A Call to Action Case for Support THE PROSPERITY FOUNDATION Transforming Connecticut s African American Community. Forever. The time is now. The most pressing needs of African Americans in Connecticut can only be addressed with permanent resources that support sustainable impact. The Prosperity Foundation (TPF), Connecticut s first and only permanent endowment established with a focus African Americans, will make this possible. Through TPF, Connecticut s African-Americans will have a vehicle that allows them to come together and build a resource for Connecticut s African-American community. The mission of The Prosperity Foundation is to build a permanent endowment for donors interested in funding innovative programs that positively transform Connecticut s African American community in the areas of education, economics and health. Through this coordinated, focused approach, philanthropy in the African American community will serve as a viable and sustainable means of addressing critical social and economic needs. The Prosperity Foundation s vision is to become a permanent, endowed resource that provides Connecticut s African American community with the assets needed to lead and respond for the long term. Through TPF, donors will be able to create a perpetual legacy that will contribute to their community forever. Human progress is neither automatic nor inevitable... Every step toward the goal of justice requires the tireless exertions and passionate concern of dedicated individuals. Martin Luther King, Jr. The Prosperity Foundation will be the first fully endowed statewide fund created by and for a state s African American community. Background The concept of an endowed Connecticut African American foundation was initiated by Howard K. Hill of Howard K. Hill Funeral Services. Driven by a desire to see his dream, Hill engaged Milford attorney Rolan Joni Young Smith and Cathy Graves, Vice President, Special Projects at the Community Foundation for Greater New Haven, to brainstorm next steps. With support from The Community Foundation for Greater New Haven, a strategic planning process shaped the launch of TPF. A feasibility study, which engaged African Americans throughout the state, not only underscored the importance of TPF, but also highlighted the action steps necessary to establish TPF and ensure its long-term success. 1
As expected, there was not universal agreement on the aspects of TPF; that said, the majority of respondents agreed that an ambitious effort with substantial resources was needed to affect significant impact. Moreover, many of those interviewed stressed the importance of improving economic and educational opportunities in the community, and saw TPF s potential to support those organizations that have been successfully addressing those issues. Informed by these suggestions, TPF s working group and Marga Incorporated, a New York City-based consulting firm providing strategic advice and research to philanthropic initiatives and community partnerships, began mapping the pathway toward TPF s creation. As part of that effort, focus groups across the state are contributing to the development and implementation of TPF; the focus groups are taking place throughout the remainder of 2013 in anticipation of its launch in 2014. Statement of Need While many Connecticut African Americans are persistently impacted by disparities in health, education and economic access, there is no permanent vehicle through which African Americans can harness the wealth that exists in the African American community (and elsewhere) to consistently address these challenges. These gaps continue to stunt the positive growth of African American communities. Specifically: Unemployment for Connecticut s African Americans is more than twice that of whites 17.7% compared to 8.3% for whites. Only 24% of African Americans have at least an associate s degree, compared to 47% of Whites. African Americans are three times more likely to be poor than Whites in Connecticut. The statewide graduation rate is 79.2%, but the rate among African Americans is only 63.6%. What is most concerning is that these disparities are multigenerational, resulting in a recurrence of poor health, limited access to quality education and low wealth. The persistence of these issues calls for new strategies built around African American participation and African American assets and traditions. We have the first generation of truly mega- wealthy African Americans who are just hitting their peak earning YEARS They have a long time before they depart this earth, BUT WHEN THEY Do, there is every expectation that they will be charitable in their estates and that we will see a new Renaissance of African American giving the likes of which the world has never seen before. Dr. Benjamin S. Carson, Renowned Neurosurgeon and Philanthropist Despite the numerous challenges facing the state s African American community, Connecticut is home to many generous African Americans with substantial giving capacity. Moreover, philanthropy has been central to the African American community, with traditions of sharing time, talent, and treasure through assistance to families, churches, schools, and other vehicles. However, the giving spirit of African American s has not been adequately channeled in such a way that allows for significant impact in addressing overall community conditions. Like 2
many philanthropic efforts, the giving lacks consistency; as a result, the overall greater good of Connecticut s African Americans is not appropriately leveraged. The absence of a single vehicle for donors and a resource for organizations have prevented a strategic and thoughtful means of addressing the most critical issues facing the African American community. Strategy In order to address these needs, TPF will serve to uniquely bring African-Americans in Connecticut together. TPF will fill a void by creating a vehicle that allows donors in Connecticut s African American community to work together to make their philanthropy more communal, more effective and more powerful. TPF is a crucial new space through which donors can: combine their efforts with like-minded peers through such means as giving circles; continue their existing giving through new donor advised funds; or give to endowed funds designated for specific nonprofit agencies or issues of interest. As an endowed foundation, TPF is intended to serve donors and the community forever. Goals and Intentions The Prosperity Foundation will: Provide a permanent endowed resource: In building an endowment, TPF will create a permanent asset that will address long-term priorities, such as education, economics and health. Create a vehicle for donors: Donors will be able to choose from multiple options in order to support TPF, and channel their resources through one organization designed to address priority needs in Connecticut s African American community. Strengthen community: TPF will bring together donors who share a desire to enhance the sense of community among Connecticut s African Americans and create greater collective impact. Enable community leadership: Volunteers will play critical leadership roles as board members of TPF. Make Grants to Nonprofit Organizations: Through its various donor-established funds, TPF will provide grants to various Connecticut nonprofits with a track record of success in improving education, health and economic development in the African American community. 3
Through these approaches TPF will transform African American philanthropy in Connecticut providing a new avenue for giving while simultaneously enhancing opportunities for African Americans throughout the state. Essentially, TPF will promote African American philanthropy as a means of economic empowerment and civic engagement. Building The Prosperity Foundation The Community Foundation for Greater New Haven (CFGNH) has provided important initial support toward launching The Prosperity Foundation through investment in an initial feasibility study (conducted by Marga Incorporated) based on interviews with twenty-five African Americans throughout Connecticut. CFGNH continues to support the development of TPF through a strategic planning process to refine its mission, purpose and agenda. The process includes continuous dialogue among an expanding working group and a series of focus groups among prospective donors and partners in Fairfield, New Haven and Hartford Counties. Through engagement with a growing constituency, The Prosperity Foundation will develop prospects for the Foundation s official governing and advisory bodies once they are created. Upon its official launch in 2014, as an incorporated entity The Prosperity Foundation will create formal leadership bodies and ultimately will be governed by a Board of Directors. As Board recruitment takes shape, TPF will pursue Board members with a passion for improving the conditions in Connecticut s African American community, an ability to financially contribute to TPF, a willingness to recruit donors and partners, and an awareness of successful strategies to address priority needs. The Prosperity Foundation will also develop a National Advisory Council of individuals who can enhance the foundation s visibility and provide guidance as needed. Because The Prosperity Foundation is a unique endeavor potentially a national model of a statewide foundation by and for African Americans we hope to recruit those who want to share in building a successful, replicable effort. The Prosperity Foundation will not build a large staff and substantial physical infrastructure; rather, it plans to make arrangements with an existing community foundation to provide back-office support. Opportunities to Support The Prosperity Foundation will provide several options for donors to realize their philanthropic goals, including unrestricted, donor advised, scholarship, preference, and designated funds, among other options. Ultimately, TPF will allow donors a variety of opportunities to achieve their community philanthropy goals in support of Connecticut s African American community. 4
The following options provide opportunities to strengthen African American communities in Connecticut through TPF: Unrestricted Funds Through unrestricted gifts, donors can provide The Prosperity Foundation with flexible resources to meet evolving community need; Donor Advised Funds Donor Advised Funds give donors ongoing involvement in grants from their fund; Preference Funds Donors can target specific issues when making their gifts through preference funds; Designated Funds Through designated funds, donors can direct gifts to specific nonprofit organizations; Scholarship Funds Donors can establish criteria for students to receive scholarship funds supporting educational achievement at all levels; Giving Circles Giving circles will provide donors an opportunity to pool resources with other donors to support a common area of interest. The Prosperity Foundation will accept cash, securities, bequests, charitable gift annuities, and other gift contributions. Conclusion In accordance with the well-known African proverb, the success of The Prosperity Foundation will literally depend on the support of the village. Harnessing the care that African Americans have historically demonstrated for each other, TPF will serve as a vehicle informed by the community foundation model. This merging of traditions can forge a powerful new entity a community foundation by and for African Americans in a given state. As philanthropic and nonprofit sectors continue to grow in Connecticut, The Prosperity Foundation will complement these efforts, while representing an emergent and innovative opportunity. 5
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