August 27, 2015

Board Orientation

Welcome and introductions

Welcome Self introductions

• A few minutes about you, family, interests, and your role(s) outside of CCF

• Previous board members, please add your role(s) at CCF

Any past connection to CCF or foundations

Introduce Staff

Soula Bantsolas, Donor Relations Susan Barnes, Scholarships/WGC/BOD Mary Anne Brooks, CFO Darryl Childers, Community Relations Robin DePew*, Office Manager Mary Holmes, Executive Director Marie Milton, Finance Services Kimmi Nettles*, Program Assistant *Part time

Agenda

Welcome and introductions Review agenda What is a community foundation? Development of the field Who is involved (board, alumni, staff,

partners)

Agenda

Overview of CCF •History•Milestones•Mission statement•Priority impact areas• 2020 development plan•Key programs

Agenda

Responsibilities (board duties, CCF roles, committee structure, charters & timelines)

Legal framework (articles, bylaws, NCCNP checklist, D&O insurance, selected policies)

Stewardship and controls

Agenda

Growing the foundation Board operations (meeting notices,

meeting schedule and format, governance calendar, key dates)

Maximizing the experience Q&A

Board Manual

Available online

via board section

of website

cumberlandcf.org

Bottom right corner

What is a community foundation?

We raise moneyWe keep track of itWe invest itWe make grants according to

donor intent to make life better here for everyone

What is a community foundation?

Definition from the National Standards for US Community Foundations: A community foundation is a tax-exempt, nonprofit,

autonomous, nonsectarian philanthropic institution supported by the public with the long-term goals of:

Building permanent, component funds established by many separate donors to carry out their charitable interests;

Supporting the broad-based charitable interests and benefitting the residents of a defined geographic area, typically no larger than a state; and

Serving in leadership roles on important community issues.

What is a community foundation?

Characteristics• Charitable organization 501(c)(3)• Public foundation (not private) 509(a)1 and

170(b)(1)(a)(6)• Serves defined geographic area• Variance power to modify terms if charitable

purpose becomes obsolete or inconsistent with the needs of community

What is a community foundation?

Grantmaker / source of fundsA community savings accountA resource gatherer for our

communityA service for giversEndowment manager

What is a community foundation?

Technical support for nonprofits Trainer Sustainability coach / nonprofit

endowment builder Knowledge broker Neutral community convener Change agent

What is a community foundation?

From the donor’s perspective - video CCF donor stories (website and

YouTube)• Terri Thomas – every gift matters• Elaine Bryant Hayes – supporting the arts

forever• Scott McFadyen – involving his family in

giving

What is a community foundation?

View videos

from donor tab

on website

or YouTube

channel from the

Home page.

Share with a friend!

Advice for new board members

Reflections by board members• Why I am involved with Cumberland

Community Foundation• What a new board member needs to know

How to make a difference• Prepare and engage• Be an ambassador• Talk about CCF

Development of the field

In the beginning - Video First community foundation – 1914 The

Cleveland Foundation First in North Carolina – 1919

The Winston-Salem Foundation More than 700 in the country Building philanthropy in geographic area,

most often through endowments

Who is involved at CCF?

Current board (contact list and board terms on website)

Board alumni (handout) Staff (bios on website) Stakeholders – volunteers, donors,

grantees, nonprofit organizations, citizens, interest groups, change agents, community leaders, vendors …

Overview of CCF - History

Founded in 1980 by Dr. Lucile Hutaff One of 700 community foundations in the

country 450+ named funds set up by donors All funds together > $72 million (6/30/15) Grants paid annually ~$3.5 million $41 million paid to charity since 1980

Overview of CCF - Milestones

1980 – 1988: Started grantmaking; limited development outreach • 1984 granted $250,000 for site of main library downtown

1988: Board attended COF Fall Conference for Community Foundations • Catalyst for growth

1990: Hired first professional staff• Established endowment building program with

emphasis on unrestricted assets • Opened grantmaking process to community

Overview of CCF - Milestones

1990 – 1996: “Family Fund” campaign for unrestricted endowments• Unique characteristic of CCF

1997 - 2005: Emphasis on asset development and operational standards

October 2005: Two goals – improve grantmaking and grow grantmaking budget• Shift in grantmaking for impact (funder versus

investor)• Quiet campaign to build $6 million in new

Community Funds

Overview of CCF - Milestones February 2006: 25th anniversary event,

announced goal, continued fundraising and raised $9 million by end of 2010

2007: Launched outreach to new groups of volunteers and donors through giving circle initiative• EE Smith Academic Excellence Giving Circle• Women’s Giving Circle of Fayetteville

2008 - 2010: Economic downturn• Continued learning and improving grantmaking• Severe cuts in operating budget and sharp

reduction in grant budgets

Overview of CCF - Milestones

2010 – 2011 our board considered:• What are the greatest needs in the

community?• What is our unique role?

Building endowment and improving the community through our grantmaking

2020 Development Plan: reach $100 million in assets by 2020

Overview of CCF - Milestones

Fall 2011 received $10 million bequest from Robert H. Short as addition to Community Scholarship Endowment

“Game changer” for local colleges $530,000 for academic year 2015/16

(Year 3 of 5) Selections done by the colleges

Overview of CCF - Milestones

2012 / 2013: Nonprofit Endowment Workshop Series

2014: Adopted new mission statement 2014 – 2015: Launched 2020

ambassadors program Spring 2015: Grantmaking retreat

developed six priority impact areas

Plans for 2015 - 2016

Development - Just do it• We know what works • Time to implement

Reaching out• Grantmaking - Reach out beyond Fayetteville

into municipalities• Development – Reconnecting with old friends

and finding new friends

Mission Statement

Giving together to enhance the quality and spirit of community life.Adopted 2014Background

Values - Stewardship

Stewardship of resources• By foundation - efficiency, oversight, audit,

standards, accountability, transparency, adherence to donor intent

• By grantees – return on investment; adherence to donor intent

Stewardship includes:• Legal compliance• Integrity • Efficiency

• Sustainability

Values – Impact and inclusion

Community transformation through endowment building – “Wealth changer”

“Community” – Inclusion of our diverse community of people, organizations, issues, and geography

Giving at all levels by everyone• 80% of gifts received since 1980 under $250• Giving time, talent, and treasure

Six Priority Impact Areas:2016-2020

Growing sustainable support for local nonprofit organizations

Growing philanthropy and local giving Increasing college access and

affordability Improving education outcomes Improving quality of life for all Strengthening local nonprofit

organizations

Six Priority Impact Areas:2016-2020

Review in detail on website to understand the programs we will discuss throughout the year

www.cumberlandcf.org• Click on Grants across the top

• Click on Community Grant Impact Areas

2020 Development Plan

Adopted in May 2011 Focused on endowment building and sustainability

• Growth in all fund types• Emphasis on designated endowments• Sustainable growth / emphasis on designated

endowments supports business model “2020 Ambassadors” are volunteers who sign up to

help a specific nonprofit organization ask for endowment and planned gifts

Key Programs Community Grants (CCF receives

applications) Nonprofit sustainability (part of 2020

Development Plan)• Lilly Endowment Challenge (matching program)

• Endowment partner operating grants

• Endowment building training

• Planned giving training Summertime Kids Grants

Key Programs Education grants Scholarship awards Women’s Giving Circle Special project fundraising

• One Million Pounds for Second Harvest (Feb/Mar) Nonprofit training Mary Lynn McCree Bryan Nonprofit

Leadership Award

Example Community Grants – Start up funding

Airborne & Special Ops Museum Ashton Woods Transitional Housing Cape Fear Botanical Garden The CARE Clinic Cape Fear Regional Theatre Youth

Studio

Example Community Grants – Start up funding

FSO Youth Orchestra NC Civil War History Center CommuniCare/ Juvenile Assessment

Center Fayetteville State University Endowment Child Advocacy Center CEED (The Women’s Center)

Example Community Grants Capital funding for major arts /

recreational / educational projects:• Museum of the Cape Fear • Cape Fear Botanical Garden • Purchase of downtown site for Main Library

“Re-start” for: • Coordinating Council on Older Adults • Better Health of Cumberland County• Fayetteville Animal Protection Society • Fayetteville Symphony Orchestra• Vision Resource Center

Community Grants - Recent

Information on recent grants and grants in progress are always available on the website on the GRANTS tab

Responsibilities of the board

Handouts for review - Ten Basic Responsibilities of Nonprofit

Boards (BoardSource 2015) Statement of Board Roles & Responsibilities

(CCF 1999) Memorandum by Dianne Chipps Bailey,

Robinson Bradshaw & Hinson (2008) 2014 Legal Compliance Checklist - NC

Center for Nonprofits

Responsibilities - Committee structure

Executive committee Finance & stewardship committee Investment committee Audit committee (new) Governance committee Community impact committee Ad hoc teams and grant teams (ex

Scholarship)

Responsibilities - Committee structure

Each committee has a volunteer chair Most have an assigned staff member Chair and staff work together to

develop agenda for each meeting• According to committee charter and timeline• According to board delegated duties• Coordinated with other work of CCF

Staff takes minutes for review by chair before sending out

Responsibilities - Committee structure

Example grant teams include: Scholarship selection Education grants Robert H Short Scholars Women’s Giving Circle

Responsibilities - Committee structure

Example ad hoc project teams: Mission statement project Summertime Kids program evaluation Buildings and technology project 35th anniversary planning

Responsibilities – National Standards

National Standards for US Community Foundation

Accreditation represents operational effectiveness to foster excellence in community philanthropy

Good for five years CCF up for reaccreditation in 2016

Responsibilities – National Standards

National Standards website provides support

www.cfstandards.org Sample policies – Click here List of standards on CCF board

webpage 2015/2016 process for CCF

Responsibilities - Staff

Professional staff (bios on website) Staff operates the foundation, implements

goals of the board, supports committees All report to executive director Executive director reports to board Board president leads the board Board president and executive director

partnership

Legal framework

Articles of incorporation/addendum, bylaws Legal Compliance Checklist - NC Center for

Nonprofits Directors & Officers Liability Insurance Policies of the board (conflict of interest,

confidentiality, media policy, whistleblower, document destruction, employee handbook…)

CCF Real Estate Foundation (T1 supporting organization)

Stewardship and controls

Trust is the big word says past president and long time board member, Dr. Loleta Wood Foster

Stewardship emphasized at every meeting Board approved financial reporting system Systems in place include:

• National Standards for US Community Foundations• Financial audit by Haigh, Byrd, & Lambert• Oversight by treasurer, audit and finance committees• Budget vs actual reporting, extensive internal controls

Stewardship and controls

Cash budgets: building budget, operating budget, grants budget

Developed with board and staff input Line by line walk through of budget before

adoption November meeting includes a detailed

review of internal controls and management letter

Community foundation fundraising Endowments – self sustaining and give back to the

community every year, forever Short term special projects – Sandhills State

Veterans Cemetery Fund, One Million Pounds for Second Harvest

100% to the fund or cause designated by the donor People give by check, online credit card, transfer of

stocks, real estate During life or through estate / gift in will or by a

charitable remainder trust / charitable lead trust

Who gives to community foundations?

Giving USA 88% of charitable gifts made in the US

come from individuals or their estates CCF focuses on individuals Give now and/or give later:

• Any amount to an existing fund• Start a new fund

Donor centered fundraising

Growing the community foundation – a role for everyone

identify

involve

warm up

ask

followup

thank

Ways to help grow CCF

# 1 - Stewardship and integrity Share communications

• Share Guide to Giving booklet• Like/Share Facebook posts• Forward emails from staff with subject line

“Good news to share”• Talk about CCF “I learned something

interesting today at CCF…” Bring someone to a site visit or event

Ways to grow CCF - Identify Who gives every year to [insert nonprofit

org name here] and may continue that support

Who has a large taxable event (tell about Donor Advised Fund)

Who has might like to support a cause forever

Who has appreciated assets and would like to diversify/grow income (CRT)

Growing the community foundation - Involve

Opening doors to:• Professional advisors – Attorneys, accountants,

investment brokers, bankers, insurance brokers, estate planners

• Generous people in the community – Neighbors, colleagues, clubs/civic groups, friends, …

• Thought leaders History – 90% of donors who gave >$250K

referred by board member “Identify” and “Involve” and “Thank”

Maximizing your impact and experience on the board

Reflections by board members• Why does this work matter?• How can you make a difference in our

community through Cumberland Community Foundation?

How to make a difference• Prepare, engage, and lead• Be an ambassador and talk about CCF• Think long term about our community

Board operations and systems

Meeting dates – the third Thursday at noon Sept, Nov, Jan, Mar, May, June

Meeting notice:• 10 days prior – postcard reminder and/or email • 5 days prior – meeting packet (mailed or online)

Please RSVP “yes” or “no” every time Read meeting materials Format is less formal and usually decisions by

consensus Culture of inquiry / learning

Resources – We are not in this alone! 700+ community foundations across the USA Memberships:

• Council on Foundations www.cof.org• NC Network of Grantmakers www.ncgrantmakers.org• NC Center for Nonprofits www.ncnonprofits.org• BoardSource www.boardsource.org• Association of Fundraising Professionals

www.afpnet.org Associations

• Grantmakers for Education www.edfunders.org• Environmental Funders Network• Giving Circle Knowledge Center - Click

Q & A

Thank you!