Foundation grows money for charities

By CANDACE CHASE/Daily Inter Lake

Flathead Community Foundation formed in 2005 with a lofty goal to gather money to grow, then use it to improve the quality of life in the valley.

Our tag line is For the good of the Flathead. Forever, said Nancy Davis, president of the foundation board. I expect my childrens children to benefit from the Flathead Community Foundation.

In just three years, foundation coffers have grown to more than $900,000. According to Davis, the foundation doesnt compete for funds with the charities and community groups it was formed to benefit.

Our primary focus is endowed gifts, she said. If you think of United Way as a checking account for the community, then Flathead Community Foundation is a savings account for the community.

So far, 100 groups ranging from ALERT to Foys Community Forest to the Veterans Food Pantry have received checks from the interest earned by funds set up and managed by the foundation.

From 2005 through 2007, those checks added up to $125,000 reinvested in the quality of life here. Grant amounts varied from $100 to $1,000.

For the first time this year, the foundation has a process in place for 501(c)3 organizations to apply for a share of the money. Davis said nonprofit groups need to submit applications before Oct. 30 for the 2008 distribution.

Weve got money to grant, Davis said.

And thats exactly why the foundation was formed to do for the whole valley what the Whitefish Community Foundation and more than 500 similar groups around the country do in their areas of service.

It started when Davis, a financial adviser with Prudential Financial, met with Joe Unterreiner, president of the Kalispell Chamber of Commerce, and Alan Satterlee of Glacier Symphony and Chorale to discuss the idea.

Their discussion led to a meeting to see if other people were interested in the concept of a Flathead Community Foundation. The turnout was encouraging.

There were easily 60 people at our initial meeting, Davis said.

Next, a board of directors formed to begin nailing together a structure with bylaws, gift acceptance and other policies and a variety of philanthropic funds.

They devised a mission statement:

To enrich the lives of present and future generations by supporting philanthropy in the communities we serve.

Davis and others launching the foundation harbored a strong belief that many people of means in the valley wanted to support the community but lacked the time to personally set up a foundation and research deserving organizations.

Volunteers like Davis set about filling that gap for the Flathead.

It was a tremendous amount of work, Davis said. But I loved it and Ive learned a whole lot.

She said the Whitefish Community Foundation provided much helpful advice. The Flathead Community Foundation benefited from that direction although their founders differed in some significant ways.

Their board members are all significant donors, Davis said. Were more community-service people.

However, each board member of the Flathead group donates money along with copious amounts of volunteer hours. Board members have professions and skills that help build and operate the foundation.

Davis, for example, graduated with a degree in social welfare but took a turn in her career into financial advising. Foundation work appeals to both of her interests.

Here I can use my head for business and heart for charity, she said.

Davis, Unterreiner and Satterlee continue to serve on the board along with Carol Bibler, Andrea Goff, Fred Kellogg, Jeff Lewis, Mark Lorenzen, Kala French Lougheed, Joan Schmidt, John Waller and Connie Peters.

As soon as the foundation got started, donor money followed.

According to Davis, Montanas endowment tax credit with a maximum of $10,000 a year provides a powerful incentive for philanthropy.

Its very significant for planned givers, she said.

The Flathead Community Foundation helps people benefit from the credit by setting up endowment and pass-through funds that fall into four categories:

. The Flathead Fund A general fund that allows board members to distribute money according to the communitys most pressing needs.

. Field of Interest Funds Donor gifts earmarked for a specific charitable area such as the arts, health care, education, social services, historic preservation or the environment.

. Agency Funds Gifts benefiting one or more nonprofits specified by the donor or charities in fields of interest or schools, churches, fire departments or civic projects.

. Donor-Advised Funds These funds dont name a specific charity but allow the donor, his or her family, heirs or others to designate annually how to distribute the money.

According to Davis, the foundations finance committee with advice from D.A. Davidson & Co. invests the money according to an established investment policy.

Recent financial market upheaval has had some impact on foundation investments, but it hasnt been devastating, Davis said.

We manage the money prudently and minimize the exposure to market volatility, she said.

When making presentations about the foundation around the community, Davis said she hears quite a bit of concern about the impact of their efforts on nonprofit fundraising. Instead of competing, she said, the foundation enhances nonprofit revenues by stimulating more philanthropy.

I know theres significant wealth and significant charitable intent in the Flathead Valley, she said. Most nonprofits dont have endowments set up.

Davis hastened to add that the Flathead has always had generous citizens contributing for the good of the community.

She sees the foundation as a vehicle to assist their efforts and encourage others as the valley continues to grow.

Across the country, Davis sees the culture of philanthropy expanding as the result of some well-publicized efforts of people such as Bill and Melinda Gates. The good news is that a person doesnt need billions to help others while getting tax benefits in return.

Flathead Community Foundation wants to spread that news.

Were developing plans for 2009 to have donor education workshops, talking about planned giving and the Montana tax credit, Davis said.

People interested in learning more details about donating or applying for grants may call the foundation at 756-9047 or check out the Web site, www.flatheadcommunityfoundation.org.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com.