CFO grows affiliate foundation program

Alice Wingo: Affiliates make up nearly one-third of CFO's asset total.

Tyler Gunlock: Forming an affiliate foundation is a big step for Ash Grove's growth.

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A trio of towns, including nearby Ash Grove, were added in recent months to the growing affiliate network of Community Foundation of the Ozarks Inc.

The Springfield-based nonprofit’s affiliate foundation program, which surpassed 50 participants last year, is almost 30 years old, accruing nearly $115 million in assets as of this month, officials say. According to CFO data, over 15 of the affiliates are within a 50-mile radius of Springfield and have distributed grants in local communities in excess of $26 million since 1993 and hold more than $39 million in assets.

“They are an important part of CFO’s mission and also our portfolio,” said Alice Wingo, CFO’s vice president of affiliates, noting the nonprofit’s assets were at $310 million at the end of fiscal 2020 in June.

The affiliates function as mini-CFOs, with independent boards and governance, set up across southern and central Missouri. Cabool is the most recent to join, forming its community foundation last month, and it was preceded by the Ash Grove Area Community Foundation and the Nevada/Vernon County Community Foundation in 2020.

Wingo said assets for affiliates range from roughly $200,000 up to over $13 million. Joplin, which is the largest in population of the 52 regional affiliates, also has the largest asset total of $13.3 million, she said.

“With our 52 affiliates, our board members are the face of their community. They’re the ones who know the needs in their community,” Wingo said of the all-volunteer boards of directors that oversee assets and grant distribution. “Although there are a lot of similarities from community to community, each hometown looks different.

“At CFO, we provide technical assistance, training, back office support and money management. We provide all the support that allows them to have a community foundation locally,” Wingo said.

Setting a model
Nixa became CFO’s first affiliate in 1993. The Christian County city wanted the CFO concept locally but didn’t have the tools and expertise to make it happen, Wingo said. A series of conversations followed, establishing the affiliate foundation program model that’s been replicated dozens of times since.

“They need to make a commitment that they want to have a community foundation and really believe that’s going to bring assets and resources to their community,” she said, noting $30,000 must be raised to establish a permanent endowment.

The prospective affiliates must sign an agreement and establish a nine- to 11-person board of directors made up of community members. CFO asks that bylaws be adopted.

“It gives a structure to their board. They can modify it, but we do have a standard set that we start with,” Wingo said. “In those bylaws, we do encourage having at least two officers, term limits, when to have annual grantmaking rounds because we want to make sure they’re giving back to the community.”

The $30,000 goes into an unrestricted grantmaking fund. Affiliates are encouraged to invite eligible community agencies, such as 501(c)(3)s, churches, schools and municipalities, to apply for grants. Recipients are selected by a committee of community representatives.

“That really sets up a long-track sustainable fund that will continue to grant and grow as the years pass,” Wingo said.

The Nixa Community Foundation has given roughly $2.8 million back to the community during its 27 years. Its asset balance was over $2.5 million at the end of fiscal 2020.

Sharon Whitehill this month started a three-year term as president of the Nixa Community Foundation Board of Directors. She’s held various seats on the board since 2003, when there were around 10 funds managed.

The Nixa foundation has grown to nearly 60 funds available to accept donations from individuals, businesses and community organizations to then distribute the money. Whitehill said most are designated for scholarships or have restrictions for their distribution. Grants are only distributed from the unrestricted funds.

“We have between $43,000 to $45,000 each year to give out,” Whitehill said. “We give out more than the $45,000 a year, but that’s only unrestricted funds. The rest of them are designated funds or scholarships.”

A lot of the grants are small, as little as $200, she said. But a number of $10,000 grants have been distributed over the years, she said, including one to the Nixa Police Department to purchase a vehicle for its Drug Abuse Resistance Education program. Other recent grant recipients include Children’s Smile Center and Nixa Parks and Recreation.

Get in line
In Ash Grove, forming the town’s community foundation was an 18-month process, said Tyler Gunlock, the organization’s first board president. The Ash Grove Area Community Foundation expects to make the first presentation of grants from its unrestricted fund this fall.

It took around a year to raise the $30,000 for the permanent endowment, he said, adding the local affiliate was given another $30,000 in a grant last year from the Missouri Foundation for Health. The grant provides $6,000 annually for five years to support grantmaking for public health needs related to issues such as low income, access to education and unemployment.

The Ash Grove affiliate has assets over $1.1 million, but that isn’t because of rapid fundraising within the community, Gunlock said. CFO already had managed funds designated for Ash Grove.

Gunlock said forming the affiliate is a significant action for the town of roughly 1,500 residents.

“From the beginning, we recognized we weren’t going to be able to give away $1 million a year,” he said. “But if we start something, then maybe in 10 years or so down the road we’ll be able to significantly impact some things.”

While CFO’s Wingo said the nonprofit doesn’t actively recruit towns for its affiliate foundation network, it’s always open to conversations. She said at least four communities are seeking to become a CFO affiliate in the next year or two, declining to identify them. The number in the program has no set limit at this point – so long as the communities raise the $30,000 seed capital and form a board of directors, Wingo said.

“We have really focused on helping the affiliates that we have be more successful. We’d almost rather go deeper than broader,” she said. “We have not sat down and really talked about a cap yet, but we’ll probably need to do that at some point.”