Benefits of a Fund in the Foundation clear to see

Whilst community foundations are a relatively recent development in New Zealand, Mark Bentley explains that, globally, they have become the fastest growing forms of organised community philanthropy.

Mark says:

“Community Foundations have become very popular because they take the hassle and guesswork out of giving for generous people and organisations. In some ways we act a little like a dating agency linking people and organisations who care with causes that really matter with the added peace of mind offered by our status as an independent not-for-profit trust.” 

The main benefits of establishing a fund within the Auckland Communities Foundation are:

Independent – The Foundation is independent of any factional interests.

Flexible – The Foundation can accommodate all types of giving to charitable purpose including the distribution of both income and capital meaning that it is a totally flexible vehicle for charitable granting. The advisers to a fund may recommend growing the fund in the early years to a level of sustainability before commencing granting.

Reduced administration costs – The Foundation deals with all aspects of funds management, tax, compliance, granting, reporting and evaluation which removes a significant proportion of the administrative burden of operating a separate charitable trust. In addition, the Foundation can provide research support in the area of assessing community needs to assist decision-making. 

Improved returns – The Foundation model of pooling capital from all of its fund-holders means that it can invest effectively for strong returns over the long-term.

Transparency and accountability – Clear and regular communication and reporting is a key feature of the Community Foundation model. The simple percentage fee for funds under management means that there are no unexpected charges.

Community of Donors – Fund-holders within the Foundation become a community of donors that share information and ideas and in some cases come together to support key community opportunities and challenges.

Convener – Because of its independence, the Foundation can bring together donors, the government and corporate sectors as well as the broader philanthropic and not for profit organisations to work collaboratively to support identified social issues and assist bring about long term social change.

To find out more, contact Mark Bentley by email on m.bentley   "at" aucklandcf.org.nz or by phone on 09 277 8833 or 021 737471.