New way to support a local charity

Multiple Sclerosis South Canterbury Field Worker Fiona Pierce with Aoraki Foundation Chief Executive Richard Spackman

The Aoraki Foundation has launched a new type of funding model to support local charities called a Community Group Fund and it is proving to be popular. This unique model allows charities or community groups to start their own endowment fund within the Aoraki Foundation. An endowment fund is one where a gift/donation is invested and the income from that gift is given out each year to support the charity/group. It is a way of turning a capital sum into ongoing income forever.

In a few short months three charities have already started their own Community Group Fund – Multiple Sclerosis South Canterbury, Age Concern South Canterbury, and the Canterbury West Coast Air Rescue Trust (Westpac Helicopter. These charities are all looking to build a sustainable funding stream to meet their ongoing operational costs.

The catalyst for Multiple Sclerosis to start a fund was the sale of a long-held property in King Street. When the committee at the time were faced with managing the proceeds of the sale, they were nervous. As Treasurer, Barry Taylor describes “The problem when you have a lump-sum of money

sitting there, is the concern that over time it will trickle away, and you’ll have none left. Instead, we’d love to see it grow.” Fortunately, their solicitor referred them to speak with the Aoraki Foundation and after working through the options they soon knew a Community Group Fund in their own name was the best place for the money. The capital is now securely invested and Multiple Sclerosis is encouraging their supporters to contribute to the fund with donations or via a gift in their will. Barry goes on to say, “As a small charity we didn’t have the resources to start a bequest programme but the professional management of the Aoraki Foundation provides our supporters peace of mind that their gift will continue to support Multiple Sclerosis within South Canterbury for many years to come.”

As Aoraki Foundation Chief Executive Richard Spackman explains, “Our local charities are doing it tough at present. Operating costs have risen dramatically over the past three years and public funding just can’t keep up. This is why we are motivated to help charities develop an enduring funding stream from the generosity of their supporters.” He continues, “Establishing a Community Group Fund is really easy and best of all there are no costs to the charity, as we do all the administration and compliance.”

If you are interested in supporting one of these funds through the Aoraki Foundation or want to enquire about starting a new fund, please reach out to Kirsty Burnett, Aoraki Foundations’ Gift and Community Advisor, kirsty@aorakifoundation.org.nz

Thank you to The Timaru Courier for this article.