COMMON QUESTIONS

 How does the Community Foundation meet community needs through its grantmaking? 
In 2008, the Community Foundation of Greater Birmingham awarded $20.5 million in grants from more than 350 grantmaking funds.  Grants from Community Funds are made through a competitive process twice a year to help non-profit organizations provide needed services in arts and culture, education, environment, health, human services/strengthening families and supportive communities. The amount available to be awarded from Community Funds is based on an annual spending policy.  Grantmaking from other types of funds, such as scholarship, advised, designated and agency endowment, are made according to previously set spending policies for each fund or according to recommendations by the fund advisors, assisted by our staff.

When was the Community Foundation created and how has it grown? 
The Community Foundation of Greater Birmingham was created in May of 1959 as the Greater Birmingham Foundation.  The first Advised Fund was the Mervyn & Dora Sterne Fund. Today, the number of grantmaking funds has grown to more than 350, ranging in size from $10,000 to $20 million, and total assets of $132 million at year-end 2008.  Since its creation, the Community Foundation has made more than $200 million in grants to thousands of organizations. 

How does the Community Foundation compare to other community foundations across the country? 
The Community Foundation of Greater Birmingham is one of approximately 700 community foundations across the nation. Based on 2007 data, the most recent available for comparison among community foundations, our Community Foundation ranked #45 for gifts received ($27.9 million), #49 for market value of its assets ($164 million) and #35 for grants awarded ($13.5 million). 

How do donors use The Community Foundation to direct their giving?
The Community Foundation serves donors as a flexible mechanism to carry out their specific charitable interests.  Donors may establish a named grantmaking fund with a minimum of $15,000 (scholarship fund and Community Catalyst Fund minimums $50,000), often in the place of a private foundation which might be less efficient and more costly to the donor, or they may make a gift in any amount to other existing funds of the Community Foundation.

How is the endowment invested?
The Investment Committee of the Board of Directors determines the investment policy of funds established with The Community Foundation of Greater Birmingham, Inc., a corporate form created in 1997.  This policy is highly diversified and uses a number of different money managers. Individual grantmaking funds also may be established in trust format at one of several financial institutions.

Who makes the final decision about grants?
The Community Foundation is governed by a Board of Directors made up of knowledgeable community leaders. That Board makes the final decision on all grant awards.   

Who has led the Community Foundation? 
Kate Nielsen currently serves as President.  Past Presidents/Executive Directors include Peggy Spain McDonald, 1964-1991; Sheila S. Blair, 1992-1997, and Mimi W. Tynes, 1998-2000.    

What is the relationship of The Women's Fund to the Community Foundation? 
The Women’s Fund of Greater Birmingham is a component fund of the Community Foundation, set up in 1996 by Lin Carleen as a permanent endowment with the goal of creating greater opportunities for women and girls as well as encouraging women to give.  The Women's Fund, which made its first grants in 2000, had assets of more than $2 million at year-end 2008.




FAST FACTS

Bank trust officer Charles F. Zukoski knew the problems of money remaining in trust for a particular purpose when the need for which they were established no longer existed.  He and other civic leaders saw the value of setting up a public endowment dedicated to serving the community’s needs, no matter how they changed.

A committee headed by A.J. Bowron Jr. studied the best way to proceed. Also on the committee were J.N. Greene, Thomas W. Martin, John E. Meyer, John C. Schor, P.G. Shook, Frank E. Spain, William M. Spencer, Richard J. Stockham and A.V. Weibel.

First advised fund
Mervyn and Dorah Sterne Fund established on May 11, 1959

First designated fund
Big Sisters Association Fund, established July 1, 1960 (name changed in 1978 to  Katherine Inn Fund.)

First trustee banks
First National Bank, Exchange Security Bank and Birmingham Trust National Bank

First grants committee
Robert Block, Milton Brooks, William J. Cabaniss, Katherine Hammond, Hugh Kaul, J.D. McSpadden, Dr. John W. Simpson, Stockham and M.H. Sterne.

First grant
$100 from the Sterne fund to Fairhaven Methodist Retirement Home

First executive director
Peggy Spain McDonald appointed in 1964

First unrestricted fund
Paul Savage Fund, established in 1965 with a bequest of $325,000 from Mrs. Gaby Savage Baldwin in memory of her husband

Largest gift
$20 million bequest in 2001

Largest fund
$20 million honoring the Spain family

Changing our name
The Greater Birmingham Foundation became the Community Foundation of Greater Birmingham in 1998, reflecting its broad role in the five-county area it serves.
Common questions