Philanthropy 831 Blog

A Year of Expanding Philanthropy, Community Impact

Fri, 12 Oct 2018 21:09:49 GMT

Greetings!

It’s been nearly a year since I became CEO of the Community Foundation – how time flies! Since the transition, we’ve ushered in exciting new possibilities and made some remarkable impact. As your community’s foundation, we shared those moments with many of you. Here are a few recent highlights that demonstrate our shared commitment to Santa Cruz County – now and in the future:

By the end of 2017, active stewardship of our more than 350 funds grew our assets to $131 million. As you can see from the financial statement included in our recent impact report, a combination of the strong market performance and your generosity led to record asset levels. Our 2017 investment returns on donor funds were more than 13% for our long term pool and more than 15% for our socially responsible pool. 2017 marked another year of clean audits and strong financial reporting. Click here to view more on our current investment performance.

This year, we experienced grantmaking growth due to the generosity of the Borina family. The Borina Foundation endowment came to the Community Foundation in 2013. The community eagerly anticipated this new funding, but it took until 2017 for there to be sufficient accumulated earnings to begin grantmaking. With the market’s strong recovery and the maturation of the funds, we are thrilled to have over $500,000 to grant for youth and education and an additional $500,000 to grant in the combined areas of end of life care, historic preservation and seniors. Those issue areas were important to the Borina family. In the coming year we will be telling you more about the impact of their incredible legacy. To be sure, their gift is already very much alive: 51% of our spring 2018 grants were made up of funding from the Borina Foundation endowment. Their dedication to Pajaro Valley and beyond can be seen each day in services for youth, seniors, those at the end of their lives and, also in projects, like the Castro Adobe that preserve the unique history of Santa Cruz County.

In 2018, donor advised grantmaking has soared. Local nonprofits are benefitting from our donors’ generosity in record numbers: By July of this year, donors had already recommended 26% more grants than the year before. Thank you for your forward thinking and active giving!

We have launched our new Community Investment Revolving Fund (CIRF) with an initial gift from an anonymous donor of $1.5 million. The concept is simple: this fund will accept lower than market financial returns in exchange for positive social returns for our community. This fund will continually recycle loans into the community as earlier loans are repaid. As we enter the fall, our impact investments and loans from the CIRF total over $2.5 million in new working capital in the community.

We welcomed our first Gender Screened Donor Advised Fund. Launched by a new anonymous donor with a $1 million gift, the Women’s Inclusion Fund is one family’s donor advised fund with a unique values-based investment approach. It is invested in U.S. equities that have been screened for participation by women on boards and in senior management. Earnings will be granted to programs that support girls’ educational attainment locally. The Women’s Inclusion Fund also marks our first donor advised fund managed by an outside investment manager, a new opportunity for funds established with gifts of $1 million or more.

Speaking of girls, we welcomed our first group of girls into our Girls in Pajaro Valley initiative, a project made possible by donors to our Fund for Women and Girls. The group of over 30 6th-graders started at Lakeview Middle School with the support they’ll need to be successful in middle school, high school, college and beyond. A big thanks to our partners who have formed relationships with the students this past school year to support early academic gains. We will keep you posted as we learn what works (and what doesn’t) in this initiative. This is a pilot project meant to build understanding about what is most effective in helping girls be successful.

We support the financial wellness of over 40 local nonprofits by managing their agency funds at the Foundation. We have had an increase of over $640,000 and know that these strategic reserve and campaign funds represent important indicators of resilience for the future of these organizations. Nonprofit fund holders like Jacob’s Heart, Santa Cruz County Animal Shelter, and Pajaro Valley Youth Soccer Club love the financial oversight and convenience the Community Foundation provides so that they can stay mission focused.

Local tech startups are turning to us to help them integrate social good into their organizational values early on. Thank you to the two founders of a local company who made the first gifts to our Tech Shares initiative. When the company is sold or goes public, proceeds from the sale of the donated shares will be used to establish a donor advised fund. We are delighted to offer entrepreneurs an innovative way to build philanthropy into the foundation of their enterprises.

2017 saw big changes in tax law. Despite warnings in the press about the negative impact on charitable giving, the Tax Cuts and Jobs Act of 2017 provides even greater benefits for charitable deductions for people who itemize their tax deductions. In 2018, we will help our donors take maximum advantage of the law and keep funds right here in our community through “bundling of donations,” potential in the new Opportunity Zones and providing ongoing communication about the impact to local nonprofits.

It’s hard to select just one moment that captures the wind in our sails for the work ahead of us. But one thing is clear, not one of these moments would happen without the generous people who make Santa Cruz County a great place to call home.

With gratitude,

Susan True, CEO

Read more about the ways the ways our donors and nonprofit partners are making a positive impact on Santa Cruz County.

Investment Options Continue to Grow

Fri, 24 Aug 2018 18:50:02 GMT

At the Community Foundation, we grow with you and your philanthropy.

Regardless of what issue moves you to take action, we can help you transform your philanthropic dream into a meaningful reality that evolves with your needs. When you entrust your charitable dollars to us we help you meet your giving goals through sound financial principles and careful stewardship. Along with our standard investment choices there’s new options available to meet our donors’ objectives.

NOW OPEN TO SELECT OUTSIDE FUND MANAGERS

We know that professional advisors spend years getting to know clients and their financial goals, and work hard to help clients reach their highest aspirations. Did you know that for funds established with $1 million or more, donors may now recommend their trusted investment advisor to manage their fund within the Foundation?

TEAMING UP FOR GREATER GIVING

Our Finance Committee and staff qualifies recommended advisors after reviewing the advisor’s credentials and proposal for investment policy, asset allocation, investment selection and fees. Our policy lets advisors retain client relationships and develop portfolios more closely tailored to their clients’ investment preferences. Long-standing advisor-client relationships combine with our personalized donor services. The result? Growing assets available for philanthropy and donors equipped to fulfill their charitable visions.

VALUES-BASED INVESTING

While investment strategies that diverge from the Foundation’s are subject to approval by our Finance Committee, we welcome custom approaches. One donor hopes to show that gender equity pays off, with the investment returns to prove it. Their outside fund manager selected a portfolio of domestic stocks, screened through a gender lens, including only companies with strong representation of women in governance and senior management. The family named the advised fund the Women’s Inclusion Fund and hopes to yield a triple payoff of advancements in workplace equity, financial performance and grantmaking to nonprofits supporting women and girls.

IMPACT INVESTMENTS

Our Community Investment Revolving Fund (CIRF) provides another opportunity to achieve both financial and social gain. With a gift of $25,000 or more to the CIRF, donors can put their capital to work for local social good, like housing affordability, sustainable agriculture and economic mobility for our county’s diverse workforce. The CIRF fund makes cost-effective, flexible loans, or impact investments, to local projects needing access to capital to solve local problems. The fund recently received its initial gift from a donor, and new investments will be made as the fund grows.If you are looking for a ready facilitator for your philanthropic vision, you certainly have one in Community Foundation Santa Cruz County.

To learn more about our tailored and flexible donor services, please contact Philanthropic Services Director Sam Leask at 831.662.2060 or sleask@cfscc.org.

Our Appreciation for the Arts Runs Deep

Fri, 27 Jul 2018 14:59:12 GMT

What would Santa Cruz County be without its arts scene? It is impossible to imagine life here without the diverse cultural and artistic offerings our community provides. Arts, culture, and creative expression are so core to who we are. The arts educate and delight us. They celebrate our rich history and diversity. They bring us together to foster dialogue and shape responses to issues we face.

Diverse Offerings Inspire

In recent months I’ve been moved by the latest from Maestro Daniel Stewart’s refined Santa Cruz County Symphony and the 60^th Anniversary performances. I’ve enjoyed the finest gypsy jazz with a full house at the Kuumbwa. What a thrill it was to march in the high energy jazz procession to an innovative outdoor exhibit as part of Arts Council’s amazing Ebb & Flow River Arts Festival.

Cabrillo Fest Season Kickoff

One of the highlights of the summer arts calendar is Cabrillo Festival of Contemporary Music. I hope you can join me at the preseason Donors Concert this Saturday, July 28 and Opening Night on August 3^rd. We’re taking the entire Foundation staff to open rehearsal to see firsthand how composer, conductor, and orchestra fine tune their craft and create dynamic works of art as a team. August 9^th the doors to the Civic Auditorium will get thrown open for Community Night, with a pay-what-you-can model and an accessible set of special new music.

Summer Season in Swing

But the swarm of summer arts happenings doesn’t stop there! In August, we’re looking forward to Pajaro Valley Arts’ Movable Murals project, showcasing four large-scale public paintings in Watsonville. Santa Cruz Shakespeare’s season is in full swing. You can join me at the August 30^th production of Venus in Fur; it promises to be another captivating performance in the Grove. In celebration of Pajaro Valley Pride, Watsonville Film Festival is screening the academy award winning film Una Mujer Fantastica with an audience dialogue to follow. I’ll be eager to take in the latest immersive installation at the Museum of Art & History that engages audiences on indigenous folklore and our relationship with nature and technology.

Investing in a Vibrant Community

Over decades, local artists, advocates, and community donors have endowed this county with a wealth of artistic and cultural assets. Today, we get to enjoy the richness they offer, but we must continue to invest in the vitality of the arts scene. It’s a critical driver of our local economy. It offers families a chance to see, hear, learn, and create together. This summer, and every season, I hope you’ll join me in supporting the arts institutions that make up a fundamental part of our healthy community.

How Do You Define Organizational Culture?

Fri, 27 Jul 2018 14:44:40 GMT

At Community Foundation Santa Cruz County, we define organizational culture as the set of values and beliefs that guide our actions and behavior. We acknowledge that every company and every nonprofit have components of culture that hold the organization back and components that move the organization forward. We think of these components as headwinds and tailwinds. As a new CEO, I am fortunate to have had time with many of you blog readers and other community members during my first nine (!!) months serving the Foundation. Your candor, your optimism and your belief in the importance of the Foundation have given me insight into how our culture can serve as a headwind and the ways that our culture has been a welcome wind in our community’s sails.

Our staff and Board want you to have an outstanding experience with your community’s Foundation and so we take the question of values seriously. What organizational values will drive our work? Following months of discussion in the community and in our office, our Board recently adopted the following values:

We unite people through generosity and are passionate about helping Santa Cruz County residents to accomplish great things and to help our community thrive. There are three values-driven actions we prize most highly in our collective effort to create a future that we can be proud of:

We work towards Solutions: We accelerate solutions to community issues and support programs that enrich the lives of county residents.

We build Trust: We earn trust through integrity, accountability, discretion, transparency, prudence, and extraordinary service.

We advance Opportunity: We leverage our resources toward a future that is just, equitable and inclusive of our diverse community.

We also set a course to make changes in our practices to reflect these values and create stronger partnerships. The Board also adopted the following principles for our grant making to guide the work ahead of us:

To be an effective partner in creating solutions, we commit to the following principles as a grantmaker:

Fund for Impact: Fund organizations that measure progress against impactful and defined goals.
Fund Sufficiently: Leverage and consolidate funds, and co-invest over multiple years for long-term success.
Fund for Organizational Effectiveness: Support requests that move organizations forward with their operating goals.
Be a Partner: Create open, collaborative relationships and respond to requests without excessive requirements or bureaucracy.
Reward Success: Fund Trusted Performers who continually show measurable impact in the community.
Support Innovation: Welcome Creative Solvers who have new approaches to existing issues.
Demonstrate Flexibility: Adjust to changing conditions and respond to disasters with support for Rapid Responders.

I welcome hearing from you. Do these values and grantmaking principles increase the wind in our sails to help the community thrive? Your ongoing feedback will help continually guide our culture and ensure that we have what we need to unite people through generosity and help accomplish great things for our county.

The Light in Their Eyes

Fri, 13 Apr 2018 19:55:39 GMT

Imagine the good fortune I feel every day when I see passion, ambition and dedication light up the eyes of our neighbors as they describe how they plan to make Santa Cruz County a better place. So much joy!

Here at the Community Foundation, people bring us their dreams. Indeed, I feel we are collecting dreams each and every day and helping launch them into reality. I’ve been here almost six months and I continue to take daily delight in these dreams. They are just too exciting to not share a few with you!

The first fund agreement I had the pleasure to sign was an endowed fund for the animal shelter. Read more about the light in Joanie DeNeffe’s eyes when she made a gift for the future of the shelter. She joins Melanie Sobel, Shelter General Manager and Pam Lowry in their dream to grow the education, sheltering and support services for our community’s animals. These women are intrepid animal welfare experts – ensuring our community is a place where humans and their animals thrive.

Have you had the enjoyment I have of walking the San Lorenzo River with Greg Pepping of Coastal Watershed Council? You can’t miss the fire in Greg’s eyes when he describes his dream for the last three miles of the River: a place where we all want to play, walk, meet neighbors, dine, bike, enjoy art and delight in the restored habitat. Greg started out laser-focused on water quality but quickly learned that without economic and building development, public safety, fun programs and a friendly atmosphere, the quality of the river water would never improve. So, Greg embarked on a journey to bring together everyone who lives, works and plays at the San Lorenzo to make Santa Cruz a place with a river that brings us closer. Greg helped me earn my watershed ranger badge and soon we’ll meet with other environmental leaders to plan future work between the Foundation and those that care deeply about our county’s very special natural places.

Ian Macgruder, a Santa Cruz County schools grad and son of a teacher, lights up when he dreams of educators buying homes in the communities they serve. He joined the team at Landed to do just that. Our recent investment in Landed is part of our commitment to find affordable housing solutions for our county’s workforce. Hear Christina Canavan, the first teacher to benefit from the Santa Cruz County program, talk about how it helped unlock the dream of homeownership for her family. This program is so popular, that we opened a new fund, the Community Investment Revolving Fund, to give donors an easy way to contribute to this dream and get capital working on behalf of people in the county. Stay tuned for even more dreams realized through impact investments that inject capital into community solutions.

Erica Padilla Chavez has a light in her eye! Did you know that she is leading Pajaro Valley Prevention and Student Assistance (PVPSA) to new heights? Her team is just $500,000 away from raising their $3.2 million capital campaign goal. Erica lights up when she describes the double win of expanded mental health support for children, youth and their families and how a new building for these services will revitalize an important corner of downtown Watsonville. We are honored that PVPSA recently opened an agency fund at the Foundation and we will invest those funds to support the capital campaign. We love that when agencies invest funds here – our strong returns help build the strength of their nonprofit and enrich our community.

I want everyone to share in my good fortune of seeing the light in the eyes of our neighbors. Some of us are donors, some of us are do-ers, many of us are a little (or a lot!) of both. Whatever it is that puts that light in your eye, tell people about it. That fiery light is what has made us such a special place and will only make us stronger.

Susan True is the CEO of Community Foundation Santa Cruz County. Contact her
at STrue@cfscc.org.

A Year-End Message of Thanks and Gratitude!

Thu, 21 Dec 2017 22:58:04 GMT

The tradition among my family and friends is to share our gratitude through simple statements of thanks and a squeeze of our hands. Young and old begin our meals with, “I squeeze because…”

These squeezes reveal the stories of simple moments and big milestones. My nephew teaches me about his day, “I squeeze because I got to swim with my Dad.” My son reveals his love of tradition, “I squeeze because we are all here together.” My teacher friend celebrates, “I squeeze because my toughest student – ever - invited me to her college graduation.” My friend recovering from serious illness says, “I squeeze because my heart is beating.”

Indeed, over the years, I have squeezed for everything from the sunset, to laughter with friends, to the gathering of family and for the intimate moments of adoption, of lives we celebrate, of births, marriages and new beginnings. As each year draws to a close, it is a special time to gather, to celebrate and to share stories about the moments that make up our lives. It’s a special time for strengthening bonds with those I love through simple expressions of gratitude.

This year, I’m especially grateful to have been brought into a much larger family, one that includes all of you. Santa Cruz County is a community made up of the people who have dreamed of a better future for the generations that will follow us. As I settle into my new role as CEO, I am touched by the generosity shown through your willingness to share your vision for the future and to give me honest feedback about our collective efforts to date.

What strikes me most in my conversations these past few months is how much each of you deeply care about this place we call home. Santa Cruz County is a special place. And like all special places, we have some of the same complex challenges facing all communities: education, housing, employment, the changing environment and building a more equitable economy. At the same time, we’re blessed to have extremely innovative and committed people, businesses and organizations, ready to share their ideas and expertise. For that, we can all be thankful.

In keeping with my family tradition of expressing gratitude, here are some moments I am grateful for:

The incredible opportunity to lead the Community Foundation into its future;
Our shared history of solving problems through generosity of spirit, time, wealth and service;
The people who have cared deeply about our community and have moved us forward on key issues; and
Your optimism, your urgency, your insistence that we can do better.

On behalf of the board and staff of the Community Foundation, I want you to know that each one of you is a part of our family. I look forward to what we will accomplish together in 2018 and beyond.

Susan True is the CEO of Community Foundation Santa Cruz County. You can contact her at STrue@cfscc.org.

We Don't Charge to Charge Your Electric Vehicle!

Thu, 13 Apr 2017 17:40:30 GMT

I’m delighted to share with you that we've installed a new, two outlet, charging station for your electric vehicles!

No cards! Free! And, easy to use!

The new charger replaces the one we've had in our parking lot since 2011.

It's pictured below (with Officer Manager Jennifer Boyle). Already in use, it was put in free of charge by our friends at Triad Electric.

Part of the planning for us to get LEED Gold for our green building was getting a grant to install a ChargePoint station.

It worked fine for a few years, but recently started giving us problems and finally conked out.

We had no plans to end service, especially given the regular volume of users: 431 in 2016, or an average of 36 users per month (as shown in the graph above).

We searched for alternatives and found our new model. So, if you have an electric vehicle and need a charge, check us out.

You'll find us listed with directions on PlugShare.

It's part of our commitment to living and working green!

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

A Nonprofit Works to Preserve Our Elkhorn Slough for Future Generations

Thu, 23 Feb 2017 22:17:18 GMT

I visited the Elkhorn Slough between recent downpours to see my old friend Mark Silberstein, executive director of the Elkhorn Slough Foundation, a nonprofit land trust established to conserve and restore the slough and its watersheds.

Since the road to the visitor center was washed out, we took a back path to view Sand Hill Farm, a key parcel purchased by the Foundation in 2016. It connects the Elkhorn Slough National Estuarine Research Reserve with a three-mile stretch of protected land in the Elkhorn Highlands.

Mark explained that the terrain ultimately became unsuitable for growing strawberries and yielded little to the owner. It was also dumping lots of silt and other matter into Elkhorn Slough.

After acquiring the farmland, the Foundation worked with Pajaro Valley Laser Leveling, one of the many Peixoto family companies, to grade it. They also had to remove tons of old plastic and other debris used in the strawberry operation.

Now that the Sand Hill Farm has been saved, the Foundation will continue to raise funds to restore the land. It also wants to make it available for a future organic farming operation, one that supports local agriculture and provides needed capital for the Foundation's restoration and educational programs.

On top of getting to see and learn first hand about this innovative restoration project, Mark (pictured above right) and I had a great time marveling at the beauty of the Elkhorn Slough and the Monterey Bay, an area we're lucky to call our home.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Time to Reaffirm Our Values

Wed, 01 Feb 2017 19:35:16 GMT

not just politics but values

As I begin my last year as CEO I feel a strange tug from within as I take time to reflect on the past and our future.

In many ways, things could not be better for our community foundation.

Our assets approach $111 million and our final 2016 grants to nonprofits should be close to $7 million.

Our board is deep in leadership experience and community knowledge. Our staff is experienced, energetic, and dedicated.

But still, I’m troubled for the future.

I’m troubled by the uncertainty that is coming from signals sent by the new administration in Washington DC.

Change and uncertainty often go hand in hand. Regardless of how one voted in the presidential election getting something different was inevitable.

"This country cannot afford to be materially rich and spiritually poor."

-Abraham Lincoln

Those within our nonprofit sector are the same as other people around the country. And, what I'm hearing and seeing from many is anger, concern, nervousness and a feeling their work is going to get much harder.

Harder, because the new administration's statements and early executive orders are being viewed as more than simple changes in political philosophy. They're seen as real threats to the values of our social sector.

Similarly, because our community foundation’s work is driven by the shared values of those that established and support this organization, we have to listen and be ready to respond.

A community foundation is built for permanence and meant to weather changes, whether in the financial markets, the White House, or our own communities. We gain strength and an understanding of how best to respond by returning to our mission and core values.

The grants we make are one of the most direct ways we express our values and how many of you know us best. In deciding each year what to fund we need to tie aspirations, commitment and community needs to those values.

To that end I know that:

We will continue to envision a dynamic region that can flourish with vital and inclusive communities, with strong and effective nonprofit organizations and with local people responding and giving to community needs.

We will continue to strive to work to strengthen the ability of local nonprofits to be effective in delivering their services, whether its arts performances or senior meals.
We will continue to foster greater levels of understanding and cooperation among Santa Cruz County’s diverse cultural, ethnic and socioeconomic groups.
We will continue to look for innovative ways to connect businesses, government and the social sector for the benefit of all county residents.

There is no reason now to stray from these values. And, for whatever lies ahead, can we help everyone and fund everything? Of course not.

But, we can honor the legacy of our donors, working hard to ensure that all county residents benefit from your community foundation and its values.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Are We Ready to Greet the Community Foundation's Next Leader?

Mon, 21 Nov 2016 21:54:24 GMT

Let's get ready to meet our next CEO!

The Community Foundation has announced my retirement at the end of 2017, after I shared my desire to step down. Board President Terry Medina has written a blog post about the leadership transition ahead.

It's time.

When I turn in my keys, it will be 22+ years, more than a third of my life, that I will have spent at the helm of this dynamic philanthropic organization.

I’ve always felt there are inherent dangers when one individual, and his or her personality, becomes so entwined with their organization that one cannot easily separate the two. That happens most often with founder-led organizations (thus the term "founder's syndrome"), as well as those with long-standing executives.

I don't want that for our community foundation. I don't want that for you.

Our board and staff are strong. The organizations is in a healthy and stable position. We've grown much in the last two decades and built the kind of community capital that makes us ready to look to the future, with a new leader.

What I'm most proud of

The creation of the Diversity Partnership Fund, and now the Fund for Women and Girls, represent the kinds of community assets we're building that will be able to respond to specific needs in our county, forever.
The work we've done growing our donor-advised funds has allowed us to distribute significantly more money into the community than what is generated from our endowments. We had two donor-advised funds when I came here. We now manage 75 such funds.
The formation of the Regional Water Management Foundation illustrates how our structure can be flexible in addressing local water management needs and our board's ability to be innovative in the name of social good.
And, of course, building and opening the Jack and Peggy Baskin Center for Philanthropy, in 2010, where more than 9,000 people have come, met and used our space and services.

Help in the transition

Through our succession planning the board knows the benefits of having a long runway for my departure and the expected arrival of our next CEO.

I've assured the board that I'll be on hand to help with a smooth transition of leadership.

A lot depends on where the next CEO comes from and what skills and local knowledge they bring with them. I'll be available to introduce them to people and acclimate them to the nuances of our county and the world of community foundations.

What's next for me?

Besides getting a chance to enjoy my subscription to the Sunday New York Times, I have many projects that involve my family and personal passions I want to dive into after I leave.

Some of you know my long history of archiving recorded music of the world, collecting rocks and other round objects, including bottle caps, along with my love of baseball, especially the S.F. Giants.

I expect there will be travel, with my wife Laura Sutherland. Our son Walker recently married and our daughter Madeleine will soon. That will certainly change the family dynamics . . . in a good way!

There are many trails I want to hike, books to read, music to hear and films to see.

To paraphrase the late great Dan Hicks, How can you miss me if I don’t go away?

But, that won’t happen for a while. Plus, there are a number of exciting Community Foundation projects that I’ll have my hands on before my successor begins.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

“We Know What We Are, But Know Not What We May Be.”

Mon, 25 Jul 2016 21:34:35 GMT

Donor Intent is Paramount

The roll up your sleeves work that goes into setting up an endowed permanent fund (or in this case moving one here) often takes place off stage, behind the scenes and below the radar of most folks.

The particulars of the endowment's charitable use (the how, where and when), may change over time.

If it does, to ensure the donor's intent in making the gift are honored, the legal transfer of the fund's stewardship from one philanthropic institution to another can be the right course of action.

Then, what most of us naturally want to know and see is not a recounting of the labor over the fine print details, but the resulting benefits.

Local Benefits Delivered

This past month, literally before the curtain rose on a once and future stage, a local nonprofit theater company was the beneficiary of just such an effort.

If you haven’t already guessed, I’m referring to the reborn Santa Cruz Shakespeare.

The theater’s founding artistic director, Audrey Stanley and Karen Sinshiemer (founding board member, art curator and wife of UC Santa Cruz Chancellor Emeritus Robert Sinshiemer), established the Sinshiemer Stanley Glen Endowment for Shakespeare Santa Cruz at the UC Santa Cruz Foundation, in 1988.

In 2013, after 32 years, Shakespeare Santa Cruz, as part of the university, was no more. Distributions from the endowment, administered by the university's foundation, had no place to go.

Recently, the reconstituted Santa Cruz Shakespeare asked us to work with the university's foundation to explore a transfer of the endowment to our community foundation to continue its support of public performances at its new festival home in the now named Audrey Stanley Grove at Delaveaga Park.

Meetings took place with Audrey Stanley, now 88, with Santa Cruz Shakespeare, the university foundation and attorneys.

On July 15, an agreement was reached! It transfers the funds here to establish the Sinsheimer-Stanley Grove Endowment Fund at the Community Foundation, a resource for Santa Cruz Shakespeare in its fundraising strategy.

Audrey Stanley was thrilled. She know her gift will continue to support the local Shakespearean theater company she loved, whether performances take place in the glen at UC Santa Cruz or in Delaveaga Park.

Stewardship and Flexibility

This story illustrates the expertise, trust and flexibility community foundations bring to the table in making something good happen.

Without wading too deep into the fine print, if this endowment had been set up originally at the Community Foundation it would not have faced the problem it did because of our board's variance power, or cy pres, a provision included in every fund agreement.

The variance power ensures fidelity to donor intent, while allowing for adjustments resulting from circumstantial changes over time, such as what unfolded here.

Perpetuity, as one of our board members once said, is a long time. And, while we may know now what may be (to poorly paraphrase the Bard), we do know stuff happens.

By having the variance power as part of every fund agreement we have a valuable tool in keeping our promise to donors when they create an endowment as part of their legacy. In this way, we all win.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Listening To Our Community of Humanity

Sat, 09 Jul 2016 05:48:01 GMT

Our thoughts and prayers go out to the families and loved ones of those killed or wounded in the shootings in Dallas, Minneapolis and Baton Rouge.

It’s with incredible sadness that we watch events unfold in the wake of these tragic events.

The level of anger, frustration, protest and outrage from these and other recent acts of violence are understandable—even justified—especially given how much energy has gone into working to make our global and local world safe, fair and equitable for all.

It would be easy to shout that nothing has changed, will never get better, that it's an "us" versus "them" battle. We have to be stronger than that.

Devastating to hear about the murder of Dallas police. Philanthropy can help de-escalate and create a bridge between police and community.
— Emmett Carson (@emmettcarson) July 8, 2016

There are no excuses for the injustices and wrongs done. But the best role for us in philanthropy right now might be to take a step back, to listen and learn, considering how we might best act, as my colleague and friend Emmett Carson tweeted, as bridges to something better.

Important #quote these days... pic.twitter.com/460RVajgSb
— The Quote Today (@TheQuoteToday) July 8, 2016

Philanthropy Can Be a Bridge for Change

On National Public Radio, I heard an interview with Noble Wray, ex-police chief of Madison, Wisconsin, now with the Department of Justice. It's worth listening to here.

In addressing the increasingly tense relationships with law enforcement I reflect on my own experiences in Santa Cruz County, which I know is different from those of many in other parts of the country.

Here at home, I've met and worked with law enforcement leaders who are deeply engaged in many aspects of local life. People who serve and protect the interests of not just the "law enforcement community," but the larger one Noble Wray speaks of, our community.

I'm thinking of people like former Sheriff Mark Tracy (who volunteered on our diversity committee) and ex-police chief of Watsonville Terry Medina (now our board chair). Both I know as honest and compassionate men, committed to breaking down barriers of prejudice, fear and misunderstanding.

What's Next?

As people in this world, we have our differences. Who doesn't hold and wrestle somewhere in their being biases and prejudices that hinder or block our willingness and ability to get along?

Reflecting on the events of the past few days, I know we still have much hard work to do. Yet, I remain optimistic.

I believe we can find a way through these difficult times.

I am committed, as is our community foundation, to seeking common ground where we can nurture the inherent good that lives in our shared humanity. We have to keep trying.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Keep Calm and Mind the Gap

Wed, 29 Jun 2016 23:20:40 GMT

The world took a gasp last week when a majority of voters in the United Kingdom's Brexit referendum screamed, "leave!"

The pollsters, never worried, wrongly predicted the "remain" vote would carry the day.

Was this an example of leaders and pundits out of touch with the common voter? Or, a lack of recognition about the depth of anger felt by many older, working middle class people in Britain, tired of living with decisions made by others, who swayed the vote on election day?

It doesn’t take much to see parallels in our own country, especially as we watch this year's presidential election play out.

What does Brexit have to do with local philanthropy?

The Brexit vote reminds us that today’s societal problems are more complicated (and expensive) than can be solved by any one entity.

It will take more than government, the private sector, nonprofits or philanthropy alone to move the needle on issues like housing, healthcare, education, employment and immigration.

It will take us all working together and doing a better job creating results on these and other big issues. Norwegian Prime Minister Erna Solberg said as much in a NPR interview about the European Union.

Like the EU, it may not work all the time for everyone's individual interests. But, when an issue arises, you already have a place to turn to and a working relationship with fellow decision-makers, where good things can happen.

Community foundations have a unique and timely role to play

Community foundations are well-positioned today to be glocal leaders (using the term I first heard from my colleague Emmett Carson), knowing our donors and nonprofits are influenced by events beyond our geographic borders.

One responsibility in the glocal paradigm is to resist the temptation to run and hide, believing what happens in other parts of the world have no consequences here at home.

It also means a willingness to exert local leadership. First, by understanding and factoring in the needs and interests of those we are entrusted to benefit, the people of Santa Cruz County. And then, working with others, determining how and when best to respond—or not.

In the case of Brexit, we talked with our board and investment team at UBS Wealth Management to address the anxiety being felt from the resulting drop in the financial markets. We wanted to gauge what it might mean for the funds you've entrusted to us.

The message we got, echoed in a blog post by Vikki Spruill, CEO of of the Council on Foundations, was remain calm. We came to understand the markets were reacting both to Brexit and a correction from the run up of the past month.

We have confidence in our investment strategies and know from experience a diversified portfolio will weather the storm. This is proving to be the case today as the markets continued to move back into positive territory, recovering lost ground.

As to the part about local leadership, it's important and valuable to confer round the table with our peers.

But, when it's time for action we need to make sure we've really kept an open, receptive ear to what's happening outside. And, if required, be willing and ready to stand up for for the greater good, even if unpopular with some. If not, we may find ourselves (maybe like Britain) tripping into the gap, unprepared to deal with the consequences.

As an old guy once sang, “You don’t need a weatherman to know which way the wind blows.”

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Is Impact Investing the Right Path for Your Community Foundation?

Fri, 25 Mar 2016 16:51:59 GMT

I was asked by my colleague Heidi McPherson (pictured below right), CEO of the Community Foundation San Luis Obispo, to meet with her board and investment committee last week to share what we’ve learned about impact, or mission-based, investing.

Impact investing is about those investments made with the purpose of generating both a measurable social or environmental impact and a financial return.

There are tremendous resources available, like publications from the Democracy Collaborative, to help those of you wanting to know more about impact investing. However, the heart and soul of the decision is one that will ultimately come down to thoughtful discussion and debate among your leadership.

Delving into impact investing is a different approach than traditional foundation philanthropy. The model for old school philanthropy is based on an annual payout of 5% of available funds for grants, with 95% held for investment. Looking at that l formula today begs the question, is there a different way to utilize part of the remaining 95%?

We believe that in some cases the answer is yes, tapping into strategies like impact investing.

Today's Challenges Require Innovation, New Partnerships and New Models

Like other community foundations, we pride ourselves on having a varied tool chest to meet local charitable needs and interests.

Yet, we began to ask ourselves if there were other strategies available to us that could contribute to the social good and at the same attract greater community support?

Guided by the work of other community foundations, our board started exploring impact investing in 2008.

In 2014, we stuck our toes in the water with the first of two grants to the Opportunity Fund, for microloans to be made in Santa Cruz County.

In 2015, we followed these grants with our first impact investment loan for $350,000, to the Opportunity Fund for additional microloans in the county.

Our grants and loan to the Opportunity Fund stretch the boundaries of traditional philanthropy. While the Fund is a registered tax-exempt nonprofit, many of its loan recipients are not. With our help, the Fund has made microloans to help small landscaping and plumbing services, a bridal gown shop and a coffee house. Enterprises that never would have received direct or indirect support from us in the past.

We see these microloans as valuable tools for us in contributing to the economic vitality of our county, by providing needed capital, along with education and business training for success through an experienced intermediary partner.

This Is Just the Beginning

There are legal and financial guides readily available in mapping out the steps required for carrying out impact investing. But before tackling those steps, it still comes down to deciding what role you want your community foundation to play in the community.

There are wonderful stories from all over the country of community foundations, large and small, urban and rural, that have successfully deployed and put into play all their community capital to work for social good.

The Whatcom Community Foundation, in Bellingham, Washington, demonstrated how it could happen at a small organization, with limited resources. With help from outside grants and support from donors and community partners they helped develop a farm-to-school program, which supported local food purchasing at 15 schools, a farming cooperative, a workplace-community agriculture program and a farm incubator fund, along with loans to area nonprofits.

Another examples is the Incourage Community Foundation, in Wisconsin, whose board decided in 2014 to move toward investing 100% of assets in mission-based investments, such as the ones they’ve done to promote local businesses and community leadership.

A telling point with Heidi’s board in San Luis Obispo, and with our board as well, was the illustration below from the F.B. Heron Foundation.

The diagram generated the same aha reaction across the room as when our board first saw it. It demonstrates that the riskiest, below market investment a foundation can make is a grant!

So, if we accept grantmaking as an investment strategy in promoting social good, why not keep an open mind about other tools and strategies like impact investing and what might follow next?

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

More Uncharted Paths to Explore in the Galaxy of Philanthropy

Tue, 12 Jan 2016 17:28:36 GMT

I've been thinking a lot about the Chan Zuckerberg Initiative and the couple's pledge of $45 billion for social good through the creation of a Limited Liability Corporation.

My good friend Lucy Bernholz in a post on her Philanthropy 2173 Blog puts it into perspective that the announcement from the co-founder of Facebook and his wife "doesn't constitute a gift or a charitable donation."

It does, however, signal as Lucy regularly points out, there's a world of options out there for us to explore in achieving our charitable goals. And, this young, wealthy and innovative couple has clearly found a path that lets them pursue many of their interests through a single vehicle, as shown by Lucy's illustration from Blueprint 2011.

The move by Mark Zuckerberg and Dr. Chan has "triggered quite the firestorm of controversy."

Beyond the structural and tax issues I hear the argument (like those leveled at Bill Gates, Warren Buffet or the Rockefellers) that giving so much influence to individuals because they have the dough is fundamentally and morally wrong.

Maybe I’m not as thoughtful or cynical or worried as some.

I like the chances that young, inspired, innovated and smart folks like Zuckerberg and Dr. Chan can make good things happen by disrupting some of our traditional ways of approaching social change.

For now, we have no idea when they will use their money, much less on what. And, that's okay with me.

Now it's our turn to set the stage and lead by example for those that may follow their lead. I welcome more folks with the vision and the means to get involved jumping in.

Some of us in philanthropy, and especially at community foundations, are already exploring or putting into play innovative ways of giving, like impact investing, B Corps, LLCs and new approaches to planned giving that provide you with options that may better fit your charitable needs.

To borrow from Captain Kirk, this may not be final frontier in philanthropy, but it certainly feels like we're exploring new worlds and going where few have gone before . . . So, let's go boldly.

If we can’t celebrate innovation that creates social change and leads us to new worlds, systems and ways of thinking then we shouldn’t be in this business at all.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Donor-Advised Funds Connect Donors and Nonprofits

Wed, 18 Nov 2015 23:32:50 GMT

[This blog post by our CEO Lance Linares first appeared in Grantspace, Grantcraft and Philanthropy News Digest. Thanks to the Foundation Center for the invitation to write and share it. An edited version is shared here with you.]

A blog post I wrote about our board’s recent policy decision on dealing with inactive donor-advised funds generated interest and questions:

What prompted us to act?
Are other community foundations taking similar steps?
What does the growth of donor-advised funds mean for local grantmaking?

What prompted us to act?

Our board’s action to address the few (about 5 percent, or fewer than five) inactive donor-advised funds out of the 80 we steward was done to align all the funds here with our business goal of helping people and businesses invest in our community.

The policy was crafted with sensitivity for our donor advisors and their heirs, real people we know and respect.

After four years of inactivity by a donor advisor, following a process to contact and work with them — some of whom live out of state or out of the country — we can exercise our variance power and direct the funds toward the closest charitable purpose we have to the donor’s original intent.

Are other community foundations taking similar steps?

Yes. Community foundations across the country are implementing such policies, not because they are compelled to act by increased scrutiny or regulation, but because they, and almost universally their donors, are genuinely committed to increasing grant dollars and affecting change in their communities.

In crafting our policy, we looked to our colleagues and the Council on Foundations for guidance and best practices.

What does the growth of donor-advised funds mean for local grantmaking?

While we’re aware of the significance of publicizing our board’s recent action in light of the flack about donor-advised funds, a more productive discussion would ask: How much good is being accomplished by having donor-advised funds as a charitable giving tool at community foundations?

Donors benefit from our personalized service, local knowledge and freedom from the administration and tax reporting required if they chose to establish a private foundation instead of a donor-advised fund.

Local nonprofits gain from our ability to generate greater giving by educating and connecting donors to projects and groups they may not have otherwise known about.

Maybe the most fitting example of a donor-advised fund in action is the story of Bernice Caminata, our oldest donor advisor, who passed away this year at 101 years of age. She established a donor-advised fund here in 2009, to celebrate her 96th birthday. In those six years, Bernice advised grants from her fund totaling $81,000 to 25 nonprofits, many of those she learned about from us.

By having a donor-advised fund, Bernice gained the flexibility to respond quickly with contributions for immediate local needs, like a case of vandalism that prompted her to give to Community Bridges, a local human service organizations. Some of our donor advisors gave to Grey Bears after they suffered a fire. And. others contributed to relief efforts following natural disasters like the earthquakes in Nepal or hurricanes in the U.S.

So, when I hear criticisms that donor-advised funds are “non-transparent tax shelters,” or that they are stashing contributions that should be going out now to charitable organizations, I think of Bernice and others like her.

If we can lift the conversation beyond the debate on percentages and payouts, we can start talking about the ways we can work together in our communities for a greater good, one that we all share in shaping.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

How We're Putting All Our Donor-Advised Funds to Work

Thu, 01 Oct 2015 17:12:11 GMT

We're in the Business of Making Grants

Our board of directors took a step to underscore the added value of a community foundation in managing a valuable tool for American philanthropy, donor-advised funds.

This comes in light of all the hubbub and misinformation being circulated about donor-advised funds being mere piggy-banks for the hoarding of contributions intended for charitable purposes.

We're Here to Help Nonprofits and The People They Serve

In September, our board adopted a policy to address the few (about 5% or less than five) inactive donor-advised funds we steward.

We recognize that some of our donors do not advise grants like clockwork and prefer to adhere to their own personal schedules.

However, if there's been no grantmaking activity from their donor-advised fund for two full years, we'll contact them to get a sense of their situation and offer additional help, research or advice on making grants.

Some of our donors live out of the area and even out of the country. So, under the new policy, if we get no response or no grants are made after three years, they'll get a registered letter advising them of our policy and possible actions to follow.

After the fourth year of inactivity, we’ll exercise our variance power and direct the funds toward the closest charitable purpose to the donor’s original stated intent.

A Community Foundation is Different

In general, a community foundation charges higher fees for managing donor-advised funds than the commercial gift funds.

But donors are paying for much more than check writing and accounting services.

We work together to tackle human needs and the fees we charge help us cover donor education workshops and professional resources to make your giving personal and meaningful.

In 2004, we gave out $13.4 million—a record high—with a majority of the grants coming from donor funds.

I cannot predict we’ll match or exceed that total again this year. But with help from our donor-advised funds, you bet we’ve got a shot.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Our Future California Economy Hinges on Fixing Math Misplacement

Fri, 28 Aug 2015 04:00:00 GMT

We sent a letter today to Governor Brown asking him to sign California Senate Bill 359 when it comes to his desk.

The California Mathematics Placement Act of 2015, authored by Senator Holly J. Mitchell, addresses a practice called "math misplacement."

It happens when 9th grade students are held back to repeat their 8th grade math courses despite getting passing marks or completing testing that should move them forward.

SB 359 would require local school districts to develop their own mathematics placement policies that consider multiple objective measures for entrance into ninth grade math.

I salute our colleagues at Silicon Valley Community Foundation for bringing this travesty to light, commissioning the research that gathered data to back it up and for sponsoring the bill.

We're rallying together with them and a number of other California community foundations, educational advocacy groups, business leaders and media groups in supporting SB 359.

The goal of our combined efforts is to get in place policies that are objective and transparent, ones that ensure successful students are not held back unnecessarily.

SB 359 could have a profound effect on the economic future of California, as it addresses a documented practice that is unfair and wrong.

Research shows that Black, Latino and Pacific Islander students are disproportionately affected through math misplacement.

What happens is they get bumped off their college trajectory. As a result, these students cannot demonstrate adequate proficiency in advanced mathematics to be considered competitive for a four-year college or university. After college, jobs requiring good math skills that otherwise might be available to them are not.

As I tell folks about math misplacement, it’s been revealing to me how many people have personal experiences to share.

The longer math misplacement continue to exclude any of our children from getting on the path to college and a good job everyone suffers.

Beyond the issues equity and fairness, it puts our communities at risk by creating unfair barriers to success for many in our multicultural state, where technology and information are part of our economic and civic life.

SB 359 is progressing through the legislature. We hope it will reach the Governor’s desk for his signature soon. I’ve alerted our elected state officials of our support.

I invite you to sign the online petition and make your voices heard.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Shout-Out to Grey Bears a Bee Hive of Community Activity!

Thu, 20 Aug 2015 04:00:00 GMT

A bee hive.

That’s the image I got when I swung by Grey Bears, one of our treasured local nonprofits to drop off my old printer.

It was no coincidence that our staff was also there, with some of board members and donors. It was scheduled as part of the occasional tours we make with our board and donors to learn first-hand about the good work of local programs.

Executive Director Tim Brattan was sharing with his morning visitors stories about the Grey Bear's composting, the various recycling programs, the Brown Bag food for seniors and other programs they run since being founded by two UC Santa Cruz students in 1973.

To fully appreciate what they do poke your head into the packing shed where dozens of volunteers put donated food into boxes and bags to be distributed (again by volunteers) to folks in need.

The place hums with work and chatter—two ingredients that make for a healthy social scene.

And while there's certainly lots of grey hair among the friendly bears, it’s not unusual to see people of all ages putting a shoulder to the wheel.

If you're new to town, recently retired or want to just meet people and make a difference, I can’t think of a better place to land.

2014 Fire Destroys Buildings Not Dreams

The board, staff and volunteers are determined to turn the disaster of the fire into an opportunity. Plans are drawn up to replace and expand.

I’m confident that many donors, new and old, will rise to the challenge.

In the overused world of win-win, I’m hard pressed to think of a better example of how I envision this playing out.

Just like bees, it’s more than making honey. It’s about using the old, new and recycled to build a stronger community.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.

Find Your Reason to Tweet!

Tue, 16 Jun 2015 04:00:00 GMT

A recent Charity Digital News post, written for leaders in the U.K.'s social sector, could just as easily be meant for us leading U.S. foundations.

The Foundation Center through its Glasspockets surveyed 1,153 of our country’s largest foundations and less than half (45%) report using social media.

While I’m pleased to learn that 88% of the 522 foundations counted said to be using social media were my fellow community foundations, my guess it’s usually not the CEO that’s online.

I know this because when I’m with colleagues and talk about my recently acquired enthusiasm for tweeting and blogging, I generally get these kinds of responses.

Social media is the work of our communications staff.

I don’t see the value.

Isn’t social media all about celebrities and fluff? What has it got to do with us?

You can’t control it.

You Can't Control Anything Why Start with Social Media?

Sure, we hear and read about the good, the bad and the ugly uses of social media. But, is that any reason to throw out the digital baby with the social media bath water?

Are we blaming the tool for how people are using social media instead of learning what it can do to help us?

Or, is it that many of us older Baby Boomers CEOs who grew up without computers still find the idea of technology a bit confusing, somewhat foreign or even unnecessary?

Help me. I’m trying to figure this out.

There's Value in Being Honest, Professional and Real

When my 99 3/4 year old mom Ethel wants an ice cream cone, she gets an ice cream cone. And it better be chocolate! pic.twitter.com/d9tgem3M42
— Lance Linares (@LanceLinares) April 6, 2015

It's natural to want to show ourselves and our foundations in the best possible light. but people know when we're faking it.

As my communications team reminds me, we want to think of social media more like a game of tennis not golf. And even the best in tennis commit a few unforced errors now and again. That's okay.

Digital isn't optional & it isn't "other" http://t.co/9W8ofDExR1 @p2173 @COF_ @Philanthropy @KellyKborn @PackardFdn @Hewlett_Found
— Lance Linares (@LanceLinares) March 3, 2015

I know I'll make a mistakes as I learn to use Twitter. No matter, I see it as a great way to connect and engage with others foundation leaders and you on a larger stage, one that I never would have the time or resources to do otherwise. The benefits far outweigh the occasional gaffes.

So if you want to start tweeting without guilt, here's a few simple steps that work for me.

Read, listen and follow tips like using lists (like one I just started of the few community foundation CEOs I found on Twitter) that I hope will help me stay connected and engage with them.
Take the top three items of interest that come across your radar today and tweet about one of them.
Discipline yourself to be consistent. A few minutes every day brings positive returns. Plus, its fun and can’t our jobs can’t have some fun in them, too?
Include images and people who may have opinions about the topic and include them in your tweet, like I did by mentioning my friend, Lucy Bernholz.

Our board treasurer on Can Business Profitability and Social Responsibility Coexist? http://t.co/uhOmjCznfo - @p2173 pic.twitter.com/3NHHHMJCYb
— Lance Linares (@LanceLinares) May 14, 2015

Kudos to @elkhornslough nonprofit Elkhorn Slough Foundation for Governor's Environmental & Economic Leadership Award http://t.co/B9kgQcGDGo
— Lance Linares (@LanceLinares) January 23, 2015

Even a simple shout-out to your local food bank or arts council acknowledging their latest accomplishment can strengthen your foundation’s brand and show you are a real person at a local organization, interested and engaged in the community your serve.

Lance Linares is CEO of Community Foundation Santa Cruz County. You can subscribe to Lance's blog posts and follow him on Twitter.