a shared planned giving
DESCRIPTION
Shared Planned Giving from Caster Family Center for Nonprofit Research event on June 5, 2009. The event was sponsored by U.S. Bank.TRANSCRIPT
A Planned Giving CollaborativeChildren’s Village ●Inwood House ● Safe Space
Time Tested Models of InnovationJune 5th, 2009
University of San DiegoSchool of Leadership & Education Sciences
About The Children's Support Foundation
• The Children's Support Foundation is a planned giving collaborative among three leading New York City youth service agencies - Children's Village, Inwood House, and Safe Space
• Designed to create lasting support for New York's most vulnerable youth and young families.
• Provides donors the opportunity to make a significant impact on persistent child and family poverty in the New York metropolitan area.
• 30,000 youth served through: child welfare, community-based health services, school-based teen pregnancy and AIDS prevention, youth leadership, young adult support services and specialized maternal health and family support services for pregnant and parenting teens.
Children’s Support Foundation Structure
• 501 (C) 3 organization
• Governed by a Board of Directors comprised of staff and board representatives from each member agency, and volunteers from the philanthropy and financial advisory fields.
• Supported by a Professional Advisory Committee, whose members represent the nation's leading investment, wealth management, and philanthropy advisors.
• Seed funding for first two years provided by the Booth Ferris Foundation
Key Factors Leading to Collaboration Mutual Goals for long-term stability and sector leadership: Increased endowment support through planned giving is a strategic goal of each organization.
• Protects against economic downturns• Ensures Comprehensive & High Dosage Service • Supports Innovation
Key Factors Leading to Collaboration
Similar Capacity Challenges: Individually, agencies lacked the ability to launch and sustain a planned giving effort with supporters:
• Staff Expertise • Board Knowledge & Experience• Fiscal Clout -- to attract quality financial
investment management• Marketing Tools
Key Factors Leading to Collaboration
Sound, Confident & Innovative Leadership:
Success requires buy-in and support by the agencies’ Executive Directors, Development Directors, and their Boards.
Key Factors Leading to Collaboration
Compatible Missions and Philosophies
• Serving especially vulnerable young people: Children’s Village -- delinquent boys Inwood House -- pregnant and parenting teens and teens at high risk for teen pregnancy and AIDS Safe Space -- runaway and homeless youth
• Strength-based approaches to helping young people overcome persistent child and family poverty
• Evidence-based practices and focus on outcomes• History of working together & referrals for service
The Concept Problem:
• Planned giving programs often provide up to 30% of revenues for medical and higher education institutions.
• Very few human service organizations can afford the up-front costs to staff and maintain this specialized fundraising activity.
Solution: • Pool talent, contacts and resources to build expertise and
capacity ►• Establish more meaningful relationships with donors ►• Cultivate endowment gifts or long-term program support ►• Future generations will reap the benefits
.
.
The Connection
• Program collaboration between Safe Space and Children’s Village leads to dialogue on funding needs and capacity building
• Children’s Village’s early planned giving effort provided key insight to financial management requirements
• Greater dimension and clout needed to attract potential funders, financial management and volunteer support
• Executive Director of Safe Space contacted the Executive Director of Inwood House to invite their participation.
Key Start-Up Steps
• Create a legal entity with By-laws: Children’s Support Foundation
• Foundation allows donated funds to be pooled and distributed as designated by funders, protects the collaborators’ investments and interests, and simplifies overhead management.
• Secure Board approvals of Children’s Support Foundation
• Elect Officers and Board Members • Secure J.P. Morgan Chase to manage the Children’s
Support Foundation’s funds and planned giving vehicles• Secure $50,000 start-up funding from the Booth Ferris
Foundation • Recruit non-agency Board members and Professional
Advisory Council to expand audience reach and increase expertise
Essential Resources
• Planned Giving expertise in one partner agency and advising attorney: Jeff Sobel of Safe Space and Andrew Grumet of Schiff Hardin
• Development staff leadership to move process forward • Legal expertise for creation of the Foundation; and for
each agency’s review and approval of the Foundation By-laws
• Funds for required legal services to incorporate the foundation
• Executive Directors and key Board leadership to help sell concept to agency Boards
Stakeholder InvolvementExecutive Directors • Reached out to each other for initial consideration of project and to
sell concept to agency Boards
Development Directors• Directed overall effort – Jeff Sobel, Safe Space• Advanced group process and within their agencies• Reported on agency progress/setbacks to inform efforts• Met regularly as a working group & shared tasks and expertise for
completing key steps• Hold seats on CSF Board
Agency Board Members • brainstorming meetings and due diligence• key spokespeople for the project in winning Board approval• hold seats on the CSF Board
Stakeholder Involvement
Legal Counsel, Andrew Grumet, Schiff Hardin• Pro bono legal counsel• Participated in all conceptual meetings• Proposed the creation of the foundation• Provided the legal document and fielded
questions/concerns from individual agency board members, staff and counsel
• Holds a seat on the CSF Board
All CSF Board Members • reviewed the By-laws• took part in the RFP process for securing the financial
management service provider
Obstacles Encountered in
Design/Creation Process Board Approval Delayed Six Months• Competing priorities on Board Meeting agendas
• Concern that the Planned Giving effort would compete with Children’s Village and Inwood House capital
campaigns.
ImplementationKey Steps
• Marketing materials created for Children’s Support Foundation and individual agencies
• Website created for Children’s Support Foundation
• Press Release & Media List prepared for launch of the Foundation with targeted follow up.
• Cultivation Events for Agency Supporters, Institutional Funders, and Financial Advisors - Effective Poverty Fighting Strategies & Planned Giving- Estate Planning in Volatile Times
- Ethics in Estate Planning Professional Networking Event
Obstacles to Implementation
Wall Street Turmoil• May 2009 information breakfast was originally scheduled
for November 2008, and was postponed. The May event drew about 25 guests.
Lead Gift effort for long-term Foundation sustainability not
effective. • Turned efforts to individual and institutional giving that
would the support the agencies’ endowments & direct service efforts.
Major Change from Original Idea
Creation of Foundation
• Shift from mutual agreement among agencies to
collaborate to legal foundation
Outcomes
Enhanced ability to develop more meaningful relationshipswith supporters. All three agencies have:
• Planned Giving knowledge
• Professional materials for educating and communicating with supporters
• Top financial management firm to help attract, cultivate and execute planned gifts
• Professional Advisory Council for advice cultivating planned gifts and advocacy within the financial advisory and philanthropy fields
OutcomesChildren’s Village has completed its first Charitable Gift Annuity
Inwood House has been advised of one Will bequest
Children’s Support Foundation has been profiled in BoardSource, the New York Times, and the Chronicle ofPhilanthropy
Agencies are discussing ways to share other overheadexpenses
The Children’s Support Foundation has created a model forcreating legacy giving for social service
Advice
Incorporate individuals from the organizations with
an ability to “make a deal” and find common ground.
Seek assistance of qualified experts who have done this
type of project or similar projects before.
Keep your eye on the “big picture” and don’t get caught
in minutia.
www.childrenssupportfoundation.org