Transcript Document
Organizational Endowments: Recruiting Agency Endowments, Pitfalls, and Approach Sunday, October 19, 2014 Kaye M. Ridolfi Senior Vice President of Advancement The Cleveland Foundation [email protected] 216.615.7141 Ginger F. Mlakar Senior Counsel & Director, Donor Relations The Cleveland Foundation [email protected] 216.615.7187 Kristin Warzocha Vice President of External Affairs The Greater Cleveland Food Bank [email protected] 216.738.2064 Agenda • Introduction • Establishing and Growing an Organizational Fund • Benefits and Challenges • Organizational Partner Perspective What is an Organizational Fund? • Contractual arrangement between the foundation and a IRC Section 501 (c)(3) organization • Established as either an agency account, fully accessible at any time for any reason by your Board, or as a true endowment • Can be effectively combined with your efforts to build endowment or reserve funds additional contributions of any size can be made at any time with full tax advantages 3 Establishing an Organizational Fund Seed Money 6 Agreement Partnership Fund Fund Growth Growth Investment Growth Additional Contributions Distribution Seed Money 5 Nationwide Data Summary ► Data Sources: ● CF Insights Benchmark Data: http://cfinsights.org/Tools/BenchmarkingCustomReports.aspx. Approximately 240 organizations actively update data ● Individual foundation websites, annual reports or other publications ● Columbus Survey 2013 (For total foundation assets) ► Foundations focused on: ● From CF Insights focused on organizations listing endowment/agency data of $30 million or higher ● And/or top 20 foundations by total assets ► Findings: ● CF Insights shows 100+ organizations with organizational fund assets of $1 million or higher ● The foundation with largest assets found was Oklahoma City ~$165 Million, 300+ funds ● Cleveland Foundation Org Fund Assets = >$94 Million and 195+ funds. Fund sizes range from $10,000 to $40 million (Deaconess) Benefits to an Organization Planned Giving • Helps sustain a nonprofit organization’s financial stability over the long-term • Broadens donor giving possibilities • Opportunity available to diverse group of potential contributors Benefits to an Organization Leveraging Expertise • Assigned donor relations staff person • Being part of nearly 200 non-profit partners making a difference in Greater Cleveland • Maximize long-term returns by contributing to larger investment pools exposed to the market • Customized service Benefits to an Organization Increase in Options • Acceptance of private stock, real estate and other unique assets • Direct Giving through Cleveland Foundation website • Educational forums • Fund Marketing Planned gift presentation and calculations Website Brochure Benefits to an Organization Financial Stewardship Recordkeeping Gift Acknowledgements to donors Investment Oversight Access to Online Service Summary of Partnership Opportunities *build endowment funds that grow and benefit our community forever. *offer donor involvement and help donors create an individual or family legacy. *local organization meeting a broad range of changing local needs. *provide a simple way to fulfill charitable interests, with low-cost administration. *deliver personalized donor service that is flexible and responsive to unique needs. *accept a wide variety of assets. *offer maximum tax advantage. *preserve donor intent even when community needs and organizations change. *known for prudent stewardship and investment practices. *offer full disclosure and transparency. Challenges • Competition • Other providers • Resistance to change • Fees • Profitability • Increased staff time • Agency vs. endowment funds Organizational Partner Perspective Greater Cleveland Food Bank Organizational Partner Perspective Greater Cleveland Food Bank Who Are We? • Founded in 1979; Currently 100+ employees, $20 million budget • Programs include mobile pantries, children’s nutrition initiative, summer food service, and SNAP outreach. • Coordinates annual Harvest for Hunger campaign • Largest hunger relief organization in Northeast Ohio; Serving six counties – Cuyahoga, Lake, Geauga, Ashtabula, Richland, and Ashland • Provided access to nearly 45 million meals in 2014 through more than 750 partner agencies Organizational Partner Perspective Greater Cleveland Food Bank Why we affiliate with the Cleveland Foundation: • Financial management expertise and guidance • Planned giving and marketing services • Reputation Organizational Partner Perspective Greater Cleveland Food Bank What has happened since: Endowment Growth 2008 $229,002 2009 $243,222 2010 $344,696 2011 $440,356 2012 $444,161 2013 $606,119 2014 $965,919 (as of 6/30/2014) Organizational Partner Perspective Greater Cleveland Food Bank What has happened since: Growth of Tomorrow’s Harvest Legacy Society Currently 75 members (46 living, 29 deceased) More than $600,000* in realized planned gifts in FY14 (*includes single estate gift of more than $500,000) Questions?