What is the Partnership to Raise Community Capital

The Kresge Foundation entrusted the Community Foundation of Broward to challenge local nonprofits to create endowment funds. The Gold Coast Jazz Society was chosen as one of eighteen agencies chosen to receive the incentive that for every $3 raised, they will receive $1 in matching endowment funds if they reach their three-year goal. It is an "all or nothing" challenge. Meeting this goal will stabilize and strengthen the efforts f these organizations for years to come.

In addition to financial benefits of this challenge, the goal is to raise the professionalism of the staff and their fund-raising abilities. These agencies provide vital services to our community. By supporting them, the community itself becomes stronger and more able to meet the needs of those who live there.

The Community Foundation's Investment Philosophy

The investment philosophy of the Community Foundation of Broward has been developed to ensure that an endowed fund can provide the "legacy of giving" to each organization. Through this comprehensive policy, the Foundation seeks to maintain or increase the real value of the endowment principal with which it has been entrusted.

As stewards of these funds, the Foundation's main investment objectives and goals are to preserve the purchasing power of the Foundation, to achieve returns in excess of the rate of inflation and to emphasize long-term growth of principal while avoiding excessive risk.

The Foundation's investment goals are to exceed a 10% total rate of return and to exceed the rate of inflation by 7%. The long-term objective is to meet or exceed the index mix.

The Foundation's Board of Directors oversees investment consultants and the performance of the seven asset managers as well as being responsible for the investment, distribution and allocation policies. Each investment manger's performance is measured quarterly against specific benchmark indices. The Foundation maintains a well diversified portfolio, which is invested in the optimum mix of asset classes.

The Kresge Foundation

In September of 1998, The Kresge Foundation approved a multiyear $18 million partnership to raise capital for community foundations across the nation. Through this program, Kresge hopes to develop endowment assets to provide income for community foundations and area nonprofits in perpetuity. After a thorough application process, Kresge chose the Community Foundation of Broward as one of six (6) community foundations.

The Community Foundation of Broward

The Community Foundation of Broward's mission is to improve the quality of life for Broward residents, not just today, bur for generations to come. By helping agencies like the Gold Coast Jazz Society to establish endowed funds, the Foundation is able to address key issues affecting the community. In its eighteen-year history, the Foundation built its assets to almost $40 million and granted more than $12 million to hundreds of local nonprofits.

To date, nearly fifty (50) agencies have created endowments through the Foundation to ensure their permanent financial stability. Because of the Foundation's dedication to supporting local nonprofits, it takes great care in honoring donors' intents. You can take great comfort in knowing that your gift to the Gold Coast Jazz Society will be placed in an endowed fund at the Community Foundation to benefit this organization. If this agency should cease to exist, the Community Foundation of Broward retinas its variance power to redirect this endowment fund to support programs that are most closely aligned with the Gold Coast Jazz Society mission.

As a result, you know that your investment will be helping the mission of the Gold Coast Jazz Society in perpetuity.

Why Establish an Endowment?

And endowment is not a capital replacement fund, a reserve fund or a special project fund. An endowment is a permanent fund in which the principal is never touched. A portion of income is directed back to the agency annually to provide a guaranteed source of income. Most non-profits create a policy that allows these proceeds to be unrestricted for operations since this is the hardest money to raise. After reviewing the national average of 4% to 5% payout rate, the Community Foundation of Broward has adopted a 5% distribution policy.

As a result, the Gold Coast Jazz Society would annually receive 5% of the market value of its Endowment Fund, based on a twelve (12) quarter rolling average of the Fund's fair market value. Using the Ford Foundation model of the rolling average of the past three year's performance enables the Community Foundation of Broward to smooth any market volatility and provide a dependable stream of income for this organization.

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