TO:

Board of Directors

FROM:

Dennis Cheng, Director of Development & Philanthropy

RE:

Endowment Update

DATE:

December 7, 2012

Earlier this year, the Development Department began the critical first steps towards
designing a comprehensive plan for building a permanent endowment for the
Foundation. Our basic premise is as follows:
GOAL:
The goal of the endowment campaign is to raise $250 million in unrestricted gifts and
pledges by the end of 2016. The campaign will have three phases - the planning stage,
the quiet phase, and the public phase. We hope to celebrate the completion of the
campaign at the end of 2016, the year of President Clintons 70th birthday.
RATIONALE:
Currently, the Foundation must raise at least $15 million per year in unrestricted funds
to meet our annual operating costs and commitments to our various initiatives.
Assuming a 5% pay out, a $250 million endowment would cover the majority of the
core operating costs in perpetuity, thereby guaranteeing the long-term sustainability of
the Foundation.
Attached is a preliminary version of the case statement that is currently being used in
our conversations with potential stakeholders.
PLANNING STAGE (July 2012 December 2012):
We enlisted a national fundraising consulting firm (CCS) to assist with this effort.
Over the last six months, CCS has held strategic conversations with approximately 30
high-level prospects and potential stakeholders (see attached list) that include longtime and relatively new high-net worth supporters. These discussions were designed

to help craft a detailed campaign plan and shape a series of recommendations for the
Foundation.
Based on the issues raised and the feedback collected from the interviews, CCS is
prepared to present their report and recommendations to the Board, beginning with 5
core questions that the Foundation must be prepared to address before we can move
forward with the next phase of the process:
The future leadership of the Foundation: Who will be the public face of the
Foundation well into the future? Who will be the administrative leadership of the
Foundation in the future?
The long-term vision of the Foundation: What are the Presidents priorities for
the Foundation long-term? What will be the focus of its work? What is the
Foundations long-term operating principle?
Governance of the Foundation and the endowment fund: Who will oversee
the endowment fund? What is the composition and role of the Board going
forward? Will the Board be expanded to include philanthropists?
Use of the endowment funds: How will the endowment funds be spent? How
will the funds be invested and managed?
Internal buy-in and priority of an endowment campaign: Will the
endowment be the top fundraising priority for the President, the family, the
Foundation, and all of its initiatives? Will this be the final ask from the
President?
NEXT STEPS:
CCS is prepared to present their key findings and recommendations to the Board,
which will also serve as an opportunity for the Board to begin addressing the
questions above.
It is critical that this meeting take place as soon as possible, so that we can finalize our
campaign plan and begin soliciting pledges and commitments.

LIST OF ENDOWMENT INTERVIEWEES:

Name
Alan Patricof
Bernard Schwartz
Bill and Tani Austin
Casey Wasserman
Eli Broad
Elias Bou Saab
Elizabeth Bagley
Frank Giustra
Elaine and Gerry Schuster
Gerardo Werthein
Haim Saban
J.B. Pritzker
Jay Snyder
John Emerson
Jonathan Lavine
Mack McLarty
Marc Lasry
Pedro Torres
Pete Peterson
Peter O'Keefe
Pierre Omidyar
Sandy Weill
Stan Shuman
Steve Bing
Susie and Mark Buell
Susie Buffett
Ted Waitt
Terry McAuliffe

Status
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Pending
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Pending
Completed
Completed
Completed
Completed

ENDOWING THE CLINTON FOUNDATION

THE FIRST 10 YEARS

After presiding over one of Americas longest periods of peace and prosperity, President
IN JUST Clinton
OVER left the
White House with a unique perspective on the interdependence, challenges, 10
andYEARS,
opportunities of the
new millennium. As a private citizen, he quickly put to work his vision for a new
of foundation
THEkind
CLINTON
one that takes a transformative approach to global challenges, produces measurable
results,
FOUNDATION
HASand
works across sectors to give more people everywhere the chance to live out their
dreams.
GROWN
TO OVER
1,300 STAFF AND
President Clinton established the Clinton Foundation with the mission to improve global health,
VOLUNTEERS IN
strengthen economies, promote healthier childhoods, and protect the environment. To achieve
50 COUNTRIES
these goals, the Foundation fosters partnerships among governments, businesses, nongovernmental
DEDICATED TO
organizations, and private citizens, harnessing each sectors expertise and resources to build lasting
REDUCING THE
systems that make a meaningful and sustainable difference in millions of lives and communities
INEQUALITIES
around the world.
AND INSTABILITIES
OFproblem-solving
THE MODERNhave
The Foundations unparalleled convening power and collaborative approach to
made it one of the most effective and fastest-growing nonprofit organizations, WORLD.
implementing solutions
faster, cheaper, and better than any one sector could do alone.
I N J U S T OVE R 1 0 Y E A R S, T H E CLINTON FOUNDATION HAS GROW N TO OVER
1 , 3 0 0 S TA F F A N D V O LU N T E E R S IN 50 COUNTRIES DEDICATED TO RED U C IN G
T H E I N E QU A LIT IE S A N D IN STA BILITIES OF THE M ODERN W ORLD.

ACHIEVING RESULTS
By applying its transformative model across all of its initiatives,
the Clinton Foundation has produced dramatic results:
4.5 million people in developing countries are benefiting
from lifesaving HIV/AIDS medications at reduced prices
30 million U.S. students will have access to healthier school
meals at more affordable prices
2 million tons of greenhouse gases have been cut or abated
4.5 million trees planted through community reforestation
projects in Malawi and Rwanda
4,200 jobs created by more than 716 microenterprises
in Colombia
75,000 consulting hours worth more than $15 million donated
to support entrepreneurs in underserved U.S. communities
400 million lives in over 180 countries have been improved
through more than 2,100 CGI commitments valued at
$69.2 billion
$28 million in overall assistance has been raised and directed
to recovery and long-term development efforts in Haiti
since the 2010 earthquake

The Alliance for a Healthier Generation a partnership between the

William J. Clinton Foundation and the American Heart Association
is working to eliminate the childhood obesity epidemic in the United
States. The Alliance is creating healthier learning environments in
14,000 schools in all 50 states by providing healthier meal options
to students and brokering agreements with industry leaders to reduce
beverage calories in schools.

President Clinton and Chelsea Clinton tour the Mount Meru SoyCo construction site. Once the SoyCo facility is complete, it will provide jobs for
30,000 farmers 55% women to grow soybeans for the factory. Photo Credit: Barbara Kinney / Clinton Foundation

A VISION FOR A SUSTAINABLE FUTURE

The Foundation has successfully marshaled critical resources
year after year because of its unique ability to convene key
stakeholders, increase efficiency, advance replication and scale,
and promote systemic change. The Foundations strong track
record and strategic vision indicate that its best work is yet to
come. Over the next decade, even with modest growth, the
Foundation has the capacity to leverage $2.5 billion to $3 billion
to address current, emerging, and unforeseen global challenges
with innovative solutions to make measurable changes around
the world.
President Clinton and the Foundations leadership are steadfast
in their pursuit to guarantee the long-term sustainability of the
Clinton Foundation. Currently, 100 percent of the Foundations
operating costs are raised on an annual basis, and the Foundation
does not have an endowment. Since its inception, President
Clinton has been central to the Foundations fundraising and
convening strategies, raising the essential question:

HOW DO WE SUSTAIN THE WORK

OF THE FOUNDATION LONG AFTER
THE FOUNDING EFFORTS OF
PRESIDENT CLINTON?

GLOBAL
HEALTH

Closest friends, partners, and stakeholders of the Clinton

Foundation are being asked to help develop the best strategy
for building an endowment and securing the future of the
Foundation, while also ensuring annual funds are available for
its current initiatives.
An endowment is fundamental for the sustainability of the
Clinton Foundation and enduring legacy of President Clinton
and will:
Provide financial stability
Allow for strategic planning
Enable flexibility for the Foundation to respond to new and
unforeseen challenges and tackle emerging global issues
Ensure permanent core support for essential programs
Make funding the Foundations efforts even more attractive
and compelling to current and future donors
The Board of Directors of the Foundation will manage the
endowment fund through an investment committee, working
closely with its key advisors and supporters who are deeply
committed to the vision of President Clinton.

As President Clinton, the Foundation leadership, and their

core supporters enthusiastically look to the work that needs to
be accomplished in the second decade and beyond, a robust
endowment is essential to the implementation of that vision.
The timing of an endowment campaign is ideal: the President
and his family are highly engaged in the endeavor, the need
is clear to all those who support the Foundation, and public
awareness about the achievements of the organization is high.

Today, the
Clinton Foundations
work addresses

A CAMPAIGN TO ENDOW
THE CLINTON FOUNDATION

THE GOAL OF THE ENDOWMENT

CAMPAIGN IS TO SECURE $250 MILLION
IN GIFTS AND PLEDGED COMMITMENTS
BY 2016 WHEN PRESIDENT CLINTON
WILL CELEBRATE HIS 70TH BIRTHDAY.

ECONOMIC
INEQUALITY

CHILDHOOD CLIMATE
OBESITY
CHANGE

FREQUENTLY ASKED QUESTIONS ABOUT THE CLINTON FOUNDATION

WHAT ARE THE CLINTON FOUNDATIONS
MAJOR PROGRAMS?
The Clinton Foundation works to improve global health,
strengthen economies, promote healthier childhoods, and
protect the environment.To accomplish these goals, the
Foundation has established separate initiatives, each with a
distinct mission. Each of these initiatives has attracted strong
financial support and outstanding partners. These partnerships
represent leading global philanthropists as well as generous
contributions from concerned individuals worldwide.
The Clinton Foundations current initiatives:
The Clinton Health Access Initiative expands access to
health care and treatment for HIV/AIDS, malaria, and
other diseases in developing countries.
The Clinton Development Initiative in Malawi and Rwanda
provides farmers with the tools they need to increase their harvest
and income as well as support their families and communities.
The Clinton Giustra Sustainable Growth Initiative empowers
individuals in developing nations with resources to improve
income generation and work themselves out of poverty.
The Clinton Global Initiative convenes global leaders to
create and implement innovative solutions to the worlds
most pressing challenges.
The Clinton Climate Initiative implements programs that create
and advance solutions to the root causes of climate change.
This initiative helps to reduce reliance on oil, saves money for
individuals and governments, creates jobs, and grows economies.
The Alliance for a Healthier Generation is leading the charge
against the childhood obesity epidemic by engaging directly
with industry leaders, educators, parents, doctors, and kids.
The Clinton Economic Opportunity Initiative promotes
economic growth in economically distressed and emerging
communities by enlisting Americans with business expertise
to help local entrepreneurs compete and succeed.
The Clinton Foundation in Haiti focuses on private sector
investment and job creation in order to create long-term,
sustainable economic development throughout Haiti.
The Clinton Health Matters Initiative, new in 2012, works
to improve health and well-being across all generations in
the United States. CHMIs ultimate measures of success will
be a reduction in the prevalence of preventable disease and
associated health care costs and an increase in well-being
indicators across the country.
The Clinton Presidential Center and Library in Little Rock,
Arkansas is a premier educational and cultural venue that
has attracted more than two million visitors from around
the world. The Center includes the Little Rock offices of the
Clinton Foundation, the William J. Clinton Presidential
Library and Museum, and the University of Arkansas
Clinton School of Public Service.

HOW EFFICIENT IS THE

CLINTON FOUNDATION?
The Clinton Foundation received $242 million in contributed
income in 2011.
Of these funds:
91.6 percent were applied to programs
4.4 percent were spent on administration of the Foundation
4 percent were spent on fundraising costs
WHAT IS THE PURPOSE OF AN ENDOWMENT?
Endowments have played a critical role in the growth and
development of many of the nations leading non-profit
institutions. Over time, endowments have been built to enable
leading organizations to securely advance their missions in the
long term. They offer protection from the uncertainties of the
economy and the instability of other forms of funding. An
endowment provides a stable income source in perpetuity.
WHAT ARE THE SPECIFIC BENEFITS OF
AN ENDOWMENT?
Endowment income provides key benefits:
Financial Stability: An endowment enables the institution
to move forward in unstable environments and can smooth
out fiscal year funding when needed.
Risk Capital: An endowment allows the organization to take
some risks, allowing for expansion and innovation.
Financial Control: Organizational control and management
of the endowment, particularly unrestricted endowment, is
the bedrock of security for the organization.
Donor Incentive: The existence of an endowment is an
incentive for donors to give to the organization because an
endowed organization is perceived as stable and financially
mature. Endowment funds attract large current and
deferred gifts because it is a vehicle of fund investment
and enhancement; a donors gift will grow with sound
investment and spending practices.
Longevity: An endowment ensures the permanence of the
institution and provides donors with the opportunity to
contribute to their own legacy investment in the endowment
will continue to make a difference beyond the donors lifetime.
WHAT ARE EXAMPLES OF THE SIZE
OF ENDOWMENTS AT OTHER
LEADING NONPROFITS?
Smithsonian Institution

$977 million

Carter Center

$419 million

The Freedom Forum

$409 million

CARE

$341 million

Volunteers of America

$277 million

Brookings Institution

$275 million

Rotary Foundation

$241 million

MORE THAN $1.3 BILLION IN DIRECT FUNDING

HAS BEEN GENERATED FOR CLINTON FOUNDATION
PROGRAMS SINCE ITS WORK BEGAN AT A COST OF
LESS THAN 4 CENTS PER DOLLAR FOR MANAGEMENT,
AND 4 CENTS PER DOLLAR FOR FUNDRAISING.
Building on a lifetime of public service, President Bill Clinton
established the William J. Clinton Foundation with the mission
to improve global health, strengthen economies, promote
healthier childhoods, and protect the environment by fostering
unique partnerships among governments, businesses,
nongovernmental organizations, and private citizens
leveraging their expertise, resources, and passions to turn
good intentions into measurable results.

CLINTONFOUNDATION.ORG