Tab 20: Oversight of Geographic Affiliates

Required Documents

• List of geographic affiliates whose funds are component funds

• Board resolution indicating control and oversight of GCF

• Copies of operations policies which differ between the two organizations

 

What is a "geographic affiliate" for purposes of this Tab?

While the term "geographic affiliate" is used in many different ways, for the purposes of National Standards, a "geographic affiliate" is defined as a component fund (or collection of component funds) established within or by the community foundations, serving a defined geographic region and under a common advisory group. These affiliates operate under the legal control of the applicant community foundation. For example, a fund that serves a particular county in your service area with its own advisory board but whose activities are under the control of the applicant community foundation would fall under this definition. In contrast, a women's fund serving your entire service area would not meet this definition. Separately incorporated charities, including supporting organizations, are also not covered by this definition.

How do I demonstrate oversight and control of geographic affiliates?

An applicant community foundation must submit a board resolution indicating oversight and control over these geographic affiliates. In addition, a community foundation is asked to submit a representative agreement with its affiliates. If there are several different agreements, the community foundation should submit the different types of agreements.

The reviewer will look at the agreement(s) and other evidence submitted for indications that geographic affiliates are controlled by the applicant community foundation. For example, a key indicator that the geographic affiliate is under the oversight and control of the community foundation is that the affiliate advisory group is clearly an advisory board and not a governing board. While affiliates often need to operate with a sufficient level of empowerment to be effective locally in developing assets and recommending grants, their role is advisory to the community foundation. Other indicators of oversight and control would include reference to the local boards as advisory, community foundation due diligence on all recommended grants, and the manner in which personnel and financial matters are addressed.

Is there a sample board resolution?

    WHEREAS, (NAME OF FOUNDATION) is submitting documentation of its compliance with National Standards for U.S. Community Foundations to the Community Foundation National Standards Board;

    WHEREAS, (NAME OF FOUNDATION) has geographic affiliates as defined by the National Standards for U.S. Community Foundations

    BE IT RESOLVED that the Board of Directors (or Board of Trustees or Governing Board) of (NAME OF FOUNDATION) certifies has control and oversight over its geographic affiliates.¹  All of these geographic affiliates are listed below:

[List geographic affiliates here]

Why are we required to submit copies of policies of the affiliates where such policies are different than those already submitted by the applicant community foundation?

Because geographic affiliates are defined as component funds of the community foundation, policies of the affiliates are policies of the community foundation. For example, if the gift acceptance policy for an affiliate fund is different than the gift acceptance policy of the community foundation, the acceptance policy for gifts to the affiliate would need to be submitted.

With respect to the fourth key element, the term "policies" is rather broad. Which policies of geographic affiliates do we need to submit if they are different than the applicant community foundation?

In general, if the affiliate's policies differ from that those submitted by the community foundation as part of the record book, should be submitted. Examples include, but are not limited to, gift acceptance policy, investment policies and due diligence procedures for grantmaking. If the foundation uses different fund agreements for funds related to a geographic affiliate, submit those fund agreements under Tab 25.

How do we respond to this if we do not have any geographic affiliates?

If your community foundation does not have geographic affiliates as defined by the National Standards, simply submit a signed statement to that effect.

Affiliate
A geographic affiliate is a fund (or collection of funds) established within a "lead" community foundation that is specified to serve a defined geographic area - and is advised or governed by people from the specified area it serves. In other words, a geographic affiliate is simply our universal term for a common phenomenon that goes by many names. Some call them affiliates or area funds. Others call them regions or divisions. And some call them geographic component funds.

Geographic affiliate
Geographic affiliates are defined as a component fund or collection of component funds established within or by the community foundations, serving a defined geographic region and under a common advisory group. This definition does not include separately incorporated organizations such as supporting organizations.