Vision and mission

Barbara Diamond

The fledgling Laguna Beach Community Foundations is getting ready to

fly.

More than 40 local charities gathered last week to hear a proposal

to create a foundation that would assist specified local nonprofit

organizations and residents with technical assistance in attracting

donations.

“Tonight is the culmination of one dream and the beginning of

another,” said community activist Michael Pinto.

The original dream was a vision. The new dream a mission -- to get

the foundation up and running.

Pinto, Mary Fegraus, Wayne Peterson and Peter Kote began a year

ago to explore the possibilities of a community foundation created by

and for the people in Laguna Beach. They unveiled the proposal to

potential participants on May 5 at the Laguna Beach Assistance League

Chapter House.

“Cinco de Mayo seems like an appropriate date to start a social

revolution,” said Pinto, president and founder of the Laguna Canyon

Foundation.

The location of the meeting also was appropriate because only

nonprofit organizations can rent it and the timing was right on

point.

A City Council majority the night before had denied a request by

the Cross-cultural Council for financial assistance to maintain the

Day Labor Center on Laguna Canyon Road through the fiscal year ending

June 30. Councilman Wayne Baglin, who voted against the request, said

that that nonprofit organizations that can’t fund their operating

costs should start writing their obituaries.

“Laguna Beach has more than 100 nonprofits, an astounding number

for such a small population -- it’s what makes Laguna so unique,”

said Pinto. “Their biggest focus is dealing with operational needs.”

Donations are the major source for funding operations. An

endowment is a more stable source, according to Pinto.

He knows whereof he speaks.

“In 1986, the SchoolPower board said we raise money every year, we

spend it and we have to start all over again,” Pinto said.

Pinto helped establish the SchoolPower Endowment, which now

exceeds $1.5 million dollars and funds donations. Pinto also

established an endowment with the assistance of Cal State Long Beach

Endowment administrator Kote for the Laguna Canyon Foundation.

Both of those are one-note songs. The community foundation would

be a whole symphony.

Participants need only to have programs or projects in Laguna

Beach or within the Laguna Beach Unified School District and be a 501

(c ) (3) organization, which means donations are tax deductible.

Nonprofits, such as political action committee, that do not file as

501 (c ) (3)s with the IRS would not qualify.

“Many of these organizations are smaller or have a focused

service, such as the Friends of the Laguna Beach Library and the

Community Concert Band, others are larger and include the Boys and

Girls Club, the Laguna College of Art & Design and the Community

Clinic,” said Mary Fegraus, who has been both volunteer and paid

staff for nonprofits.

“We are not promising huge donations, but all the 501 (c ) (3)s

can benefit from Laguna Beach Community Foundation education programs

and technical support.”

Right now, the foundation has no money. Other foundations,

corporations or individuals will be tapped to raise funds in the

initial years of operation. Administrative fees will be set for

pass-through funds and funds under management. A foundation board

will establish an investment policy and a money manager will be

selected.

Donated office space will be sought for at least the first couple

of years to house a part-time director and possibly a part-time

secretary.

The director would need to be knowledgeable about donor programs

and able to initiate a marketing outreach program to increase

community awareness of tax advantages for donors.

Donors to the foundation trust will be offered three choices,

Peterson said. They can donate to the foundation and let it decide

where it goes; donate directed funds, which typically allots 1% to a

foundation for operating expenses; or donate to a specific field of

interest -- such as art or youth and the foundation would select the

specific beneficiary.

Special parameters can be set -- donations to be applied to

start-up programs, existing programs, educational scholarships or

buildings.

“Cash is the preferred option, but we must recognize that because

of tax regulations and the need of an individual to have an income,

“planned giving” has become a profession of its own,” Peterson said.

Planned giving may be a donation of stock, bonds, artwork or real

estate. These gifts can be accompanied by any one of several forms of

charitable trusts, gift annuities, life insurance or other methods

that provide tax benefits to the donor providing a meaningful gift.

“This is the best idea that has happened in town for a long time,”

said Mayor Cheryl Kinsman, who attended the Cinco de Mayo meeting as

an observer.

The meeting tested local interest in creating the community

foundation.

“The intentions are good and it sounds like they going about it in

the right way, but this is brand new to us,” said Gail Waite, who

represented the Laguna Board of Realtors Charitable Assistance Fund.

“We will continue to participate, but we need more information.”

After the opening presentation by the Pinto, Peterson and Fegraus,

meeting participants broke into six small groups, two each to discuss

election or appointment of officers and terms, the mission of the

foundation and distribution of funds.

“We are asking help in fashioning documents to govern this

foundation, mission and vision statements that would describe who we

are and what we are,” Peterson said.

Katie Slattery of the Girls Scouts of America, Fred Sattler of

Ocean Laguna, Laura Stahlberg of Laguna Greenbelt Inc. and Theresa

O’Hare of SchoolPower Endowment volunteered to help refine the input

from the six groups.

“I think this is a good idea, particularly for smaller, less

well-known charitable organizations, even for well-known small

organizations,” said Sattler. “It can help with fundraising and good

technical support.”

Election of a board, selection of officers and establishing

by-laws comes next, proposed for a meeting to be scheduled after

initial paperwork has been completed. The meeting will be open to all

interested organizations.

Pinto said that documents of incorporation as a trust with by-laws

to govern day-to-day operations are being prepared for the foundation

by local attorney Renee Raithel, who has experience working with

foundations, and has made incorporation economically feasible.

Attorney Raithel has requested information on the mission and

vision statements, how officers will be elected or appointed and how

the foundation will distribute donations.

The exploratory committee felt that the response should be

prepared by a majority of organizations that will benefit from the

community foundation. Hence the meeting, to which about 75

organizations were invited to send representatives. Invited

organizations included local groups that support arts and culture,

health, education, social and community services, the environment and

historic preservation.

“I see this an alliance of charitable organizations,” Peterson

said.

For more information, call Peterson at (949) 494-0614.