2008 Honorable Mention: Endowment Fund Advisory Board

Program Goal

The Junior League of San Jose's Endowment Fund was established in 1992. By 2005, the Fund had increased by 60 percent, but, as the rate of growth slowed, the League decided that a strategy was needed to increase the Fund, with a target of $1 million by 2010. This would strengthen the League financially and boost its ability to weather future economic fluctuations.

Program Description

A task force of Actives and Sustainers determined the best approach to improving the Fund's performance would be to establish an Endowment Fund Advisory Board. The Advisory Board began operating in 2005 with the approval of the League's Board of Directors. The intent was that the Advisory Board would handle day-to-day management of the Fund, making recommendations to the Board of Directors. The Advisory Board met with the Junior League of Palo Alto-Mid Peninsula to gather information on the composition and activities of endowment fund advisory boards, and consulted several other Leagues of similar size whose funds had demonstrated continual growth: Cincinnati, Denver, Houston, Boca Raton, San Francisco and Charlotte. Information on planned giving was obtained from Stanford University, the University of California at Santa Barbara, Catholic Charities and the San Jose League itself.

The Advisory Board focused on the marketing and growth of the Fund. It reviewed the investments, the number and types of gifts made to the Fund, ways of giving, drawdown policy and practice, donor recognition and the Fund's connection to the League's 40th anniversary celebration. A strategic plan was created with the Program Goal of strengthening the Fund by increasing the principal through contributions and return on investments. A portion of the income would be distributed annually to the League's community program. Investment guidelines and distribution guidelines and formulas were developed in consultation with the League's investment advisor, resulting in an Asset Allocation Model that was approved by the Board of Directors.

A fundraising goal of $100,000 was set for 2006-2007 in a "40 for 40" matching gift campaign that commemorated the League's 40th anniversary and targeted League members as well as prospective external donors. Early contributions were leveraged to secure matching gifts from later donors.

Results/Outcomes

From 2006 to 2007, the "40 for 40" campaign exceeded its $100,000 goal by $67,000, more than 50 percent, and raised the total invested to $700,000. Success was attributed to increased contributions from League members (up by 22 percent) and to matching gifts from corporations and several League members. The names of the "40 for 40" donors were inscribed on a plaque that was presented at the 40th anniversary celebration.

Evaluation

The Advisory Board continues to track the Endowment Fund's balance and annual campaign goals. It also monitors investment and distribution guidelines as well as the marketing strategies targeting Active and Sustainers, who remain the primary donors.

Impact

The first distribution from the Fund has been made to the League community program. Actives and Sustainers continue to contribute to the Fund and support the strategies for its growth. A new campaign, the "March to a Million," is planned to fulfill the original Program Goal of raising the principal to $1 million by 2010. As the League shifts to a more-sophisticated culture of giving, the Fund's contribution to the community program and the "40 for 40" plaque, which now hangs in the League office, serve to educate members about what the Fund can do for the League, how it benefits the community, and the ways in which they can continue to contribute to its growth. The success of the Asset Allocation Model led to its being presented, to high praise, at an annual meeting of investment advisors to nonprofits.