, though declining investment income from a shrinking asset base may accelerate this timeline.

Community Connections: Transformation Trust has been identified as a financial partner of Dress for Success Indianapolis, indicating at least some grantmaking directed toward women's economic empowerment and workforce development in the Indianapolis area. The foundation's NTEE classification and filing descriptions indicate general-purpose grantmaking rather than a narrow programmatic focus.

Governance Stability: The three-member board (Klink, Hamilton, Paquette) has remained stable across recent filings, suggesting consistent decision-making and established philanthropic relationships.

## Application Tips

Critical Caveat: Transformation Trust Inc. does not maintain a public website, application portal, or published grant guidelines. Based on all available evidence, this foundation operates on a preselected or invitation-only basis. The following tips are tailored to this reality.

1. Relationship-Based Approach: - The most viable path to funding consideration is through direct relationship-building with board members Sheila Klink, Elizabeth Hamilton, or Jeanne Paquette. Research their community involvement, board service on other organizations, and social/professional networks in Indianapolis. - Identify mutual connections who could provide a warm introduction. Indianapolis has a tightly interconnected philanthropic community through organizations like the Indiana Philanthropy Alliance.

2. Demonstrate Local Impact: - The foundation is deeply rooted in Indianapolis (operating since 1997). Proposals or conversations should emphasize measurable impact within the Indianapolis metropolitan area or Central Indiana. - The connection to Dress for Success Indianapolis suggests interest in women's empowerment, workforce development, or community self-sufficiency programs.

3. Alignment Signals: - Focus on demonstrating organizational credibility, strong financial management, and measurable outcomes. Family foundations with small boards tend to prioritize trust and organizational stability. - Present a clear, concise case rather than lengthy proposals. Board members reviewing grants without staff support prefer digestible information.

4. Timing Considerations: - The foundation files its 990-PF annually with a December fiscal year end. Board grant decisions likely occur throughout the year, but year-end giving cycles (October-December) may be particularly active. - The foundation's phone number (317-580-2002) provides a direct contact channel for initial inquiry, though unsolicited calls should be approached respectfully.

5. Realistic Expectations: - With $1.3M in annual charitable disbursements, individual grants likely range from $10,000 to $100,000. - The foundation's preselected model means it may already have established relationships with its regular grantees. New applicants should focus on building long-term relationships rather than expecting immediate funding.