Good Neighbor Foundation

## How to Approach the Good Neighbor Foundation

The Good Neighbor Foundation is a family-managed private foundation led by Michael Shimasaki, with directors Barry Maulding and Chris Sugamura. With approximately $9.5 million in assets, it operates as a lean organization with a tight inner circle making funding decisions.

Key alignment signals: - Education-first mission: The foundation's entire grantmaking history centers on educational access — particularly for disadvantaged youth and underserved communities. Any approach must demonstrate a direct, measurable educational impact. - Deep relationship model: This is a preselected/invite-only funder. The foundation concentrates its giving in a small number of high-trust, long-term partnerships rather than casting a wide net. The Yucatan Education Project has received grants every year from 2022–2024, totaling over $380,000 — a clear pattern of deep investment in proven partners. - Operational involvement: The foundation owns the Crane Island camp property directly, indicating hands-on engagement rather than purely check-writing philanthropy. Organizations that invite foundation leadership into program design or site visits may resonate more. - International perspective: Despite being Seattle-based, the foundation funds internationally (Mexico) and domestically across multiple states, suggesting openness to geographically diverse projects if they align with core education and youth development themes.

Theory of change: The foundation appears to believe that concentrated, sustained investment in a small number of education-focused organizations produces more impact than broad, shallow grantmaking. They invest in infrastructure (school construction, camp property) as well as ongoing operations (scholarships, unrestricted support).

## Funding Patterns and Grant Analysis

Grant volume and size: - The foundation awards 1–9 grants per year, with significant variation - Typical grant range: $3,000–$160,000 - Total annual giving fluctuates: $33,335 (2019) to $256,357 (2020) to $160,000 (2024) - The large swings suggest capital/construction grants in some years alongside smaller operational support

Key patterns: - Dominant grantee: Yucatan Education Project receives 80–95% of annual giving, indicating this is the foundation's flagship charitable partnership - Two-tier structure: One major multi-year commitment plus small ($3,000) unrestricted gifts to secondary organizations - Construction phase → operations: The 2024 Yucatan grant was designated for "Construction" while earlier grants were "Unrestricted," suggesting the foundation funded school construction and is now shifting to operational support - Geographic spread: Washington state and Mexico are primary; grants have also gone to organizations in California, Arkansas, Florida, Idaho, Montana, and Tennessee in earlier years - Sector focus: Education (dominant), marine research, faith-based community services

## Peer Comparison

The Good Neighbor Foundation sits in the mid-range of private family foundations in the Pacific Northwest focused on education and youth development.

Comparative observations: - Good Neighbor Foundation's payout rate (~1.5% of assets) is below the IRS minimum distribution requirement of 5% for private foundations, though this may be offset by direct program expenses (Crane Island camp operations). Total charitable disbursements were $473,719 in 2024 when including direct operations. - The foundation is unusual among peers for its significant international giving component (Mexico), while most similar-sized WA foundations focus exclusively on local communities. - Its invite-only approach contrasts with most peer foundations that accept unsolicited applications, reflecting the family-managed governance structure. - Among San Juan Islands/Orcas area foundations supporting youth, Good Neighbor Foundation has the strongest asset base but one of the smallest grantee pools.

## Recent Activity and Strategic Direction

2024 financial performance: - Revenue: $350,507 (interest: $156K, dividends: $79K, asset sales: $116K) - Expenses: $542,245 (charitable disbursements: $474K, officer compensation: $107K) - Net loss of $191,738, drawing down the endowment from ~$10.8M (2020) to $9.5M (2024) - Zero contributions received — the foundation operates entirely from investment income

Yucatan Education Project milestone: The foundation's largest grantee completed construction of its Isla Mujeres school with a grand opening in September 2023. The 2024 grant shift from "Unrestricted" to "Construction" designation suggests continued campus expansion or a new building phase. The project is now focused on university operations and scholarships for low-income students.

Leadership continuity: The board has remained stable with Michael Shimasaki, Barry Maulding, and Chris Sugamura. Evan Shimasaki has been added as a director, suggesting generational succession planning within the family.

Website relaunch: The foundation's website (goodneighborfoundation.org) is currently under construction with a "Launching Soon" notice, indicating a potential rebrand or increased public visibility effort. This is notable for a historically low-profile, invite-only funder.

Strategic trajectory: The foundation appears to be in a transition period — moving from construction-phase philanthropy (building schools, maintaining camp property) toward sustaining ongoing operations. The declining asset base and steady giving suggest the foundation may be spending down rather than maintaining its endowment in perpetuity.

## Application Tips for the Good Neighbor Foundation

Important caveat: The Good Neighbor Foundation operates on a preselected/invite-only basis. There is no public application form, and the foundation's website is currently under construction. However, here are strategies for organizations seeking to build a relationship:

1. Leverage existing networks: - The foundation is managed by Michael Shimasaki with a small board. Personal introductions through Seattle's philanthropic community, education nonprofit networks, or the San Juan Islands community are the most realistic path to consideration. - Organizations already connected to the Yucatan Education Project or SeaDoc Society may have a natural bridge.

2. Demonstrate alignment with core priorities: - Education access for disadvantaged or underserved youth is the non-negotiable focus. Projects should show direct educational outcomes. - International education projects appear welcome if they demonstrate grassroots impact and tangible infrastructure (the Yucatan school model). - Environmental/marine conservation is a secondary interest — but only at the small-grant ($3,000–$10,000) level.

3. Show infrastructure and sustainability: - The foundation invests heavily in physical infrastructure (camp property, school construction). Organizations with capital projects or physical program sites may be more attractive than purely programmatic proposals. - Multi-year track records matter — the foundation's pattern of repeat grants to the same organizations (Yucatan Education Project for 3+ consecutive years) shows a strong preference for proven partners over new experiments.

4. Request appropriately: - For a first grant, request $3,000–$10,000 (unrestricted or project-specific). This matches the foundation's pattern for new relationships. - Only established partners should request $100,000+, and only for specific capital or construction projects.

5. Be patient and relationship-focused: - This is a family foundation that values deep relationships. Quick transactional asks are unlikely to succeed. Focus on building genuine connections around shared educational values over time.