An Overview Lisa Cremin, Director, Metropolitan Atlanta Arts Fund, Nonprofit

Loan Fund, Social Innovation, Community Partnerships Audrey Jacobs, Director, Center for Family Philanthropy

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History

Founded in 1951 as The Metropolitan Foundation of Atlanta Atlanta’s then four largest banks—Citizens and

Southern National, First National Bank of Atlanta, Fulton National Bank and Trust Company of Georgia

Purpose – 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

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History and Background

• 1997 Foundation Renamed • 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.

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Our Philanthropic Framework

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Our Philanthropic Framework

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Observe/think

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Philanthropic Services

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Donor Advised Funds

Donor Advised Funds • 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

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Donor Advised Funds

• 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

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Donor Advised Funds and Private Foundations

• 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

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Other Funds Held at The Community Foundation

• 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

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Who are the Foundation’s Donors?

• Predominantly metro Atlanta residents • Fulton, Dekalb, Gwinnett • Age 50+ • Caucasian (97%) • Few minorities • Both male and female • High net worth • Entrepreneurs

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The Community Foundation’s Role vis-a-vis Donors

Serve as personal philanthropic advisor to individuals and families who want to make a difference through their long-term giving.

Provide multiple giving opportunities for individuals

and families Provide deep knowledge about nonprofit

organizations and critical community issues

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Donor Services and Donor Engagement

• Grantmaking- grants processing,** due diligence • 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

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The Center for Family Philanthropy

Launched in 2000 Customized 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

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Elements of a Successful Philanthropic Roadmap

• Values • Interests • Mission • Research • Visits • Consultation • Involving others– Involving the

Next Generation • Grantmaking • Strategy and approach • Evaluation– results and impact • Legacy

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Community Foundation Impact in 2010

• Received $138 million in gifts from donors and 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.

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Donor Behavior

2010 Donor Survey 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

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Donor Behavior

Considerations in supporting nonprofit organizations: 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%)

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Current Research on Donor Behavior

“Money for Good,” Hope Consulting Increasing Charitable Donations From Individuals Key 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.

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Money For Good Research

Recommendations: • 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

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Community Partnerships

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Funds and grantmaking programs

• Common Good Funds: – Is a pool of funds driven by

the Board – Is not always granted

competitively – Is not General Operating

Support, a type of grant – Grants are vetted

rigorously/individually; used as basis for donor information

– Exclude certain organizations

• Donor Advised Funds: – Are driven by donors – Comprise the majority (95%)

of the foundation’s funds & awards ($96M)

– Are only made competitively when requested by donor

– Are made for all kinds of grants

– Are not vetted beyond legalities

– Do not exclude any legal nonprofit

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2012 Community Partnerships Committee

•Administrative Fees •Payouts: Designated Funds •Grants from other Funders •Fundraising & Events •“Fees for Service

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Grantmaking Philosophy

We fund well integrated organizations that have: Effective programs Diverse, well-managed funding Strategic planning Capable boards and staff leadership

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Assumptions

The 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.

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Our operating thesis as of 2009:

Providing general operating support and

targeted management consulting services will lead to stronger, more sustainable nonprofits and enhance our collective quality of living.

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Philanthropic (Donor) Services

• 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

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Community Initiatives

• 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.

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Sample of Community Initiatives KEY: TCF Organizational Excellence Important Program ends Important

Program Engaging Philanthropists Limited events before or is spun off programStrenthening Nonprofit Sector Invlovement program is milestone

Advancing Public Will official

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Neighboorhood Fund X X· Mott Foundation· Local match· 3-year program

TCF Program TCF Program

TCF Partners with Georgia Center for Nonprofits Spun off into Support Center for (formerly Nonprofit Resource Center) independentNonprofits (SF) for · Institutional Funder entityworkshops · 3-year plan X

Decision to continue

NEA challenge $ to X Metropolitan Atlantastabalize arts groups Arts Fund

· Challenge $· TCF Grant match

National Arts Strategies to ATL for $ assessment

TCF receives grant from NeighborhoodFord for CDC support Development(ATL Housing Fund) Partnership

· merger of 2 orgs

Atlanta Women's 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 independentin restart dialogue · Institutional Donors entity

· 1-year plan

TCF 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 StatewideJohn); designed for event funding Opportunity Initiative

· 3-year plan

Intergroup Relations Program endProgram· Ford, 2-year plan· local match

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A Sampling of Past/Current Community Initiatives (1/2011)

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Community Leadership

• 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

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Working Externally

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Our Path

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Measuring Our Progress

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2010 Bank of America Study of High Net Worth Philanthropy

Findings with respect to Community Foundations • 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

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Conclusion

• Importance of investing time to understand donors

interests, passions, drivers

• Continue cultivation over time, through generations

• Importance of collaboration

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Conclusion

Thank You for Your Interest!!

Questions & Answers