Barberton Community Foundation Fund Overview Grantee Workshop March 2015

1. Barberton Community Foundation Fund Overview Grantee Workshop March 2015

2. Agenda • Types of Funds • How to Establish a Fund • How to Contribute to a Fund • Looking Ahead

3. Types of Funds • General Fund | In addition to our general operating fund and assets, scholarships and community initiatives are powered by this fund. Also referred to as ‘Principle Fund’. • Endowment Fund | Totaling a minimum of $5,000 within five years of opening, Endowment Funds are directed at a Barberton-based cause of donor’s choosing.

4. Types of Funds (cont.) New • Pass-Through Fund | A flexible way to support project based goals, a Pass-Through Fund acts as a charitable checking account – with the potential for immediate impact. • Now and Forever | Tracked and invested in two separate pools by the Foundation. This type of fund is for organizations that have a long-term goal for which the 5% spending policy limitations do not meet the organizations needs.

5. Fund Categories Endowment and Pass-Through  funds are available  in the following categories: • Designated | The donor may support one or more specific charitable organizations that benefits Barberton • Field of Interest | The donor may choose to invest in a specific cause or initiative that benefits Barberton • Donor-Advised | The donor may choose how distributions are directed within Barberton annually • Scholarships (Endowed only) | Supports secondary education as recommended by donor

6. Areas of Interest Established funds, that support the following areas, are available: Arts, Culture and Events; Athletic Legacy & Programs; Beautify Our World; Disaster and Crisis Relief; Fighting Hunger; Helping Hands; Learning Opportunities; Promoting Literacy; Preserving History; For our Furry Friends; Medical Care and Health Contributions can also be made directly to the General Fund

7. How to Establish a Fund • Identify personal charitable giving goals • Identify fund type and area of interest • Contact Jim Stonkus at the Foundation to schedule a one on one meeting

8. Barberton Betterment Fund • Created by Jim and Kay Stonkus • Donor-Advised Fund • Improves the quality of life for the residents of Barberton

9. How to Contribute to a Fund • www.barbertoncf.org/donate-now • Cash or check to the Barberton Community Foundation • Appreciated securities • Leave a Legacy • Bequest through a trust or will • Charitable Remainder Trust (CRT) • Benefit plan / IRA distribution • Charitable Lead Trust (CLT) • Real Property

10. Looking Ahead • Board approved and adopted a Donor Development and Major Gift Plan earlier this month • Continual research of options that attract growth and meet fund holder needs in order to secure future of Barberton nonprofits

11. Thank you!

12. BarbertonCommunity Foundation Finance Overview March 24 & 25, 2015

13. Current Financial Picture • Total Portfolio = $86,988,580 • Includes over $2.2 Million in funds • 3-year rate of return • 5.4% composite • 6.0% composite excluding Board Designated Investments (i.e. investments) • Current liabilities, including outstanding grants and debt - $7.7M

14. What can we spend? • Current spending rate is 5% • Spending includes: • Operating expenses for overhead, managed properties and debt service, net of related income (~1.1%) • Annual grants and scholarship pool (~3.6%) • Remaining is Quarterly (~0.3%)

15. Change in Approach to Spending - Use Reserve Fund to increase annual granting & get more funds out working in the community! - Old Approach – 2015 granting would be $292,000, potentially dropping to $16,000 in 2018 - New Approach – 2015 granting is $350,000, increasing annually by inflation

16. How will this work? • Reserve Fund has ~$990,000 following 2014 - currently need $780,000 more • Components of inflows & outflows will be tracked and include investment returns, various revenues and any areas that we may be under budget. • Everyone works Together!

17. More long-term Vision Steps Being Taken • Limiting Board Directed Assets exposure • Limiting Foundation Debt • 5% of Net Assets until High School is paid off • 10% of Net Assets thereafter • Limiting Use of Reserve Fund until 7-year granting goal needs are met • All non-designated new money and all savings or unused monies go towards this goal.

18. Other Ways we are Trying to Help You • Added a hybrid ‘Now & Forever Fund’ option • Provides funding now while working together on a long term revenue stream • Increased promotion of individual funds with unique on-line giving codes • Fund Brochure

19. Questions? Please reach out to me with any finance related questions or to find out about opening a fund. Contact Information: jstephenson@barbertoncf.org 330-745-5995

20. Jim Stonkus Communicating Your Message President/CEO

21. Creating Impact • Create a collaborative partnership between the funder and grantee • Helps “sell” the valueof your program • More needs than resources available • Shows funders their “ROI” and makes a stronger case for future funding

22. Communicating Your Impact • Share stories and photos that reflect the impact of grant dollars – make it personal and measurable. • Channels: • Social Media (Facebook, Instagram, LinkedIn) • Printed material (newsletter, brochure, program, annual report) • Electronic material (website, email)

23. For Our Fund Holders The Foundation helps support their efforts to grow their fund! • Personalized giving link through Qgiv • Foundation managed • Share the impact their organization is making in the community • Facebook, community report, electronic newsletter • Create a personalized plan that supports their philanthropic goal Not just about asking for money, its about finding a partner that finds the relationship mutually beneficial - this will help secure them for years to come.

24. Sample Language • Some ideas on how to recognize the Foundation’s partnership and areas of focus with your non-profit program: • This event made possible by a grant from the Barberton Community Foundation. • Services made possible in part by the Barberton Community Foundation. • The Barberton Community Foundation believes in Educational Excellence and supports this program through grant funding. Economic Development | Educational Excellence | Community Image | Social Services

25. Stay Connected acolando@barbertoncf.org facebook.com/barbertoncommunityfoundation

26. Strategic Granting – Leverage, Collaborate, Collective Impact Strategic granting is vitally important, now more than ever… But, what does strategic granting mean to you? Simply put, nonprofit capacity building refers to activities that improve and enhance a nonprofit’s ability to achieve its mission and sustain itself over time.

27. Strategic Granting

28. Why Consider Strategic Granting?

29. Strategic Granting Q’s Can you identify our impact? Do we really know that our granting has made a significant impact in the community? If so, what has? If not or very little, then we needed to consider strategic granting….

31. Example of Strategic Granting Sisters of Charity Foundation of Canton, a case study -moved towards strategic granting after realizing they had funded so many projects but couldn’t identify the impact of their responsive granting

32. Sisters of Charity Foundation, a case study • Invested $27.3 million, or 69% of their granting dollars and could not measure the impact nor their leveraged dollars • What does “leverage” mean?: • Leveraging: using one funding source to attract others • Here’s what makes leveraging so attractive to funders: • It shows that others believe in the project. • It addresses the issue of sustainability, because those who sign on as partners at the start have an incentive to continue supporting the project after the grant ends. • Collaboration adds stakeholders to the project.

33. Leveraging is also beneficial to the grantee, for obvious reasons. • The types of funds that may be counted as committed funds toward leveraging grants are varied: • Some are very specific and require "hard," or cash, commitments. • Other funders will allow "soft," or non-cash, commitments: • volunteer labor • in-kind goods and services (e.g., supplies, equipment, space, and professional services).

34. Leverage…. Part of our assessment was how to define leverage. Conclusion: leverage is defined as “value added” which can be cash or in kind including but not limited to, supplies, volunteer, professional assistance, and/or equipment.

35. Sisters of Charity Foundation, a case study Once strategic granting was implemented, they were able to truly begin to define what percentage of their grant dollars was leveraged.

36. Sisters of Charity Foundation – a case study • Responsive Efforts • Led by community members or non profits • Multiple funding sources, less management control • Response to non profit needs or emerging community needs • Defined life cycle and short term effort • Varying levels of staff and board involvement • Limited or no evaluation quantitative and qualitative outputs Sisters of Charity provides around 30% of their granting dollars to responsive efforts

37. Sisters of Charity Foundation – a case study • Strategic Collaborations • Led by a collaborative group including the foundation • Multiple funding partners • Focused on improving or coordinating community services • Longer effort but may not go through all phases of an initiative • Limited board involvement, high staff • Limited evaluation and quantitative and qualitative results Sisters of Charity provides around 17% of their granting dollars to strategic collaboration efforts

38. Sisters of Charity Foundation – a case study • Foundation Led Initiatives • Initiated and led by foundation • Primary funder and manager • Focused on systemic change • Long term commitment • High board and staff involvement • Long term process and outcome evaluation with quantitative and qualitative results from a third party evaluator Sisters of Charity provides around 42% of their granting dollars to foundation led initiative efforts

39. Opportunities/Ways to Collaborate What can you do as an organization to collaborate? How to engage BCF as a partner One way could be through collective impact

40. Collective Impact What is Collective Impact? Collective impact is the commitment of a group of people from different sectors to a common agenda for solving a complex social problem

41. Too many organizationsare working in isolationfrom one another.

42. Collective impact bringspeople together, in astructured way, toachieve social change.

43. It starts with a common agenda. That means coming togetherto collectively define theproblem and create a sharedvision to solve it.

44. It establishes shared measurement. That means agreeing totrack progress in the sameway, which allows forcontinuous improvement.

45. It fosters mutuallyreinforcing activities. That means coordinatingcollective efforts to maximizethe end result.

46. It encourages continuouscommunication. That means buildingtrust and relationshipsamong all participants

47. And it has a strongbackbone…. That means having a team dedicated to orchestrating thework of the group.

49. Connecting to our Strategic Plan Areas of Focus – Educational Excellence Educational Expectations of students and parents Graduation rates of BHS students Educational test scores Educational attainment of Barberton residents College graduation rate of BHS students Parental involvement Number of school district partnerships and internships with the business community

50. Focus: Community Image Objective professional annual community and regional opinion survey Attendance evaluation at major community events Home purchases by those returning or coming from outside Barberton Number of positive stories in the media about Barberton