Genuardi Family Foundation

2012 Winter Board Meeting

Executive Director’s ReportFebruary 16, 2012

Cedarbrook Country Club, Blue Bell, PA

Agenda: 11:30 AM -12:45 PM

• Philanthropy Snapshot• 2012 Grant Cycle

– 2012 Budget– Grant Programs & Processes– Proposed Grants

• Genuardi Brothers’ Scholarship at SJU• Communications• Board Policies & Procedural Issues• Calendar items

Through The Lens Of Philanthropy…

A Typical Foundation:

•Family Foundation•Incorporated 21 years ago•5 Board members•Assets of $14.2 million•Makes 37 grants per year•Median grant size of $13,700

GFF:

•Family Foundation•Incorporated 11 years ago•14 Board members•Assets of $25+ million•Makes 125+ grants per year•Median grant size of $5,000

Source: Association of Small Foundations, 2011 Foundations Operations & Management Report, based 532 respondents to a survey conducted in 2011.

Top Important Issues Facing Foundations Today…

•Board/generational succession•Need for greater focus/impact in grantmaking•Lack of/slow asset growth•Too many good proposals

Source: Association of Small Foundations, 2011 Foundations Operations & Management Report, based 532 respondents to a survey conducted in 2011.

12 Years of GFF Grantmaking

2001 $ 67,500

2002 $ 607,326

2003 $ 655,000

2004 $ 977,500

2005 $ 1,145,000

2006 $ 1,150,000

2007 $ 1,214,800

2008 $ 1,360,415

2009 $ 1,165,000

2010 $ 850,000

2011 $ 997,000

2012 $ 855,000

12-year Total: $11,044,541

History of GFF Grantmaking

• Between 2000-2011:– 646 applicants (unduplicated)*– 306 grantees (unduplicated)– 435 applicants who didn’t receive funding*

*Does not include declined LOIs

The Fall & Rise (& Fall) of the Grant Budget…

*25% lower than $1,150,000 estimate PwC projected on 2.10.11, and 2% lower than $873,000 PwC projected on 11.11.11.

$855,000 Grant Budget for 2012

Process Changes This Year…

• Evolved use of technology – Charity check– Online application evaluations– Electronic grant agreements

• Shorter LOI period, earlier grant deadline for Core Grant process resulted in earlier grant review

• Collaborative funding with MCF• Precise classifications (30) versus 4 broad sectors for

comparison• Introduction of two new grant programs:

– Philadelphia Fund– Strategic Initiative

3 Grant Programs & Redefined Geography

• Core Grant Program: – 4-counties, unless invited by a Board member– Includes discretionary– Excludes programs based in and operating solely in Philadelphia– Excludes NJ & DE organizations

• Philadelphia Initiative (new 2012):– For organizations based in and operating in Philadelphia whose

program can serve as a model for replication– By invitation only

• Strategic Initiative (new 2012):– By invitation only– Selected by Board for larger grants to support innovative work

Grantmaking Priorities• Promote the unity, health and well-being of families

– Maternal and child health– Services for the disabled – Medical and dental care

• Improve access to basic services for the most vulnerable in our communities– Food distribution– Housing and homelessness prevention– Emergency services

• Prepare children, youth and adults for success in their schools, in the workplace and in their communities

– Behavioral health– Vocational training and workforce preparation– Youth development

• Invest in systems and sustainable change efforts that will break cycles of poverty, vulnerability and need, and build toward a better future for all people

– Collaborations– Service coordination and delivery– Programs designed to build individual self-sufficiency

Core Grant Statistics 2009-2012

Core Grants: Who Was New in 2011?

Of 184 invited applicants who submitted full proposals …

New vs. Repeat 2012 Core Grantees

*”New” indicates 1st time grantee, but not necessarily first time applicant

Service Area Geography of 2012 Core Grantees*

*Service area was self identified in application; counties not mutually exclusive

Trend: Gen Op Grant $ as a % of Total Grant Budget

Trend: # Gen Op Grants as % of Total # of Grants

Site visits

• 52 site visits this cycle• Started earlier – at approved LOI• Site visited all PF/SI applicants• MH joined by Larry, Skip, Bob, Charles,

Matthew, Beth B., Stephanie & Vicki …thanks!

A few highlights among the proposed 2012 grantees…

2012 Joint Challenge Grantee:VNA Community Services (Abington)

• Joint $15,000 challenge grant offered by GFF and Montgomery County Foundation ($7,500 each foundation)

• Minimum $1000 gifts; goal of building major donor pipeline • This VNA has been a 9-time grantee, earning $87,500

between 2003 and 2011• General operating grant will support access to primary

health care for 5,700 at-risk children & adults:– Children’s Health Centers– Personal Navigator Program – In-Home Services Program – Health Screenings and Counseling

2012 Philadelphia Fund

• Issue area: Homelessness and housing in Philadelphia

• We sought innovative solutions from organizations whose work endeavors to:– Break intergenerational cycles of poverty and

homelessness; and/or– Target the most vulnerable & chronically homeless

5 Philadelphia Fund Invitees

• AchieveAbility• Doe’s Fund’s Ready Willing & Able• Drueding Center/Project Rainbow• Project H.O.M.E.• Whosoever Gospel Mission and Rescue Home

All five applied; two were selected for grants.

Philadelphia Fund Proposed Grantee:Project H.O.M.E.

• Project: Hub of Hope• Serves most vulnerable, chronically homeless

individuals in Philadelphia “where they are”• Innovative approach: started in subway

concourses• Robust partnerships, many volunteers• Goal: end chronic homelessness in

Philadelphia in 3 years• PF grant recommendation: $25,000

Philadelphia Fund Proposed Grantee:Drueding Center/Project Rainbow

• Project: Multi-generational case management for homeless & formerly homeless families

• Niche: single moms ages 18-25 & their kids• Long-term approach – up to 9 years plus after care • Proven results: 92% are housed 3 years out of program• Goal – permanent and stable housing for clients, and

multi-generational care so kids don’t repeat cycle of homelessness

• PF grant recommendation: $25,000

2012 Strategic Initiative

• Issue area: Access to Prenatal, Obstetrical & Infant Care for Low-Income Women & Families; alarming birth outcomes in Norristown in particular

• We sought innovative solutions from organizations whose work endeavors to:– Increase access to prenatal and OB services for low-

income women in 4-county area– Increase access to newborn care for families in 4-

county area

2012 Strategic Initiative Invitees

• Abington Memorial Hospital’s OB/GYN Center and Santerian Newborn Center

• Maternal & Child Health Consortium of Chester County

• Maternity Care Coalition• Montgomery Hospital’s Prenatal Care Clinic• Delaware Valley Community Health’s

Norristown Regional Health Center

2012 Strategic Initiative Invitees

Three of five applied; two were selected for grants.

Strategic Initiative Proposed Grantee:Abington Memorial Hospital’s

OB/GYN Center & Santerian Newborn Center

• One of few hospitals in region that still delivers babies and provides prenatal care, regardless of insurance

• Has a unique newborn care center providing critical care for uninsured 0-3 mos. babies, and secures them a permanent medical home

• 2012 Goals: – Provide prenatal care to 1200 low-income women – Serve at least 350 infants

• SI grant recommendation: $25,000

Strategic Initiative Proposed Grantee:Maternity Care Coalition's

Norristown & Pottstown Early Head Start Programs

• Proactive in-home care to low-income pregnant mothers to receive prenatal care and education, for improved birth outcomes.

• Maintain in-home visits for 2 years after child’s birth• Connect families with insurance and other resources,

including enrollment 300+ kids in CHIP and Medicaid.• Advocacy for system changes to reduce barriers to care

and improve access to care for low-income women and families

• SI grant recommendation: $25,000

Board Ratification of 2012 Grants

• Questions/suggestions?• Call for approval of proposed 2012 grants

BOARD POLICIES & PROCEDURES

•Conflict of Interest Policy•Check writing/signing•Online grant agreements

À Propos…

• “Where there is much desire to learn, there of necessity will be much arguing, much writing, many opinions; for opinion in good (wo)men is but knowledge in the making.”

-- John Milton, Aeropagitica, 1644

Proposed Board Policy: Conflict of Interest

• What constitutes a Conflict of Interest?

– Intersection of Foundation roles & outside roles– Potential for Foundation insiders to benefit from the

foundation in a personal, direct or economic way– If overlooked:

Risks family/foundation reputation, steep IRS penalties

– Recommended by ASF, DVG, COF & IRS

Common COI Examples

• Foundation trustee serves on a grant applicant’s Board• Foundation hires a family member’s business to perform a

service non-essential to Foundation operations (e.g., real estate)

• Foundation makes a grant to a private school/college where a trustee’s child attends

• Foundation trustee’s nephew is employed by a grant applicant

Self-Dealing Rules

• Ensure foundation assets are used for charitable purposes rather than private benefit

• Prohibit a range of transactions between private foundations and their insiders

• Broad, absolute rules carrying significant IRS penalties if broken for:– Foundation– Involved trustee/insider, even if s/he acted unknowingly– Foundation manager who approved transaction

Common Self-Dealing Examples

– Rent: Any payment of rent to an insider, even at below market rates

– Attending fundraisers: OK for trustees/staff if aids assessment of potential grantee, but spouses may attend only if their paid nonprofit full ticket price

– Fulfilling a personal pledge: the legally binding individual pledges of Foundation insiders cannot be fulfilled with foundation funds

COI Helps Manage Conflicts

• Removes bias (or appearance of such)• Puts disclosure and decision making processes in

place• Helps Board and staff:

– Comply with laws– Maintain ethical integrity– Uphold Foundation and Family reputation

Proposed COI Policy

• Annual disclosure of potential conflicts• Executive Committee reviews disclosures, determines

which connections are actual/material conflicts• For actual conflicts:

– Board member in question recuse from decision making– Require competitive bids for significant transactions

• EC will keep written records of conflicts and recusals, documenting unbiased decisions

• Proposal sent to Board for review 2/13/12• Edits• Vote to adopt?

Also procedurally new…

• Check writing–QuickBooks (vs. manual)

• Online grant agreements & electronic award notification–GLM–Mail merged blast email (Mail Chimp)

Coming up soon…– DVG seminar: Mission Related Investing

• Thursday February 23, 2012, 8:30 AM to 1 PM• Where: The Reinvestment Fund (Philadelphia)

– DVG Annual Members’ Meeting• Tuesday March 20, 2011, 3:00 to 6:00 PM• Lenfest Hall at Curtis School of Music (Philadelphia). • Attending thus far are LG, Stephanie, Vicki, Beth B. and Adam.

– MH’s maternity leave dates (approximate)• Monday, March 12 to Friday June 7, 2012

– Scholarship Finalist interviews• Thursday April 12th – approx. 9 AM to 12:30 PM (SC only) • Academy of Food Marketing , Mandeville Hall, SJU

– SJU Scholarship Annual Award Luncheon• Tuesday April 24th (all Board and family welcome – 2nd to 4th gen) • Location TBD

– Spring 2012 Board retreat• Sunday, May 20-Tuesday, May 22. Meetings: Monday May 21st

• Nemacolin Woodlands Resort (Farmington, PA):– Fall Board meeting – need to set date

THANK YOU!