The Center received a welcome financial boost when it was announced last week that local philanthropist Jim Ziegler, a member of the San Diego Foundation’s board of governors and a former Center boardmember, has put forward a three-year “challenge” grant to build on The Center’s pre-existing endowment with the San Diego Foundation. The San Diego Foundation is an organization that manages more than 680 community funds in San Diego County and works to improve the area through charitable giving.

“Every year, any agency having an endowment can count on that particular income to help with their long-term planning and sustainability,” said Ziegler, who has either volunteered or served on the board at The Center for the last 10 years. “That’s what I wanted to do – to help The Center build its endowment as a tool for their marketing arm; another tool in their basket in raising and requesting funds from the public.”

For every dollar The Center raises for the endowment fund over the next three years, Ziegler will donate $1.50. With Ziegler’s upper limit of $100,000, that means the grant will total close to $170,000.

“What I hope that it is, is an agreement that can be used as a model for others that are contributing challenge grants, whether they be for operating funds or endowment-building in our LGBT community,” Ziegler said. “Hopefully it is going to be used as an example for others to participate in perhaps larger or different ways than they have in the past. … There is so much good happening in the LGBT community that in my opinion is not getting the recognition or the support that it deserves.”

As with most endowments, money accrued from Ziegler’s challenge grant will be invested in perpetuity, meaning that The Center will begin receiving funds from the endowment prior to the three-year challenge being met. With compounding interest and sound investments, the endowment will increase over time, and the income generated each year will be given to The Center indefinitely.

“We are incredibly fortunate to be the recipient of such a forward-looking gift,” said Shawn Ingram, director of development at The Center. “Jim’s gift will strengthen our future and make certain our youth inherit a strong and stable community.”

Nonprofits are generally funded through a variety of sources, from fundraisers and individual donations to grants, endowments and, occasionally, government funding. For example, The Center raises operating costs through the “I Belong” campaign, where donors can give a specific dollar amount every month; a United Way program whereby an employee of a company can designate specifically that their United Way donation be applied towards The Center’s operating funds; fundraising events such as “Nightmare On Normal St.”, the annual Gala and Bingo nights; corporate underwriting and individual donations from prospect donors; the San Diego Foundation endowment; and other sources. “It all takes effort, dedication and commitment for any of those programs to be successful,” Ziegler said.

Ironically, Ziegler explained, sometimes a large endowment can be difficult for a nonprofit to coordinate. “I, over a period of weeks, was working with several organizations in order that The Center would be able to gleefully accept an opportunity for them to build their endowment at the San Diego Foundation,” he said. One of the organizations he consulted, which specializes in GLBT community funding opportunities, suggested that he work with the San Diego Foundation to designate staff and resources to help make the challenge grant “palatable” for everyone involved.

“The last thing that I wanted to do was present The Center an opportunity – that they would of course accept – but if it was going to be a burden to them because they have so many other things on their development plate, I didn’t want to make the offer,” Ziegler said. It was suggested that The Center get involved as soon as possible to help shape the details of the challenge grant, which eventually developed into the grant contract.

“That way, The Center could buy into this to accept the challenge, that was going to be challenging, but not particularly easy; I didn’t want it to be a slam-dunk either,” he said. Part of the contract stipulated that Ziegler donate an initial $5,000 to help cover any administrative and printing costs that The Center may incur for promotions they design to help make the grant successful.

“Now the ball is really in The Center’s court. Professionals at other organizations are willing, ready and able to help The Center be successful,” Ziegler said, adding, “There may be a segment of the population that wants to help them in their long-term sustainability and will want to join me in this campaign to build their endowment.”