Covering Rural Territory: Affiliate & Alternative Structures for RDPJanuary 22, 2002 – Washington, DC

Consolidation Model:Consolidation Model:

Greater New Orleans FoundationGreater New Orleans Foundation

Presented by:Presented by:Gregory Ben Johnson,President/CEO

Greater New Orleans Foundation

Phone: 504-598-4663

Email: benj@gnof.org

Introduction:Introduction:Greater New Orleans Foundation:Greater New Orleans Foundation:

Consolidated Service ModelConsolidated Service Model•• Single community foundation Single community foundation serving a region that includes serving a region that includes rural areas (or is totally rural) rural areas (or is totally rural)

St. JohnSt. JohnSt. JohnSt. JohnSt. JohnSt. JohnSt. JohnSt. JohnSt. Johnthe Baptistthe Baptistthe Baptistthe Baptistthe Baptistthe Baptistthe Baptistthe Baptistthe Baptist

St. JamesSt. JamesSt. JamesSt. JamesSt. JamesSt. JamesSt. JamesSt. JamesSt. James

St. CharlesSt. CharlesSt. CharlesSt. CharlesSt. CharlesSt. CharlesSt. CharlesSt. CharlesSt. Charles

St. TammanySt. TammanySt. TammanySt. TammanySt. TammanySt. TammanySt. TammanySt. TammanySt. Tammany

AssumptionAssumptionAssumptionAssumptionAssumptionAssumptionAssumptionAssumptionAssumption

WashingtonWashingtonWashingtonWashingtonWashingtonWashingtonWashingtonWashingtonWashingtonTangipahoaTangipahoaTangipahoaTangipahoaTangipahoaTangipahoaTangipahoaTangipahoaTangipahoa

PlaqueminesPlaqueminesPlaqueminesPlaqueminesPlaqueminesPlaqueminesPlaqueminesPlaqueminesPlaquemines

JeffersonJeffersonJeffersonJeffersonJeffersonJeffersonJeffersonJeffersonJefferson

OrleansOrleansOrleansOrleansOrleansOrleansOrleansOrleansOrleans

LafourcheLafourcheLafourcheLafourcheLafourcheLafourcheLafourcheLafourcheLafourche

TerrebonneTerrebonneTerrebonneTerrebonneTerrebonneTerrebonneTerrebonneTerrebonneTerrebonne

St. BernardSt. BernardSt. BernardSt. BernardSt. BernardSt. BernardSt. BernardSt. BernardSt. Bernard

DRAFTLouisiana Parishes

Created by Community Data & Info Share Center September 2001 (504) 827-6861 Source: MapInfo, Inc. , Claritas, Inc.

13 Parish GNOF Region13 Parish GNOF Region

““Schizophrenic StateSchizophrenic State””

•• opportunisticopportunistic•• relationalrelational•• flexibleflexible•• intentionalintentional

Southeast LouisianaSoutheast Louisiana

Metro New OrleansMetro New Orleans

GNOFGNOF’’ss Rural Catalyst Rural Catalyst

•• Community Foundation BoardCommunity Foundation Board•• Community Foundation Board &Community Foundation Board &

StaffStaff•• Private FoundationPrivate Foundation•• Rural DonorsRural Donors

Primary InitiatorsPrimary Initiators::

GNOFGNOF’’ss Rural Catalyst Rural Catalyst

•• Regional approachRegional approach

•• Funding additional assetFunding additional assetdevelopment capacitydevelopment capacity

BoardBoard’’s commitments commitmenttoto::

GNOFGNOF’’ss Rural Catalyst Rural Catalyst

•• Identified untapped marketIdentified untapped market•• Donor FocusDonor Focus•• Professional AdvisorsProfessional Advisors•• Financial InstitutionsFinancial Institutions

Board and StaffBoard and Staff::

GNOFGNOF’’ss Rural Catalyst Rural Catalyst19961996 Ford Foundation: Rural DevelopmentFord Foundation: Rural Development

and Community Foundations and Community Foundations InitiativeInitiative

•• Black Church CommunityBlack Church CommunityEconomic DevelopmentEconomic Development

•• Crescent City MarketCrescent City Market•• GNOFGNOF’’s structure, stance, messages structure, stance, message

GNOFGNOF’’ss Rural Catalyst Rural Catalyst

• St. Bernard Parish: Court Settlement $1 million Endowment• St. James Parish: $400,000 Educational Endowment• Norco Community Fund: $1 million Endowment• Lafourche Parish: Two $3.7 million Supporting Orgs.• J. Bennett Johnston Science Foundation: $10 million

Endowment• Regional Foundation: $13 million Endowment• St. Charles Parish: $1 million Endowment

Rural Donors 1997 - 2001Rural Donors 1997 - 2001

3 or so Things About 3 or so Things About ……The New Orleans RegionThe New Orleans Region•• Parochial AttitudesParochial Attitudes

•• Struggling EconomyStruggling Economy

•• Urban, Suburban, Rural DistrustUrban, Suburban, Rural Distrust

Key Goals or ValuesKey Goals or Values

•• PracticalityPracticality: maximize scarce resources: maximize scarce resources

•• Respect for DonorsRespect for Donors: we can respond: we can respondwithout regard to geographywithout regard to geography

•• Comfort with AmbiguityComfort with Ambiguity: maximize: maximizeflexibilityflexibility

Leading to choice of centralized structure:Leading to choice of centralized structure:

How Operation WorksHow Operation WorksDonor Advised &Donor Advised &DesignatedDesignated•• Advisors or Advisors orAdvisoryAdvisory Committee Committee Board ofBoard of

TrusteesTrusteesGNOFGNOF

Central OfficeCentral OfficeSupport OrganizationsSupport Organizations•• Board Board

Special InitiativesSpecial Initiatives•• Casey Making Casey Making Connections Connections•• Faith Based CDC Faith Based CDC Capacity CapacityBuildingBuilding

Community InterfaceCommunity Interface•• Regional RegionalLeadershipLeadership•• Top 10 By 2010 Top 10 By 2010

Governance, Representation, RolesGovernance, Representation, RolesSupportingSupporting

OrganizationsOrganizationsAdvisedAdvisedFundsFunds

Type ofType ofAdvisory BodyAdvisory Body

EndowmentEndowmentBuildingBuilding

Program/Program/GrantmakingGrantmaking

Independent BoardIndependent Board One or more advisorsOne or more advisorsor Advisory Committeeor Advisory Committee

Sets policies, awardsSets policies, awardsgrantsgrants

Sets policies,Sets policies,recommends grantsrecommends grants

Board, committee or donor raises orBoard, committee or donor raises orcontributescontributes

Governance, Representation, Governance, Representation,RolesRolesSupportingSupporting

OrganizationsOrganizationsAdvisedAdvisedFundsFunds

AuthorityAuthority

Connection toConnection toCentralCentral

StructureStructure

TotalTotalRecommendationsRecommendationsapproved unless inapproved unless in

conflict with IRSconflict with IRSrequirementsrequirements

Information exchange and influenceInformation exchange and influence

Governance, Representation, RolesGovernance, Representation, RolesSupportingSupporting

OrganizationsOrganizationsAdvisedAdvisedFundsFunds

RecruitingRecruiting,,

Orienting,Orienting,SustainingSustaining

•• Donor or donor Donor or donor representatives representatives identify committee identify committee members members•• Policies on terms Policies on terms and eligibility differ and eligibility differ

•• Establish own policies Establish own policies•• Majority GNOF Majority GNOF appointees, or appointees, or•• Majority Majority ““disinteresteddisinterested”” parties parties appointed with GNOF appointed with GNOF Board approval Board approval

Management and StaffingManagement and StaffingGNOF offersGNOF offers::

•• Infrastructure for endowmentInfrastructure for endowment•• Knowledge: consultants, experts, staffKnowledge: consultants, experts, staff•• Back office systems/administrationBack office systems/administration•• Money managementMoney management•• Due diligence for IRS issuesDue diligence for IRS issues

Management and StructureManagement and Structure

•• Local leadershipLocal leadership•• Endowment buildingEndowment building•• Grant guidelines &Grant guidelines &

recommendationsrecommendations•• Knowledge of the communityKnowledge of the community

Rural entityRural entityoffers:offers:

GNOF ResourcesGNOF Resources

•• All resources used to supportAll resources used to supportCentralized Structure as neededCentralized Structure as needed

•• Focus on the donor, not theFocus on the donor, not thegeographygeography

•• Staff resources: Program,Staff resources: Program,Development, FinanceDevelopment, Finance

•• Related administrative costsRelated administrative costs

Fee Arrangement/InvestmentFee Arrangement/InvestmentPolicyPolicy

•• Same fees for all fundsSame fees for all funds•• 1%, .75%, .6%1%, .75%, .6%•• 1%, .5% (larger funds)1%, .5% (larger funds)

•• Same investment policy for all donorSame investment policy for all donoradvised fundsadvised funds

•• Supporting organizations establishSupporting organizations establishtheir own investment policiestheir own investment policies

Cost Benefit JustificationCost Benefit Justification

•• Economies of scaleEconomies of scale•• Structure supports developmentStructure supports development

strategiesstrategies•• Professional AdvisorsProfessional Advisors•• Financial InstitutionsFinancial Institutions

•• Focus on donor pays off inFocus on donor pays off inincreased assetsincreased assets

How is it working?How is it working?

•• No existing models to copyNo existing models to copy•• Trusting process (the bet!)Trusting process (the bet!)•• Board ownership and understandingBoard ownership and understanding

Toughest ExperiencesToughest Experiences::

““Leading to a place youLeading to a place youhave never been.have never been.””

How is it working?How is it working?

•• It is working: Endowments increasingIt is working: Endowments increasing•• Meeting donors that we would have neverMeeting donors that we would have never

knownknown•• Local donors, Boards becoming Local donors, Boards becoming GNOFGNOF’’ss

advocatesadvocates•• Meeting local leaders as we support donorMeeting local leaders as we support donor

grantmakinggrantmaking•• Reduction in urban/rural barriersReduction in urban/rural barriers

Best ThingsBest Things::

How is it working?How is it working?

•• Be flexible & entrepreneurialBe flexible & entrepreneurial•• Maintain strategic focusMaintain strategic focus•• Align Board, staff, back office systemsAlign Board, staff, back office systems•• Never done - remind, reorientNever done - remind, reorient•• Challenge staff to continually increaseChallenge staff to continually increase

its competence and capacityits competence and capacity

Lessons/AdviceLessons/Advice