Transcript Slide 1

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September 2011
TODAY’S CONTENT
 Integrated funding for communities
(Buller case study)
 More Funding Theory and Endowment
Funding (Acorn Foundation case study)
Future Leisure Planning and Directions by
Councils and communities (Hutt case study)
Some further thoughts and possible
implications for libraries
SHOULD A CITY HAVE
A FUNDING PLAN?
Since first LTCCPs in 2003, long-term planning
with the community getting better
…open-ended consultation to strategic
consultation
If not Councils, who will take a lead in
developing a City’s Vision?
Councils have roading plans, sewerage
plans, should they have a community
funding plan?
SOME FUNDING THEORY
Key Success Elements of Vision and
Relationship Based Funding
Clarity of vision and direction for the city
An integrated and planned approach to
the funding of community projects
A marketing approach to funding – matching
funders with projects, not trying to “make” a project
fit with a funder.
OVERALL PROJECT BUDGET
FOR VISION 2010
Project
Sport and Leisure Centre
$ Million
15.5
Theatre
1.4
Coaltown
1.6
Westport Streetscape
0.5
Inangahua Projects
1.2
Seddon Projects
0.8
Sub Total
Additional Finance Cost for
External Funding
TOTAL
21.0
0.5
21.5
BULLER FUNDING
Results
 $12.192 million from 86 funders, not including
Council funding
 “$1,200/person” for a 10,000 community
over a 5 year gifting period
Results
BULLER FUNDING
FUNDING PROFILE BY LEVEL
$000
Number
250+
8
50
7
25
10
12.5
18
Other (Usually above 1)
44
TOTAL
87
Results
BULLER FUNDING
FUNDING PROFILE BY TYPE
Funder
#
$ million
%
Buller District
Council
1
9.5
44
Development
West Coast
1
6.7
31
Major
Corporates
6
4.05
18
Small
Corporates
73
0.65
3
Gaming
5
0.32
2
NZ Lottery Board
1
0.47
2
87
21.69
100
TOTAL
SOME FUNDING THEORY
Key Fundraising Principles
Fair share giving – all donors, both public
and private, are asked to make their “fair
share” contribution to the project
“Inside-out, top down giving”
Council – Development West Coast – Solid
Energy – Buller Electricity – Holcim - NBS
Face-to-face asking. People do not give to
causes. People give to people with causes
Give yourself before asking to give
SOME FUNDING THEORY
For Funding to be Successful
Positive relationships built on trust and
confidence are essential
The right donor needs to be matched
with the right project for the right purpose
at the right time
THE FUNDING PROCESS
Project and Institutional Readiness
For each project, assess Project and
Institutional Readiness:
- What pre-planning still needs to occur
to get the project right?
- Is the organisation ready for each project?
- What still needs to occur, before a Capital
Funding Campaign can be implemented?
THE FUNDING PROCESS
Consider Fundraising Vehicles
Annual Fund
Capital Campaign
Planned Giving
THE FUNDING PROCESS
Consider Funding Sources
 Individuals
Bequest giving 33% globally
 Organisations (e.g. user groups, education,
service clubs)
 Corporates
Partners & Supporters Programme
 Commercial Optimise own commercial income
 Community/Charitable Trusts
Social Lending
emerging
 Gaming Trusts
 Iwi
 Local Government Rates, assets sales, loan finance
 Central Government
Lottery, SPARC/Creative
NZ, DOC, MSD, etc
THE FUNDING PROCESS
Consider Types of Contribution
Donation
Personal Gift
Special Event
Sponsorship
Investment
Asset Sale
Loan/Debenture
Bequest
Endowment Fund
Contract
WESTERN BAY FUNDING STRATEGY
FUNDING SOURCES Community Funding Organisations
Corporates and Gaming Trusts
FUNDING VEHICLES
CONTRIBUTION TYPE
City
Investment
Programme
Sponsorships & Grants
Acknowledged as a
"City Partner"
WESTERN BAY FUNDING STRATEGY
Individuals
FUNDING SOURCES
FUNDING VEHICLES
CONTRIBUTION TYPE
Acorn
Foundation
Principally targeting
Bequest Giving as
Endowment Funds
Philanthropic
Gifting
Programme
Targeting one-off
Capital Gifts and
establishing Annual
Fund Programmes
THE TAURANGA STORY…
The Acorn Foundation
Independent Charitable Trust
Providing long-term stable stewardship
through robust Trustee appointment
processes and the highest calibre
investment managers
Focus to create Endowment Funds – the
income from these Funds to be distributed
on an annual basis so the capital remains
intact and the giving continues forever
THE TAURANGA STORY…
The Acorn Foundation
So far 130 donors, with a realisable
Endowment Fund value today in excess of
$70 million
Currently $5.5 million invested (in near future,
expected to increase to over $10+ million)
Success elements:
 Professional Advisor Strategy
 Donor Approach Strategy
 Marketing Strategy
FEATURES OF THE ACORN FOUNDATION
Capital remains intact
Annual income distributed forever
Can direct where annual distributions go
Based in Tauranga/WBOP
www.acornfoundation.org.nz
NUMBER OF ENDOWMENT FUNDS
Number Of Endowment Funds
140
120
100
80
No. Of Funds
60
40
20
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
www.acornfoundation.org.nz
FUNDS UNDER MANAGEMENT
Funds under Management
6,000
5,000
4,000
3,000
FUM $'000
2,000
1,000
0
2003
2004
2005
2006
2007
2008
2009
www.acornfoundation.org.nz
2010
2011
est
EDNA BROWN FUND
Original value of fund: 2003
$ 72 k
Total distributions from her fund
(6 community groups)
$ 31 k
Current value of the fund
$ 74 k
www.acornfoundation.org.nz
CLIVE & PATRICIA TOOP FUND
Original value of fund: 2005
$ 1.3 m
Total distributions from his fund
(30 community groups)
$ 247k
Current value of the fund
$ 1.4 mm
www.acornfoundation.org.nz
HUTT CITY FUTURE LEISURE
DIRECTION
Developing…
• A compelling leisure vision for the City
And some significant leisure rethinking
occurring on…
• Future facility development and rationalisation
• Future facility governance and management
• Hutt City policy on overall leisure expenditure
• Future funding strategies
KEY LEISURE TRENDS AND DIRECTIONS
• An increased demand by the consumer for
choice, quality and service
• Cross-activity benefits - activity creates activity
• Socialisation very important
• A level of ‘critical mass’ is needed for
sustainable sports solutions
• An emphasis on multi-functional facilities with
shared resources
• Less principal leisure venues of better quality
• A need for management with commercial
marketing skills
COMMUNITY CATCHMENTS FOR LEISURE
PLANNING
• Fraser Park and Walter Nash (plus Naenae) –
North
• Petone – South
• Hutt Recreation and surrounding schools –
Central
• Wainuiomata
Stokes Valley and Eastbourne considered
separately
A FUTURE LEISURE FACILITY HUB
Note, a Leisure Hub may span 2-3 principal leisure
venues, Council and secondary school, in each
community catchment
Key Features
• Future flood-lit artificial turf for Rugby, Rugby
League, Soccer and Touch
• Grass fields for summer and winter sports, e.g.,
Cricket, Junior Athletics
• Specific designated playing spaces at each of
our major venues, e.g., Softball at Fraser Park,
outdoor and indoor court areas at Walter Nash
A FUTURE LEISURE FACILITY HUB
Key Features
Important to have a paid people presence, that can take
a leadership role with customer service, supervision and
management
Without adding to operating costs, plus to create multiactivity benefit, at each Leisure Hub provide a fitness
centre, and co-locate library where possible/appropriate
Fitness and health emphasis, including traditional fitness
centre (cardio and weights), health and fitness checks,
group exercise classes, community health promotion, start
and end point for walking groups etc, a very important
element
Also Leisure Hub acts as a community meeting point and
‘information centre’
A FUTURE LEISURE FACILITY HUB
Key Features
• “Movement Education” – some Junior
Athletics, Junior Gymnastics, Dance, Martial
Arts, again ideally at the principal venue
Movement education is very important
All our children (3-10 yrs) need to learn how to
run, move, swim correctly
• Playground, catering for different age-group
segments (pre-school, 5-8 yrs, 9-12 yrs, 12+
yrs e.g., for latter, outdoor half court)
LEISURE FACILITY HUB
Key Features
• Multi-purpose clubrooms, with some
café/food/bar service at designated
times/peak periods
• (Safe) cycleways and walkways to Leisure
Facility Hubs
LIBRARIES – SOME THOUGHTS
Councils should continue to fund their
responsibilities – should not be asking for
funding for library functions which are their
responsibility(new not replacement,
additional, needed)
Libraries important part of Leisure Hubs
(whether with sporting and/or cultural
facilities)
Consequently libraries as part of leisure hubs
will be affected by capital funding
strategies
Compelling vision and need
LIBRARIES – SOME THOUGHTS
Consider all funding sources:
(new not replacement, additional, needed)
 Endowments
 Annual, to Major, to Bequest
(‘staircase of giving’)
 Organisations (JVs Councils and schools,
tertiaries?, Service Clubs)
 Corporates (watch sponsorships – cause
marketing positioning)
LIBRARIES – SOME THOUGHTS
 ‘Commercial’ (– are their smarter ways to provide
services - cf internet, to i-site models of jv with
retail and i-pods, to retail cluster models – book
shop with café with DVD shop – subsidised hire for
some DVDs?)
 Public grants for needed purpose,relationshipbased, as part of City strategy
 Ringfence Council leisure spend – provide incentive
for optimising funding solutions so can provide
improved services – can be assisted by legal
structures (e.g. Hutt City Leisure Facilities Trust)