This story from the May 26 issue of the Sacramento Business Journal is an excellent perspective of some foundation charitable giving in the area.
A story about a lot of good people from good organizations doing good work.
Here is an excerpt.
A commitment to giving
It's a lot harder to set up a charitable foundation than to write a check, but it ensures donations will keep coming
Sacramento Business Journal - May 26, 2006
by Danielle StarkeyCorrespondent
Sacramento has about 220 foundations, from family-run organizations to the giant Sierra Health Foundation.
The region's foundations generate millions of dollars for local nonprofit groups, with more companies becoming involved by establishing foundations and some allowing employees to play an active role in the decision-making process.
Most foundations were created with the idea of setting up a formal way to give back to the community, said Dave Ljung, partner with the CPA firm Gilbert Associates Inc. The firm specializes in serving nonprofit groups.
"There are easier ways to give money to a favorite charity than to set up a foundation," he said. "For example, if I'm the CEO ... and I want to give $10,000 to the Girl Scouts, I don't need to set up a private foundation.
"A foundation is more about creating a kind of legacy to continue charitable giving for years to come," he said. "And it's generally going to be something in the few-million-dollars range before it makes sense to do it because they're relatively complex to set up and maintain."
Sierra Health, one of the largest foundations in the region, provided $2.7 million in cash and services to nonprofit organizations in Northern California in 2004, and $58 million during the past 20 years.
The GenCorp Foundation, which is one of the Sacramento area's largest contributors to community groups, gave $827,752 last year, said executive director Juanita Garcia.
GenCorp Inc. is the parent company of Aerojet, and descended from General Tire and Rubber Co., founded in Akron, Ohio, in the early 1900s.
"In 1999, when Gencorp moved its headquarters to Sacramento, half the assets (of the original foundation) stayed in Akron, and half moved here," Garcia said. The foundation was incorporated in December 1999 with assets of about $20 million.
"Because we're a nonprofit foundation, we're required to distribute 5 percent of the market value of the assets of the foundation every year," she said.
When the market does well, the foundation has more to give -- and less when the market slows.
