Page 22 - Dec 2021 Report

December Report
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Grant Program Committee meeting minutes (draft) (2) 5. Budget Items
A. Grant Distribution Plans
The 2021 Grant Distribution Plan and 2022 Grant Distribution Plan had been circulated. Dick explained that the Estimated Distribution Requirement (“EDR”) increased by about $500,000 from 2020 to 2021, and the 2021 EDR stood at $8,808,861 as of November 22nd. The 2021 budgeted amount for Palm Beach Atlantic was at $530,000 because of last year’s prepayment. To date $8,476,514 of the 2021 dollars were committed, leaving a smaller gap to make up at year end compared to this time last year. The 2022 Grant Distribution Plan shows the EDR increasing significantly to $11,190,867. This is a result of the CRUT funds as well as excellent portfolio returns in recent months. To date approximately $1.5 million is uncommitted for 2022.
B. 5-year grant projections
The 5-Year Grant Distribution Projections had been circulated. Dick reported that the EDR flattens out after 2022, assuming a 5 percent return. The uncommitted funds of $332,347 for 2021 are projected to increase over the next 4 years as several current commitments wind down.
C. Grants distribution management
The projections show a significant gap between JSF’s minimum required distributions and its budgeted grants. Ways to develop new grant opportunities were discussed. One idea involves doing more to help current and former grantees. Staff is having conversations with the state colleges in Florida that currently have JSF endowments through the UCF DirectConnect program, as well as the Entrepreneurship Scholarship institutions that might have additional need. In September, the Committee discussed increasing the average grant size to distribute more dollars.
At the same time, thought is being given to finding new grantees. The Committee offered to form a task force to help with this issue, should Bobby desire. He will consider this and advise should he want the Committee to do so. The Committee also suggested the possibility of an additional consultant.
JSF is also in discussions with other funders, such as Helios Education Foundation and the Northwest Area Foundation, about possible collaborations. Looking at this issue from the grantee perspective, some are reluctant to ask for higher grant amounts because of the matching component. The match can serve as a selling point or become a stumbling block depending on the ratio. When the ratio goes below a 1:1 match, for instance, some grantees report it becomes a tough sell to donors. There is also the difficulty of raising money for endowments. The discussion concluded with the Committee directing staff to continue to explore options for managing the grant distribution deficit.
The Committee approved the 2021 Grant Distribution Plan, 2022 Grant Distribution Plan and the 5-Year Projections. The Committee authorized staff to meet the 2021 minimum distribution requirement by prepaying existing grant commitments as needed.
D. Finding new grantees
A discussion began about ways to discover up-and-coming grantees with great potential like David Flink, whom JSF supported as he launched Eye to Eye. One way might be to set aside grant dollars to fund exceptional organizations like David’s. Some degree of risk would be involved, but risk is also one of the Foundation’s Core Values. Consultants could be retained to seek out these promising grantees. During the discussion, it was agreed that the need for finding new grantees does not warrant a change in the current strategy of helping people with disabilities obtain education and competitive employment. The Committee concluded there is value in establishing a line item with regard to finding new grantees.
Staff was directed to develop a structure for an initiative for finding new grantees and bring it back to the Committee in March.