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National Standards for U.S. Community
Foundations
Tipton County Foundation in Top Philanthropic
Tier Nationally
Local Organization Meets Rigorous Standards for
Quality and Accountability
Tipton County Foundation is
being recognized for having organizational and financial practices that are in
accordance with the Ethical and Operational Standards for Indiana Community
Foundations. Leaders of the Indiana community foundation field created the
Standards in 2000 to aid community foundations in establishing legal, ethical,
and effective operational practices that would demonstrate the foundations’
transparency and financial responsibility in light of the increased public
scrutiny of foundation practices. In addition, Standards were developed to
distinguish community foundations from other philanthropic vehicles, build the
capacity of community foundations to carry out their missions, and assist the
field with self-regulation in a manner viewed positively by the Internal Revenue
Service.
In order to achieve
Confirmation of Compliance with the National Standards, community foundations
must undergo an extensive review of their organizational and financial policies
and procedures. The review is performed by trained, experienced community
foundation practitioners, coordinated through the Indiana Grantmakers Alliance.
Indiana community foundations may choose to go through the national review
process or a similar process specific to Indiana to demonstrate compliance with
Ethical and Operational Standards for Indiana Community Foundations. A community
foundation that satisfies the Indiana standards is automatically confirmed in
compliance with the National Standards as well.
The Tipton County Foundation has met the nation’s
highest philanthropic standards for operational quality, integrity, and
accountability. The notice comes from the Council on Foundations, a national
professional association based in Washington, D.C.
“This is similar to the Good
Housekeeping Seal for community foundations,” said Steve Gunderson, Council on
Foundations president and chief executive officer. “It says that Tipton County
Foundation has demonstrated a commitment to operational quality, integrity, and
accountability.”
The National Standards for U.S. Community
Foundations Program requires community foundations to document their policies
for donor services, investments, grantmaking, and administration. With over 200
community foundations already confirmed in compliance nationwide, the program is
designed to provide quality assurance to donors, as well as to their legal and
financial advisors.
“This is critically important to our donors,” said
Tom McKinney, Tipton County Foundation board chairman. “When people make a
charitable bequest, establish a fund, or set up an annuity, they are putting
their trust in us. They are counting on us to manage the investment wisely,
honor their charitable wishes, and, in some cases, provide lifetime income to a
loved one. The National Standards confirmation says our house is in order.”
Tipton County Foundation offers a range of
charitable funds, allowing donors to advance a cause such as education or the
environment, support an individual organization, provide flexible support for
community needs, or recommend individual grants. In addition to affirming the
organization’s philanthropic services, the confirmation validates Tipton County
Foundation’s grantmaking practices for the nonprofit community.
“Some say it’s easier to create wealth than to give
money away wisely,” said McKinney. “There’s some truth in that. Grantmaking is a
lot like investing… we need to assess risks, weigh potential gains, diversify
assets, monitor performance, and operate fairly. When you see the National
Standards Seal, you can be assured that we’re committed to meeting the highest
standards for grantmaking as well.”
Intended both as a blueprint
for internal organizational development and as a tangible set of benchmarks for
external assessment of performance, both the Indiana Standards and the National
Standards address six key areas of community foundation operations:
-
Mission, Structure and Governance, including standards
defining board accountability, compensation, independence, fiduciary
responsibility, and representation of the community.
-
Resource Development, including parameters for
administration of funds, disclosures to donors and commitment to building
long-term resources for varied community issues and causes.
-
Stewardship and Accountability, covering prudent investment
and management of funds, transparent record-keeping, use of funds for their
intended purpose, annual audits and public availability of financial
information, including standards related to due diligence and community
responsiveness.
-
Grantmaking and Community Leadership, including standards
related to broad and open grantmaking programs, due diligence and responsiveness
to changing community needs.
-
Donor Relations, encompassing guidelines for informing,
educating, and involving donors in responding to community needs.
-
Communications, including openness to public scrutiny and
frequent communications about activities and finances.
U.S. community foundations
serve tens of thousands of donors and administer more than $39 billion in
charitable funds. Of the nearly 700 community foundations in the United States,
over 500 have pledged to comply with the National Standards. These community
foundations represent foundations from across the nation and the size of their
assets range from the smallest to the largest in the field. Currently, compliant
community foundations represent over $9 billion in assets, or about 28% of the
field.
According to its president, Frank M. Giammarino,
“Everyone can be a philanthropist through the Tipton County Foundation, a
nonprofit public charity established in 1986 to serve donors, award grants, and
provide leadership to improve the quality of life in Tipton County, forever.
Contributions are tax-deductible under sections 501(c)(3) and 170 of the
Internal Revenue Code.”
The Indiana Grantmakers Alliance is a membership
organization of grantmaking staff and Board members. They are dedicated to
advancing philanthropy in Indiana by promoting legal, ethical, effective, and
efficient grantmaking. In 1990, Lilly Endowment, Inc. announced the GIFT
(Giving Indiana Funds for Tomorrow) Initiative. GIFT was created to help
establish and strengthen Indiana community foundations through challenge grants
and technical assistance. Currently, over 90 community foundations and affiliate
funds provide philanthropic resources for each of Indiana's 92 counties. The
technical assistance component of this initiative is housed at the Indiana
Grantmakers Alliance.
The Council on Foundations is a Washington,
D.C.-based nonprofit membership association of more than 2,000 grantmaking
foundations and corporations, with assets totaling more than $280 billion. The
Council provides the opportunity, leadership, and tools needed by philanthropic
organizations to expand, enhance, and sustain their ability to advance the
common good.
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Last modified:
Friday, August 28, 2009
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