Board Chair & CEO Retreat · • Lessons Learned In addition, the course provided valuable...

Board Chair & CEO

Retreat

May 19 & 20, 2011

The San Diego Foundation

Meeting Materials:

~ Welcome Letter

Page 2 ~ Agenda

Page 5 ~ Q1 2011 Revenue/Expense Statement

Page 6 ~ Major Activities and Accomplishments

Page 14 ~ Board Boot Camp Evaluation Summary

Page 16 ~ Making a Difference: Community Foundations in California

Page 28 ~ Community Foundation Profiles

Page 29 ~ Barbara Boxer Letter (S.557)

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May 11, 2011

Dear Colleagues,

I’d like to welcome you to the annual Board Chair & CEO Retreat

sponsored by the League of California Community Foundations on May

19 and 20, 2011. We extend our grateful thanks to our friends at The San

Diego Foundation for hosting our gathering and to the Retreat Planning

Committee for their exceptional assistance.

On day one we will host a presentation by guest speaker, Lucy Bernholz,

Founder and President of Blueprint Research & Design, Inc. on

Philanthropy and Social Investing. Her industry forecast Philanthropy and

Social Investing: Blueprint series, is quoted as an “annual must-read.” Each

participant will receive a copy of Lucy’s book in San Diego.

Our second day together will focus on several important and timely

topics: the relationship between government agencies and community

foundations, the impact of state and federal budget cuts on community

services, and the future priorities and structure of the League of California

Community Foundations.

An agenda and meeting materials are included in this Retreat packet.

I look forward to joining you for dinner on Thursday evening at 6:30 pm at

the Courtyard Marriott, Waterside Terrace. As usual, dress is casual for

the Retreat and dinner.

If you have any questions prior to our meeting, please feel free to contact

the League Office at 707.586.0277.

I look forward to a great Retreat and seeing you all in San Diego!

Lance Linares, Chair

League of California Community Foundations and

Executive Director, Community Foundation Santa Cruz County

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LEAGUE OF CALIFORNIA COMMUNITY FOUNDATIONS

Board Chair & CEO Retreat

The San Diego Foundation

May 19 & 20, 2011

AGENDA

Time Thursday, May 19 Who/How

1:00 Convene

Review Meeting Purpose and Agenda

Self-Introductions

Logistics/Reminders for Days 1 & 2

Q&A

Lance Linares,

LCCF Chair

PRESENTATION: Philanthropy and Social Investing

(Bernholz Biography attached) Lucy Bernholz

3:15 BREAK

3:30 Board Chair Discussion

CEO Business Meeting

Alan Pardini

Patricia Jones

5:00 Adjourn Lance Linares

6:30 Dinner – Courtyard Marriott, Waterside Terrace

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Time Friday, May 20 Who/How

8:00 Breakfast and networking - Overview of the day Lance Linares

8:30 Report back from CEO Business Meeting and Board Chair Session

Updates – IRS Audits, COF Fall Conference, Boot Camp, Legal,

National Standards, other

Facilitated

group

discussions

Presentation and discussion of Draft CF Impact Piece – what is

the impact community foundations are making in California?

Critique draft

Discuss distribution

Alan Pardini,

Hugh Ralston

Future of the League

• Value proposition

• Business model

• Outreach to Statewide and National funders

Lance Linares

12:00 LUNCH

12:45

Future of the League (continued)

Discussion - CFs and our role with local governments

• First 5 Commissions

• Redevelopment Authorities

• Grantmaking / Funding Implications

Facilitated

group

discussions

BREAK

Open Discussion

• Collaborative education work

• Issues

• Innovative ways to attract new donors

• New collaborations

• Advocacy

• Other

Facilitated

group

discussions

3:15 Summary and Adjourn Lance Linares

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Lucy Bernholz, Ph.D.

Lucy Bernholz is the Founder and President of Blueprint Research & Design, Inc. a strategy

consulting firm that helps philanthropic individuals and institutions achieve their missions.

Bernholz is the publisher of Philanthropy2173 an award winning blog on the business of

giving. She is currently is a visiting scholar at the Stanford University Center on

Philanthropy and Civil Society and has been a Fellow of the New America Foundation.

Bernholz was named one of 100 national game changers by The Huffington Post. She serves

on advisory boards to several national and international philanthropy research centers and

is frequent keynote presenter, panelist, and media source on philanthropy and social

innovation. Dr. Bernholz is the author of numerous articles and books on the philanthropic

industry, including Creating Philanthropic Capital Markets: The Deliberate Evolution.

Bernholz has a B.A. from Yale University, where she played field hockey and captained the

lacrosse team, and a M.A. and Ph.D. from Stanford University.

Lucy Bernholz's industry forecast, "Philanthropy and Social Investing:

Blueprint" series, is an "annual must-read." Blueprint 2010 was read,

shared, and gifted by foundation trustees, advisors and professionals,

members of giving circles, charitable giving funds, philanthropic and

financial advisors, and individual donors. Blueprint 2011 answers: •

With all the hype, what really matters for philanthropy and social

investing in the coming year? • What do I need to know to achieve my

social goals in 2011? • What buzzwords may be more than just buzz? •

Wildcard events, buzzwords, and a guide through the hype that hits

every year

YTD% YTD of

BudgetBudget FY 2011 Budget vs. YTD

REVENUE

Member Dues 166,250 97% 172,000 -$5,750

Fee offset from cash reserve 0 0% 130,000 -$130,000

Fees 0 0 $0

Grants 0 0 $0

Investment Income 505 25% 2,000 -$1,495

Board Boot Camp 18,725 91% 20,500 -$1,775

Total Revenue $185,480 57% $324,500 -$139,020

EXPENSES

Consultant Costs

Sr Staffing 21,000 26% 79,800 $58,800

Operations, finances/ logistics 31,550 26% 122,200 $90,650

Research & member service 12,700 35% 36,000 $23,300

Website management 3,000 50% 6,000 $3,000

Other / special projects 0 0% 5,000 $5,000

Total Consultancy Costs $68,250 27% $249,000 $180,750

Operating Expenses

Telephone 569 14% 4,000 $3,431

Printing 35 3% 1,100 $1,065

Supplies 157 31% 500 $343

Postage and Shipping 72 10% 750 $678

Website 130 22% 600 $470

Fiscal agent fee (support fee) 2,464 21% 12,000 $9,536

Other 202 16% 1,250 $1,048

Total Operating Expenses $3,629 18% $20,200 $16,571

Travel & Business Expenses

Meals 0 0% 800 $800

Mileage, tolls, parking 15 2% 750 $735

Airfare 409 27% 1,500 $1,091

Lodging 0 0% 1,500 $1,500

Total Travel & Business $424 9% $4,550 $4,126

Member Convening

Meeting Costs 500 14% 3,500 $3,000

Catering 0 0% 10,000 $10,000

Other 0 0% 750 $750

Total Member Convening $500 4% $14,250 $13,750

Board Boot Camp

Meeting Costs $1,619 8% $19,975 $18,356

Unanticipated Expenses

Impact 0 0% 6,000 $6,000

COF Conference 0 0% 3,000 $3,000

Other 0 0% 7,000 $7,000

Total Other/ Unanticipated Expenses $0 0% 16,000 $16,000

Total Expenses $74,422 23% $323,975 $249,553

EXCESS REVENUE (LOSS) $111,058 $525

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2011 FIRST QUARTER REVENUE / EXPENSE STATEMENT

Projected year end cash reserve = $200,000

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Major Activities and Accomplishments

May 2010 – April 2011

The League plans and implements a wide range of activities on behalf of members and to advance the interests of the state’s community foundations. This document summarizes the primary ways League resources have been spent in the last twelve months.

Overview

2010 saw the beginning of a rebound in the general economy, led by significant gains in foundations’ investment portfolios. Nevertheless, community needs, particularly those associated with protracted unemployment and poverty, remain at very high levels. League members have continued to emphasize program and grantmaking work in the areas of basic human needs, even as the state government makes significant cuts to safety-net and other critical programs. The question of the relationship between philanthropy, especially community philanthropy, and the responsibilities of state government has become an issue of significant long-term importance for our state. In 2011, the League continues to operate on a limited budget, focusing its resources (described below) on those efforts deemed most critical to effective community foundation development and cross-foundation collaboration and learning, including the National Standards recertification of League members, in close cooperation with the Council on Foundations. The following pages describe the activities of the League during the past twelve months.

Training / Peer Learning

The League provides a range of services designed to share practice-relevant knowledge, promote collegiality, and inform members’ decision making.

� Information & Referral

League staff fielded requests for information on topics relating to many functional capacities of community foundations, and polled members for statewide information on the following:

Grantmaking & Community Leadership

• Language for Population-Specific Grant Programs • Transformative Gifts

Management & Administration

• Insurance Requirements for Independent Contractors • Using FIMS to Create Board Docket Materials • Annual Rates of Return on Endowments • Salary Adjustments • California Professional Fiduciaries Act • Forecast Spending • Program Officer Classification • Donor Investment Managers

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Marketing & Communications • Social Media and Networks

� Community Foundation Board Boot Camp

Through generous support from the Hind Foundation, the League offered the CF Board Boot Camp on April 4, 2010. Eighteen representatives from eight League member foundations and two participants from one non-member foundation took advantage of the one-day course in Shell Beach.

The lead faculty were Alan Pardini, Senior Advisor, and Patricia Jones, Senior Associate, of the League of California Community Foundations.

Overview Community Foundation Board Boot Camp was a one-day, intensive course designed specifically for community foundation board members and focused especially for those new to the field. The course is relevant to board members representing community foundations of all sizes. The training incorporated presentations and discussions on many of the critical factors that all board members should know, including:

• What a Community Foundation is and how it differs from other nonprofits

• Governance & Mission and the role of the board and its members • Legal & Fiduciary responsibilities and new regulations/implications • Committees & Policies participation and creation • Fund Development and the board’s role • Funds different kinds generally held by a community foundation • Grants and Scholarships trends, pros and cons • Community Leadership defined, what is happening in the field, and the

board’s role • Lessons Learned

In addition, the course provided valuable resources and enabled participants to establish new professional contacts.

� CF National Standards Compliance Recertification

Patricia Jones and Sharon Post are acting as National Standards Reconfirmation liaisons. They conducted eleven teleconferences and participated in several COF webinars/teleconferences. COF staff is looking at utilizing the League’s peer sharing model around Standards Reconfirmation nationwide, and also commented on the excellent quality and organization of reconfirmation binders submitted by League members. League staff compiled a list of League member reconfirmation dates, including Standards representatives at each foundation, which was distributed to encourage networking.

� Peer Exchange Teleconferences (see attachment)

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Networking / Connections

The League provides a venue and structure for regular collegial interactions among the members of the state’s community foundations. The League also provides an efficient means of communication to and within the community foundation field statewide. This communications capacity is used for broadcasting fieldwide information and general peer-to-peer communications.

� Fall Business Meeting

League CEOs meet annually in the fall to discuss League business and other community foundation field-wide topics. Last fall, CEOs met at The San Diego Foundation on November 4, 2010 and this fall will meet at The San Francisco Foundation on November 5, 2011.

� Board Chair & CEO Retreat

The two-day annual meeting in the spring fosters collaboration among the state’s Board Chairs and CEOs. Last spring, Silicon Valley Community Foundation graciously hosted the event on May 13-14, 2010.

� League Directory and Database

The database, created in 2009, greatly simplified the production of the printable online member directory, with names, titles, and contact information for staff at all member foundations. League staff updated the directory in February 2011, ensuring that the database is kept current as members adjust staffing. The database allows League staff to more efficiently communicate through targeted messaging to member staff in specific functional areas. This is especially important in organizing and promoting knowledge exchange among specific groups throughout our membership, including teleconferences and other peer learning opportunities.

� League Website

League staff has initiated a complete design and architecture restructure of the League website to improve member use and functionality. The new website will offer League members clear architecture for intuitive access to valuable member content, information, tools and events. The website will be flexible and versatile to accommodate evolving operational requirements and member usage. All content and documents have been migrated from existing site to new site and League staff are working to finalize the project by mid-year.

� COF Fall Conference Planning Task Force

The Council on Foundations is holding their 2011 Fall Conference for Community Foundations on September 19 – 21 in San Francisco. A number of League members are participating on the COF Planning Task Force to bring a local insight and League perspective to the event. League committee members are listed below:

• Nicole Taylor (Chair), President & CEO, East Bay Community Foundation • Abbey Banks, Director of Donor Engagement, East Bay Community Foundation • Patricia Bresee, Board Chair Emeritus, Silicon Valley Community Foundation • Eleanor Clement Glass, Chief of Donor Engagement and Giving, Silicon Valley

Community Foundation • Priscilla Enriquez, Chief Giving Officer, Sacramento Region Community

Foundation • Sandra Hernandez, Chief Executive Officer, The San Francisco Foundation

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• Barbara Hughes, President & CEO, Community Foundation Sonoma County • John Kobara, Chief Operating Officer, California Community Foundation • Lance Linares, Executive Director, Community Foundation Santa Cruz County • Ann Mathieson, Trustee, Marin Community Foundation • Alan Pardini, Senior Advisor, League of California Community Foundations • Aileen Sweeney, Vice President for Finance, Marin Community Foundation

Public Policy and Regulatory Developments

The League provides updates on legal and regulatory developments directly related to community foundations in California.

� Legal Updates

Erik Dryburgh and Stephanie Petit of Adler & Colvin have been engaged to update League members on legal, legislative and regulatory changes directly related to community foundation business as important changes arise. Two Legal Updates for Community Foundations Peer Exchange Teleconferences were presented in late October and November to discuss new developments and legal updates for community foundations such as The California Professional Fiduciaries Act, Expenditure Responsibility and Special Problems with Donor Advised Fund Grants. League members were sent a legal update regarding the California Professional Fiduciaries Act in March 2011. The League urged members to write letters of support for AB 997 (Wagner), which exempts charities from the Professional Fiduciaries Act for specific, narrowly defined trusts.

� Policy

In late March, the League sent letters to California Senators Barbara Boxer and Dianne Feinstein urging them to co-sponsor S. 557, the Public Good IRA Rollover Act of 2011, a bi-partisan bill introduced by Senators Charles Schumer (D-NY) and Olympia Snowe (R-ME). The bill proposes to extend the IRA charitable rollover beyond 2011 and allow gifts to be made to donor-advised funds, supporting organizations, and private foundations to qualify for the incentive. Additionally, the bill proposes to lift the $100,000 cap on distributions and allow planned gifts beginning at age 59 ½.

� First 5 Commission Peer Exchange Teleconference

On March 15, 2011, the League held a Peer Exchange Teleconference to give members an opportunity to discuss relationships between community foundations and First 5 Commissions, and learn about developments and discussions resulting from threats to First 5 funding. Twelve community foundations participated in the lively discussion. Teleconference notes, and a legal opinion supplied by Dan DeSantis, were distributed to all CEOs.

Branding

One element of the League’s mission is to increase the visibility and awareness of the state’s community foundations with strategic audiences.

� Community Foundation Impact in California

At the request of members, the League is developing a comprehensive assessment of the cumulative impact of community foundation work in California. This work will generate a

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report that will help “tell the community foundation story” and serve as a reference and outreach resource for the League and its member community foundations. The Impact Committee consisting of Hugh Ralston, Lisa Dobey and Bob Kelly have recommended the following:

Purpose and Audiences

• League members – demonstrates internally and externally the value of being part of a larger movement that is defined; provides means to identify and promote strategic priorities.

• Funders – demonstrates the CF collective power and impact; assists in identifying funding partners; creates ability to tell the story well.

• Larger Philanthropic Community – promotes the League as significant player in supporting policy positions important to the field.

Data Compilation

• League member CEOs decided at the 2010 CEO/Board Chair Retreat to collect data from fiscal year 2009 for the statewide Community Foundation Impact Piece that will be produced later this year. League staff developed a comprehensive survey to assess the cumulative impact of community foundation work in California. League members submitted data by February 2011 and League staff have been working to analyze, assess cumulative impact and report trends.

Production

• League staff have contacted a marketing group familiar with CFs who will produce a captivating 4-8 page piece with electronic data sources and the ability to update with minimal expense. The Community Foundation Impact Piece will be distributed at the COF Fall Conference in the participant packet.

Other

• Create distribution and evaluation plan.

Member Services

The League collects and disseminates current practice-relevant information to its member community foundations on a wide range of issues. The aim is to ensure that community foundation practitioners have ready access to the information they need to advance their institutions’ missions.

� Member Profiles

League staff collected and compiled member profile data for distribution at the Board Chair & CEO Retreat and to update the public profile section of the League website.

� Senior Staff Compensation Survey and Incentives

League staff collected and compiled member senior staff compensation data and incentives for distribution to CEOs to better assist them in preparing their operating budgets. The Steering Committee felt an annual compensation survey conducted by the League would be more timely and relevant than other salary tables drawn from in the past.

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League Governance and Sustainability

Since its inception, the League has operated with the greatest emphasis on service quality, efficiency and long-term sustainability. The current strategic plan, adopted in February 2008 was based on an external (business) environment that has changed in dramatic and fundamental ways. Accordingly, the League staff and its members have worked to reduce the financial burden on members while adding low-cost programs and services designed specifically for each community foundation’s current circumstances. Specifics are described below.

� Budget and Staffing

League staff, in close cooperation with the Steering Committee, made adjustments to the League’s budget and staffing levels. The 2011 budget remains at the same level as the 2010 and 2009 budget which was 36% below 2008. The 2010 revenue/expenses resulted in a net zero budget.

� Steering Committee

The Committee (also serving as the Network Committee) continues to meet regularly to oversee the League’s budget, staffing and member services.

� Membership Outreach

League staff met by telephone with past member El Dorado Community Foundation. The Executive Director welcomed the outreach from the League and hopes to re-join when his budget allows. Lance Linares, LCCF Chair, contacted past member Humboldt Area Foundation regarding League membership.

� Member Dues

For a third year, the leadership of the League, recognizing the stress on members’ administrative budgets, reduced dues by making use of approximately $100,000 of the League’s $325,000 operating reserve. Once again, League services in 2011 focus on core programs, including the Information and Referral (I&R) service, peer exchange conference calls, specialized trainings, in-person meetings, National Standards reconfirmation assistance, and a Board Chair & CEO Retreat.

� Outside the League

Lance Linares, LCCF Chair, and Alan Pardini, LCCF Senior Advisor, met with representatives from the James Irvine Foundation with the long-term goal of a better alignment between Irvine’s work with community foundations and the League. Lance and Alan offered assistance as Irvine works with community foundations in California and encouraged increased collaboration and communication between the two organizations.

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Peer Exchange Teleconference Update May 2010 – April 2011

Purpose

The purpose of the Peer Exchange Teleconferences is to provide low-cost, high-impact exchange of ideas among colleagues around practice issues. This work evolved out of the League Fall 2008 Conference and the Strategic Plan/Knowledge Management Committees’ recommendations to use teleconferences as a means to increase the channels of communication among League members. Summary

The teleconferences began in November 2008 and focused on emerging economic conditions. In response to members’ decreasing travel and education budgets, the Knowledge Management Committee recommended that the League continue to host peer-exchange teleconferences. Sixteen teleconferences took place from May 2010 to April 2011, with topics including: Social Media and Networks, National Standards, Legal Developments for Community Foundations and First 5 Commission. Some of the teleconferences were planned as presentations with Q&A (utilizing expertise from within the membership and occasional guests), while others were designed primarily as vehicles for open discussion among peers. Alan Pardini, Patricia Jones, and Sharon Post facilitated the calls and transcribed notes. The notes were distributed to all participants. All session notes and supporting materials are posted on the League website at:

http://www.lccf.org/member/members/samquer_teleconf.html Participation

Two hundred and twelve members from 25 member foundations participated in the teleconference calls.

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Teleconference Participation

Group #

Participants #

Foundations CEO

Sr.

Staff Staff Board

National Standards

May 19, 2010 19 13 5 6 8 0

June 2, 2010 19 15 4 7 8 0

June 23, 2010 25 14 5 14 6 0

June 30, 2010 23 13 5 10 8 0

July 7, 2010 18 13 4 6 8 0

Sept. 8, 2010 15 11 3 7 5 0

March 9, 2011 9 7 1 6 2 0

March 16, 2011 8 8 2 5 1 0

March 23, 2011 5 4 1 3 1 0

March 30, 2011 5 4 0 3 2 0

April 6, 2011 8 8 2 5 1 0

Roth IRA Rollover

June 8, 2010 3 2 0 2 1 0

Social Media and Networks

Oct. 29, 2010 11 8 2 8 1 0

Nov. 12, 2010 13 9 3 5 5 0

Legal Developments for Community Foundations Nov. 17, 2010 16 12 6 9 1 0

First 5 Commission

March 15, 2011 15 12 6 7 2 0

TOTALS

212 25 49 103 60 0

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BOARD BOOT CAMP EVALUATION SUMMARY

San Luis Obispo ~ April 4, 2011

Agenda Item

Didn’t

work well

(1)

Okay

(2)

Worked

Well

(3)

Worked

very well

(4)

Average

CF Overview

0

1

5

11

3.6

Governance

0

1

4

12

3.6

Legal/Financial

0

0

6

11

3.6

Asset Development

0

1

5

11

3.6

Committees/Policy

0

0

7

9

3.6

Funds

0

0

4

12

3.8

Grants/Scholarships

0

2

5

7

3.4

Leadership

0

0

3

8

3.7

Ethics

0

0

3

8

3.7

Evaluation Survey Responses

Your experience: The meeting was a valuable use of my time: Definitely = 15, No Comment = 2

My participation was acknowledged and valued: Definitely = 15, No Comment = 2 The meeting was productive: Definitely =16, No Comment =1

The meeting was enjoyable: Definitely =16, No Comment =1

What worked best?

• Mixing the representation at the work tables

• Intervention worked well, taking time for small group brainstorming

• Board role in various activities (Mission – strategy, etc.); Excellent information sharing;

specially given no pre-prep

• Exchange of ideas

• Great Day! Very informative – Thank you!

• Charming spirited presenters

• Interactive nature/lots of “class participation”

o The Reception the night before helped enormously to break the ice and

establish rapport.

o Very professional materials and links to other resources. o Patricia and Alan were really terrific – they know their stuff and they

know how to effectively communicate it!

• Very good interaction with board members. Alan and Patricia were good facilitators, offered

excellent advice and kept us involved.

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• Vocabulary, overview, common ground

• Organized - good materials - clear PowerPoint

• Group discussion

• The entire training has allowed me to feel much more confident in knowing how I can best

our CEO and entire foundation.

• Good combination of lecture and discussion

• Format was good.

• You did a great job of sharing your information and leveraging the knowledge of all the

participants.

• Good job in covering a lot of information in a short period of time. This is an excellent

program for all levels of board members. What also worked well was the interaction between

presenters and audience. It was a great opportunity to cross-fertilize different approaches and ideas.

How could the meeting have been improved?

• List of documents on the disk drive

• Nice to be able to show up and learn as much as I did with the amount of commitment made

(7-8 hrs).

• Done very well, lots of new, important information that I will take back to my Board.

• Group grant discussion not so useful

• Don’t call it “Boot Camp” – there probably isn’t anyone at any level who couldn’t benefit

from this time very well spent.

• I really can’t think of anything at this point.

• Perhaps – advanced reading

• A little shorter

• While I understand much more about CFs I will have difficulty explaining exactly what our

CF will do for a contributor/donor.

• I think you covered things well in the time available.

• Time was short, but a bit more time on so-called “best practices” or perhaps the range of

what CF’s in California are doing would be helpful.

• The room got stuffy in the afternoon – better ventilation would have been helpful.

Other comments: • Good Job!

• Will take back to my Board!

• Terrific location and facility! As the day wore on, a few participants started monopolizing the

conversation, unfortunately.

• This was a very enjoyable experience.

• Very grateful….thank you for your skills as presenters.

• You’re clearly very knowledgeable and communicate well.

• Thank you very much

• Thank you for your approach in how you delivered all of the information. Tremendous

benefit and impact in developing skills and empowerment in how best to support the

foundation.

• Good job on presenting a lot of information within a limited time-frame.

• Thank you, Great job!!!

• If this is offered annually, I would propose requiring (or strongly recommending) all of our

board attending over time.

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Making a Difference: Community Foundations in California

DRAFT: May 2, 2011

Community Foundations in California

The League of California Community Foundations

California is home to more than 30 community foundations, with many more organizations

working in philanthropy at the community level. In 2009, 24 of these community foundations,

ranging in age from a few years to almost nine decades, were members of the League of

California Community Foundations*. These members all meet the requirements of the National

Standards for U.S. Community Foundations ensuring that the philanthropic services they

provide are of the highest quality and effectiveness. The League was formed in 1994 in an

effort to expand community foundation coverage in California from approximately 70 percent of

the state’s population in the mid-1990’s to more than 93 percent today. In large urban centers,

suburban communities and rural areas, California community foundations provide a local option

for charitable giving by individuals, families and businesses.

As Table 1 indicates, League member community foundation grantmaking in 2009 was nearly

$716 million, an indication of the important role community foundations play in the philanthropic

ecology of the state. Community foundations in California represent the single greatest

statewide concentration of community-focused charitable assets in the United States.

Table 1 – 2009 Summary Data, League of California Community Foundations

League Member Community Foundations

Gifts $723,661,392

Grants $715,934,290

Assets $6,902,169,221

Source: League of California Community Foundations, 2011.

Gifts to Community Foundations in California: 2009

In the midst of the recession, 2009 was a challenging year for all charities, including community

foundations. Despite the steep downturn, the 24 community foundation members of the League

reported more than 34,000 individual gifts totaling more than $723 million. Of the 2009 gifts,

more than 5,600 (16%) accounting for more than $57 million were from donors new to their

community foundation.

* A 25

th member joined the League in 2010, but data contained throughout this report references 2009

membership of 24 community foundations.

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Chart 2

2009 Gifts to Foundations by Category

Bequests

12.4%

Unrestricted 2.0%

Donor Advised

51.5%Field of

Interest 2.9%

Administrative

.48%

Scholarships

1.4%

Other 29.0%

Source: League of California Community Foundations

Community foundations receive gifts from their donors through a variety of means, as Chart 2

indicates. More than 10,000 donor-advised fund gifts amounting to more than $372 million (or

51.5% of all 2009 gifts) were received during this economically difficult year. Bequests of nearly

$90 million accounted for 12.4 percent of all 2009 gifts to the community foundations.

Community foundations raised nearly $11 million for scholarships from nearly 2,700 donors in

2009, attesting to the strong interest among donors in supporting local students at the higher

education level. Reflecting the value donors place on the work of their community foundation,

2009 saw a total of more than $3.5 million raised from nearly 700 donors specifically to support

the operations of the foundations in California.

Chart 3 League of California Community Foundations

Gifts Received by Members

1990-2009

$70,212,990

$258,977,817

$959,665,269

$724,270,000

$723,661,392

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

1990 1995 2000 2005 2009

Year

Source: League of California Community Foundations. Note: The number of community foundations

represented in the chart increased with League membership over the nineteen-year period, from seventeen in 1990

to 24 in 2009.

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Gifts to community foundations in California rose from just over $70 million in 1990 to more than

$723 million in 2009, more than a 1000 percent increase.

Community Foundation Grantmaking in California: 2009

One of the core functions of community foundations is to distribute locally-generated charitable

funds. In 2009, the 24 members of the League of California Community Foundations awarded

$716 million through more than 35,000 grants and nearly 3,500 scholarships.

The Importance of Donor-Advised Funds

When community foundations were first established nearly 100 years ago (Cleveland

Foundation, 1914), they focused their efforts on building permanent charitable endowments,

using the trust, or “community chest” model. In recent times, community foundations have

expanded their “giving” reach to include services to donor advisors. Many of these donors

maintain named funds within the community foundation and advise the foundation on the

distribution of grants from their donor-advised funds. The growth of community foundation

assets that are held as donor-advised funds is reflected in 2009 grantmaking.

Of the nearly $716 million in grants and scholarships given by community foundations in 2009,

donor-advised grants in 2009 ($460 million) accounted for 64 percent of all community

foundation giving while 36 percent ($257 million) came from the community foundations’

discretionary and restricted assets.

Chart 4

League of California Community Foundations

Member Grants

1990-2009

$68,802,104$133,468,062

$416,026,855

$535,899,817

$715,934,290

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

1990 1995 2000 2005 2009

Year


Note: The number of community foundations represented in the chart increased with League membership over the

nineteen-year period, from seventeen in 1990 to 24 in 2009.

19

Types of Grants Made

Reflecting the steady growth in community foundation assets in the state, League member

community foundations reported making grants and awarding scholarships of more than $68

million in 1990. As shown in Chart 4, by 2009, that figure rose by more than 1000 percent to

nearly $716 million.

Community foundations support a wide range of needs through their grantmaking and that of

their donor advisors. They use a mix of responsive and proactive grantmaking strategies to

help ensure that their charitable assets are directed towards areas of highest need and greatest

potential impact. Historically, most funders, including community foundations, focused a

majority of their funding on specific projects or programs, in part as a form of social R&D, to

stimulate innovative approaches to community needs. With the steep and persistent economic

downturn, fully reflected in community foundations’ grantmaking statistics, many foundations

accelerated a trend towards general operating support for nonprofits providing basic human

needs services to the growing population in need (Chart 5).

Chart 5

0%10%20%30%40%50%60%70%80%90%100%

2009 Grants by Designation

(excluding scholarships)

Program RelatedInvestments 1.2%

Capital 3.5%

Other 9.5%

General Operating29.8%

Program Specific55.9%


The single largest share of 2009 community foundation grants were made for program activities

that addressed a wide array of needs. These grants totaled more than $390 million (55.9% of

all League member grants).

In 2009 the League of California Community Foundations members allocated nearly $210

million (29.8% of all grantmaking in that year, excluding scholarships) to core support for key

community-based nonprofits.

Capital grants for buildings, equipment and other infrastructure needs exceeded $24 million

(3.5% of all grants) in 2009. Four community foundations used their institutional assets to make

more than $8 million in mission-related and program-related investments (PRI). PRIs are a tool

20

for managing and employing dollars in the community. The motivation for making PRIs is both

social return and specific program goals, and PRIs are usually invested with the expectation that

dollars will be returned with interest below market value. MRIs (Mission Related Investments)

begin to use dollars for investing that will return dollars and interest at or above market value to

build endowment and also do social good.

These were used mainly for economic development and community building endeavors.

Historically, these were used by private foundations to increase their funding capacity.

Increasingly, as assets grow, community foundations are exploring this strategy to make full use

of the charitable resources at their disposal.

Amount of Grants Funded

One of the most valuable aspects of community foundations is their broad range of funding.

Being responsive to continually evolving community needs, problems and opportunities,

requires a degree of flexibility and a broad philanthropic vision. As Chart 6 shows, in 2009, the

single largest share of community foundation funding, more than $278 million, was directed

towards education. Community health and related grants accounted for more than $72 million,

or 10.2 percent of all community foundation grants in 2009.

Chart 6

2009 Grant Dollars by Area

38.90%

17.30%10.20%

9.20%

7.80%

7.00%

6.80%

2.80%

Education $278,282,320

Other $123,944,463

Health $72,827,922

Community & Economic Development $66,121,332

Environment $55,962,526

Arts & Culture $50,549,900

Social Services $48,869,205

Minority Groups, Women & Girls $19,376,622


League of California Community Foundations members also reported significant philanthropic

investments in community and economic development ($66 million, 9.2% of all 2009 grants),

environmental issues (nearly $56 million, 7.8%), arts and culture ($50 million, 7.0%) and social

services ($48 million, or 6.8%). These numbers attest to the critical role community foundations

and their donor advisors play in many areas of community life.

21

With the economic recession in full force, 2009 grantmaking favored basic human and

community needs in higher ratios than in non-recessionary periods. So serious were

community needs in 2009 that many of the League’s 24 community foundations refocused their

grantmaking priorities to direct higher levels of funding to basic human needs programs.

Several community foundations launched successful fundraising efforts to encourage their

communities to give to special funds established specifically in response to the recession’s

community impacts. (Examples in sidebar.)

As noted earlier, community foundations address a wide array of community needs in their and

their donor advisors’ grantmaking. In Chart 6, the “other” category (17.3% of 2009 community

foundation grantmaking, accounting for $123 million) included: nonprofit capacity-building, youth

development and recreation, faith-based programs, science and technology, disaster

preparation and relief, animal welfare, public safety, and social justice projects.

Scholarships

In 2009, the 24 community foundation members of the League reported making more than

3,400 scholarship awards totaling more than $18 million; more than 1,600 students received

scholarships for higher education. All of the League’s member community foundations have

scholarship programs. Some are managed in-house while some have been outsourced to

national scholarship administration organizations.

Geographic Dispersion of Grants

One of the most powerful drivers of community foundation growth is the proposition of keeping

philanthropic resources for the benefit of the local community. Many donors are drawn to the

opportunity presented by community foundations to invest charitable resources locally, and to

make a meaningful difference in the community they call home. In 2009, the League’s 24

community foundation members reported that 66 percent of all grant and scholarship funds

were allocated within their communities, as Chart 6, below, indicates.

Chart 7

2009 Geographic Destinations of Grants

Local

66%

California

11%

Other States in

U.S.

22%

International

1%


22

Leveraging Resources

In addition to their roles as local funders, community foundations also serve as a vehicle for

bringing new philanthropic resources into their communities. In 2009, 17 of the League’s

community foundations reported receiving nearly $40 million from “outside funders”. These

included other foundations, public agencies and individual donors. The funds were re-granted

to more than 400 community-based nonprofit organizations, lifting the overall level of

philanthropy in communities across the state.

Leadership through Grantmaking

As community foundations grow in experience and capacity, many are looking to proactive

grantmaking strategies to address pressing community problems and needs. Categorized as

“initiatives”, these efforts span a wide range of specific issues including youth and families, arts

and culture, environment, education, community development and human services/safety net

programs.

Chart 8

2009 Special Initiatives

24.2%

22.7%20.7%

10.0%

7.0%

6.2%

5.0%

4.2%

Education - $2,686,498

Social Justice - $2,511,229

Health & Human Services - $2,297,843

Youth - $1,113,251

Arts - $783,275

Environment - $682,591

Other - $551,200

Economic & Community Development - $469,658


A total of $11,095,545 was raised in 2009 by the League’s community foundation members for

focused, community-based initiatives. As Chart 8 indicates, the largest single share (24.2%) of

these resources was raised to support education, followed closely by social justice (22.7%) and

human services/safety net programs (20.7%). The community foundations did this work by

challenging their donors and their communities to give generously to help those most in need

during the economic crisis. The “other” category included initiatives for: science and

technology, women and girls, nonprofit capacity/support, and information access/digital media.

Several examples of these 2009 initiatives:

List of Initiative Examples Here (in sidebars) -

23

Community Foundation Assets in California: 2009

Community foundations perform a key role in developing and managing charitable assets on

behalf of their communities. In 2009, the League of California Community Foundations’ 24

members reported total assets of $6.9 billion. Of this amount, more than $2.7 billion was held

as unrestricted (or foundation discretionary) funds. As Chart 9 indicates, funds advised by

donors accounted for 28 percent of all League member community foundation assets,

amounting to nearly $2 billion. This reflects the broad base of donors conducting their charitable

giving through their local community foundation.

Chart 9

2009 Asset Classes

Unrestricted

Funds

39.3%

Donor Advised

Funds

28.0%

Field of Interest

Funds

4.5%

Agency Funds

4.3%

Designated

Funds

4.7%

Administrative

Funds

1.0%

Other

18.2%


Asset Classes

One option most community foundations offer donors is field of interest funds. These address

broad areas such as children and families, environment, arts and culture. Field of interest funds

allow the donor to advise in general philanthropic directions while allowing the community

foundation some discretion in the selection of specific grantees within that field of interest. In

2009, the state’s community foundations reported that they held more than $310 million in field

of interest funds. Related to field of interest funds are more than $327 million in designated

funds (4.7% of assets) that are managed by community foundations across the state for specific

purposes as specified by the donor.

As a stewardship service to local nonprofits, many community foundations manage the assets

for local nonprofits. These agency funds accounted for more than $295 million or 4.3 percent of

all League of California Community Foundation members’ assets in 2009. Of these funds,

approximately 65 percent were held as expendable funds and 35 percent as permanent agency

endowments. More than 1,100 local nonprofit organizations entrusted their funds to the state’s

community foundations.

24

Asset Growth

The steady growth in community foundation assets in California is reflected in the data in Chart

10. From just more than $1 billion in assets in 1990, the field has grown to nearly $7 billion in

the past twenty years.

Chart 10

League of California Community Foundations

Member Assets

1990-2009

$1,015,904,119

$5,756,000,000

$6,902,169,221

$1,813,789,323

$4,600,432,743

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

$8,000,000,000

1990 1995 2000 2005 2009

Year


Note: The number of community foundations represented in the chart increased with League membership over the

nineteen-year period, from seventeen in 1990 to 24 in 2009.

Administrative Funds

For many years, and especially in difficult economic times, nearly all League member

community foundations build and rely on mostly endowed administration and operations funds.

These funds aim to ensure the long-term sustainability of community foundations by providing a

reliable source of operating revenue and reducing the reliance on fund fees, which can vary

considerably from one year to the next.

Supporting Organizations

Increasingly, community foundations are creating supporting organizations to provide another

important giving vehicle for donors. Supporting organizations are separate but affiliated entities

whose nonprofit work is designed to support the mission of the community foundation. In 2009,

15 of the 24 members of the League of California Community Foundations reported that they

held more than $1.7 billion in assets for their approximately eighty individual supporting

organizations.

25

Community Participation in California’s Community

Foundations: 2009

As stewards of a community’s charitable assets, community foundations rely heavily on the

voluntary participation of community members to guide the organization and to ensure that its

work and resources are directed towards the most important issues in the community. In 2009,

more than 2,000 individuals volunteered their time as Board members, committee members and

in other roles within the community foundations.

People profiles – volunteers in sidebar

Community foundations are significant and enduring engines of economic growth in their

communities. The 24 members of the League of California Community Foundations report

combined operating budgets of $71.4 million in 2010; and with 463 full-time employees, are

deeply rooted in and connected to community.

Summary

Community foundations in California play a critical role in addressing local needs by developing,

stewarding and distributing charitable funds. In 2009, the continuing economic crisis deepened

these needs and, as the data suggest, community foundations, their donors and their volunteers

rose to the challenge. Their financial and human resources provided the means for

communities to mitigate some of the effects of the recession and to maintain a focus on longer-

term community goals.

California by the Numbers

Population

With the largest population of any state in the United States and with an economy that ranks

eighth globally, i California is home to a growing, increasingly diverse population of 37,253,956

individuals. According to the 2010 Censusii, California’s population grew 10 percent in the past

decade, with significant increases in the number and proportion of ethnically diverse residents.

At the end of the first decade of the 21st century, California is a truly “minority-majority” state, as

Chart 11 indicates.

26

Chart 11

California's Demographics

5.80%12.80%0.30%

0.20%

40.10%37.60%

2.60%

0.40%

White alone, Not Hispanic

Black or African American alone, Not Hispanic

American Indian and Alaska Native alone, Not Hispanic

Asian alone, Not Hispanic

Native Hawaiian and Other Pacific Islander alone, Not Hispanic

Some other race alone, Not Hispanic

Two or more races, Not Hispanic

Hispanic or Latino


According to the 2010 U.S. Censusiii, of the state’s population is comprised of 40.1 percent

White, Non-Hispanic, 37.6 percent Hispanic/Latino, 13.1 percent Asian/Pacific Islander, 5.8

percent African-American and .4 percent Native American. A total of 2.6 percent of California’s

residents come from multi-ethnic backgrounds.

The State Economy

In addition to its diverse population, the California economy is an engine of economic growth for

the entire U.S. and the world. In 2009, the total productivity of the state was estimated to be

$1,891,363,000,000 or 13.4 percent of the U.S. domestic economyiv. Per capita income in the

state in 2010 was $43,104, compared with $40,584 for the U.S. as a wholev. The state also has

a significantly higher unemployment rate than the nation.

27

Chart 12 – Unemployment Rates 2008 to 2011

Source: California Employment Development Department

In 2009, a total of 5.6 million individuals, or 15.3 percent of the total state population lived at or

below the federal poverty level, compared with 14.3 percent nationallyvi. The higher costs of

living in California mean that low income individuals and families struggle daily to meet even

basic needs, a problem that has been made worse by the protracted economic recession.

Communities across the state are seeing dramatic increases in the need for basic human

services such as food, housing, health care and employment assistance.

(ANY OTHER STATE DATA TO INCLUDE HERE?)

i “California Economy Ranking in the World,” Econpost. 3 February 2011, <http://econpost.com/californiaeconomy/california-economy-ranking-among-world-economies>. ii U.S. Census Bureau and the California State Data Center. “Table 1 – Total Population and Change:

2000 and 2010,” Census Data. <http://www.dof.ca.gov/research/demographic/state_census_data_center/census_2010/view.php>. iii U.S. Census Bureau and the California State Data Center. “Table 3A – Total Population by Race

(Hispanic exclusive) and Hispanic or Latino: 2010,” Census Data. <http://www.dof.ca.gov/research/demographic/state_census_data_center/census_2010/view.php>. iv Bureau of Economic Analysis, U.S. Department of Commerce, “Economic Downturn Widespread

Among States in 2009,” 18 November 2010, p. 10. < http://www.bea.gov/newsreleases/regional/gdp_state/2010/pdf/gsp1110.pdf>. v Bureau of Economic Analysis, U.S. Department of Commerce, “State Per Capita Personal Income

2010,” 23 March 2011, <http://www.bea.gov/newsreleases/regional/spi/2011/pdf/spi0311pc_fax.pdf>. vi The Sacramento Bee, Capitol Alert, “California’s Poverty Rate Jumps to 15.3 Percent,” 16 September

2010, <http://blogs.sacbee.com/capitolalertlatest/2010/09/californias-poverty-rate-jumps.html>.

Foundation FoundedAssets

(million)

# Board

Members

# FTE Paid

StaffStructure

# Disc.

Grants

$ Discretionary

Grants

# Total

Grants$ Total Grants

Gifts

Received

(million)

As of (Date)

MEMBERS

California Community Foundation 1915 1,120 19 58 Corporate 1399 22,200,000 5,856 129,200,000 134 6/30/2010

East Bay Community Foundation 1928 371 14 24 Corporate 67 904,884 2,433 45,672,890 75.1 6/30/2010

Fresno Regional Foundation 1966 45 15 6 Corporate 43 827,000 786 4,400,000 3.9 12/31/2010

Kern Community Foundation 1999 13.5 15 3 Corporate 6 24,750 208 1,035,307 1.1 12/31/2010

Marin Community Foundation 1986 1,049 9 45.4Corporate &

Trust348 31,100,000 2,746 54,800,000 33.8 6/30/2010

The Community Foundation of Mendocino County 1993 13 18 2.5 Corporate 30 100,000 178 1,080,851 2.2 6/30/2010

Community Foundation for Monterey County 1945 137.6 17 16 Corporate 170 2,506,065 702 6,475,509 6.4 12/30/2010

Orange County Community Foundation 1989 129.7 13 15.75 Corporate 299 1,450,000 2,104 26,015,000 27.7 12/31/2010

Pasadena Community Foundation 1953 29.6 13 3.25 Corporate 52 757,423 1,855 3,559,432 3.7 2/28/2011

The Community Foundation Serving Riverside & San

Bernardino Counties1941 58 21 8.2 Corporate 66 680,749 663 2,953,748 5.4 12/31/2010

Sacramento Region Community Foundation 1983 100 19 10 Corporate 116 932,360 1,138 4,351,000 5.1 12/31/2010

Community Foundation for San Benito County 1992 6.7 18 3.5 Corporate 47 491,694 72 720,000 0.7 12/31/2010

The San Diego Foundation 1975 471.4 29 43.75 Corporate 97 4,478,000 4,110 49,971,000 43.3 6/30/2010

The San Francisco Foundation 1948 956.8 11 48 Corporate 932 19,800,000 5,681 76,000,000 45.6 6/30/2010

San Luis Obispo County Community Foundation 1998 31 14 4.825 Corporate 90 308,255 274 880,513 1.6 12/31/2010

Santa Barbara Foundation 1928 264 18 24 Corporate 1,171 11,993,457 2,879 29,825,796 31.3 12/31/2010

Community Foundation Santa Cruz County 1982 50 19 10.9 Corporate 79 830,422 683 7,467,061 9.2 12/31/2010

Shasta Regional Community Foundation 2000 10.5 13 4.3 Corporate 0 0 389 894,000 1.9 6/30/2010

Silicon Valley Community Foundation 2007 1,830 20 94 Corporate 678 21,448,038 10,768 197,430,972 150.2 12/31/2010

Solano Community Foundation 2000 8 8 3.5 Corporate 72 44,378 155 509,184 0.5 12/31/2010

Community Foundation Sonoma County 1983 147 20 11 Corporate 175 1,200,000 1,200 18,700,000 18 4/11/2011

Sonora Area Foundation 1989 26 9 3 Corporate 40 500,000 373 1,100,000 1.2 12/31/2010

Truckee Tahoe Community Foundation 1998 18 9 5 Corporate 30 400,000 300 1,000,000 1.6 6/30/2010

Ventura County Community Foundation 1987 103 15 13 Corporate 36 229,345 883 6,400,000 5.3 9/30/2010

Community Foundation of the Verdugos 1956 8.5 22 2.5 Corporate 10 70,750 195 338,502 1.4 12/31/2010

TOTALS 6,997.3$ 398 463.38 6,053 123,277,570$ 46,631 670,780,765$ 610.20$

2010 COMMUNITY FOUNDATION PROFILES

Collected April 2011 - League of California Community Foundations


PO Box 1638 · Rohnert Park, CA 94927

Phone: 707.586.0277 · Fax: 707.586.1606

www.lccf.org April 2011

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