Organizational Endowments:
Recruiting Agency Endowments,
Pitfalls, and Approach
Sunday, October 19, 2014
Kaye M. Ridolfi
Senior Vice President of Advancement
The Cleveland Foundation
KRidolfi@Clevefdn.org
216.615.7141
Ginger F. Mlakar
Senior Counsel & Director, Donor Relations
The Cleveland Foundation
GMlakar@clevefdn.org
216.615.7187
Kristin Warzocha
Vice President of External Affairs
The Greater Cleveland Food Bank
kwarzocha@clevelandfoodbank.org
216.738.2064
Agenda
• Introduction
• Establishing and Growing an Organizational Fund
• Benefits and Challenges
• Organizational Partner Perspective
What is an Organizational Fund?
• Contractual arrangement between the
foundation and a IRC Section 501 (c)(3)
organization
• Established as either an agency account, fully
accessible at any time for any reason by your
Board, or as a true endowment
• Can be effectively combined with your efforts to
build endowment or reserve funds
additional contributions of any size can be made at
any time with full tax advantages
3
Establishing an Organizational Fund
Seed Money
6
Agreement
Partnership
Fund
Fund Growth
Growth
Investment
Growth
Additional
Contributions
Distribution
Seed Money
5
Nationwide Data Summary
► Data Sources:
● CF Insights Benchmark Data: http://cfinsights.org/Tools/BenchmarkingCustomReports.aspx.
Approximately 240 organizations actively update data
● Individual foundation websites, annual reports or other publications
● Columbus Survey 2013 (For total foundation assets)
► Foundations focused on:
● From CF Insights focused on organizations listing endowment/agency data of $30 million or higher
● And/or top 20 foundations by total assets
► Findings:
● CF Insights shows 100+ organizations with organizational fund assets of $1 million or higher
● The foundation with largest assets found was Oklahoma City ~$165 Million, 300+ funds
● Cleveland Foundation Org Fund Assets = >$94 Million and 195+ funds. Fund sizes range from
$10,000 to $40 million (Deaconess)
Benefits to an Organization
Planned Giving
• Helps sustain a nonprofit organization’s financial stability
over the long-term
• Broadens donor giving possibilities
• Opportunity available to diverse group of potential
contributors
Benefits to an Organization
Leveraging Expertise
• Assigned donor relations staff person
• Being part of nearly 200 non-profit partners making
a difference in Greater Cleveland
• Maximize long-term returns by contributing to larger
investment pools exposed to the market
• Customized service
Benefits to an Organization
Increase in Options
• Acceptance of private stock, real estate and other unique
assets
• Direct Giving through Cleveland Foundation website
• Educational forums
• Fund Marketing
 Planned gift presentation and calculations
 Website
 Brochure
Benefits to an Organization
Financial Stewardship
Recordkeeping
Gift
Acknowledgements
to donors
Investment
Oversight
Access to
Online Service
Summary of Partnership Opportunities
*build endowment funds that grow and benefit our community forever.
*offer donor involvement and help donors create an individual or family legacy.
*local organization meeting a broad range of changing local needs.
*provide a simple way to fulfill charitable interests, with low-cost administration.
*deliver personalized donor service that is flexible and responsive to unique needs.
*accept a wide variety of assets.
*offer maximum tax advantage.
*preserve donor intent even when community needs and organizations change.
*known for prudent stewardship and investment practices.
*offer full disclosure and transparency.
Challenges
• Competition
• Other providers
• Resistance to change
• Fees
• Profitability
• Increased staff time
• Agency vs. endowment funds
Organizational Partner Perspective
Greater Cleveland Food Bank
Organizational Partner Perspective
Greater Cleveland Food Bank
Who Are We?
• Founded in 1979; Currently 100+ employees, $20 million
budget
• Programs include mobile pantries, children’s nutrition
initiative, summer food service, and SNAP outreach.
•
Coordinates annual Harvest for Hunger campaign
• Largest hunger relief organization in Northeast Ohio;
Serving six counties – Cuyahoga, Lake, Geauga, Ashtabula,
Richland, and Ashland
• Provided access to nearly 45 million meals in 2014 through
more than 750 partner agencies
Organizational Partner Perspective
Greater Cleveland Food Bank
Why we affiliate with the Cleveland Foundation:
• Financial management expertise and
guidance
• Planned giving and marketing services
• Reputation
Organizational Partner Perspective
Greater Cleveland Food Bank
What has happened since:
Endowment Growth
2008
$229,002
2009
$243,222
2010
$344,696
2011
$440,356
2012
$444,161
2013
$606,119
2014
$965,919 (as of
6/30/2014)
Organizational Partner Perspective
Greater Cleveland Food Bank
What has happened since:
Growth of Tomorrow’s Harvest Legacy Society
Currently 75 members (46 living, 29
deceased)
More than $600,000* in realized planned
gifts in FY14
(*includes single estate gift of more than $500,000)
Questions?