Raising Private Funds: Starting & Building a Local Education Foundation

1. Raising Private Funds: Starting & Building a LocalEducation Foundation Presented by NJ Education Foundation Partnership (NJEFP) NJSBA Workshop 2011 October 25, 2011

2. Presenters: • Marcia Smith Fleres, MBAExec. Director, NJ Education Foundation Partnership • Robert Sopko, EdDAdjunct Professor, Rider UniversityFormer Superintendent of SchoolsBranchburg, Hopewell Valley, & Hunterdon County • Patricia BergerFounding PresidentThe Foundation for Manalapan Englishtown Regional Schools Marcia Smith Fleres, NJEFP, Inc.

3. NJ Education Foundation Partnership • Over 75 local education foundations • Enhances public education in New Jersey by empowering local education foundations. • Assists local communities and schools to develop and grow a local education foundation. • Provides training and education on best practices, fund raising, board development, marketing, and more. • Promotes collaboration among education foundations, schools, and community-based organizations. Marcia Smith Fleres, NJEFP, Inc.

4. NJEFP (continued) • Coordinates with other NJ education organizations to support public education in New Jersey • Increases public awareness of the vital role of local education foundations in NJ • Advocate for quality public education in NJ Marcia Smith Fleres, NJEFP, Inc.

5. What is an Education Foundation? • Private, nonprofit 501(c)(3) tax-exempt charitable organization under the IRS rules. • Chartered as “nonprofit corporation” in NJ • Distinct from Board of Education and administration • Works in partnership with school district • Augments, supplements, or complements programs currently being provided by the district • In NJ, they are usually volunteer driven. Marcia Smith Fleres, NJEFP, Inc.

6. Purpose of an Education Foundation • Support and enhance education for all students • Solicit, manage, and distribute funds to programs not otherwise funded by school district • Identify and secure financial resources • Develop partnerships with corporations, businesses, nonprofits, and the community • Support mission of the local school district • Engage the community • Create volunteer opportunities Marcia Smith Fleres, NJEFP, Inc.

7. Why an Education Foundation? Managing in Difficult Times Schools are currently facing many challenges • Decreased tax revenues & state funding • Taxpayers demanding lower taxes • Pressure to do more with less • School budgets not passing • Higher operating costs • Increased mandates, regulations and less flexibility • Budget caps • Elimination of non-essential programs Marcia Smith Fleres, NJEFP, Inc.

8. Value of a Local Education Foundation • Provides financial support for academic and enrichment programs • Enhances educational opportunities for students • Builds communication and promotes school district • Raises awareness of school needs • Increases parent and community involvement • Offers the community the opportunity to be a part of the solution…support education. Marcia Smith Fleres, NJEFP, Inc.

9. Do Education Foundations compete with PTA, PTO, or Booster Clubs? • Education Foundations are not intended to replace or supplant parent-teacher or booster clubs. • Education Foundations may collaborate with groups to fund teacher grants or special projects • Education Foundations tend to focus on academics and not athletics. • Education Foundations serve the whole district, not just an individual school, grade level or club Marcia Smith Fleres, NJEFP, Inc.

10. Building an Education Foundation • Identify key people and partners (Be inclusive) • Hold a community meeting • Create a diverse steering or feasibility committee • Determine name, mission, bylaws, and 3-yr budget • Establish Board of Directors/Trustees • Legal steps • IRS Employer Identification Number (EIN) • Incorporate as nonprofit in State of NJ • IRS 1023 application for 501(c)(3) exemption • Register with NJ Division of Consumer Affairs Marcia Smith Fleres, NJEFP, Inc.

11. Best Practices of Effective Education Foundations • Working board of trustees and governance practices • Superintendent & BOE member ex-officio • Financial management & adequate resources • Alignment with district goals and priorities • Programs that resonate in your community • Strategic planning: Mission, Vision, Case Statement, G&O • Supportive organization structure • Executive director – when resources allow • Collaboration and partnerships Marcia Smith Fleres, NJEFP, Inc.

12. What Do Foundations Fund? • Classroom, grade or school-wide grants for innovative programs • District focused programs • Academic scholarships (note of caution) • Special programs • Special equipment • Professional development • Alumni websites (i.e. www.AlumniChannel.com) **Funding should be aligned with priorities of the district Marcia Smith Fleres, NJEFP, Inc.

13. What is the best source of revenue? • Board of Trustees • Corporate Grants/Donations • Foundations • Fundraising Events • Fundraising Sales • Small Business • Individual Donations • Begging Marcia Smith Fleres, NJEFP, Inc.

14. 2010 charitable giving Total = $290.89 billion Source: Giving USA Foundation: Giving 2010 Marcia Smith Fleres, NJEFP, Inc.

15. Charitable Giving 2010 Marcia Smith Fleres, NJEFP, Inc.

16. How do Foundations Raise Funds? • Individual Donations • Direct Ask/Power of 100 ….. • Teacher Recognition • Alumni • “Signature Events” (golf outings, auctions, galas) • Corporate Grants and Partnerships • Foundation Grants • Major Donor “Asks”All donations to the foundation are tax deductible to the fullest extent of the law! Marcia Smith Fleres, NJEFP, Inc.

17. How are Funds Allocated? • Foundation’s funding is aligned with district priorities. • The foundation’s Board of Trustees decide which projects/programs to fund. • Grant guidelines, policy & procedures are important. • Focus on district, school, and/or grade. • Teacher/staff grants are funded on a competitive basis. • Donors may direct their contributions to specific areas (restricted donations). Marcia Smith Fleres, NJEFP, Inc.

18. Best Practices of Effective Education Foundations • Working board of trustees and governance practices • Financial management & adequate resources • Alignment with district goals and priorities • Programs that resonate in your community • Strategic planning: Mission, Vision, Case Statement, G&O • Supportive organization structure • Collaboration and partnerships Marcia Smith Fleres, NJEFP, Inc.

19. How to Contact Us NJ Education Foundation Partnership Inc. 609-310-1795 info@njefp.org www.NJEFP.org www.facebook.com/njefp The State Affiliate ofNational School Foundation Association www.schoolfoundations.org Marcia Smith Fleres, NJEFP, Inc.