History of Community
Foundations
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First one established in Cleveland in 1914 by
banker Frederick Goff
Devised as a way to keep charitable trusts in use
for the community long after donors passed away
Grew to about 300 by the early 1990’s, then
expanded rapidly
Currently have more than 700 nation-wide with
assets totaling over $44 billion
California has 69 established community
foundations with total assets more than $5 billion
SLOCCF Board 2011
Mission
The San Luis Obispo County Community
Foundation is a public trust established to
assist donors in building an enduring source
of charitable funds to meet the changing needs
and interests of the community.
Vision
As residents of San Luis Obispo County, we
are a thriving, engaged society that is
responsible for ourselves and for one another,
for our diverse communities, and for
maintaining the beauty, productivity, and
sustainability of our environment.
Foundation Goals
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$4 million in Leadership Fund, $2 million in
Community Needs Fund
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Effective grantmakers
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Promoting local philanthropy
Our approach so far
 Thoughtful
& carefully planned
 Early use of consultants
 Access state-wide and national resources
 Not competing with local nonprofits
Marketing the Community
Foundation
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Primarily one-on-one discussions with people of
wealth or community movers & shakers
Specifically, at the professional advising
community: one-on-one meetings, presentations to
firms, professional associations
One newsletter per year
Annual report
Speaking to local service organizations and
community groups
Press releases
Retained Verdin Marketing Ink in 2003
Board Structure
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Maximum of 15 members, self-perpetuating
 Representative of all major geographical
parts of the County
 Terms are three years in length; can serve
no more than 10 consecutive years then
must be off the board for five years
 Officers are President, Vice President,
Secretary and Treasurer
Board structure cont.
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Elected at annual meeting in January, but
President generally serves for two years and
the V.P is the de-facto president elect
 No compensation, except for reimbursement for legitimate expenses
 Board meets first Wednesday of every
month
BOARD MEMBER’S
LEGAL OBLIGATIONS:
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Duty of Care – exercising best judgment
when making decisions (reasonable
caution). Duty of care demands active
participation and thoughtful attention
(learning about programs, attending
meetings, participating in discussions,
making sure you obtain the necessary
information to ask questions).
LEGAL OBLIGATIONS
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Duty of Loyalty – putting aside personal and
professional interests for the good of the
organization. You are expected to focus
exclusively on what’s best for the
foundation. A conflict-of-interest policy,
signed annually by each board member, is
one way to ensure this duty of loyalty.
LEGAL OBLIGATIONS
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Duty of Obedience – means ensuring that
the foundation stays true to its mission and
purpose – overseeing distribution of funds
and monitoring compliance with all
applicable laws and regulations.
Minimum Board
Responsibilities
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Attend meetings and events
 Serve on at least one committee
 Formally introduce the Foundation to a
minimum of three people per year
 Make a meaningful contribution of
whatever size to the Board of Directors
Fund annually
Staff
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Executive Director: (1.0 FTE) Overall management of
foundation, primarily asset development and finance
 Director of Grants & Programs: (.875 FTE) Supervision of
all grants, scholarships & program-related activities.
 Scholarship Program Associate: (.5 FTE) Oversees and
promotes all scholarships; provides some donor services.
 Donor Services Associate: (.5 FTE) Coordinates donor
services.
 Finance Manager: (.5 FTE) All business functions including
disbursements, accounting, deposits and monthly
reconciliations, as well as human resources
 Finance Assistant (.5)
 Office Manager: (1.0 FTE) Administrative support to staff,
gift processing & acknowledgments
 Total FTE = 4.875
Committees
Standing Committees
Development: Design overall asset acquisition plan for
foundation.
Grants: Design and structure grantmaking program,
recommend strategic initiatives.
Finance & Investment: Develop investment policies and
oversee investments. Supervise outside investment manager.
Administration & Personnel: Personnel, governance issues.
Also serves as nominating committee.
Audit: Work with auditor, plan and review audit.
Scholarship: Oversee Scholarship Funds.
Visibility and Marketing: Develop marketing and
communications plans and materials.
Committees cont.
Ad hoc Committees:
Women’s Legacy Fund
Work to develop and oversee the growth of this fund which is held at
SLOCCF
Growing Together Fund Advisory Committee
Partnership of representatives from different groups to identify and
support the needs of lesbian, gay, bisexual, and transgendered community
Children’s Health Initiative Committee
A board representative attends committee meetings of this countywide
group ensuring health insurance coverage for all the children in the county
TEACh Committee
Supports the educational experience of students in the San Luis Coastal
Unified School District.
State & National Context
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All community foundations are locally governed
and controlled
 Nationally, members of the Council on
Foundations, which represents all 62,000
foundations – private, family, operating,
community & corporate
 Annual meeting for 700 community foundations,
usually in the fall. Board urged to attend.
 This year’s meeting will be September 19-21, in
San Francisco
State & National Context cont.
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We are active members in the League of
California Community Foundations
 Meets twice per year, including Board
Chair/CEO retreat
 Also conducts workshops, trainings and
assistance
Local Context
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Initiative of Foundation for Community
Design
 Established in 1998, 11-member Board of
Directors
 Opened doors in 1999, hired staff
 Secured operational grants from Irvine &
Packard Foundations for FY 2000-2011
Accomplishments to date
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100% Board contributions 1999-2010
$30+ million in assets, ~$27 million endowed
Developed over 200 various funds
Distributed over $16 million in grants since 2000
Created Real Estate Foundation of San Luis
Obispo
Licensed to offer Charitable Gift Annuities
Growth of the Endowment
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
98 999 000 001 002 004 005 006 007 008 009 010
9
1 1 2 2 2 2 2 2 2 2 2 2
Number of Funds
250
211
189
200
162
150
128
New Funds
Current Funds
102
100
73
38
50
8
20
07
20
05
20
03
20
01
19
99
0
Grantmaking 2000 -2010
Scholarships
6.1%
Historical
Recreation
0.4%
0.5%
Arts
Health
24.2%
17.1%
Community
Enhancement
12.1%
Human
Services
16.5%
Faith-Based
2.3%
Education
18.6%
Environment
2.2%
Total grants: $15,850,680
Strategies for Building the
Endowment
One-on-one meetings with donors – Board
contacts
 Professional advisor meetings and workshops
 Public Relations – video, cable PSAs, press
releases, newsletters, annual report
 Demonstrate foundation impact through
grants provided, grantee receptions
 Promoting local philanthropy
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What challenges lie ahead
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Find new avenues to potential donors/fund
holders
 Build unrestricted endowment to continue
strengthening local nonprofits
 Fund foundation operations beginning in
2011 until sustainability
What steps have we taken?
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Leadership Fund
 Bridge Fund
 Increasing the Community Needs Fund
Grants & Programs
Janice Fong Wolf, Director of Grants &
Programs
Lee Hollister, Committee Chair
Three types of grantmaking:
•Small responsive grants
•Strategic Grant Initiatives
•Donor-Advised Grants
Strategic Framework
Demonstrate to donors the Foundation’s past
effectiveness with grants
 Demonstrate to donors existing needs in the
community
 Tie grantmaking with development committee via
shared members
 Target areas to fund with larger grants, but
maintain the Foundation’s reputation for diversity
of funding from Arts to the Zoo
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General Grants Program
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Proposals accepted once per year
 Five funding areas: Arts, Community
Enhancement, Education, Health, Human
Services
 Maximum grant amount $10,000
 Organizational Strengthening/Capacity
Building Priority
 Core Operating
Strategic Grant Initiatives
Focused grantmaking with deeper grantee
engagement & larger grant amounts
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Raising a Reader Fund
 Pathways to Adulthood Initiative
 Growing Together Fund
 Women’s Legacy Fund
 Art Inspires!
Donor-Advised Grantmaking
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Due Diligence
 Assist with NPO research
 Facilitate proposals from organizations
Programs
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Isabel P. Ruiz Humanitarian Award
 Paul Wolff Accessibility Advocacy Award
 Scholarship programs
Nonprofit Strengthening
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Data Collection/Dissemination: ACTION for
Healthy Communities, GTI Community Scan,
Focus Groups, SLO County Hunger Study,
Obesity Task Force, Status of Women/Girls
Convene NPO by service type, i.e. Food
Distribution providers, Animal Welfare providers
Nonprofit management workshops
Initiated Executive Directors Roundtable
Bi-weekly column in Tribune Business Section
Financial Accounting &
Investments
Investments
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Finance & Investment Committee, Bill Raver,
Treasurer and Chair
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UBS Golden Gate Institutional Consulting
Accounting/Bookkeeping
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Holly Corbett, Director of Finance
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Michelle Romonek, Finance Assistant
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Kim Ramos, Office Manager
FIMS - Foundation Information
Management System
Bookkeeping at the
Community Foundation
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Double entry; accrual basis;
fiscal year = calendar year
 Audited annually by Caliber
 Funds and fund accounting
Donor-created Funds
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158 Endowed Funds
– Original gifts are never used (“principal is never
invaded”)
– The earnings on the invested principal increases the
fund and is used for granting, fees, etc.
– Annually 4.5% of the average balance for the last three
years is made available for grants (individual fund
agreements may vary)
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51 Pass-through Funds
– All gifts are distributed within a year
– Interest is income for SLOCCF Operating Fund
Board Created Funds
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SLOCCF Operating Fund
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Pass-through Board Funds
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Endowed Board Funds
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Leadership Fund
Community Needs Fund
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Board of Directors Fund
Bridge Fund
Operating Reserve Fund
Restricted Gifts Fund
Grants Fund
Executive Director’s
Discretionary Fund
Sample Financial Statements
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Statement of Fund Activity
– “Fund Statement”
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Statement of Financial Position
– “Balance Sheet”
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Operating Fund Budget Comparison
– “Income Statement with Budget”
Statement of Fund Activity
Statement of Financial Position
Operating Fund Budget Comparison
Investing Foundation Assets
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UBS Golden Gate Institutional Consulting - Kevin
Sanchez & Brian Sharpes, investment consultants
Overseen by Finance & Investment Committee
Investment Policy calls for a balanced portfolio
Emphasis on asset diversification
~ 60% equities, 40% fixed income
Long-term investment horizon: goal 8-10% return
per year