Financial crisis hurting local foundations

Published 12:00 am Wednesday, December 2, 2009

By Susan Shinn
sshinn@salisburypost.com
As the stock market has shown losses this year, the giving capacity of local foundations has decreased as well.
With the exception of the Fisher Street Family Theater, no major capital projects are on the horizon in Rowan County.
Representatives of local foundations here say they expect that trend to continue into 2009 and beyond.
Gift money has dried up, says Jim Hurley, who’s chairman of four local foundations.
Robertson Foundation
One of those is The Blanche & Julian Robertson Family Foundation.
Its money is in two funds, according to Executive Director David Setzer ó U.S. Treasury Bonds and a Vanguard Equity Index Fund.
“It’s a conservative approach but it’s worked well,” Setzer says.
Since its inception in 1997, the Robertson foundation has awarded $19.6 million in grants. During that time period, founder Julian Robertson Jr. has contributed an additional $18 million to the foundation’s assets.
“It all comes as a surprise,” Setzer says of the gifts.
But the foundation’s index fund is down 38.5 percent this year.
“Being down 38 percent is a chunk,” Setzer says. “That hurts for the future. We’re inching back, but how much we’ll be able to give out next May is another question.”
By law, foundations must disburse 5 percent of their funds in charitable giving.
“We’ve never given out 5 percent,” Setzer says. “It’s always been more. It’s always been a very generous board.”
Setzer predicts that the market will begin to turn around by the second quarter of next year.
The foundation has recently paid all its obligations for multiyear grants, supporting Rowan Regional Medical Center, Catawba College and the YMCA.
“As a general rule, the board doesn’t like to have extended grants,” Setzer says.
Setzer says that people often stop by his Council Street office to “float a project” with him. As of now, he hasn’t heard of any plans that would require a capital campaign.
“Everybody’s playing close to the chest,” he says.
As for the Robertson foundation, Setzer predicts that it will continue to support the same type projects it always has: arts and culture; children, youth and families; community development; education; history and preservation; public health and safety.
The 2009 application deadline for the Blanche & Julian Robertson Family Foundation is March 31.
Woodson Foundation
Like Setzer, Paul Woodson is taking a wait-and-see approach for the 2009 grant cycle.
Woodson is an officer for the Woodson foundation, and its applications are due Feb. 1.
“Nobody has any idea what will happen” in 2009, Woodson says.
Common sense dictates that there will be less grant money available, Woodson says.
Last year, the Woodson Foundation gave out $900,000 in grants.
Board members, Woodson says, must now be more studious with their disbursements.
“As a board member, I am very concerned with next year in the first or second quarter, that corporations will cut dividends or cut them out.”
Proctor Foundation
Ed Norvell sits on three boards, including The Proctor Foundation, his family’s foundation; the Salisbury Community Foundation; and the St. Luke’s Foundation.
Of the Proctor Foundation, he says, “We try to lessen the impact of any one year by paying out 5 percent.”
The Proctor Foundation’s application deadline in Jan. 31.
He says the foundation’s funds are down about the same as his personal accounts, 25 to 30 percent. “But we’re still giving money away.”
Giving is based on a rolling three-year average, so the years 2007 and 2008 will be included in the coming year’s disbursement figures.
The foundation’s money, Norvell says, is invested in blue chip stocks and bonds.
“These are all good stocks, of course, and they’ll come back as the market increases.”
In addition to his work with local foundations, Norvell has long been involved in fundraising. He’s heading up the only current large capital campaign of the moment, Fisher Street Family Theater, the Piedmont Players’ children’s theater.
As of summer, $2.5 million had been raised toward a goal of $3 million.
Norvell hopes to have construction bids by mid-January. The theater is slated to open in the fall.
“One thing we’ve found is that the cost of construction materials is down,” Norvell says. “Hopefully, that will work to our benefit.”
He adds, “The market goes up and the market goes down, but giving continues.”
Setzer of the Robertson Foundation concurs.
“It’s always a good time to fund raise,” Setzer says. “You can’t wait for the time to get, quote, ‘right.’ ”
Foundation for the Carolinas
Meg Dees of Salisbury is vice president of development at the Foundation for the Carolinas, based in Charlotte.
The Salisbury Community Foundation is an affiliate of Foundation for the Carolinas.
“We’re a little different from other foundations in that we’re a public charity,” Dees says. “Because the markets are down so low, boards are going to have to be very thoughtful in giving.”
Still, in a bad economy, Dees says, “we’re seeing incredibly generous people.”
The foundation, Dees explains, enables donors to give through donor-advised funds.
“We are really seeing the same number of gifts, but they may not be the same amount,” she says.
In the past, many donors have given gifts of appreciated stock. That’s not the case right now, she says.
“I do think it’s going to be a tough time” next year, Dees says. “We’re still seeing grants going out for donor-advised funds. Right now, the need is really high. People who have the ability to give are going to be mindful of that fact.”