Cascade Community Foundation Minutes

Cascade Community Foundation

January 16, 2003

Cascade Township Conference Room

7:00 a.m.

Members present: Carpenter, Julien, Lewis, Parrish, Robinson, and Vredevoogd.

Absent: Roeder

The meeting was called to order and Sandra Parrish introduced Molly Parker from the Grand Rapids Community Foundation. Molly was invited to attend the meeting to clarify the partnership between the Cascade and Grand Rapids Foundations.

The Cascade Community Foundation is not a separate 501C3 company but an agency endowment fund within the professionally managed Grand Rapids Community Foundation. The Grand Rapids Community Foundation will assist and offer administrative support so the Cascade Community Foundation can focus on fund raising and the charitable needs of Cascade Township.

Ms. Parker explained a geographic component fund is one started by community volunteers, not by a government agency. An agency endowment fund doesn’t need the ability to accept gifts as tax deductible. Citizens already have the ability to give to the Township and receive a tax credit. Grand Rapids Community Foundation views agency endowment funds as a service to the community. Donors want and need to know how their money will be used. Donors also need to realize that a gift to both foundations will not qualify for two tax credits.

Examples of mailings from other community foundations were distributed by Ms. Parker.

Mr. Julien related we must find a balance between the two foundations and realize the focus has been on how to raise money. Future mailings should explain that Grand Rapids Community Foundation is the administrator of the fund and we benefit from their investment expertise.

Ms. Parrish stated the plan of this group is to identify major donors and do a campaign to solicit donations in the spring. We need to identify some future costs and staffing needs as well. Ms. Parker related some groups have fund drives to raise administrative money.

Ms. Parker spoke regarding administrative fees to be charged by the GRCF. Agency endowment funds with more than ten transactions will be charged a 1% fee. She also named the five separate entities that qualified to grant a Michigan Tax Credit. The five are: Food Banks, Libraries, Colleges or Universities, Public Radio, and Community Foundations.

Treasurer Carpenter reported a total of $25,000 has been received from 60 donors. She expressed surprise that a few small donations (under $100.) were received. These donations are a good indicator that there are people out there who can’t contribute a great deal but who want to be a part of the foundation.

Ms. Vredevoogd suggested a newsletter article from Chairperson Robinson explaining the partnership with GRCF and include some frequently asked questions. We need to say GRCF administers our fund, we rely on their investment expertise, but they do not decide how the money is spent. Any project takes time to get rolling but she is impressed with what we have received so far.

Mr. Julien related he incorrectly assumed that tax dollars could be spent for start-up costs. This group needs to go forward into 2003 and figure out how to finance staffing needs and expenses. Mr. Julien used the following to show contrast between a charity and an endowment fund.

$1,000 to charity = Budget as revenue $1,000

Expenditure ($1,000)

Savings -0-

$1,000 to endowment fund = Revenue $1,000

Earnings on 1,000 $ 50

Spend 5% ($ 50)

Savings for future $1,000

The purpose of an endowment fund is to save what you receive permanently earn at least what you spend, preferably more.

Mr. Lewis suggested an idea for reaching people could be a community treasure hunt. The winner could be announced at the July 4^th festivities. Clues could be purchased making it a fun adventure for those who choose to get involved.

Chairperson Robinson feels the next mailing should invite people to give any amount of money at any time during the year.

The next meeting is scheduled for February 20, 2003 at 7:30 a.m.

The meeting adjourned at 8:20 a.m.

Respectfully submitted,

Jeanie Neve

Deputy Clerk

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