For good. For ever.SM

Community Community FoundationsFoundations

A Vehicle to Increase Philanthropy.A Vehicle to Increase Philanthropy.Nancy Van Milligen Nancy Van Milligen (Community Foundation of Greater Dubuque, President and (Community Foundation of Greater Dubuque, President and

CEO)CEO)

tw ahis a community foundation?is a community foundation?

a platform for community growth

foundationfoundationcommunitycommunity

Community Foundations are non-profit, community corporations created by and for the people of a specific

geographic area.

We are here to help our donors do good work… forever.

Three distinct features of Three distinct features of community foundations.community foundations.

feature

one

Whereas community foundations assist with “pass through” funds the main objective is to build a permanent community endowment.

§ Invest and protect principal

§ Distribute earnings via grants

§ Build permanent community capital

§ Create donor legacies

George and Hallene are still making a difference-

You can too- for good… for ever!

Permanent Endowment

Of endowments

Power Did You Know?

If you create an endowment

worth $25,000 today, in 25

years you will have given your

community $46,172 dollars in

grants and your endowment

will be valued at $69,257.Gift and grant values assume an 8.5% growth in the market and

grants of 4% annually.

feature

two

Making a realreal impact on realreal people

EnvironmentEconomic DevelopmentEducation Arts and Culture Health

Human ServicesHistoric PreservationNeighborhoods

› Support high-impact opportunities and local communities

› Bring organizations into existence

› Redirect funds as appropriate

› Monitor all community needs…

Broad, Flexible Purpose

› Fulfill multiple charitable intents “give through- not a give to” organization

› Gain maximum tax advantage

› Be involved in establishing a fund

feature

three Personalized Giving

Community foundations Community foundations increase philanthropy.increase philanthropy.

Increase philanthropyHow to The role of community foundations

•Help donors make a difference

•Receive a wide variety of gifts

•Create Family Legacies

•Matches charitable intent with community needs

•Assistance in tax-planning and planned giving strategies

•Diverse staff and directors with broad community involvement

The Qualified The Qualified Community FoundationCommunity Foundation

QUALIFIED???What is Being a Qualified

Community Foundation

Both require submission of a binder with documents showing compliance to standards of operation currently being met.

Council on Foundations

•National Standards for U.S. Community Foundations

•www.cof.org

State of Iowa

•To be qualified by IDED, Community Foundations in Iowa meet or exceed the national standards as set by the Council on Foundations.

•www.iowasmartidea.com/endowiowa

qualifiedIDED Qualified Community Foundations

according to IDED

The Affiliate The Affiliate Community Foundation.Community Foundation.

Establishing an

Affiliate Fund

The Qualified Community Foundation The Qualified Community Foundation handles all of the administrative handles all of the administrative

responsibilities of the affiliate fund. This responsibilities of the affiliate fund. This includes accepting gifts, assisting with includes accepting gifts, assisting with paperwork, handling thank you letters, paperwork, handling thank you letters,

and promoting the fund through various and promoting the fund through various publications and initiatives.publications and initiatives.

The affiliate fund has its The affiliate fund has its own Committee structure own Committee structure to make recommendations to make recommendations

for funding, etc. The for funding, etc. The affiliate fund is able to affiliate fund is able to

accept gifts of all types!accept gifts of all types!

The Qualified Community FoundationThe Qualified Community Foundation

The AffiliateThe Affiliate

Community FoundationCommunity Foundation

PartnershipThe The Role of the Qualified

Community Foundation

•The Qualified Community Foundation-

– Provides administrative support

– Manages and invests funds

– Provides technical assistance, marketing, and grantmaking support

– Offers credibility, visibility, planned giving expertise and legal assistance

PartnershipThe The Role of the Affiliate Group

•Affiliate Leadership Group- 5 or more-

– Establishes fund with qualified CF

– Promotes philanthropy

– Committee is advisory to fund/ recommends grants

– Supportive contribution fee to the qualified community foundation

– Does not need to be incorporated or become a separate 501(c)3

to affiliatereasons Becoming an Affiliate

Community Foundation

2 You can immediately benefit as a qualifying community foundation when you affiliate

5 Staff members assist you with questions, concerns, and ideas

4 You will avoid the day to day administrative duties- receipting, donor lists, invoicing of pledges, etc.

3 You will avoid the cost of a separate audit and will not have to file your own 990 forms

1 You do not have to set up a separate 501(c)3 organization- avoid start up costs.

to affiliatereasons Becoming an Affiliate

Community Foundation

7 Assistance with various planned giving instruments

10 Oversight of investment of the endowment- including the investment policy, spending rule, reporting of investment returns, managements agreements, etc.

9 Assistance with scholarships

8 Guidance for grant making procedures and maintain the terms of grant, history , etc.

6 You will have access to templates for flyers, brochures, and other materials

to affiliatereasons Becoming an Affiliate

Community Foundation

12 The Affiliate Community Foundation will be listed and information offered on a website

15 You are able to start leaving a legacy for your community-- immediately!

14 You would be eligible to attend the National Conference of Council of Foundations with reduced cost

13 You would be eligible for membership in the Iowa Council of Foundations

11 You will be listed in the annual report with sub-funds, grants and donors

Clayton County Clayton County Community Foundation- Community Foundation- The Partnership.The Partnership.

PartnershipThe Clayton County Community Foundation

• 5 Communities are joining together

•Dollars will be pooled

•Leadership will be supported at the Regional Economic Development office

•Fundraising will continue

•A hospital, a library and non-profits are beginning to explore endowment funds with the Clayton County Community Foundation

forms of philanthropy in the world today.

fastest-growingCommunity foundations are among the

under which she will never sit, then you know

that civilization has come to that land.

Greek philosopher

plants a treeWhen a person

To learn more:

www.IowaCouncilofFoundations.org(319) 287-9106

-or-

Nancy Van Milligen, President and CEO

www.dbqfoundation.org(563) 588-2700

© 2002 Council on Foundations and Community Foundations of America

For good. For ever.SM