1. Education Foundations: Policy and Practice
Speaker:
Megan Dzwonkowski
Executive Director, New Jersey Education Foundation Partnership

2. What is an Education Foundation?
A local education foundation is an independent, nonprofit corporation typically recognized by the IRS as a 501(c)(3) tax-exempt organization. 
It has its own board of directors and its own staff, both paid and volunteer. 
An education foundation operates separately from the school district and board of education, but a strong working partnership among all entities increases the chance for long-term success. 
An education foundation is most often established so that funds can be raised to cover costs that the school district cannot cover.  

3. Why have an education foundation?
The establishment of a successful foundation can provide the school district with additional funding that can be used for a variety of purposes including:
innovation
professional development
pilot programs
technology
fine arts
extracurricular activities
other programs or services not able to be funded under the district's budget. 
Foundation’s fundraising goals must align with the district's strategic plan.

4. Does an Education Foundation compete with PTO/PTA or Booster Club?
No, as it is not intended to replace or supplant parent-teacher or booster clubs.
No, although it may collaborate with groups to fund teacher grants or special projects.
No, as the focus is typically on academics and not athletics.
No, a Local Education Foundation serves the whole district, not just an individual school, grade level or club.

5. Who Makes up an Education Foundation?
Local Education Foundations are most often made up of volunteers who want to make a positive impact on their community by supporting public education.  
As volunteers they often lack experience in managing a foundation, fund development and best practices in general.

6. Creating 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  
Identify a school district representative to be part of committee – this person can be the Superintendent, Business Administrator or Director Curriculum.
Dedicated community members.
Retired teachers or administrators.
Local business owners.
An attorney and CPA would be helpful.

7. Creating an Education Foundation (cont.)
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
Join NJEFP
Nonprofits receive special tax status because they address problems that the government and business can't or won't deal with.

8. What does it mean to be a 501c3 organization?
Organization must be organized and operated for purposes beneficial to the public interest.
Organization must have a written plan for its own dissolution.
No substantial part of the organization’s activities may attempt to influence legislation.
The organization must not participate in any political campaign on behalf of any candidate.
Why do 501c3 organizations exist? Nonprofits organizations relieve the government’s burden for supplying services to citizens. They support the common good of the community. And in this instance that common good is public education.
A non-profit can support public policy. They can put some funds towards an effort to influence policy, like a referendum But cannot be a substantial amount. The majority of funding cannot be spent on influencing policy.
A non-profit can never fund a candidate or participate in a campaign.

9. How do you get started? Articles of Incorporation or charter Bylaws
Employer Identification Number (EIN)
Registration for Charitable Solicitation
Apply to IRS (Form EZ1023)
Create your Mission

10. Articles of Incorporation
Definition: a document by which a corporation is formed that sets forth basic information
Select a name for your organization.
Identify three persons from your group to be the initial trustees of your organization.
Select someone from the Steering Committee to be the registered agent (the person who will receive notices on behalf of the organization). TIP: make sure this is a person who will continue to be active with your organization after it is incorporated - potentially, your attorney if he or she is willing to serve in that capacity.
An incorporation is a legal entity formed with the state. In brief it separates an organization from the people or individual

11. Articles of Incorporation (cont.)
Select a registered place of business (usually the home address of the person who will eventually be leading the new organization or if you will have an actual office, that location)
Select the person who will prepare the document. He or she will be the incorporator
Method of distributing assets
Dissolution language

12. ByLaws
ByLaws are rules adopted and maintained by your foundation to define and direct its internal structure and management.

13. Content of ByLaws Detailed purposes Membership qualifications
Officers’ qualifications
Filling of vacancies
Voting procedures
Meeting procedures
Indemnification
Committee structure
Delegation of authority
Organizational relationships
Financial procedures
Office locations
Amendment procedures
Dissolution procedures
Legal compliance
ByLaws are a living, breathing document
Can/should be made available to anyone who asks

14. Create a Mission What is your reason for being? What is your purpose?
The mission statement communicates the nonprofit's purpose, what groups it serves, and how it plans to do so. For a new nonprofit, developing the mission statement is a critical first step in defining what the organization plans to do and what makes it different from other organizations in the same field.
Source: GrantSpace.org
What to consider when creating the foundation mission:
What is your reason for being?
What is your purpose?
And how will you achieve your purpose?
KEEP IT BRIEF!

15. Policies for Good Governance
Conflict of Interest
Gift Acceptance Policy
Document Retention Policy
Whistleblower Policy
In the coming slides we will go into more detail on these except document retention. Stating it is it a crime to alter, cover up, falsify, or destroy any document with the intent of impeding or obstructing any official proceeding. Your foundation absolutely should have a policy. But going into great detail today.

16. Conflict of Interest Policy
As defined by the National Council of Nonprofits: A conflict of interest policy should (a) require those with a conflict (or who think they may have a conflict) to disclose the conflict/potential conflict, and (b) prohibit interested board members from voting on any matter in which there is a conflict.
Minutes of board meetings should reflect when a board member discloses that s/he has a conflict of interests and how the conflict was managed.
If a board member has a conflict it does not mean they have to step off the board. It means they need to recuse themselves – leave the room during a vote pertaining to that issue and minutes should reflect.

17. Gift Acceptance Policy Why have it?
Maintain consistency and standards
Methodology for attaining volunteer approval for certain gifts or reject
Include board/staff related responsibilities:
conflict of interest, ethics, etc.
gift acceptance and recognition

18. Gift Acceptance Policy What does it include?
Who can fundraise?
Privacy
Unacceptable gifts
Acknowledgement
Recognition
Endowment level

19. Whistleblower Policy
“A whistleblower policy encourages staff and volunteers to come forward with credible information on illegal practices or violations of adopted policies of the organization, specifies that the organization will protect the individual from retaliation, and identifies those staff or board members or outside parties to whom such information can be reported.”
Source: Instructions to the Form 990

20. COMMUNICATION IN BOTH DIRECTIONS!
Collaboration
Alignment is key
The foundation should have an understanding of the district needs so they can provide maximum impact.
The foundation should act as a positive communications tool for district.
Raises money through awareness
of need for community benefit
The district should respect the mission of the foundation.
The district must respect restricted funds.
COMMUNICATION IN BOTH DIRECTIONS!
Monthly Meetings with the Superintendent
Annual Meetings with School Principals
Business Office Approval of Proposed Grants
Curriculum Supervisor Sits on MEF Grant Committee
All Grants are Approved by the BOE
Member of BOE Sits on MEF Board of Directors
Ongoing Dialogue with District Offices
Public Relations for the Morris School District
- The District – 8 Page Full Color Newsletter Highlighting District Achievements Mailed Biannually
- Full Color Graduation Ad Listing the Colleges Students are Attending Placed in Local Newspaper and Reprinted for Use by High School Guidance Office

21. Best Practices of Effective Local 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.
Supportive organization structure.
Executive director – when resources allow.
Collaboration and partnerships.

22. QUESTIONS??
Contact Information: Megan Dzwonkowski Executive Director Website: