A research study conducted by Sydney Community Foundation & ACA Research18 April 2013

Research BriefMapping Philanthropic Investment in South Western and Western Sydney

Background

The purpose of the research was to generate a picture of philanthropic investment in Western and South Western Sydney Local Government Areas (LGAs) and to encourage philanthropists to invest more in grassroots community led not for profit organisations.

Specific objectives included:Quantify the level of funding and determine the sources of this fundingIdentify how the funding is used within the communityUnderstand the funding gap that currently exists and the impact this has on community programsUnderstand the experience of community organisations when working with the philanthropic community and determine the impact of the programs that have been fundedUnderstand the barriers to building partnerships with philanthropy

The study excluded corporate NGOs and focused on not for profits with DGR status based in South Western and Western Sydney. 67 organisations participated in the research which was conducted by telephone interview.

Sample & Methodology

A total of 184 community organisations located in South Western and Western Sydney were provided by the Sydney Community Foundation

67 interviews with community organisations were conducted by ACA Research using a telephone methodology.

The survey was approximately 22 minutes in length.

Telephone surveys were completed between

12th - 22nd March 2013

The data from the 67 respondents has been used to estimate the total market size across the 184 community organisations in South Western & Western Sydney

James Organ, Managing Director Felipe Jara, Project Manager

SAMPLE

TIMING

DATA EXTRAPOLATION

PROJECT TEAM

METHODOLOGY

A full copy of the research will be available on The Sydney Community Foundation website www.sydneycommunityfoundation.org.au.

Highlights

• In 2012, only 2% or $13 million of the total $630 million funds granted to not for profit organisations included in this research was granted by philanthropists.

• Philanthropic foundations provided $10.1 million (1.6%), private donors who gave more than $10,000 provided $1 million (0.2%) and private donors who gave less than $10,000 provided $1.8 million (0.3%).

• The organisations surveyed delivered a range of services from mental health and disability support, to homelessness, education and community services. Few organisations have a singular focus, with most addressing a range of community issues.

• The largest provider of funding was Government, granting 90% or $564 million; the second largest source of funding was community fundraising which represented 5.4% or $33.8 million. Corporate sponsorship represented 1.2% or $7.6 million. The remaining 1.8% of funding, representing $11.2 million, was provided through other sources including RSL or Clubs grants and bequests.

• Not for profits surveyed expect funding to grow by 3% to $650million in the next 12 months, with the increases coming from Government (3%) and corporate sponsorship (2.2%). However, the organisations expect funding from other sources, including philanthropic grants and private donors, to decline in the next 12 months.

• Not for profits surveyed require an increase of 26% or $165 million to meet the unserviced needs in the community and to fulfil their mission.

• 94% of funding goes to medium and large community organisations.

• Lack of resources restrict the ability for community organisations and not for profits to build new philanthropic partnerships.

Sydney Community Foundation Recommendations1. Sydney Community Foundation is calling on

philanthropists to review giving strategies and apply a stronger focus on providing much needed philanthropic funding to underserved communities of Sydney characterized by high unemployment, low school attainment, poor health, high imprisonment rates and child abuse. These factors can lead to intergenerational poverty and low education outcomes that compound disadvantage. South Western and Western Sydney requires greater focus from philanthropists to level the playing field and provide opportunities for all citizens of Sydney.

2. Place-based philanthropy and social investment programs are a critical intervention to break the cycle of disadvantage. Sydney Community Foundation encourages philanthropists to join with the Foundation in its place based philanthropic program in Liverpool, the first in South Western Sydney, working with grassroots organisations and local leaders to build community capacity and drive a community led change agenda. Already a network of philanthropists, from national foundations, Private Ancillary Funds, and individual donors, are collaborating with the Sydney Community Foundation on its collective impact approach.

3. Direct funds to medium and small sized ‘grassroots’ community organisations that are embedded in communities to deliver greater social impact. Working at the grassroots with organisations embedded in disadvantaged communities delivers greater impact, particularly when programs are focused on community capacity building, employment, local leadership and the launch of social enterprises and local businesses. Community organisations report the benefits of working with philanthropists include funding flexibility and the ability to innovative to enhance service delivery and try new approaches.

4. Build the capacity of community organisations to seed and foster community-led change initiatives. The most vulnerable families are the most difficult to engage, and the most disadvantaged by the fragmentation of the service system. These families often make least use of services because they lack the skills and confidence to negotiate the system, they are unfamiliar with the language and culture. It is these families that need to be reached through a concerted effort of investment in the organisations, often grassroots organisations, that are working at the coalface in the community.