April, 2010 Prepared for: Board of Directors Economic Scenario Planning for Name of Foundation Community Foundations Leadership Team

2 I.Introduction II.Expected Scenario III.Alternate Scenarios IV.Discussion Contents

3 With the Help of the CFLT’s Economic Scenario Planning (ESP) Model We Have Developed a Five-Year Forecast for Our Foundation Introduction In response to the worsening economy, the Community Foundations Leadership Team (CFLT) created the “Confront the Brutal Facts” task force to help community foundations better understand the challenges of the current economic climate and its impact on budget and business decisions Based on the task force’s recommendation, the CFLT commissioned CF Insights and FSG Social Impact Advisors to create an Economic Scenario Planning (ESP) model (“stress test”) for community foundations available free of charge as an assessment and forecasting tool to answer pressing questions, such as: –Under what circumstances will the foundation’s assets return to pre-recession levels? –How will the foundation’s income statement be impacted if the market does much better or much worse than expected? –What adjustments need to be made to spending policies if absolute grant levels are to be maintained in the coming years? –How much of a gap in administrative fees might the foundation be facing / how much revenue from other sources does the foundation need to generate in the coming years? –What impact would a major new gift have on the foundation? –Can the foundation afford to increase its operating expenses in the coming years? –Will the foundation have enough operating cash? We have used the ESP model to create three scenarios for what the next five years could look like for our foundation and look forward to discussing these with you today  

4 Today We Will Present Our Assumptions, Show How They Impact Our Operating Model, and Discuss Key Implications for the Foundation Our goal for today is to discuss these and related topics and determine the best course of action as the foundation heads into the next year Introduction First, we will present a five-year forecast based on our current expectations of market performance, donor behavior, spending policy elements, alternative revenue growth, and operating expenses Next, we will show how changes to these assumptions would impact core operating indicators The key findings from these analyses highlight several important discussion topics: Key Finding Discussion Topic Insert key finding here  Insert discussion question here Insert key finding here  Insert discussion question here Insert key finding here  Insert discussion question here

5 I.Introduction II.Expected Scenario III.Alternate Scenarios IV.Discussion Contents

6 Key Assumptions Our Expected Scenario Is Based on [the Latest General Economic Outlook and Local Trends We’ve Experienced in the Past Few Months] Expected Scenario Summarize scenario qualitatively here CategoryAssumption Rationale Market Performance Insert assumptionInsert rationale Donor Behavior Insert assumptionInsert rationale Spending Policy Insert assumptionInsert rationale Other Revenues Insert assumptionInsert rationale Operating Expenses Insert assumptionInsert rationale     

7 Summarize Results in Headline Here Expected Scenario Comments Insert comments here

8 Summarize Results in Headline Here Expected Scenario Personnel Non-Personnel Comments Insert comments here

9 Summarize Results in Headline Here Expected Scenario Comments Insert comments here

10 I.Introduction II.Expected Scenario III.Alternate Scenarios IV.Discussion Contents

11 [ABC] Scenario These Two Alternate Scenarios Test How Key Operating Indicators Would Be Impacted if Some of Our Assumptions Panned Out Differently Alternate Scenarios [XYZ] Scenario Summarize scenario qualitatively here Market Performance Describe key differences or write “none” Donor Behavior Describe key differences or write “none” Spending Policy Describe key differences or write “none” Other Revenues Describe key differences or write “none” Operating Expenses Describe key differences or write “none”      Summarize scenario qualitatively here Key Differences to Expected Scenario

12 Summarize Results in Headline Here Alternate Scenarios

13 Summarize Results in Headline Here Alternate Scenarios Comments Insert comments here Comments Insert comments here Comments Insert comments here

14 Summarize Results in Headline Here Alternate Scenarios Comments Insert comments here Comments Insert comments here Comments Insert comments here

15 Summarize Results in Headline Here Alternate Scenarios Comments Insert comments here Comments Insert comments here Comments Insert comments here

16 Summarize Results in Headline Here Alternate Scenarios Asset-Based Revenues Operating Endowment / Reserve Revenues Other Revenues

17 I.Introduction II.Expected Scenario III.Alternate Scenarios IV.Discussion Contents

18 How Do Our Assumptions and Results Compare to Our Peers? To come Discussion If you’ve participated in a peer learning group, you can use this space to show what you’ve learned about how your peers are thinking about the coming years OPTIONAL

19 Based on the Results of the Economic Scenario Planning for Our Foundation, Several Key Discussion Topics Have Emerged Discussion Key FindingDiscussion Topic Insert key finding here  Insert discussion question here Insert key finding here  Insert discussion question here Insert key finding here  Insert discussion question here Secondary FindingDiscussion Topic Insert key finding here  Insert discussion question here Insert key finding here  Insert discussion question here