INDIANA GRANTMAKERS ALLIANCE C OMMUNITY F OUNDATION I NTERNSHIP O - PowerPoint PPT Presentation

A SIGNATURE PROGRAM OF INDIANA GRANTMAKERS ALLIANCE

C OMMUNITY F OUNDATION I NTERNSHIP O RIENTATION

I NTERN A GENDA - S EYMOUR 10:00 am Welcome & Introductions 10:30 am What is a Community Foundation? 11:00 am Ice Breaker Activity 10:30 am Lilly Endowment CFI Program 12:15 pm Lunch 1:00 pm Youth in Philanthropy 1:45 pm Internship Discussion 2:15 pm Interactive Exercise 2:45 pm Questions and Wrap-Up

CFI O RIENTATION C OMMUNITY F OUNDATION B ASICS

D EFINITION OF A U.S. C OMMUNITY F OUNDATION  Nonprofit, tax exempt  Goal of building permanent under section 501(c)3 component funds  Independent, non-sectarian  Benefits the residents of a governing body defined geographic area  Publicly supported by many  Supports broad-based unrelated donors charitable interests  Serves in leadership role on community issues

H ISTORY OF C OMMUNITY F OUNDATIONS  1914 - The first community foundation was established in Cleveland, Ohio. Within five years, community foundations formed in places like Indianapolis, Chicago, Boston, Milwaukee, and Minneapolis.  1969 - Tax Reform Act • private foundations becoming more strictly regulated • community foundations became a more attractive option  In the 1990s, commercial financial services firms, such as Schwab, Fidelity and Vanguard, began to offer donor- advised funds.  1990s-today – increasing emphasis on CF role in community leadership  There are over 800 community foundations in the United States and about 1,400 existing around the world.

GIFT H ISTORY  Philosophy of GIFT by Lilly Endowment Inc.  Wants to serve Indiana  Believes in local decision making – wants philanthropic partners  Builds civic participation  Few community foundations in state  Grows philanthropy

GIFT H ISTORY  Establish permanent charitable assets across Indiana  Support local communities and build civic participation  Series of 5 grant phases over first several years; Phase VI announced in 2014  Additional programs – Taking Stock, CAPE, SRD, interns  Unique program in community foundation world  Currently Indiana has 75 legal entities covering all counties in Indiana  All Indiana CFs - Over $2.7 billion in assets

GIFT H ISTORY  Unique elements of GIFT and Indiana’s community foundations • Commitment of the funder to “stay the course” • Commitment of the community foundations to collaborate • Consistency of training as needs and times change • Support from GIFT staff

I NDIANA C OMMUNITY F OUNDATIONS

P ROVIDED BY CF I NSIGHTS

C OMMUNITY F OUNDATIONS – T HE R EALLY B IG P ICTURE GOVERNING BOARD Sets Goals, Direction, Policy STAFF Implementation, Operations GIFTS come in GIFTS are placed into DONORS INVESTMENTS PAYOUT/DISTRIBUTIONS different forms a FUND  Unrestricted  Investment  Grants for charitable  Individuals  Cash  Donor Advised Policy activities  Corporations  Appreciated  Field of Interest  Spending Policy  Administrative fees to  Private foundations Securities  Designated support CF operating  Charitable  Real Estate  Scholarship budget organizations  Closely held  Agency securities  Personal property  Life insurance  Retirement assets  Wills and bequests Community Funds are governed These are community foundation by the FUND Fulfilling DONOR INTENT foundation ASSETS FISCAL AGREEMENT RESPONSIBILITY Through this activity, a community foundation gains connections, visibility, knowledge, creditability, influence and resources to provide COMMUNITY LEADERSHIP

I T ’ S A LL A BOUT S TEWARDSHIP Stewardship defined: the he car areful ul an and responsibl nsible man anag agement ement an and pr protectio ection of s somethin ething consider idered ed wort rth car aring for an and prese serving rving What are we “stewarding”?  Finances  Relations with donors  Grants “We ar are al all just temp mporary ary stew ewar ards ds of a an extraor aordina dinary ry commun unit ity asset.” Ken Gladish, Former President Central Indiana Community Foundation

N ATIONAL S TANDARDS FOR C OMMUNITY F OUNDATIONS The National Standards include:  Definition of a U.S. Community Foundation And standards in each of these categories:  Mission, Structure and Governance  Resource Development  Stewardship and Accountability  Grantmaking and Community Leadership  Donor Relations  Communications

W HY IS A C OMMUNITY F OUNDATION DIFFERENT FROM OTHER CHARITABLE ORGANIZATIONS ? A Community Foundation Has Three Distinct Features

C OMMUNITY F OUNDATION R OLES PERMANENT ENDOWMENT BUILDING  Develop relationships with donors  Invest and protect the principal of donor gifts  Distribute earnings from these gifts based on charitable intent of the donor BROAD, FLEXIBLE GRANTMAKING  Understand community needs  Re-direct charitable dollars over time and as community needs change  Can be proactive or responsive COMMUNITY LEADER  Many different ways to play a leadership role

CFI O RIENTATION P ERMANENT E NDOWMENT

E NDOWMENT B UILDING OR F UNDRAISING ?  Long-term rather than immediate  Based on donor interest rather than organization’s program  Few gifts, generally large, rather than numerous, small gifts  High use of planned and estate gifts rather than outright cash or occasionally securities  Often involves whole family rather than just one person  Builds gifts into ever-growing pool of permanent funds rather than starts over every year

E NDOWMENT B UILDING  Donors can gain maximum tax advantages using various types of gifts: Cash Appreciated Stock/Bonds Real Property Bequests  Donors are involved in directing how their funds support charitable organizations by establishing one of the following fund types: Unrestricted Fund Field of Interest Fund Designated Fund Donor Advised Fund Scholarship Fund Agency Fund

E NDOWMENT B UILDING More of an OFFER than an ASK NFP Fundraising VS CF Asset Development Must convince a donor to give Offer to assist donor with fulfilling to its specific cause their charitable wishes or legacy Annual appeals, continually Building long-term relationships asking Lots of events Small, intimate gatherings Relationship management Stewardship and service

CFI O RIENTATION G RANTMAKING

B ROAD , F LEXIBLE G RANTMAKING The Community Foundation is knowledgeable about local community resources and needs. Areas of interest include:  Arts and Culture  Civic and Historical Affairs  Community Development  Education  Environment  Health and Human Services  Recreation

B ROAD , F LEXIBLE G RANTMAKING Community Foundations :  Monitor community needs and leverage other resources to maximize impact of grant dollars  Can help to strengthen existing or bring new and innovative charitable organizations into existence  Have the ability to re-direct charitable dollars over time and as community needs change  Proactive vs. Reactive grantmaking

B ROAD , F LEXIBLE G RANTMAKING  Community foundation “responds” to community requests  Open process, broad criteria  Keep foundation connected to their communit y  Community foundation decides in advance the type of grants it wishes to make; narrow criteria  Typically uses an RFP or other invitation

C OMMUNITY P ROJECT F UNDS  A group of individuals determine a solution to a community need (grassroots project)  The group does not have 501 (c)(3) status  They want to use the community foundation as an umbrella for donors to make charitable gifts  Fund agreement required, stating charitable purpose or program  Can be a one-time project or a new program  Grants made to vendors for specific charitable purpose or program  Determine liability issues  Expenditure responsibility required  Community foundation is operating the program directly

CFI O RIENTATION C OMMUNITY L EADERSHIP

L EADERSHIP /C ATALYSTS FOR C HANGE  Charitable organizations exist in every community and each has its own mission  Community Foundations can gather various entities and voices to address a variety of critical issues  These gatherings can uncover and leverage resources, including finding individual donors who are interested in these same issues

L EVELS OF C OMMUNITY L EADERSHIP 1. Community engagement 2. Bridge for communication 3. Provide a product or service 4. Proactive grantmaking 5. Community convener 6. Community initiative

C OMMUNITY E NGAGEMENT  Participating in community activities and organized by other groups or institutions  Sponsor a community event or activit y  Easy to do  Everybody wants the CF “at the table” so be cautious about overextending  Good way to learn about community, forge relationships

B RIDGE FOR C OMMUNICATION  Bring together a few grantees with similar missions to create relationships  Fairly easy to do; not much risk  Do a little background work to make sure you are not walking into some bad history