LETTER FROM THE PRESIDENT | Our Economic Response

March 16, 2009

Our Economic Response

Letter from Lee Roper-Batker, president and CEO, Women's Foundation of Minnesota

As a donor, grantee or friend of the Women’s Foundation of Minnesota, I want to share with you how the economic challenges facing all of us are affecting the Women’s Foundation and advise you of the steps we’re taking during these trying times.

As a statewide, social change community foundation, our goal is to align strategic goals and outcomes with the financial realities we face. At the same time we must look at sustainability strategies that will assure the Women’s Foundation mission to invest in social change to achieve equality for all women and girls in Minnesota.

Because of the steep decline in the financial markets, our endowment, like the endowments of all foundations, has suffered a substantial loss in value. At year-end 2008, the cumulative loss was 22.4 percent.

The good news is that we rank in the top quartile of performance for institutional investing¬ my praise and thanks go out to our stellar Investment Committee. Our endowment provides roughly 30 percent of our operating budget; the rest of our revenue comes from donors, foundations and corporations.

And, more good news is that we are well positioned for the future. Our $15 million endowment campaign is nearly complete and has provided us with added resources and stability during this economic downturn. This campaign was the centerpiece of our last five-year strategic plan.

Over the past 10 years, the Women’s Foundation has boldly built on our success. We enlarged and focused our grantmaking by establishing our signature girls Building Economic Success Together (girlsBEST) Fund. We raised the capital to endow a permanent fund for girls (a first at any women’s foundation in the world) to accelerate our investments in social change. And, we still plan to double our competitive grantmaking by 2017!

I am proud to tell you that despite the economic challenges we face at the Women’s Foundation, we have made a commitment to not reduce even one dollar of grantmaking during these times. In fact, we will increase our grantmaking by 4 percent this year, while reducing our total expenses by 15 percent. We know that women and girls are most affected in an economic downturn, as they experience even greater violence and poverty, and fewer options.

Also, we will keep our funding focused on social change. We believe that we must change attitudes and behaviors, as well as institutions and policies in order to end the sexism, racism and poverty that keep women on the bottom rung of most indicators.

We have finalized a strategic plan for the next five years (2010-2014), which takes effect on April 1, 2009. A new centerpiece strategic goal of the plan is to leverage the foundation’s expertise and assets to broaden support for women and girls equality.

Yet while we are sustaining and increasing our grantmaking, we have had to make cuts in other places, mainly in personnel. I want to take a moment here to acknowledge and honor the creative, strategic and cooperative ways in which our staff teamed to discuss and make these difficult changes.

Here are the main ways we’ve reduced expenses:

1. We have frozen all salaries and benefits, and some of us (myself included) will take pay cuts for next year.

2. Our vice president, Carol McGee Johnson, will move from a staff role to a consulting role to help us evaluate the impact of our work and Theory of Change in our new strategic plan (see attached Planning Overview).

3. Our development director, Amy Cram Helwich, is leaving and we will not rehire for this position.

4. Three staff/positions have moved to part-time: Charlotte Flowers (program officer), Erin Ceynar (assistant development director), and Heidi Walsh (office manager).

5. We have cut all staff development dollars, advertising dollars and nearly all design and printing dollars. As a result, we’ll rely heavily on digital communications (email, website). I’d greatly appreciate it if you please forward your email address to Dorothy at dorothy@wfmn.org.

While these developments are sobering, I feel hopeful for the future. We have all -- staff, board, grantees, donors, volunteers -- worked so hard to position the Women’s Foundation to where it is today: ready to take that next big step to leverage and provide greater leadership to build increased support for women and girls in Minnesota. And, we will take that step -- just a smaller one next year.

I know these economic times are difficult for everyone, so thank you for your support, understanding, and continued partnership. Each of you is a powerful contributor to the Foundation's success and its ability to advance social change and equality. Together, we will weather this economic storm.

Onward,
Lee Roper-Batker, President/CEO

P.S.

I welcome your input and questions at lee@wfmn.org. Thank you.