Request for Concept Letters

What is the Great Giving Match? The Great Giving Match is a challenge grant matching program for nonprofit organizations to build endowment funds. Agencies apply to participate by submitting a concept paper on or before July 21st, 2003. The agency chooses an endowment challenge goal between $5,000 and $25,000. The organization commits to raise this amount and The Community Foundation commits to match the endowment challenge goal dollar-for-dollar for those agencies selected to participate.

What is an endowment fund? It is a long-term fund held and managed by The Community Foundation on behalf of a non-profit organization. The agency receives annual distributions for unrestricted use. The fund is technically owned by The Community Foundation on behalf of the agency.

What are the benefits of participating in the Great Giving Match? There are several advantages to this program:

• Fundraising. Challenge grants can be a powerful incentive in fundraising. Donors appreciate knowing that their gifts will be matched dollar for dollar.
• Convenience and security for donors. The Community Foundation’s ability to handle complex gifts quickly can be especially important for year-end contributions or non-cash gifts. Also, some donors like the idea of contributing to an organization’s long-term stability. Donors receive assurance that their money will be managed in perpetuity, which is helpful with new or relatively small agencies without established track records.
• Simplified reporting. Agencies receive exemption from filing a tax return or reporting on this fund, since the fund’s financial transactions are consolidated with those of other funds on The Community Foundation’s Form 990. We provide quarterly reporting on investment fund performance to your agency and staff.
• Legal support. The Community Foundation has access to the legal staff of the Council on Foundations and our own legal committee for assistance in structuring complex gifts, such as property or stock gifts, and remaining up to date on new tax implications for charitable gifts.

Who may apply to the Great Giving Match? Any charitable, nonprofit organization classified as a 501(c)(3) tax-exempt organizations by the IRS that primarily serves Boulder County. Grantees must be able to demonstrate a history of ongoing service to the community. Local chapters of national organizations may apply, provided that their endowment distribution income is spent locally.

When is the submission deadline? A cover letter and a 2-3 page concept paper must be received by The Community Foundation Serving Boulder County by 5:00 p.m. on or before Monday July 21st. As part of the proposal review process, you may be contacted with questions or requests for additional information.
What is our fundraising obligation? Your proposal will identify an endowment challenge goal between $5,000 and $25,000. This is the amount that your organization must raise in order to qualify for matching funds from The Community Foundation. The Great Giving Match is a challenge grant, which means that you must meet your challenge goal by the date specified in order to receive matching funds. If you do not meet your goal, you may still be able to establish an endowment fund with the Community Foundation, but your funds will not be matched.

What factors will be considered in evaluating proposals? A committee consisting of community foundation staff, partners and donors to this effort will consider applications. Every effort will be made to accept groups working in a variety of fields and geographic locations within the county. Small and large established organizations with stable finances, steady or increasing use statistics, quality programs and strong board leadership will receive favorable consideration. Finalists will have the opportunity to provide information and be evaluated on

• The feasibility of the endowment fundraising plan,
• the organization’s fundraising track record, and
• plans to continue building the endowment.

What gifts will count toward the challenge grant? Any gifts of NEW money designated by a donor to the Great Giving Match will count. Those gifts can be cash, marketable securities, and other assets that comply with current Community Foundation gift acceptance policy.

Will participating in the Great Giving Match affect my annual fundraising campaign? Ideally, participating in the Great Giving Match will increase an organization’s donor base and translate into higher annual campaigns in the future. We hope the challenge dollars will add incentive for donors to give more. However, donors should be encouraged to understand the differences between endowment funds and annual campaigns. If your organization may have trouble meeting its operating budget in the next 2-3 years, this may NOT be the ideal time for you to undertake an endowment campaign.

How will our endowment fund be managed? The new endowment funds will be invested according to The Community Foundation’s current investment policies. Income distributions are 5 percent of the market value of the endowment. In years where the yield is higher, distributions will be maintained at 5 percent, with the balance of the growth being added to permanent principal, to ensure that the endowment principal and distributions continue to grow.

The total administrative expenses for these funds will not exceed 1.5 percent of market value.

What if my organization needs access to the endowment principal for an emergency? The intent of the Great Giving Match is to create permanent endowment principal. In an emergency, an organization may request that distributions of principal be made from the fund, and The Community Foundation Board of Trustees will give good faith consideration to those requests. However, donors will contribute funds with the promise that their gift will become permanent principal, and not be used otherwise. Agencies should be clear that an endowment fund is not an operating reserve, and may not be taken back to meet current needs.

What if an organization already has an existing endowment? Agencies with endowments are still eligible for the Great Giving Match. Existing endowments may be moved to The Community Foundation if the organization wishes to consolidate. They will not, however, count toward the challenge grant goal. Endowment gifts raised as part of the Great Giving Match must be housed with The Community Foundation.
Why will the endowments be housed at The Community Foundation? One of the primary reasons community foundations were established across the nation is to receive and manage permanent endowment funds. This service provides donors with the knowledge and security that their donations will be perpetually restricted for the use of your organization. Economies of scale are also possible through The Community Foundation’s consolidated investment management.

Will participation in the Great Giving Match affect my organization’s ability to submit other grants to The Community Foundation? No. Organizations participating in the Great Giving Match may still submit proposals in response to other grant opportunities through The Community Foundation.