July 25, 2006 Mr. William Shofner Wells Fargo Northern California Region MAC A0735-011 355 Memorial Way Chico, CA 95926 Dear Mr. Shofner: Enclosed is our proposal entitled: “California SAGE: An Entrepreneurship and Community Service Program Linking High Schools to Universities. Thank you for considering our request for funding in the amount of $7,452 from the Wells Fargo Foundation. California SAGE is an innovative model that (1) links secondary students to university mentors and the business community, (2) challenges students to complete real-world projects related to entrepreneurship and community service and (3) showcases the projects in a competitive “tournament” which recognizes outstanding high school teams based on their creativity, innovativeness and effectiveness. With Wells Fargo funding, we can take California SAGE to new heights. The partnership between Wells Fargo and the Chico State University Foundation contributes to one of Wells Fargo’s primary education areas in that SAGE is a “program that encourages school partnerships with parents and guardians, the business community or the community in which the school is located.” For example, each participating SAGE high school is awarded “points” for how well it recruits local business, civic and community leaders to sit on their advisory boards. At last year’s California SAGE competition on April 28-29, 2006 we enlisted over 80 judges from the community to help us evaluate the quality of the entrepreneurship and outreach projects completed by each high school. Judges included Chico Mayor Scott Gruendl and members of Congressman Wally Herger’s staff. I am also very happy to report that, for the first time, both Pleasant Valley High School and Chico High School participated in California SAGE. Specifically, the $7,452 grant funds will be used to: (1) sponsor the Friday Night Welcome Reception for Judges and Teachers ($1,000); this reception will be held on Friday night, April 27, from 6 pm to 9:30 pm at the Chico Boys & Girls Club; (2) provide lunches for students, teachers and guests on Saturday, April 28 (150 * $8 = $1,200), (3) defray the costs of preparing the judges’ packets which contain judging instructions ($500); (4) co-sponsor the Saturday night awards ceremony (200 * ($21/3)) = $1,400; other co-sponsors include Allstate and Walgreens); (5) defray the costs of the California SAGE champion high school team to participate in the USA SAGE national competition in New York City on May 24-26, 2007 ($1,000); (6) scholarships to two “Outstanding Chico State SAGE Mentor” ($1,000);(7) defray the costs of SAGE T-shirts ($800); and (8) charge mandatory 8% fee for project administration as required by the University Foundation($552 = total direct costs of $6,900 * .08). As an official SAGE sponsor, we will display a Wells Fargo banner at the Welcome Reception and at the Awards Ceremony and include Wells Fargo as a sponsor on all press releases and media. We expect approximately 250 guests (80 judges, 50 spouses/guests, 30 teachers, and 40 CSU, Chico students) to attend the awards ceremony. Also, on Saturday, we will name one of the competitive SAGE leagues after Wells Fargo (e.g., Wells Fargo Freeway). You should note that Wells Fargo generously contributed $2,500 to California SAGE last year. Included with this cover letter is a packet that includes: A. B. C. D. E. A brief proposal providing more details about California SAGE Sample annual report completed by last year’s California SAGE participants Sample press received about SAGE A copy of the University Foundation’s 501 c 3 tax-exempt letter SAGE Business Plan dated July 2007 In closing, the Chico State University Foundation is a non-profit, tax exempt 501(c) (3) charitable organization. California SAGE is a program within the University Foundation. The Federal Tax I.D. is 95-1230865. One of the programs administered by the University Foundation is Students for the Advancement of Global Entrepreneurship (SAGE). We invite Wells Fargo to be one of our external partners by funding this grant request and, thereby, availing those benefiting from this grant to many resources available on our university campus. Sincerely, Dr. Curtis L. DeBerg SAGE Project Director P.S. If the Wells Fargo Foundation would like to entertain a proposal for USA SAGE (which includes 10 states, not just California), we will be happy to submit a proposal upon request. Alternatively, details can be found in the SAGE Business Plan included in the accompanying packet. California SAGE: An Entrepreneurship and Community Service Program Linking High Schools to Universities I. How the Funds Requested Will Serve a Low- to Moderate-Income Population This proposal request $7,452 from Wells Fargo. The requested funds will serve approximately 20-25 California high school “SAGE” teams, directly affecting 500 students in grades 9-12, of which about 50% will come from low- and moderate-income backgrounds. The project headquarters are located on the campus of California State University, Chico, in Butte County. SAGE is an acronym for Students for the Advancement of Global Entrepreneurship, and this program addresses a real need in our schools. SAGE is needed because financial concepts and entrepreneurship are not taught well in the schools. According to the Jumpstart Coalition for Personal Literacy, 50% of U.S. high school seniors don’t make the grade in their knowledge of managing money, investing, and savings. Also, a recent Gallup survey found that, even though 70% of high school students want to start their own business, more than half acknowledged that their understanding of business issues is poor. “The sad fact is that most children today receive no formal education about business and free enterprise. Our schools aren’t required to teach it and most teachers don’t understand it themselves. Unless we start today to correct this situation, the free enterprise system will continue to be at risk tomorrow” [Think This is Kid Stuff? Think Again..., National Federation of Independent Business Education Foundation]. California SAGE promotes entrepreneurship and community service by linking CSU, Chico university students to California secondary schools. A total of 20-25 high schools will participate in the SAGE program in spring 2006, with the culminating event taking place on April 27-28, 2007 on the Chico State campus. Approximately half of participating high schools are from inner cities (e.g., five schools from Oakland are participating: Castlemont, Fremont, McClymonds, Oakland Tech, Oakland High. Also, several high schools from rural, communities are included, e.g., Yreka, Woodland, Willows. We are also pleased that we added Chico’s two main high schools last year: Pleasant Valley High School and Chico High School. IIa. What is SAGE? What do we do? SAGE’s vision and mission are: Vision Creating better futures through business entrepreneurship, social entrepreneurship and community service. Note that the first word in our vision statement is creating—be it the creation of a new product, a new service or a better way of doing things. Business entrepreneurs (i.e., “forprofit” entrepreneurs) stimulate economic growth and improve standards of living through their creativity, innovation and hard work. The value they add is measured by profits. Social entrepreneurs are also innovators, but their ideas often address major problems in their communities. The value they add is much harder to measure, but the problems they address are often much more difficult to solve. Mission To advance youth entrepreneurship and community service around the world, emphasizing ethical business practices, social responsibility, civic engagement and environmental awareness. The first part of our mission contains the words “entrepreneurship” and community service.” We believe that all “for-profit” entrepreneurs should return some of these profits back to the community, because it is the community that provides the market for the entrepreneur’s goods and services. SAGE’s main supporters currently include Walgreens and Allstate. Other supporters include Umpqua Bank and Tri-Counties Bank. This proposal meets three primary objectives of the Wells Fargo Charitable Contributions program under the Education category: 1. It provides financial support to 9-12th grade institutions, working in collaboration with the Chico State University Foundation (a 501 c 3 organization), promoting financial literacy and basic business skills; 2. Many of the high schools participating have a disproportionately high number of lowand moderate-income students; 3. This program emphasizes high school partnerships with local colleges, universities, business organizations and civic leaders. IIb. Why College Students? One goal of the SAGE program is to make a difference in the community by learning, practicing, and teaching the principles of entrepreneurship and community service. While completing community outreach projects, the students develop teamwork, leadership, and communication skills. The Chico State outreach projects are aimed at helping those they serve achieve economic self-reliance. IIc. Whom We Serve The “service-learning” projects completed by Chico State business emphasize the teaching of financial literacy and entrepreneurship skills to at-risk and disadvantaged teens from alternative high schools, charter high schools, business academies and juvenile hall. Many of the schools are classified as Title I schools, meaning that they are located in economically disadvantaged neighborhoods. The university students has taught their younger protégés how to start, finance, operate, and market their own micro-enterprises. Business ethics are emphasized throughout. At the end of the program, many of the younger students have the opportunity to sell their goods at a public trade fair. The majority of the high schools that participate in SAGE will come from underserved communities. For example, consider the high schools that participated in California SAGE the past two years. California SAGE directly impacted 18 high schools and 240 students from the following high schools (many of which are in traditionally-underserved areas of California). Benicia High School Castlemont High School (Oakland) Chico High School Dixon High School Golden West High School (Visalia) Highlands High School McClymonds (Oakland) Montclair High School Oakland Tech Pleasant Valley High School Sacramento High School (Bus. Academy) Santa Monica High School South San Francisco High School Will C. Wood High School (Vacaville) Willows High School Woodland High School Youth Empowerment High School (Oakland, formerly Fremont High) Yreka High School IId. History SAGE was founded nine years ago under the name “Cal-High SIFE.” This program matched college business students with underserved and/or economically disadvantaged high schools. The college students became coaches and mentors, helping high school students develop skills to enter today's workforce or go on to college. In 2003/2004, 17 high schools and over 300 high school students (mainly from inner cities) came to Chico State to present the results of their entrepreneurship and community outreach projects. Each high school was placed into a competitive league, much like athletic competitions. Teams were judged on the creativity and innovation of their projects; judges were recruited from the civic, education and business communities. Four years ago, the name was officially changed from Cal-High SIFE to Students for the Advancement of Global Entrepreneurship (SAGE). IIe. Major Accomplishments The SAGE program has received outstanding state and national attention. For example: 1. George Lucas Educational Foundation – http://glef.org/businesslearning.html Here, you will see a 10-minute video documentary, accompanied by an article titled, “Students Make a Business of Learning.” This article and video were launched in September 2003. 2. Entrepreneur Magazine – In Editor Rieva Lesonsky’s June, 2003 Editorial titled, “Higher http://www.entrepreneur.com/Magazines/Co py_of_MA_SegArticle/0,4453,309494----1,00.html Learning,” Rieva made some very positive remarks about SAGE. 3. TeenStartups.com – http://www.entrepreneur.com/mag/article/0,1 539,310490,00.html This website, owned and operated by Entrepreneur Media, contains an article titled, "Starting a Business the SAGE Way." This article was written in July 2003. 4. Global Education Partnership – http://www.geponline.org/GEP%20News/Int ernational%20SIFE%20Champions.shtml This article was written right after the Inaugural SAGE World Cup in Kansas City, Missouri, on May 13, 2003. It is titled, “Oakland Youth Entrepreneurs Win International Entrepreneurship Competition.” 5. PPAS System http://www.afterschool.org/search/online/stor y.cfm?submissionID=348&log=direct SAGE has been nationally recognized as a featured program in the “Promising Practices in Afterschool System.” The PPAS System is an effort to find and share good things that go on in afterschool programs countrywide. Funded with support from the Charles Stewart Mott Foundation, it is one of approximately 100 practices that have been recognized as promising. The SAGE activity is currently the “Featured Program” (until May 30, 2004). 6. Mongabay.com http://news.mongabay.com/2005/0718-sage.html Mongabay.com aims to raise interest in wildlife and wildlands while promoting awareness of environmental issues. Originally the site was based around a text on tropical rainforests ("A Place Out of Time: Tropical Rainforests - Their Wonders and the Perils They Face") that Rhett Butler developed four year period (1996-2000), but today the site has expanded in a number of different directions. In 2004 Butler developed WildMadagasacar.org to focus on the incredible biodiversity of Madagascar and in 2005 he released a kids’ version of the rainforest site. The SAGE article was included in May 2005. 7. The Corporation for National & Community Service Resource Center http://epicenter.nationalserviceresources.org/inde x.taf?_function=practice&show=summary&Lay out_0_uid1=33578 By invitation, SAGE was asked to submit information to the Corporation for National and Community Service. After review, the Corporation decided to list SAGE as an “Effective Practice: Integrating entrepreneurship education with servicelearning programs.” This web page is for teachers, instructors, program developers and others who help students of all ages find their own entrepreneurial opportunities. The Bay Area Coalition for Equitable Schools (BayCES), is a nonprofit organization that assists schools, school districts, and community groups in the work of creating or redesigning schools to elevate overall achievement. BayCES is committed to the transformation of education - to ensure that all students can reach high standards and that no student is poorly served due to her/his race, gender, home language, or economic status. BayCES has taken the lead locally and in the national school reform movement in three key areas: Equity through data-based inquiry and collaboration at multiple levels — classrooms, schools, and districts Personalization through small schools Community partnerships to leverage district-level policy change and to build authentic school-community connections. This website provides speeches, photos, and results of 2006 National SAGE Competition in Abuja, Nigeria. 8. Consortium of Entrepreneurship Education – http://www.entre-ed.org/_arc/d-comps.htm#s 9. The Bay Area Coalition for Equitable Schools http://www.bayces.org/newsletter/april/apr_fe ature.htm 10. The U.S. Embassy in Nigeria: http://usembassy.state.gov/nigeria/wwwhsage 2006.html 11. Inc.com – http://www.inc.com/criticalnews/articles/2006 05/sage.html 12. Nigeria SAGE– http://www.sagenigeria.org 13, Santa Monica Daily News http://www.smdp.com/article/arti cles/1465/1/Samohi-studentstake-top-honor-in-nationwidecompetition/print/1465 12.http://www.khmerkrafts.com/Khm erKrafts/TripJournal.aspx This article describes the results of the May, 2006 USA SAGE competition in Brooklyn, NY Nigeria SAGE is now an officially-recognized NGO by the Nigerian government. This article describes the success of the USA SAGE Champion from Santa Monica High School This web site describes the success of the First Runner Up in the USA SAGE competition from Gem State Academy in Idaho IIf. Detailed Description of the Program We Wish Wells Fargo to Consider Funding California SAGE - This program promotes entrepreneurship and community service by linking CSU, Chico students to California secondary schools. We expect 20-25 high schools to participate in California SAGE, with the culminating event taking place on April 27-28, 2007 on campus. At least half of these high schools are from inner cities, and several high schools will come from rural, economically-challenged communities. University student “mentors” are assigned to individual high schools to help them complete problem-based learning projects. Throughout each year, the high school SAGE team completes at least one project under each of the following two broad categories: entrepreneurship and community service. Moreover, teams are also judged favorably if they integrate civic engagement, environment, and global aspects to their projects. Each SAGE school is encouraged to recruit a Business Advisory Board. At the end of the year, these projects are showcased at the California SAGE competition in April. Judges at the California SAGE competition include successful entrepreneurs, business leaders, professors, civic leaders and graduate students. Thus, SAGE is an ideal program for encouraging school partnerships with the business community and the community in which the school is located. Why is SAGE Groundbreaking? SAGE is groundbreaking because high school students don’t compete for grades; rather, they compete for the same type of recognition that comes with interscholastic sports. Only SAGE is not a game—it’s real business, and students vie for the title of USA SAGE Champion based on the effectiveness of their projects. SAGE also cuts across boundaries between secondary education and higher education; between education and business; between business and government; and, of equal importance, between countries. One of SAGE’s goals is to give all participants a global perspective along with local insight. One of the unique aspects of this program is that university student mentors/consultants help their assigned high school SAGE team to identify, deliver and assess projects. The competitive element incorporated into SAGE cannot be overstated. This structure also allows teams to “benchmark” their best projects against other secondary schools. Unquestionably, one of the strongest motivators for a young person is positive peer pressure, and the SAGE structure, in a subtle yet powerful manner, has incorporated this motivational technique into a fun and competitive setting which has been so successful that the program continues to grow. IIg. Amount of Funding Requested from Wells Fargo We seek $7,452 from Wells Fargo, representing 23.7% of the total cost of the project. The remaining 76.3%% has been obtained from: (1) Walgreens Foundation ($5,000), (2) Allstate Foundation ($10,000), (3) GotVMail, Inc ($5,000), (4) Tri-Counties Bank ($1,000), (5) Umpqua Bank, ($1,050), (6) Cisco Enterprises ($1,000), (7) RSC Associates ($1,000), and (8) Lotspeich Accountancy ($1,000). Specifically, the $7,452 grant funds will be used as follows: (1) $1,000 – to sponsor the Friday Night Welcome Reception for Judges and Teachers; this reception will be held on Friday night, April 28, from 6 pm to 9:30 pm; (2) $1,200 – to provide lunches for students, teachers and guests on Saturday, April 29 (150 * $8 = $1,200); (3) $500 – to defray the costs of preparing the judges’ packets which contain judging instruction; (4) $1,400 – to co-sponsor the Saturday night awards ceremony (200 * ($21/3));other cosponsors include Allstate and Walgreens); (5) $1,000 – to defray the costs of the California SAGE champion high school team to participate in the USA SAGE national competition in New York City on May 25-27, 2006; (6) $1,000 – to provide scholarships to two “Outstanding Chico State SAGE Mentors”; (7) $800 – to defray the costs of SAGE T-shirts ($800); and (8) $552 – to charge the mandatory 8% fee for project administration as required by the University Foundation ($552 = total direct costs of $6,900 * .08). IIh. Expected Outcomes With each high school participating, we anticipate that two university students will be assigned as their mentors, thereby directly impacting 40 university students. Moreover, we expect each high school to recruit an average of five Business Advisory Board members, meaning that we will directly involve approximately 20 x 5 = 100 leaders from the local business and civic communities, including from Wells Fargo branches. Quantifiable and reportable outcomes include: The quality and quantity of entrepreneurship and community service projects completed; number of high school students participating; number of college mentors participating; involvement of the business community in mentoring and advising capacities. A unique feature of this project is that the assessment of the projects is made by the business and civic leaders who participate as judges. IIi. Contact, Mailing and Telephone Information Dr. Curtis L. DeBerg SAGE Project Director College of Business California State University Chico 95929-0011 cdeberg@csuchico.edu; phone: 530.898.4824