Is fundraising plan a 'game changer' for Lake County forest preserves?

The Lake County Forest Preserve District may be seeking $20 million in donations to support tree planting and other core initiatives far into the future.

The interest income on such an endowment would provide $800,000 a year to plant trees near trails and parking lots, as well as large-scale reforestation and habitat restoration initiatives, officials say.

“This is a game changer for the district,” Executive Director Ty Kovach said. “This is something that really goes that extra step.”

As proposed, donations would be made to the endowment fund of the Preservation Foundation of the Lake County Forest Preserves, the district's charitable arm.

An endowment is regarded as a reliable long-term hedge against future economic and fundraising challenges, as well as a budget safety valve.

In an endowment, the initial gift is preserved in perpetuity. Pools of money are invested, but only a portion of the return is available for expenditures. In this case, the district's policy allows a maximum of 4% of proceeds to be spent each year, meaning an endowment of $20 million would generate $800,000 a year for district use.

Kovach has been testing the water to see what initiatives would be supported by potential donors.

“You don't want to set a goal that's unattainable,” he said.

“One of the challenges I have is having the story. Now we have something to ask our donors for — this is what we want you to invest in.”

Since the economic downturn of 2008, the district has seen a significant loss of operating revenue because of decreasing property values leading to lower revenues. To deal with that, the district has delayed major capital projects, decreased staff, reduced programs, torn down unneeded buildings and developed a 100-year strategic vision to focus decision making.

With limited opportunities to cut costs further or find other revenue sources, the district faces “the real threat” of falling behind on its standards for safety, cleanliness and the care of more than 20,000 acres, forest commissioners are being told.

There foundation's endowment stands at $281,570 and it has received a pledge of another $250,000.

Besides providing needed funding, the endowment could serve as a source of matching funds often needed to obtain grants and donations, according to the district.

Kovach on Monday presented the idea to the forest board's operations committee. It next will go to the planning and finance committees and the full board, before going to the foundation board.

“We're always looking for ways we can be financially sustainable because that allow us to be environmentally sustainable,” forest district Commissioner Ann Maine said.

“This is really long-term thinking for a long-term problem,” Commissioner Terry Wilke added.