Dear Friend of the East Bay Community Foundation,
Our economic recovery, so far, is no straight line to the top of the mountain. The path shows many twists and turns.
We see some signs of increased charitable giving from our donors. We see other signs indicating continued fundraising difficulties by non-profit organizations.
One of the reasons some donors are on the sidelines may be confusion over the state of a federal estate tax, our first item below.
On the side of good news is the second item, which reports our fourth consecutive four-star financial rating from Charity Navigator as well as the results of a survey we've taken of our donors.
Of special interest to you, we hope, is an article appearing in Financial Planning magazine on "Impact Investing" written by Ron Cordes, the Vice Chair of our Board of Directors. As you'll see when you reach that item, we ask for your interest in an impact investing fund at the East Bay Community Foundation.
A seminar we're offering on June 22 and June 23 for board members of nonprofit organizations on effective fundraising, a glimpse of our annual report - one which values brevity, and our appeal for you to support our important work close out this issue of the newsletter.
Best to you,
Nicole Taylor
President & CEO
Federal Estate Tax: Not a Pretty Picture
A bulletin published recently by the American Association of Retired Persons (AARP) contained two memorable quips about the messy situation surrounding the Federal Estate Tax.
The first of the two: "Congress has done what seemed impossible: injected uncertainty into death and taxes."
That line, of course, refers to the fact that Congress has allowed the federal estate tax to lapse this year, after having been in effect for 94 years. With continued inaction on Congress' part, the tax will resume in 2011, sending it to 2001 levels and a top rate of 55 percent on estates valued in excess of $1 million.
Will Congress instead step in and pass a new law with new rates this year? Will any new law be applied retroactively to bequests made this year?
Because nobody knows, estate planning and financial advisors are uncertain whether to give advice good only this year and then give opposite advice next year. Clients are equally betwixt and between. Those with a long history of charitable giving are recalibrating their finances based on this huge question mark surrounding expenses that might be generated by a new estate tax.
Congress should act now to eliminate this uncertainty that is causing donors to avoid making philanthropic commitments because of a tax-information vacuum.
Given Congressional inaction, however, there does not seem to be a reasonable solution - except for the one described by the second memorable quip in the AARP article: "The only way to really take advantage of the repeal of the estate tax this year is to die, which is not that appealing to most people."
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What They Say About Us
Charity Navigator: Fourth Consecutive Four-Star Rating
We've been awarded our fourth consecutive four-star financial rating from Charity Navigator, largest of the organizations that rate charities. Only 8% of charities evaluated by Charity Navigator have received at least four consecutive four-star evaluations.
As Charity Navigator noted in a letter to us: "This 'exceptional' designation...differentiates the East Bay Community Foundation from its peers and demonstrates to the public it is worthy of its trust."
We believe that now, more than ever, those engaged in philanthropy want to know their money is used well and wisely. This award, then, couldn't be timelier.
Charity Navigator rates 5,500 charities, using information from IRS Forms 990 to analyze performance covering organizational efficiency, organizational capacity, and overall financial health. It then compares scores among organizations to assign a rating of one to four stars. Four stars is the highest rating.
Our next goal couldn't be clearer: a fifth consecutive four-star rating. To see more, click here.
Our Donors: Thumbs Up
More than 70% of respondents to a recent survey of our donors said our image has improved or positively stayed the same over time. An even larger percentage sees our external "reputation" as high.
Respondents expressed satisfaction with most of our products and services. Our greatest strengths, respondents said, are professional staff, community connections, efficient management, facilitating charitable giving, convening and organizing, tax benefits, and our overall reputation.
Exactly 67% of respondents said they would "definitely" recommend us to others and another 21% said they "probably" would.
Investment performance was an area respondents identified for improvement and so we have brought on board a new financial investment firm, Convergent Wealth Advisors, to address that issue. To learn more, click here.
Some 3/4 of respondents gave high ratings to our overall interactions and communications with them.
Respondents specifically said they liked our website, social events, and seminars. But we weren't satisfied. Since the survey was taken, we have made large-scale improvements to the content, navigation and design of our website - with more improvements to come later this year. See for yourself at www.eastbaycf.org.
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Impact Investing to Tackle Social and Environmental Problems
Ron Cordes is a participant in the emerging field of impact investing.
As Co-Chairman of Genworth Financial Wealth Management, Inc., and Vice Chair of our Board of Directors, Ron has written an article in the current edition of Financial Planning magazine on impact investing and how it could "fundamentally reshape how your clients 'do well by doing good,' how the planet's biggest problems get solved, and how you bring value to wealthy investors."
Impact investing combines capitalist forces with social justice issues to solve major social problems, such as poverty, infant mortality, sanitation, homelessness, substandard education and global warming -- and attempts to generate reasonable returns. It does so by offering investments in thousands of small, privately held firms that have sprung up around the world.
See the entire article by clicking here. Then help us assess how the East Bay Community Foundation might offer impact investments by answering three brief questions in a survey here.
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Seminar for Board Members of Non-Profit Organizations
Many of you and your clients serve on the governing boards of nonprofit organizations, where a common need is effective fundraising. Now we're offering you a program to strengthen your abilities as an effective fundraiser for your favorite non-profit.
"Effective Fundraising for Board Members" will be held Tuesday, June 22, 4:30-6:00 pm in the James Irvine Foundation Conference Center at our headquarters in Oakland and again on Wednesday, June 23, 8:00-10:30 am in the Lafayette Library and Learning Center.
The speaker is fundraising expert Kim Klein, author of "Reliable Fundraising in Unreliable Times" and "Fundraising for Social Change."
To register for the June 22 afternoon session at the James Irvine Foundation Conference Center in downtown Oakland, visit www.ebcf.kintera.org/fundraisingoakland.
To register for the June 23 morning session at the Lafayette Library and Learning Center, visit www.ebcf.kintera.org/fundraisinglafayette.
Thank you for your continued support. Together we are the power of many.
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Ever Read an Annual Report Cover to Cover?
If you can't take one more annual report that goes on forever, then you'll like our Perspective 2008-09.
Our annual reports have become briefer during the past five years. This year, we chose a new format so that people might actually read it completely.
Perspective 2008-09 is a two-page document providing a high-level snapshot of the foundation for the past fiscal year and highlighting some of our impacts. To see it, click here.
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Together We Can Meet Urgent Needs
We know the challenges facing local communities. Poverty and hunger are increasing, high-school graduation rates are falling, and thousands of homes in the East Bay are in - or at risk of - foreclosure. Our work requires a strong infrastructure and fiscal flexibility - both of which are made possible by our Community Leadership Fund.
We depend on these unrestricted funds to conduct research, create vital partnerships, and achieve impact to make change. The Fund gives us flexibility to make grants meeting urgent needs of at-risk children, families and adults. We need your help.
We have partnered to:
- Promote reading by grade level at third grade by supporting parents, and by providing books to schools and families, one-on-one tutoring, and reading nights to 6,000 children and families.
- Support 2,000 individuals with academic and career training that improves child care for infants, toddlers, and pre-schoolers.
- Fund programs providing 3,000 people with financial literacy training and workshops.
- Support the launch of a major Green Jobs program in Alameda and Contra Costa counties.
- Fund programs for 1,000 entrepreneurs wanting to start or expand small businesses, thus creating sustainable jobs in our communities.
You can donate online at www.eastbaycf.org, contact us at 510.836.3223, or mail your check to us at the East Bay Community Foundation, De Domenico Building, 200 Frank H. Ogawa Plaza, Oakland, CA 94612.
Whether you can support us with your time, your talent or your treasure, know that we sincerely appreciate the effort.
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