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Thomas Frist
Founder & Chairman Emeritus, HCA Healthcare

Reflections: CFMT's Beginning as told by Ellen Lehman, Ted Lazenby & Tommy Frist, Jr.

🎥 Jul 26, 2021 📺 CommFoundMidTn ⏱ 19m 👁 132 views
The Community Foundation of Middle Tennessee founder and president Ellen Lehman, former president of National Life ...
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About Thomas Frist

Thomas Frist, Jr., co-founder of HCA Healthcare, has spoken about his family's philanthropic and civic involvement in Nashville. In a 2021 discussion about the founding of The Community Foundation of Middle Tennessee, Frist recalled that he became involved after a 1990 lunch with Ida Cooney, who urged him to start a community foundation. He said the foundation has allowed his family to be "more effective in our charitable giving" and stated that the community is "far better off today" as a result. Frist also noted that some people initially opposed the idea, believing there was no need for a community foundation given existing private and not-for-profit foundations. In a 2015 acceptance speech for the Tennessee Health Care Hall of Fame, Frist credited his father, Thomas Frist, Sr., and HCA co-founder Jack Massey as role models. He said his father taught him "core values" including integrity and humility, and that Massey taught him "the joy of giving back." Frist described Nashville and Tennessee as "an unbelievably great place for the Frist family" and said he hoped that "along the way we've made the world a little better place for others." In a 2016 video for the Nashville Health Care Council's 20th anniversary, Frist said the council has provided a place for healthcare pioneers to collaborate and that Nashville has become "an important source of new ideas and new technologies" in healthcare.

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Transcript (15 segments)
I
Interviewer0:19
Let's talk first of all about how you got involved with The Community Foundation.
T
Thomas Frist0:25
September 24, 1990, I went to lunch with my friend Ida Cooney. She and I had lunch about once a year for 150 years prior to that, and we were sitting at lunch and I was whining to her, moaning about sitting on the board of nonprofit organizations and having executive directors who were overworked and underpaid being responsible for things for which they had no training. I looked at, I was on the board of the Tennessee Repertory Theater and Mack Perkle, who is a wonderful artist, was negotiating employee benefit contracts and managing endowment funds. And Martin Omaker at Family Children's Service was doing the same thing, and I said it's patently ridiculous! These people aren't trained for that. It's unfair of us as a community to expect them to suddenly develop this expertise overnight. And Ida leaned across the table, this was the Cakewalk Restaurant, she leaned across the table and wagged her finger in my face and said in that incredibly gravelly voice, 'What you need to do is start a community foundation.' And I said, 'What's a community foundation?' And she proceeded to give me the, probably 30 second version of it. And I said, 'You're right. That's what we need.' She then proceeded to sort of sit back and say, 'Well, uh, okay.' We talked a little bit more about it. At the end of lunch I said, 'Do you have any information about this?' And followed her back to the then HCA Foundation where she handed me a couple books, Xeroxed some things for me and gave me enough to go home and read. Two days later I was back at her office getting more information and truly found that it was the greatest thing since sliced bread. A community foundation is at its heart the community's savings account, charitable savings account. Most charities go out every year raise the money that they use to pay the light bill and raise the money they used to pay salaries. It is - they are charitable checking accounts. And what the community foundation concept brought to a community, or brings to a community is the opportunity for money to come in to be invested, to be safeguarded and to be used over the course of a long period of time to support the charitable needs of the community as they emerge. The first community foundation was created in 1914 in Cleveland, Ohio by a man named Frederick Gough who was, I have heard, a trust department person, a judge, a lawyer, and heaven only knows what else. He saw the need for there to be an opportunity for the dead hand not to control such gifts. He wanted to see that there was a group of civic leaders who were charitably inclined. Again my words, not his, that could make sure that somebody's charitable wishes became a reality. And one of the apocryphal stories, um, which I hope is true because it's wonderful, is that he had seen a couple in rural Ohio who had, had the wonderful intention of alleviating poverty in their county. They left in their will of a bequest and said, 'We want every year, we want money to go to the six poorest people in our county.' It's a wonderful idea. It's a wonderful concept. The reality was that instead of lessening poverty in the county, it increased poverty in the county, because everyone who was poor from miles around moved to that county in a race to the bottom. The wonderful story is, that despite unintended consequences that may be included in the letter of a gift like this, if it's given through a community foundation the spirit becomes just as important, if not more important, than the letter. And when you see those unintended consequences crop up, you can tweak the gift to make sure that the spirit of the gift is protected.
I
Interviewer4:45
So you started out as a volunteer? Is that how you got, after you came back to Ida and said, 'Boy this is great! What can we do?' then what happened?
T
Thomas Frist4:57
Well, yeah I started out as volunteer and she had been talking to wonderful people like Elizabeth Queener and like Alyne Massey, who had seen what the community foundation concept was doing in Palm Beach. Betty Brown had seen what the community foundation was doing in in Louisville. Judy Liff had seen what the community foundation was doing in other places. We were the last city of any size to get one of these, so there was plenty of wonderful success to draw on. Um, but Ida had been talking about this for years! And had gotten a lot of people interested, but no fool rushed in where angels dared not tread, and I guess I was that fool. But yes, I did start out as a volunteer for the first two and a half years, the foundation's office were in my garage. But we had our first official organizational meeting at what was then Commerce Union I guess. Barbara Chazin and Bob Shell were nice enough to have a luncheon where Ida and Alyne and Ben Rechter and George Bullard and a bunch of other people helped us coalesce a group of 40 philanthropists. 40 civic leaders who we thought we needed to bounce this idea off of. Jim Fry who was the chairman of the board of the Memphis Community Foundation, and Git Smith who was the executive director in Memphis and Alicia Phillip, who was the executive director in Atlanta, all troop to Nashville to help us just lay the idea out for people. And this was the luncheon that Ted Lazenby talked to me about? And this is the luncheon where where among the attendees was Ted Lazenby and he happened to mention to someone he was sitting next to at lunch that, uh, he had just sold his business and was looking for a project, or a new business to start and the light bulb went off. And so we sat around and said you know he'd be a great initial founding chair.
T
Ted Lazenby7:03
The first involvement I had with The Community Foundation, was an invitation to a luncheon at the Commerce Union Bank building in the late 1980s. When the chairman of The Community Foundation of Atlanta came to speak. And, uh, the president of The Community Foundation of Memphis was a guest. And so they had a whole number of civic business leaders at this luncheon, and they explained the concept of the community foundation. Both the successes they had in Atlanta and Memphis. And it was a nice luncheon and I went away thinking 'That's a nice idea.' Uh Charlie Cook had discussed it at that luncheon saying that Nashville had tried to get one several years ago and couldn't get it off the ground. Ida Cooney, who ran the HCA Foundation, was a prime pusher for this, but they weren't able to get any traction. So, you know, all of that went away after luncheon, and I was sitting in my office and Dick Eskind asked to come see me. And I said, 'Sure come on in, Dick.' And he said, 'We want to start a community foundation in Nashville, and we'd like you to be the founding chairman.' Well, I was still working for the Provision Corporation in Louisville, but I was going back and forth and I, I did have free time. And I did have access to some offices and things like that, and I thought that all the years I'd been at National Life, I had been pretty focused on business, and not joined any of the civic clubs or the Chamber of Commerce or really had been involved in, in Nashville community affairs. And then when we founded South Life, I got somewhat involved, and I said, 'Well you know, let's take a look at this.' And Ida Cooney invited me out to HCA and her offices, and so she said, 'You really have to do this, and, and here's why.' And she gave me about seven or eight annual reports of various community foundations around the country. And I found out that this was a big nationwide group of organizations. And so I took several of these home and there was one that was very impressive to me. It was a community foundation annual report of Columbus, Ohio. Now Wechsler, who founded Limited, had put a lot of money into it, civic wise, had the headquarters building. But then they had little vignettes of people who had given to the community foundation. And there was one vignette about a lady who had been a clerk at Bank One all of her life. She had never married. And when she died she left The Community Foundation of Columbus, Ohio three-quarters of a million dollars. And so I started reading some of these human interest stories of people who had participated, and I said, 'You know, this is something that Nashville really ought to do.' We're the largest city in the whole United States that doesn't have a community foundation. So we put a board together and began our plans. We had several people come down speak to us, but we had no money. We didn't have any money for offices. In fact, we used my office's downtown. And we got started. We had a couple of people who gave us some money. And that's where it started!
I
Interviewer10:32
You mentioned there had been efforts before this one to try to get a community foundation started. What was different about this time as opposed, as opposed to the earlier period? Why did this one take root and happen, where perhaps the others had not quite gotten there?
T
Ted Lazenby10:49
Well, I don't know. I think there was some opposition on the part of people who had their own private foundations. And there were also some larger not-for-profit foundations, such as HCA, and i think at the earlier time, people felt like that there wasn't a need for a community foundation. They could take care of the deeds with private foundations, and some big corporate foundations. Plus, I have to say Ida Cooney was a driving force. She would not take no for an answer.
I
Interviewer11:26
How did you go about explaining it or educating the people that you talked about? The other private foundations, the others in town who might want to contribute that this was a good idea? Did it take showing them those annual reports like, like you saw or what was it?
T
Ted Lazenby11:41
Well first we got a good board together. Uh, we had Ben Rechter and we had Alyne Massey and we had, uh, Ida Cooney, we had, uh, Elizabeth Queener. We had Ellen, who was willing to work as a volunteer. And so really what we did was to go to these various people and explain to them that we were basically the savings account for this community. And a lot of other foundations, especially the United Way, was the checking account. I think the biggest breakthrough, was when the United Way realized that we were not competition, but we were an accompaniment to, to that. And that we complemented the United Way. It took a little doing because they felt like that they had their own endowment at the United Way. And, and why do they need another one? And, uh, HCA, uh, we got Tommy Frist involved, and I think the real breakthrough came when Tommy recognized that while HCA did a lot of good things it was a corporate foundation. And he persuaded his top executives, 30 or so, to contribute stock options. At that time they were getting ready to go public again and these gentlemen had stock options. So they contributed a certain amount of stock options to The Community Foundation those stock options increased greatly in value and Tommy gave a great deal of his own money to start it. So the real keystone were the several million dollars of money that these people had contributed based on their stock options. Each one of them had their own fund at The Community Foundation. And so that was a real good start.
I
Interviewer13:47
Quite frankly, uh, she had a tough sale. It was a six to twelve month sale at least to, uh, from the embryonic stage of an idea and what it could do for this community. She would bring back all the statistics on all the top 100 communities in this country and how many had community foundations and that Nashville was maybe one of two or three out of the top 100 communities. And we needed one. And, and she finally got through to a pretty, uh, severe critic, saying 'Do we really need this? There's so many demands for money.' And, and, and she was right. Why was it such a tough sell?
T
Thomas Frist14:19
Well, partly by my lack of understanding. And by my, I'm sure she was out lobbying other support people besides Tommy Frist, but HCA, that foundation had to be a key part of it if were going to go at that particular time in the early 80s in this community. And, and, uh, I saw so many demands on the charitable dollar. It was only when it finally got through to me that really, the they're not out, The Community Foundation is not out competing with other 501c3s that have their own fundraisers. They're it's there to complement them and really be a, uh, increasingly important supporter of those others and not another competitive uh, uh charitable organization.
I
Interviewer15:17
Now when you said she had to overcome a particular critic was that you?
T
Thomas Frist15:23
Well, I think not a critic, but a a, a doubting Thomas, and uh, and uh, she was she was absolutely right. Thank God that there was Ida Cooney at a particular time. She's the right woman in, the, right place at the right time. I think that that to this very day, uh, and going out into the future, it will be a, a constant, uh, opportunity, a continuous opportunity, before those of us who believe in The Community Foundation, to educate as broad a group of people within the community as we can. And that could be a new foundation, new sources of wealth. It could be, uh, the agencies themselves are frequently the beneficiaries of the largest of the, uh, The Community Foundation, and those that have contributed to it. But it also is important for people like me and others who feel they know The Community Foundation to constantly be challenging, 'How can I maximize the potential of it?' I'm finding each year that HCA Foundation, that the Frist Foundation the Frist Visual Arts Center and as an individual in my family, can find ways to be more effective in our charitable giving by working with and through The Community Foundation. And then have secondary goals and you don't even tell others, but what Alyne and the board over that Community Foundation, that early leadership, they exceeded any goals I set for it in my mind, uh, considerably, but, but I, uh, at least the ones I talked about. Maybe the ones in my mind I had some thoughts, but they've reached those two.
I
Interviewer17:13
We're ten years into the process. If you knew now, if you could have known then what you know now, what would, how would you, I mean has this exceeded all your expectations? As far as what would be capable of being done in the first 10 years of a foundation like this?
T
Thomas Frist17:30
Yes, yes, yes! Another way of putting it also is, if we didn't have a community foundation today, I would hope Ida Cooney would come back and, and light that spark in our minds, or someone like Ida Cooney, because if you didn't have a community foundation today, you would have to form one. Uh, this community is far better off today, uh, a decade and a half later, than it would have could have possibly been if there hadn't been a community foundation formed.