Inspiring Future Leaders

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Inspiring Future Leaders

• Leadership Akron
• September 5, 2008

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• Burton D. Morgan had a vision to nurture the
  entrepreneurial spirit and to perpetuate free
  enterprise in America.
• Mr. Morgan received his B.S.M.E. from Purdue
  University in 1938.

BURTON D. MORGAN JULY 27, 1916 - MARCH 6, 2003
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• THE FOUNDATIONS MISSION
• To strengthen the free enterprise system by
  investing in organizations and institutions that
  foster the entrepreneurial spirit.

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The Burton D. Morgan Foundation

• Foundation established in 1967
• Current assets total 150,000,000
• Annual distribution requirement 7,500,000
• 70 million grants given since 1967
• Seven member Board of Trustees
• Ten member staff
• Moved to new Hudson office in 2006

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PROGRAM AND GEOGRAPHICAREAS OF INTEREST

• The Foundation is interested in projects that
  fall into three life phases
• Youth Entrepreneurship
• Collegiate Entrepreneurship
• Adult Entrepreneurship
• Primary Geographic Area of Interest
• Northeast Ohio
• Hudson, Ohio

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Youth Entrepreneurship

• Junior Achievement of Akron Area, Inc., Akron,
  Ohio
• To support free enterprise experiential learning
  opportunities for Summit County elementary school
  students.
• E City, Cleveland, Ohio
• To support E CITY (Entrepreneurship
  Connecting, Inspiring and Teaching Youth), a
  nonprofit organization to teach entrepreneurship
  to low-income young people.
• Camp Invention/Club Invention, Akron, Ohio
• To support Camp Invention in Akron and Wooster
  plus after-school Club Invention programs in
  Akron and Wooster

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Collegiate Entrepreneurship

• NOCHE Entrepreneurship Internship Database
• Walsh University
• Ashland University
• Kenyon College
• Denison University
• Entrepreneurship Education Consortium

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Morgan-Kauffman NEOCEPLiberal Arts
Entrepreneurship

• To support Northeast Ohio liberal arts colleges
  in instilling the entrepreneurial mindset in
  students and faculty from all areas of study and
  to disseminate the knowledge gained among
  colleges and universities across the country.

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NEOCEPFive Institutions Selected

• College Grant
• Oberlin College 1.1 million
• Hiram College 1.0 million
• Baldwin-Wallace College 1.6 million
• Lake Erie College 1.3 million
• The College of Wooster 1.6 million
• Total 6.6 million

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Adult Entrepreneurship

• Akron Community Foundation, Akron, Ohio
• Fund for Our Economic Future
• Jumpstart, Inc., Cleveland, Ohio
• Assistance and acceleration for new, potentially
  high growth, ventures
• BioEnterprise Corporation, Cleveland, Ohio
• BioEnterprises business development program
  identifies, evaluates, and accelerates promising
  bioscience businesses in Northeast Ohio
• NorTech, Cleveland, Ohio
• NorTechs overarching objective is to make
  Northeast Ohio the best place in the U.S. to
  start and grow a technology business.

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Entrepreneurship Can Breed Philanthropy

• Microsoft Gates Foundation
• The Timken Company Timken Foundation
• Filmco The Burton D. Morgan Foundation
• - The Margaret C. Morgan
  Foundation

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The Burton D. Morgan Foundation History of
Support for the Philanthropy Project

• Year Amount Awarded
• 1996-99 44,000
• 2000 10,000
• 2001 10,000
• 2002 10,000
• 2003 10,000
• 2004 10,000
• 2005 10,000
• 2006 10,000
• 2007 10,000
• 2008 10,000
• Total 134,000
• 
  GAR Foundation provided matching funds

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Goals of Philanthropy Project

• To provide experiences to enhance understanding
  of philanthropys role in all segments of the
  community
• To provide experiences in community needs
  assessment, evaluating funding proposals, and
  philanthropic decision-making

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Prior Philanthropy Project Focus Areas

• At-risk children in the community
• Imagine Akron2025
• Educational projects with a social service
  function

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The Burton D. Morgan Foundation Philanthropic
Focus

• Builds on connection between entrepreneurship and
  philanthropy
• Hudson Montessori School
• Supports practice of philanthropy in Ohio
• OGF
• Hudson Community Foundation
• Foundation Center
• Teaches others about the philanthropic process

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The Burton D. Morgan Foundation Hands-on
Philanthropy Experiences

• Habits of the Heart - The Laurel Lake Retirement
  Community Foundation with Seton Catholic School
• Leadership Akron Philanthropy Project
• Hudson Montessori School Micro Economy
• Hudson Community First Intern for a Day
• Seton Catholic School 8th Grade Mock Proposal
  Review

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Benefits of Hands-on Philanthropy

• Understanding of non-profit operations
• Deliberation about competing needs
• Site visits
• Research on larger community context
• Inspiration for personal giving and volunteerism

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Top Ten Foundations by Assets in Northeast Ohio
2006

• Assets (m) Giving (m)
• 1. The Cleveland Foundation 1.89b
  72.15
• 2. The George Gund Foundation 527.68
  21.37
• 3. Jewish Community Federation of
  Cleveland 434.40 73.43
• 4. Jack Lilyan Mandel Foundation (2005
  data) 280.24 8.59
• 5. Timken Foundation of Canton 227.42
  9.72
• 6. Saint Lukes Foundation of Cleveland,
  Ohio 224.14 9.51
• 7. GAR Foundation 179.62 8.19
• 8. The Kelvin Eleanor Smith Foundation 167.42
  7.96
• 9. Stark Community Foundation 165.25
  5.89
• 10. The A.M. McGregor Home 145.57 4.24
• Source Ohio Grantmakers Forum 2007 Report

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Ohios Top Ten Independent Foundations by
AssetsThe term independent is often used
interchangeably with private foundation and
includes family foundations.

• The George Gund Foundation 527.68 million
• Mathile Family Foundation 318.77
• Osteopathic Heritage Foundations 300.54
• Jack N. Lilyan Mandel Foundation 280.24
• The Carol Ann Ralph Haile, Jr. Foundation
  260.00
• Timken Foundation of Canton 227.42
• Saint Lukes Foundation of Cleveland
  224.14
• GAR Foundation 179.62
• John J. Mary R. Schiff Foundation 169.11
• The Kelvin Eleanor Smith Foundation 167.42

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Charitable Giving in Ohio
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U.S. 2007 Charitable Giving Total 306.39
billion
Corporations15.695.1
Foundations38.52 12.6
Individuals229.03 74.8
Bequests23.15 7.6
Source Giving USA Foundation / Giving USA, 2008
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Types of recipients of contributions, 2007 Total
306.39 billion ( in billions)
InternationalAffairs 13.22 4.3
Environmentand Animals6.96 2.3
Foundations27.73 9.1
Arts, Culture, Humanities13.67 4.5
Unallocatedgiving 23.67 7.7
Public-Society Benefit22.657.4
Religion 102.32 33.4
Health 23.157.6
HumanServices 29.64 9.7
Education43.32 14.1

• Source Giving USA FoundationTM Giving
  USA 2008

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Types of recipients of contributions, 2007

• Religion remains the largest single recipient.
• Just over 1/3rd of the total.
• After religion, next highest categories are
• Education (14.1 percent)
• Human services (9.7 percent) and
• Foundations (9.1 percent).
• Gifts to foundations have been a growing segment
  of charitable giving.
• They are 9.1 percent of the total for 2007.
• Estimates grounded in data submitted by
  organizations to national agencies.
• Revisions made when new data are released.

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Sources of Contributions - 2007

• Total giving 306.39 billion.
• Increase of 3.9 percent (1.0 percent adjusted for
  inflation).
• Individuals remain the single most important
  source.
• Individuals charitable bequests 82.3 percent
  of total.
• Foundation grantmaking 12.5 percent of the
  total.
• Highest percentage ever attributable to
  foundations.
• Corporate giving is an estimated 5.1 percent of
  the total.
• Consistent with the trend of the past decade.
• Source Giving USA FoundationTM / Giving USA 2008

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Giving by Foundations, 19672007
in billions
Data The Foundation Center
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Giving by Foundations, 19672007

• The Foundation Center estimated 38.52 billion in
  giving by foundations in 2006.
• Increased 10.3 percent (7.3 percent adjusted for
  inflation).
• Grantmaking by independent, community, and
  operating foundations. Does not include corporate
  foundations.
• Real rate of growth (after adjusting for
  inflation)
• Less than 1 percent per year from 19671990 and
• 9.5 percent per year from 1991 to 2005.
• Recent growth in grantmaking reflects
• Growth in the number of foundations and
• Growth in assets. Asset growth reflects new gifts
  received and investment earnings.

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Ten Pointers for Good Grantmaking

• Grantmaking involves making tough choices
• Accountability is the key
• Sometimes you have to say no to good projects
• Are any key elements missing?
• Be a judge of character
• Leadership is a critical factor
• Dont believe everything you are told
• Different ways of interpreting the same facts
• Assess the situation with a site visit
• Trust your intuition

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Ten Pointers Continued

• 6. Conduct outside research
• How does this project fit in is there a true
  need?
• 7. Stick to your mission
• Make sure organization sticks to its mission
• 8. Read and interpret the financial data provided
• Understand the core of the organization
• 9. Figure out the evaluation process
• Follow up is an important part of accountability
• 10. Learn how to say NO
• Funds are always limited

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Contact Information

• Deborah D. Hoover, President
• The Burton D. Morgan Foundation
• 22 Aurora Street
• Hudson, OH 44236
• Phone [phone]
• Fax [phone]
• dhoover_at_bdmorganfdn.org