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School Board Journal
May / June, 1996

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Survey reveals characteristics
Successful school foundations

By LAWRENCE C. MORTIER and LAWRENCE J. DENNIS

A closer look at the established LEFs may prove worthwhile for school board members, educators, and involved citizens who are looking for ways to optimize the effectiveness of their own foundations, or those contemplating forming their own LEF.

Local education foundations are fund-raising entities organized independently of the school district, and operated as not-for-profit corporations under state law. They are established to raise additional funds to improve the quality of the education in the schools. Unlike booster groups formed to support extracurricular activities, these LEFs provide funds for curriculum development, creative teaching initiatives, computer hardware and software, teacher recognition, special project grants, scholarships, guest speakers, and a variety of "extras" to enrich the education of the students in the district.

Following are some of the highlights of our research.

Income: Annual income reported by Illinois LEFs for 1993-94 ranged from $200 to a high of $163,000. One foundation reported an asset base of close to a half million dollars. Most LEFs in the state of Illinois (77 percent) held less than $50,000 in assets, and generated an average of $21,352 in contributions during fiscal year 1993-94.

Local circumstances and effective fund-raising strategies affect LEF success. However, LEFs do not have to generate a large number of contribu- tions to be effective. Modest gifts can produce a host of positive results that, perhaps surprisingly to the uninitiated, reach beyond the opportunities money can offer.

Benefits: One of the greatest benefits of LEFs is increased community participation and involvement in the local schools. LEFs improve attitudes about the schools and promote community relationships and business-school partnerships. It was encouraging to discover that in this age when public schools are being criticized for their inadequacies and when teachers feel increasingly beleaguered by national criticism, LEFs play a significant part in bringing all parties together.

Board of directors: The size of foundation boards of directors runs generally from five to fifteen members, with every effort made to get a representative cross-section of the community. A larger board increases the potential for networking. A balance must be achieved so that the board is large enough to assure diversity yet small enough to work effectively. Few Illinois LEFs have any paid staff.

Expenses: Operating expenses of most of the foundations are less than $3,000 per year. All LEFs surveyed use the voluntary labors of their own board members and other interested parties to handle accounting, information management, asset management, and gift recording. Operating costs in any charitable fund-raising organization are under intense scrutiny by donors and the general public, who want to be assured that their gifts will go where they are intended in the case of LEFs, for the direct benefit of the students and faculty of the schools in the district.

It is therefore important to recruit LEF board members who are prepared to make a real effort for little direct reward. It is not unusual for local lawyers, accountants, and business leaders to be asked to provide their own specialized services at no charge to the LEF.

Some school districts donate small amounts of secretarial services from their own office staff. Although the district superintendent is generally a member of the LEF board, membership is typically non-voting. It is important however, that the superintendent play an active role in foundation funding decisions.

Contributions: Contributions to LEFs are not considered part of the local district's operating funds, and are used not to replace, but to supplement the regular budget. They usually fund activities and programs that would otherwise go unfunded. The most frequent use of foundation funds is the purchase of instructional equipment. Computer hardware and software, and other technology needs of the schools were frequently mentioned expenditures. Funding for the acquisition of library materials, grants for creative instructional initiatives, teacher recognition, and student scholarship were also reported expenditures of the LEFs in Illinois.

LEFs operate independently of the school districts they support, although a high level of cooperation between the local school board and the district's LEF is imperative. Our research found that the majority of LEFs award grants on the basis of needs communicated by the superintendent, school board members, teachers, and school administrators. An easy flow of information between the school district and its foundation is essential.

Endowments: LEFs need to find a good balance between the annual expenditures of the foundation on the one hand, and the building of an endowment (an income-producing fund) on the other. It is quite clear that donors like to see their contributions going to activities that have reasonably quick and visible pay off the purchase of computers or a new curtain for the auditorium stage. However, a fiscally responsible LEF board will ensure that provisions to build an endowment are established, and that the opportunity to contribute to the endowment is communicated to donors. LEF boards should consider earmarking a minimum of 10 percent of unrestricted annual contributions for endowment purposes. They should also place greater emphasis on marketing and soliciting planned gifts, such as bequests, life income and testamentary trusts, life insurance gifts, and so forth. While it takes time to build an endowment fund that produces substantial income, we believe that it is essential to do for the long-term vigor of the LEF.

Organizers of LEFs need guidance to meet the legal requirements of their non-profit status, develop an appropriate mission statement, create an effective operating structure, recruit and train board members and their volunteers, develop a marketing strategy, and organize fund-raising activi- ties. The process of establishing an LEF demands leadership from the superintendent, the full endorsement of the district's board of education, adequate resources to cover start-up costs, extensive planning, and a committed cadre of volunteers.

Other factors considered important for success of the LEF include: a clearly defined mission, strong volunteer leadership, an active and involved board (the importance of selecting committed members cannot be overstressed), and acceptance by the community.

We have tried here to outline briefly the current state of LEFs in Illinois. The number of LEFs in Illinois is on the increase largely because increasing recognition that they can alleviate some of the financial pressures facing the district, while at the same time mobilizing local interests and concerns to improve the educational environment of the young people in the schools. The likelihood of continued financial restrictions and the success of existing LEFs will influence further growth of the school district foundation movement in Illinois.

Lawrence C. Mortier is vice president for advancement and public services, Western Illinois University. Lawrence J. Dennis is professor, educational administration, Southern Illinois University.

Illinois districts with local education foundations

Abingdon District 217
Abingdon Public School Foundation
AlWood C.U. District 225
AlWood Academic Foundation
Amboy C.U. District 272
District 272 Educational Foundation
Bannockburn District 106
Bannockburn School Technology Foundation
Barry C.U. District 1
Barry School Foundation
Batavia Public Schools District 101
Batavia Foundation for Educational Excellence
Belvidere District 100
Belvidere Community School District 100 Foundation for Excellence in Education
Bond County C.U. District 2
Bond County C.U. District 2 Academic Foundation
Brussels District 42
Carlinville C.U. District 1
Carlinville Public Schools Foundation
Carrollton C.U. District 1
District One Foundation for Quality Education
Cary Consolidated District 26
(LEF formed in 1985, now inactive)
Centralia City District 135
Centralia City Schools Endowment Fund
Urbana District 116 and Champaign C.U. District 4
Champaign-Urbana Schools Foundation
Cambridge Unit District 227
Cambridge Academic Foundation
Columbia C.U. District 4
Columbia School District Foundation
Dakota C.U. District 201
Dakota Opportunities in Education (D.O.E.)
Dixon Public School District 170
Dixon Public School District Foundation
DeKalb C.U. District 428
DeKalb Educational Foundation
Danville District 118
Danville Community Public School Foundation, Inc.
Edwardsville C.U. District 17
EGHM Foundation (originally established to fund a sports complex inactive
for ten years)
Effingham C.U. District 40
(LEF established, but not yet in operation)
Eureka C.U. District 140
Eureka C.U. District 140 Educational Foundation
Franklin C.U. District
Franklin-Alexander-Nortonville Education Foundation (F.A.N.)
Galva C.U. District 224
Foundation for Educational Enrichment
Griggsville C.U. District 4
Griggsville C.U. District 4 Foundation
Gridley C.U. District 10
Gridley Schools Foundation
Grant High School District 124
Germantown Hills Elementary District 69
Germantown Hills Educational Foundation
Hall High School District 502
Hall High School Education Foundation
Highland C.U. District 5
Highland School District Foundation
Hamilton C.C. District 328
The Cardinal Foundation for Hamilton Schools, Inc.
Hawthorn District 73, Vernon Hills
Partnership for Excellence Hawthorn Educational Foundation
Iroquois County C.U. District 9
Iroquois County C.U. District 9 Academic Foundation
Johnsburg C.U. District 12
Johnsburg Educational Partnership Foundation
Kildeer District 96
Kildeer Educational Foundation for Excellence
Kewanee C.U. District 229
Kewanee Community School District Foundation Fund
LaHarpe C.U. District 335
LaHarpe Educational Foundation
Lincoln-Way High School District 210
Lincoln-Way High School Foundation for Educational Excellence
Lake Forest District 67
Spirit of 67 Foundation
LaSalle-Peru Township High School District 120
(in process of being developed)
Lawrence County Unit District 20
Academic Foundation
Lewistown Community High School District 341
Lewistown Community High School Academic Foundation
Malta C.U. District 433
Malta Education Foundation
Marion C.U. District 2
Marion C.U. District 2 Foundation
Mattoon C.U. District 2
Mattoon Foundation for Academic Excellence
McHenry Elementary District 15
McHenry Elementary Education Foundation
Macomb C.U. District 185
Macomb C.U. District 185 Educational Foundation
Marengo High School District 154; Marengo-Union Elementary District 165;
Riley Elementary District 18
Marengo Area Schools Education Foundation
Marshall C.U. District C-2
Marshall Schools Foundation
Metamora C.C. District 1
Metamora Grade School Foundation for Educational Excellence
Monmouth Unit District 38
Monmouth School District Educational Foundation
Mt. Carroll District 304
Mt. Carroll Education Foundation
Mount Vernon City Schools District 80
Mount Vernon City Schools Foundation
Mt. Zion C.U. District 3
Mt. Zion Foundation for Quality Education
Northwest C.U. District 175
Northwest C.U. District 175 Educational Foundation
Orion District 223
Orion Educational Foundation
Ottawa Township High School District 40
Ottawa Township High School Foundation for Excellence
Palestine C.U. District 3
Palestine Academic Foundation
Pecatonica C.U. District 321
Pecatonica Education Foundation
Pikeland Unit District 10
Pikeland Foundation
Plainfield C.C. District 202
Plainfield Foundation for Excellence
Pontiac Township High School District 90
District 90 Educational Foundation
Prophetstown-Lyndon C.U. District 3
Prophetstown-Lyndon Education Foundation
Princeton High School District 500
Princeton High School Foundation
Putnam County C.U. District 535
Putnam County Education Foundation
Quincy District 172
Quincy Foundation for Quality Education
Rochelle C.C. District 231
Rockton District 140
Rockton Elementary Education Foundation
Rock Island District 41
Rock Island Milan Education Foundation
Round Lake Area District 116
Round Lake Area Schools Foundation
Salem District 111
Salem Elementary Academic Foundation, Inc.
Scott-Morgan C.U. District 2
Scott-Morgan C.U. 2 Foundation
Signal Hill District 181
Signal Hill Education Foundation
Springfield Public Schools District 186
Springfield Public Schools Foundation
Steeleville C.U. District 138
Steeleville School District Educational Foundation
Sterling C.U. District 5
Sterling Schools Foundation
Stevenson High School District 125
Stevenson High School Community Foundation
Sycamore C.U. District 427
Sycamore Education Foundation
Township High School District 113
Township High School District 113 Foundation, Inc.
Triopia C.U. District 27
Triopia Schools Foundation
United Township High School District 30
United Township Foundation
Washington Grade School District 52
District 52 Project Excellence Foundation
Waverly C.U. District 6
Waverly Community School District 6 Foundation
Wabash Community District 348
C.A.R.E.S. Foundation of Mt. Carmel
Winnebago District 323
Foundation for Education Excellence
Woodstock Community District 200
District 200 Educational Foundation
Waterloo C.U. District 5
Yorkwood C.U. District 225
Yorkwood School Foundation, Inc.