What is a trust transfer?
A trust transfer or trust resettlement is a simple way to wind up a trust or a charity while still fulfilling the original purpose.
Operating a trust or charity has become increasingly challenging. Factors such as legislative changes, difficulty finding new trustees, investing risk and increasing compliance expectations have resulted in a number of trustees questioning the future. These challenges are expected to grow with the upcoming changes to the Incorporated Societies Act. Many Trusts & Societies are looking for a solution and the Aoraki Foundation may be the answer.
Transferring a Trust to the Aoraki Foundation provides a simple and practical solution, allowing you to maintain the original intent of the Trust while handing over the responsibility of compliance, governance and grant-making.
Benefits of transferring a Trust
A cost-effective model
By establishing a fund with Aoraki Foundation, your Trust will benefit from our low-cost structure and economies of scale, so your generosity can continue to be felt for generations to come.
Make a meaningful impact
Through our connections to the community and knowledge of the challenges they face, the Aoraki Foundation will ensure that your Trust continues to give back in ways that are meaningful and in line with your goals. We will work alongside you to understand your purpose and carry on the giving objectives. This may mean having some of your former trustees involved in the distributions and grants.
Professional fund management
Your gift will be responsibly invested and grown. Our dedicated investment committee with external experts oversee our investment assets managed by Forsyth Barr and Craigs Investment Partners.
Benefit from enduring trusteeship
Aoraki Foundation has a well-established volunteer Board of Trustees with a diverse set of skills and a deep connections and love for our local community. Through this structure, your fund will benefit from enduring trusteeship, so your story and generosity will continue to impact our local communities long into the future.
A safe pair of hands
With trustee reporting and compliance obligations becoming more onerous, consolidation using community foundations, like Aoraki Foundation, provides a safe and practical solution. We will handle all ongoing compliance, governance and reporting, so you can rest easy knowing that everything is taken care of.
Preserving your Trust’s story
Every trust/charity has a story that deserves to be remembered. Through tailored communications and marketing expertise, we will ensure your story will be protected and preserved long into the future.
For more information on Trust Transfers please download our helpful infosheet
Case Study: Mackenzie Charitable Fund
The Mackenzie Area Community Services Charitable Trust was established in 1999 to look after the people of Fairlie and Tekapo. Quietly the trustees worked behind the scenes helping people in their time of need. Fast forward twenty years, the Trust was struggling to make the impact they set out to, with a low interest rate environment and a high cost of compliance. The Trust knew something needed to change but they were not sure what options were available. It was then that Trust chair Stuart Barwood attended a presentation by the Aoraki Foundation. It was the light bulb moment they had been looking for. As Stuart describes after hearing the Aoraki Foundation presentation,
“I thought, why not let some professionals actually do it?, it’s no more expensive, it’s probably less so. They do all the paperwork, and have efficiencies.” Stuart continues, “They can do all the charitable trust work and .... we can just do our thing in the community and work in that way, and hopefully we can build the fund to be a really good size and do something really worthwhile.”
The Aoraki Foundation worked alongside the Charitable Trust to understand their objectives and their history. In late 2022 the decision was made to transfer the Trust assets to the Aoraki Foundation and established the Mackenzie Charitable Fund. This move will protect these funds for the Mackenzie community in perpetuity which has delighted the former trustees. It did not take long for the trustees to know they made the right move with the Aoraki Foundation announcing a new gift to the fund of $35,000 at the launch event in Fairlie.
You can read more about the Mackenzie Charitable Fund here
To find our more about transferring a trust please email:
Kirsty Burnett, Gift & Community Advisor at kirsty@aorakifoundation.org.nz