OUR ROUNDTABLE PARTICIPANTS
Mike Parks, president, the Dayton Foundation (daytonfoundation.org)
John Guidugli, president and CEO, Hamilton Community Foundation (hamiltonfoundation.org)
Melissa A. Kleptz, executive director, the Troy Foundation (thetroyfoundation.org)
Ted Vander Roest, executive director, the Springfield Foundation (springfieldfoundation.org)
T. Duane Gordon, executive director, Middletown Community Foundation (mcfoundation.org)
Moderators: Michael Williams, Ron Rollins
Across the Miami Valley, locally based community foundations work hard to apply donated funds toward supporting social services, non-profits, arts groups, community organizations and various initiatives. A lot of this is done quietly, and we wondered how the foundations were faring since the economy began its slow recovery. We recently gathered the leaders of five of our community foundations — those serving Troy, Springfield, Hamilton, Middletown and greater Dayton — for a roundtable discussion to find out how their work is going.
Moderator: Talk about how the role foundations play is changing these days — for instance, in terms of providing local leadership.
Ted Vander Roest: We made a conscious effort, starting about five years ago, to become more of a community leader and convener rather than just a grant-maker. So, we're looking at opportunities where we can get people together to work around an issue, whether we are actually funding it or not. We're trying to get out of the ivory tower, if you will, and become more involved as actual community leaders. In the past, we were the quiet guy in the background. Now we're more in the forefront.
T. Duane Gordon: Same with us. Community foundations are among the few organizations in most communities that don't have an agenda; they're not governmental, they're not faith-based or commercial — they exist solely to do public good. We're in a rare position to bring opposing sides together to the table to find solutions to community problems.
John Guidugli: People were used to reaching out to us already, so it was easy to start the local conversation about who has needs, strengths, and how can we solve a particular problem. People already tend to listen to us and so they allow us to facilitate the conversation, and you start to feed into the power that's already there.
Melissa Kleptz: I have always seen our role in the community as an agenda-free facilitator. This is extremely important because it is hard for most organizations to get past the "ownership" of a service or program, so that they can see that sometimes a carefully constructed partnership with other organizations cannot only enhance the program or service, but to also provide ways to combine dollars needed to get the job done. For instance, I think that now, more than ever, it is key for foundations to try to find new ways to help non-profits collaborate to help reduce duplication of services, and most importantly, to help keep their costs down with reductions in funding by government. It is much easier for foundations to help facilitate this, as we can be seen as impartial.
Michael Parks: Community foundations have multiple missions and aspects. Philanthropy and community initiatives aren't all that we do. What has really changed is the corporate environment. As we have fewer large local corporations, the landscape has changed, and so there's a shift now toward institutional leadership from the organizations that remain geography-based, such as colleges, hospitals and community foundations that aren't going anywhere and are going to remain here. People are turning to those. We're just being asked to play a more prominent role than in the past.
Moderator: So, as local government budgets have been cut, has that put more pressure on you?
Gordon: That's a philosophical line, with services that government would provide in a perfect world, but don't anymore. Some foundations will fund government services, some won't. We had this conversation, and we funded some training for the Middletown police department that they could not afford anymore, but which we felt was important for the safety of our residents.
Vander Roest: We're funding more human services than we used to.
Kleptz: One of the biggest challenges that we face is how to meet all of the needs within our community. As government budgets continue to shrink, we have found ourselves trying to fill the voids that have been created by the decrease in funding. We have had to take a long, hard look at what services and programs are the most important, and continue to make tough funding choices.
Parks: This is a difficult public policy question — the private sector will never be able to cover all the things that are the public's responsibility, but will we be asked to do more? Yes, and it's a challenge. It's something we'll have to manage through. What we in the private sector really are best at is things that are more risky, innovative and entrepreneurial.
Guidugli: Stability is the issue. We've stepped in a few times on park projects or pools, but we probably won't ever have a line item for them the way the city or county used to. We have to be strategic and know how to effectively step in when the time is right.
Parks: It's a collaborative role.
Vander Roest: Also, we hand out $3 million a year, but only about 18 percent of it is unrestricted. For most, the donor has some say in it.
Parks: That's the other half of our mission, to encourage the growth of philanthropy from families and donors who establish funds at our foundations. With those, the interest of the donor is often predetermined, but to respond to the other side of our mission, responding to community initiatives, we need to tap into gifts from people who don't restrict their gifts, and don't feel the need to make decisions from the grave, if you will.
Moderator: Talk about how the Great Recession affected your foundation and its mission.
Kleptz: Putting aside the obvious effects on the investment side, what we noticed the most, was that the need to increase the capacity of human services organizations was great. Lots of unemployed folks, uninsured folks due to loss of employment needing medical care, people who had never needed assistance, found themselves in line at food pantries and soup kitchens. At the same time, the non-profits providing these services weren't seeing their normal level of donor support, due to donors being more conservative with their giving. I was absolutely astonished at how the non-profit community rose to these challenges, and began to really see the need to work together to get people served. Although the past few years have been tough, I have found it very rewarding to witness how this period in time has strengthened our non-profit community's ability to work together more effectively and to better connect those in need to the services that they need. Communication amongst organizations has increased dramatically, which can only continue to benefit our community.
Gordon: It was a real one-two punch. Fortunately, it's turning around.
Guidugli: It was scary. Our asset base was down, donors were more reluctant to give, and we had more requests for need. Most of us look at our assets over the long range, and we continued to give out money to meet community needs, but it was a nervous time. The market has come back, but I'm not sure that community needs are down. Still, it's better now than it was a few years ago.
Parks: The front end of our mission, the philanthropy to help others help others, has absolutely rebounded. All communities have caring individuals who want their communities to be better for their kids and grandkids, and have a real motivation to give back. Yes, they had to cut back in 2008 and '09, but that didn't change their makeup, their DNA. So as the markets recovered, their giving also did. That giving level nationally is up. People want to help their neighbors, and our role is to help them.
Moderator: Are you seeing signs of a recovery?
Kleptz: Yes. During the past several years, I have worked with very cautious donors who, prior to 2008, might have established funds or made larger gifts to support charity, but have held back due to the uncertainty of the economy. It has been a planning period for most that I have worked with, as I have done more planning for future gifts through their estate plans. 2013 has resulted in many more "now" gifts, and year-end stock contributions are double over last year at this time.
Guidugli: Many of our donors have recovered and are back supporting us, but a lot of the people affected by the recession are still affected. Maybe they've found a job, but not one that pays as well. Soup kitchens, shelters, social service organizations are still stressed out and they've seen more cuts of government funds. There are organizations we're funding more on a regular basis that we might have funded once with a single project. That's a change for us, as we transition to funding those organizations on a regular basis.
Parks: Still, we're all very collectively optimistic about the future. The greater Dayton region is No. 1 for per-capita giving. Our communities are all blessed with individuals who made a living here, stayed here and still care and are stepping up and want to make a difference, even with that change in the corporate environment. What does the future look like? I'm very optimistic. Not because of public money, but because we have these valuable individuals, and 85 percent of giving in America comes from individuals. The philanthropic future in the Miami Valley is very bright.
Moderator: What keeps you all awake at night?
Kleptz: Thinking about how our foundation can better assist our non-profits to form effective collaborations and to continue to connect our donors to the community, so that as they retire and possibly leave our community, they can leave a lasting gift that will benefit the community that they lived in, and not necessarily the communities they are moving to.
Gordon: We worry about the next generation of givers. I'm a member of Generation X, and it's extremely difficult to get people from my generation involved. They don't seem, on average, to be as connected to the community, or to be as generous or interested in traditional philanthropy as their parents and grandparents have been. It worries us how to get people of that generation to a place where they'll be the sustainers when they get to that age level. Currently, they are not. It's hard to get them on our committees, on our board.
Parks: There's a lot of debate about that — will the boomers and those who follow them be as engaged and philanthropic as previous generations? The jury's still out. One thing that's different today is that we used to have farm systems, if you will — lots of service clubs that got young people involved. Those are gone, and they aren't coming back. But we in the non-profit sector need to get better at engaging young people in a different, better way. They still want to get involved, but we need to figure out a different way to ask and engage them.
Guidugli: I agree with that. Younger donors tend to be more engaged in where their money is going. They want to be involved with and informed on the organization. They are less likely to give unrestricted dollars. We need to figure out how to be viable and important to them.
Kleptz: I am seeing signs of that, but also a new generation that really cares about community as well. At the end of the day, I think that the younger generation wants to give back by action, as opposed to always writing a check, probably because they don't yet have the capacity to write the check. Our community is finding ways to engage these young people in the work by including them on boards and committees.
Vander Roest: I wonder if maybe younger generations just get a bad rap, too. I mean, if you looked at all us back in the '70s, were we all that involved in this sort of thing? I think these folks are just busy raising families now, is all. They'll come around. It's just something we have to work on.
Moderator: What are common misconceptions people have about your organizations?
Kleptz: When I started with the foundation 17 years ago, there were two very common misconceptions. First, that you had to be wealthy to be a part of the foundation's work, and second, that the foundation had to come to you, as an organization, in order to receive funding. We have worked very hard to create ways to make any sized donor feel comfortable partnering with the foundation to assist them with their philanthropy and also to welcome conversations with all non-profit organizations to help them through the grant-seeking process.
Gordon: That we are part of government. I get a call at least once a week asking about paying a water bill, or paying taxes. People think we're part of the city government, when we're really a 501(c)3, separate from any government entity. That's the No. 1 misconception.
Vander Roest: That we have more discretion over our funds. Eighteen percent is all we have discretion over. Most of our funds are earmarked by the donors for specific uses.
Guidugli: I think it's people's idea of the level of wealth they have to have to be donors. Thinking that they have to be a millionaire to contribute. We can take any size of contribution and effectuate what the donor wants to see happen with it.
Parks: That's what we all share at our very core — community foundations provide a place the table for everybody.
Gordon: Statistically, individuals at the lowest level of wealth give the highest percentage of their income to help others. Mississippi has the highest percentage of giving in the country, and the lowest per-capita income.
Parks: It's different in terms of absolute dollars, but that's true.
Moderator: When the time comes to step down, what advice will you have for your successor?
Kleptz: Never stop looking at ways to include all types of donors, large and small, and to continue the open-door policy. This has allowed me to continue learning each day, so that we can continue to meet the ever-changing needs in our community.
Vander Roest: Get to know your community. Meet with community leaders. And read through all your donor agreements, so that you know why those funds are there, and what the person wanted to happen with them. So, know your community and your donor base.
Gordon: Listen. Listen to community needs, read the paper, know what's going on. Some days can be an overwhelming cacophony of noise in the community, with people coming at you from all directions from all kinds of charities, and all with important needs. But at the end of the day, it can boil down to what is the best course of action for the community, and what will have the most lasting impact and make it a better place to live. That's an awesome responsibility, but it's the most rewarding job you can have.
Guidugli: I agree, it's the best job you can have. You do rewarding stuff. Advice? Listen to those around you, build a strong board and staff, and don't be afraid to take chances.
Parks: We're all blessed to be in these positions. We all go into work each day with the sole mission of helping people help others. What else could you ask for? We're blessed to live in communities where people really do want to give back, help others and make the place better than when they came in. We are lucky.
About the Author