History of Community History of Community FoundationsFoundations

First one established in Cleveland in 1914 by banker Frederick Goff

Devised as a way to keep charitable trusts in use for the community long after donors passed away

Grew to about 300 by the early 1990’s, then expanded rapidly

Currently have more than 700 nation-wide with assets totaling over $44 billion

California has 69 established community foundations with total assets more than $5 billion

SLOCCF Board 2011SLOCCF Board 2011

MissionMission

The San Luis Obispo County Community

Foundation is a public trust established to

assist donors in building an enduring source

of charitable funds to meet the changing needs

and interests of the community.

VisionVision

As residents of San Luis Obispo County, we

are a thriving, engaged society that is

responsible for ourselves and for one another,

for our diverse communities, and for

maintaining the beauty, productivity, and

sustainability of our environment.

Foundation GoalsFoundation Goals

$4 million in Leadership Fund, $2 million in Community Needs Fund

Effective grantmakers

Promoting local philanthropy

Our approach so farOur approach so far

Thoughtful & carefully plannedEarly use of consultantsAccess state-wide and national resourcesNot competing with local nonprofits

Marketing the Community Marketing the Community FoundationFoundation

Primarily one-on-one discussions with people of wealth or community movers & shakers

Specifically, at the professional advising community: one-on-one meetings, presentations to firms, professional associations

One newsletter per year Annual report Speaking to local service organizations and community

groups Press releases Retained Verdin Marketing Ink in 2003

Board StructureBoard Structure

Maximum of 15 members, self-perpetuating Representative of all major geographical

parts of the CountyTerms are three years in length; can serve

no more than 10 consecutive years then must be off the board for five years

Officers are President, Vice President, Secretary and Treasurer

Board structure Board structure cont.cont.

Elected at annual meeting in January, but President generally serves for two years and the V.P is the de-facto president elect

No compensation, except for re-imbursement for legitimate expenses

Board meets first Wednesday of every month

BOARD MEMBER’SBOARD MEMBER’S LEGAL OBLIGATIONS: LEGAL OBLIGATIONS:

Duty of Care – exercising best judgment when making decisions (reasonable caution). Duty of care demands active participation and thoughtful attention (learning about programs, attending meetings, participating in discussions, making sure you obtain the necessary information to ask questions).

LEGAL OBLIGATIONSLEGAL OBLIGATIONS

Duty of Loyalty – putting aside personal and professional interests for the good of the organization. You are expected to focus exclusively on what’s best for the foundation. A conflict-of-interest policy, signed annually by each board member, is one way to ensure this duty of loyalty.

LEGAL OBLIGATIONSLEGAL OBLIGATIONS

Duty of Obedience – means ensuring that the foundation stays true to its mission and purpose – overseeing distribution of funds and monitoring compliance with all applicable laws and regulations.

Minimum Board Minimum Board ResponsibilitiesResponsibilities

Attend meetings and eventsServe on at least one committeeFormally introduce the Foundation to a

minimum of three people per year Make a meaningful contribution of

whatever size to the Board of Directors Fund annually

StaffStaff Executive Director: (1.0 FTE) Overall management of

foundation, primarily asset development and finance Director of Grants & Programs: (.875 FTE) Supervision of

all grants, scholarships & program-related activities. Scholarship Program Associate: (.5 FTE) Oversees and

promotes all scholarships; provides some donor services. Donor Services Associate: (.5 FTE) Coordinates donor

services. Finance Manager: (.5 FTE) All business functions including

disbursements, accounting, deposits and monthly reconciliations, as well as human resources

Finance Assistant (.5) Office Manager: (1.0 FTE) Administrative support to staff,

gift processing & acknowledgments Total FTE = 4.875

CommitteesCommitteesStanding Committees

Development: Design overall asset acquisition plan for foundation.

Grants: Design and structure grantmaking program, recommend strategic initiatives.

Finance & Investment: Develop investment policies and oversee investments. Supervise outside investment manager.

Administration & Personnel: Personnel, governance issues. Also serves as nominating committee.

Audit: Work with auditor, plan and review audit.

Scholarship: Oversee Scholarship Funds.

Visibility and Marketing: Develop marketing and communications plans and materials.

Committees Committees cont.cont.Ad hoc Committees:

Women’s Legacy Fund Work to develop and oversee the growth of this fund which is held at SLOCCF

Growing Together Fund Advisory CommitteePartnership of representatives from different groups to identify and support the needs of lesbian, gay, bisexual, and transgendered community

Children’s Health Initiative Committee A board representative attends committee meetings of this countywide group ensuring health insurance coverage for all the children in the county

TEACh CommitteeSupports the educational experience of students in the San Luis Coastal Unified School District.

State & National ContextState & National Context

All community foundations are locally governed and controlled

Nationally, members of the Council on Foundations, which represents all 62,000 foundations – private, family, operating, community & corporate

Annual meeting for 700 community foundations, usually in the fall. Board urged to attend.

This year’s meeting will be September 19-21, in San Francisco

State & National Context State & National Context cont.cont.

We are active members in the League of California Community Foundations

Meets twice per year, including Board Chair/CEO retreat

Also conducts workshops, trainings and assistance

Local ContextLocal Context

Initiative of Foundation for Community Design

Established in 1998, 11-member Board of Directors

Opened doors in 1999, hired staffSecured operational grants from Irvine &

Packard Foundations for FY 2000-2011

Accomplishments to dateAccomplishments to date

100% Board contributions 1999-2010 $30+ million in assets, ~$27 million endowed Developed over 200 various funds Distributed over $16 million in grants since 2000 Created Real Estate Foundation of San Luis

Obispo Licensed to offer Charitable Gift Annuities

Growth of the EndowmentGrowth of the Endowment

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

19981999

20002001

20022004

20052006

20072008

20092010

Number of FundsNumber of Funds

0

50

100

150

200

250

New Funds

Current Funds

8

38

73102

128

211

162

189

Grantmaking 2000 -2010

Arts24.2%Health

17.1%

Recreation0.5%

Community Enhancement

12.1%Human Services

16.5% Education18.6%Faith-Based

2.3%

Environment2.2%

Historical0.4%

Scholarships6.1%

Total grants: $15,850,680

Strategies for Building the Strategies for Building the EndowmentEndowment

One-on-one meetings with donors – Board contacts

Professional advisor meetings and workshopsPublic Relations – video, cable PSAs, press

releases, newsletters, annual reportDemonstrate foundation impact through

grants provided, grantee receptionsPromoting local philanthropy

What challenges lie aheadWhat challenges lie ahead

Find new avenues to potential donors/fund holders

Build unrestricted endowment to continue strengthening local nonprofits

Fund foundation operations beginning in 2011 until sustainability

What steps have we taken?What steps have we taken?

Leadership FundBridge FundIncreasing the Community Needs Fund

Grants & ProgramsGrants & Programs

Janice Fong Wolf, Director of Grants & Programs

Lee Hollister, Committee Chair

Three types of grantmaking:

•Small responsive grants

•Strategic Grant Initiatives

•Donor-Advised Grants

Strategic FrameworkStrategic Framework

Demonstrate to donors the Foundation’s past effectiveness with grants

Demonstrate to donors existing needs in the community

Tie grantmaking with development committee via shared members

Target areas to fund with larger grants, but maintain the Foundation’s reputation for diversity of funding from Arts to the Zoo

General Grants ProgramGeneral Grants Program

Proposals accepted once per yearFive funding areas: Arts, Community

Enhancement, Education, Health, Human Services

Maximum grant amount $10,000Organizational Strengthening/Capacity

Building PriorityCore Operating

Strategic Grant InitiativesStrategic Grant Initiatives

Raising a Reader FundPathways to Adulthood InitiativeGrowing Together FundWomen’s Legacy FundArt Inspires!

Focused grantmaking with deeper grantee engagement & larger grant amounts

Donor-Advised GrantmakingDonor-Advised Grantmaking

Due DiligenceAssist with NPO researchFacilitate proposals from organizations

ProgramsPrograms

Isabel P. Ruiz Humanitarian AwardPaul Wolff Accessibility Advocacy AwardScholarship programs

Nonprofit StrengtheningNonprofit Strengthening

Data Collection/Dissemination: ACTION for Healthy Communities, GTI Community Scan, Focus Groups, SLO County Hunger Study, Obesity Task Force, Status of Women/Girls

Convene NPO by service type, i.e. Food Distribution providers, Animal Welfare providers

Nonprofit management workshops Initiated Executive Directors Roundtable Bi-weekly column in Tribune Business Section

Financial Accounting & Financial Accounting & InvestmentsInvestments

Investments

• Finance & Investment Committee, Bill Raver, Treasurer and Chair

• UBS Golden Gate Institutional Consulting

Accounting/Bookkeeping

• Holly Corbett, Director of Finance

• Michelle Romonek, Finance Assistant

• Kim Ramos, Office Manager

FIMS - Foundation Information FIMS - Foundation Information Management SystemManagement System

Bookkeeping at the Bookkeeping at the Community FoundationCommunity Foundation

Double entry; accrual basis;

fiscal year = calendar yearAudited annually by CaliberFunds and fund accounting

Donor-created FundsDonor-created Funds

158 Endowed Funds– Original gifts are never used (“principal is never invaded”)– The earnings on the invested principal increases the fund and is

used for granting, fees, etc.– Annually 4.5% of the average balance for the last three years is

made available for grants (individual fund agreements may vary)

51 Pass-through Funds– All gifts are distributed within a year– Interest is income for SLOCCF Operating Fund

Board Created FundsBoard Created Funds

SLOCCF Operating Fund

Endowed Board Funds Leadership Fund Community Needs Fund

Pass-through Board Funds Board of Directors Fund Bridge Fund Operating Reserve Fund Restricted Gifts Fund Grants Fund Executive Director’s

Discretionary Fund

Sample Financial StatementsSample Financial Statements

Statement of Fund Activity– “Fund Statement”

Statement of Financial Position– “Balance Sheet”

Operating Fund Budget Comparison– “Income Statement with Budget”

Statement of Fund ActivityStatement of Fund Activity

Statement of Financial PositionStatement of Financial Position

Operating Fund Budget ComparisonOperating Fund Budget Comparison

Investing Foundation AssetsInvesting Foundation Assets

UBS Golden Gate Institutional Consulting - Kevin Sanchez & Brian Sharpes, investment consultants

Overseen by Finance & Investment Committee Investment Policy calls for a balanced portfolio Emphasis on asset diversification ~ 60% equities, 40% fixed income Long-term investment horizon: goal 8-10% return

per year