Community Foundation – Community Foundation – Element of Mining Company Element of Mining Company

Community Legacy ?Community Legacy ?

IFC, June 2006IFC, June 2006

Juraj MesikJuraj Mesik

Sr.Community Foundations Specialist, SDVSr.Community Foundations Specialist, SDV

jmesik@worldbank.orgjmesik@worldbank.org

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What are CFs ?Six Basic Characteristics

1. Mission is broadly defined1. Mission is broadly defined (like „to improve (like „to improve quality of life in community“)quality of life in community“)

2. Geographically defined community2. Geographically defined community 3. Grantmaking3. Grantmaking foundations foundations

(but many (but many also doalso do their own programs) their own programs) 4. Broad range of donors - 4. Broad range of donors - seek contributions seek contributions

from inside and outside of community from inside and outside of community 5. G5. Governed by overned by board reflecting community board reflecting community 6. B6. Builduildss endowmentendowment, , element of perpetuityelement of perpetuity 7. Independent 7. Independent registered legal entityregistered legal entity

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3 keys to sustainability:1. Broad range of donors

More donors – higher stability, moreMore donors – higher stability, more perspectives, more local ownershipperspectives, more local ownership Large, middle, small; private as well as Large, middle, small; private as well as

public; even “people of modest means”public; even “people of modest means” Donors = element of social capital: Donors = element of social capital:

“fundraising is friend-raising”“fundraising is friend-raising” ““Funding pyramid” OFunding pyramid” O oooooo ********** ..:::::::::::....:::::::::::..

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3 keys to sustainability:2. Builds endowment

Capital invested, revenues usedCapital invested, revenues used Gives CF possibility to respond to Gives CF possibility to respond to

emerging threats and opportunitiesemerging threats and opportunities Challenging in poor communities – Challenging in poor communities –

requires strong commitmentrequires strong commitment Start with development plan and step–by–Start with development plan and step–by–

step long term approachstep long term approach

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3 keys to sustainability: 3. Trust & local ownership - board

reflecting community Reflective of community – gender balance, Reflective of community – gender balance,

ethnic and religious groups, social strata, ethnic and religious groups, social strata, professional back-grounds, NGOs, LG, professional back-grounds, NGOs, LG, private sectorprivate sector

Committed to strict conflict of interest Committed to strict conflict of interest policypolicy

Volunteers – not paid, no allowance Volunteers – not paid, no allowance hunters, 3 W and 3 G rules applyhunters, 3 W and 3 G rules apply

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CFs and corporate foundations – CFs and corporate foundations – US comparison, 2005US comparison, 2005

Largest CFs by assets (mln. US$): NY Largest CFs by assets (mln. US$): NY 1810, Cleveland 1632, Chicago 1 324, 1810, Cleveland 1632, Chicago 1 324, Tulsa 1 255, Marin 1153, Kansas City 895, Tulsa 1 255, Marin 1153, Kansas City 895, Columbus 809, California CF 762, Silicon Columbus 809, California CF 762, Silicon Valley 760 ….Valley 760 ….

Largest corporate foundations:Largest corporate foundations: Wells Fargo 556, Alcoa 512, Verizon 425, Wells Fargo 556, Alcoa 512, Verizon 425,

Pfizer 358, Fidelity 323, General Motors Pfizer 358, Fidelity 323, General Motors 255, AT&T 233, Goldman Sachs 200, Met 255, AT&T 233, Goldman Sachs 200, Met Life 170, IBM 164, Merck 161 …Life 170, IBM 164, Merck 161 …

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Useful Websites about CFs

Global: Global:

http://www.wings-cf.org/global_report2004/ihttp://www.wings-cf.org/global_report2004/index_e.cfmndex_e.cfm

- South Africa: - South Africa: www.donors.org.za/CF/cf_profiles.htmlwww.donors.org.za/CF/cf_profiles.html

- Poland: - Poland: www.filantropia.org.plwww.filantropia.org.pl

- Canada: www.community-fdn.ca- Canada: www.community-fdn.ca

- United Kingdom:- United Kingdom:

www.communityfoundations.org.ukwww.communityfoundations.org.uk