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Affiliates
What is an “affiliate”?
An affiliate community foundation provides smaller communities in central Kansas the same services of a larger, regional community foundation. The Foundation requires that each affiliate have at its center an unrestricted fund of a minimum of $30,000, in order to establish a community grantmaking program. Fundraising for the community grantmaking fund may be enhanced by the use of one or more challenge grants from individuals or companies. Also, as the affiliate grows, separate, named permanent charitable funds (endowment funds) for the town can and will be established by individuals, organizations, and companies to accomplish various charitable purposes.
Benefits to Affiliates
Communities launching an affiliate of the Greater Salina Community Foundation effectively pool resources for community betterment, benefit from experienced investment and administration services, and generate increased awareness of community needs and citizens’ philanthropy.
Pooling Resources for Community Betterment
An affiliate program is a permanent, steady, and secure source of grantmaking that addresses present and future community needs. The affiliate provides a catchment for bequests and other gifts (both large and small) that will benefit the entire community. Funds established with the affiliate are an attractive option to donors, particularly those who wish to make large gifts or leave a gift by bequest, since the donation is maintained in perpetuity and is not expended for short-term operating costs. Those who give to funds with the affiliate often become more involved and provide leadership for philanthropic organizations and endeavors. An affiliate foundation can be a powerful force in mobilizing community advocates. Growing communities are strengthened by their ability to serve citizens’ needs now and for future generations.
Benefiting from Experienced Investment and Administrative Services
The Foundation’s Investment Committee is composed of knowledgeable leaders in the fields of banking, business, finance, and investment. Managing funds is their primary responsibility on behalf of the Foundation, and the entire community benefits from their experience and expertise. The Foundation can pool endowment funds for investment purposes, thus providing the benefits of a balanced portfolio, diversification, appreciation, lower internal management costs and potentially higher returns to each fund it manages. Although the Foundation is almost always the most efficient choice among financial management alternatives, the Foundation does offer affiliates an opportunity to “keep their money at home” by having one or more of their local financial institutions manage their funds.
- A simple document can establish an affiliate endowment, eliminating the need for establishing a stand-alone nonprofit corporation.
- Quarterly accountings are provided to the affiliate. On-line access to fund statements is pending. Fund documents and policies and procedures are already created and ready for use by the affiliate.
- Grants are recommended by the affiliate’s governing board on a regular basis.
- Serving the Foundation is a professional administrative support staff committed to meeting its accounting/financial, program, and communication needs.
Generating Increased Awareness of Community Philanthropy
The affiliate shares in the public relations efforts of the Foundation and is featured in print pieces such as the Foundation’s Annual Report, and on our Web site, all of which create more awareness of the affiliate and its endowment program among the donor community. The affiliate can participate in the Foundation’s planned annual recognition event, as well as other special events and functions. Foundation staff can furnish the affiliate with publicity materials, including sample news releases, fact sheets, and other documents and communication services, on an as-needed basis.
Steps Toward Affiliation
1. Interested individuals assemble a group of community-minded citizens to act as the local Governing Board, and to be responsible for fundraising, governance, and grantmaking.
2. The local Governing Board agrees to affiliate, notifies the Greater Salina Community Foundation in writing, and signs the Affiliate Agreement Form.
3. Fundraising to collect the required pool of unrestricted funds begins, with a first round of grants planned for one year after formation (once the fund is fully funded at $30,000).
The staff of the Greater Salina Community Foundation stands ready to assist the affiliate with advice regarding fundraising, grantmaking, and publicity.
Sample Affiliate Agreement
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