C H E S A P E A K E B A Y F O U N D A T I O N

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As 2007 ends, CBF’s Board andstaff thank you, our dedicatedmembers, for supporting us. Withvolunteer hours, advocacy, andcontributions, CBF members areresponsible for our every success.

We have much to celebrate.Twenty-five years ago, there wasno definitive agreement for restor-ing the Chesapeake Bay. In fact,the states were more likely to befighting over the Bay than workingtogether for it. Today, the stateshave formed a working pact andsigned the Chesapeake 2000 Agreement, which sets spe-cific and measurable goals, an important first step.Twenty-five years ago, there were no sewage treatmentplants on the Bay that had nitrogen removal technology.Today, more than half the plants do. Twenty-five yearsago, striped bass were nearly gone. Today, they are plen-tiful. Twenty-five years ago, we had 10,000 members.Today, we have nearly 200,000.

In just the past year, our legislative victories inPennsylvania, Maryland, and Virginia resulted in hun-dreds of millions of dollars allocated to pollution reduc-tion. We have planted underwater grasses and livingshorelines across the region, and we have started collab-orative investigations into precision feeding for farm ani-mals and waste-to-energy solutions for agriculturalmanure. Our combination of grassroots outreach, mediawork, and effective litigation defeated two proposedmega-developments that would have further polluted theBay. CBF attorneys won a precedent-setting victorybefore Virginia’s Supreme Court, confirming our right to

litigate in Commonwealth courts.And we taught tens of thousandsof students as the nation’s largestenvironmental educator. CBF hasalso entered the federal legislativearena by advocating reform to thefederal Farm Bill and the federalNo Child Left Behind Act.

Still, there is much to be done. AsCBF’s 2007 State of the Bay shows,poor water quality continues tothreaten the Bay. Blue crabs, oys-ters, and other species are strug-gling. And our revived striped bass

population faces disease, failing food resources, andreduced habitat. Rising water temperatures threatenunderwater grasses and pollution-filtering wetlands.Sprawling development continues to blight the landscape.170,000 new people moved into the Bay watershed in2007, each leaving an environmental footprint.

Our elected officials know what must be done to get theBay off the federal Clean Water Act’s “dirty waters” list bythe court-imposed 2010 deadline. In 2008, we will pusheven harder to see that they follow good science and fundthe existing restoration plans to meet the deadline.

Thank you for making all of this possible. We will savethe Bay.

William C. Baker D. Keith Campbell

Chesapeake Bay Foundation President William C. Baker and Chairman D. Keith Campbell

Introduction AR3

New Outreach AR4

New Momentum AR8

New Investment AR12

Financials AR15

Leadership Back cover

TABLE OF CONTENTS

PRESIDENT AND CHAIRMAN’S MESSAGE

CBF’s Philip Merrill Environmental Center in Annapolis, Maryland, earnedthe Center for Built Environment’s Livable Building Award in 2007 for

exemplifying the benefits of green technology in the workplace.

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Concern for the environment, coupled with a new determina-tion to stop the degradation of our water, land, and air, reachednew heights of public consciousness in 2007. In the Bay states,citizens expressed a growing awareness of the toll that humanactivities are taking on the Chesapeake Bay, voiced their sup-port for vigorous new programs and funding for its recovery,and shared their conviction that saving the Bay and restoringour region’s waterways is an urgent and essential task.

This public outcry reflects the Chesapeake BayFoundation’s (CBF) 40-year effort to attack the causes ofpollution, restore the natural landscape, and raise the con-sciousness of our citizens. Our goal is to achieve significantimprovements and create lasting investments by 2010.

This past year, our staff and volunteers dedicated them-selves to campaigns that linked the common interests of ourmembers, farmers, watermen, teachers and students, thebusiness sector, and environmental partners. The result wasa powerful new synergy that yielded positive momentumand growing investment in pollution reduction.

Basing our policies on sound science, we have aligned ourgoals with those laid out in the region’s 36 TributaryStrategies (river restoration plans). We have set our sightson leveraging CBF’s resources to enact this blueprint by theyear 2010, as our region’s leaders agreed when they signedthe self-imposed Chesapeake 2000 Agreement (C2K). Weknow that by aggressively reducing runoff from farmlandand upgrading sewage treatment plants, we can achieveapproximately 80 percent of the necessary pollutionreductions for about 20 percent of the overall cost.

As 2007 closes, we are at a tipping point. CBF has pushedhard to reduce pollution, secure funding, and providecountless opportunities for students, teachers, and others toexperience the Bay. Progress is accelerating—but we have along way to go to meet our objectives, and the government’sC2K annual pollution reduction target, by 2010.

Like the public, we are convinced that these goals are nec-essary and achievable, and we imbue every one of ouractions with that belief.

We don’t accomplish anything in this world alone…and whatever happensis the result of the whole tapestry of one’s life and all the weavings ofindividual threads from one to another that creates something.

Sandra Day O’Connor

At a September press conference at the Merrill Center, Senior Scientist Dr. Beth McGee explains CBF’s 2007 Bad Waters report to members of the media.

2007 ANNUAL REPORT

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N E W O U T R E A C H

Reaching out through advocacy, volunteerism, education,alliances, and membership, CBF expanded and strength-ened its base of support in 2007.

A D V O C A C YAs CBF’s outreach grows, so does our capacity for action.Nowhere was this more evident than in our 2007 advocacycampaigns: urging funding for pollution reduction in thefederal Farm Bill and Pennsylvania’s ResourceEnhancement and Protection Act (REAP), and opposingpoorly-planned mega-developments. Across the watershed,CBF’s staff focused intensely on lobbying efforts, e-commu-nications, paid media, and direct outreach to educate citi-zens and politicians on the issues. Tens of thousands of CBFmembers and volunteers turned out for town hall meetings,responded to our call to contact their elected officials, andopened their homes for community discussions. Theirefforts resulted in tangible gains for CBF initiatives.

C B F A C T I O N N E T W O R KThe CBF Action Network, our online community of Bayadvocates, extended its reach in 2007. The network gener-ated a 12 percent increase (from 17,000 to 19,000 over theprevious year) in the number of issue-oriented e-mailsdelivered to elected officials. These messages generatedadded political clout as we advocated for our issues andensured that our voices continued to be heard.

V O L U N T E E R I S MThroughout the watershed, more than 14,000 volunteersjoined CBF’s active, hands-on efforts to reduce pollutionand improve water quality. This year’s Clean the Bay Day inVirginia, an annual pick up of trash and debris in localwaterways, attracted more than 6,000 participants—an all-time record. Additionally, a new corporate partnership withStarbucks brought its employees and customers to volunteerat restoration events in Maryland, the District of Columbia,

Never doubt that a small group of thoughtful, committed citizens canchange the world. Indeed, it is the only thing that ever has.

Margaret Mead

CBF’s nationally acclaimed, hands-on educational experiences put students in touch with their local waterways and instill environmental awareness for the future.

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and Virginia. These efforts reflect the kind of collaborationthat has tremendous benefits for the Bay.

Graduates of CBF’s three-year-old VoiCeS (Volunteers asChesapeake Stewards) program, which combines in-depth tutorials on Bay issues with a commitment to 40hours of community service, undertook outreach proj-ects in Maryland from Frederick to the Eastern Shore.VoiCeS-certified “Chesapeake Stewards” lent hands-onassistance, restoring oyster reefs, monitoring water qual-ity, and “greening” local schools. More than 50 partici-pants completed the program in 2007.

VoiCeS began at CBF’s Heart of the Chesapeake Office inSalisbury, which leads our restoration and outreachefforts on Maryland’s Eastern Shore. Our important workin this region was initiated and has been sustained bylasting and meaningful support from the Mary FlaglerCary Charitable Trust.

E D U C A T I O NEnvironmental education has been an essential part of ourmission for more than three decades, and our dedicationand success have earned CBF recognition as the leadingenvironmental educator in the country. Our program, thelargest of its kind, offers unique field experiences, accred-ited professional development courses for teachers, stan-dards-based classroom curriculum materials, and studentleadership opportunities. We also coordinate hands-onrestoration projects for pupils, such as growing underwa-ter grasses for transplant, raising oysters, building rainbarrels, designing rain gardens, and participating inschoolyard “greenification” projects.

In 2007, CBF provided nearly 40,000 on-the-water educa-tional experiences for students and teachers throughout theBay states. One supporter, the Beazley Foundation, helpedunderwrite Virginia field trips for nearly one thousandHampton Roads students. “Our region is blessed with thenatural beauty of the Chesapeake Bay and tributaries, andeducation promotes and enriches an appreciation of theBay’s extraordinary value,” says Foundation President JudgeRichard Bray. For the eighteenth consecutive year, anotherpartner—the Great Chesapeake Bay Schooner Race—donated all proceeds from its annual event to our environ-mental education program. Upstream, the SusquehannaWatershed Education Program in Pennsylvania introduced2,000 students to their local rivers and streams throughsupport from concerned donors like Louis J. Appell ofYork. Appell’s support stems from his belief that “it is veryimportant that students recognize the great significance thata healthy Bay has for our area.”

This year, CBF also expanded its Student LeadershipProgram, running five summer trips for 63 participants from

JJ.T. “JERRY” CRAWFORD CBF MEMBER OF THE YEARCBF presented its 2007 Member of the Year award to J. T. “Jerry” Crawford, an active CBF vol-unteer and member for more than two decades. As a certified Bay Wise Master Gardener, afrequent worker at CBF’s Oyster Restoration Program, and a political advocate, Crawford issteeped in Bay knowledge, which he shares with the public at CBF Speakers Bureau presen-tations, fairs, and festivals. Since retiring from an international career with the CentralIntelligence Agency, he has authored two works of historical fiction, Skipjack! and BeyondReach. He donates 20 percent of his books’ proceeds to CBF.

Hundreds of volunteers lent a hand with CBF oyster restorationprojects at the U.S. Naval Academy and other Bay locations.

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across the watershed. New to this effort in 2007 was theStudent Action Network, an online program that provideshigh school students with ideas and resources for environ-mental projects they can do in their own communities.

A L L I A N C E SForming strong relationships with partners was a hall-mark of 2007. For example, a coalition of more than 125national groups joined with CBF to reform the No ChildLeft Behind Act to ensure environmental instruction forour nation’s schoolchildren. Leaders in the health andconstruction industries allied themselves with a CBF ini-tiative in the Maryland legislature that created a fund ded-icated to improving water quality in the Bay. And theChesapeake agricultural community backed CBF cam-paigns for Bay-saving funding (in Pennsylvania and in thefederal Farm Bill) that would help farmers implement pol-lution reduction strategies.

These working partnerships have amplified CBF’seffectiveness. Virginia Governor Tim Kaine stated thatCBF’s work with diverse partners, including theVirginia Farm Bureau, is a compelling reason why hewants to continue to invest in pollution reductionmeasures, despite competing needs and tight fiscalrestraints.

M E M B E R S H I PAt the close of 2007, CBF membership reached an all-time high, nearing 200,000—an increase over theprevious year of more than 10 percent. This growthindicates both the vitality of CBF’s message and thegrowing consensus that the Bay and its rivers andstreams need every citizen’s support. Backed by ourmembers, CBF pledges to continue the ongoing fightto protect and restore our national treasure, theChesapeake Bay.

APRIL TODD NORTHRUP GRUMMAN TEACHER OF THE YEAREach year, CBF hosts a special Bay trip for teachers from around Maryland who have been nomi-nated as the Teacher of the Year in their county and Baltimore City. This October, April Todd, a lan-guage arts teacher at Somerset Intermediate School in Somerset County, was selected as Teacherof the Year out of 24 candidates. She and 15 of her fellow nominees traveled to CBF’s Smith Islandeducation center for a three-day retreat. This trip was sponsored by Northrop Grumman throughits commitment to support CBF’s Maryland Environmental Education Programs.

“The Beazley Foundation is pleased to partner with theChesapeake Bay Foundation and Portsmouth Public Schools in providing

‘on-the-water’ experiences for local students,” says Beazley Foundation President Judge Richard Bray, shown here (second from right)

with a group of Hampton Roads students.

Tree planting events sponsored by CBF attrac ted participants from many

sources. A new part nership withStarbucks provided volunteer manpower

to projects across the Bay watershed.

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N E W M O M E N T U M

National and local breakthroughs in 2007 reflected CBF’sinsistence on immediate, bold action by elected officials. Inaddition to ground-breaking legislation at federal and statelevels to fund pollution reduction measures by farmers,CBF made further strides in a number of key initiatives.

B L A C K W A T E RTens of thousands of activists and supporters joined forceswith CBF in 2007 to oppose dangerous precedents in newdevelopment. Our campaigns combined a variety of tools:grassroots organization, online alerts and petitions, aggres-sive media efforts, and legal action. In a victory for CBF andits partners, a final settlement by the state of Maryland halt-ed a sprawling mega-project that threatened BlackwaterNational Wildlife Refuge. Under the revised plan, the statepurchased more than 700 acres of the property for ProgramOpen Space and allowed less than 10 percent of the origi-nal development. In a separate case, permits for a large

waterfront project on Maryland’s Eastern Shore were deniedafter CBF President William C. Baker and MarylandExecutive Director Kim Coble met with Governor O’Malley.

R E S T O R A T I O NThe year also brought progress in key restoration proj-ects. Ongoing efforts to bring back the Bay’s dwindlingoyster population got a boost from new, CBF-initiatedlegislation in Maryland, where the General Assemblymandated safeguards for existing oyster reefs andfunded programs to restore the native oyster.Meanwhile, large-scale oyster propagation efforts atCBF facilities in Maryland and Virginia showedencouraging success, and millions of juvenile oysterswere planted. CBF’s many-faceted oyster program sup-ports the recovery of one of the Chesapeake’s mostvaluable natural filters, which will improve waterquality throughout the Bay.

Sometimes being pushed to the wall gives you the momentum necessaryto get over it.

Peter de Jager

Thousands of bushels of oyster shell must be bagged each year to supply CBF’s oyster propagation projects. Students stand atop a mound at CBF’s Oyster Recovery Center in Shady Side, Maryland.

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With a generous multi-year grant awarded by theRichard King Mellon Foundation in 2006, CBF lever-aged additional resources for habitat restoration inPennsylvania. Working with our partners in theCommonwealth, CBF completed more than 350restoration projects, planting some 300,000 trees andshrubs. The results were 191 miles of new forestedbuffers, including 600 acres of wetland restoration andenhancement. Buffers are tremendously cost-effectivepollution filters; new research shows that streams withthese natural filters can remove two to eight times asmuch nitrogen as streams without buffers.

P H I L I P M O R R I SIn a landmark ruling, the Supreme Court of Virginia unan-imously recognized CBF’s right to challenge pollution per-mits issued by the Commonwealth (in this case, to indus-trial giant Philip Morris). The high court’s decision in Maymeans that, for the first time, conservation groups can chal-

lenge the state’s environmental decisions on behalf of theirmembers—a right previously denied.

L I T I G A T I O NCBF’s newly expanded litigation department continuedto press for enforcement of existing environmental reg-ulations. Staff attorneys used litigation more ambi-tiously than at any time in CBF history, arguing 17cases in Virginia, Maryland, and the District ofColumbia, and filing friend-of-the-court briefs in relat-ed environmental suits. The program enlarges CBF’sability to use every tool at its disposal to demandenforcement of existing environmental laws. It hasbeen made possible with dedicated funding from foun-dations and individuals like Louis F. and Pru Ryan ofNorfolk, who have supported CBF for two decades. “Ifeel strongly that collaboration and cooperation aresuperior tools for restoring the Chesapeake,” explainsMr. Ryan. “However, sometimes, as a last resort, it is

JON MUELLERCBF LITIGATION DIRECTORSince joining CBF in 2004, Litigation Director Jon Mueller has led strategic and focused legalaction to protect the Bay and its rivers and streams. He now heads a team of three who pur-sue cases throughout the Bay region with the goal of enforcing environmental law. In a land-mark victory this spring, Jon successfully argued before the Virginia Supreme Court that CBFhad the right to challenge pollution permits issued by the Commonwealth. The ruling confirmedthe right of groups like CBF to oppose, on behalf of their members, state permits that threat-en the quality of our water. Jon previously served for 17 years as an attorney with the U.S.Department of Justice Environmental Enforcement Section.

In Washington, D.C., the House of Repre -sentatives passed a 2007 Farm Bill that

would provide $500 million over fiveyears for Bay conservation measures.

CBF litigation contesting discharge per-mits granted to corporate giant Phillip

Morris resulted in a victory for regionalenvironmental organizations.

Governor Edward Rendell and the Pennsylvania legislature approved a

$10 million tax credit program to supportconservation measures by farmers.

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necessary to resort to the courts. My wife and I are sup-porting the CBF litigation program because after otheralternatives have been exhausted, CBF needs to havethe capacity to litigate aggressively and effectively torestore the Bay.”

P R O T E C T I O NThe Atlantic States Marine Fisheries Commissionapproved a long-awaited final agreement capping theannual commercial harvest of menhaden, called “themost important fish in the sea.” CBF Senior ScientistBill Goldsborough played a vital role in the campaignto save these filter feeders, which are an essential partof the Bay ecosystem.

L I V A B L E B U I L D I N G A W A R DIn Annapolis, the Philip Merrill EnvironmentalEducation Center, CBF’s widely acclaimed “green”headquarters, won the Center for Built Environment’sLivable Building Award. Selected for the honor frommore than 300 entries—mostly buildings newer thanthe Merrill Center—CBF was cited for exemplifyingtechnologies that make buildings more environmen-tally friendly, more productive to work in, and moreeconomical to operate. The award reflects CBF’s com-mitment to embody green principles throughout theorganization.

N O C H I L D L E F T I N S I D EFinally, a campaign on Capitol Hill—one that has far-ranging implications for future environmental stew-ardship in the country—underscored CBF’s ability torally a national constituency. Working with many part-ners, and with support from CBF Trustee H.F. “Gerry”Lenfest and his wife, Marguerite, CBF’s education staffled a coalition of more than 125 organizations to lobbyfor reform of the No Child Left Behind Act (NCLB).

The coalition proposed new legislation, sponsored inthe House by Rep. John P. Sarbanes (D-MD) and in theSenate by Sen. Jack Reed (D-RI), to strengthen envi-ronmental education opportunities for America’s stu-dents. These changes were incorporated into thelarger NCLB bill and have earned bipartisan support.A vote is pending.

DON BAUGHCBF VICE PRESIDENT AND HENRY L. AND GRACE DOHERTY CHAIR FOR ENVIRONMENTAL EDUCATIONCBF Vice President Don Baugh has directed the Education Program at CBF for more than 30years. During his tenure, 800,000 students and teachers have connected with their water-ways during outdoor field experiences. He has made “hands-on, minds-on” learning the hall-mark of CBF’s program—the largest of its kind in the nation. During 2007, Don led the nation-al effort to strengthen environmental education for schoolchildren through changes in the NoChild Left Behind Act. He and his partners assembled a coalition of more than 125 groupsto press for new requirements in the re-authorization of the Act, now before Congress.

More than 40,000 students across the watershed joined CBFfield experiences to “learn outside.” CBF is leading a nationwide

effort to strengthen environmental education requirements.

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N E W I N V E S T M E N T

In 2007, state and federal leaders responded to the callfor Bay-saving funding with outstanding initiatives. Ourlegislative successes reflect the tireless efforts of CBF’sstaff, board of trustees, members, and volunteers, all ofwhom worked together to achieve increased outreachand momentum.

F E D E R A L F A R M B I L LIn July, the U.S. House of Representatives voted to includean additional $100 million in conservation funding annual-ly for five years in the re-authorized Farm Bill—an actionthat affirmed the federal government’s essential role in sav-ing the nation’s largest estuary. CBF fought hard for this vic-tory, with the leadership of Rep. Chris Van Hollen (D-MD)and other Bay congressional members and the support ofthe New York Community Trust. With matching state con-tributions, the funding could reduce millions of pounds ofnitrogen pollution in the watershed. An alternate version ofthe bill, championed in the Senate by Sen. Bob Casey (D-

PA) and Sen. Ben Cardin (D-MD), allocates $165 million innew funding. The Senate vote is pending.

This assistance will help farmers re-establish natural filters,plant forested and grassy streamside buffers to remove con-taminants from runoff, and sow winter cover crops—allproven, cost-effective practices that will clean our watersand remove carbon dioxide from the air.

P E N N S Y L V A N I A’ S R E A PIn Pennsylvania, Governor Edward Rendell signed thelandmark Resource Enhancement and Protection Act(REAP), one of the most innovative conservation laws instate history. REAP helps farmers who plan and implementproven water-quality measures by providing $10 million intransferable state tax credits. The legislation will result inannual, compounding reductions in pollution toPennsylvania rivers, streams, and the Chesapeake Bay;healthier aquatic habitats for trout and other extremely

One generation plants the trees; another gets the shade.

Chinese Proverb

The planting of trees and shrubs in forested buffers, as well as other agricultural “best management practices” to reduce pollution, got a boost from funding at both state and national levels.

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valuable Pennsylvania fisheries; economically sustainableagriculture-based communities; and improved water quali-ty throughout the Commonwealth. Because this bill has noend date, investments in clean water can continue to build.

The REAP victory came after a year-long campaign led byCBF and a coalition of 68 groups, including environmental,agricultural, and business interests. Town hall meetings,paid newspaper advertising, telephone calls, and a massivepostcard campaign generated state-wide support for the ini-tiative. Activists across the state hailed REAP’s passage as anindicator of Pennsylvania’s growing commitment to im -proving water quality. Conservation measures supported byREAP will keep hundreds of thousands of pounds of pollu-tion from contaminating Pennsylvania’s waterways.

M A R Y L A N D ’ S C H E S A P E A K E B A Y2 0 1 0 T R U S T F U N DIn a victory long sought by CBF and clean water activists,the Maryland General Assembly voted to create a fundthat will deliver $50 million annually to reduce pollutionand restore the Bay and Maryland rivers. The ChesapeakeBay 2010 Trust Fund, formerly known as the “GreenFund,” was proposed by CBF and supported by a broad

alliance of interest groups. The bill survived a highly con-tested budget debate and ultimately passed both housesduring a special session in November.

A statewide coalition of partners—including leaders fromenvironmental, agricultural, health, and home-buildingsectors—backed the legislation, which will underwriteimprovements in agricultural, stormwater, and buffer proj-ects to protect water quality.

In 2007, Maryland began to see tangible returns from its2004 Bay Restoration Fund, or “flush tax.” Six state-of-the-art wastewater treatment plants went online (at Celanese,Hurlock, Aberdeen Proving Ground, Easton, Swan Point,and Kent Island) and an additional eight began construc-tion. By implementing much higher standards for nitrogenremoval, full upgrades at facilities throughout the state willeventually eliminate seven million pounds of pollutionnow degrading the Bay and its rivers and streams.

V I R G I N I A’ S B A Y B O N D SIn April, in an eleventh-hour victory spearheaded by CBFstaff and trustees, Virginia built on last year’s historicclean-water funding with an additional $250 million innew bonds for wastewater treatment plant improvements.The Bay Bonds legislation will supplement past and futureappropriations to Virginia’s Water Quality ImprovementFund to reduce excess nitrogen pollution, the most seri-ous problem plaguing Virginia rivers and the Bay.

With a total of $550 million now budgeted for essentialupgrades, the action “finishes the job” on addressing pollu-tion from Virginia sewage plants. The appropriation willenable Virginia to meet its established goal for pollutionreduction from sewage treatment plants—nearly one-third,or nine million pounds, of the Commonwealth’s total goal.

CBF and partners have now achieved $2 billion in funding inthe Bay states—allocations which will take us one-third ofthe way to the goals outlined in the Tributary Strategies, the“roadmap” to Bay restoration. Our challenge for the future isto secure the dollars needed for the final two-thirds.

ANN JENNINGSCBF VIRGINIA EXECUTIVE DIRECTORAnn Jennings oversees our environmental and legislative advocacy, resource protection, landconservation, and grassroots programs in the Commonwealth. This year, she coordinated CBF’ssuccessful efforts to gain passage of Virginia’s $250 million Bay Bonds legislation during the2007 General Assembly session. CBF’s top priority during the session, the bond measure wasoriginally proposed by Governor Tim Kaine and, after many stops and starts during the legisla-tive process, ultimately passed both Assembly houses by unanimous votes. Ann shares cred-it for the victory with the Virginia office staff, CBF’s Virginia trustees, and CBF members andfriends, who sent hundreds of emails and phone calls to legislators in support of the bonds.

Bay-area farmers joined CBF in a coalition that demonstrated the political muscle of an

agricultural-environmental partnership.

THE FACES OF CBF

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2007 ANNUAL REPORT

CBF’s management practices ensure that operating funds raised in the current year as well as the capital campaign funds pledgedin previous years are effectively put to use to support programs to save the Bay.

F I N A N C I A L S U M M A R Y F O R T H E F I S C A L Y E A R E N D I N G O N J U N E 3 0 , 2 0 0 7

Membership contributions 4,766,693

Grants and gifts 12,823,073

Education contracts & tuition 1,147,662

Investment income 2,178,749

Other 593,421

Funds raised in prior years to support FY07 expenses 685,371

__________________________________________Total Support and Revenue $22,194,969

PROGRAM SERVICESEnvironmental Education 5,494,565Environmental Protection & Restoration 9,059,829Communications 3,232,732

Total program services 17,787,126

SUPPORT SERVICESGeneral & Administrative 1,617,180Fundraising 2,790,663

Total support services 4,407,843__________________________________________Total Expenses $22,194,969

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F I N A N C I A L O V E R V I E W

SUPPORT AND REVENUE 2007 EXPENSES 2007

Program Services 80%

General & Administrative 7%

Fundraising 13%

Membership Contributions 22%

Grants and Gifts 60%

Education Contracts and Tuition 5%

Investment Income 10%

Other 3%

A copy of the audited financial statement & IRS 990 tax return are available through our state offices or the headquarters office in Annapolis, Maryland.(See back cover for addresses.)

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ABOUT THE COVER:CBF efforts in education, restoration, and advocacy touched communities throughout the Baywatershed in 2007.

Images left to right: CBF Staff, Beth LeFebvre/CBF Staff, Loren Barnett Appel/CBF Staff, Bill Portlock/CBF Staff, Getty Images, Karl Willey/CBF Staff, Marcy Damon/CBF Staff,Margaret Tossey, Jeff Vanuga, National Resources Conservation Service

Photo insets on interior pages: Ian J. Plant

PHOTO CREDITS: page AR2: top: Kelly McMahon Willette; bottom: Dave Hartcornpage AR3: Loren Barnett Appel/CBF Staffpage AR4: Getty Imagespage AR5: Bill Portlock/CBF Staffpage AR6: top: Beth LeFebvre/CBF Staff; bottom: Jennifer Wallace/CBF Staffpage AR7: left to right: CBF Staff, Marcy Damon/CBF Staff; bottom: Jeff Rogee/CBF Staffpage AR8: Ian J. Plantpage AR9: Karl Willey/CBF Staff

page AR10: left to right: Bill Portlock/CBF Staff, Getty Images, Commonwealth Media Services; bottom: Dave Hartcorn

page AR11: CBF Staff; bottom: Dave Harppage AR12: Ian J. Plant (Pinnacle Overlook, Susquehanna River)page AR13: CBF Staffpage AR14: Bob Nichols, National Resources Conservation Service; bottom: CBF Staff

Printed on recycled, recyclable paper. 12/07.

MarylandPhilip Merrill Environmental Center6 Herndon AvenueAnnapolis, MD 21403410/268-8816410/269-0481 (from Baltimore metro)301/261-2350 (from D.C. metro)

PennsylvaniaThe Old Water Works Building614 North Front Street, Suite GHarrisburg, PA 17101717/234-5550

VirginiaCapitol Place1108 East Main Street, Suite 1600Richmond, VA 23219804/780-1392

Web site: cbf.orgE-mail: chesapeake@cbf.orgMembership information: 888/SAVEBAY

CHESAPEAKE BAY WATERSHED

The Chesapeake Bay’s 64,000-square-milewatershed covers parts of six states and ishome to more than 17 million people.

LEADERSHIP

OFFICERSD. Keith Campbell, ChairmanJames E. Rogers, Vice ChairmanSusan S. Phillips, SecretaryArnold I. Richman, TreasurerWilliam C. Baker, President

TRUSTEESMyrtha L. AllenDonald F. Boesch, Ph.D.John T. Casteen, IIIAtwood Collins, IIIRichard L. FranyoG. Waddy GarrettAlan R. GriffithCarolyn GroobeyMichael J. HanleyVirginia R. HoltonJennifer B. HortonRandal B. KellH.F. LenfestHarry T. LesterH. Turney McKnightWayne A. MillsW. Tayloe Murphy, Jr.Donald H. Patterson, Jr.Marie W. RidderAlexis G. SantTruman T. Semans Simon Sidamon-EristoffJennifer StanleyThomas H. StonerMichael WatsonJohn R. Whitmore Anthony A. Williams

HONORARY TRUSTEESLouisa C. DuemlingC. A. Porter HopkinsBurks B. LaphamT. Gaylon Layfield, IIIM. Lee MarstonCharles McC. MathiasGodfrey A. RockefellerRussell C. ScottEdmund A. Stanley, Jr.Aileen Bowdoin TrainWilliam W. Warner

EX-OFFICI0 TRUSTEESGovernor Martin O’Malley

Annapolis, MarylandGovernor Edward G. Rendell

Harrisburg, PennsylvaniaGovernor Timothy M. Kaine

Richmond, VirginiaMayor Adrian M. Fenty

Washington, D.C.Joanne S. Berkley, Bay Care Chapter

Norfolk, VirginiaHal C. B. Clagett, Clagett Trustee

Upper Marlboro, MarylandPeter Gnoffo, York Chapter

White Marsh, Virginia

SENIOR STAFFWilliam C. Baker

PresidentEdward T. Allenby

Vice President for DevelopmentDon R. Baugh

Vice President of Education, Doherty Chairfor Environmental Education

Elizabeth T. BuckmanVice President of Communications

Charles D. Foster, Jr.Chief of Staff

Roy A. HoaglandVice President of Environmental Protection& Restoration

Fay R. NanceVice President of Finance

Mary Tod WinchesterVice President of Administration

Kim L. CobleExecutive Director, Maryland

Matthew J. EhrhartExecutive Director, Pennsylvania

Ann F. JenningsExecutive Director, Virginia

Debbie L. BoydDirector of Human Resources

Jon A. MuellerLitigation Director

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