Grant Hooper, Manager Grants Program
Equity Trustees
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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
• Where Does Your Board Fit?
• How Can Structured Giving Help You?
• Questions
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The Equity Trustees Experience
The Equity Trustees Experience
EXPERIENCE
Close to
$100m
Annually
>450
Trusts
INSIGHT
>2,000
Grants
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The Changing Operating Context
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
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The Government Landscape
• Demand for services increasing while revenue base is
stalling e.g. GST and stamp duty
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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
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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 FY2013-14
− Cumulative distributions from PAFs expected to have
reached a $1.5 billion in FY2013-14
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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
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It’s time to RETHINK funding
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?
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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?
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Attracting Philanthropic Funding
Attracting Philanthropic Funding
Resources &
Locations
Evidence base
Track record
&
Sustainability
Attracting Funding
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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
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Keeping Your Audience Warm
Keeping Your Audience Warm
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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
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Keeping Your Audience Warm
• Private Ancillary Funds
− Board networks
− High Net Worth Individuals
− Research opportunities
• Accountants & Lawyers
− Board networks
− Research opportunities
− 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?
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Where Does Your Board Fit?
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
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How Can Structured Giving Help You?
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
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Questions
Contacts
David Stewart
Phone:
(02) 9458 5524
Mobile:
0422 003 247
Email:
dstewart@eqt.com.au
Grant Hooper
Phone:
(03) 8623 5134
Email:
ghooper@eqt.com.au
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Thank you
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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
%
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It’s time to RETHINK funding
WORKSHEET 2
Not-For-Profit Org
DGR1
YES
NO
Registered
Charity
Registered
Charity
Yes
No
Yes
No
Individual Donors,
PAFs, PuAFs
Charitable Will
Trusts, Bequests
Charitable
Purposes
Charitable Will
Trusts
Charitable
Purposes
Yes
Some Will Trusts
No
Yes
No
Bequests Only
Some Will Trusts
Bequests Only
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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
Small
Moderate
Large
No
Maybe
Yes
History of program
Funding required
Future funding available (sustainability)
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