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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 THEORYKey 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 $ Million
Sport and Leisure Centre 15.5
Theatre 1.4
Coaltown 1.6
Westport Streetscape 0.5
Inangahua Projects 1.2
Seddon Projects 0.8
Sub Total 21.0
Additional Finance Cost for External Funding
0.5
TOTAL 21.5
BULLER FUNDINGResults
$12.192 million from 86 funders, not including Council funding
“$1,200/person” for a 10,000 community over a 5 year gifting period
BULLER FUNDINGResults
FUNDING PROFILE BY LEVEL
$000 Number
250+ 8
50 7
25 10
12.5 18
Other (Usually above 1) 44
TOTAL 87
BULLER FUNDINGResults
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
TOTAL 87 21.69 100
SOME FUNDING THEORYKey Fundraising PrinciplesFair 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 ReadinessFor 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 PROCESSConsider 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 IwiLocal Government Rates, assets sales, loan
finance
Central Government Lottery, SPARC/Creative NZ, DOC, MSD, etc
THE FUNDING PROCESSConsider Types of ContributionDonationPersonal GiftSpecial EventSponsorshipInvestmentAsset SaleLoan/DebentureBequestEndowment FundContract
WESTERN BAY FUNDING STRATEGY
CONTRIBUTION TYPE
FUNDING VEHICLES
Community Funding OrganisationsCorporates and Gaming Trusts
City InvestmentProgramme
Sponsorships & GrantsAcknowledged as a"City Partner"
FUNDING SOURCES
WESTERN BAY FUNDING STRATEGY
FUNDING SOURCES
FUNDING VEHICLES
CONTRIBUTION TYPE
Principally targetingBequest Giving asEndowment Funds
PhilanthropicGifting
Programme
Acorn Foundation
Targeting one-offCapital Gifts and establishing AnnualFund Programmes
Individuals
THE TAURANGA STORY…
The Acorn FoundationIndependent Charitable TrustProviding 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 FoundationSo 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
www.acornfoundation.org.nz
Number Of Endowment Funds
0
20
40
60
80
100
120
140
2003 2004 2005 2006 2007 2008 2009 2010 2011
No. Of Funds
FUNDS UNDER MANAGEMENT
www.acornfoundation.org.nz
Funds under Management
0
1,000
2,000
3,000
4,000
5,000
6,000
2003 2004 2005 2006 2007 2008 2009 2010 2011est
FUM $'000
Original value of fund: 2003 $ 72 k
Total distributions from her fund $ 31 k (6 community groups)
Current value of the fund $ 74 k
EDNA BROWN FUND
www.acornfoundation.org.nz
Original value of fund: 2005 $ 1.3 m
Total distributions from his fund $ 247k (30 community groups)
Current value of the fund $ 1.4 mm
CLIVE & PATRICIA TOOP FUND
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 HUBKey FeaturesImportant 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 multi-activity 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 importantAll 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 THOUGHTSCouncils 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,relationship-based, 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)