foundations 101: philanthropy in mississippi foundations 101: philanthropy in mississippi
TRANSCRIPT
Foundations 101: Philanthropy in Mississippi
Overview and Outcomes
Kenita WilliamsSr. Program Manager, Public Policy,
Southeastern Council of Foundations
Session AgendaWelcome and IntroductionsDefining FoundationsA Brief History of PhilanthropyPhilanthropy in MississippiPhilanthropic InfrastructurePhilanthropy in Action
Foundations 101 Participants
Meeting OutcomesBuild relationships between key public sector and
philanthropy representatives in MississippiDevelop public sector understanding of the purpose, role,
scope, scale and impact of philanthropy--nationally, regionally and in the state
Explore opportunities for leveraging public sector and philanthropy investments in common priority areas
Establish philanthropy as an influential voice on that can help inform public sector policies and investments
Develop on-going communication process for philanthropy/public sector interaction
Defining Foundations
Anne Travis, CEO The Bower Foundation
What is a Foundation?In the United States today, a foundation is…Section 501 (c) (3) tax exempt organization
…“operated exclusively for religious, charitable, scientific, testing for public safety, literacy or educational purposes…”
Typically, foundations make grants; Principal purpose is to support unrelated organizations, institutions, or individuals
Grants must serve a charitable purpose
501 (c)(3)
Non-ProfitsFoundations
Support
Common Characteristics
Nongovernmental, nonprofit organizations
Managed by their own trustees/directors
Motivated by charitable intent
Foundations are NOT“…part of the net earnings of which inures to the
benefit of any private shareholder or individual…”“…substantial part of the activities of which is carrying
on propaganda, or otherwise attempting, to influence legislation…”
“…and which does not participate in, or intervene in, any political campaign on behalf of (or in opposition to) any candidate for public office.”
Types of FoundationsPrivate: Funded by a single source
Family foundationCorporate foundationIndependent (grantmaking or operating)
Public: Funded by many sourcesCommunity foundationsFunds serving certain population groups or issues
A Private Foundation…Has a principal fund or endowmentMaintains or aids charitable, educational, religious
or other activities serving the public goodMust file a form 990-PF tax return with the IRS
annuallyMust distribute at least 5% of assets annually
A Public “Foundation”…Typically receives funding from numerous sources
and must continue to seek money from diverse sources in order to retain its public charity status
Operates grants programs benefitting unrelated organizations or individuals as one of its primary purposes
Is required to file a form 990 tax return with the IRS
A Brief History of Philanthropy
Ivye Allen, President Foundation for the Mid South
A Brief History of Organized Philanthropy
Year Action
1880-1900 Andrew Carnegie promotes “public trusts”
1910-1930 First private and community foundations
1930-1950 Corporate foundation growth
1950-1970 SECF and COF established; Tax Reform Act of 1969 creates new tax classifications and requires foundations to distribute 5% annually
1970-1990 Growth of community foundations
1990 → Tech foundations: Gates, Ebay, Google, online alternatives
Growth of U.S. Foundations
From The Foundation Center, Foundation Growth and Giving Estimates, 2011. Figures exclude foundations that reported no grant activity.
From 22,088 in 1980 to 76,545 in 2010
Foundations in AmericaNumber of Foundations1990: 32,000 foundations in the United States2010: 76,545 foundations in the United States2012: 86,192 foundations in the United States
Total Assets1990: $142.5 billion in assets2010: $588 billion in assets2012: $715 billion in assets
Total Giving1990: $8.7 billion in grants2010: $45.7 billion in grants2012: $51. 8 billion in grants
Foundations in America
Foundations: 14% of overall charitable giving (2012)$2.2 billion to Arts & Culture$4.96 billion to Education$5 billion to health
Philanthropy in Mississippi
Sammy Moon, CoordinatorMississippi Association of Grantmakers
Summary Statistics for Mississippi Foundations, 2012
Source: Foundation Center, 2014
Foundation TypeNo. of Fndns.
% Assets % Total Giving %
Independent 216 84 $820,874,654 68 $63,727,602 71
Corporate 15 6 $129,571,064 8 $6,209,334 11
Community 8 3 $154,009,396 11 $17,513,925 19
Operating 18 7 $99,982,400 13 $2,742,110 3
TOTAL 257 100 $1,204,437,514 100 $90,261,519 100
Mississippi Foundations by Range of Giving, 2012
48.05%
15.23%
23.83%
5.86%
5.86% 1.17%$1-$50,000 (123)
$50,000-$100,000 (39)
$100,000-$500,000 (61)
$500,000-$1 Million (15)
$ 1 Million-$5 Million (15)
$5 Million and over (3)
Total Giving Range
Source: Foundation Center, 2014
Distribution of Grants to Mississippi Recipients, 2012
Food Agriculture and Nutrition
Human Services
Philanthropy, Volunteerismand Grantmaking Foundations
Public Protection
Arts & Culture
Housing & Shelter
Youth Development
Health
Community Improvement
Education
0% 10% 20% 30% 40% 50% 60% 70% 80%
1.3%
1.4%
1.6%
2.8%
3.1%
3.6%
4.2%
5.5%
6.4%
68.3%
8.0%
10.2%
2.3%
4.5%
9.1%
4.5%
4.5%
6.8%
5.7%
33.0%
% Grants
% Grant Dol-lars
Note: Grants awarded to MS recipients by FC 1,000 Foundations, top 10 areas of giving. Includes giving from out-of-state foundations.Source: Foundation Center, 2014
Trends in Giving to Recipients in Mississippi 2005-2012
2005 2006 2007 2008 2009 2010 2011 2012 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$14,653,315
$11,559,326
$34,583,169
$39,260,757
$25,539,742
$16,819,293
$19,923,310
$23,926,438
Public Affairs/Society Benefit Education HealthHuman Services Arts & Culture
TO
TA
L G
RA
NT
DO
LLA
RS
Note: Grants awarded to MS recipients by FC 1,000 Foundations, top 5 areas of giving. Includes giving from out-of-state foundations. Source: Foundation Center, 2014
Year-to-Year Change in Foundation Giving 2002-2012
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-100%
-50%
0%
50%
100%
150%
Mississippi
Southeast*
US
Perc
ent c
hang
e
Source: Foundation Center, 2014*Includes data for Mississippi, Alabama, Louisiana, Tennessee, Arkansas, Virginia, North Carolina, South Carolina, Georgia, Florida, and Kentucky
Total Giving 2001 2012
MS Foundations $55,214,292 $90,261,519
Southeast Foundations
$3,890,207,216
$5,971,927,434
All U.S. Foundations
$30,508,498,382
$51,823,843,568
Philanthropic Infrastructure
Marcie Skelton, Director The Walker Foundation
Board Member, SECF
Philanthropic Infrastructure Organizations
National, regional or local organizations that seek to provide information, resources, support and strength for the philanthropic (and non profit )sector.
Philanthropic Infrastructure: PurposeStrengthen Philanthropy (the
field)Capacity BuildingAmplify EffectivenessNetwork Building
Philanthropic Infrastructure: Types
Regional AssociationsState AssociationsNational AssociationsAffinity Groups
Issue-BasedConstituency-BasedIdentity-BasedJob-Centered
Research and Data Libraries
The Landscape of National Philanthropy
State Associations
Philanthropy in Action
Sheila Grogan, Executive DirectorBlue Cross & Blue Shield of Mississippi Foundation
MS Philanthropy in ActionTargeted grants to improve the health of
Mississippians, with a focus on communities, schools, and universities and colleges. (BCBS)
Delta Workforce Funding Collaborative (FMS)Mississippi School Health (TBF)Personal Finance For Teens: From Marks to all
Mississippi (CFNM)
Next Steps & Resources
Tom Pittman, President & CEOCommunity Foundation of
Northwest Mississippi
Next Steps: Working Together to Improve Mississippi
• Including Foundations “at the Table”
• Continuing the Dialogue
• Partners in the work
ResourcesSoutheastern Council of Foundations, www.secf.orgFoundation Center, www.foundationcenter.orgMississippi Association of GrantmakersCouncil on Foundations & Affinity Groups, www.cof.orgBoardSource, www.boardsource.orgNational Center for Family Philanthropy, www.ncfp.orgGrantmakers for Effective Organizations,
www.geofunders.orgIndependent Sector, www.independentsector.org
Questions & Answers