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A community foundation presentation to APTI October 7, 2009

© 2002 Council on Foundations and Community Foundations of America

1914 First U.S. community foundation established in Cleveland, Ohio

today Now almost 1,500 community foundations in 51 countries across the world. Leading the world growth in philanthropy

› More than €40 billion in assets

› Serving citizens across the world› More than €2 billion in local grants each year

› And growing!

2000 Community Foundation for Ireland established

foundation

facts A brief history


Professional advisors

• Setting up a fund at The Community Foundation for Ireland may be simpler and more appropriate than establishing a trust or private foundation

• CFI can provide anonymity

• Ideal for estate planning purposes as can be more strategic with one’s will

• County Funds offer a real alternative for people who want to make a difference locally and/or who would like to be seen as philanthropic innovators

• You can advise clients on major tax savings, both in Ireland and overseas

• One stop shop for your client’s charitable giving.

Why work with community foundations


What can we offer your clients?

Vehicles: endowment (permanent) and flow-through.

Tax advantage: reliefs on donations of cash or shares or CGT.

Specific services for donors partnering with CFI

Low fee structure – ideal for early stage philanthropists.

Expertise and services: Grants officer, project assessment, feedback and reports.

Help in introducing the topic and liaising with clients if requested.


› The Community Foundation for Ireland is never the object of one’s charity, it is the vehicle

› Middleman role which brings with it independence and expertise

› We want to support the key needs of the day

› 39 separate fund holders at present

› Cumulative grants of €5.5 million to date, Full details of all grants and investment performance on website – www.foundation.ie and in annual report

foundation

facts


Opportunities

Who among your clients?

Family Funds Corporate Funds Charity Funds Religious Orders

Introduction to Endowments – Eamon Heffernan, Board member



Endowment Funds

• Many similarities to traditional Pension Fund

• Permanent Independent Fund

• Assets held in trust

• Tax Exempt

• Long term focus

• Dividend/Interest Income more important in short term

• Professionally managed

A new opportunity for clients


The Community Foundation Endowment

• Established June 2001

• Permanent, independent, civic Endowment Fund

• Designed to support sustainable grant making in community

• Initially single Unit Trust but Segregated since 2004

• Managed as single Fund but each donor’s sub-fund identified

• Current (Sept ’09) Value €24.42million

• Grants only made from Fund’s investment income (other than in exceptional circumstances)

• Grants to Community Projects €5m (to date) – 455 grants totalling €984k in 2008

• Manager AIBIM following review in 2008

Connecting people who care with causes that matter


Investment Policy & Objectives

• Long Term Objectives

– To generate annual income to facilitate grant making payments

– To seek to protect real value of capital over longer term

• Investment Policy

– To delegate management to professional managers

– To build diversified asset portfolio

– Bias towards income producing assets

– To give Manager total discretion within broad guidelines and minimal constraints

– To set specific performance objectives

(All details Contained in Statement of Fund’s Investment Policy and Objectives)

We’re better together


Investment Policy & Objectives ctd

Minimum % Maximum %Cash 0% 30%Bonds 35% 65%Equities 35% 65%

Some Constraints•No property/venture capital/unlisted/hedge funds etc.•Not more than 5% in any one share•Corporate Bonds not more than 50% - confined to A- or better•No investments in specified industries (tobacco, pornography, nuclear/armaments)

Performance Objective•Annual % income not less than 75% of yield on Gov’t stocks•Underlying capital increases in line with CPI, over longer term


Performance Statistics

2005 2006 2007 2008 YTD

Income 4.5% 3.8% 4.3% 4.6% 2.0%

Capital 11.0% 2.4% (3.2%) (20.0%) 5.7%

Total 15.5% 6.2% 1.1% (15.4%) 7.7%

Avg Pension 21.0% 13.0% (3.8%) (34.8%) -

Managed Fund


Asset Distribution & Equity Exposures (including Cash Fund) 30 September 2009

Eurozone, 33.0

Ireland, 2.0

US, 26.0

Non-Euro, 5.0

Far East, 11.0

UK, 23.0

Ireland Eurozone Non-Eurozone US UK Far East

Cash 15.6%

Bonds 34.3%

Equities 50.1%


Admin & Governance

• Trustees – Board of The Community Foundation

• Operation governed by Memo & Articles of Assoc.

• Management Committee – The Community Foundation’s FAIG

• Committee meets with AIBIM on regular basis to review performance

• Fund audited as part of The Community Foundation’s audit

• Yearly Investment Report to donors (on web site)

• Investment Manager fees and charges – c. 35bps

• CFI admin fee – not more than 1%pa deducted from Fund income


Eamonn Heffernan, Board MemberNiall O’Sullivan, Head of Fund Development

32 Lower O’Connell Street, Dublin 1Tel: 01 874 7354 Fax: 01 874 7637

Email: [email protected] www.communityfoundation.ie

Charity No. CHY 13967

Connecting people who care with causes that matter

Thank you!

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