Foundations 101: Philanthropy in Mississippi

Overview and Outcomes

Kenita WilliamsSr. Program Manager, Public Policy,

Southeastern Council of Foundations

Session AgendaWelcome and IntroductionsDefining FoundationsA Brief History of PhilanthropyPhilanthropy in MississippiPhilanthropic InfrastructurePhilanthropy in Action

Foundations 101 Participants

Meeting OutcomesBuild relationships between key public sector and

philanthropy representatives in MississippiDevelop public sector understanding of the purpose, role,

scope, scale and impact of philanthropy--nationally, regionally and in the state

Explore opportunities for leveraging public sector and philanthropy investments in common priority areas

Establish philanthropy as an influential voice on that can help inform public sector policies and investments

Develop on-going communication process for philanthropy/public sector interaction

Defining Foundations

Anne Travis, CEO The Bower Foundation

What is a Foundation?In the United States today, a foundation is…Section 501 (c) (3) tax exempt organization

…“operated exclusively for religious, charitable, scientific, testing for public safety, literacy or educational purposes…”

Typically, foundations make grants; Principal purpose is to support unrelated organizations, institutions, or individuals

Grants must serve a charitable purpose

501 (c)(3)

Non-ProfitsFoundations

Support

Common Characteristics

Nongovernmental, nonprofit organizations

Managed by their own trustees/directors

Motivated by charitable intent

Foundations are NOT“…part of the net earnings of which inures to the

benefit of any private shareholder or individual…”“…substantial part of the activities of which is carrying

on propaganda, or otherwise attempting, to influence legislation…”

“…and which does not participate in, or intervene in, any political campaign on behalf of (or in opposition to) any candidate for public office.”

Types of FoundationsPrivate: Funded by a single source

Family foundationCorporate foundationIndependent (grantmaking or operating)

Public: Funded by many sourcesCommunity foundationsFunds serving certain population groups or issues

A Private Foundation…Has a principal fund or endowmentMaintains or aids charitable, educational, religious

or other activities serving the public goodMust file a form 990-PF tax return with the IRS

annuallyMust distribute at least 5% of assets annually

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 benefitting unrelated organizations or individuals as one of its primary purposes

Is required to file a form 990 tax return with the IRS

A Brief History of Philanthropy

Ivye Allen, President Foundation for the Mid South

A Brief History of Organized Philanthropy

Year Action

1880-1900 Andrew Carnegie promotes “public trusts”

1910-1930 First private and community foundations

1930-1950 Corporate foundation growth

1950-1970 SECF and COF established; Tax Reform Act of 1969 creates new tax classifications and requires foundations to distribute 5% annually

1970-1990 Growth of community foundations

1990 → Tech foundations: Gates, Ebay, Google, online alternatives

Growth of U.S. Foundations

From The Foundation Center, Foundation Growth and Giving Estimates, 2011. Figures exclude foundations that reported no grant activity.

From 22,088 in 1980 to 76,545 in 2010

Foundations in AmericaNumber of Foundations1990: 32,000 foundations in the United States2010: 76,545 foundations in the United States2012: 86,192 foundations in the United States

Total Assets1990: $142.5 billion in assets2010: $588 billion in assets2012: $715 billion in assets

Total Giving1990: $8.7 billion in grants2010: $45.7 billion in grants2012: $51. 8 billion in grants

Foundations in America

Foundations: 14% of overall charitable giving (2012)$2.2 billion to Arts & Culture$4.96 billion to Education$5 billion to health

Philanthropy in Mississippi

Sammy Moon, CoordinatorMississippi Association of Grantmakers

Summary Statistics for Mississippi Foundations, 2012

Source: Foundation Center, 2014

Foundation TypeNo. of Fndns.

% Assets % Total Giving %

Independent 216 84 $820,874,654 68 $63,727,602 71

Corporate 15 6 $129,571,064 8 $6,209,334 11

Community 8 3 $154,009,396 11 $17,513,925 19

Operating 18 7 $99,982,400 13 $2,742,110 3

TOTAL 257 100 $1,204,437,514 100 $90,261,519 100

Mississippi Foundations by Range of Giving, 2012

48.05%

15.23%

23.83%

5.86%

5.86% 1.17%$1-$50,000 (123)

$50,000-$100,000 (39)

$100,000-$500,000 (61)

$500,000-$1 Million (15)

$ 1 Million-$5 Million (15)

$5 Million and over (3)

Total Giving Range

Source: Foundation Center, 2014

Distribution of Grants to Mississippi Recipients, 2012

Food Agriculture and Nutrition

Human Services

Philanthropy, Volunteerismand Grantmaking Foundations

Public Protection

Arts & Culture

Housing & Shelter

Youth Development

Health

Community Improvement

Education

0% 10% 20% 30% 40% 50% 60% 70% 80%

1.3%

1.4%

1.6%

2.8%

3.1%

3.6%

4.2%

5.5%

6.4%

68.3%

8.0%

10.2%

2.3%

4.5%

9.1%

4.5%

4.5%

6.8%

5.7%

33.0%

% Grants

% Grant Dol-lars

Note: Grants awarded to MS recipients by FC 1,000 Foundations, top 10 areas of giving. Includes giving from out-of-state foundations.Source: Foundation Center, 2014

Trends in Giving to Recipients in Mississippi 2005-2012

2005 2006 2007 2008 2009 2010 2011 2012 $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$14,653,315

$11,559,326

$34,583,169

$39,260,757

$25,539,742

$16,819,293

$19,923,310

$23,926,438

Public Affairs/Society Benefit Education HealthHuman Services Arts & Culture

TO

TA

L G

RA

NT

DO

LLA

RS

Note: Grants awarded to MS recipients by FC 1,000 Foundations, top 5 areas of giving. Includes giving from out-of-state foundations. Source: Foundation Center, 2014

Year-to-Year Change in Foundation Giving 2002-2012

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-100%

-50%

0%

50%

100%

150%

Mississippi

Southeast*

US

Perc

ent c

hang

e

Source: Foundation Center, 2014*Includes data for Mississippi, Alabama, Louisiana, Tennessee, Arkansas, Virginia, North Carolina, South Carolina, Georgia, Florida, and Kentucky

Total Giving 2001 2012

MS Foundations $55,214,292 $90,261,519

Southeast Foundations

$3,890,207,216

$5,971,927,434

All U.S. Foundations

$30,508,498,382

$51,823,843,568

Philanthropic Infrastructure

Marcie Skelton, Director The Walker Foundation

Board Member, SECF

Philanthropic Infrastructure Organizations

National, regional or local organizations that seek to provide information, resources, support and strength for the philanthropic (and non profit )sector.

Philanthropic Infrastructure: PurposeStrengthen Philanthropy (the

field)Capacity BuildingAmplify EffectivenessNetwork Building

Philanthropic Infrastructure: Types

Regional AssociationsState AssociationsNational AssociationsAffinity Groups

Issue-BasedConstituency-BasedIdentity-BasedJob-Centered

Research and Data Libraries

The Landscape of National Philanthropy

State Associations

Philanthropy in Action

Sheila Grogan, Executive DirectorBlue Cross & Blue Shield of Mississippi Foundation

MS Philanthropy in ActionTargeted grants to improve the health of

Mississippians, with a focus on communities, schools, and universities and colleges. (BCBS)

Delta Workforce Funding Collaborative (FMS)Mississippi School Health (TBF)Personal Finance For Teens: From Marks to all

Mississippi (CFNM)

Next Steps & Resources

Tom Pittman, President & CEOCommunity Foundation of

Northwest Mississippi

Next Steps: Working Together to Improve Mississippi

• Including Foundations “at the Table”

• Continuing the Dialogue

• Partners in the work

ResourcesSoutheastern Council of Foundations, www.secf.orgFoundation Center, www.foundationcenter.orgMississippi Association of GrantmakersCouncil on Foundations & Affinity Groups, www.cof.orgBoardSource, www.boardsource.orgNational Center for Family Philanthropy, www.ncfp.orgGrantmakers for Effective Organizations,

www.geofunders.orgIndependent Sector, www.independentsector.org

Questions & Answers