An OverviewLisa Cremin, Director, Metropolitan Atlanta Arts Fund, Nonprofit Loan Fund, Social Innovation, Community Partnerships Audrey Jacobs, Director, Center for Family Philanthropy
History• Bullet information hereFounded in 1951 asThe Metropolitan Foundation of AtlantaAtlanta’s then four largest banks—Citizens and Southern National, First National Bank of Atlanta, Fulton National Bank and Trust Company of GeorgiaPurpose – serve a permanent charitable resource to benefit and improve quality of life in the metropolitan Atlanta region.1977- Metropolitan Atlanta Community Foundation created, $7 million in Assets
History and Background• Bullet Foundation Renamed• 1997 information here• The Community Foundation for Greater Atlanta• 2011 - $700 million assets 1100 funds, including 700 donor advised funds• The Community Foundation is one of more than 700 community foundations throughout the country; among the top 20 largest community foundations.
Our Philanthropic Framework• Bullet information here
Our Philanthropic Framework• Bullet information here
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• Bullet information here Philanthropic Services
Donor Advised FundsDonor Advised Funds• Bullet information here• Must be separately identified with reference to the contribution of a donor or donors• It must be owned and controlled by a sponsoring organization• The donor or a person appointed by the donor must have or must reasonably expect to have, the privilege of providing advice with respect to the funds investments or distributions
Donor Advised Funds• Bullet information here• 90% referrals from Professional Advisors, Accountants, Attorneys• $50,000 minimum fund size ($5,000 open)• Center for Family Philanthropy— $250,000 or Planned Gift of $1m or more• Average new fund size is $400,000• Average payout rate across donor- advised funds was 21% in 2010
Donor Advised Funds and Private Foundations• Bullet information here• Private foundations- start-up costs• 5% asset payout requirement, annually• Income tax deduction– up to 30% for cash contribution• up to 20% for appreciated securities that are publicly traded• Excise tax on income– up to 2% of annual net investment income
Other Funds Held at The Community Foundation• Bullet information here • Unrestricted– Common Good Funds Donors who wish to provide a gift to nonprofits in the region without being involved in the selection process Competitive grantmaking General operating support • Designated Donor creates a legacy to benefit one or more nonprofits perpetually without giving the entire amount directly to the nonprofit at the onset. • Scholarship Funds
Who are the Foundation’s Donors?• Predominantly metro Atlanta residents• Bullet information here• Fulton, Dekalb, Gwinnett• Age 50+• Caucasian (97%)• Few minorities• Both male and female• High net worth• Entrepreneurs
The Community Foundation’s Role vis-a-vis DonorsServe as personal philanthropic advisor to individuals• Bullet information here and families who want to make a difference through their long-term giving.Provide multiple giving opportunities for individuals and familiesProvide deep knowledge about nonprofit organizations and critical community issues
Donor Services and Donor Engagement• Grantmaking- grants processing,** due diligence• Bullet information here• Back office Support/Recordkeeping• Reports and various materials• Education Opportunities throughout the year • Smart Giving Series• Co-investment opportunities• Site Visits• Family Services• Successor Engagement• Engaging the Next Generation
The Center for Family PhilanthropyLaunched in 2000• Bullet information hereCustomized services for donors with donor-advised funds of $250,000 or greater or a Planned Gift of $1million or more.Provide opportunities for deep donor engagement and customized services • Philanthropic planning and Grantmaking • Information and education • Legacy Services • Investment Options– individually managed
Elements of a Successful Philanthropic Roadmap• Bullet information here• Values• Interests• Mission• Research• Visits• Consultation• Involving others– Involving the Next Generation• Grantmaking• Strategy and approach• Evaluation– results and impact• Legacy
Community Foundation Impact in 2010• Bullet information herein gifts from donors and• Received $138 million other funders– record year Majority of gifts from existing fund advisors• Granted $99 million to nonprofits in the region and beyond 87% of those grants were through individuals, donor advised funds 75% of last year’s $99 million remained in our Atlanta region.
Donor Behavior2010 Donor Survey• Bullet information here Issues most important to donors: Education Religion and Spiritual Development Arts, Culture and Humanities Focus remains significantly on the metropolitan Atlanta region Giving was more focused/strategic as a result of economic downturn in 2008 More selective in support, Emergency Relief
Donor BehaviorConsiderations in supporting nonprofit organizations:• Bullet information here Strong mission, effective programs (81%) Demonstrating impact in meeting community needs (66%) Well-managed operations and stable finances (60%) Effective Board of Directors (22%) Innovative approaches to addressing community issues (21%)
Current Research on Donor Behavior• Bullet informationHope Consulting“Money for Good,” hereIncreasing Charitable Donations From IndividualsKey Findings:• There is $45B of market opportunity, limited in part by high levels of loyalty in charitable giving.• Donors are generally satisfied with nonprofits, but cite being solicited too often as their key area of frustration.• Behaviors matter: there are six discrete segments of donors with different primary reasons for giving• Demographics don’t matter.
Money For Good ResearchRecommendations:• Bullet information here• Segment on behaviors, not demographics• Tag and track donors by segment• Determine what segments are best for your organization, given your strengths• Develop consistent outbound marketing that appeals to target segments• Prioritize investments based on what will drive donor behavior• Capture donors early• Understand how to manage different segments
• Bullet information here Community Partnerships
Funds and grantmaking programs • Bullet information here• Common Good Funds: • Donor Advised Funds: – Is a pool of funds driven by – Are driven by donors the Board – Comprise the majority (95%) – Is not always granted of the foundation’s funds & competitively awards ($96M) – Is not General Operating – Are only made competitively Support, a type of grant when requested by donor – Grants are vetted – Are made for all kinds of rigorously/individually; used grants as basis for donor – Are not vetted beyond information legalities – Exclude certain – Do not exclude any legal organizations nonprofit
2012 Community Partnerships CommitteeDepartment here • Bullet informationFunding: •Administrative Fees •Payouts: Designated Funds •Grants from other Funders •Fundraising & Events •“Fees for Service
Grantmaking Philosophy • Bullet information hereWe fund well integrated organizations that have:Effective programsDiverse, well-managed fundingStrategic planningCapable boards and staff leadership
Assumptions • Bullet information hereThe nonprofit sector is essential to enhancing the quality of life in the metro region.A strong nonprofit sector is one comprised of sustainable organizations.Sustainable organizations must have effective leadership, adaptability, program capacity.
Our operating thesis as of 2009: • Bullet information hereProviding general operating support and targeted management consulting services will lead to stronger, more sustainable nonprofits and enhance our collective quality of living.
Philanthropic (Donor) Services• Bullet information here • Support thoughtful, accurate informed research that encourages smart giving to Foundation donors • Community Partnerships staff provide reports, training and facilitated education sessions; and co-design of donor events and activities
Community Initiatives • Bullet information here• Networks of people who can work together to address critical community needs• Three Community Initiatives are: the AIDS Fund, Arts Fund and Neighborhood Fund – These are “long-term” initiatives that are now permanent programs of the Foundation.
Sample of Community Initiatives KEY: TCF Organizational Excellence Important Program ends ImportantA Sampling of Past/Current Community Initiatives (1/2011) • Bullet information here Program Engaging Philanthropists Limited events before or is spun off program Strenthening Nonprofit Sector Invlovement program is milestone Advancing Public Will official 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Neighboorhood Fund X X · Mott Foundation · Local match · 3-year program TCF Program TCF ProgramTCF Partners with Georgia Center for Nonprofits Spun off intoSupport Center for (formerly Nonprofit Resource Center) independentNonprofits (SF) for · Institutional Funder entityworkshops · 3-year plan X Decision to continue NEA challenge $ to X Metropolitan Atlanta stabalize arts groups Arts Fund · Challenge $ · TCF Grant match National Arts Strategies to ATL for $ assessment TCF receives grant from Neighborhood Ford for CDC support Development (ATL Housing Fund) Partnership · merger of 2 orgs Atlanta Womens Foundation Spun off into (formerly Fund for Women & Children) independent · TCF Initiated entity Atlanta/Fulton Collaborative ATL/Fulton Spun off into dormant - TCF partipates Fam. Connection independent in restart dialogue · Institutional Donors entity · 1-year planTCF receives Ford grant to Atlanta AIDS Partnership Fund (PLANNED GIFTS)fund Gay Related Immune X · Partnership with United WayDisorder (GRID) treatment · Individual/Institutions Increased donor engagement (National AIDS Fund, Elton Metro ATL Youth Statewide John); designed for event funding Opportunity Initiative · 3-year plan Intergroup Relations Program end Program · Ford, 2-year plan · local match 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Community Leadership • Bullet information here• Our role and presence in the community includes collectively hosting and participating in hundreds of meetings annually• Community Partnerships is also responsible for management of the Foundation’s 200+ volunteers who serve on our grantmaking and research committees
Working Externally• Bullet information here
Our Path• Bullet information here
Measuring Our Progress• Bullet information here
2010 Bank of America Study of High Net Worth Philanthropy• Bullet information hereCommunity FoundationsFindings with respect to• Most giving is local• Community foundations provide important guidance• donors rely more on foundation staff for guidance• Use of charitable vehicles continues• donor advised funds, endowed funds with a particular organization, private foundation• Family involvement remains important
Conclusion• Bullet information here time to understand• Importance of investing donors interests, passions, drivers• Continue cultivation over time, through generations• Importance of collaboration
Conclusion Thank You for Your• Bullet information here Interest!! Questions & Answers