The Conrad N. Hilton Foundation might be known for its support of causes for the past 70 years, but just recently its footprint became a little more powerful in the greater Valley area. Situated among the rolling hills of the eastern Conejo Valley, the foundation calls Agoura Hills home since leaving its Century City headquarters about a year and a half ago. And just as the foundation became comfortable in its new digs, another big change was announced: President and Chief Executive Steven M. Hilton will retire at the end of next year. Even with the move and planned leadership shift, the foundation dedicated to helping the less fortunate is running just as stably as ever, said Hilton, grandson of the late founder who also started the Hilton hotel chain. “We are really glad to be in Agoura Hills,” Hilton said. “We went from being in this high-rise, urban setting to this beautiful, natural environment by Ladyface Mountain with oak trees, wild deer and bird life.” Since relocating to Agoura Hills, the foundation is up to 52 employees after adding 22, most of whom are from the Valley. Now that it’s here, the foundation is the largest non-profit in the region, reporting about $2 billion in assets for 2012 (see list beginning on page 10). In terms of grant giving, the foundation gave away about $105 million in 2012, a huge leap from the $6 million that was awarded to charities back in 1983 when Steven Hilton joined the organization. The second-largest non-profit in the Valley, which previously held the top spot, is Front Porch Communities and Services in Burbank. The organization, which operates full-service retirement communities, reported $568 million in assets for 2012. In third place is the Ronald Reagan Presidential Foundation in Simi Valley, which had about $267 million in assets for 2012. A good cause Conrad Hilton created the foundation in 1944 as a philanthropic trust, and six years later, it was legally recognized as a non-profit corporation separate from Hilton Hotels Corp. When he passed away in 1979, he left a will directing the foundation to relieve the suffering of the distressed and destitute without regard to race, religion or country. “The practice of charity will bind us – will bind all men in one great brotherhood,” his last will read, in part. Following in the tradition of charity, Conrad’s son Barron, who joined the foundation in 1950, pledged to leave 97 percent of his estate to the foundation. According to Steven, upon his father Barron’s passing, the foundation will acquire about $2.1 billion to add to its current assets, almost doubling the total. That is expected to place the foundation among the country’s dozen largest philanthropies. At that time, the foundation will also start a second phase of construction to complement its 23,000-square-foot headquarters. The ultimate plan is to construct four buildings with a total of 90,300 square feet within a 12-acre sector of the Agoura Hills site, which has 70 total acres. The first phase of development on the office structure and maintenance building, which Hilton lent a great hand to designing, cost the foundation about $41 million and is expected to last more than 100 years. The second phase will commence in January and it will take about 12 to 14 months to complete a meeting room and conference facilities. The organization believes the investment will eventually reduce fixed costs. Because commercial rents in Century City are among the highest in Los Angeles, the Hilton Foundation will realize savings at its new headquarters by not having to pay rent. Just because its mission is international in scope doesn’t mean some locals are not seeing the fruits of the foundation’s labor. The organization has worked closely with Los Angeles Family Housing, for example. Helping the homeless is one of the foundation’s priorities. It began its relationship with L.A.’s biggest association to end homelessness in 2003 when it donated $25,000 to support the Sobering Station for those who suffer from mental illness or substance abuse issues. But Hilton raised the stakes in 2012 when it pledged $700,000 to the Registry Project over a period of two years. The registry is an assessment tool that allows the family housing organization to identify who is out in the community and registering them in a comprehensive way, such as understanding their mental and physical health, veteran status and years of unemployment, among other variables. While 270 chronically homeless people were initially identified by the San Fernando Valley Homeless Coalition, 175 of them were placed in permanent housing. The Hilton Foundation also gave $250,000 to the Klump Rehab Project, which helped convert the Klump Apartments in North Hollywood, previously a single-room occupancy building, into permanent supportive housing. “The Hilton Foundation is very strategic in their philanthropy, and they want to make a significant impact,” said Stephanie Klasky-Gamer, chief executive of Los Angeles Family Housing. “They are not typically giving away $20,000 or $30,000. They look at how they can make a substantial, multiyear gift with measurable outcomes and goals.” Klasky-Gamer noted that the Hilton Foundation is unlike most non-profits she works with because it does a lot more than just sign a check; it actually helps develop the projects it funds. “They sit at the table when policy decisions are made throughout L.A.,” she said. Additionally, as a gift to its new neighborhood, the Hilton Foundation made a donation of $2.3 million to the city of Agoura Hills last year to help with the construction of its new Senior and Recreation Center. The amount helped significantly with the $10 million costs associated with the project that is slated to finish in December. “It will serve all segments of our community,” said Agoura Hills City Manager Greg Ramirez, in an email. But as Hilton pointed out, while the organization is glad to be in the community, the bulk of its grants will go to areas all over the world that are in more desperate circumstances. “If you look at our mission, it is to help those with very great needs,” he said. “And luckily, the people who live in the immediate area of Thousand Oaks, Agoura Hills and Westlake Village are generally in a very fortunate position to be able to live here.” Taking over Hilton said that even though the non-profit has its core mission of assisting the less fortunate, it takes a business-minded person to run such a group. “We are a non-profit organization, but it runs just as a business does,” Hilton said. “You still have to have good management, good hiring procedures and a vibrant culture where people want to be.” Hilton is not part of the committee to select his replacement, but said the person needs to have a passion for the foundation’s six priority areas of providing safe water, ending chronic homelessness, preventing substance abuse, helping children affected by HIV and AIDS, supporting transition-age youth in foster care and extending Conrad Hilton’s support for the work of Catholic Sisters. Recruiting firm Spencer Stuart, as well as a handful of foundation board members, have been chosen to lead the search for the non-profit’s new leader. “They have a good amount of time to find someone who is the right fit,” Hilton said. “I think it has to be someone who can put his or her imprint on the organization while sticking to our values.” Hilton will step down as chief executive but hopes to keep his spot as chair of the board of directors, pending approval from the board that he has led since 2012. He was named president in 1998 and CEO in 2005.
