Devaneys’ pledge $1 million challenge grant
Money will be used for everything from arts to education to the environment
By KELLY JOSEPHSEN

Talk about a quick start.

The Key Biscayne Community Foundation is just a day old, and already it has the promise of a $1 million gift, that is, if community members are willing to do their part.

Lifelong Key Biscayne residents John and Selene Devaney issued a $1 million challenge grant, meaning they will match every donation to the foundation up to $1 million.

“I can’t wait to write a check for $1 million”, John Devaney said. “We think it is the right thing to do. Being lifelong residents of Key Biscayne, we really wanted to be able to give back to the community. And we thought a challenge grant would set a good example for other Key Biscayne residents to be generous to this organization”.

The Devaneys’ generosity is just one reason creators of the foundation are optimistic. The group held a kickoff party at The Ritz Carlton Key Biscayne last night, announcing their intention to raise money to help everything from the arts to education to the environment.

Ana Gloria Rivas-Vazquez, a board member, called the Devaney gift a big boost.  Vice Mayor Jorge Mendia, also on the board, said it is an incredibly generous offer.

As for Devaney, who himself is a member of the foundation’s founding board, he sees it as a way to get an organization he supports off on the right foot.

“My wife and I have been interested in doing something like this for a long time.  We think there are a lot of needs not being covered by the city government, like cultural and athletic programs. My wife has great ideas about trying to bring back a drama program and hosting a winter concert series where families can listen to live music in the park”.

But Devaney knows those things take money.

“I think this is about the minimum of critical mass that’s needed for this type of entity to get off the ground”, he said of his challenge grant.

If he gets to match a full $1 million, Devaney noted, that gives the foundation $2 million. If that money earns a conservative 10 percent return, it will take in $200,000 a year.

But Devaney, the founder of a successful investment firm, thinks he can help the board do better.  “Since I’m in the money management business, I think I can achieve 15 to 20 percent returns. That will provide more of a benefit to the community”, he said.  Devaney plans to give the board free investment advice.  From there, he said, the possibilities are endless. 

“This is just the beginning of what could be an incredible organization. A foundation like this could collect $10-20 million. If it grew to an endowment of $10 million and was earning 15 percent, that would be a million and a half a year to donate to service organizations”.

Devaney hopes his gift can help the foundation hire a permanent staff. 

“I wanted to make sure we could have one or two full-time employees”, he said.  “In order to support that and to get the overall support of the residents of Key Biscayne, I think an organization like this needs to have a certain amount of endowment right from the beginning”.

Devaney is also giving the foundation use of space in his new company headquarters at the former Offices by the Sea complex at 240 Crandon Boulevard.  But he’s most excited about getting other Key Biscayner’s in the mood to give.  “I really need to know that all of Key Biscayne can match a million dollars,” Devaney said.  “I can think of about 10 business owners off the top of my head who can well afford to give back to their community. If they can each give $50,000, that’s half of it right there.”

Therefore, Devaney is optimistic that his challenge will be met.

“I’ve only really had discussions with some of the people my wife and I know on the Key, and they say they’re going to do everything they can to help to raise the funds,” he said.

Rivas-Vazquez isn’t surprised to hear that. 

“I think Key Biscayne is an overwhelmingly generous community,” she said. “We think that there are people to want to contribute to making this a better place to live.”

There are certainly residents with the resources to do so, she added.

“We have people who have incredible financial resources. We may have a small town feel, but we have all the amenities and all the resources of a sophisticated community,” she said.  “I think we have several factors that would contribute to a successful foundation.”

Board members haven’t yet established a specific goal for how much money they hope to keep in a permanent endowment.  That will come later.

In the meantime, Mendia is happy that the foundation already has a jump start on making an impact.

“Community foundations typically start off very slowly,” he said.  “Devaney has given us the opportunity to move things along faster. We automatically have an endowment that can make significant grants, so we’re already starting to help the community.”