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Council on Foundations Connect. Impact. Advance. 1
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2 Discussion Agenda Foundations 101: Facts, Trends, and Current Challenges Understanding the culture of foundations Discussion: How to Bring the National Guard’s Joining Community Forces to Local/Regional Foundations What is needed? Who are the beneficiaries? How is the community benefitted? What other partners are there? Are there funds to be leveraged?
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Council on Foundations Serving as a Hub to strengthen the network Creating an ecosystem for philanthropy’s work
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4 What is a Foundation? In the United States today, a foundation is... An entity recognized as a Section 501(c)(3) organization Principal purpose is to support unrelated organizations, institutions, or individuals For scientific, educational, cultural, religious, or other charitable purposes
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Types of Foundations Private: Funded by a single source Family foundation Corporate foundation Independent (grantmaking or operating) Public: Funded by many sources Community foundations Funds serving certain population groups or issues
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Common Characteristics Foundations are: Nongovernmental, nonprofit organizationsManaged by their own trustees/directorsMotivated by charitable intent
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Sesame Street
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Pell Grants
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National Gallery of Art Eradication of Yellow Fever The Polio Vaccine Detection of Cervical Cancer The Green Revolution
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A Private Foundation... Has a principal fund or endowment Maintains or aids charitable, educational, religious, or other activities serving the public good Is required to file a 990-PF form with the IRS annually
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A Public Foundation... Typically receives funding from numerous sources and must continue to seek money from diverse sources in order to retain its public charity status; Operates grants programs benefiting unrelated organizations or individuals as one of its primary purposes; Is required to file a 990 form with the IRS.
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12 A Brief History of Organized Philanthropy 1880-1900:Andrew Carnegie promotes “public trusts” 1910–30:First private and community foundations 1930–50: Corporate foundation growth 1950–70: Council on Foundations established; Tax Reform Act of 1969 1970–90: Growth of community foundations 1990 :Tech foundations: Gates, Ebay, Google, and online alternatives
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Majority (81,777) of US foundations Private $622 billion in assets $49 billion in grants (2011) $50.9 billion in grants (2012) 89% 6% 3.6%1% From Foundation Growth and Giving Estimates, The Foundation Center, 2011 Private “non-operating” 89% Operating 6% Corporate 3.6% Community 1%
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Of the roughly US$300 billion given in donations in 2011: Individuals, by far, comprise the biggest percentage of charitable giving, at 73% of all contributions Foundations came next, at 14% Bequests followed, at 8% Corporations are at 5% Foundation giving in perspective
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Global Pressures on Philanthropy - Range of forces: shifting roles, economic crises, press of technology. - Challenges don’t adhere to geographic boundaries any more. - Political and economic turbulence. - Growing weight of needs. - Relentless global pressures on business. What’s Next for Philanthropy, July 2010 Monitor Institute
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Trends A smaller networked world Information age drivers: a rise in personal philanthropy Giving from the U.S. internationally Growth of community foundations across the globe Increase in global wealth Opening of political environments Shifting roles of state, market, and civil society Increased visibility of philanthropy and its leaders New financial tools and collaborations between the sectors: public-private-philanthropic
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Recent Economic Challenges The Great Recession Decline in endowment asset value through Recession years- slow climb out Pressures on foundations to respond to dramatic and increasing individual and community needs – changes in grant making priorities Political Environment Tax reform ideas that propose changes in charitable giving
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What is a Community Foundation? A community foundation is a tax-exempt, autonomous, publicly supported, nonsectarian philanthropic institution with a long-term goal of building permanent, named component funds established by many separate donors to carry out their charitable interests and for the broad-based charitable interests of and for the benefit of residents of a defined geographic area.
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Why Community Foundations Make Good Partners Aware of local government and nonprofit capacity for projects because of grant making and technical assistance Track record of building funder partnerships, project partnerships, and acting as a neutral convener Knowledge of local politics, stakeholders, community dynamics Ability to be nimble grant makers Understanding of past projects and community’s level of excitement, tolerance, fatigue
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How to Build Relationships with Community Foundations Locate the community foundation in your community using the Council’s tool: http://www.cfstandards.org/community-foundation-locator Proactively include them in your stakeholder interviews Discuss project funding gaps and determine whether their board is interested in focusing grant dollars on a cross-sector partnership Share your findings from stakeholders and your analysis of priority projects and investments that will make an impact in their community Help them navigate federal grants and related Resources (to the extent possible) Touch base with them for a “barometer” read about the community as you continue your work Remind other stakeholders that they are a resource (i.e. We can’t help you but have you spoken to the CF)
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Community Foundation Benefits Demonstrate the powerful, unique role of philanthropy in their community Affirm the community foundation’s position as a hub/catalyst for place- based social change and coordinated action locally Foster cross-sector dialogue and projects demonstrating the power of community philanthropy Equip place-based leaders with innovative thinking models, and tools
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22 Examples San Antonio Foundation, San Diego Grantmakers, Lincoln Community Foundation (NE)- Community Engagement Strategy Patterson Foundation (FL) - outreach and communications about eligibility for end of life benefits Sprayregen Foundation (FL) - documentary on suicide issues Delaware Valley Grantmakers Assn and Philanthropy NW – veterans working groups Bristol Myers Squibb – mental health services and research grants; in kind pharmaceuticals Joining Forces Impact Pledge - $100 million in pledges ( April ‘14) Veterans Philanthropy Exchange – online network of likeminded funders
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For more information, contact: Stephanie Powers Sr. Director for Policy and Partnerships Public Policy Department stephanie.powers@cof.org (703) 879-0626 23
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