"Reproduced with permission from the July 2002 issue of School Leader, Copyright 2002, New Jersey School Boards Association"

By Dr. Viktor J. Joganow, Ed.D.

Education Foundations - Beyond the Bakesale

"Take the obvious, add a cupful of brains, a generous pinch of imagination, a bucketful of courage, and bring to a boil."

Bernard Baruch

Bernard Baruch's recipe can apply to any possible opportunity. However, it is this same set of ingredients that many educators and community members have used over the years to establish local education foundations with varying degrees of success. This article will review the necessary steps required to formulate a foundation, formalize a structure, market it effectively, and insure that it is sustainable well beyond the original enthusiasm of the founding group.

Should my district establish an education foundation? The answer to that question is a resounding, "Yes!" especially if your district can benefit from additional funding for education-related projects that fall beyond typical budgetary expectations and constraints. In addition to generating revenue from grants, corporate and private sponsorships, a foundation will promote positive public relations. Taxpayers will see the district exploring creative strategies outside the exclusive reliance of tax support.

The research and resources on education foundations were minimal in 1992 when a small contingent from the community of Totowa and the Totowa School District began to establish a local education foundation. The end result was the creation of the Totowa Education Foundation, which has continued to flourish for a decade offering programming support for students and community members. However, history indicates that very few foundations experience that type of longevity.

In the early nineties, there were no more than a handful of established foundations in the entire state of New Jersey. Since then, thousands of foundations have been established across the United States and Canada. I can remember presenting foundation start-up workshops for the Association of School Business Officials in Seattle and Vancouver, and for the National School Boards Association in San Francisco and Anaheim, where hundreds of district representatives were interested in starting a local education foundation. Clearly, school districts were experiencing funding shortages across the nation and began searching for creative revenue-generating alternatives.

Today, we have the California Consortium of Education Foundations, which is a statewide nonprofit organization dedicated to improving public education by building the capacity of the 400 local education foundations. The California Consortium serves as a facilitator and assists communities and school districts in creating local foundations. A similar organization exists in Florida and is called the Consortium of Florida Education Foundations. This consortium has a comparable mission. In addition to serving as an advocate for foundations, the Florida organization received $1.3 million in matching state funds to increase local programming. Unfortunately, there is no such organization promoting local foundations in New Jersey.

Developing a Mission Statement The most important aspect of establishing an education foundation is to find a core of citizens who are interested in developing a consensus on the mission for the organization. This group of individuals should comprise your steering committee and represent various segments of the community. All too often the energy and enthusiasm of a few people will carry the organization through its infancy. Unfortunately, as that enthusiasm wanes or there are personnel changes within the foundation, it becomes very apparent that the organization lacks purpose and structure. As a result, this entity will lack staying power and not be able to sustain itself.

The mission for any foundation should be broad-based in an effort to generate support from various constituencies. In the accompanying sidebar, samples of mission statements and a statement of purpose illustrate this wider ranging philosophy.

Creation of a Steering Committee This initial step is critical in fostering an effective planning environment in which the committee members will perform the following tasks:

• Establish a focus group to assess the potential of a community to support this third party nonprofit entity.
  
  
• Gather information about other foundations in similar communities. Ask questions of those people who experienced difficulty and even failure in promoting a foundation, in an effort to avoid those same pitfalls.
  
  
• Define the mission and vision.
  
  
• Brainstorm programming and fund-raising initiatives, thereby establishing an early community presence.
  
  
• Market the proposed foundation effort at PTA and Home and School meetings, at the Rotary, and other civic support organizations, and through the local press in an effort to generate enthusiasm and support for the initiative.

Formal Organization The steering committee members can serve as the initial core of the foundation's board of directors or trustees. This board must reflect a true cross section of the community and should include members from the local parent-teacher organization, community business leaders and employees from the school district. Securing formal recognition and support from the board of education is important. Representation from the board of education in a non-voting capacity is also a possible consideration.

The development of the bylaws, preparation of the incorporation papers, and the filing of the 501(c)(3) application for tax exempt status can be completed by members of the committee. However, the use of an attorney and/or an accountant will greatly facilitate this process. Obviously, having an attorney and an accountant on the board would be extremely helpful during these developmental stages of the foundation.

Tax Exempt Status Any new foundation can only qualify for provisional 501(c)(3) status. Consideration for permanent approval will not occur until the foundation has been functioning successfully for a period of three years. First, the foundation needs to secure a taxpayer identification number from the Internal Revenue Service and complete the 1023 Application for Recognition of Exemption under section 501(c)(3) of the Internal Revenue Code. Forms ST5 and REG1 must be obtained from the state of New Jersey (609-292-5994) and they, along with the articles of incorporation, bylaws, and the IRS determination letter need to be forwarded to the following address: Exempt Organizations, Tax Services Branch, NJ Division of Taxation, 50 Barrack St., CN269, Trenton, NJ 08646.

Volunteer Staffing In its earliest stages, the foundation will have to rely on volunteer staffing since there isn't enough funding to support paid personnel. As the foundation grows in the areas of programming and funding, it is possible that part-time or even full-time paid clerical and other administrative personnel may be added. However, it is important to keep administrative costs to a minimum if a foundation is to be successful in generating public financial support.

Programs The scope of programming offered by foundations is only limited by the creative potential of the organization's members. Foundations may provide enrichment programming for students during or after school. For example, the recently incorporated Passaic Valley Regional High School Education Foundation sponsored a highly successful summer performing arts program for over 300 students in grades four through twelve. The culminating activity by the high school students in the program was the presentation of Jesus Christ Superstar for the community.

Some foundations have offered academic scholarships and evening programming for senior citizens and other community members. An important aspect of the program offerings is that they should be presented in the facilities of the local school district to draw a linkage between the foundation, the school district and the community.

Marketing The foundation needs to put a strategy together to market itself and its mission to members of the community and the business sector. Extensive news coverage is critical to promoting a positive image for the foundation, and in assisting with fund-raising initiatives. Reporters should be contacted on a regular basis to provide coverage of new programming activities. As a result, the community will be fully informed of all the positive aspects of this organization and be more inclined to support the foundation.

Funding The foundation's board members need to decide what fundraising initiatives are worth pursuing. Since the organization's staffing will be comprised mainly of volunteers, it is important not to assume so many activities that the board members will be completely overworked. The board members can reach out to other community members to assist with the fund raising based on their interest and expertise levels. For example, a group of golfers interested in promoting the foundation could chair a golf outing, which can be extremely profitable. Other members could organize an art auction or a fashion show. However, a recommended strategy would be to establish an annual sustaining drive that would target school alumni, local business and corporate support on a regular and consistent basis.

Summary Bernard Baruch's quote at the beginning of this article highlights the importance of having "a generous pinch of imagination" and "a bucketful of courage" to bring an opportunity to fruition. The original steering committee and the subsequent board of directors or trustees need to be creative and willing to take risks in creating a successful foundation. Researching the creation of other foundations will establish a sample planning strategy that in part or in its entirety can be customized for a specific community. However, understanding one's community and school culture is very important in insuring a successful foundation through all of its developmental stages.

Committed volunteers expressing a constancy of purpose on behalf of the foundation will establish a breeding ground for success in what will be a major addition to both the school district and the community.

Viktor J. Joganow, Ed.D. is the superintendent of the Passaic Valley Regional High School District in Little Falls, New Jersey. He is also the executive director of the Passaic Valley Regional High School Education Foundation, Inc.

Contributors

Dr. Rene Rovtar, Morris County superintendent of schools, founding member and past corporate agent of the Totowa Education Foundation, Inc.

Ruthann Quinn, Roxbury Township school business administrator/board secretary, past corporate agent of the Totowa Education Foundation, Inc., and current co-treasurer of the Passaic Valley Regional High School Education Foundation. Inc.

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