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)