Volume 4, Number 21 - July 15, 2003
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IN THIS ISSUE
NEWS COVERAGE: FTC settlement stops fraudulent "foundation matching" services
JUST PUBLISHED: Study shows negative 2002 investment returns for foundations; two reports detail Chicago-area giving trends
AT THE COUNCIL: Foundation News & Commentary, FN&C Now win APEX 2003 Awards; sign up for Breaking News
ACT NOW: Register for symposium on philanthropy across generations
ON THE MOVE: Paul Carttar et al. (Kauffman); Timothy B. Wilmot and Joseph A. McCormack (Point); Robin S. Tryloff et al. (Donors Forum); Linda Wood (Haas, Jr. Fund); Andrea Young et al. (Missouri)
"CASH-FREE" GRANTS VICTORY: Yesterday, the Federal Trade Commission (FTC) announced a settlement with Grant Search, Inc., and Grant Pac, Inc., companies that falsely claimed individuals could obtain foundation grants for virtually any reason by using their "foundation matching" services. The settlement puts Grant Search and Grant Pac out of business and provides for almost $300,000 in consumer restitution. Council on Foundations members and the Council's legal team assisted the FTC in its action against the companies and their principals in 2002 by gathering correspondence from victims and materials showing that the company's claims were fraudulent. Read the press release: http://www.ftc.gov/opa/2003/07/grant.htm . Read the judgment (PDF): http://www.ftc.gov/os/2003/07/grantstip.pdf .
FOUNDATION ASSETS DOWN: According to the inaugural Commonfund Benchmarks Study of Foundations, foundation investment returns averaged 8.7 percent net of fees during the 2002 fiscal year. Foundations with assets of $1 billion or more showed returns of 7.7 percent, while foundations with assets of $50 to $100 million reported returns of
10.3 percent. Community foundation returns averaged 8.4 percent, while private/independent foundations had an average return of 8.6 percent. Payout averaged 6 percent; only 16 percent of foundations had changed their spending policies during 2002. The report is based on interviews with 230 private and community foundations. Read the press release: http://www.commonfund.org/Commonfund/Archive/Press+Release/
CHICAGOLAND GIVING: "The reality of the recession is starting to take hold," said Valerie S. Lies, president and CEO of the Donors Forum of Chicago, responding to data revealed by two new reports. "In Perspective" found that Chicago-area grantmakers responding to the survey reported an average decline in assets of 15 percent and expected to give $11 million less during 2003 versus 2002. Among nonprofits responding to the survey, 35 percent had current budgets lower than last year, 48 percent said foundation and corporate giving had dropped and 31 percent reported a decrease in government funding. "Giving in Illinois 2003" analyzes foundation, corporate and individual giving trends by region, type and subject area based on fiscal year 2001 data (the most recent available). Among the findings: assets of Illinois foundations decreased 6 percent between 2000 and 2001, though the number of foundations and corporate giving programs increased by 13 percent. Find out more: http://www.donorsforum.org/news/press_giving2003.html .
AT THE COUNCIL
STILL AWARD-WINNING: Foundation News & Commentary won two APEX 2003 Awards (awards for publication excellence). The magazine was recognized in the categories of Magazines & Journals - Printed Four Color and Columns & Editorials, for Jane C. Nober's March/April 2002 article, "My Lawyer Made Me Do It." (Council members and FN&C subscribers may read it at http://www.foundationnews.org/CME/article.cfm?ID=1818 .) FN&C Now also won an APEX Award, in the category of e-mail newsletters. View the winners' list (PDF) at: http://www.writingthatworks.com/A2003_Win.List.pdf .
FREE NEWS SERVICE: Breaking News is a free, daily e-mail newsletter summarizing the top articlesmostly from national and regional newspapersabout philanthropy. Breaking News is available to Council members only. Subscribe by e-mailing your name, title and foundation name to firstname.lastname@example.org.
MY GENERATION: Generational transitions and varying approaches to giving and volunteering among generations will be explored during the Center on Philanthropy's 16th Annual Symposium, "Taking Fundraising SeriouslyPhilanthropy across Generations." Speakers include Paul Schervish and Randall Tobias. The symposium will be held August 2122 at Indiana UniversityPurdue University Indianapolis. Register or read more: http://www.philanthropy.iupui.edu/conferences.htm .
ON THE MOVE
New staff at the Ewing Marion Kauffman Foundation include: PAUL CARTTAR, chief operating officer; ROB CHERNOW, senior vice president for entrepreneurship; SHARON COHEN, chief communications officer; DAN KINGSTON, chief investment officer; and MUNRO RICHARDSON, director of special projects. Read more: http://www.emkf.org/pages/368.cfm .
TIMOTHY B. WILMOT is the first executive director of The Point Foundation. JOSEPH A. MCCORMACK joined as chairman of the board of trustees. Read more: http://www.thepointfoundation.org/News_resources.htm .
The Donors Forum of Chicago elected board officers and directors who will begin serving September 1, 2003. The new officers of the board are: ROBIN S. TRYLOFF, chair; SUZANNE GOMBRICH, vice chair; LOUIS J. MARSICO, vice chair; TRINITA LOGUE, secretary; and CAROL CRENSHAW, treasurer. The new board members are SUSAN KESSLER, JOSHUA J. MINTZ, CARMEN PRIETO and LAURA WASHINGTON. Read more: http://www.donorsforum.org/news/press_board04.html .
The Evelyn and Walter Haas, Jr. Fund appointed LINDA WOOD senior program officer for its Enhancing Nonprofit Leadership and Governance program.
The Missouri Foundation for Health hired ANDREA YOUNG as program associate, CHRISTINA (TINA) KASMARZIK as budget analyst, SCOTT BECK as communications associate and TEMEKKA CANNON as office assistant.
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last update: 7.15.03