Raising Private Funds Starting Building a Local Education

Raising Private Funds: Starting & Building a Local Education Foundation Presented by NJ Education Foundation Partnership (NJEFP) NJSBA Workshop 2011 October 25, 2011

Presenters: Marcia Smith Fleres, MBA Exec. Director, NJ Education Foundation Partnership Robert Sopko, Ed. D Adjunct Professor, Rider University Former Superintendent of Schools Branchburg, Hopewell Valley, & Hunterdon County Patricia Berger Founding President The Foundation for Manalapan Englishtown Regional Schools Marcia Smith Fleres, NJEFP, Inc.

NJ Education Foundation Partnership Over 75 local education foundations Enhances public education in New Jersey by empowering local education foundations. Assists local communities and schools to develop and grow a local education foundation. Provides training and education on best practices, fund raising, board development, marketing, and more. Promotes collaboration among education foundations, schools, and community-based organizations. Marcia Smith Fleres, NJEFP, Inc.

NJEFP (continued) Coordinates with other NJ education organizations to support public education in New Jersey Increases public awareness of the vital role of local education foundations in NJ Advocate for quality public education in NJ Marcia Smith Fleres, NJEFP, Inc.

What is an Education Foundation? Private, nonprofit 501(c)(3) tax-exempt charitable organization under the IRS rules. Chartered as “nonprofit corporation” in NJ Distinct from Board of Education and administration Works in partnership with school district Augments, supplements, or complements programs currently being provided by the district In NJ, they are usually volunteer driven. Marcia Smith Fleres, NJEFP, Inc.

Purpose of an Education Foundation Support and enhance education for all students Solicit, manage, and distribute funds to programs not otherwise funded by school district Identify and secure financial resources Develop partnerships with corporations, businesses, nonprofits, and the community Support mission of the local school district Engage the community Create volunteer opportunities Marcia Smith Fleres, NJEFP, Inc.

Why an Education Foundation? Managing in Difficult Times Schools are currently facing many challenges Decreased tax revenues & state funding Taxpayers demanding lower taxes Pressure to do more with less School budgets not passing Higher operating costs Increased mandates, regulations and less flexibility Budget caps Elimination of non-essential programs Marcia Smith Fleres, NJEFP, Inc.

Value of a Local Education Foundation Provides financial support for academic and enrichment programs Enhances educational opportunities for students Builds communication and promotes school district Raises awareness of school needs Increases parent and community involvement Offers the community the opportunity to be a part of the solution…support education. Marcia Smith Fleres, NJEFP, Inc.

Do Education Foundations compete with PTA, PTO, or Booster Clubs? Education Foundations are not intended to replace or supplant parent-teacher or booster clubs. Education Foundations may collaborate with groups to fund teacher grants or special projects Education Foundations tend to focus on academics and not athletics. Education Foundations serve the whole district, not just an individual school, grade level or club Marcia Smith Fleres, NJEFP, Inc.

Building an Education Foundation Identify key people and partners (Be inclusive) Hold a community meeting Create a diverse steering or feasibility committee Determine name, mission, bylaws, and 3 -yr budget Establish Board of Directors/Trustees Legal steps IRS Employer Identification Number (EIN) Incorporate as nonprofit in State of NJ IRS 1023 application for 501(c)(3) exemption Register with NJ Division of Consumer Affairs Marcia Smith Fleres, NJEFP, Inc.

Best Practices of Effective Education Foundations Working board of trustees and governance practices Superintendent & BOE member ex-officio Financial management & adequate resources Alignment with district goals and priorities Programs that resonate in your community Strategic planning: Mission, Vision, Case Statement, G&O Supportive organization structure Executive director – when resources allow Collaboration and partnerships Marcia Smith Fleres, NJEFP, Inc.

What Do Foundations Fund? Classroom, grade or school-wide grants for innovative programs District focused programs Academic scholarships (note of caution) Special programs Special equipment Professional development Alumni websites (i. e. www. Alumni. Channel. com) **Funding should be aligned with priorities of the district Marcia Smith Fleres, NJEFP, Inc.

What is the best source of revenue? Board of Trustees Corporate Grants/Donations Foundations Fundraising Events Fundraising Sales Small Business Individual Donations Begging Marcia Smith Fleres, NJEFP, Inc.

2010 charitable giving Total = $290. 89 billion Source: Giving USA Foundation: Giving 2010 Marcia Smith Fleres, NJEFP, Inc.

Charitable Giving 2010 Marcia Smith Fleres, NJEFP, Inc.

How do Foundations Raise Funds? Individual Donations Direct Ask/Power of 100 …. . Teacher Recognition Alumni “Signature Events” (golf outings, auctions, galas) Corporate Grants and Partnerships Foundation Grants Major Donor “Asks” All donations to the foundation are tax deductible to the fullest extent of the law! Marcia Smith Fleres, NJEFP, Inc.

How are Funds Allocated? Foundation’s funding is aligned with district priorities. The foundation’s Board of Trustees decide which projects/programs to fund. Grant guidelines, policy & procedures are important. Focus on district, school, and/or grade. Teacher/staff grants are funded on a competitive basis. Donors may direct their contributions to specific areas (restricted donations). Marcia Smith Fleres, NJEFP, Inc.

Best Practices of Effective Education Foundations Working board of trustees and governance practices Financial management & adequate resources Alignment with district goals and priorities Programs that resonate in your community Strategic planning: Mission, Vision, Case Statement, G&O Supportive organization structure Collaboration and partnerships Marcia Smith Fleres, NJEFP, Inc.

How to Contact Us NJ Education Foundation Partnership Inc. 609 -310 -1795 info@njefp. org www. NJEFP. org www. facebook. com/njefp The State Affiliate of National School Foundation Association www. schoolfoundations. org Marcia Smith Fleres, NJEFP, Inc.