Kelly Smith is a full-time philanthropist.
In 2007, Smith, former wife of Aliso Viejo-based Quest Software Inc. Chairman Vinny Smith, gave $120,000 to CureDuchenne, a Corona del Mar nonprofit that’s seeking a cure for a type of muscular dystrophy.
She also gives to nonprofits that provide food, clothing and shelter to the needy.
Like many of the county’s wealthy, Smith channels her giving through the Orange County Community Foundation, an Irvine group that works with donors on their giving.
Smith serves on the foundation’s board, along with retired First American Corp. Chairman Donald Kennedy and former homebuilding executive Julie Hill.
The foundation started in 1989 as a way for people to leave money to the community after their deaths. It has evolved into an adviser that helps donors come up with plans for giving during their lifetimes.
The group helps them “make whatever impact they want to make,” said Shelley Hoss, foundation president.
Donors set up individual funds, family funds or donate to existing funds.
The foundation, which employs 17 people, manages about $100 million.
It has 254 “donor advised” funds,such as Smith’s,totaling $60 million. There are 136 funds,including those left in wills,that fund charities at the discretion of the board and are worth $38 million.
Local Charities
The foundation gave $20 million to local charities for the 12 months through June 30.
Recipients included: Santa Ana-based Moms Orange County, which helps women and their babies; Lake Forest’s Healing Odyssey, which gives assistance to cancer survivors; Second Harvest Food Bank Orange County; Bolsa Chica Land Trust; UCI Medical Center; and South Coast Repertory.
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In the past five years, the foundation has granted nearly $70 million.
“The foundation gives people who have a desire to give a reliable vehicle,” said David Seigle, a board member, former executive at FileNet Corp. and current chief executive of Westlake Village-based In-Three Inc., which converts movies in 3D.
Seigle, who lives in Santa Ana, has a fund at the foundation set up for his children, so they can give to the charities of their choice later on.
The foundation researches and evaluates local nonprofits. It has about 1,000 nonprofits in its database and makes about 100 site visits a year, along with reviewing charities’ financial information.
Foundation donors, typically self-made entrepreneurs in their late 50s and early 60s, want their money to be used in a prudent, effective way, according to foundation President Hoss.
Allen’s Involvement
A few years back, Dick Allen and his wife were interested in getting more out of their giving. So they took a seminar on “high impact” philanthropy at Stanford Graduate School of Business.
Allen, founder of Dima Ventures, an angel investor, made his living as cofounder of Caremark Rx Inc., now part of CVS Caremark Corp.
At the seminar, Allen said he learned about community foundations. There are about 2,000 across the nation.
He said he didn’t realize there was one in his own backyard. When he got back home, he met with Hoss.
“Shelley as an individual is fun to be around, energetic and committed to making a difference,” Allen said.
He opened a fund, giving to charities that help children with type 1 diabetes, which his granddaughter has.
Allen donates to his fund with stock proceeds from his various investments.
“If they do well, I benefit,” he said.
The foundation sells the stocks and manages the cash, he said. Because he donates the securities, he avoids capital gains taxes.
Hoss recruited Allen to the board about four years ago. When she first came calling, he was chairing Newport Beach’s Hoag Memorial Hospital Presbyterian’s board, so he begged off until his term ended.
“Shelley kept track of that,” he said.
When he finished at Hoag, she called him again. He’s now chair of the foundation’s board.
Socorro Vasquez, another board member, and her husband, Ernesto Vasquez, first got involved with the foundation by giving to the Hispanic Education Endowment Fund, which gives scholarships to architecture and engineering students.
Her husband is a founding partner of MVE & Partners, an architectural firm in Irvine.
Later, Vasquez and her husband set up a fund for their kids. They put in about $2,000 a year, which is tax deductible.
“Our goal is to build that so that we have a larger pool to give out,” she said. “To me, this is a gift that I can give them so they realize it’s not just something that you take lightly,that this is a purpose in life.”
The foundation charges a fee of 1% to 2% of the fund’s value per year for managing the money.
The donations are invested conservatively, according to Hoss. Like most investments, the foundation’s funds saw declines last year, falling 21% on average,still better than Wall Street’s 40% decline. In 2007, the foundation’s funds were up 16%.
Tracy Branson, who used to be an auditor for Ernst & Young LLP, manages the foundation’s funds.
Boss Hoss
Hoss has worked for nonprofits her entire career, starting at the Orangewood Children’s Foundation in Santa Ana in 1986. She was employee No. 3.
William Steiner, a former Orange County supervisor who then was Orangewood’s executive director, hired Hoss out of graduate school at the University of California, Irvine. In 10 years there, she moved up to second in command.
Hoss spent several years as executive director at Girls Inc. of Costa Mesa, where she was well entrenched, happy and not looking for other work.
The Community Foundation board recruited her to replace founder Judy Swayne, who was retiring.
Swayne’s husband, Keith Swayne, owned Case-Swayne Co., which sold to Bestfoods, now part of Unilever PLC.
Swayne recruited prominent county residents to serve on the board, including Parker Kennedy of First American, Thomas Riley, former Orange County Board of Supervisors chairman, and Judy Hoiles Threshie, granddaughter of Orange County Register founder R.C. Hoiles.
Current board member Hill recommended Hoss to lead the foundation.
Hill, founder and former president of Newport Beach-based housing developer Hiram-Hill Development Co., serves on several public company boards including Australia’s Lend Lease Corp.
Hill knew Hoss because she was a donor to Girls Inc.
“She has a very interesting combination of skills,” Hill said. “She could be Carly Fiorina, but she’s chosen to apply her talents to the philanthropic arena.”
May will mark Hoss’ 10th year at the foundation.
She’s moved the group into new areas, such as rallying the next generation of givers, including Bill Lyon, who is Gen. William Lyon’s son and president of Newport Beach-based William Lyon Homes Inc., and Randall Bone, president of Palm Desert-based Sunrise Co.
The foundation’s also targeting not so wealthy donors. A donor-advised fund can be set up with a minimum of $5,000, Hoss said. It has funds that people can give $5 or $10 to, such as memorial funds, Hoss said.
With the recession, the foundation started Seed the Need, Seed the Change to help families in crisis with food, housing and other assistance.
“This was really totally from the heart of the board,” Hoss said.
The 30-day fundraiser used $250,000 from an endowment and $250,000 from foundation donor funds to raise another $250,000 from the community.
The foundation was due to select grant recipients last week and is planning a donation ceremony later this month.
