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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)