INDIANA GRANTMAKERS ALLIANCE C OMMUNITY F OUNDATION I NTERNSHIP O - - PowerPoint PPT Presentation

A SIGNATURE PROGRAM OF INDIANA GRANTMAKERS ALLIANCE

COMMUNITY FOUNDATION INTERNSHIP ORIENTATION

10:00 am

Welcome & Introductions 10:30 am What is a Community Foundation? 11:00 am Ice Breaker Activity 10:30 am Lilly Endowment CFI Program 12:15 pm Lunch 1:00 pm Youth in Philanthropy 1:45 pm Internship Discussion 2:15 pm Interactive Exercise 2:45 pm Questions and Wrap-Up

INTERN AGENDA - SEYMOUR

COMMUNITY FOUNDATION BASICS

CFI ORIENTATION

DEFINITION OF A U.S. COMMUNITY FOUNDATION

• Nonprofit, tax exempt

under section 501(c)3

• Independent, non-sectarian

governing body

• Publicly supported by many

unrelated donors

• Goal of building permanent

component funds

• Benefits the residents of a

defined geographic area

• Supports broad-based

charitable interests

• Serves in leadership role on

community issues

HISTORY OF COMMUNITY FOUNDATIONS

• 1914 - The first community foundation was established in

Cleveland, Ohio. Within five years, community foundations formed in places like Indianapolis, Chicago, Boston, Milwaukee, and Minneapolis.

• 1969 - Tax Reform Act
• private foundations becoming more strictly

regulated

• community foundations became a more attractive
• ption
• In the 1990s, commercial financial services firms, such as

Schwab, Fidelity and Vanguard, began to offer donor- advised funds.

• 1990s-today – increasing emphasis on CF role in

community leadership

• There are over 800 community foundations in the United

States and about 1,400 existing around the world.

GIFT HISTORY

• Philosophy of GIFT by Lilly Endowment Inc.
• Wants to serve Indiana
• Believes in local decision making – wants

philanthropic partners

• Builds civic participation
• Few community foundations in state
• Grows philanthropy

GIFT HISTORY

• Establish permanent charitable assets across Indiana
• Support local communities and build civic participation
• Series of 5 grant phases over first several years; Phase VI

announced in 2014

• Additional programs – Taking Stock, CAPE, SRD, interns
• Unique program in community foundation world
• Currently Indiana has 75 legal entities covering all counties

in Indiana

• All Indiana CFs - Over $2.7 billion in assets

• Unique elements of GIFT and Indiana’s community

foundations

• Commitment of the funder to “stay the course”
• Commitment of the community foundations to

collaborate

• Consistency of training as needs and times change
• Support from GIFT staff

GIFT HISTORY

INDIANA COMMUNITY FOUNDATIONS

PROVIDED BY CF INSIGHTS

COMMUNITY FOUNDATIONS – THE REALLY BIG PICTURE

GOVERNING BOARD

Sets Goals, Direction, Policy

STAFF

Implementation, Operations DONORS GIFTS come in different forms GIFTS are placed into a FUND INVESTMENTS PAYOUT/DISTRIBUTIONS

• Individuals
• Corporations
• Private foundations
• Charitable
• rganizations
• Cash
• Appreciated

Securities

• Real Estate
• Closely held

securities

• Personal property
• Life insurance
• Retirement assets
• Wills and bequests
• Unrestricted
• Donor Advised
• Field of Interest
• Designated
• Scholarship
• Agency
• Investment

Policy

• Spending Policy
• Grants for charitable

activities

• Administrative fees to

support CF operating budget These are community foundation ASSETS Funds are governed by the FUND AGREEMENT Community foundation FISCAL RESPONSIBILITY Fulfilling DONOR INTENT Through this activity, a community foundation gains connections, visibility, knowledge, creditability,

influence and resources to provide COMMUNITY LEADERSHIP

IT’S ALL ABOUT STEWARDSHIP

Stewardship defined: the he car areful ul an and responsibl nsible man anag agement ement an and pr protectio ection

• f

s somethin ething consider idered ed wort rth car aring for an and prese serving rving What are we “stewarding”?

• Finances
• Relations with donors
• Grants

“We ar are al all just temp mporary ary stew ewar ards ds

• f

a an extraor aordina dinary ry commun unit ity asset.”

Ken Gladish, Former President Central Indiana Community Foundation

NATIONAL STANDARDS FOR COMMUNITY FOUNDATIONS

The National Standards include:

• Definition of a U.S. Community Foundation

And standards in each of these categories:

• Mission, Structure and Governance
• Resource Development
• Stewardship and Accountability
• Grantmaking and Community Leadership
• Donor Relations
• Communications

WHY IS A COMMUNITY FOUNDATION DIFFERENT

FROM OTHER CHARITABLE ORGANIZATIONS?

A Community Foundation Has Three Distinct Features

COMMUNITY FOUNDATION ROLES

• Understand community needs
• Re-direct charitable dollars over time and as community needs change
• Can be proactive or responsive

PERMANENT ENDOWMENT BUILDING BROAD, FLEXIBLE GRANTMAKING COMMUNITY LEADER

• Develop relationships with donors
• Invest and protect the principal of donor gifts
• Distribute earnings from these gifts based on charitable intent of the donor
• Many different ways to play a leadership role

PERMANENT ENDOWMENT

CFI ORIENTATION

• Long-term rather than immediate
• Based on donor interest rather than organization’s

program

• Few gifts, generally large, rather than numerous, small

gifts

• High use of planned and estate gifts rather than outright

cash or occasionally securities

• Often involves whole family rather than just one person
• Builds gifts into ever-growing pool of permanent funds

rather than starts over every year

ENDOWMENT BUILDING OR FUNDRAISING?

• Donors can gain maximum tax advantages using

various types of gifts:

• Donors are involved in directing how their

funds support charitable organizations by establishing one of the following fund types:

ENDOWMENT BUILDING

Unrestricted Fund Field of Interest Fund Designated Fund Donor Advised Fund Scholarship Fund Agency Fund Cash Appreciated Stock/Bonds Real Property Bequests

NFP Fundraising VS CF Asset Development

Must convince a donor to give to its specific cause Offer to assist donor with fulfilling their charitable wishes or legacy Annual appeals, continually asking Building long-term relationships Lots of events Small, intimate gatherings Relationship management Stewardship and service

ENDOWMENT BUILDING

More of an OFFER than an ASK

GRANTMAKING

CFI ORIENTATION

The Community Foundation is knowledgeable about local community resources and needs. Areas of interest include:

• Arts and Culture
• Civic and Historical Affairs
• Community Development
• Education
• Environment
• Health and Human Services
• Recreation

BROAD, FLEXIBLE GRANTMAKING

Community Foundations:

• Monitor community needs and leverage other

resources to maximize impact of grant dollars

• Can help to strengthen existing or bring new

and innovative charitable organizations into existence

• Have the ability to re-direct charitable dollars
• ver time and as community needs change
• Proactive vs. Reactive grantmaking

BROAD, FLEXIBLE GRANTMAKING

• Community foundation “responds” to community requests
• Open process, broad criteria
• Keep foundation connected to their community
• Community foundation decides in advance the type of

grants it wishes to make; narrow criteria

• Typically uses an RFP or other invitation

BROAD, FLEXIBLE GRANTMAKING

• A group of individuals determine a solution to a community need

(grassroots project)

• The group does not have 501 (c)(3) status
• They want to use the community foundation as an umbrella for donors to

make charitable gifts

• Fund agreement required, stating charitable purpose or program
• Can be a one-time project or a new program
• Grants made to vendors for specific charitable purpose or program
• Determine liability issues
• Expenditure responsibility required
• Community foundation is operating the program directly

COMMUNITY PROJECT FUNDS

COMMUNITY LEADERSHIP

CFI ORIENTATION

• Charitable organizations exist in every

community and each has its own mission

• Community Foundations can gather various

entities and voices to address a variety of critical issues

• These gatherings can uncover and leverage

resources, including finding individual donors who are interested in these same issues

LEADERSHIP/CATALYSTS FOR CHANGE

• 1. Community engagement
• 2. Bridge for communication
• 3. Provide a product or service
• 4. Proactive grantmaking
• 5. Community convener
• 6. Community initiative

LEVELS OF COMMUNITY LEADERSHIP

• Participating in community activities and
• rganized by other groups or institutions
• Sponsor a community event or activity
• Easy to do
• Everybody wants the CF “at the table” so

be cautious about overextending

• Good way to learn about community,

forge relationships

COMMUNITY ENGAGEMENT

• Bring together a few grantees with

similar missions to create relationships

• Fairly easy to do; not much risk
• Do a little background work to make

sure you are not walking into some bad history

BRIDGE FOR COMMUNICATION

• Provide training or other capacity-building opportunity for

not-for-profits

• Host a speaker on philanthropy or more specific topic
• Involves additional cost and staff time
• More public visibility
• Not much risk
• Speakers can be a draw for prospects and donors

PROVIDE A PRODUCT OR SERVICE

• Allocate a portion of unrestricted

grantmaking to a particular area, need or

• pportunity
• Constructing the “strategy” and defining

intended results can be positive but time- consuming

• Moves into a more political arena both

internally an externally

PROACTIVE/STRATEGIC GRANTMAKING

• Organize a community meeting to discuss an

issue or opportunity

• Much more public
• Needs considerable preparation to go well
• CF will be perceived as having some ability to

follow through on whatever happens

• Think about the end game

COMMUNITY CONVENER

• CF declares it will address a particular issue
• Enables CF to engage broadly and demonstrate a major “value

add” to the community

• Requires significant investment of time and money for which

there is likely no revenue stream

• Very public; CF reputation can suffer if problem is not “solved”
• Possible donor alienation
• Possible political controversy

COMMUNITY INITIATIVE

BOARD MEMBER AND VOLUNTEER RESPONSIBILITIES

CFI ORIENTATION

BOARD LEADERSHIP

• A board of a nonprofit corporation

represents the stakeholders (the community) similar to how the board in a for-profit company represents the shareholders (owners).

• An effective board works in partnership

with a good CEO but should be cautious not to defer policy decisions to the CEO.

• The board must understand the

mission/purpose of the organization and decide on the best ways to fulfill this mission/purpose.

• Duty of Care – Board members must exercise due care in all

dealings with the foundation and its interest.

• Duty of Loyalty – Personal and professional conflicts of

interest, including the appearances of conflicts of interest, must be avoided.

• Duty of Obedience – Obedience to the organization’s central

purpose must guide all decisions.

LAW FOR NONPROFIT BOARDS

• The Board of an Indiana nonprofit

corporation typically has ultimate responsibility for all the activities of the

• rganization (IC 23-17-12-1(b).
• The Board members must act in good faith,

with the care an ordinary prudent person in a like position would exercise and in a manner which the member reasonably believes to be in the best interest of the corporation (IC 23-17-13-1(a).

INDIANA LAW FOR NONPROFIT BOARDS

BOARD ROLES & RESPONSIBILITIES

• To carry out the vision and mission of the Community

Foundation, with respect to the region it serves

• Encourage and responsibly manage charitable dollars
• Review, recommend and investigate grants and their impact
• Be guided by good faith and judgment about the best interest
• f the Community Foundation with respect to matters of:
• Decisions regarding investment of assets
• Charitable distributions
• Relationships with donors
• Tax compliance
• Solicitation of new donor funds and assets

• Board members are ideally positioned to build relationships
• Board members provide visibility because of their various roles in

the community

• Board members provide creditability
• Board members are agents for awareness and creators of

connections

BOARD ROLES

KNOW YOUR FOUNDATION

• Dashboards with key info can help you understand your

community foundation’s activities

• Small ‘pocket cheat sheet’ cards with key info about the

community foundation can help ease your performance anxiety

• Rehearsing an elevator speech
• Role play
• Visit with grantees
• Visit with donors

• Give a gift
• Start a fund
• Put your community foundation in your will
• It’s about the story!
• Learn two grant stories
• Learn two donor stories
• Show your enthusiasm!

PREPARE YOURSELF TO BE A GREAT AMBASSADOR

ELEVATOR SPEECH ACTIVITY

• Break into three groups
• Take 5 minutes to develop an ‘Elevator Speech’ for

your community foundation An elevator speech is a short summary used to quickly and simply define a person, profession, product, service, organization or event and its promise of value to be delivered and a belief from the customer that value will be experienced.

COMMUNITY FOUNDATION INTERNSHIP PROGRAM

CFI ORIENTATION

GOALS:

• Provide college students with real-life work

experiences in Indiana

• To build healthy community foundations in

Indiana

• Encourage and develop philanthropy in

Indiana

COMMUNITY FOUNDATION INTERNSHIPS

WORKPLACE ETIQUETTE:

• Simulation of a real job
• Attendance is important
• Arrive at work on time
• Dress in business attire
• Be courteous and professional
• Communication with supervisor is key

COMMUNITY FOUNDATION INTERNSHIPS

Community Foundation Internship Facebook Page

• The Executive Director must give the interns approval to join the group.
• Interns may connect to the group page by searching “Indiana CF Interns” or

by going to this link: http://www.facebook.com/groups/IndianaCFI/

• Interns may join the group through their personal FB account, but profile

pictures must be socially appropriate or they will not be accepted.

• Interns cannot post anything of a personal nature such as personal

information, pictures, video links, documents, etc. Postings may ONLY relate to community foundation specific work in which they are involved.

• All postings must have the prior approval of the Executive Director.
• The Executive Director must make certain that any materials, videos, etc. are

not subject to copy write limitations. If we think there may be an issue, the item will be removed and we will follow-up with the Executive Director.

• The group will be administered and monitored by the GIFT staff who may

remove any group member or posting at any time.

• You may send questions regarding the group page to Belinda Scholl at

bscholl@inphilanthropy.org or call 317-630-5200 x129.

COMMUNITY FOUNDATION INTERNSHIPS

REPORTING REQUIREMENTS:

• Community foundation program narrative
• Student program narrative (Email/Online)
• How has your internship experience impacted both the

community and the community foundation?

• How did you learn of this internship opportunity?
• Was the CFI internship orientation session useful?
• How has your experience affected the likelihood that you will:

1. Volunteer in your community in the future 2. Contribute financially to charitable causes 3. Pursue a career in the nonprofit sector Due 30 days after last day of internship. Contact Terri Johnson at tjohnson@inphilanthropy.org or by phone 317-630-5200 ext. 128 with questions.

COMMUNITY FOUNDATION INTERNSHIPS

QUESTIONS?