A case of Pappy helps add glitz to Derby wine auction and gala

April 28, 2015

The Lexington Cancer Foundation will have its 10th annual Kentucky Bluegrass Wine Auction & Derby Gala at Donamire Farm on April 30. This photo was taken at the 2014 event. Photo Provided

The Lexington Cancer Foundation will have its 10th Kentucky Bluegrass Wine Auction & Derby Gala at Donamire Farm on Thurday. This photo was taken at the 2014 event. Photo Provided

 

A bottle of hard-to-find Pappy Van Winkle has become a hit at many Central Kentucky charity auctions, sometimes fetching bids of $1,000 or more.

So here is one reason the Lexington Cancer Foundation‘s Kentucky Bluegrass Wine Auction & Derby Gala is one of the state’s fanciest Derby parties: It will auction an age-mixed case of a dozen bottles of the high-priced bourbon, plus a limited-edition Scottish crystal decanter filled with even more.

Kristi Martin, the foundation’s executive director, wouldn’t say who donated the Pappy or how much she thinks it might sell for. But I would expect several five-figure bids from the 400 guests Thursday night. After all, tickets to this sold-out gala at Donamire Farm cost $700 per couple.

Other auction items may bring even more than the Pappy. There are University of Kentucky basketball season tickets; a U2 concert in Chicago; a breeding season with an Ashford Stud sire; a Breeders Cup package; golfing at Pebble Beach; and luxury trips to Rome, Argentina, Mexico, Napa Valley, Las Vegas and Wyoming.

The wine auction gala has become a popular fundraiser for the foundation, which by the end of this year will have made more than $3 million in grants and donations to cancer-fighting organizations throughout Kentucky since 2004, Martin said.

At least half the attendees will come from out-of-state, she said, including a large Silicon Valley contingent that includes Kevin Systrom, the founder and CEO of Instagram. Graham Yost, creator of the hit TV series Justified, also will be there.

But compared to some other Derby parties, this isn’t a star-studded event — unless you are a wine connoisseur.

“Some high-level groups are coming in now, and that’s wonderful,” Martin said. “But what we have found out over the years during Derby week a lot of celebrities want to be paid to come, and that’s something we would never do.”

Brenda Rice, the wife of Lexington attorney Brent Rice, started the foundation in 2004 after a family member was diagnosed with cancer. She talked with friends she had volunteered with for other causes over the years and discovered many of them also had been touched by the disease.

“I thought, how can we make the biggest impact?” Rice said. “I knew what these women were capable of when their hearts were in it.”

The foundation is run by a 50-member board of women volunteers, with help from another 50 “junior” board members. Each year since 2005, the foundation has made an average of more than $280,000 in grants to a variety of hospitals, researchers and cancer-related programs throughout Kentucky.

The private foundation receives no state or federal funds, but has attracted a long list of corporate and individual sponsors, whose donations significantly cut the cost of putting on the wine auction and gala.

A key to the event, Martin said, has been its ability to attract top vintners. Each year, more than a dozen wineries spend about $50,000 each from their marketing budgets to participate. This year’s vintner chair is Will Harlan of the Harlan Estates family in Napa Valley. He now has his own label, The Mascot.

“The event has grown over the years as word has gotten out,” Martin said. “The level of wineries that we’re able to attract is phenomenal.”

Festivities begin Wednesday with six private dinners for top sponsors at foundation patrons’ homes. Vintners have a trade fair for area restaurateurs and wine merchants Thursday morning to promote their products, which will be served that evening at the gala with food catered by The Apiary.

After a Friday breakfast at Keeneland, guests are offered tours of horse farms and Woodford Reserve Distillery before dinner for vintners and top sponsors at the Iroquois Hunt Club. For those who want to attend the Derby on Saturday, the foundation helps them arrange to buy tickets.

“They get a wonderful experience of Kentucky during the Derby season,” Martin said. “And they help us raise money for our mission.”

The foundation’s other major fundraiser this year will be the fourth annual Roll for the Cure, a bicycle tour Aug. 22 in partnership with the Bluegrass Cycling Club.


West Sixth Brewery models “pay it forward” business philosophy

February 1, 2015

When four partners bought the Bread Box building and started West Sixth Brewery nearly four years ago, they said they wanted to do more than make money and good beer. They wanted to make their community a better place to live.

The partners donate 6 percent of profits to charity, plus make other donations and host monthly fundraisers where a different non-profit group receives 6 percent of sales. Last year, the company’s giving totaled about $100,000, partner Ben Self said.

“We expect that to increase significantly” this year, Self said, thanks to a quarterly program built around sales of the newest of West Sixth’s four canned beers, Pay it Forward Cocoa Porter.

pifWest Sixth will present a “big check” Wednesday to GreenHouse17, formerly called the Bluegrass Domestic Violence Program. It is the last of six non-profits getting checks as part of the program launched in September, when Pay it Forward Cocoa Porter began distribution statewide and in Cincinnati.

West Sixth wants to keep GreenHouse17’s award amount a surprise until Wednesday, but partner Brady Barlow said it would be larger than the others. “Lexington is a very thirsty town,” he said.

Other regional awards ranged from $800 to more than $5,000 each in Louisville and Cincinnati. The amounts were based on sales in each region.

The other recipients were Appalshop, the arts and media non-profit in Whitesburg; New Roots of Louisville, which provides fresh produce to needy neighborhoods; Community Action of Southern Kentucky; the Owensboro Humane Society; and Community Matters, which works in Cincinnati’s Lower Price Hill neighborhood.

Here’s how the program works: West Sixth donates 50 cents from each Pay it Forward six-pack, which retails for $9.99, to a non-profit organization “making a difference” in a community where the beer is sold. In all but the Louisville region, West Sixth’s distributors match the donation, for a total of $1 a six-pack.

Each can of Pay it Forward has a website link (Westsixth.com/pif) where customers can nominate a non-profit. Regional winners are selected each quarter by a democratic vote of West Sixth’s 32 employees, so the number of nominations made for each organization doesn’t matter.

Nominations for the first quarter 2015 awards are due Monday, and the brewery staff will meet Tuesday to choose the winners.

There is nothing new about business philanthropy. Most companies do something, some in substantial amounts, depending on their size and profitability.

But West Sixth is an example of a new trend, especially popular among some young entrepreneurs, that has been called Conscious Capitalism. Community responsibility is integral to the business model.

Conscious Capitalism acknowledges that businesses have an impact on and a responsibility to their communities and the environment. It is about serving all stakeholders, not just shareholders. That means three bottom lines, rather than just one: profits, people, planet.

“For us, that means everything from being environmentally sustainable to using local ingredients whenever possible and supporting the organizations doing great work in the communities we’re a part of,” Self said.

The partners’ philosophy extends beyond their core beer business, which is housed in the Bread Box, an 90,000-square-foot 1890s building at the corner of West Sixth and Jefferson Streets that used to be a Rainbo Bread factory.

In addition to the brewery and taproom, the Bread Box houses shared office space for non-profit organizations; artist studios; Broke Spoke, a non-profit community bicycle shop; and FoodChain, an urban agriculture non-profit.

There also are several like-minded businesses there: Smithtown Seafood restaurant; Magic Beans coffee roasters; and Bluegrass Distillers. The building also houses a women’s roller derby league.

Self said the company’s business model isn’t just about altruism: it is also good for business.

“I think there’s no doubt” that community involvement has boosted sales, Self said. “I don’t think we’re bashful about that. And by making a situation that can be a win for the community organization as well as the business, it’s something that can be done longer term.”

West Sixth’s sales have risen from 2,000 barrels in 2012 to 7,000 in 2013 and 11,000 last year. The company plans to add canned seasonal beers this year.

“Kentucky has been really supportive of us from the beginning,” Self said.

West Sixth plans to continue reinvesting in that support.

“If you take care of your community,” Barlow said, “your community will take care of you.”


Lexington-based CivicRush is new social network for good deeds

November 5, 2012

Good ideas can come from strange places. This one came from playing FarmVille, the online simulation game that Facebook users either love or hate.

Andrew Beck, vice president of software consultant Metaformers Inc., was showing the game to President Ed Bouryng, and they were discussing the digital currency system that players use to operate imaginary farms.

“After I stewed a bit, I thought, what about a digital currency that can only be used for charity, a digital civic currency?” Bouryng recalled. “Then we started looking at providing individuals a way to use social networking as a way to get out into the community and get things done.”

The result was CivicRush, a new Metaformers subsidiary based in Lexington that launched Oct. 12 with a party at Cheapside that raised $14,000 for charity. Initially focused on the Bluegrass region, the company plans to expand across the nation within a few months. So far, CivicRush has only 1,000 registered users, but the company has yet to begin marketing.

“We think it could be very big,” Bouryng said. “We have a number of new innovations here.

“We think having a single place where charity, business and individuals can get together to make change for their community is very exciting.”

CivicRush.com is a free Web site that allows individuals to make and manage financial donations to charity, as well as be paired with volunteering opportunities and build a “civic résumé” of their activities. The company also will provide donation management services to companies and charities.

“One of the complaints of social networking is you develop a lot of relationships, but they’re thin, they’re virtual,” Bouryng said. “CivicRush is designed to get people to use the power of digital socialization, but get out in their community and make things better.

“You can socialize around the good deeds you do for your community.”

When users set up profiles, they list their skills and causes they support. They can search for organizations, events, volunteer opportunities or “needs” they can help meet. They also can follow organizations and create events.

“We take an online dating engine, and we apply it to getting out into your community,” Bouryng said.

Users can donate money by purchasing CivicRush’s online currency, called “Civ,” even through payroll deduction if they wish.

Each Civ is worth a dollar. Civs can be assigned to any government-registered charity, allowing users to manage all their giving without having to go to multiple Web sites and entering personal information in each. At the end of the year, they get a single tax statement from CivicRush’s non-profit affiliate, Civillos.

Charities pay a fee of 1 percent to 3 percent when they redeem donated Civs, which Bouryng said basically covers the cost of bank and credit card fees. Bouryng said CivicRush’s revenue stream will come from additional services that businesses or charities can choose to purchase.

“All of that right now is in the development phase,” he said when asked for specifics. “We’re looking at ways to engage businesses that have charitable programs.

“We still need to find ways to make this project self-sustaining. It’s a longer term play because the initial services are all free.”

The company hopes to be self-sustaining, if not profitable, within 18 months, he said.

Metaformers, headquartered in suburban Washington, D.C., has based some operations in Lexington since 2006, when the company was hired to fix the city’s dysfunctional new financial management system.

Metaformers’ core business is designing human resources and supply chain management solutions for clients.

When the company was considering where to develop CivicRush, Bouryng said, “We were initially thinking the D.C. region. But when we started to look around at the talent pool, we found that for the tool we were using … Lexington had a very strong skill set.”

He said Metaformers was able to assemble a “world-class” development team under Lexington software designer Todd Willey.

CivicRush has 12 employees, but Bouryng said that could grow to between 20 and 100, depending on the success of its national rollout.

CivicRush occupies the top floor of the historic McAdams & Morford building on West Main Street, and Bouryng expects the company to remain in Lexington.

“We’ve had a lot of success here; I like the city, I like the people,” he said. “It has a great climate for business.”