Community Foundation – Element of Mining Company Community Legacy ? IFC, June 2006 Juraj Mesik Sr.Community Foundations Specialist, SDV

2 What are CFs ? Six Basic Characteristics 1. Mission is broadly defined (like „to improve quality of life in community“) 1. Mission is broadly defined (like „to improve quality of life in community“) 2. Geographically defined community 2. Geographically defined community 3. Grantmaking foundations (but many also do their own programs) 3. Grantmaking foundations (but many also do their own programs) 4. Broad range of donors - seek contributions from inside and outside of community 4. Broad range of donors - seek contributions from inside and outside of community 5. Governed by board reflecting community 5. Governed by board reflecting community 6. Builds endowment, element of perpetuity 6. Builds endowment, element of perpetuity 7. Independent registered legal entity 7. Independent registered legal entity

3 3 keys to sustainability: 1. Broad range of donors More donors – higher stability, more More donors – higher stability, more perspectives, more local ownership perspectives, more local ownership Large, middle, small; private as well as public; even “people of modest means” Large, middle, small; private as well as public; even “people of modest means” Donors = element of social capital: “fundraising is friend-raising” Donors = element of social capital: “fundraising is friend-raising” “Funding pyramid” O “Funding pyramid” O ooo ooo ***** *****..:::::::::::....:::::::::::..

4 3 keys to sustainability: 2. Builds endowment Capital invested, revenues used Capital invested, revenues used Gives CF possibility to respond to emerging threats and opportunities Gives CF possibility to respond to emerging threats and opportunities Challenging in poor communities – requires strong commitment Challenging in poor communities – requires strong commitment Start with development plan and step–by– step long term approach Start with development plan and step–by– step long term approach

5 3 keys to sustainability: 3. Trust & local ownership - board reflecting community Reflective of community – gender balance, ethnic and religious groups, social strata, professional back-grounds, NGOs, LG, private sector Reflective of community – gender balance, ethnic and religious groups, social strata, professional back-grounds, NGOs, LG, private sector Committed to strict conflict of interest policy Committed to strict conflict of interest policy Volunteers – not paid, no allowance hunters, 3 W and 3 G rules apply Volunteers – not paid, no allowance hunters, 3 W and 3 G rules apply

6 CFs and corporate foundations – US comparison, 2005 Largest CFs by assets (mln. US$): NY 1810, Cleveland 1632, Chicago 1 324, Tulsa 1 255, Marin 1153, Kansas City 895, Columbus 809, California CF 762, Silicon Valley 760 …. Largest CFs by assets (mln. US$): NY 1810, Cleveland 1632, Chicago 1 324, Tulsa 1 255, Marin 1153, Kansas City 895, Columbus 809, California CF 762, Silicon Valley 760 …. Largest corporate foundations: Largest corporate foundations: Wells Fargo 556, Alcoa 512, Verizon 425, Pfizer 358, Fidelity 323, General Motors 255, AT&T 233, Goldman Sachs 200, Met Life 170, IBM 164, Merck 161 … Wells Fargo 556, Alcoa 512, Verizon 425, Pfizer 358, Fidelity 323, General Motors 255, AT&T 233, Goldman Sachs 200, Met Life 170, IBM 164, Merck 161 …

7 Useful Websites about CFs Global: cf.org/global_report2004/index_e.cfm cf.org/global_report2004/index_e.cfm - South Africa: Poland: Canada: - United Kingdom: