foundation
news
Summer 2016
NCCF’s mission helps to support state’s rural challenges When NCCF founder Lewis R. Holding began to execute on his long-held vision of a community foundation, he incorporated some ideas that made his approach stand out from the norm. While most community foundations were (and are) place-based and built around a somewhat circumspect area, like a city, county or region, Holding’s dream was more expansive. He wanted to bring philanthropy to parts of North Carolina that did not have local access to building and utilizing charitable resources. So from the very beginning, the North Carolina Community Foundation has had a rural focus. As the song goes, we were “country when country wasn’t cool.” While Holding may not have used statistics and quantifiable data to define “rural” in the way it is today, (250 people or fewer per square mile) most of NCCF’s service area fits the rural profile. With 85 NC counties meeting this definition, our state is second only to Texas in its designation as the United States’ most rural population, according to the N.C. Rural Center. And one thing we’ve observed after nearly 30 years serving the philanthropic needs of North Carolina – one size definitely does not fit all. Many
L-R: NCCF team members Katie Crumpler, Dawn Neighbors, Sally Migliore and Kelly Lee (far right) join Harry Mills, Granville County Community Foundation board member at a recent Rural Voices meeting, sponsored by the NC Rural Center. rural communities are categorized as “marginalized,” and some are not. While there are certainly challenges that many rural counties have in common, there are just as many that are unique. We believe that is one reason why NCCF’s affiliate network is effective, according to NCCF CEO and President Jennifer Tolle Whiteside. “Our model is one of serving the state
through affiliates that are led by decision-makers, who are on the ground and familiar with local needs, opportunities and challenges,” she said. “This brand of philanthropy that is based on local knowledge and expertise helps us contribute to the growth and prosperity of rural communities,” she said, adding that the approach also Continued on page 4
Starting here, starting now: Planning together for your nonprofit’s success Many nonprofit organizations are utilizing the philanthropic services of the NCCF, as noted in our publication, entitled Planned Giving Perspectives, available on our website under Creating a fund/Planned giving.
Do either of these songs describe your nonprofit’s planned giving program? Another Cloudy Day or The Long and Winding Road If you answered yes, you are not alone. In a time of rising demands on nonprofits to deliver increased services, work harder and generally do more with less, the task of constructing and sustaining an effective planned giving program is easily delayed. There’s just not enough time in the day, and where would we start, anyway? Maybe we’ll think about that tomorrow… But an organization that neglects to build on the power of planned giving is simply leaving money on the table. The famed intergenerational transfer of wealth (TOW) is happening now, and planned giving is the strategy that may best position your organization to take advantage of the TOW phenomenon before it ends. So if it’s time to get serious about your planned giving strategy, a call to the NCCF may be just the jumpstart you need to begin. Here is some information you may find useful: What exactly is planned giving anyway? Planned giving is charitable giving that often involves non-cash assets, frequently provides tax benefits to the donor and requires a bit more thoughtful consideration than a simple checkbook gift. Planned giving is frequently, though not exclusively, done as part of a donor’s estate planning. What’s the endowment connection? The cornerstone of an effective planned giving program is often endowment. The presence of an endowment signals stability, maturity and a long-term outlook on the part of the organization. For this reason, the endowment offers an appealing giving option to donors who want the satisfaction of providing for the strong future of a beloved organization. Isn’t starting an endowment expensive? An organizational endowment with the NCCF may be started with a minimum gift of only $10,000. With this vehicle in place, an organization may effectively utilize the tools and resources available through the NCCF to build that endowment with the larger gifts usually accomplished through planned giving methods. Endowment and planned giving are terms that are often used interchangeably. Though they are actually different, the association does makes sense: endowments often achieve their largest growth through planned
gifts. And donors may be more comfortable making planned or “lifetime” gifts into endowments that offer sustainability, rather than one-time gifts that achieve only short-term impact.
So how do you know when your organization is ready for an endowment and planned giving program? NCCF can help you determine readiness with a few simple questions. Essentially, these questions will help to gauge the financial stability, long-term vision, community tenure and leadership strength of the organization. To be successful, the organization must demonstrate a commitment to future-focused thinking and the patience for building long-term resources. The NCCF Partnership: Why should my organization place its endowment with the NCCF? Why wouldn’t we just do this all by ourselves? Perhaps you could, but why would you? The NCCF’s expertise and economies of scale provide you all the benefits and resources you need to be successful. You are freed to focus on your core mission and services. An endowment fund at the NCCF enables your organization to build endowment without the burden and expense of developing the in-house expertise needed.
Consider the advantages and services offered by NCCF: • • • • • •
The capacity to accept larger and more complex gifts High accountability and stewardship Professional investment oversight Administration and reporting Philanthropic guidance and support Access to technical expertise
But won’t this take away from our annual giving campaign? Study after study suggests the reverse is true: if properly stewarded, donors rarely make only a single gift. In fact, those donors who are frequent givers to your annual campaign may be your best planned giving prospects as well, since they have demonstrated an interest and loyalty to your organization that may be further fulfilled by a planned gift. Continued on page 6