Presentation on theme: "Consultants for Community Resources"— Presentation transcript:
1 Consultants for Community Resources Foundations 101Presented by:Michael MarcusConsultants for Community Resources(847)
2 Distinguishing Characteristics of Foundations TypeSource ofFundsGeographicFocusKinds ofCharge or PurposePublic CharityCommunity:About 900 inthe U.S.Contributionsfromindividuals,families,corporations,and otherentitiesLocalcommunityareaDesignated,restricted,unrestricted,“hybrid.”Donor/advisorBroad, publicbenefits,community needsin areas of health,social service,education, arts andhumanities, andcivic affairsClassified as “publiccharity,” favorabletax implications,asset managementby community-basedtrustee banks, publicdistributioncommitteeCorporate:About 3,000 inCorporateprofitsCommunitiesin whichcorporationdoes businessNotapplicableDetermined by thecorporation –scope may bebroad or limitedClassified as privatefoundation, lessfavorable taximplication, assetmanagement atdiscretion ofcorporation, privateIndependentFamily: About47,000 in theU.S.Private AssetsDetermined bythe donors –local, national,or internationalApplicabledonors – scopemay be broad orlimitedimplications, assetdiscretion of thedonors, privateConversion:About 170 inSale of not-for-profit healthprovidersCommunityAreaUsuallyrestricted tohealthdetermined bydocuments of saleClassified as PublicCharityNote: With thanks to the Chicago Community Trust,100 E Wacker Drive, Suite 1400, Chicago, Illinois (312) ,Note: With thanks to the Chicago Community Trust, 100 E. Wacker Drive., Suite 1400, Chicago, Illinois (312)
3 2004 CONTRIBUTIONS: $254.00 BILLION BY SOURCE OF CONTRIBUTIONS Source: AAFRC Trust for Philanthropy/Giving USA 2002
4 2004 CONTRIBUTIONS: $254.00 BILLION BY TYPE OF RECIPIENT ORGANIZATION Source: AAFRC Trust for Philanthropy/Giving USA 2002
5 THE FOUNDATION GRANT PROPOSAL The most common format for foundation grant proposal includes six parts:Executive summary;Description of the organizationNeed addressed by the proposalProject description (including a plan for evaluation)BudgetAppendix
6 THE GRANTMAKING PROCESS Initial ScreeningReview by StaffPreparation for Board ActionBoard ActionNotifying the ApplicantStaff Follow-upReportingClosing the File
7 THE GRANTMAKING PROCESS: APPLICATION Initial Screening:Assignment to StaffSufficient informationDevelopment of project folderDetermine relationship to foundation’s policy and program focusEligibility, i.e. 501 (c) (3), geography, etc
8 THE GRANTMAKING PROCESS: APPLICATION Review by Staff :Further consideration of relationship to foundation focusEvaluation of utility of the projectEvaluation of organizational capacityReview of time table and cost estimatesReview of the organization’s budget and strategic fundraising planOther project and organizational funders
9 THE GRANTMAKING PROCESS: APPLICATION Review by Staff :Relationship to other funding made by the foundation Evaluation of utility of the projectReview of evaluation componentSubmittal to technical experts for outside review
10 THE GRANTMAKING PROCESS: APPLICATION Review by Staff :Site visit, not your ordinary dog and pony showOther project and organizational fundersStaff decision, i.e. hold for further study, recommends grant, recommend decline, return for re-write and amendment.
11 THE GRANTMAKING PROCESS: APPLICATION Preparation for Board ActionSummary of proposal prepared and distributed to the Board of Directors or Distribution Committee, includinghistory of similar projectsstatement of the relationship to foundation program, policies, and focusstaff recommendations including contingency requirements, i.e. matching grants, budget revisions, staff hiring, program plan, timelines, etc.
12 THE GRANTMAKING PROCESS: APPLICATION Board ActionDiscussion in light of knowledge, experience, and interests of Board members, Foundation policy and program focus, and available funds:Grant or declineGrant with contingenciesRefer back to Staff for further study .
13 THE GRANTMAKING PROCESS: APPLICATION Notifying the ApplicantLetter to the grantee including :Grant or declineGrant with contingenciesRefer back to Staff for further study .Letter from grantee acknowledging the grantTransmittal of grant payments on scheduleNotification of decline, almost always by letter - a call to follow-up is usually okay.
14 THE GRANTMAKING PROCESS: APPLICATION ReportingSemi-annual fiscal and program narrative reports received from grantees;Classification of projects in grant taxonomy;Annual written report published by the Foundation and made available to the public;Reports filed with the IRS