The community foundation
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Transcript of The community foundation
An Overview Lisa Cremin, Director, Metropolitan Atlanta Arts Fund, Nonprofit
Loan Fund, Social Innovation, Community Partnerships Audrey Jacobs, Director, Center for Family Philanthropy
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History
Founded in 1951 as The Metropolitan Foundation of Atlanta Atlanta’s then four largest banks—Citizens and
Southern National, First National Bank of Atlanta, Fulton National Bank and Trust Company of Georgia
Purpose – serve a permanent charitable resource to benefit and improve quality of life in the metropolitan Atlanta region.
1977- Metropolitan Atlanta Community Foundation created, $7 million in Assets
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History and Background
• 1997 Foundation Renamed • The Community Foundation for Greater Atlanta • 2011 - $700 million assets 1100 funds, including 700 donor advised funds • The Community Foundation is one of more than
700 community foundations throughout the country; among the top 20 largest community foundations.
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Our Philanthropic Framework
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Our Philanthropic Framework
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Observe/think
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Philanthropic Services
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Donor Advised Funds
Donor Advised Funds • Must be separately identified with reference to the
contribution of a donor or donors • It must be owned and controlled by a sponsoring
organization • The donor or a person appointed by the donor
must have or must reasonably expect to have, the privilege of providing advice with respect to the funds investments or distributions
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Donor Advised Funds
• 90% referrals from Professional Advisors, Accountants, Attorneys
• $50,000 minimum fund size ($5,000 open) • Center for Family Philanthropy— $250,000 or Planned Gift of $1m or more • Average new fund size is $400,000 • Average payout rate across donor- advised funds was 21%
in 2010
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Donor Advised Funds and Private Foundations
• Private foundations- start-up costs • 5% asset payout requirement, annually • Income tax deduction– up to 30% for cash
contribution • up to 20% for appreciated securities that are
publicly traded • Excise tax on income– up to 2% of annual net
investment income
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Other Funds Held at The Community Foundation
• Unrestricted– Common Good Funds Donors who wish to provide a gift to nonprofits in the
region without being involved in the selection process Competitive grantmaking General operating support • Designated Donor creates a legacy to benefit one or more nonprofits
perpetually without giving the entire amount directly to the nonprofit at the onset.
• Scholarship Funds
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Who are the Foundation’s Donors?
• Predominantly metro Atlanta residents • Fulton, Dekalb, Gwinnett • Age 50+ • Caucasian (97%) • Few minorities • Both male and female • High net worth • Entrepreneurs
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The Community Foundation’s Role vis-a-vis Donors
Serve as personal philanthropic advisor to individuals and families who want to make a difference through their long-term giving.
Provide multiple giving opportunities for individuals
and families Provide deep knowledge about nonprofit
organizations and critical community issues
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Donor Services and Donor Engagement
• Grantmaking- grants processing,** due diligence • Back office Support/Recordkeeping • Reports and various materials • Education Opportunities throughout the year
• Smart Giving Series • Co-investment opportunities • Site Visits • Family Services • Successor Engagement • Engaging the Next Generation
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The Center for Family Philanthropy
Launched in 2000 Customized services for donors with donor-advised
funds of $250,000 or greater or a Planned Gift of $1million or more. Provide opportunities for deep donor engagement
and customized services • Philanthropic planning and Grantmaking • Information and education • Legacy Services • Investment Options– individually managed
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Elements of a Successful Philanthropic Roadmap
• Values • Interests • Mission • Research • Visits • Consultation • Involving others– Involving the
Next Generation • Grantmaking • Strategy and approach • Evaluation– results and impact • Legacy
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Community Foundation Impact in 2010
• Received $138 million in gifts from donors and other funders– record year
Majority of gifts from existing fund advisors • Granted $99 million to nonprofits in the region and
beyond 87% of those grants were through individuals,
donor advised funds 75% of last year’s $99 million remained in our
Atlanta region.
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Donor Behavior
2010 Donor Survey Issues most important to donors: Education Religion and Spiritual Development Arts, Culture and Humanities Focus remains significantly on the metropolitan
Atlanta region Giving was more focused/strategic as a result of
economic downturn in 2008 More selective in support, Emergency Relief
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Donor Behavior
Considerations in supporting nonprofit organizations: Strong mission, effective programs (81%) Demonstrating impact in meeting community needs
(66%) Well-managed operations and stable finances (60%) Effective Board of Directors (22%) Innovative approaches to addressing community
issues (21%)
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Current Research on Donor Behavior
“Money for Good,” Hope Consulting Increasing Charitable Donations From Individuals Key Findings: • There is $45B of market opportunity, limited in
part by high levels of loyalty in charitable giving. • Donors are generally satisfied with nonprofits, but
cite being solicited too often as their key area of frustration.
• Behaviors matter: there are six discrete segments of donors with different primary reasons for giving
• Demographics don’t matter.
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Money For Good Research
Recommendations: • Segment on behaviors, not demographics • Tag and track donors by segment • Determine what segments are best for your
organization, given your strengths • Develop consistent outbound marketing that
appeals to target segments • Prioritize investments based on what will drive
donor behavior • Capture donors early • Understand how to manage different segments
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Community Partnerships
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Funds and grantmaking programs
• Common Good Funds: – Is a pool of funds driven by
the Board – Is not always granted
competitively – Is not General Operating
Support, a type of grant – Grants are vetted
rigorously/individually; used as basis for donor information
– Exclude certain organizations
• Donor Advised Funds: – Are driven by donors – Comprise the majority (95%)
of the foundation’s funds & awards ($96M)
– Are only made competitively when requested by donor
– Are made for all kinds of grants
– Are not vetted beyond legalities
– Do not exclude any legal nonprofit
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2012 Community Partnerships Committee
•Administrative Fees •Payouts: Designated Funds •Grants from other Funders •Fundraising & Events •“Fees for Service
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Grantmaking Philosophy
We fund well integrated organizations that have: Effective programs Diverse, well-managed funding Strategic planning Capable boards and staff leadership
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Assumptions
The nonprofit sector is essential to enhancing the quality of life in the metro region. A strong nonprofit sector is one comprised of
sustainable organizations. Sustainable organizations must have effective
leadership, adaptability, program capacity.
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Our operating thesis as of 2009:
Providing general operating support and
targeted management consulting services will lead to stronger, more sustainable nonprofits and enhance our collective quality of living.
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Philanthropic (Donor) Services
• Support thoughtful, accurate informed research that encourages smart giving to Foundation donors
• Community Partnerships staff provide reports, training and facilitated education sessions; and co-design of donor events and activities
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Community Initiatives
• Networks of people who can work together to address critical community needs
• Three Community Initiatives are: the AIDS Fund, Arts Fund and Neighborhood Fund – These are “long-term” initiatives that are now
permanent programs of the Foundation.
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Sample of Community Initiatives KEY: TCF Organizational Excellence Important Program ends Important
Program Engaging Philanthropists Limited events before or is spun off programStrenthening Nonprofit Sector Invlovement program is milestone
Advancing Public Will official
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Neighboorhood Fund X X· Mott Foundation· Local match· 3-year program
TCF Program TCF Program
TCF Partners with Georgia Center for Nonprofits Spun off into Support Center for (formerly Nonprofit Resource Center) independentNonprofits (SF) for · Institutional Funder entityworkshops · 3-year plan X
Decision to continue
NEA challenge $ to X Metropolitan Atlantastabalize arts groups Arts Fund
· Challenge $· TCF Grant match
National Arts Strategies to ATL for $ assessment
TCF receives grant from NeighborhoodFord for CDC support Development(ATL Housing Fund) Partnership
· merger of 2 orgs
Atlanta Women's Foundation Spun off into (formerly Fund for Women & Children) independent· TCF Initiated entity
Atlanta/Fulton Collaborative ATL/Fulton Spun off into dormant - TCF partipates Fam. Connection independentin restart dialogue · Institutional Donors entity
· 1-year plan
TCF receives Ford grant to Atlanta AIDS Partnership Fund (PLANNED GIFTS)fund Gay Related Immune X · Partnership with United WayDisorder (GRID) treatment · Individual/Institutions
Increased donor engagement(National AIDS Fund, Elton Metro ATL Youth StatewideJohn); designed for event funding Opportunity Initiative
· 3-year plan
Intergroup Relations Program endProgram· Ford, 2-year plan· local match
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A Sampling of Past/Current Community Initiatives (1/2011)
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Community Leadership
• Our role and presence in the community includes collectively hosting and participating in hundreds of meetings annually
• Community Partnerships is also responsible for management of the Foundation’s 200+ volunteers who serve on our grantmaking and research committees
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Working Externally
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Our Path
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Measuring Our Progress
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2010 Bank of America Study of High Net Worth Philanthropy
Findings with respect to Community Foundations • Most giving is local • Community foundations provide important
guidance • donors rely more on foundation staff for
guidance • Use of charitable vehicles continues • donor advised funds, endowed funds with a
particular organization, private foundation • Family involvement remains important
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Conclusion
• Importance of investing time to understand donors
interests, passions, drivers
• Continue cultivation over time, through generations
• Importance of collaboration
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Conclusion
Thank You for Your Interest!!
Questions & Answers