THE KRESGE FOUNDATION Information Workshop

1
THE KRESGE FOUNDATIONInformation Workshop

• Host Murdock Trust
• Oregon Zoo
• Portland, OR
• Friday, December 10, 2004

2
Workshop Outline

• History Background of The Kresge Foundation
• Overview of Grantmaking Programs
• Bricks Mortar Challenge Program details
• Application Process

3
The Kresge Foundation History Background

• Founded 1924 by Sebastian Kresge, entrepreneur
  who established Kresge Dept. stores (became
  Kmart)
• Foundation not part of Kmart
• One of the 1st generation of philanthropic
  institutions to promote the well-being of
  mankind

4
Kresge Foundation Today

• Current assets of 2.6B
• In 2003 awarded 142 grants, totaling 108M
• Average grant award 636k, median grant 450k
• Typical grant range -- 250k-750k

5
Grantmaking Programs

• Special Initiatives
• Partnership to Raise Community Capital
• HBCU
• Detroit Initiative
• Special Opportunities Initiative
• Green Building Initiative
• Science Initiative
• Bricks Mortar Challenge Grant Program

6
Green Building Initiative

• Educational Publications Workshops
• Planning Grants
• Bonus Grants

7
Science Initiative

• Challenge grant to upgrade and endow scientific
  instrumentation and laboratories in colleges,
  universities, teaching hospitals, medical schools
  and research institutions

8
A SUCCESSFUL CAMPAIGN

• A successful campaign leaves in its wake a
  stronger board and staff, and a giving
  constituency that is boarder and deeper.
• Both will be useful to the organization when it
  faces the inevitable challenges and opportunities
  that occur when not in a capital campaign.

9
Bricks Mortar Challenge Program

• Goal is to build organizational capacity through
  challenge grants for capital projects.

10
Bricks Mortar Challenge Program

• NOT A MATCH!
• The challenge is to raise the balance remaining
  in the campaign less KF grant award amount from
  private sources
• Goal is to build organizational capacity,
• Private Fund Raising
• Volunteer commitment
• Expanded Programming
• Staff Development
• Enhanced facilities

11
Bricks Mortar Challenge Program

• Conditions for grant payment
• The challenge goal must be met with new private
  gifts (balance remaining in campaign less KF
  grant award amount)
• The project is under contract and within
  available resources.

12
Bricks Mortar Challenge Program

• Eligible Projects
• New construction
• Renovation
• Purchase of property/real estate
• Purchase of major equipment or integrated system

13
Bricks Mortar Challenge Program
Eligible Organizations

• Environmental groups
• Human Service
• Culture Arts organizations
• Public affairs organizations
• Government entities

• Universities
• Hospitals
• Long term care facilities
• Health clinics
• Scientific research organizations

14
Bricks Mortar Challenge Program

• Ineligible Organizations
• Elementary and secondary schools
• Community colleges
• Churches

15
Bricks Mortar Challenge Program

• Eligibility Special Cases
• Elementary Secondary schools may be eligible if
  their primary mission is to serve individuals
  with disabilities
• Religious organizations may qualify if serve
  secular needs, have financial governing
  autonomy.

16
Organizational Readiness

• Stable budget (no accumulated deficits, good cash
  flow, strong balance sheet)
• Increasing/stable demand for services
• Effective board leadership (are they committed to
  campaign?)
• At least 2 years of operations

17
Project Readiness

• Project scope well-defined
• Regulatory approvals secured or imminent
• Costs firm (based on advanced architectural
  design)
• Long term financing in place

18
Fund raising Readiness

• Board committed
• Leadership gifts committed
• Campaign strategy in place
• Volunteers recruited, organized
• and involved

19
Applying for a Challenge Grant

• Organizational Fact Sheet
• Track record Start up organizations or
  organizations with less than 2 yrs may not be
  competitive
• Accreditation hospitals, higher ed (e.g. JCAHO,
  NEASC, etc.)

20
Applying for a Challenge Grant

• Organizational Fact Sheet
• Financial data plan for operations and
  maintenance explain deficits
• Profile of persons served Diversity should
  reflect those served (board staff).
• Service data Explain fluctuations

21
Applying for a Challenge Grant

• Project Campaign Fact Sheet Project
  Information
• May be single or multiple capital projects
• Grant may be applied to construction, renovation,
  property purchase, or equipment
• Grant may be used to challenge these and other
  non-capital objectives e.g. annual support,
  endowment, etc.

22
Applying for a Challenge Grant

• Project Campaign Fact Sheet
• Funds Available
• List gifts paid or pledged in writing
• Govt, loans/bonds should be secured or
  backstopped
• Bequests should be paid or in probate
• Deferred gifts should be formal, irrevocable

23
Applying for Challenge Grant

• Project Campaign Fact Sheet
• Grant Request
• KF grant request should be 1/5 to 1/3 of the
  balance to be raised at time of KF decision
• Challenge period of at least 6 and not more than
  18 months from KF decision

24
Applying for Challenge Grant

• Gift Charts
• Provide key information about organizations
• Campaign goals
• Status of efforts
• Blueprint for completing campaign

25
(No Transcript)
26
Application Timing

• Kresge Trustees meet 4 times per year to make
  grant decisions March, June, September
  December
• Applications should be submitted about 4 months
  prior to meeting dates
• Predict progress during review
• How Kresge challenge will be used to leverage new
  private gifts and grants
• Appointments or conference calls may be scheduled
  before applying

27
Application Process

• General Question call
• Appointment/Conference call
• Submission of proposal
• Program Officer review
• Internal Board and Staff review
• Board decision

28
Competitive Features

• Effective planning
• Board and lead gifts committed
• Strong gifts profile number diversity
• Timing fits KF

• Good institutional program record
• Good diversity
• Campaign outcome broadened deepened donor base

29
Uncompetitive Features

• Long term financing and/or government funding not
  secured.
• Fund-raising extends beyond completion of
  project.
• Disproportionate request or KF would be largest
  private gift.
• Deficits, declining use figures, lack of or poor
  accreditation.

30
A SUCCESSFUL CAMPAIGN

• A successful campaign leaves in its wake a
  stronger board and staff, and a giving
  constituency that is boarder and deeper.
• Both will be useful to the organization when it
  faces the inevitable challenges and opportunities
  that occur when not in a capital campaign.

31
The Kresge Foundation

• Temporary Mailing Address
• 2701 Troy Center Drive
• Suite 150
• Troy, MI 48084
• 248-643-9630 (phone)
• 248-643-0588 (fax)
• www.kresge.org