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New funds spur growth of Union City Community Foundation

January 11, 2022

It took some 14 years for the Union City Community Foundation’s assets to reach $4 million, but only two more years to reach $7 million.

Some of that recent growth is due to increases in the foundation’s investments, but much is thanks to new funds being created within the foundation. Since 2019, 13 new funds have either been established or are in the process of being created, with a total initial value of more than $1.1 million.

Nine of those new funds, totaling $1,017,000, have been or are being established in 2021. They include funds created by the Union City Community House Association, Union City Presbyterian Church, the Neil and Jean Dewey Medical Scholarship Fund that was previously within the Presbyterian Church, and the First United Methodist Church of Union City.

Those 2021 initiatives add momentum to four funds created in 2019 and 2020, totaling $86,000. They are the Earl M. Shreve Family Fund, the Joanne Homa Patterson Memorial Fund, the Joanne Homa Patterson Memorial Scholarship Fund, and the Union City Historical Society Fund.

Future distributions from these new funds will benefit the organizations they were created by, and/or the community at large. The foundation in 2021 distributed $262,637 in grants and scholarships, some of which leveraged additional community investments from other sources.

“Working in tandem with Union City Pride and Union City Borough, we have each been able to engage grant matching opportunities at the local, regional and state levels,” said UCCF board chairman Steve Jones. “We have accomplished much more by leveraging matched dollars and combining to share projects. Spreading the work load has helped continue this transformational growth.”

Jones said the newly established “agency” funds represent a somewhat new chapter in the community’s recognition of how the foundation can advance their organizational goals.

“Local agencies are recognizing that the UCCF has demonstrated success, and is a cornerstone of the community that will continue to grow long after we are all gone,” he said. “The next generation will be able to take the reins where others left off.

“The foundation is the security blanket for agencies to know their funds will grow in value, while they continue to receive annual disbursements,” Jones added. “We all are very aware that board members of agencies change from year to year, and that keeping an eye on fund security and growth is challenging while still having access to the funds. Once funds are established with the foundation, these agencies can concentrate on what they do best.”

As for families that have established “named funds” with a minimum investment of $10,000, Jones said securing Union City’s future is their foremost objective.

“These families believe in Union City and want to leave a legacy,” he said. “The UCCF has tight tolerances with many checks and balances to ensure and enable future success. These family gifts are minimizing tax burdens while providing direct benefits that will grow in value and serve the Union City area for generations to come.”

The Rev. Rob Willert of the Union City Presbyterian Church said the church believes the foundation can do a better job of administering and growing both the Dewey Medical Scholarship and the church’s investments.

Kevin Webb, chairman of the First United Methodist Church’s board of trustees, said the church was “looking for a funds management team that we believed would provide investment expertise resulting in improved and consistent returns on our investments, which would allow us to expand our ministries over time.”

“We also believe UCCF’s established investment management strategies will alleviate some of our own internal investment management shortcomings, such as a lack of expertise and change of personnel over time,” Webb added. “An added bonus is the exposure to outside philanthropists who now have the opportunity to add funds to our existing investments in support of our church’s ministries.”

Webb noted the church has several members involved with the foundation, who “were able to instill a high level of confidence and trust with UCCF.” He also said that while ownership of the funds’ principal has been given to UCCF, the church can make principal withdrawals as long as the purpose is consistent with the fund’s original intent and the church’s general mission purpose. Annual distributions from the various accounts also remain under the church’s control.

“From an accountability standpoint, there is an added level of comfort knowing that UCCF activities are governed by oversight of the Erie County Orphans Court,” Webb concluded. “As such, investing and spending activities are both held to a high level of accountability by the legal system.”

Steve Jones said growing the foundation from 16 named funds to 29 in just three years – an 81 percent increase – is “a milestone beyond our dreams,” but that with continued community awareness and success, “the foundation’s footprint will continue to grow.”

Jones noted the foundation in 2018 embarked on a challenge to go beyond traditional grant-making, and to take a more proactive community leadership role. In concert with the borough, nonprofit Union City Pride and others, he said, “We have jointly aimed our vision at being a more vibrant, progressive and welcoming community.

“We are learning each and every day, and are working to get better at what we do,” he said. “It will be fun to look back 10 years from now to see what the community has achieved together.”