Creating Partnerships with Professional Advisors Creating Partnerships with Professional Advisors A community foundation presentation to APTI October 7, 2009

© 2002 Council on Foundations and Community Foundations of America 1914 First U.S. community foundation established in Cleveland, Ohio today Now almost 1,500 community foundations in 51 countries across the world. Leading the world growth in philanthropy › More than €40 billion in assets › Serving citizens across the world › More than €2 billion in local grants each year › And growing! 2000 Community Foundation for Ireland established foundation facts A brief history

© 2002 Council on Foundations and Community Foundations of America Professional advisors Setting up a fund at The Community Foundation for Ireland may be simpler and more appropriate than establishing a trust or private foundation CFI can provide anonymity Ideal for estate planning purposes as can be more strategic with one’s will County Funds offer a real alternative for people who want to make a difference locally and/or who would like to be seen as philanthropic innovators You can advise clients on major tax savings, both in Ireland and overseas One stop shop for your client’s charitable giving. Why work with community foundations

© 2002 Council on Foundations and Community Foundations of America What can we offer your clients? Vehicles: endowment (permanent) and flow-through. Tax advantage: reliefs on donations of cash or shares or CGT. Specific services for donors partnering with CFI Low fee structure – ideal for early stage philanthropists. Expertise and services: Grants officer, project assessment, feedback and reports. Help in introducing the topic and liaising with clients if requested.

© 2002 Council on Foundations and Community Foundations of America ›The Community Foundation for Ireland is never the object of one’s charity, it is the vehicle › Middleman role which brings with it independence and expertise › We want to support the key needs of the day › 39 separate fund holders at present › Cumulative grants of €5.5 million to date, Full details of all grants and investment performance on website – and in annual report foundation facts

© 2002 Council on Foundations and Community Foundations of America Opportunities Who among your clients?  Family Funds  Corporate Funds  Charity Funds  Religious Orders

Introduction to Endowments – Eamon Heffernan, Board member © 2002 Council on Foundations and Community Foundations of America

Endowment Funds Many similarities to traditional Pension Fund Permanent Independent Fund Assets held in trust Tax Exempt Long term focus Dividend/Interest Income more important in short term Professionally managed A new opportunity for clients

© 2002 Council on Foundations and Community Foundations of America The Community Foundation Endowment Established June 2001 Permanent, independent, civic Endowment Fund Designed to support sustainable grant making in community Initially single Unit Trust but Segregated since 2004 Managed as single Fund but each donor’s sub-fund identified Current (Sept ’09) Value €24.42million Grants only made from Fund’s investment income (other than in exceptional circumstances) Grants to Community Projects €5m (to date) – 455 grants totalling €984k in 2008 Manager AIBIM following review in 2008 Connecting people who care with causes that matter

© 2002 Council on Foundations and Community Foundations of America Investment Policy & Objectives Long Term Objectives –To generate annual income to facilitate grant making payments –To seek to protect real value of capital over longer term Investment Policy –To delegate management to professional managers –To build diversified asset portfolio –Bias towards income producing assets –To give Manager total discretion within broad guidelines and minimal constraints –To set specific performance objectives (All details Contained in Statement of Fund’s Investment Policy and Objectives) We’re better together

© 2002 Council on Foundations and Community Foundations of America Investment Policy & Objectives ctd Minimum %Maximum % Cash 0% 30% Bonds 35% 65% Equities 35% 65% Some Constraints No property/venture capital/unlisted/hedge funds etc. Not more than 5% in any one share Corporate Bonds not more than 50% - confined to A- or better No investments in specified industries (tobacco, pornography, nuclear/armaments) Performance Objective Annual % income not less than 75% of yield on Gov’t stocks Underlying capital increases in line with CPI, over longer term

© 2002 Council on Foundations and Community Foundations of America Performance Statistics YTD Income4.5% 3.8% 4.3% 4.6% 2.0% Capital11.0% 2.4% (3.2%) (20.0%) 5.7% Total15.5% 6.2% 1.1% (15.4%) 7.7% Avg Pension 21.0% 13.0% (3.8%) (34.8%) - Managed Fund

© 2002 Council on Foundations and Community Foundations of America Asset Distribution & Equity Exposures (including Cash Fund) 30 September 2009 Cash15.6% Bonds34.3% Equities50.1%

© 2002 Council on Foundations and Community Foundations of America Admin & Governance Trustees – Board of The Community Foundation Operation governed by Memo & Articles of Assoc. Management Committee – The Community Foundation’s FAIG Committee meets with AIBIM on regular basis to review performance Fund audited as part of The Community Foundation’s audit Yearly Investment Report to donors (on web site) Investment Manager fees and charges – c. 35bps CFI admin fee – not more than 1%pa deducted from Fund income

© 2002 Council on Foundations and Community Foundations of America Eamonn Heffernan, Board Member Niall O’Sullivan, Head of Fund Development 32 Lower O’Connell Street, Dublin 1 Tel: Fax: Charity No. CHY Connecting people who care with causes that matter Thank you!