March 20 - 22, 2017 The Peabody Memphis...March 20 - 22, 2017 The Peabody Memphis Getting Ready - Check your funder privilege at the door •Build trust / be trust worthy •Invest

March 20 - 22, 2017 The Peabody Memphiswww.adnetconference.org

March 20 - 22, 2017 The Peabody Memphis

www.adnetconference.org


The Secret Sauce for Building Designated (and Agency) Endowments

Mary M. Holmes

Cumberland Community Foundation


Session outline

• Overview of Cumberland Community Foundation’s 2020 Development Plan?

• Getting Ready• Why? Research for CFs and NPOs• Making the Case• Leveraging Community Foundation Roles• Building a Toolkit for Success• Wrap Up / Q & A


2020 Development Plan: What is CCF Doing?1. Helping local nonprofit

organizations build sustainable support for their missions

2. Serving donors by making it easy to support their favorite charitable causes, forever

3. Growing community foundation assets by focusing on a product that contributes to the bottom line


Getting NPOs Re-focused on Their Important Missions


Fayetteville Symphony Orchestra - Video


2020 Development Plan

• Emphasis on designated and agency endowments

• Drawing from the many roles of a community foundation

• Making the case for endowment building and planned giving in the community

• Growing sustainable resources for flagship nonprofits


Getting Ready - Check your funder privilege at the door• Build trust / be trust worthy • Invest in NPO success (training, general

operating support, conference support• Honor difficulty and importance of their work• Programs and grant cycles designed to

maximize impact and reduce process• Application process (LOI with early illumination)• Scaled reporting requirements• Partnerships formed for ongoing programs• Connection to donors through site visits


Getting Ready - Transparency in Agency Endowment Relationship

• Irrevocable gifts to CCF• Not an “investment service”• Not spending time on agency endowments

that come and go (funds are irrevocable)• The nonprofit board that raises the $$ has

more control over their future board if they give up control to CCF

• Not all good NPOs are prospective partners


NPO Focus Groups on Readiness and Barriers• NPO self-reported readiness ranged from 0

to 7• Staff scored staff higher than they scored

their boards• Board members scored board higher than

they scored staff• # 1 concern by board and staff = erosion of /

loss of current funding• Opportunity: Make it simple, provide tools,

set deadlines, support the process


NPO Focus Groups on Readiness and Barriers• “What support do you need to move

forward?” • Training for our board• Commitment / agreement from the board• Training for the staff• Communications tools• Technical support• Operating support in case of current gift

displacement

• The focus groups provided a road map for the design of our program


CCF Why?

• Completed 25th Anniversary Challenge (unrestricted endowment)

• Donor financial uncertainty after 2008 market downturn

• Change in estate tax exemption made less than 1% of US estates taxable($10.9M/couple)

• CCF needed a new / repeat giving opportunity, accessible to donors of all abilities


CCF Why? Product Mix and the Bottom Line – FSG Study


NPO Why? Research and Giving Trends• Intense fundraising by national charities•Gilded Giving: Top-Heavy Philanthropy in an Age of Extreme Inequality, Institute for Policy Studies•Giving USA 2016•Local observation


NPO Why? Wealth is Leaving Our Communities


NPO Why? Wealth is Leaving Our Communities


Lessons from Universities on Development Success• $$ resources applied to asset

development• Major donor leadership • Clearly articulated campaigns• Deep bench on staffing development• Natural constituency (alumni and

friends)• Campaigns, campaigns, campaigns


NPO Why? National Trends on Giving

• Top heavy mega-giving

• Giving growth has gone to sectors favored by wealthy

• Ten year declines in deductions from lower-income donors AND in number of donors


NPO Why? Ten Year Change in Deductions by Income Level


NPO Why? Ten Year Change in Number of Donors


Gilded Giving: Good News for Community Foundations

• Community foundations support all recipient categories

• Donor advised funds have interest areas / grant histories

• Partnerships with specific nonprofits = opportunities


Donor-Centered Development Strategy• Designated / agency endowment strategy

provides a unique, donor-centered giving opportunity to make gifts of any size to existing agency endowment funds

• And/or create new designated funds that are easy / low cost to administer

• Donor-centered• Donor interests• Donor timing (give now and/or planned gifts)• Donor’s ability to give


How America GivesPhilanthropy.Com• Income bracket

$100k up to $200k

• Giving ratio 4.05% • Gave $43M in

2012• Average

contribution $6,093


How America GivesPhilanthropy.Com• Giving at all income

levels• Income up to

$25,000 donated $7.8M in 2012

• Open the door to bequests, giving to existing funds, broad appeals

• Donor-centered


Making the Case to NPOs: Giving USA 2016• Individuals 71% $264.68 B• Bequests* 9% $ 31.76 B• Foundations* 16% $ 58.46 B

• ½ created by individuals

• Corporations 5% $ 18.46 B• ½ is “in kind” giving such

as pharmaceuticals

*101% due to rounding


Making the Case to NPOs: Giving USA 2016• 88% to 90% of non-gov’t giving comes from

individuals (or their estates)• Through endowments, nonprofit can make

the BIG SHIFT • from dependence on uncertain grant

sources that require on-going reporting/ re-application and may cause mission drift

• to reliable, annual endowment support from designated funds created by individuals


Making the Case to NPOs: Giving USA 2016• Long term supporters want to make major gifts

• National charities and universities are asking often• Well-staffed campaigns• Well-funded, long term approach• Consistent, targeted planned giving programs

• If our local nonprofit organizations do not ask for endowment gifts/ planned gifts, their supporters will make those gifts to other organizations, often outside of the community


How to Make the Case to NPOs• Share the donor research / trends• Develop allies on your board (ambassadors)• Offer tools for moving forward• Build confidence • Push, pull, persist• CELEBRATE SUCCESSES / TELL STORIES• Align CF goals with NPO goals

• Check your conflicts of interest, manage allegiances


Leveraging Community Foundation’s Many Roles• Relationships / Roles:

• Funder / grantor• Fundraiser / Connector to DAFs• Ambassador • Trainer, coach, advisor• Convener / collaborator• Endowment manager / Sustainability builder

• Each of these roles provides different opportunities for supporting endowment building


Community Foundation Role: Funder / Grantmaker• Endowment matching grants• Communications mini-grants (brochures,

videos, ad placement) • General operating grants during campaign

(annual gift displacement assurance)• Grants for staff development / training• Grants for dedicated development staff


Community Foundation Role: Fundraiser

• CF’s donor relationships & development knowledge

• CF’s database• CF’s interest area coding• DAF grant history for interest areas• DAF grant history for a specific organization • DAF grant history for similar causes• Relationships with DAF advisors / founders



• Donor advised fund grant history report• “You have given $xxx,xxx to The CARE Clinic

over the last 15 years. Would you like to continue that support through a gift in your will?”

• Serve the donor by helping them support their favorite causes, forever

• Designated endowments with one designee or Exhibit A with their priority groups


Community Foundation Role: Fundraiser / donor services

Size of annual gift Endowment gift to replace at 4% payout

Endowment gift to replace at 5% payout

$100 $2,500 $2,000$250 $6,250 $5,000$500 $12,500 $10,000

$1,000 $25,000 $20,000$2,500 $62,500 $50,000$5,000 $125,000 $100,000

$10,000 $250,000 $200,000$25,000 $625,000 $500,000

$100,000 $2,500,000 $2,000,000



• Ability to find a challenger / match• Consultant role with donor • Third party objectivity of CF• Stewardship systems (gift acceptance

policy, gift processing systems, complex gift management, other infrastructure, sustainability)



• Board members as peer-to-peer encouragers• CF “Endowment Ambassadors” to NPO’s

endowment committee

• Donors as volunteer endowment advocates

• CF staff as mentors for NPO development staff

• Expand the development team!


Community Foundation Role: Trainer, Coach, Advisor

• Endowment partner status for NPOs• Presentations to board, staff, and donors • Introduction to Endowment and Planned

Giving • Let’s Go: Endowments Grow! sessions• Planned giving platform (Stelter)

www.cumberlandcf.planmygift.org


Community Foundation Role: Trainer, Coach, Advisor

• Professional advisor training (CLE / CPE credits) • Kathryn Miree event

• One-on-one calls on professional advisors (top twenty by board members and then staff)

• One-on-one mentoring for NPO development staff


Building Your Toolkit: CCF Levels of Engagement • Determines eligibility for endowment support

• L1 – Getting started (training, events, etc)• L2 – Established irrevocable agency fund at CF /

endowment partnership (brochure, video)• L3 – Campaign with a goal, giving by their board

(matching grants, campaign support grants)

• A transparent way to communicate priorities for different funding opportunities

• A road map for nonprofits, progression plan

• Self screening / prevents us from saying “no” to intended partners


Toolkit for L1

• Introduction to Endowments and Planned Giving

• Overview of the planned giving platform www.cumberlandcf.planmygift.org

• On site training for volunteers and staff • On site endowment committee training (“Blue

Sheet” tips for actions, steps) • Speaker events• Engage, educate, inspire donor/volunteers

who attend


Toolkit for L2

• 20 minutes on their board meeting agenda annually• Present any designated/ agency fund grants• Tell donor stories incorporating how to give• Make the case for asking for planned gifts and

endowment gifts

• 10 minutes at their new board orientation • One hour with their staff annually • 10 minute “call to action” presentation to their

supporters at one of their events


Toolkit for L2

• Communications toolkit and training• Bequest language• Beneficiary designation language• Organization-specific designated endowment

fund template• Organization-specific “How to Give” document• Pre-printed envelopes• Memorials and honor gift forms• Facilitated prospect identification meeting• On-line giving page (NetworkForGood.Org)


Toolkit for L2

• Testimonials and stories• Content for newsletters / websites • Organization-specific online giving link

(processing through NetworkforGood.Org)• Volunteer talking points


Toolkit for L2 –Communications Mini-Grants• Endowment brochure mini-grant

• $2,500 preset contract with CF selected marketing vendor, includes printing 500 brochures, must include required giving language, grant paid to NPO

• Endowment video mini-grant • $2,700 preset contract with video company,

includes three minutes, up to three people interviewed, required giving language to scroll at end, paid to NPO

• Fayetteville Symphony Orchestra example


Video: The Fayetteville Symphony Orchestra• Template contract with one vendor• video• Support for endowment concept• Personal statement - why• How / what they gave• Endorse the community foundation• Stewardship• Not scripted (except for the scrolled giving

instructions at the end)

https://youtu.be/u4_owU5Y0kk


Toolkit for L2 – CF Board Member “Ambassador”• The secret weapon - your past and present

board members• Confidence in the community foundation• It doesn’t feel like fundraising• Helping someone support their favorite thing• Keeps board member engaged with a

development assignment• Another giving opportunity for the CF board

member


Toolkit for L2 – CF Board Member “Ambassador”• They will give more, engage fully as donors

themselves, stay connected to the CF • “Green Sheet” - Suggested activities for

ambassadors • Semi-annual meetings to prompt action,

share communications tool kit and inspiration• Let’s Go: Endowments Grow! sessions


CF Board Member as Ambassador GailPerry.Com

identify

involve

warm up

ask

followup

thank


Toolkit for L3 – Lilly Endowment Challenge Grant• Dollar-for-dollar matches for new gifts to the

agency or designated endowments (received, not pledged) usually $25,000 or $50,000

• Grant agreement: A reconfirmation that gifts are irrevocable, the funds are true endowments, and other terms of match

• Grant check is payable to the CF as an addition to the agency endowment fund


Toolkit for L3 – General Support During Campaign• Grants up to $10,000 for general operating

support during an endowment campaign• Must be eligible for Community Grants and

have an active campaign with goal, Level 3 per Levels of Engagement Guidelines

• Mitigates concerns about displacement giving

• Acknowledges expected expenses of NPO staff time, events, and communications


Example Partnership –

Child Advocacy Center Endowment

• Matching grant

• Support for planning committee

• Language for their solicitation letter Feb. 2015

• Pledge form design

• CCF return envelope

• On-line giving page

• NPO led asking, giving, …

• Celebration April 2016

• $50,000 match by CCF

• Four new legacy gifts


Donor Intent and the Unique Role of the Community Foundation

• Variance power• Stewardship• Flexibility• Customization (specific program, branch,

service, contingency plans) • Personalizing the donor legacy• Oversight and objectivity• Stability of the community foundation


A Few Donor Stories

• Col. Clifford, Martha, and Robert Duell Charitable Endowment for CFBG ($200,000)

• Friends of Vision Resource Center ($100,000)

• Agnes Jacob Wilkins Memorial Endowment for Nursing ($10,000)

• The Fouad K. Fakhouri Endowment for Artistic Excellence ($1,000,000)


Adapt to Your Community’s Needs and… Just do it!• People want to make a difference• People want to give• People trust the community foundation• The nonprofit organizations need support,

nudging, encouragement, tools• Professional advisors are very open to this

approach (not “self serving” in their view) • A win/win for the community foundation and

the nonprofit organization


Q & A

Cumberland Community Foundation, Inc.Fayetteville, NC (910) 483-4449

www.cumberlandcf.orgQuestions about strategy / development:

Mary M. Holmes, Executive Director [email protected]

Example toolkit / forms:Soula M. Bantsolas, Donor Relations Manager [email protected]


Video links if there is internet accessOn arrival: Get off the fundraising wheel:YouTube Linkhttps://youtu.be/fd8vl5LJoM8

Closing: The Fayetteville Symphony Orchestra moving to sustainability:

video

https://youtu.be/fd8vl5LJoM8?t=10s

https://youtu.be/fd8vl5LJoM8

https://youtu.be/u4_owU5Y0kk

Documents

March 20 - 22, 2017 The Peabody Memphis...March 20 - 22, 2017 The Peabody Memphis Getting Ready - Check your funder privilege at the door •Build trust / be trust worthy •Invest