Having led Valley Streams Zen Sangha in Sacramento CA for over 20 years, I have begun think about stepping back. So last year I initiated a discussion with our Board about planning for the future. Because I had a career and retirement from local government, I have not needed financial compensation from the sangha. The other priest who I share leadership with also had a long career and is financially secure. Since our circumstances are unlikely to be replicated, I proposed to the Board that we needed to begin “funding the future.”
In spring 2023, we held a dedicated Board retreat on this issue with pre-arranged presentations by representatives from two local community foundations. Community foundations are grantmaking public charities that focus on supporting nonprofits in their local area. Among their many functions, they allow nonprofits, including religious nonprofits, to establish funds to carry out their missions. One condition of setting up a fund is that the participating non-profit must irrevocably grant the monies they invest to the foundation. However, the nonprofit can designate itself as its fund’s beneficiary, thereby ensuring sole access to grants from its discrete fund.
Board member concerns focused on the irrevocable nature of investing with the foundation, with some fears that the foundation could withhold a grant to us. As an alternative, the merits of investing with a for-profit brokerage were discussed, but ultimately that idea was dismissed (who would make the investment decisions?). Another concern was a lack of socially responsible investment criteria – neither of the two foundations offered this choice. Some of our money would be invested in the broad stock market.
Ultimately the Board decided open a fund with the larger of the two community foundations, the Sacramento Region Community Foundation. A lawyer on our Board was able to have language inserted in our fund agreement to the effect that grants “would not be unreasonably withheld.” Our decision was to open an “expendable fund” rather than an “endowed fund.” We are a very low budget sangha (approx. $30,000/per year) and were only initially investing the minimum $10,000. An endowed fund would have limited our grants to four percent of principal per year.
The Sangha’s response to the fund has so far been modest, with donations to the fund by only two individuals. We not been very assertive in promoting the fund, but one large future donation has been promised. This year the Board decided to close our long-term savings account and deposit its $31,500 (the surplus of 20+ years) into the fund. Our initial $10K has grown to about $90K in less than one year. A little under $5,000 of that is investment return. We haven’t taken any grants from the fund and don’t plan to until the time comes when we are seeking new Dharma leadership.
According to the Council on Foundations there are more than 900 community foundations around the country. We have found our local foundation staff to be responsive, friendly and easy to work with. This spring we participated in the annual Big Day of Giving sponsored by the foundation, and raised a modest As a fundholder we also get invitations to participate in various educational events on fundraising and planned giving.
I’d be happy to respond to any queries about our process – email to: zenenhare@sbcglobal.net.