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THE DEVELOPMENT OFMISSION AND VALUES STATEMENTSFOR FAMILY FOUNDATIONSFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 2009

FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20092

THE SERIOUS BUSINESS OFFAMILY FOUNDATIONSBegins with Mission and ValuesTODAY’S AGENDA: An overview of the development and use ofMission and Values statements Development of Mission statements for familyfoundations Development of Values statements for familyfoundations Applying Mission and Values statements Closing comments(Time will be provided for questions and commentsfollowing each item on the agenda.)FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20093

OVERVIEW - Mission and ValuesStatements DefinedMission defined: The enduring purpose of anorganization, its raison d’etre Answers the question: “Who are we?” Statements are personal, direct and concise Can be redefined by each generationValues defined: Standards that define whatmembers of an organization hold to be mostimportant and which guide group behaviors Accompanies and amplifies the Mission Statements usually feature key words definedin behavioral terms The basis for governing principles and policiesFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20094

OVERVIEW – Importance to Families Most businesses – family-owned, closelyheld and public – have Mission and Valuesstatements, but family foundations havebeen slower to adopt such statements. Families who share assets – including theirphilanthropic assets – often share proudmulti-generational legacies that define theirfamily mission and shared values. Family philanthropy can provide a powerfulstatement of “who you are” as a family. Families would do well to take the businessof their foundations as seriously as they dotheir operating and investment assets.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20095

OVERVIEW – Application byFamily Foundations The Family Foundation Mission and Valuesare statements of the family’s enduringphilanthropic purpose and the principles thatcan guide its charitable work as a family. Development of these statements providesopportunities to engage family members ofmultiple generations in defining the family’sphilanthropic legacy. These statements can serve as the basis forestablishing structures for governing the familyfoundation, for defining long-range objectives,and for establishing grant making guidelines.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20096

QUESTIONS,COMMENTS&RESPONSESFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20097

WHAT A FOUNDATION’SMISSION STATEMENT DOES Contributes to family unity by invitingcommitment to its philanthropic objectives. Encourages the family to be strategic byclarifying the family’s multi-generationalphilanthropic objectives. Serves as basis for focusing the family’s workand for establishing grantmaking guidelines. Acknowledges the scope of the foundation’sassets and the family’s commitment to usethese to benefit the communities they serve. Provides opportunities to engage familymembers in its philanthropic business.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20098

FOUNDATION MISSION STATEMENTS:Potential Elements to Include The family’s legacy, especially it’sphilanthropic history and relationship to thecommunities it has served The nature of the foundation, its origin,funding sources, etc. The family’s multi-generational philanthropicobjectives and what it intends to accomplish The field(s) of interest of the foundation orany specific programs the family intends tosupport continuouslyFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 20099

DRAFTING THEFAMILY FOUNDATION’S MISSION The foundation’s mission statement should beseparate from but aligned with the FamilyMission. Family foundation mission statements are notsymbolic words; instead, they should be usedto guide the family’s philanthropic work. The process for developing the FamilyFoundation Mission Statement can be asimportant as the words that result. Ideally, multiple generations and branches willbe represented in the development of thefoundation’s mission statement.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200910

DRAFTING – SOME QUESTIONS Who will participate in drafting our family’sphilanthropic mission statement? How will we receive input from familymembers? How will we incorporate “donor intent” fromfounding and/or governing documents? Should other stakeholders – grantees, thecommunity, etc. – be consulted? How will the draft Foundation Missionstatement be reviewed and approved? How will the Foundation’s Mission becommunicated to family members? How will we hold ourselves accountable forfaithfully carrying-out the Mission?FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200911

EXAMPLE #1The Joseph P. Kennedy Jr. Foundation:The mission of the Joseph P. Kennedy Jr.Foundation is to provide leadership in thefield of mental retardation and service topersons with mental retardation, both thoseborn and unborn, and their families.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200912

EXAMPLE #2The Mott Foundation:The Charles Stewart Mott Foundationaffirms our founder’s vision that each of us“is in a partnership with the rest of thehuman race” – that each individual’s qualityof life is connected to the well-being of thecommunity, both locally and globally.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200913

EXAMPLE #3A Slightly Different ApproachThe (anonymous) Family Foundation:We, the (anonymous) family, are grateful toGrandpa and Meme for providing us with themeans for continuing their good work in servingthose most in need in our local, national andglobal communities. We will be mindful of theirexample in serving the basic educational,housing and employment needs of the mostvulnerable, especially those who are singleheads of households. We will be goodstewards of the funds given us to manage andwill contribute our talents and other resourcesto benefit others as our ancestors did.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200914

AN EXERCISE IN DRAFTINGYOUR OWN MISSION STATEMENTTake 5 minutes to write down words orphrases that respond to the following:1. Who are we as a family? (May be takenfrom your Family Mission.)2. Who/what is the origin of our familyfoundation and the source of funds?3. What is the nature of the philanthropiclegacy we have inherited?4. Who do we intend to benefit from ourphilanthropic giving?5. What outcomes do we hope to achieve overthe next generation?FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200915

QUESTIONS,COMMENTS&RESPONSESFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200916

WHAT A FOUNDATION’SSTATEMENT OF VALUES DOES Provides guidance on “how” family membersare expected to act in carrying-out thefoundation’s mission. Serves to motivate family members to actphilanthropically through the foundation. Provides guidance for making decisionswhen faced with complex philanthropicissues. Guides the establishment of policies andsetting of priorities for the Foundation.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200917

DRAFTING VALUES STATEMENTSfor Family Foundations If you have statements of Shared FamilyValues, examine them to determine which, ifany, apply to your philanthropic work. If you have no statement of Family Values,consider your family’s philanthropic legacyand identify any values that may have guidedyour ancestors in their charitable giving. How family members feel about money andabout allocating a portion of their wealth tophilanthropy is often a key question of values. Families should be expected to live out theirvalues without being accused of hypocrisy.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200918

DRAFTING – SOME SUGGESTIONS1. Share stories among family members aboutthe family’s charitable giving in pastgenerations.2. At your next family meeting, engage multiplebranches and generations in a facilitateddiscussion of what family members considerto be the importance of family philanthropy.3. Use values cards – like those offered byValues Edge or 21/64 – as a family exercisein identifying key philanthropic values.4. Invite feedback from previous grantees andthe community about their understanding ofyour family’s philanthropic values.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200919

SOME EXAMPLES OFPHILANTHROPIC VALUESWe support the role of arts and culture insociety.Social Justice – We are committed to theprinciple that all people are created equaland that our social, economic and politicalstructures should support the self-sufficiencyof all individuals and families.Our family is strongest when we work togetherto help others. Thus, we commit our time,talent and financial resources to serve thoseless fortunate than us.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200920

OPERATING PRINCIPLESOne of the challenges faced by familyfoundations is to put their PhilanthropicValues into action. A good way to do this isto develop Operating Principles for each oftheir foundation’s Values.An Operating Principle is a guideline, basedon one or more of the foundation’s Values,that establishes a specific practice to befollowed by the family and the foundation’sleadership. Operating Principles may takethe form of governance practices, programguidelines or other foundation policies.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200921

OPERATING PRINCIPLES –EXAMPLE #1A family foundation whose PhilanthropicValues include “innovation” established asan Operating Principle the following grantmaking guideline:At least 20% of the Foundation’s annualgrants will be to organization’s conductinginnovate programs designed to providelong-term solutions to meet enduring socialneeds.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200922

OPERATING PRINCIPLESEXAMPLE #2One family foundation whose PhilanthropicValues include “family” and “leadership” hasthe following Operating Principle:The Foundation’s board will consist of atleast one representative of each generation.Upon reaching their 21st birthday, each familymember will be offered the opportunity toparticipate in Foundation programs, to attendconferences and access other leadershipdevelopment programs to prepare them forpotential leadership roles in the foundation.FAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200923

QUESTIONS,COMMENTS&RESPONSESFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200924

APPLYING MISSIONAND VALUES STATEMENTSProcess to develop Mission and Values: Best done at a full-day family meeting with afacilitator (to allow full participation) Background information and samples shouldbe shared in advance via telecommunication Following meeting, small group of 2 or 3 canrefine drafts and circulate for comment Final draft can be circulated for approval Family can affirm its approval at next familymeeting Total time should be approximately 30 daysFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200925

APPLYING STATEMENTS - 2Opportunities to engage the family: Service on inter-generational governancestructures of the foundation Service on the Allocations Committee,including site visits and grantrecommendations Represent the family and foundation atcommunity functions and nonprofit boards Identify potential initiatives in keeping withthe foundation’s mission Identify potential partners for programinitiativesFAMILY FOUNDATIONS WEBINARCouncil on FoundationsJanuary 13, 200926