NETLINKS, May 2004

NOTE FROM THE CHAIRMAN

Dear Friends,

Welcome to our fourth edition of Netlinks. I would like to take this opportunity to thank the readership for your kind words, emails, and phone calls about this publication. Since initiating Netlinks, if Ruotolo Associates has helped just one institution advance its philanthropic mission as a result of this communication, it has been worth the time and attention we have invested in it. Please continue to forward your comments; we strive to bring a valuable, enlightening tool to those in the nonprofit world.

Warmest regards,

George C. Ruotolo, Jr., CFRE
Chairman and CEO

ANDREW CARNEGIE'S LEGACY
Written by Jay Caporale, CFRE, President and COO

“It was from my own early experience that I decided there was no use to which money could be applied so productive of good to boys and girls who have good within them and ability and ambition to develop it, as the founding of a public library in a community.” – ANDREW CARNEGIE

Andrew Carnegie donated 90% of his fortune during his lifetime. Looking back at the life of this great philanthropist, it is easy to see the influence Carnegie had on today’s donors.

A Scottish immigrant, Carnegie started life in America working in a cotton mill and then as a telegraph messenger. When Colonel James Anderson opened his personal library to working boys, Carnegie used the opportunity to educate himself, thus spring-boarding his career as entrepreneur, industrialist and, ultimately, philanthropist.

Carnegie benefited from America’s meritocracy, becoming a successful capitalist, and positively impacted our society through his subsequent philanthropy. He believed that the wealthy few in a society were obligated to give back to that society during their lifetime, in a way that benefited those with the character to help themselves.

Andrew Carnegie spent over $55 million to establish 2,509 libraries in Europe, the United States and the English speaking world (British Isles, Australia and New Zealand).
He is often referred to as the “Patron Saint of Libraries.”
He also gave away $333 million to churches, institutions of higher education and the arts.
He believed libraries in America would help immigrants like himself to assimilate to American principles and culture.
He was worth an estimated $400 million when he sold his steel manufacturing empire and retired.
The founding of the Carnegie libraries is the single most important event in American library history.
To this day, millions have benefited from Carnegie libraries worldwide.

This historical perspective on Andrew Carnegie presents libraries with an opportunity to position themselves as a viable recipient of community philanthropic support. It is understood that libraries receive ongoing municipal support for operations; however, it is the responsibility of library trustees and directors to attract the investment of individuals in the community to expand and enhance library collections, exhibits and technologies.

Over two years ago the Harvard Public Library in Harvard, Massachusetts - a town of 5000 - began the ambitious challenge of raising $1.5 million toward the total $7.1 million cost for a new library. RA initially conducted an action study in March of 2002, followed by the Advanced Gifts Phase of a capital campaign, which began in April of 2002. Because the current library building lacks the space to make any additions, the library will move to a historic landmark, the Old Bromfield School, situated on more than six acres in the center of town. The new library will include an addition and generous meeting space, making it the cultural and social center for Harvard.

In order to raise the funds needed for this large project, and to meet the strict guidelines governing the historic preservation of the Old Bromfield School, RA's associates approached the task by drawing from all resources available. Along with private fundraising, requests were made to the Library Trustees, the Massachusetts Board of Public Libraries, local and national foundations and to the town.

The Library Trustees pledged $500,000 from the library trust fund and each Trustee made an individual pledge to the campaign. During the Advanced Gifts Phase, individuals and foundations donated a total of $1.3 million, leaving $200,000 to be generated in the Public Phase of the campaign.

In January 2004, the Massachusetts Board of Public Libraries released their funds-- a year earlier than expected--proposing to give a $2.49 million state library grant to the town for the new library, contingent on the town passing a $2.6 million bond to cover the remainder of the project. The Chair of the Library Trustees asked Ruotolo Associates to return to provide counsel and manage the communication project over a three-month period, to prepare for the Annual Town Meeting and subsequent town vote, required to pass the bond.

Meeting weekly with a leadership committee of eight, Senior Associate Audrey DeLoffi provided the project management that resulted in weekly news articles in the local paper, development and mailing of two newsletters to every household, weekly open houses in the historic building that will house the new library, over 30 coffee gatherings in every neighborhood and a final postcard to every household to 'get out the vote.'

On March 27, 2004 the town overwhelmingly approved the town bond, with a 3:1 margin. This was no small task in these economic times of budget cuts. Now the leadership committee is focusing on raising a minimum of $200,000 with a plan that includes a mailing to every household and appropriate personal follow-up.

Special thanks to Ginger Kendall, Chair of the Library Trustees; Jim and Roseanne Saalfield, Campaign Co-Chairs; Roy Moffa, Campaign Co-Chair; Mary Wilson, Library Director; and the volunteers led by the leadership team of Pam Siddiqui, Laura Martineau, Susie Macrae and Cary Browse whose tireless efforts made a difference in their community.

ENDOWMENT CAMPAIGNS - THE FUTURE OF NONPROFITS
Written by Gene Aug, Ph.D., CFRE, Vice President

Although capital campaigns generally address brick and mortar needs for nonprofit organizations, another kind of capital fund drive is rapidly gaining in popularity throughout our country. Many organizations are currently considering campaigns to create or increase endowment funds. Nonprofits are recognizing the importance of providing financial security for their operational funding and emergency needs. Colleges have been raising these funds for years. Now, elementary and high schools, churches, hospitals, and other nonprofits are aggressively entering into the intense competition for endowment dollars.

Below you will read about a successful endowment campaign currently being conducted by a client of Ruotolo Associates.

In conjunction with the celebration of the 30 year anniversary of the consolidation of the Catholic schools in Springfield, Missouri, the system leadership decided to embark on a $1.6 million endowment campaign. The focus of The Next Generation Endowment Campaign is to secure future educational opportunities for teachers and students in the system’s three elementary schools and high school.

The proceeds of this effort are being placed in the general endowment fund. The primary emphasis of these funds is to increase teachers’ salaries. School leadership sees the recruitment and retention of quality teachers as the key issue for the future of the Springfield Catholic Schools.

The campaign has recently entered into its General Phase, and has already reached $1.2 million in gifts and pledges. Many generous leadership gifts have been pledged during the Advanced Gifts Phase. In addition, there have been more than $1.1 million in planned gifts designated for the Springfield Catholic Schools during this campaign. Those who doubted the success of an endowment campaign have become true believers. Donors see that their gifts will live forever.

Congratulations to the Director, Ann Meese; Director of Development, Mick Denniston; Chairs Randy Saul, Louis Griesemer, and Bruce Swisshelm II; and the Campaign Cabinet, for their dedication and hard work.

Dr. Gene Aug, Vice President of Ruotolo Associates, is serving as professional counsel for the campaign. Dr. Aug worked in the Springfield Catholic Schools for 15 years as principal, development director and director of the system. Ruotolo Associates and Dr. Aug are privileged to be assisting the schools in this most important endeavor.

If endowment funds would help your organization or institution meet its mission, please call Ruotolo Associates for a no-obligation discussion.

In Massachusetts, a Girl Scout Troop from North Andover recently spent time at Emmaus House – a homeless/family shelter in Haverhill, donating baby blankets, diapers and over 100 boxes of Girl Scout cookies to residents. This relationship is the result of a network of connections that began at Ruotolo Associates. RA President Jay Caporale sits on the board at Emmaus Inc. – which is also a former client – and invited his assistant, Evelyn, to attend a fundraising breakfast for the organization. Evelyn was impressed with Emmaus, began supporting it and also involved her fourth-grade Girl Scout troop in service projects to benefit the shelter. She brought the girls and their parents on a field trip to Emmaus House to learn about homelessness in their own community and in turn, encourage them to support the organization. The Cookie-Share program the troop conducted while selling Girl Scout cookies further exposed this particular nonprofit to many people in their community that had never heard of Emmaus.

This is just one example of the corporate culture that exists at Ruotolo Associates... encouraging all staff members to “live the firm's mission” and become involved with local nonprofits. As a result, RA staff members volunteer at a diverse collection of organizations throughout the country.

RA WELCOMES MEAGHAN BROWN

The firm welcomes Meaghan Brown as our newest Associate in the New England Office/Division. Meaghan is a 2002 graduate of the College of the Holy Cross in Worcester, MA. She continues to be active with her alma mater, and sits on the Executive Board of the Holy Cross Club of Boston. In addition, she is also a member of both the Alumni Council and the Advancement Council at her high school, Austin Preparatory School in Reading, MA. Prior to joining the firm, Meaghan worked at the New England Chapter of the US Fund for UNICEF.

Job Description:
School is seeking a Director of Development to work with Executive Director and Board of Trustees and to supervise two professional and one support staff. Responsibilities include implementation of comprehensive development program, including major gifts (individuals, corporations, foundations), board development, grant writing, direct mail, planned giving, public relations and volunteer management

Contact:
Forward a letter of application, resume and salary requirements to:
Theresa A. Shubeck, Senior Vice President
Fax: 201-568-8783
Email: info@ruotoloassoc.com

March 6, 2004
Harvard Business School
Social Enterprise Conference
President and COO Jay Caporale spoke on current fundraising issues.

March 20, 2004
Massachusetts Board of Library Commissioners
Library Trustee Symposium
Jay Caporale conducted workshop on
Building a Library Endowment

May 11-12
Ruotolo Associates' Annual Staff Retreat
Each year our staff gathers for workshops on topics of philanthropy and consulting. This retreat is another expression of our commitment to offer the best possible service to our clients.

Upcoming Events

Friday, June 25, 2004
Fundraising Day in New York
Marriott Marquis in Manhattan
America’s largest one-day conference on philanthropy, reaching more than 2,000 development professionals from around the country. George C. Ruotolo, Jr., CFRE, Chairman and CEO of Ruotolo Associates, has agreed to serve as a volunteer career counselor for the day.