Duluth Superior Area 
Benefits of an Organizational Endowment
What is the Lighthouse for the Blind? We are a mission based, private, non-profit dedicated to providing adjustment to vision loss rehabilitation services. The clients and students who participate in our programs come with this in common: Severe vision loss and the fear of the perceived devastating effect it may have on their quality of life and independence. Blindness is the most feared disability in the world. It has been, and is, our mission to dispel this fear by providing the knowledge and skills to live independently, to be gainfully employed, and to participate in life to the fullest extent. In addition, it is our mission to educate the public about vision loss and the capabilities of people who experience it. Through agency based rehabilitation, instruction in a person’s home, on a job site, or by audio assisted on-line instruction, our clients receive training in many subject areas. These include adaptive communication methods such as Braille, computer technology and “low-tech” communication skills, orientation and mobility, techniques of daily living and cooking, low vision techniques, and leisure activities including woodworking, bowling, games, personal fitness and others. We have a special program for people with the dual sensory loss of hearing and vision, a store with aids and devices for people who are blind and a radio reading service manned entirely by volunteers to read local newspapers and other local periodicals on the air. In addition, staff provides professional and public educational presentations about vision loss and deafblindness. Why did your nonprofit decide to set-up an organizational endowment with the Duluth Superior Area Community Foundation? The Lighthouse had a private foundation until the 1990s. The private foundation wasn’t growing the way we had hoped to so we began to explore transferring the foundation to a permanent endowment administered by a firm or organization that could invest it wisely. After extensive research and many meetings, we decided to set up the endowment with the Duluth Superior Area Community Foundation. While not intimately involved in the original discussion, I do remember how difficult the decision to move from a private foundation to an endowment administered by an outside firm was. I also remember that the DSACF was chosen because of the capability of its leader, Holly Sampson, and the commitment on the part of the Foundation to protect our assets. DSACF also understood our mission, committed to protecting our donor’s assets, and provided access to Holly and the staff which had extensive knowledge of the investment climate. Finally, it was vital that we establish long term income for the Lighthouse without depleting principal. Holly spent many hours with our foundation board to ensure that the historical value would remain untouched and the interest would always be used to benefit the rehabilitation programs of the Lighthouse. Has it been beneficial? It was one of the best decisions we ever made! With the DSACF guiding the investments and the generosity of donors, the endowment has tripled in value and provides much needed income for our programs. Early on in our relationship, we learned first hand how supportive DSACF can be in providing assistance. In 1999 because of devastating losses in our production department the tissue making operation and sheltered workshop had to be shut down, but something had to be done to protect our rehabilitation services. I can’t begin to tell you how many people and firms came to our aid from this wonderful community. Holly and the DSACF were a large part of that effort by setting up a Program Related Investment (PRI), the first ever in this area, which gave us the funds to remodel the building. This may not seem important until you realize that the remodel provided classroom space for the rehabilitation programs and allowed us to lease the remaining space. The lease of the remaining space continues to provide income for the Lighthouse. (A PRI is a loan from your own endowment that is paid back just like any other loan. The difference is that the loan payment on the principal and the interest paid go right back into the endowment so you are in essence paying yourself back. Also, the original endowment principal was never touched which was a condition of the original agreement.) Because there were so many legal steps in doing this Holly worked long exhausting hours, even participating in telephone conferences and faxing paperwork back and forth while on vacation! The DSACF again came to our rescue when payments left over from the shut down were crippling our cash flow. A moratorium on PRI payments was given for 13 months to provide breathing room and this made it possible for the Lighthouse to succeed and flourish. The PRI has now been paid back for several years but the gratitude that we all feel because of what the DSACF did will never be forgotten. What would you recommend to other nonprofits who are considering setting up a permanent endowment? Do your homework by checking all your options and have a good solid understanding of how your endowment needs to work for you. It was important to our original foundation board that the historical value never be touched and that the funds be designated for rehabilitation services for the blind. Additionally, ask these questions: How accessible is your investment counselor/ advisor/CEO of the investment firm? Do they have a local presence and invest in the community? Be sure to ask for recommendations from other non-profits. If asked, I will always recommend the Duluth Superior Community Foundation and give you more reasons why it has been such a great partnership. It was one of the best financial decisions the Lighthouse has made!      |
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