Building an Endowment: A Case Study of the Corona Foundation
By Nonprofit Enterprise and Self-Sustainability Team | August 2001 | View Full Text
Abstract
Foundations around the world are taking increasing advantage of earned income opportunities to raise money for their programs and endowments. However, directors and staff most often do not have the specific experience required to evaluate and assess business opportunities. Even where they do have this experience, they still have few models for non-profit business in their own countries. To build the capacity of foundation leaders in creating earned income programs in their own institutions, Synergos has developed case studies on earned income programs that grantmaking foundations have implemented successfully.
Corona Foundation is a private corporate non-profit foundation located in Bogota, Colombia, that supports efforts to improve management of social processes in the country. It was established in 1963 by the Echavarria Olózaga family, a prominent Colombian family that owns the Corona Organization. The Corona Organization is a conglomerate of Colombian companies dedicated mostly to manufacturing, selling, and marketing industrial construction and home products, in Colombia and abroad. As a whole, Corona has about 6,500 employees, eight manufacturing plants, and two commercial chains.
This paper discusses Corona Foundation's financial information, self-financing information and start-up, self-financing management (management team and strategy), policy and regulatory environment, and several outcomes of self-financing.
Key lessons learned from this case study are the following:
1) Building an Endowment while Grant-making- a policy of using cash donations to develop its social programs and projects and asset donations for reinvesting in its endowment was a deliberate strategy which allowed the organization to continue to grow sustainably while meeting its mission.
2) A Conservative Investment Approach- resulted in a steady rate of growth
3) Strong Internal Financial Expertise- ensured that the best interest of the Foundation has always been at the core of all endowment-building decisions and has also ensured strong financial oversight and monitoring by the Council
4) Know One's Own Limits- maximizing limited resources by maintaining a lean and efficient administration while recognizing limitations in both capacity and skills
5) Spin-off Benefits of Endowment Building- attests to the greater flexibility and financial discipline the Foundation is able to bring and contribute to developing other organizations in the country that in turn strengthen Colombia's social development.
Philanthropic Actors & Issues | Individual & Family Philanthropy | Business Philanthropy & Social Investment | Foundation-Building & Philanthropic Practices | Resource Mobilization | Foundation & Philanthropy Case Studies | Americas | Colombia
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