CCEF
LINK
California Consortium of Education Foundations
NEWSLETTER
Volume 1
Number 6
October 2003
In This Issue
Starting a Local Education Foundation
Directors and Officers Insurance
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CCEF
PO Box 19290
Stanford, CA 94309
650.324.1653 voice
650.326.7751 fax
Executive Director
Susan Sweeney
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by Caroline Boitano, President, CCEF Board of Directors
The California Consortium of Education Foundations (CCEF) Conference is just around the corner, and we hope to see you there. The conference is the one time each year that CCEF brings together local foundation leaders from communities throughout California. It’s important to us because we put a lot of effort into finding the right speakers to both teach and inspire. It’s important because this is the one time each year when you can participate in as many as three trainings, and attend a full conference. It’s important because we receive hundreds of phone calls during the year asking for just the information that will be available at one of the many workshops that are offered.
CCEF was developed with networking as its central theme. Learning from one another has enormous benefits. The work that you are doing is not academic; it is practical, and sometimes the best way to learn is by talking to people who have been there and done that. People can help by explaining where they are in the development of their LEF, how they got there and what they might have done differently. Sometimes we can learn from the mistakes of others.
We want you to have a chance to hear the stories of other local education foundation leaders. And we want to give you the chance to tell your story as well. One vehicle we use is the Apple Awards. Each year we ask you to share with us your best fund/ friend raising effort, an organizational success, or your best program idea. We ask some of your peers to read these ideas, and we give the Apple Awards to those ideas that stand out. It is our way of recognizing the outstanding work that you are doing everyday. And we hope that these examples of excellence inspire you to continue with the important work you are doing to help the public schools in your area.
Training and Networking – these are only two reasons we hope you will be at the Conference in San Jose on November 6 and 7. We have planned great trainings. But you need to be there to do the networking. See you in San Jose!
CCEF Board of Directors
Caroline Boitano
Consultant
Robert B. Caine
Kentfield School District
Joan H. Fauvre
Pasadena Educational Foundation
Gerald Howard
Interstate Commercial Mortgage Services
Morgan Odell, DPA
Santa Ana Education Foundation
Sally A. Outis
Albany Education Foundation
Wayne Padover, Ph.D.
The California AfterSchool Partnership
Michael Pinto, Ph.D.
Laguna Beach Ed Endowment & Capital Fund
Frank J. Quevedo
Southern California Edison
Charla Rolland, Ed.D.
Stanford University
Lawrence Schwab, Esq.
Bialson, Bergen & Schwab
Emanuel Scrofani, Ed.D.
California School Boards Association
Carol Sigelman
KeyLink Consultancy, Inc.
Lois Swanson
St. Helena Schools Foundation Endowment Trust
Kathy Owyang Turner
San Francisco Education Fund
Susan Wittenberg
The West Contra Costa Public Education Foundation
CCEF Advisory Board
Steven T. Kuykendall
Congressman
Steven T. Kuykendall & Associates
Mary Leslie
Consultant
Gladys Thatcher
CCEF Founder
Ronald T. Vera, Esq.
Law Offices of Gutierrez & Vera
Robert Wood, Esq.
Lafayette Arts & Science Foundation
Newsletter Editor/Designer
Robin Gladstone webmaster@cceflink.org
Scenes from last years conference
Thanks to the following 2002/2003 CCEF Sponsors:
Washington Mutual
Bank of America
Wells Fargo Foundation
Southern California Edison
California Casualty Group
Hewlett Packard Company
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PLEASE GO TO THE CCEF WEB SITE FOR THE LATEST INFORMATION
WWW.CCEFLINK.ORG/CONFERENCE2003.HTM
We hope you are planning to send a team to the “Education Foundations: Their Changing Role in Today's Economy” CCEF Annual Conference in San Jose on November 6-7. A complete schedule for the two days is posted on the CCEF website and will continued to be updated. In addition to in-depth workshops on Thursday, November 6, the morning General Session on Friday will focus on the state budget and economic outlook for education plus ways various education foundations are responding to these new demands. Make sure you are part of the statewide poll and learn what your peers are doing. The afternoon General Session will focus on the importance of local education foundations in civic engagement. Conference sponsors at the time of publication include Washington Mutual, Wells Fargo Foundation, Harris Publishing.
Bring extra newsletters, invitations, project descriptions, brochures, and foundation materials to share at the Idea Fair. CCEF will again host lunch table discussion groups. Topics proposed include: Foundations Focusing on the Arts, Network of Rural LEFs, Working with Your PTA, Developing an Alumni Program, Working with Businesses, Advocacy and Public Policy, RoundTable for Executive Directors. To reserve one of the nine seats at a specific table, contact CCEF before November 5 or check for availability on the morning of November 7.
On November 7 there will be eight skill building workshops. This is a great way to gain new skills and learn about successful LEF programs. Go to the conference website to plan your day. In addition, CCEF will have a special set of meetings for foundations serving different student populations. Meet with other foundations that serve elementary schools/districts, high schools/ districts, and K-12 districts. Do you have a specific issue you would like address at these forums? If so, contact CCEF. Are there specific issues you would like addressed in these forums? If so, let CCEF know. And there will be a special meeting for all alumni of Education Foundation Fundamentals 2002-2003 as we discuss the challenges and successes faced in starting or reviving a local education foundation.
PLEASE GO TO THE CCEF WEB SITE FOR THE LATEST INFORMATION
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STARTING A LOCAL EDUCATION FOUNDATION (TOP) by Susan Sweeney, Executive Director, California Consortium of Education Foundations
Since 1993, CCEF has offered Education Foundation Fundamentals, an intensive one-day workshop for local community groups considering, starting or revitalizing their education foundation. The first workshop for the new 2003-2004 year will be held on November 6 in San Jose as part of the CCEF Annual Conference. An agenda is posted on the CCEF web site.
New this year will be an opportunity for alumni from the 2002-2003 Education Foundation Fundamentals trainings in San Diego, Pomona, and Sacramento to gather and discuss their successes and challenges in establishing an effective foundation.
The Story of the Oakdale Education Foundation’s Beginning
In 2001, Denise Hitch attended Education Foundation Fundamentals at the suggestion of Dr. Wendell Chun, Superintendent for Oakdale Joint Unified School District. During the next year she worked to coordinate the effort within this 9 school district which serves over 5,000 students in Stanislaus County. Denise started by contacting the principal at each school site, sharing the materials from the CCEF workshop, specifically the board member grid. In this way, she gathered a list of parents and involved community members who might serve on the foundation board. She then interviewed the potential board members to gauge their interest. “Very few of the people contacted turned us down. If they could not be an active board member, they could serve as an advisory board member or help in other ways,” Denise recalls. The foundation planning committee met in August 2003 to develop a vision statement and meet with their attorney. The Oakdale Education Foundation was fortunate to have their first year of legal services donated by the legal firm representing the school district! In addition the Oakdale Education Foundation received $8,000 in seed money from the committee which worked to pass the school bond in the previous year. And the “planning committee” continued to communicate with CCEF regarding successful practices and gathered sample materials from other education foundations.
An agenda was set for the first meeting as the group transitioned from “planning committee” to the board of directors. While the attorney offered to draft by-laws and an agenda for the first board meeting, Denise secured the services of a local CPA, who also volunteered his services for the first year. Securing pro bono legal and financial services were critical, contributing not only important services but nonprofit expertise.
August 12, 2003 was the first meeting of the Oakdale Educational Foundation Board of Directors. This impressive group is made up of community members representing commercial development, the State of California, the City of Oakdale, the Chamber of Commerce, and Oak Valley Hospital. In addition there is a CEO from the local credit union, a representative from the court system, a realtor, and some very high powered, talented parents. With twenty-five board members, the Oakdale Education Foundation is considered a large board, but the outreach potential is incredible. “The excitement felt in the room at our first meeting is something I will not soon forget,” recalls Denise Hitch, “ I know that the Oakdale Educational Foundation has been launched with the fuel needed to drive toward a successful and long journey.”
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by Robin Gladstone, Editor, CCEFLINK
Rural Local Education Foundations (LEFs) face difficult financial times. The comparatively greater per-pupil cost of operating rural schools and persistent poverty often present compound the financial pressures that all schools experience in a time of growing need and diminishing resources. Long-term economic decline, which characterizes many rural areas, erodes tax bases, causes population decline, and increases the burden on remaining taxpayers.
Common challenges for many rural communities trying to develop and sustain local education foundation programs include:
There are fewer private partners. Rural programs do not have the same number or variety of local businesses and nonprofit organizations in their geographic areas that can partner with or support their program. Moreover, the partners that do exist in rural communities often have fewer resources at their disposal.
They have a limited tax base. Many rural communities currently face economic hard times due to a variety of factors, including the declining number of family farms. Young people often depart rural communities to find jobs, leaving behind an aging population.
Transportation costs can be high. Rural communities tend to be less densely populated and spread over large geographic areas. The lack of a public transportation infrastructure and the long distances between school sites and children’s homes increases transportation costs compared to urban and suburban locations.
There may be limited access to technology. Many rural communities have limited access to the infrastructure needed to support access to the Internet and other telecommunications. For example, high speed internet access is now available in most of urban California but many rural areas are still waiting.
Many rural communities struggle to find high-quality staff for education programs. In areas with low population density, recruiting and training staff and providing professional development opportunities can be difficult.
There are fewer resources available to support systems change. Limited resources often means that rural communities have fewer formal supports to draw from for community organization and advocacy.
Successful efforts to sustain local education foundation programs in rural communities share a number of elements:
They have broad community support. An asset in rural communities is that everyone tends to know everyone else. Leaders of successful programs take advantage of these connections. They use every opportunity and tool to persuade the community about the importance of education, including mailing newsletters periodically, giving updates at community forums or civic group meetings, or using parents as program advocates and spokespersons throughout the community. Programs with broad support often find that community members will rally if the program is at risk of losing resources.
They have dynamic leadership. Sustainable programs in rural areas often have a leader or group of key people who are determined and relentless. They think creatively and strategically about places to look for support focusing their efforts on traditional as well as nontraditional avenues.
They capitalize on community strengths. Capitalizing on community strengths embodies a mindset that resources do exist in a particular rural community, but not always in the ways people traditionally think of resources. They do not presume their program’s small size or remote location will keep it from securing funds. They find ways to promote the benefits of their unique situations and circumstances. For example, the small size of rural communities enables frequent communication with nearly all local stakeholders. Such communication is an important way to establish broad support in rural communities and can be a challenge for programs in more urban communities. In addition, rural leaders are more likely than urban leaders to know the specific needs and unique resources of the community; in many larger communities it is often necessary to conduct a needs assessment or resource mapping effort to understand community needs and capacities.
They forge partnerships. Rural areas often have only a few service providing organizations, which can make turf battles especially prevalent and difficult to overcome. Finding ways to work together, networking and sharing information with other organizations in the local community can be even more important than in urban areas.
(To be continued)
In part two of Rural LEFs, Local Education Foundation leaders will talk about what has worked in their rural location.
The Sierra Nevada foothills
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D&O... YES OR NO? DO LOCAL EDUCATION FOUNDATIONS NEED DIRECTORS AND OFFICERS INSURANCE? (TOP)
One of the toughest issues that local education foundations have to face is the question of whether to purchase directors and officers (D&O) insurance that protect board members--and even the organization itself--from certain types of lawsuits. Misunderstandings about the liability of board members, as well as the scope of the coverage itself, only serve to complicate matters. To help your decision-making, here are some well-established guidelines that each board can use to decide about purchasing D&O insurance.
Is it worth the cost?
The primary question that LEFs must consider is if D&O insurance is really worth the cost? In this respect, think of a D&O policy like an airbag in a car: it’s value lies in what it can do in certain uncommon circumstances that we all hope to avoid. Just as most drivers will never suffer a head-on collision in which the airbag would inflate to save their lives, most boards will never be sued in a way that can activate a D&O policy. But if they are, the coverage can prevent financial ruin of the directors and the organization. Furthermore. Just as a car with an airbag only on the driver’s side provides no special protection for passengers, traditional D&O policies that cover only claims against directors leave the LEF itself vulnerable to financial loss. Exclusions and narrow policy language can also limit the value of a policy. Consequently, the process of deciding whether to buy D&O insurance should include an inquiry into the scope and features of its coverage.
Here are some things to take into consideration before making a decision to purchase D&O insurance.
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The willingness of board members to risk personal liability
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The nonprofit’s ability to indemnify individuals
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The organization’s financial resources to defend itself (and if necessary pay a settlement or judgment)
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The ability of the organization to reduce the likelihood of a claim through effective risk management
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The anticipated likelihood and expense of a claim
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The cost of coverage
Can Organization Size Affect the Decision?
For large organizations with substantial assets, the question to purchase D&O insurance differs little from the decision to purchase general liability insurance. For smaller organizations that lack such assets, however, the personal liability of individual board members to financially disastrous claims must be considered. In some cases, the state’s volunteer protection statute shields them, or their own insurance may be adequate.
Some board members and organizations may prefer to rely on an attorney’s offer to provide free legal services if ever needed. Since defense costs are a substantial part of D&O claims, such an offer can reduce risk. Even so, the variety and complexity of claims that may be filed draws into question the capacity of an attorney to provide an adequate defense. A pro bono offer from an entire law firm would be more preferable.
Will Insurance Invite Lawsuits
One of the most common reasons for not purchasing D&O insurance is the belief that doing so invites lawsuits. Similarly, an organization may be less cautious if it is insured. While there is some truth to both of these observations, neither should be used as the determining factor in obtaining D&O coverage.
Regardless of whether a board purchases D&O insurance, it has an obligation to reduce the likelihood that the organization’s operation will cause harm and spawn lawsuits. Purchasing insurance is just one element in a comprehensive strategy that includes board training, risk management and indemnification that enables the board members to serve without jeopardizing the assets of the organization or themselves.
So, what’s the final answer about purchasing D&O insurance? It depends. Each LEF should analyze its operations to determine what D&O coverage would provide for itself and its board. After you figure out what such a policy would provide, then you can decide whether the coverage is worth the cost. If you have any doubts, obtain the assistance of legal and insurance professionals who specialize in this field. They can assist in the decision making process and provide a comfort level to the final decision.
This piece was prepared with the assistance of the Nonprofit Risk Management Center, 1130 Seventeenth Street, NW, Suite 210 Washington, DC 20036 Phone: (202) 785-3891 Fax: (202) 296-0349. NRMC publishes “D&O: What You Need to Know” a valuable resource on nonprofit directors’ and officers’ liability insurance.
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MEET THE BOARD–WAYNE PADOVER (TOP)
Education foundations serve as a catalyst, engaging every segment of a community around its children. As a superintendent I have experienced first hand the value of local education foundations in rural, urban, and suburban communities,” these words communicate Wayne Padover’s strong belief in the value of local education foundations. Currently, Vice President of the California Consortium of Education Foundations (CCEF), Wayne was instrumental in the development of, and continues to chair, the Consortium’s one day training “Education Foundation Fundamentals.” Wayne’s special focus has been on helping local education foundation leaders to understand the political environment in which they operate and to look for opportunities to work with others.
An administrator for over twenty years, Wayne now serves as Senior Consultant for the California AfterSchool Partnership. Composed of the California Department of Education, the Secretary of Education of the Governor’s Office and the Foundation Consortium, the AfterSchool Partnership’s mission is to develop outstanding after school programs throughout the state. As Wayne is quick to note, many local education foundations are actively involved in after school programs. “Local education foundations are uniquely suited to this role,” according to Wayne, “Working with the district and outside agencies, local foundations often provide partial funding and are able to gather other partners – businesses, nonprofits, and individuals – to provide this important extension of the school day. After school programs need to happen. Children need to be given opportunities to become successful and well rounded in a safe environment. It is a win-win situation for everyone.”
Wayne’s focus on collaboration and creating an environment where everyone can win was instrumental in the establishment of Pleasant Valley’s “Wine Tasting Cruise” which earned a CCEF Apple Award in 1998.
With a doctorate in educational administration from the University of Oregon, Wayne has written journal articles and spoken at professional conferences on the development of education foundations. Several of Wayne’s articles are posted on the CCEF web site under resources.
Passionate about foundations as educational partners, Wayne states,“ CCEF is unique in its role as a statewide nonprofit serving as a convener and supporting children at the local level by bringing a wide range of groups together. With additional funding, CCEF will be able to be able to provide more specialized services to LEFs at all stages of development.”
A native New Yorker and avid San Francisco Giants fan, Wayne has lived throughout California. He now resides in Encino with his wife Donna.
Wayne Padover
FROM OUR READERS
We would like to hear from our readers about what you like—and what you would change—about this or any other issue of CCEFLINK. Click here to send us your comments for publication in the next issue of CCEFLINK.
CCEF
PO Box 19290
Stanford, CA 94309
650.324.1653 voice
650.326.7751 fax
A big thank you to Washington Mutual, Inc.
for sponsoring this newsletter.
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