Only 1 percent of the foundation’s funds are used for
administration fees
By Erin Cooper, Special to the Dispatch
Gilroy – The Gilroy Foundation, which has given out more than $560,000 in grants, has helped dozens of local non-profit organizations, school groups and civic organizations in the past 25 years.
Founded in 1980, the foundation combines the donated money of different individuals and corporations into an endowment that will last forever.
“Having an endowment means the principal is never touched, so it’s like a permanent savings account forever,” said Executive Director Donna Pray. “The interest is what is used for the grants.”
To earn the most interest, the Gilroy Foundation, which now has $3.2-million in assets, $1.7-million of which is a permanent endowment, teamed up with the Community Silicon Valley Foundation which has more than $600 million in assets. Each year, 5 percent of the endowment is doled out to different non-profit organizations and scholarships. They have also teamed up with three other local organizations and working with others to help them with their investment goals.
Just 1 percent of the foundation funds are used for administration fees, said Executive Director Donna Pray. The remaining funds – after the 5 percent is given out in grants and the 1 percent is used for administration fees – is added to the endowment. Last year the Gilroy Foundation earned 13 percent interest and gave out 5 percent in grants. One percent went to administration fees. The remaining 7 percent went to increase the endowment.
The endowment has grown steadily over the past two decades. In 1985, $100,000 made up the total endowment.
“Now we are starting to partner with other non-profits to help them out,” Pray said. “For instance, the school district, they have a scholarship fund that’s over half a million dollars and they had this money invested and only made 1.3 percent in interest. We allowed them to become part of us as a non-endowment, which means that at anytime they want they can take the money back. The non-endowment doesn’t help us because we only make interest on permanent endowments, but it helps them out and that is what matters.”
The Gilroy Foundation was created by a group of volunteers who wanted to make a difference. With the help of the community, they have assisted many nonprofit organizations and enhanced the lives of individuals through different grants and scholarships.
“We wanted to do it to contribute to our community,” said Judy Bozzo, one of the charity’s founding members. “The fact that it is an endowment means it’ll be there forever which is appealing to most people who want to donate to a fund.”
She and her husband Sam Bozzo have even set up their own unrestricted family fund.
“Our grant is an undesignated fund so it is available for the different grants given out each year,” she added.
Every December, non-profits on the foundations database are contacted by letter or e-mail to let them know they can apply for a grant. Applications must be filled out and turned in no later than Jan. 31. Six members of the grants committee, anonymous individuals chosen from the board, read the grants independently.
“The grants committee all gets together, each person handed say … 40 different applications to read independently, and then they rate them 1 to 40. Everyone then gets together and talks about their rating and chooses the top ones to give grants to. Normally we give out 14 grants depending on how much they are asking for,” Pray said.
The operating costs of the Gilroy Foundation are covered by annual fundraising at the Garlic Festival’s wine booth and at the annual “A Day In the Country Auction.” The Garlic Festival is held the last week of July at Christmas Hill Park and “A Day In the Country Auction” is held every fall at different locations.
Pray and her friend Patty Filice started the first Wine Auction in 1988.
“We did it as a PR project and thought it would be great if we made a couple thousand dollars. Well, we ended up making over $20,000 because it was fantastic.” Last year they made $45,000 at their “A Day in the Country” auction.
If you’re interested in setting up a family fund or making a donation, call 842-3727, or visit www.gilroyfoundation.org.
