Episcopal Charities

FAQs

How old is Episcopal Charities?

In a sense, Episcopal Charities is as old as the Episcopal Church in California (over 150 years) because outreach to the poor, the oppressed and the endangered has always been a principal concern of the Episcopal community. Around 1977 Episcopal Charities was identified as a separate division within the Episcopal diocese. In 1999, Episcopal Charities was established as a separate legal entity, a California non-profit corporation qualifying as a 501 (c) 3 charitable organization under Internal Revenue Service regulations.

What does Episcopal Charities do?

Episcopal Charities builds a community of givers to serve a community in need.

We build this community of givers by connecting donors with one another through a network rooted in a common social vision. We offer education about urgent community needs and advice regarding organizations that most effectively meet these needs. We encourage both personal involvement in volunteering and community involvement through our network of givers.

What is the mission of Episcopal Charities?

To support new and existing nonprofit agencies in their effort to make a crucial difference in the lives of poor, oppressed and endangered individuals in need in the San Francisco Bay Area, regardless of their religious affiliation or practice.

How does Episcopal Charities go about its work?

We serve the community in need by providing financial and administrative resources to nonprofit organizations and parish programs that serve the poor. Some of these are start-up programs designed to address emerging needs, while others have a proven track record providing homes for the homeless, food for the hungry, recovery for the addicted, education for children, and care for the sick.

Historically Episcopal Charities raises money through fund-raising events, such as the annual walk-a-thon, and from individual donors, principally by means of annual gifts and testamentary bequests. It retains professional money managers to invest these funds, solicits and reviews grant proposals from its "partner agencies", and distributes the available funds on an annual basis.

Recently Episcopal Charities has established several programs to attract donors, such as donor advised funds, as well as launching its major gifts campaign, which will result in a substantial endowment within Episcopal Charities to enable it to provide significantly increased support to its partner agencies.

Who are the partner agencies of Episcopal Charities, and how and why are they selected?

Currently there are 14 partner agencies: Bay Area Seafarers' Service Center, Berkeley Food and Housing Project, Canal Alliance, Clausen House, Good Samaritan Family Resource Center, Episcopal Community Services, The Family Link, Interfaith Hospitality Network of San Mateo, Ohlhoff Recovery Services, St. Dorothy's Rest, St. Luke's Neighborhood Clinic, Sojourn Chaplaincy at San Francisco General Hospital, and Tri-City Homeless Coalition.

Episcopal Charities chooses partner agencies who are committed to serve those in need, and who have demonstrated the ability to do so. We align with those agencies who, in the words of Bishop Swing, support the Diocese's commitment to "stay in the streets and in the broken lives" of those in need.

Is Episcopal Charities an organization that just passes through donations to non-profit organizations serving the community?

No. First, Episcopal Charities manages a large endowment, the income from which is distributed to its partner agencies through the grants program administered by Episcopal Charities.

Second, Episcopal Charities provides management advice, and technical assistance, to donors and partner agencies, and conducts periodic round table discussions among partner agencies to encourage sharing of resources and information. Episcopal Charities also provides a variety of services to start-up organizations (the "incubator" program) that are seeking innovative measures, or to meet an unfilled need, to deal with the problems of the poor, friendless and needy.

Why is it better to give to Episcopal Charities than directly to one of its partner agencies?

Giving to Episcopal Charities directly enables donors to add significant value to their financial gifts.

Through its grants program and its on-going relationship with its partner agencies, Episcopal Charities is able to identify the most beneficial programs and activities of its partner agencies, and thus is able to focus its grant money where it can do the most good. It is often difficult for individuals to identify the appropriate agencies or programs that use funds most effectively.

Further, through the economies of scale, Episcopal Charities is able to obtain lower investment fees and administrative costs in managing money entrusted to Episcopal Charities.

Finally, Episcopal Charities is able to provide more than money to its partner agencies, including: management advice and technical assistance; periodic round table discussions to facilitate the sharing of resources and information; and a variety of services to start-up organizations pursuing innovative strategies or seeking to meet unmet needs. We also provide research and advice to donors about particular charitable organizations and programs.

Of course if you are familiar with a charitable organization and its use of funds, there is nothing wrong with contributing directly to such an organization.

What is the cost of this "value added" by Episcopal Charities? Or to say it differently, what percentage of the money collected by Episcopal Charities is actually given to or used for the benefit of its partner agencies?

Our goal is to maintain our administrative expense in the range of 15% of the funds raised, consistent with the administrative percentage of other non-profit foundations of our size. Our administrative costs have been higher in the past due to the expansion of program services and the launch of our first "major gifts campaign." With the maturing of our new initiatives and careful control of expenses, we expect to attain our goal of 15% administrative costs in the 2005 budget.

Is EC (Episcopal Charities) different from ECA (Episcopal Charities Appeal), and ECS (Episcopal Community Services)?

Episcopal Community Appeal (ECA) is the historic name of Episcopal Charities, which formally changed its name in 1999. Episcopal Community Services (ECS) was formerly known as the Episcopal Sanctuary, and is a homeless shelter in San Francisco providing shelter and related services to its clients. ECS is one of Episcopal Charities' 14 Partner Agencies. We also support homeless programs in Berkeley, Fremont, and San Mateo.

What is the relationship between the Episcopal Diocese and Episcopal Charities?

As the sole charitable arm of the Diocese throughout the Bay Area, EC directs its charitable resources to where they will have the greatest impact.

Episcopal Charities receives no financial support from the Diocese. Episcopal Charities raises all of its own funds for grants and operations.

The funds obtained by the Diocese through the annual parish assessment support the staff and programs of the Diocese, such as the Office of Congregational Development; none of these funds are entrusted to Episcopal Charities.

Does Episcopal Charities only support groups with a religious affiliation to the church?

No. Many of our Partner Agencies originally had their roots in the Episcopal Church, or in interfaith organizations including Episcopalian parishes, but almost all partner agencies now are semi-autonomous. In any event their clients receive help regardless of their religious affiliation.

You've mentioned that Episcopal Charities manages "Donor Advised Funds". What is a Donor Advised Fund, and why should I consider forming one with Episcopal Charities?

By setting up a donor advised fund with Episcopal Charities your gift will have both an immediate and a lasting impact on complex social issues, while obtaining important tax benefits now.

By designating your gift to Episcopal Charities as a donor-advised fund, you may name your own charitable fund and recommend grants for the charitable purposes of the Episcopal Church or a nonprofit organization of your choice. In addition to advising EC as to the use of the fund, you receive a tax deduction at the time of the contribution, and may continue your philanthropy by adding to your fund at any time.

Can a Donor Advised Fund with Episcopal Charities be used for contributions to my alma mater, museums, my parish, Bishop's Ranch, etc.? Are there any restrictions on the uses of such funds?

Yes, contributions can be made to any public charity or educational institution, domestic or foreign, without regard to religious affiliation.

Episcopal Charities, as a faith based organization, has only one condition, which is that fifty percent of the dollar amount of your annual grants must be used for the benefit of the Episcopal Church, Episcopal Charities or its partner agencies.

As with any donor advised fund, there are certain restrictions required by law. For example, grants from the fund may not be used to pay for membership or dues that might be perceived as giving financial benefit to the donors, the donor's family or business interests.

Are you seeking donations only from Episcopalians?

No. We seek donations from anyone who is interested in advancing the mission of Episcopal Charities: to support new and existing nonprofit agencies in their effort to make a crucial difference in the lives of poor, oppressed and endangered individuals in need in the San Francisco Bay Area, regardless of their religious affiliation or practice.

We expect that initially a substantial portion of our donations will come from the Episcopal community but that over time others will learn about our work and want to support it.

What are the priorities of Episcopal Charities over the next eighteen months to two years?

First and foremost, we want to be sure that the funds donated to us are properly invested and used for the benefit of those in need.

Second, we want to continue to build a community of givers, by educating potential donors to the needs of the community, and helping them make thoughtful choices in their charitable giving.

Third, we want to raise at least $5.0 million by 2006 in Phase One of an ongoing commitment to increase the resources available to assist those in need in our community.

How does Episcopal Charities manage the funds entrusted to it?

Episcopal Charities retains professional money managers, currently Merrill Lynch, to manage the investment of its assets. The Finance Committee of the Board reviews results regularly to confirm that the assets are properly invested and maintained.

Episcopal Charities recently assumed responsibility for the management and distribution of income from the Brotherton Fund, bringing the total amount under current management of Episcopal Charities to $16 million.

What is the role of the board of directors of Episcopal Charities?

As with any non-profit organization, the board provides oversight and corporate governance of the operations of the organization, ensuring that prudent management policies are in place, and that the staff is competently and efficiently performing its work.

The board members seek to set a leadership example in giving, serve as an advocate for Episcopal Charities, and encourage outreach throughout the diocese.