Opening

Thank you and I would also like to thank Kathy Shetler for all her hard work in organizing the CEASD conference this year.  I’m very happy to be here and I’m very happy to be in St Augustine again.

What if I told you that I had a magic wand that I could wave and bring your foundation to life, with out the least effort or expense on anyone’s part? Would that get your attention? I bet it would! Well, I don’t have that magic wand but what I do have is a little experience that I’m more than willing to share in the hope that I can help you in your decision to start a foundation and, I hope, do that with the 20/20 hindsight that I have found from my own experience in this exciting and satisfying journey that I’ve been on since I founded Brave Kids in 1999.

Let me begin with a little bit of an overview of Brave Kids and what we do. Brave Kids is a non-profit organization that helps children with special needs. I designed the Brave Kids concept at my kitchen table and developed it into a national children’s charity. And I started the organization from nothing, using my own initial investment to get the idea off the ground and develop the early momentum. In the next thirty minutes or so, I want to share some of the challenges I’ve faced and the lessons that I have learned with you in building a national children’s charity from scratch.

Let me begin by saying that you have to have real passion for the cause as a main ingredient, whatever it is. These are tough times for charities and foundations, and if you’re going to find the strength and energy to persevere, you have to have a real sense of passion for what you’re doing. Organizations are successful because the people who lead them have passion for their mission. That is true for every successful charity, foundation, education institution, non-profit organization and it is true for successful for-profit companies too.

Passion… it reminds me of that very simple axiom that we've all heard a thousand times: do what you love and the money will follow. The individuals who you hire to run your foundation must have passion for the mission.  They must be able to communicate that passion and excitement to the donors if they are going to be successful in raising money. 

From my experience I’d like to share with you, the three things that stand out as the “must-dos” or “mission-critical” to your success in starting and succeeding with your foundation. Think of this as learning from the mistakes of someone who has made more than her fair share!

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1.  It might sound overly simple but it is so true and so fundamental that to overlook its mention would be to ignore the pink elephant in the middle of the room. I’m talking about “commitment” to the cause.

If passion is the spirit that drives you to undertake the creation of an organization to advance whatever your purpose may be, commitment is the framework that will surround your success. There are going to be a million obstacles that are going to pop up and stand squarely in your path. You can’t let obstacles, however ominous they may seem to be, stand in your path or derail you from moving forward.

When I think back to the first year that Brave Kids came into existence, the obstacles were legend. If I had a nickel for every one of those bumps we encountered in that first year, I would have been done raising money years ago. You have to find a level of commitment that matches the passion that you bring to the task. The combination will form an unbeatable foundation.

2.  The second mission-critical item for this list speaks to is the importance of adequate resources. The simple fact is this: you cannot underestimate the importance of fundraising. If it seems to be all-consuming, you’re probably spending just about the right amount of time at it!

Recognize that fundraising is, or should be, the first item in the job description of everyone associated with the foundation, especially in the first critical year or so. Even people who may not be directly tasked with fundraising have to recognize that the organization will not exist without the resources to do the job it is created to do.

Its hard work raising money, even for the best of causes but you can never take this aspect of your work for granted. If you have been relying on government grants and considering all the state cut backs, you have to start a foundation.  Don’t put all your eggs in one basket.  You should seek funding from individuals, foundations and government grants.

Here are a few things that you should consider as a part of your fundraising plan:

·        Your board members have to be an active part of your fundraising program. Set a give or get minimum and make sure that they understand that fundraising – again, especially in the first year or so – is job number one.

·        Having an “angel” or two is a great way to start – especially if you have a Bill Gates or Warren Buffet in that mix – but for the most part, it’s better to have a whole bunch of smaller donors rather than one or two big ones. Whatever you may think of their politics, several of the presidential candidates in this campaign cycle have made a very effective use of the Internet to raise money through thousands and thousands of small donors. Building a wider financial base with large numbers of smaller donors can provide you with a stronger base to continue to develop over time.

·        Consider partnerships with corporations. Your program may well be a great vehicle for any number of social responsibility programs that are becoming increasingly important to corporations in this country. Corporate social responsibility partnerships can be a rich source of funds but you have to be prepared to wade through process and find the flexibility to make the partnership win-win for the organization.

·        There are a number of good organizations that can support you in this piece of the equation: consider a membership in the Association of Fundraising Professionals or a subscription to The Chronicle of Philanthropy and the Foundation Center.

3.  The third pillar in building successful foundation speaks to the details. Dot every “I” and cross all the “T’s” and don’t let the details impede your success. Extraordinary commitment and a well-financed foundation can be un-done in a heartbeat if you mess up on the details.

Start with a good attorney – someone who is willing to take the cause pro-bono if you can find a good one – that will help you with your articles of incorporation and the filing of your 501(c) (3) documents. Realize, also that these foundation “paperwork” elements may take four to five months to get together properly. Take the time and make sure that they’re done right.

You need the proper accounting structure and controls in place to track and manage the resources that you’ll be developing. Some of the contributions you may receive may be “restricted” and designated for specific purposes and your infrastructure needs to be in place to manage the funds in that way. Any doubt that can be raised about your financial controls can be very damaging to the organization and the last thing you want to deal with while you’re trying to raise money.

Think about how you’re going to handle the employees you’ll eventually need. Just like any other employer, you need to have policies in place and a good employee handbook that outlines them with clarity. It’s common practice for employers to have employment agreements with their people – agreements that spell out terms of employment, rights and responsibilities. This is another area where the advice and counsel of a good attorney may be invaluable.

A couple of other details to have in place:

• Make sure you have your bank account, payroll and 403b plans in place
• You have to have a liability insurance policy in place to protect your board

You might want to consider utilizing a “Fiscal Agent” early in the development phase of the foundation that can provide a comprehensive set of core management services to new and existing nonprofit organizations such as:

• Fiscal sponsorship
• Financial services
• Employee benefits
• Administrative support
• Human resources policies, training and intervention

Fiscal agents will typically take about 9% of your revenue but it may be an expense that is well worth it. The advantage of using a fiscal agent is that you can begin accepting donations right away.

Conclusion

So to sum it up, the big three steps to building a successful foundation boils down to commitment, resource development and attention to the details. It doesn’t sound glamorous because it isn’t. But if the cause is right, the satisfaction will more than make up for that absence of glamour! Build it on a real passion for your cause or your idea and you’re well on the way to success and making a real difference in our world.

Let me conclude with a little glimpse into the underpinning of my experience and the real drive behind Brave Kids. [ personal story.]

• Ask yourself a few questions as you take the next steps in this journey you may be contemplating: Are you willing to work 24/7 to develop a successful foundation? Do you believe that this is a service for which there is a genuine un-met need? Do you want to diversify your funding sources?

If you answered “No” to any of these questions, then you should probably re-evaluate the concept before moving forward. If the answer to these questions is yes, you’re ready to go. 

Good luck to you all!