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 RETHINK FundingAttracting Philanthropic FundingKeeping Your Audience WarmWhere Does Your Board Fit?How Can Structured Giving Help You?Questions1 MINUTE INTRODUCTION + AGENDAWe want you to Re-Think your strategiesBe open to new concepts and ideasWant to implement efficient strategies
5 The Equity Trustees Experience >450 Trusts>2,000 GrantsClose to $100m AnnuallyEXPERIENCEINSIGHT<5 MINUTES BACKGROUNDWe manage over 450 charitable trusts (close to half where we have some level of discretion)Discretion varies from wide to narrowWe assess 1000’s of applications, to distribute grants to more than 2,000 NFPs annuallyGenerate close to $100m of trust distributions annuallyGovernance arrangements: Sole Trustee, Co-Trustee, donor (or other) advisedOur 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 communityThis 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 people6.1 million volunteersGrowth 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 raisingMany NFPs facing increased demand for their servicesEmploying 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 - https://www.acnc.gov.au/ACNC/About_ACNC/Research/Background_NFP/ACNC/Edu/NFP_background.aspx?hkey=e88db8f0-3e ab99-c2acb6ef8a1dTotal 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 dutyAustralian 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 outcomese.g. outcomes-based contracting arrangementsPlace-based, sustainable, outcome-driven, ‘return on investment’ type approaches are increasingSocial Impact Investmente.g. Social Investment Bondse.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 themTotal annual giving around $0.4 billionGrowth in the number of Private Ancillary Funds (PAFs):more than 1,000 established since June 2001Cumulative donations into PAFs expected to have reached $4 billion in FYCumulative distributions from PAFs expected to have reached a $1.5 billion in FYTotal foundation data – Source: Philanthropy Australia websiteTotal annual giving – Source: ABS (2009a) – 2007 data extrapolated in John Daley (Grattan Inst) speech to PA AGM in April 2014PAF 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 outcomesDiverse and growing philanthropic sectorBigger but not necessarily easier to reachConsolidation of Trustee companiesTrusts 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 WAPacker family & Crown resorts - $200 million fund for the arts and other causesPaul Ramsay – bequest of $3 billion to his foundation
13 It’s time to RETHINK 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 sustainabilityNow take 5 minutes and do the following:Breakdown your organisation’s requirementsTick the box or write a dollar amountApply a percentage allocation to eachWhere are your gaps?WORKSHEET 1
14 It’s time to RETHINK funding cont’d Is philanthropy right for your organisation? Some things to consider:The work your organisation does / the main beneficiariesYour organisation’s legal structure and tax statusThe resources that will be required to attract philanthropic support vs other types of funding and how well set up your organisation is to do thisAre 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 onYour organisation’s legal structure and tax status - WORKSHEET 2Resources 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.
16 Attracting Philanthropic Funding Attracting FundingTrack record & SustainabilityEvidence baseResources & LocationsRefer 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 leadershipIt has vision and a desire to take a long-term viewIt has integrity to remain true to the core purpose and missionActively seeks to understand, measure and communicate its impactWorks in partnership with othersCommitment to dissemination of lessons learned through the appropriate networks in order to inform practice in the fieldDesigns of realistic budgets and creatively and sparingly uses resources
20 Keeping Your Audience Warm Current individual donors, ad hoc and major donorsThank them for donationsKeep them informed about how funds were spentAsk for future donationsImplement major donor programsAsk for referrals to other giving individualsInform them of your bequest program (make it easy)Trustee companiesReceived a grant? Keep them informed about outcomesUpdate on key developments.Signpost future opportunities.Apply for further grants
21 Keeping Your Audience Warm Private Ancillary FundsBoard networksHigh Net Worth IndividualsResearch opportunitiesAccountants & LawyersInform them of your bequest program (make it easy)Website and Social MediaDo you have clear content?Do you distribute content regularly?Is your call to action clear and enticing?
23 Where Does Your Board Fit? Governance and retaining a commitment to the purpose and fundamental values of the organisationHowever, can’t only be interested in your organisation’s charitable workNeed to ensure that the organisation is focusing on strengthening its clients / beneficiaries and your organisationEvaluation and reporting of impactFunding strategy (linked to organisation strategy) in place and monitoredNeed to be advocates for your organisation and its purposeRefer to funding strategy and support through the use of networksSupport the work of the fundraising team, don’t just delegateHowever, 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 peopleNeed 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.
25 How Can Structured Giving Help You? Understand the benefit structured giving plays in fundingInform your supporters of the benefits of structured giving and their ability to leave a legacy to youEncourage your supporters to consider a structure and make you beneficiary of their foundationsIndividual donations at risk from death, cognitive decline and challenges to willsSecure donations into perpetuity via a foundationGenerate your own goodwill90% of Equity Trustees’ trusts are Victoria only, therefore you need to be proactive in building awareness of philanthropic optionsGuide 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 needsHow funders are using intermediaries and what this means for NFPsWhat creates a successful philanthropic relationship
27 Contacts David Stewart Phone: (02) 9458 5524 Mobile: 0422 003 247 Grant HooperPhone: (03)
29 Where are your CURRENT funding sources? WORKSHEET 1Investment IncomeGovernmentPAFs, PuAFs & Major donorsOther foundationsOther fundraising e.g. events, raffles etc.Earned Revenue e.g. Fee for Service or Social EnterpriseCore CostsProgramsInnovation/ New%Are there gaps?Where are the opportunities?
30 It’s time to RETHINK funding WORKSHEET 2Not-For-Profit OrgDGR1YESRegistered CharityYesIndividual Donors, PAFs, PuAFs Charitable Will Trusts, BequestsNoCharitable PurposesSome Will TrustsBequests OnlyNOCharitable Will Trusts
31 Attracting Philanthropic Funding WORKSHEET 3What 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?LocalStateNationalLocation/s of implementationNoYesDetailsPartnering with Third PartiesNew/pilotPost-pilotExistingHistory of programSmallModerateLargeFunding requiredMaybeFuture funding available (sustainability)