Think Globally, Act Locally: How One Community Foundation is Responding to the Economic Crisis

Priscilla Enriquez, Chief Giving Officer916-921-7723

priscilla@sacregcf.org

Outline

1. Snapshot of Sacramento Region Community Foundation (SRCF)

2. Snapshot of national CF grantmaking

3. Snapshot of the Sacramento region

4. Internal and External Factors for “Doing Something”

5. Our Response

6. Outcomes of our Response

7. Lessons Learned from This and Other Efforts

8. Next Steps

Snapshot of SRCF

1983

9 FTE

125M 2007

Finance, Dev,

Program

Snapshot of SRCF

Facts

• One of few foundations in the region

• Primarily transactional through DAFs, about $5M in „08

Challenges

• Very small unrestricted budget

• Donor services and communications absorbed by everyone

Snapshot of National CF Grantmaking (COF)

Accounted for 56% of community foundations’

grant dollars ($1.7 billion) in 2008.

Payout is more than three times the payout from other

funds – 16.4% vs. 5%.

28% of grantmaking in 2008 addressed critical human service needs, including

food, health care, education, housing, foreclosure

prevention, emergency shelter, and utilities.

The majority of CFs said they will maintain or increase their grantmaking from donor advised funds to

address human services needs in 2009

Donor Advised Funds

Snapshot of Sacramento Region

Basic Demographics

Total Pop 2.1 M across 4 counties

City of Sacramento dubbed “most diverse city” in US

Med Income Family of 4 $64K, CA $75K

Environmental Economic Indicators

Developer Town

Government Town furloughs heavily covered in media

Homeless “tent” city

5th top foreclosure city among top 100 metro areas (30 miles

from #1 city of Stockton)

Internal and External Factors for “Doing Something”

Internal Factors

• Environmental Scan• Staff desire to be

responsive• Board Strategic

Planning Process• Board question: What

are we doing?

External Factors

• Demographic picture of the area

• Foundation partner in the area launched responsive fund

• New mayor selected Foundation as a partner in some efforts

Our Response: Process

Learning and Doing

Learn from Others

Listen to the Field

Explore with Funders and

Donors

Opportunistic

Our Response: Implementation

Be Agile

Respond to Your Board

Need Survey

Partner

Make Grants

Need Survey:Responses and Implications

Responses Implications

41% said they expect organization‟s revenues to decrease in 2009, while 22% said that it will increase.

These statistics may be different if the survey were issued now. The question is whether we would like to monitor the pulse of the nonprofit sector by reissuing this survey.

70% expect to pursue foundation funding although respondents have experienced a decrease in foundation funding. Similar statistics for corporate and individual donations.

Philanthropic dollars have decreased in the region but community expects to pursue foundation funding. We will need to manage expectations as to what we as a foundation can deliver.

One of the tactics that nonprofits are planning on is to increase board engagement in fundraising.

Individuals who serve on boards are also experiencing stresses to their own situation and may not have the capacity or will to increase their own giving or asking others to give.

Another tactic that nonprofits indicated is to initiate joint ventures or collaborations to reduce duplications and competition.

Organizations need to realize that collaborations and partnerships take careful planning, management, and vision. We need to figure out how we can facilitate and encourage these collaborations.

Outcomes of our Response

Still in progress

Site visits illuminating

Strategic picture emerging: leverage partnerships and other resources

What IS our response to the NPO community?

Launch another round of grants

When you act, be prepared to…

Lessons Learned From This and Other Efforts

• Leverage donor and other funder dollars• Patience with donor and other funder

dollars• Agility to move quickly• Flexibility• Staff intensive • Competition between initiatives

SRCF

• Not much strategy!• Giving circles, matching funds, integrated

staff approach, small gifts• Including and communicating back to

donorsOthers

Next Steps

Engage broader leverage strategy

Site Visits with Board and Donors

Use Indicator data in next appeal (eg

DV)

Philanthropic Leadership

From: Nonprofit Resource Center [scox@nprcenter.org] Sent: Monday, January 12, 2009 4:37 PM To: Priscilla Enriquez Subject: Sacramento Valley Economic Impact Survey

The Economic Impact on Sacramento Valley's Nonprofit Community:

A Survey to Measure Need, Impact, and Response

Please complete a short survey available HERE. January 12, 2009 Dear Nonprofit Leader: As we greet the new year with hope and opportunity, we also realize that great change is upon us. In significant ways, 2009 and beyond will be marked by exciting and unprecedented changes in our political leadership and economy that will require us to rethink our work, our role, and impact in the community. The Sacramento region's nonprofit sector has faced many losses in this economy while continuing to meet increasing demands. Their enduring work is crucial to the economic vitality of our diverse and growing communities. Likewise, the philanthropic community's role as both a resource and partner to nonprofit communities is even greater now than it has ever been before, even while it, too, has equally been challenged by the economic downturn. The bond between the nonprofit sector and the philanthropic community must strengthen as we move forward to continue our collective good work: to improve the health of people, to foster the arts, to educate children, to feed and shelter the homeless, to improve the air we breathe, to create jobs, and together, to create one of the greatest regions in our state, the Sacramento Valley. In order to do this, the need for timely information and data is critical to inform programs, initiatives, and the distribution of resources. In partnership with the Nonprofit Resource Center, the three regional community foundations, El Dorado Community Foundation, Placer Community Foundation, and the Sacramento Region Community Foundation are issuing a brief survey to assess the needs of nonprofits affected by the economic downturn. Please take a few minutes to complete this important survey by clicking HERE by January 26th. All information is confidential, and the results will be analyzed and shared with the community via our respective websites. Thank you.

Nonprofit Resource Center 828 I Street

Sacramento, California 95814

Community’s Greatest Need Fund

Economic Crisis Appeal

November 19, 2008

1

Background Purpose: To respond to the economic crisis that has affected the region’s non-profit human

services network and its ability to deliver vital programs and services to our community’s most

vulnerable populations.

Rationale: The delinquent state budget and national credit crisis has affected most non-profits in the region, resulting in delayed or a loss of funding either from existing assets, revenue from former funders, lost government contracts, or late payments from state agencies. Non-profits have experienced this with a reduction or a cut in programs, organizational layoffs, or by deferring projects. With the 2009-10 state budget slated to be in as much as $25B short, the ability to provide essential human services will only get worse, not better. Strategy: Raise $ and provide a .50c to $1 match by March 31st

Seed fund with $50K from the Need Fund

3K already committed, another 10K likely in January

Issue brief survey of needs to NPOs

Target key donors to provide match

Target inactive fundholders, select corporate funders

Send appeal letter to all fundholder donors from the SRCF Board

Appeal to SRCF Board

Community and Media Outreach

Implementation:

Launch: Now

Opportunity: Kevin Johnson inaugural and his featuring the fund

Organizational Eligibility: any NPO in the region focused on safety net, human services

programming

Community’s Greatest Need Fund

Economic Crisis Appeal

November 19, 2008

2

Eligible Funding: for stop-gap measures, eg paying rent or other bills; basic provisions of

food, shelter, or clothing; coverage for existing basic services within the organization’s

menu of services eg health care, case management, staffing etc.

Ineligible Funding: new programs or services, development, program enhancement,

trainings, conferences, etc.

Grant Size: up to $10,000 (ideal size $25,000)

Review Process: Staff review, 2 week turnaround

Outreach Strategy

Kevin Johnson Inauguration

Fund already posted on the Kevin Johnson for Mayor website,

http://www.kevinjohnsonformayor.com, click on the “Together We Can” swearing in

link

SRCF will place a teaser on our home page to link to the KJ website

SRCF Website

SRCF will place an appeal for the fund on the home page

General Press Release

Radio: CPR, KFBK

Print: Bee, SNR, Inside Publications, Business Journal, Sacramento Observer, APA News

and Review

TV: all network news, Univision

Targeted Media Outreach for Stories and Interviews

Radio: CPR on Insights, KFBK for Kitty O’Neill interview

Print: Bee for a Guest Column (or columnist writer to cover), Business Journal for a story

Board and Staff

Reach out to own network and colleagues

Community’s Greatest Need Fund

Economic Crisis Appeal

November 19, 2008

3

Response by Other Community Foundations

Silicon Valley Community Foundation Focus: food and shelter

Program: Created a 1:1 match for every dollar donated; Seeded with $1M

Timeline: launched in Sept as part of their new strategic direction, appeal will end Dec 31st.

Results: Already raised $1M (including from Board)

Sonora Community Foundation Focus: Concerned with “bridge” funding (eg late state payments)

Program: Will develop a policy for bridge funding, likely to preserve $ in grants budget for food banks

Timeline: likely next year

San Diego Foundation

Focus: Taking an aggressive, proactive approach

Program: Targeted to long-term sustainability and building capacity of non-profits in reaching organizational success during tough economic times, eg securing a management consultant to downsize or be acquired or merged, how to restructure, how to share existing resources. Convening 10 small roundtables discussions with NPOs, professional advisors, donors, prospective donors…outstanding response thus far. Sees this as a great opportunity to approach new donors.

Timeline: RTs done by end of 2008, June launch of the Non Profit Economic Recovery Initiative

Results: Outstanding response in RTs, have a 200K challenge commitment from one donor, trying to hit a $5-6M goal

Santa Cruz Community Foundation

Focus: Outreach

Program: Developed message in yr-end statements, similar for non profits, professional advisors

Timeline: end of 2008

Boston Foundation Focus: food and fuel

Program: Initial $500K from BF endowment; solicitation appeal with news articles to donors

Timeline: letter to donors sent last week of October, goal was to raise $50K

Results: To date, raised $81K

STRATEGY

LEVERAGE DOLLARSThe Sacramento Region Community Foundation is starting a campaign to leverage crucial donor dollars.

RAISE FUNDSDonors are asked to give to support human services organizations with a gift to the Community’s Greatest Need Fund.

RESPOND TO CRISISNon-profit organizations in the Sacramento Region focused on safety net and human services programming can apply for grants for stop-gap measures.

The Sacramento Region Community Foundation is starting a campaign for the “Community’s Greatest Need Fund” that will provide money to local charities that deliver vital services to children, families, and seniors struggling to meet day-to-day expenses.

The special fundraising appeal directly supports the emergency facing Sacramento’s network of safety-net services.

Donations will be granted to local non-profit organizations that have a proven capacity to provide crucial relief to the most vulnerable.

As we enter the season of giving, we look to the generosity of our community so that we can support others who may not be as fortunate as we are.

Please give today by sending a check or making an on-line donation.

www.sacregcf.org

(916) 921-7723

Sacramento Region Community Foundation740 University Avenue, Ste. 110

Sacramento, CA 95825

November 25, 2008

Dear Friend of the Foundation,

As the season of giving arrives and the year draws to a close, I wish to thank you for your continued support of the Sacramento Region Community Foundation. I know you understand and share our commitment to improving the community’s quality of life and safeguarding the well-being of our most vulnerable residents.

“The holiday season began this week with what could be unprecedented demand for food and shelter in the region, fueled by a flailing economy”. (Sacramento Bee, November 25, 2008)

These are challenging economic times and “safety-net” non-profit organizations are facing a funding crisis that threatens their ability to provide critical services. From food and shelter, to counseling and crisis-intervention, important programs and key staff are being scaled back or cut altogether.

In alignment with the mission of our Foundation, “to serve as a leader and trusted partner in expanding philanthropic activity and enhancing its impact for the betterment of our communities,” our Board of Directors has responded to this crisis by establishing an emergency-funding grant program. The “Community’s Greatest Need” initiative will provide funding to organizations facing program and staff cuts that jeopardize the safety and well being of children, the elderly and families in crisis.

We are asking you to reflect on your own situation and consider supporting our effort. The Foundation will match community donations, dollar for dollar, for the first $50,000 contributed through December 31. We pledge to work tirelessly to grow this fund as large as possible, quickly distributing grants where they provide the most significant impact.

We value and appreciate the confidence you have placed in us by choosing the Foundation to help you carry out your philanthropic goals. This is an extraordinary time of need. Please join our campaign to provide immediate relief to the community we all care so much about. 100% of your gift will be re-granted!

You can send a check payable to the “Community’s Greatest Need Fund”, donate online at sacregcf.org, or call us directly at 916-921-7723.

Sincerely,

Ruth Blank CEO