www'nebcommfound'org

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USING CHARITABLE ASSETS TO BUILD AND SUSTAIN
RURAL COMMUNITIES Presented to the WINGS-CF
Meeting Presented by Jeff Yost, President CEO
November 15, 2006
www.nebcommfound.org
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Outline for Todays Presentation

• About the Nebraska Community Foundation
• Transfer of Wealth Opportunity
• Community Case Study
• Strategic Grant Making
• HomeTown Competitiveness
• Questions/Answers/Connecting the Dots

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The Nebraska Community Foundation Incorporated
in 1993 Statewide Board of 22/Staff of
10MissionThe Nebraska Community Foundation
exists to help concerned individuals mobilize
charitable giving in support of the betterment of
Nebraska communities and organizations.
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NCF Philosophy

• Locally-controlled/decentralized
• Do not replace local capacity all services from
  mothership must add-value
• Build community capacity through empowering local
  leadership
• Convene build partnerships
• Belief in power of Hometown

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Community Affiliates Model
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Community Affiliated Funds

• Governed by Fund Advisory Cmte. (FAC)
• FAC Responsible for
• Setting Local Priorities Agenda
• Engaging the Community
• Donor Targeting Visitation
• Grant Making

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NCF Provides

• Corporate Umbrella
• All Accounting, Legal Investment
• Comprehensive Insurance Coverage
• Website (including on-line giving)
• Education/Training
• Customized Assistance with Strategy, Fundraising
  Gift Planning

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Impact of Decentralized Approach

• Empowers Community/Builds Capacity
• 1,500 Fund Advisory Committee Members
• 26 Million in Assets
• 24 Million in Expectancies
• 27,277 Donors in Past 5 Years
• 58 Million in Total Reinvestment
• 90 Community Funds/526 Sub-accounts

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Intergenerational Transfer of WealthAn
Unprecedented Opportunity for Rural
AmericaMillionaires in the MillenniumHavens
Schervish, 1999, Boston College
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County-Based Transfer of Wealth
Peak of Transfer Group 1 2000 to 2014 Group 2
2015 to 2039 Group 3 2040 and after
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Transfer of Wealth A Unique Opportunity

• To build philanthropy and endowments
• To prove that capital is not the limiting
  resource to community development
• To build sustained community development
  strategies (by using Asset-Based Community
  Development, or ABCD)
• To break out of a cycle of dependency

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Community Case StudyValley County, Nebraska

• Population 4,647 10 loss in 1990s
• Primarily farm/ranch economy strong retail and
  service sector little manufacturing
• 50 more low-income residents than state average
  50 less upper-income residents
• 22 elders 13 over 75 (2x state average)

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Incremental Approach to Wealth Retention

• 50-year time horizon too long for planning
  period therefore, use 10-year timeframe
• Initial goal of five percent gifted
• Include both current and forthcoming gifts (on
  average, confirmed expectancies will be received
  in the next 10 years)

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VALLEY COUNTY CHARITABLE GOAL SETTING

• June 2006
• 10- Year County Wealth Transfer 119,400,000
• 5 of 10-Year Transfer 5,950,000
• Current Endowment 1,529,646
• (Wozab Trust anonymous Donor-Advised Fund
• HTC Founders Club)
• Current Expectancies (5 expectancies)
  5,250,000 _____________________________
  ___
• Total Endowment Expectancies 6,779,646
• Percent of 5 Wealth 113.94
• Transfer Achieved

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Flexibility of Endowment is Greatest Future Asset

• Valley County has not only been blessed with a
  1.2 million endowment they have been blessed
  with a flexible asset
• 337,000 reinvested in last 6 years
• This unrestricted endowment provides what
  communities need most opportunity capital for
  discretionary, prioritized investment

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Many Success Stories

• Affiliated Fund Population 30-Jun-06
  Total
• Valley County 4,647 6.8 million
• Basset/Rock County 1,756 2.6 million
• Shickley 376 1.7 million
• Nebraska City 7,228 1.4 million
• Brown County 3,525 1.4 million
• Norfolk 23,516 1.2 million
• McCook 7,994 1.0 million
• 38 community-based affiliated funds now have over
  100,000 in combined endowment and expectancies
• total includes endowed assets and expectancies

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Strategic Grant-Making

• Now that you have an endowment, what difference
  is that going to make in the future of your
  community? Will your grants
• Enhance quality-of-life?
• Enhance economic prosperity?
• Change belief in the future of your hometown?
• All of the above?

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Examples of Strategic Grants

• Non-Traditional Scholarships
• High-quality Affordable Childcare
• Microenterprise Training/Tech Asst
• Build Leadership with a Purpose
• Attract/Retain Young Adults Families
• Retain/Recruit volunteers
• Value-added curriculum for K-12 school

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HomeTown Competitiveness
Framework for Effectiveand Sustainable
RuralCommunity and EconomicDevelopment
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Strategic Partnership
Partner Communities
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HomeTown Competitiveness is Focused on Critical
Issues

• Youth Out-migration
• Business Losses
• Leadership Capacity Erosion
• Scale and Global Competitiveness
• Generational Wealth Transfer

Succeeding with Change
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Putting All the Pieces Together
Youth
Leadership
Entrepreneurship
Charitable Assets
Policy
HomeTown Competitiveness
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HomeTown Competitiveness (HTC) helps Communities
to

• Start and Grow Small Businesses
• Provide Better Employment Opportunities
• Provide a Better Case to Donors
• Provide a Better Reason for Young People to Live
  and Work in their Hometown

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HomeTown Competitiveness (HTC) has become a
National Model

• 2004 Innovative Program Award from the
  International Community Development Society
• 2 Million Entrepreneurship Development Systems
  Grant from the W.K. Kellogg Foundation (one of
  six awards)

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Community Case StudyValley County, Nebraska
Bottom Line Results

• Staff of three ongoing business
  training/visitation
• Youth entrepreneurship fair
• 87 graduates of county-wide leadership class
• 67 1,000 founders of HTC endowment
• Retail sales 20 (statewide 16)
• Per capita income 22 (statewide 9)
• Population gain of 3 (55 new households)

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NCF System Helps Communities To Build a New and
Better Set of Habits

• More and more frequent community reinvestment
  (private and charitable)
• Education/Training/Technical Assistance to
  Empower Community Leaders
• More Donor Engagement by Friends and Family
• Renewed Hope in the Future of Our Hometowns

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Summary

• To succeed with building philanthropy in rural
  communities, we must
• Empower local leaders
• Build a wide base of donors
• Provide a better case to donors
• Focus on economic prosperity quality-of-life
  improvements

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For more information on the Nebraska Community
Foundation or HomeTown Competitiveness

• www.nebcommfound.org
• or
• www.htcnebraska.org