Grant Hooper , Manager Grants Program Equity Trustees. The Changing Funder Landscape: Do you know your audience?. Agenda. The Equity Trustees Experience The Changing Operating Context It’s Time to RE THINK Funding Attracting Philanthropic Funding Keeping Your Audience Warm
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The Equity Trustees Experience
The Changing Operating Context
It’s Time to RETHINK Funding
Attracting Philanthropic Funding
Keeping Your Audience Warm
Where Does Your Board Fit?
How Can Structured Giving Help You?
Employing around 1 million people
6.1 million volunteers
Growth in income over last 7 years consistently around 5%
Total income around $100bBillion
~ 30% government funded
~ 30% service provision (not govt.)
~ 30% philanthropy and fund raising
Many NFPs facing increased demand for their services
Demand for services increasing while revenue base is stalling e.g. GST and stamp duty
Increasingly seeking to leverage investment in social issues (Initiatives being lead by State Governments, particularly Queensland, ACT and NSW):
Payment by outcomes
e.g. outcomes-based contracting arrangements
Place-based, sustainable, outcome-driven, ‘return on investment’ type approaches are increasing
Social Impact Investment
e.g. Social Investment Bonds
e.g. Social Enterprise Development Investment Funds to help take success to scale
Total foundations estimated to be ~ 5,000 – each as individual as the donor that established them
Total annual giving around $0.4 billion
Growth in the number of Private Ancillary Funds (PAFs):
more than 1,000 established since June 2001
Cumulative donations into PAFs expected to have reached $4 billion in FY2013-14
Cumulative distributions from PAFs expected to have reached a $1.5 billion in FY2013-14
State and Federal governments cutting back funding and increasing focus on outcomes
Diverse and growing philanthropic sector
Bigger but not necessarily easier to reach
Consolidation of Trustee companies
Trusts implementing more targeted grant making strategies. Increasingly looking for impact.
Emergence of ‘mega-gifts’ e.g.
Andrew & Nicola Forrest - $65 million foundation to fund research in WA
Packer family & Crown resorts - $200 million fund for the arts and other causes
Paul Ramsay – bequest of $3 billion to his foundation
It’s time for Boards and executives to re-examine their traditional funding bases and their approaches to fundraising in order to ensure their future sustainability
Now take 5 minutes and do the following:
Breakdown your organisation’s requirements
Tick the box or write a dollar amount
Apply a percentage allocation to each
Where are your gaps?
Is philanthropy right for your organisation? Some things to consider:
The work your organisation does / the main beneficiaries
Your organisation’s legal structure and tax status
The resources that will be required to attract philanthropic support vs other types of funding and how well set up your organisation is to do this
Are you measuring and evaluating your impact and are you good at communicating this?
Most foundations will have a formal process they use for choosing grant recipients – many of them will require you to submit an application.
Note: Sometimes this means quite long lead times between application and decision.
Whilst the questions they ask may vary, grantmakers typically want to know that an organisation can demonstrate the following:
Experienced and capable leadership
It has vision and a desire to take a long-term view
It has integrity to remain true to the core purpose and mission
Actively seeks to understand, measure and communicate its impact
Works in partnership with others
Commitment to dissemination of lessons learned through the appropriate networks in order to inform practice in the field
Designs of realistic budgets and creatively and sparingly uses resources
Current individual donors, ad hoc and major donors
Thank them for donations
Keep them informed about how funds were spent
Ask for future donations
Implement major donor programs
Ask for referrals to other giving individuals
Inform them of your bequest program (make it easy)
Received a grant? Keep them informed about outcomes
Update on key developments.
Signpost future opportunities.
Apply for further grants
Private Ancillary Funds
High Net Worth Individuals
Accountants & Lawyers
Inform them of your bequest program (make it easy)
Website and Social Media
Do you have clear content?
Do you distribute content regularly?
Is your call to action clear and enticing?
Governance and retaining a commitment to the purpose and fundamental values of the organisation
However, can’t only be interested in your organisation’s charitable work
Need to ensure that the organisation is focusing on strengthening its clients / beneficiaries and your organisation
Evaluation and reporting of impact
Funding strategy (linked to organisation strategy) in place and monitored
Need to be advocates for your organisation and its purpose
Refer to funding strategy and support through the use of networks
Support the work of the fundraising team, don’t just delegate
Understand the benefit structured giving plays in funding
Inform your supporters of the benefits of structured giving and their ability to leave a legacy to you
Encourage your supporters to consider a structure and make you beneficiary of their foundations
Individual donations at risk from death, cognitive decline and challenges to wills
Secure donations into perpetuity via a foundation
Generate your own goodwill
90% of Equity Trustees’ trusts are Victoria only, therefore you need to be proactive in building awareness of philanthropic options
Guide your supporters on the benefits of supporting your organisation, your cause, your community and of supporting this through structured giving