A new way of giving that is seeing exponential growth across Aotearoa NZ – 33% in one year
Community Foundations are unique local trusts which grow from local generosity. They have been growing as a network across NZ since 2003, and have recently seen a rapid increase in their invested funds under management, a staggering growth of 33% in one year.
Chair of Community Foundations of New Zealand, Raymond Key, says much of it is down to kiwi generosity in challenging times. “We are a very generous nation and, increasingly New Zealanders like to see their generosity really making a difference. Kiwis really like this model of giving in a strategic way to communities.”
“Community Foundations can assist people to make an impact in their local community and help them create their enduring legacy. This is demonstrated by our extraordinary growth of 33% over the last 12 months, during one of the most challenging periods in New Zealand’s history.”
In the past year, funds managed across the young Community Foundations network have grown from $150m to $200m. “This doesn’t take into account that most of our funds are in the pipeline as bequests, expected to total a further $400m – and this is how Community Foundations are looking in NZ, in their youth”, said Key.
“Community Foundations are becoming a serious funding entity, distributing $50m into NZ communities in the past 5 years. It’s incredible to see what is being achieved from local generosity, and this is starting to really make a difference in communities.”
Key himself is Chairperson of Wakatipu Community Foundation, a young Foundation which has distributed over $1m to the local community in and around Queenstown, during challenging Covid times.
Community Foundations have been establishing across NZ for the past 18 years and are largely growing from direct donations, estate gifts (bequests) and trust resettlements. Funds are pooled and invested, tagged for particular purposes, with the income from investments giving back to communities for the long-term. “It’s a clever funding model with longevity, which appeals to strategic-thinking people who really want to make a difference”, said Key.
Sue McCabe, CEO of Philanthropy NZ said, “Kiwis are very generous and one of the fastest growing generosity intermediaries is the Community Foundations movement. They harness the generosity of a region, invest gifts and ensure donations make a real difference in our own back yard. It’s heartening to see the increasing growth which is building philanthropy in communities in Aotearoa NZ.”