1. Impact of Proposed State Legislation on FCS Foundations
Senate Bill 540 Proposal Regarding Direct Support Organizations (DSOs)

2. Foundation Representatives
William J. Shustowski, Jr., Ph.D., CFRE, AVP of Institutional Advancement and Executive Director of the PHSC Foundation, Pasco Hernando State College; Florida Council for Resource Development Board Member Frances Neu, VP of Institutional Advancement & Executive Director of the SPC Foundation, St. Petersburg College Stephen Shear, Executive Director of the HCC Foundation, Hillsborough Community College

3. SB540 re: DSOs
Beginning July 1, 2022, a community college board of trustees may not permit any Florida Community System institution direct-support organization to use personal services.
The board of trustees may not permit the use of state funds for travel expenses by any Florida Community College System (FCCS) institution direct-support organization.
The chair of the State Board of Community College (SBCC) may appoint a representative to the board of directors and the executive committee of any statewide direct-support organization
The chair of the SBCC or the chair’s designee shall also serve on the board of directors and the executive committee of any DSO established to benefit FCCS institutions
A statewide direct-support-organization may not use public funds to acquire, construct, maintain or operate any facilities

4. Current Structure & Processes
Funded primarily by personal gifts, charitable donations and grants to help fulfill the mission of Florida Colleges
Funding is primarily restricted - money can only be used for specific purposes, providing reassurance to donors that their contributions will be used in a manner they have chosen
Funding is allocated toward scholarships, academic programs, brick and mortar projects and overall college enhancement
Foundations raised nearly $90 million in to support these areas not funded by the state
Approximately $9.8 million supported administrative costs with few personnel (many of whom perform other duties beyond providing Foundation support)
Annual independent audits (internal and external) allow for scrutiny and transparency of financial accounts and expenditures, including travel
Governed by independent boards, not politically appointed, aligned with institutional boards of trustees for dual control (refer to SB540 Comparative Summary Analysis and Notes from M. Brawer)

5. Why Donors Give to Foundations
PERFORMANCE AND RESULTS Donors rely on Foundations for the prudent
investment and management of all gifts including cash, securities, property, bequests and
Trusts; create a steady, reliable, long-term funding source to support scholarships and
programs that would otherwise be paid for by tuition or state funding.
ACCOUNTABILITY Fiduciary responsibility to donors, students, faculty, staff, trustees, media. Legally accountable to IRS and state regulatory agencies; required to file annual audit report and IRS Form 990, a document available for inspection and routinely available on public websites.
METICULOUS OVERSIGHT Foundation Boards represent a diverse mix of professional and business leadership purposefully selected for their specialized legal, business, governance and financial management expertise (rather than politically appointed).
CONFIDENTIALITY Often, Foundations can protect the privacy of donors who may require that the details of their contributions and personal finances not become a matter of public record.
For every $1 Colleges
spend on fundraising,
Foundations return
almost $10

6. Projected Impact of SB540
Reduction in staff dedicated to resource development; remaining staff compelled to prioritize generating support for personnel services – the most difficult and time-consuming dollars to raise.
Worst case scenario, potential cease of operations.
Significant reduction in resources generated for our Colleges to support scholarships, academic programming, facilities and student support enhancements; consequential adverse effect on student success.
Given the substantial percentage of students who rely on financial assistance to help cover the cost of tuition and books, a reduction in scholarship funding may produce worrisome outcomes including: more limited access to higher education, decreased student enrollment; longer completion rates and a corresponding increase in student loans.

7. Proposed Future Reporting
Sharing the total contribution and impact of our system-wide philanthropic success
Standardized data to be collected individually, but reported in aggregate:
Most recent fiscal year completed: start and end date
Total funds raised by Foundation
Total Revenue by Foundation: funds raised plus any investment income
Total provided to the College by the Foundation: total of all resources provided to the college
Total staffing (including Benefits): list those that fall under foundation staffing currently

8. Questions or Comments?