Presented%20by%20Maxine%20Moul - PowerPoint PPT Presentation

Title: Presented%20by%20Maxine%20Moul


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Using Philanthropy to Build Rural Communities
by Supporting Entrepreneurship An Example from
Nebraska
Presented by Maxine Moul to the Iowa
Philanthropy Academy February 4,
2008 www.nebcommfound.org
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Outline for Todays Presentation

1. About Nebraska
2. Transfer of Wealth Opportunity
3. About the Nebraska Community Foundation
4. Community-Based Endowment Building
5. Endowment for What?
6. HomeTown Competitiveness (HTC)
7. Public Policy to Help Community Building

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About Nebraska

• Nebraskas strengths
• Civic capacity and pride
• Educational system
• Work ethic
• Nebraskas struggles
• Out-migration of middle-class youth
• Lack of diversity in rural economy
• Large geography/many frontier counties
• (418 of 532 (80) of communities lt 1,000 pop.)

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Special Challenge

• Engaging rural leaders in defining new
  opportunities for their communities to build a
  positive future and stem the tide of out-migration

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Intergenerational Transfer of WealthAn
Unprecedented Opportunity for Nebraska

• Millionaires in the MillenniumHavens
  Schervish, 1999, Boston CollegeWealth in
  NebraskaDon Macke, 2002, Nebraska Community
  Foundation

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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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Transfer of Wealth Studies
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The Nebraska Community Foundation Incorporated
in 1993 Statewide Board of 18/Staff of 11 199
Affiliated Funds (98 Community, 58
Organizations, 29 Donor-Advised, 14 Gift
Annuities)MissionThe 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
• Reciprocity
• Build community capacity through empowering local
  leadership
• Convene build partnerships
• Build endowments to support core mission
• Belief in power of Hometown

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Affiliated Fund Responsibilities

• Governed by Local Fund Advisory Cmte. (FAC)
• FAC Responsible for
• Setting Local Priorities Agenda
• Endowment Building
• Engaging the Community
• Building/Expanding Relationships with Donors and
  Financial Planners
• Donor Targeting Visitation
• Grant Making

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Community Affiliates Model
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NCF Provides

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

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Community Nonprofit Fundraising

• Whats been successful?
• Events
• Annual Operating Campaigns
• Capital Campaigns
• Whats been lacking?
• Endowments
• Endowments for community economic development

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NCF Partners with Communities and Nonprofits to
Build Endowments

• Board Engagement
• Goal Setting Campaign Development
• Build Skills Confidence to Engage Donors
• Communications Marketing
• Gift Planning
• Financial Investment Management

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2007 Rural Philanthropy Conference

• Goal To teach rural community foundations
  about the transfer of wealth and how they can
  adopt strategies to move their own rural
  community development initiatives forward using
  the transfer of wealth as a case statement.
• Speakers from Nebraska, South Dakota and
  Wisconsin
• Keynote address by Dr. Rick Foster of the W.K.
  Kellogg Foundation
• Attended by 93 individuals from 13 states and the
  District of Columbia. (Idaho, Indiana, Kansas,
  Michigan, Minnesota, Missouri, Nebraska, New
  York, Ohio, Pennsylvania, South Dakota, Texas and
  Wisconsin)

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Impact of Decentralized NCF System

• Empowers Community/Builds Capacity
• 2,000 Fund Advisory Committee Members
• 34 Million in Assets (35 year-over-year growth)
• 23 Million Endowed (39 year-over-year growth)
• 28 Million in Expectancies (124 confirmed gifts)
• 29,608 Donors in Past 5 Years
• 65 Million in Total Reinvestment

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Community Endowments

• Affiliated Fund Population 30-Jun-07
  Total
• Ord/Valley County 4,647 6.9 million
• Bassett/Rock County 1,756 2.6 million
• McCook 7,994 2.3 million
• Shickley 376 1.8 million
• Nebraska City 7,228 1.6 million
• Brown County 3,525 1.3 million
• Spencer 541 1.2 million
• 45 community-based affiliated funds now have over
  100,000 in combined endowment, expectancies and
  pledges
• total includes endowed assets, expectancies and
  pledges

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Community-Based Endowment Building
Efforts Endowed assets plus expectancies (in
millions)
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Endowment for What? Strategic Grant Making

• Now that you have an endowment, what difference
  is that going to make in the future of your
  hometown?
• These new assets must be invested in ways to
  build a better future for your hometown!

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HomeTown Competitiveness
Framework for Effectiveand Sustainable
RuralCommunity and EconomicDevelopment
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Four Pillars to Build Community
Leadership
Youth
Charitable Assets
Entrepreneurship
HomeTown Competitiveness
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HTC Strategic Partnership

• Partner
• Communities

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Nucleus of HTC Communities


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HTC as a Case Statement

• HTC helps Communities to
• Start and Grow Small Businesses
• Provide Better Local Economic Opportunities
• Expand Leadership Capacity
• Attract More Young People to Live and Work in
  their Hometown
• HTC is a Better Case to Prospective Donors

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HTC has become a National Model

• 2004 Innovative Program Award from the
  International Community Development Society
• 2005 HTC Awarded 2 Million Entrepreneurship
  Development Systems Grant from the W.K. Kellogg
  Foundation (one of six selected from 180
  proposals)
• 17 HTC Academies completed in 8 states
  (787 participants)
• HTC training/technical assistance now being
  provided in 12 other states (HTC developing
  affiliation model)

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Entrepreneurship
Leadership
Youth
Entrepreneurship
Charitable Assets
HomeTown Competitiveness
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EntrepreneurshipExpected Outcomes

• Strategy in place for increasing local
  entrepreneurial business development
• Increased entrepreneurial activity within the
  community in private and public sectors
• New jobs and wealth being created within the
  community
• More current businesses retained and growing

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Entrepreneurship How does it support the HTC
strategy?

• Business development creates jobs and new wealth
  in the community
• Assists in retaining existing businesses
• Sustains population with manageable growth
• Creates career opportunities for young people
• Entrepreneurs can provide leadership and new
  ideas for the communitys development

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Entrepreneurship in Valley County

• Focusing on building business plans for both
  start-up and existing growth-oriented businesses
• Business coach hired to provide one-on-one
  assistance
• 73 new businesses, 10 expansions and 21 business
  transitions since 2000
• These 104 businesses have created 332 new full
  time jobs and nearly 90 million new investment
• Linked people recruitment redesigning Web site
• Youth Entrepreneurship Fair

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Charitable Assets
Charitable Assets
Youth
Entrepreneurship
Leadership
HomeTown Competitiveness
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Charitable AssetsExpected Outcomes

• Community-based endowed assets
• Greater knowledge about charitable giving tools
  and resources
• Grants awarded to specific activities that will
  improve economic prospects for individuals and/or
  technical assistance and business coaching to
  entrepreneurs and small businesses
• Grants awarded to specific activities that will
  improve the likelihood that young people stay or
  return to their hometown

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Charitable AssetsHow does it support the HTC
strategy?

• Community endowments provide a new revenue stream
  to underwrite HTC efforts
• Pool of local assets needed to leverage external
  private or government funding
• Break out of cycle of dependency
• Endowments create a margin of excellence for
  communities to build their competitive advantage

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Andy and Geri Anderson Endowed Gift of 346,341
to the McCook Community Foundation

• First year grant of 13,500 for
• McCook HTC Youth Task Force
• Entrepreneurship training for teachers
• 4-H ESI Entrepreneurship curriculum
• Youth-led community project

To us it is important to give while we are still
alive. We want to see the benefits our gift makes
to the community. - Andy Anderson
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Examples of Strategic Grants

• Non-Traditional Scholarships
• High-quality affordable child care
• Microenterprise business development
• Build Leadership with a Purpose
• Capitalize Youth Foundation
• Retaining and recruiting volunteers
• Value-added curriculum for K-12 school

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Young People
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Young AdultsExpected outcomes from HTC

• Champions group recruited and involved
• Linkages Leadership and Entrepreneurship
• Stronger, sustained connections with alumni
• Increased number of young adults returning

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Sampling of Youth Survey Results
    Plan to Attend College Desire to Return Home Want to Own Business Own Business Now
         
Atkinson Pop. 1380 96 66 57 14
O'Neill Pop. 3,852 98 55 64 12
Stuart Pop. 650 100 66 60 14
Survey of all high school (9-12) students, 2005-06
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Youth Attraction Formula

• Based on actual U.S. Census population data
• Factors in rural county marriage rate
• Calculated using average children per family
• Adjusts for current number of youth in county
• Formula helps determine annual youth goal
• Goal used to open dialog and engage youth

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Garden CountyYouth Attraction Goal

• 1990 Population 2,460
• 2000 Population 2,292
• Percent change -6.8
• Loss Per Year in 1990s 17 Persons
• Total Youth (18 and under) 529 Persons
• Youth as a Percent of Total 23
• Average Graduating Class 29 Persons
• Annual Youth Attraction Goal 6 Persons
• 19 Youth Attraction Goal

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EntrepreneurShip Investigation (ESI)

• Partnership Venture with UNL Extension
• Focus upon Middle-School Age Youth
• Builds on Local 4-H Infrastructure
• Links with Local ED Resources
• Flexible Delivery Methods

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Leadership
Leadership
Youth
Entrepreneurship
Charitable Assets
HomeTown Competitiveness
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LeadershipExpected Outcomes

• Increased diversity in community leadership
• Enhanced leadership knowledge and skills
• More volunteer engagement in community projects
  and activities
• More people willing to run for public office

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Leadership How does it support the HTC
strategy?

• Expands the pool of volunteers and emerging
  leaders to work on community priorities
• Assists current and new leaders in developing
  their leadership skills
• Encourages community members to participate in
  community planning and development projects

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Leadership Development in Butler County

• Partnership between UNL Extension HTC
• Completed 3 years of Leadership Plenty 53
  graduates
• Intergenerational and interdisciplinary
• HTC expanded county-wide in 2006
• Butler County inter-local agreement to support
  community economic development (two full-time
  staff)

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HTC Helps Communities Spiral Up
Sustainability

• Philanthropy for ongoing funds for leadership,
  youth, and entrepreneurship
• Cultural capital increases with pride and hope as
  young people return
• Youth engagement, leadership and entrepreneurship
  development and capturing wealth transfer creates
  new social, cultural and financial capital.
• Social, political and financial capital to
  support HTC and early assessment
• Cultural capital begins to changeWe can do it!
• Bridging social capital brings outside expertise
  together with internal wisdom

Phase 3
SPIRALING UP
Phase 2
Phase 1
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HTC builds Community Ownership

• In three years, Valley County (population 4,647)
  has graduated 70 from a leadership class set up
  an endowment with 1.2 million willed by a local
  couple and hired a business development
  coordinator.
• A wealthy alum living in Arizona flies in to
  teach a class on growing entrepreneurs. A
  graduate came home from Lincoln to a start an
  irrigation-well firm. Another plans a local
  dental practice. The county must attract 27 of
  its high schools average graduating class of 67
  to stabilize its population by 2010.
• USA Today, February 9, 2005

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HTC Success in Valley County

• Economic development staff of three
• Ongoing business training visitation
• Youth entrepreneurship fair
• 102 graduates of county-wide leadership class
• 67 1,000 founders of HTC endowment
• 7 million combined endowment and expectancies
• Retail sales 20 (statewide 16)
• Per capita income 22 (statewide 9)
• Population gain of 3 (first increase in 50 years)

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HTC Success in Holt County

• HTC initiated in Stuart Atkinson in 2003
• ONeill joined in 2004
• Inter-local agreement in 2006 to expand
  countywide (9 communities)
• Full-time county-wide HTC coordinator
• Starting 4th HTC leadership institute
  65 graduates
• 2.5 million combined endowments expectancies

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HTC Success in Butler County

• David City initiated HTC in 2004
• Strategic grants for youth entrepreneurship,
  leadership development, related HTC efforts
• David City Aquinas entrepreneurship class
• ESI camp completed summer 2007
• Starting 4th year of Leadership Plenty
  50 graduates
• David City Area Foundation changed to Butler
  County Community Foundation in 2007

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EndowNebraska Nebraskas Charitable Tax Credit
for Gifts to Endowments

• Tax incentive to mobilize the transfer of wealth
• 15 credit for individuals (10 for corporations)
• Maximum credit of 5,000 per year
• Individuals Irrevocable planned gifts
• Corporations Outright gifts
• Effective January 2006 Sunsets December 2010

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Building Entrepreneurial Communities Act (BECA)

• Matching grants to two or more partnering local
  governments to provide education, training and
  technical assistance for
• Small business development and entrepreneurship
• Leadership development
• Attract and retain young people and families
• Community philanthropy and endowment building
• Attract new residents
• Enacted 2005 revised 2007 (500,000/year)

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What Others Are Saying About NCF

• Susan Berresford, President of the Ford
  Foundation, calls NCF a strong, unique and
  national model because it
• is built and sustained from the grassroots
• values and nurtures entrepreneurial leadership
• emphasizes effectiveness, especially in grant
  making, to support economic opportunity
• embraces and seeks to strengthen Nebraska values.

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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
• Build Endowments for Margin of Excellence
• Renewed Hope in the Future of Our Hometowns

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For more information on the Nebraska Community
Foundation or HomeTown Competitiveness

• www.nebcommfound.org