The Cleveland Foundation

By Holly Johnson

Graduate Student, Grand Valley State University

Definition

The Cleveland Foundation is a community foundation located in Cleveland, Ohio. It has been in existence for over 90 years. It is one of the largest community foundations in the nation with assets totaling over $1.633 billion. They have distributed over $1 billion in grants to the Greater Cleveland area since 1914 (A Billion Dreams, 2005).

The purpose of the Cleveland Foundation is to be a strategic grant maker in Cleveland, a community leader of philanthropy and to build their endowment for the betterment of their community today and for future generations (Richard Batyco, personal communication). The Cleveland Foundation’s grant making areas of impact are Arts & Culture, Civic Affairs, Economic Development, Education, Environment and Health & Social Services (The Cleveland Foundation website). They are committed to transformative change for the benefit of the Cleveland community.

Their mission is “To enhance the quality of life for all residents of Greater Cleveland, now and for generations to come, by building community endowment, addressing needs thorough grant making and providing leadership on key community issues” (The Cleveland Foundation, 2004). The Cleveland Foundation is a pioneer in the field of philanthropy. They have had revered leadership and have set many of the standards viewed as a pinnacle for community foundations today.

Historic Roots

The Cleveland Foundation pioneered the community foundation concept. In 1914, Frederick Goff started the Cleveland Foundation. The model that he created over 90 years ago is still widely used today. There are more than 700 community foundations in existence worldwide (The Cleveland Foundation, 2004).

The community foundation model invests their donated assets, thus creating an endowment. Grantable resources are available to assist in the ongoing needs of a dynamic community. The Cleveland Foundation is the largest grant maker in the Greater Cleveland region. In 2004, alone, they granted back to their community $86.5 million (The Cleveland Foundation, 2004). Their assets are comprised of over 800 funds. These funds represent families, individuals, and corporations as well as organizations (The Cleveland Foundation, 2004).

The Cleveland Foundation’s history is full of “firsts.” They were the first community foundation to have a female board member. They also took the first step in having supporting organizations be associated with community foundations. The Sherwick Fund was established in 1973, as a supporting organization of the Cleveland Foundation, with a gift of approximately $13 million (e-mail correspondence with Barbara Compton, TCF, Nov. 29). Supporting organizations are now common and they provide an innovative way for a large gift to benefit the community as well as keep the donors involved in strategic grant making.

Importance

The fact that the Cleveland Foundation was the first organization under the community foundation concept makes them very significant to the world of philanthropy. The role of community foundations has evolved through the years. The Cleveland Foundation has taken a leadership role to proactively encourage partnerships with other funding sources. They encourage collaborative efforts within their community and they work hard to convene and educate for the betterment of Greater Cleveland.

One of the most important relations they have fostered is with the Cleveland theater district. In 1973 Playhouse Square was slated for the wrecking ball. The Cleveland Foundation stepped in and unprecedentedly released funds from their endowment to save this community treasure. They have provided additional grants though the years for restoration and renovation of Playhouse Square (The Plain Dealer). The people of Cleveland are fortunate to have a thriving theater district. They have their foundation to thank.

The Cleveland Foundation is the first community foundation to join Living Cities. This is a national community development initiative that is committed to rejuvenating neglected neighborhoods and making them viable places to live and work. This is an example of their commitment to collaborate for the betterment of our nation (The Cleveland Foundation, 2004).

Community foundations have the ability to be engaged at the local level and focus on the most pressing needs. The Cleveland Foundation has launched a $5 million Arts Advancement Program to help mid-sized arts organizations. They see the importance of increasing access to the arts as well as building public awareness. They also have made a $1 million grant to the “Invest in Children” effort (The Cleveland Foundation, 2004). This initiative supports the youngest community members of Greater Cleveland.

Ties to the Philanthropic Sector

Community foundations are a big piece of the philanthropic landscape. These are the organizations that can make a difference in communities now and into the unforeseeable future. A community foundation exists to be a catalyst and convener for the communities they serve. They take their donated assets, prudently invest them and then give them back in the form of grants. This makes a gift to a community foundation go on giving year after year.

The Cleveland Foundation led the community philanthropy movement and they continue to be a beacon today. Community philanthropy is a way to pool resources and create “a sense of community and civic pride, while responding to the desire to solve local problems locally” (Magat, 1989, p.71). Most all corners of the world are represented by some sort of community philanthropy. The Cleveland Foundation, and Frederick Goff’s vision, has inspired the community foundation movement. Today, community foundations in the United States have a collective worth of over $39.4 billion (Council on Foundations, 2005). The good that they have done and the growth they have experienced in the last 90 years makes looking to their future most exciting.

Key Related Ideas

Endowment is a term that is associated with community foundations. Creating an endowment involves taking donated assets; cash, stocks, life insurance, etc. and prudently investing them. The gains that are generated through these investments – usually 4-5% of the portfolios assets – are then used to give money to community nonprofits that are helping to better their citizens. These invested assets grow over time and additional gifts are secured. This makes a giving vehicle producing income to grant back to the community for generations to come.

Donor-Advised Funds are funds that are given to a foundation by individuals who wish to stay active with their gifts. The money becomes part of the community foundations endowment, but the grantable income is given to nonprofit organizations of the donor’s choice.

Supporting Organizations are separate funds under the umbrella of a larger organization. These are entities that have their own board of directors and grantable money. Their funds are included in the net assets of the larger foundation, but they are governed separately.

Grants are the monies distributed to nonprofits by the endowments of foundations.

Important People Related to the Topic

• Henry Coulb (1865 - 1929) was a wealthy shipping executive. He made a large bequest to the Cleveland Foundation in 1931. This generous gift grew the endowment of the foundation and increased grantable dollars to $250,000. 
  
  
• Frederick Goff (1858 - 1923) was an attorney for John D. Rockefeller (Magat, Richard). He was making plans for his estate and conceived the community foundation method. By doing this, he created an enduring structure that would grow and meet the needs of Clevelanders for years to come. “No discussion of pioneers in community foundations could begin, except with Frederick Goff” (Magat, 1989).
  
  
• Steven A. Minter (1938 - still living) served as executive director and president of the Cleveland Foundation from January 1984 – June 2003. Mr. Minter led the organization with grace and tenacity for 19 years. During his tenure, the foundation grew its assets and kept its standing as one of the countries premier community foundations (Tittle, 2003).
  
  
• Ronald B. Richard (1956 - still living) is the current president and CEO of the Cleveland Foundation. Mr. Richard has a past work history in both the for-profit and non-profit sector.

Related Nonprofit Organizations

• The Chicago Community Trust is dedicated to making the Metro Chicago area a desirable place to live, work and raise a family. They grant to nonprofit neighborhood social-service organizations as well as nationally revered museums and educational institutions. Their assets are over $1.3 billion and the over $63 million that they granted in 2004 went to promote community wellbeing in Chicago. Their website is www.cct.org.
  
  
• Living Cities was founded in 1991 as the National Community Development Initiative (NCDI). They are a partnership of philanthropic, corporate and government investors. They have over $250 million in national funding for inner city rejuvenation. They exist to reclaim abandoned property and rebuild neighborhoods. Their website is www.livingcities.org. 
  
  
• Marin Community Foundation encourages philanthropic contributions to help improve the human condition, embrace diversity, promote a humane society and enhance the community’s quality of life now and for future generations. Their assets as of 2004 were over $1.06 billion and they granted over $52 million in grants. They also secured over $14 million in new gifts in 2004. Their website is www.marincf.org. 
  
  
• The New York Community Trust, at www.nycommunitytrust.org, is the community foundation for the Metropolitan New York area. They have over $1.8 billion in charitable assets that is represented in over 1700 funds. They granted $140 million in grants to the New York area in 2004. The New York Community Trust has been in existence for over 80 years.

Related Web Sites

The Council on Foundations Website, at www.cof.org, is the organization that sets the standards for foundations in the nation. They offer much information regarding philanthropy in the United States.

The Independent Sector Website at www.independentsector.org is an organization that conducts research, publishes timely nonprofit information and strives to strengthen the nonprofit sector.

Guidestar Website at www.guidestar.org attempts to connect people with information regarding the world of nonprofit. Information regarding nonprofits 990 tax form as well as grant making opportunities is available here.

Chronicles of Philanthropy Website at www.philanthropy.com is the newspaper for the nonprofit world. Current trends and developments are explored. This site also offers job postings and noteworthy grants awarded to nonprofits.

Bibliography and Internet Sources

A Billion Dreams: Celebrating The Cleveland Foundation’s 90th Year and $1 Billion in Grants. CD-ROM. The Cleveland Foundation, 2005.

Batyko, Richard. Vice President of Communications and Marketing for the Cleveland Foundation. Phone interview on 20 Oct. 2005.

Council on Foundations. CFSource. Accessed 30 Oct. 2005. www.cof.org/index.cfm?containerID=18&orglink=44.

Magat, Richard. An Agile Servant. Washington: The Council on Foundations, 1989.

The Cleveland Foundation. Your Foundation. 2004 Annual Report.

The Cleveland Foundation. Website. Accessed 29 Nov. 2005. www.clevelandfoundation.org/page1550.cfm.

The Plain Dealer. The Cleveland Foundation – A Billion Dreams. Special Advertising Section of the Cleveland Plain Dealer, June 13, 2005.

Tittle, Diana. A Foundation for Growth. Cleveland: The Cleveland Foundation, 2003.