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Grant Hooper, Manager Grants Program Equity Trustees

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Presentation on theme: "Grant Hooper, Manager Grants Program Equity Trustees"— Presentation transcript:

1 Grant Hooper, Manager Grants Program Equity Trustees

2 The Changing Funder Landscape: Do you know your audience?

3 Agenda The Equity Trustees Experience The Changing Operating Context
It’s Time to RETHINK Funding Attracting Philanthropic Funding Keeping Your Audience Warm Where Does Your Board Fit? How Can Structured Giving Help You? Questions 1 MINUTE INTRODUCTION + AGENDA We want you to Re-Think your strategies Be open to new concepts and ideas Want to implement efficient strategies

4 The Equity Trustees Experience

5 The Equity Trustees Experience
>450 Trusts >2,000 Grants Close to $100m Annually EXPERIENCE INSIGHT <5 MINUTES BACKGROUND We manage over 450 charitable trusts (close to half where we have some level of discretion) Discretion varies from wide to narrow We assess 1000’s of applications, to distribute grants to more than 2,000 NFPs annually Generate close to $100m of trust distributions annually Governance arrangements: Sole Trustee, Co-Trustee, donor (or other) advised Our role as intermediary between the Co-Trustees / donor / Testator and potential applicants and recipients. We have a strong depth of experience both in length of time in the industry, as well as practical experience working in the NFP community This has given us incredible insight to the funder/recipient relationship

6 The Changing Operating Context
The regulatory and economic environment are changing as is the funding landscape – NFPs need to be aware of this, planning and preparing for the challenges and opportunities

7 The Not-For-Profit Landscape
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 Employing around 1M people – Source: ABS estimates that in 2006–7 extrapolated by David Crosbie (Community Council for Australia) in presentation in April 2014. 6.1M volunteers - ABS estimates in 2010 quoted on ACNC website - ab99-c2acb6ef8a1d Total income around $100 Billion – Source: ABS estimates that in 2006–7 extrapolated by David Crosbie (Community Council for Australia) in presentation in April 2014

8 The Government Landscape
Demand for services increasing while revenue base is stalling e.g. GST and stamp duty Australian Public Service Expenditure Gap - Source: Accenture & Oxford Economics - By 2025, public service expenditure is forecast to be US$419bn, or 24% of GDP - Projected demand on current trajectory is an additional $54 billion per annum in 2025 (or 3% of GDP - Ageing population and healthcare are said to be the main drivers

9 The Government Landscape cont’d
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

10 The Philanthropy Landscape
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 FY Cumulative distributions from PAFs expected to have reached a $1.5 billion in FY Total foundation data – Source: Philanthropy Australia website Total annual giving – Source: ABS (2009a) – 2007 data extrapolated in John Daley (Grattan Inst) speech to PA AGM in April 2014 PAF data - Source: The PAF Report – private ancillary funds after 12 years – JBWere (Dec 2013) Our experience lies in understanding the current funding landscape and the pressures on both funders and NFPs

11 The Changing Funder Landscape
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

12 It’s time to RETHINK funding

13 It’s time to RETHINK funding
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? WORKSHEET 1

14 It’s time to RETHINK funding cont’d
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? The work your organisation does / the main beneficiaries – Is your work appealing to others? If it has mass appeal, then it may be easier and more relevant to focus on Your organisation’s legal structure and tax status - WORKSHEET 2 Resources required – foundations are not all the same. In fact, there’s a saying, “If you’ve met one foundation, you’ve met one foundation”. You need to research and understand foundations – which ones are interested in the sort of work you do? Do they have an open application process or do they select who they invite to apply? Does the foundation have staff or is it only a voluntary board? Is there an intermediary like EQT involved? Do they want a relationship with grant applicants and recipients? Are you set up to track and report on how you used the grant funds received? Measuring and Evaluating your impact – Increasingly, reporting on outputs or even outcomes may not be enough.

15 Attracting Philanthropic Funding

16 Attracting Philanthropic Funding
Attracting Funding Track record & Sustainability Evidence base Resources & Locations Refer to WORKSHEET 3

17 Application forms and processes
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

18 Keeping Your Audience Warm

19 Keeping Your Audience Warm

20 Keeping Your Audience Warm
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) Trustee companies Received a grant? Keep them informed about outcomes Update on key developments. Signpost future opportunities. Apply for further grants

21 Keeping Your Audience Warm
Private Ancillary Funds Board networks High Net Worth Individuals Research opportunities 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?

22 Where Does Your Board Fit?

23 Where Does Your Board Fit?
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 However, can’t only be interested in your organisation’s charitable work - Need to have a ‘business development’ hat on. Funding doesn’t just magically appear. People give to people Need to ensure that the organisation is focusing on strengthening its clients / beneficiaries and your organisation – Need money to do this. Therefore need a well articulated and well thought out funding strategy that feeds into your organisation’s strategy. Need to measure impacts and communicate these.

24 How Can Structured Giving Help You?

25 How Can Structured Giving Help You?
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

26 Questions We will cover how the NFP/funder relationship is changing
What this means for strategic vs impact granting needs How funders are using intermediaries and what this means for NFPs What creates a successful philanthropic relationship

27 Contacts David Stewart Phone: (02) 9458 5524 Mobile: 0422 003 247
Grant Hooper Phone: (03)

28 Thank you

29 Where are your CURRENT funding sources?
WORKSHEET 1 Investment Income Government PAFs, PuAFs & Major donors Other foundations Other fundraising e.g. events, raffles etc. Earned Revenue e.g. Fee for Service or Social Enterprise Core Costs Programs Innovation/ New % Are there gaps? Where are the opportunities?

30 It’s time to RETHINK funding
WORKSHEET 2 Not-For-Profit Org DGR1 YES Registered Charity Yes Individual Donors, PAFs, PuAFs Charitable Will Trusts, Bequests No Charitable Purposes Some Will Trusts Bequests Only NO Charitable Will Trusts

31 Attracting Philanthropic Funding
WORKSHEET 3 What is the need you are seeking to address? What is your proposed solution? What’s your rationale / evidence base for this solution and why your organisation? What will it cost? Is this reasonable? What could be the impact of your proposed solution? How does this compare with cost? How well does the cause / solution align with the foundation you wish to approach? Local State National Location/s of implementation No Yes Details Partnering with Third Parties New/pilot Post-pilot Existing History of program Small Moderate Large Funding required Maybe Future funding available (sustainability)

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