Working together will mean real success

Working together will mean real success

Stacey-ScottStacey Scott
Chair, CFNZ
5 October 2018

Again we saw the incredible sharing of energy and ideas at our national gathering in Wellington this month. It’s a privilege to work with so many gifted people across the sector so dedicated to encouraging people to think personal generosity leading to community transformation.

It’s certainly been an action-packed year for the Community Foundation movement in New Zealand.  Our initiatives, projects and events around the country explored new ways to create lasting impact, for today and for future generations.

When Community Foundations of New Zealand was formed our movement had a vision to bring people together, to foster professional development and to increase our impact through collaboration. Today we have over $110m under managed funds, in the past year 800 grants have been made to local communities, and 80% of New Zealanders have access to their own Community Foundation.  Significantly, hundreds of millions of dollars more are in the pipeline as bequests gifted in Wills to local communities. These really are staggering results from such a young movement in this country.

Just as the number of donors and grants grow each year, Community Foundations of New Zealand continues to grow and evolve.  We do this together with many partners around the country who share our vision of a more community-led future for us all. It has been extraordinary to watch the Community Foundation movement grow its reach, influence and impact from one end of the country to the other… and beyond.

As we look to the future, we see a constantly evolving country. We are getting older, becoming more diverse, more urbanised and are using technology in ways that were difficult to imagine even a few years ago. Part of our responsibility as a national network is to anticipate and respond to such changes to help build stronger, more inclusive communities of tomorrow.

Growth demands evolution and while Community Foundations remain deeply committed to place-based philanthropy, we are increasingly recognising that our community is not just defined by the place we live in. We all belong to many different communities and CFNZ is committed to strengthening and supporting those connections to help create a better future for all New Zealanders. To that end, CFNZ will continue to support all forms of engaged and accessible philanthropy, so our members can support the issues and causes important to their communities.

We saw in Wellington this month again the dedication of our members to continuing the growth of community philanthropy across New Zealand.  We were honoured to have the Minister for the Community and Voluntary Sector, Hon Peeni Henare, join us and his message to us was to get organised and to be clear on how we can work more effectively in partnership with Government. And, as always, we appreciate the vision and support for our mission from our partners, The Tindall Foundation and Craigs Investment Partners, both of whom have been crucial to our success so far.

Coming together is the beginning, staying together is progress, and working together will mean real success.

 

A few photos from our national Workshop, 2-3 October 2018

See further photos from our national hui on our Facebook page.

Professional advisors are key

What an opportunity we have ahead of us and professional advisors are key

Eleanor Cater
Community Foundations of New Zealand
3 September 2018

Professional advisors are often surprised to discover how many people get great fulfillment from personal giving.

Gone are the days where giving to charity exclusively means dropping money in a bucket or sponsoring a child. There many options today that allow people to consider structuring their giving to causes that they care about in a more strategic, a more fulfilling way. Knowing what these options are can lead to very meaningful lawyer-client conversations.

Lawyer Bill Holland, who founded the Acorn Foundation in Tauranga in 2003, often says that meaningful conversations about giving or philanthropy can add significant value to lawyer-client relationships. He says that many clients do want to have a warm conversation about their interests and their passions and certainly do want to have a meaningful conversation that goes beyond the technical.

We are certainly seeing in New Zealand more people discovering that they can give back to their communities in a myriad of ways. Once people know their options we find that the giving strategically can be a very appealing prospect.

Conversations on giving are particularly important today as we are poised to see an unprecedented intergenerational wealth transfer from the baby boomer generation about to take place. According to Philanthropy New Zealand the intergenerational wealth transfer in Australia and New Zealand will likely exceed $600 billion over the next 20 years.

What a difference it could make if we can channel a portion of the baby boomer wealth towards philanthropy. Put into effective and professionally managed funds  it could be transformational in communities and change the charity landscape of New Zealand forever.

The Research

Studies from Canada indicate that 76% of clients agree that discussing philanthropy with their advisor strengthens the relationship. 2013 American research has also revealed that such philanthropic conversations would likely improve the client-advisor relationship and strengthen future business opportunities. A 2016 UK study found that the estate-making process can reliably shape whether people leave assets to charity in their Will; yet a 2015 QUT Survey found that only 1/3 of advisors discuss philanthropic issues with their clients. There’s a big opportunity here.

What are the options for giving?

Options for giving are many, varied and can be tailored to an individual’s needs and desires.  Knowing the difference in types of giving can be a real eye-opener and many people are delighted to discover that there are more strategic ways beyond traditional charitable giving.

For example, establishing an endowment fund is like having your own charitable Trust without all the hassle. It enables clients to focus on their giving and the causes that they care about and it enables them to give for the long-term. In fact it enables them to go on giving to causes that they care about forever. It’s transformational, it’s impactful and its reach is so much greater than traditional charity giving.

 

There’s a whole section on this website dedicated to information for professional advisors. You could share it with a lawyer, accountant or financial advisor you know; it could lead to something quite fufilling and, potentially, something quite transformational in the community where your heart resides.

 

See further details in the article ‘Adding Significant Value to Client Relationships‘ in the September 2018 Edition of the NZ Law Society’s Lawtalk magazine.

Investing forever

Investing in your community forever

Liz Koh
Deputy Chair
Nikau Foundation
13 June 2018

New Zealanders have always been good at giving to others. Whether it is selling sausages, baking for a cake stall or running errands for elderly neighbours, most Kiwis pitch in at some stage in their lives to lend a helping hand. Our generosity is also to be seen on collection days for charities and in the regular donations made to favourite organisations. Some people are lucky enough to have more money than they will ever spend in their lifetime. For the super-rich, establishing a trust or foundation to make charitable distributions is a way of using surplus wealth to benefit others. The Tindall Foundation, JR McKenzie Trust and Todd Foundation are examples of such organisations which will continue to do good things beyond the lifespan of their founder donors.

Setting up your own charitable trust is an expensive and complex business. It involves preparing the trust deed, administration of the trust, making charitable donations and compliance with regulations for charitable organisations. Smaller trusts often struggle to find trustees once the founder donor has passed away, and poor management often results in funds diminishing over time to a point where meaningful donations can no longer be made.

A simple solution for those with a philanthropic bent but without a massive fortune is to establish a donor-advised endowment fund where funds are invested and the returns distributed in accordance with directives from the donor.  Endowment funds are cheaper to administer, more tax efficient and flexible to operate. They can be established with modest amounts of money, making them accessible to everyone. Community Foundations of New Zealand is a network of sixteen local community foundations which offer donor-advised endowment funds. They provide an easy and inexpensive way for people to invest part of their wealth forever, for the benefit of their local community.

Liz Koh is an Authorised Financial Adviser (www.moneymax.co.nz ) and Deputy Chair at Wellington’s Nikau Foundation. 

An example of Endowment Fund growth since 2003:

* Image example from Acorn Foundation

Generosity can be as personal as it is impactful

Generosity can be as personal as it is impactful

Eleanor Cater
Community Foundations of New Zealand
22 February 2018

With 15 – very soon to be 16! – Community Foundations spread across New Zealand we are seeing local people catching on to the importance of personal generosity shaping communities.

Community Foundations assist generous people to be changemakers and to have an impact locally. They enable people to realise that change really is within their sphere of influence, and not something that is just for the rich, the famous or the politically-minded.

They enable people to be not just locally-focused but cause-focused, enabling gifts that will benefit the community for generations to come.

There is a strong history of philanthropy in New Zealand, and there is a great deal of wealth that will change hands from this generation to the next. There is also an immense sense of attachment to a place which is held by people who have grown up, chosen to live and dedicated their lives to building a strong local community.

It’s a crucial niche that links generous, philanthropic people with community causes that matter. Community Foundations exclusively fill that niche enabling people to give in a strategic way, together with the surety that donations from their precious life’s work will be well cared for and continue to give forever.

Community Foundations are the natural funding choice with local impact, able to assist with intergenerational wealth transfers and invest back into the community with purpose. And, make no mistake, Community Foundations of New Zealand members must exhibit immense expertise and sound governance to give the confidence for generous people to give in this way. We are proud that our members across New Zealand do all of that.

If you would like more information on what your Community Foundation can do for you and local causes that you care about, contact us today to talk through your options. There are many ways to give and your generosity can certainly be as personally meaningful to you as it is impactful in your community.

 

Now is the time

Now is the time

By Liz Koh, 
Deputy Chair, Nikau Foundation 
4 October 2017

Baby boomers are not only getting older – they are getting wealthier. As they reach retirement age, they bring along with them a tsunami of wealth that needs to be invested, spent, and finally bequeathed to their heirs or charity.

Marketers talk of the ‘grey dollar’ – the money that will be spent by aging affluent baby boomers over the next 20 or 30 years.

All over the world, businesses are looking at ways to tap into this lucrative market. In Japan, there are shopping centres designed for the elderly, with medical clinics, pension-day discounts, and leisure activities for retirees. From cars to retirement villages to food and beverages, a raft of products designed with the elderly in mind is coming to market.

What will baby boomers do with their wealth? The decisions they make about how quickly to use up their retirement capital, and where to invest the capital they retain, could have a significant influence on financial markets.

Of course, not all baby boomers are individually wealthy. Their influence in the market comes simply from the fact that there are so many of them.

One interesting aspect of the baby boomer phenomenon is the influence of gender. Not only do women live longer than men but overseas research shows that women are the key decision-makers in around 85 per cent of all consumer purchases. They also wield the greatest influence when it comes to charitable giving.

As this population bubble reaches the age when they can afford to be generous and when they will have to make decisions about what happens to their estates, women will play a key role.

Numerous studies in the UK and the US show that women are more likely to give – and give more – than men. One internationally recognised centre of excellence for this research is the Women’s Philanthropy Institute which is part of the Lilly Family School of Philanthropy at Indiana University.

Their research has shown that baby boomer and older women gave 89 per cent more to charity than men of the same age and that women in the top 25 per cent income bracket gave 156 per cent more than men in the same bracket.

Charities can expect a huge influx of money as baby boomers unload their wealth either during retirement or on death. The smart ones will be actively cultivating relationships with baby boomers to tap into their generosity, and women, particularly women in high income brackets, should be right in their sights.

To that end, the Auckland Foundation, a member of Community Foundations of New Zealand, is launching an Auckland Women’s Fund, which aims to support women’s giving and improve the lives of girls and women through its granting.

No doubt others will follow. After all, baby boomers have only three choices with their wealth – they can spend it themselves, leave it to their family, or give it to charity or community. They certainly can’t take it with them.

 

* Liz Koh is Deputy Chair of Nikau Foundation, an authorised financial adviser and author of Your Money Personality; Unlock the Secret to a Rich and Happy Life, Awa Press. 

The fastest-growing form of philanthropy in the world … and it’s happening right here!

The fastest-growing form of philanthropy in the world … and it’s happening right here!

Stacey-ScottStacey Scott
Chair, Community Foundations of New Zealand
12 June 2017

What an incredible journey it’s been getting to this point in time with 14 vibrant Community Foundations operating around the country.

And we can only grow; currently we are investigating opportunities in several communities so far not covered by our network. It’s our goal to give everyone in New Zealand access to their very own Community Foundation so they can give where they live and build on crucial and locally-managed, independent endowment funds for the future.

This year sees us striding ahead with the appointment of our first Executive Officer, Eleanor Cater, which will help us work on some of the more  strategic factors such as our growing our network, and growing the message that there is a credible and active vehicle for localised philanthropy in New Zealand. Our Community Foundations have a wealth of knowledge and one of the key strengths in our network is collaboration and information sharing. One Community Foundation’s success is everyone’s success, that is why expansion is so important to us, we are stronger with the sharing of knowledge and resources.

Currently we are working on developing resources for new, start-up Community Foundations in New Zealand and these, along with the support and knowledge base already out there, will make it easy for new Community Foundations to begin that journey for themselves.  It’s an exciting time of planning and development.

If you want to be in touch regarding starting a new Community Foundation in your community please contact us, we will be more than happy to chat through the opportunities.

When you consider that Acorn Foundation, for example, is only 14 years old and already has funds totalling $18m, with anticipated funds of $150m in the pipeline, you can begin to see what can be achieved in even small communities with a local focus, commitment and care. Know-how is important when it comes to starting and growing an endowment fund, but it’s worth all the effort as the future grant-making impact on local communities can be huge.

It’s a fact that Community Foundations and place-based philanthropy is the fastest-growing form of philanthropy in the world. And it’s easily matched up with the Kiwi way of generosity and loving our communities.

Will you join us?

A blog post on Community Foundations…

Community Foundations New Zealand – Latest updates…

eleanor squareA Blog Post on Community Foundations

By Eleanor Cater
15 March 2017

I was going to give this a really fancy name but ‘A Blog Post on Community Foundations’ will do just fine.  By world standards Community Foundations are a fairly new concept in New Zealand and spreading across the country and it’s easy to see why; place-based philanthropy is well-aligned with the kiwi way. We care about our communities and we care about their uniqueness and the people and causes within.

It is also widely quoted that place-based philanthropy is the fastest growing form of philanthropy in the world. People love and take ownership and pride over their communities and those with a philanthropic lean often chose a local cause for their generosity.

And, believe it or not, it’s incredibly hard to give your money away effectively! So a credible and respected Foundation in your community which will give your money away effectively, meeting your wishes as donor, is key.

There’s a saying among Community Foundations across the world that ‘If you’ve seen one Community Foundation…. you’ve seen one Community Foundation.” That certainly rings true here in New Zealand where we have grass roots people giving small and large donations in their life through to incredibly large acts of philanthropic giving from those of substantial means. They are all doing it differently and each of our 14 Community Foundations are responding uniquely but, most importantly, they are all doing it and they are all focused on what is best for their community.

And surely it’s all philanthropy? Big or small?  Wanting to give be a part of something that is bigger than yourself, wanting to really make a difference or leave a footprint on the world? I think that philanthropy is for everyone. And so is community.

We will, over time, have some guest bloggers here, from both New Zealand and from around the world, sharing their experiences, learnings and thoughts on philanthropy and how we might encourage more of it.

We know that there is a will, we just have to find a way to connect up local causes with generous people who want their support to live on in perpetuity. That’s pretty much, in a nutshell, what we do here in Community Foundations across the country. Will you join us? We are building permanent endowments at a local level for future generations to benefit from, forever.

It’s an incredible encore for your life’s work, don’t you think?