Philanthropy How to Guide: Effective Grant-Seeking Supported by - Philanthropy Australia

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Philanthropy How to Guide: Effective Grant-Seeking Supported by - Philanthropy Australia
 

	
            	
  

       Philanthropy
       How to Guide:
       Effective
       Grant-Seeking	
  
                     	
  
       	
                   Supported	
  by	
  
Acknowledgements	
  
Philanthropy	
   Australia	
  gratefully	
  acknowledges	
  the	
  many	
  individuals	
  who	
   provided	
  input	
  
and	
   comment	
  on	
  some	
  parts	
  of	
  this	
  document	
  including	
  Charlotte	
  Francis,	
  VIC	
  Manager	
  
and	
  Grants	
  Strategist,	
  Strategic	
  Grants,	
  who	
  provided	
  editorial	
  support.	
  	
  	
  
	
  
Disclaimer	
  
This	
  publication	
  is	
  intended	
  as	
  a	
  guide	
  only	
  and	
  not	
  as	
  a	
  substitute	
  for	
  professional	
  advice.	
  No	
  
person	
  should	
  act	
  upon	
  or	
  in	
  reliance	
  upon	
  it	
  without	
  first	
  obtaining	
  advice	
  from	
  an	
  appropriate	
  
qualified	
  professional	
  adviser.	
  	
   Philanthropy	
  Australia	
  is	
  not	
  responsible	
  for	
  any	
  actions	
  taken	
  by,	
  
or	
  losses	
  suffered	
  by,	
  any	
  person	
  on	
  the	
  basis	
  of,	
  or	
  in	
  reliance	
  upon,	
  any	
  information	
  in	
  this	
  
publication,	
  nor	
  for	
  any	
  omission	
  or	
  error	
  in	
  this	
  publication.	
  
	
  
Without	
  limiting	
  the	
  generality	
  of	
  the	
  above,	
  the	
  publisher,	
  and	
  the	
  authors,	
  consultants	
  and	
  editors	
  
of	
  this	
  publication,	
  expressly	
  disclaim	
  all	
  and	
  any	
  liability	
  and	
  responsibility	
  to	
  any	
  person,	
  whether	
  a	
  
purchaser	
  or	
  reader	
  of	
  this	
  publication	
  or	
  not,	
  in	
  respect	
  of	
  anything,	
  and	
  of	
  the	
  consequences	
  of	
  
anything,	
  done	
  or	
  omitted	
  to	
  be	
  done	
  by	
  any	
  such	
  person	
  in	
  reliance,	
  whether	
  wholly	
  or	
  partially,	
  
upon	
  the	
  whole	
  or	
  any	
  part	
  of	
  the	
  contents	
  of	
  this	
  publication.	
  
	
                                               	
  

                                                                                                                                                        1	
  
	
  
Contents	
  
	
  
1.	
     Introduction	
  ..................................................................................................................................	
  3	
  
2.	
  	
   What	
  this	
  guide	
  covers	
  .................................................................................................................	
  4	
  
3.	
  	
   Philanthropy	
  in	
  Australia	
  ..............................................................................................................	
  5	
  
4.	
     Legal/	
  taxation	
  requirements	
  .......................................................................................................	
  7	
  
5.	
     What	
  are	
  the	
  different	
  types	
  of	
  philanthropic	
  funders?	
  .............................................................	
  8	
  
6.	
     Styles	
  of	
  giving	
  ............................................................................................................................	
  12	
  
7.	
     Researching	
  funders	
  ....................................................................................................................	
  14	
  
8.	
     Preparing	
  your	
  submission	
  .........................................................................................................	
  16	
  
9.	
     What	
  if	
  your	
  submission	
  is	
  successful?	
  ......................................................................................	
  21	
  
10.	
   What	
  if	
  your	
  submission	
  is	
  unsuccessful?	
  ..................................................................................	
  23	
  
11.	
   Final	
  words	
  ..................................................................................................................................	
  24	
  
12.	
   Additional	
  Resources	
  ..................................................................................................................	
  25	
  
13.	
  	
  	
  Further	
  Reading	
  ...........................................................................................................................	
  25	
  
14.	
   Glossary	
  .......................................................................................................................................	
  29	
  
	
  
                                                                                                                                                                       2	
  
	
  
1.	
        Introduction	
  
	
  
The	
  word	
  ‘philanthropy’	
  is	
  often	
  used	
   but	
  many	
  people	
  find	
  the	
  world	
  of	
  philanthropy	
  quite	
  
mysterious.	
  	
  There	
  are	
  many	
  different	
  meanings	
  to	
  the	
  word,	
  usually	
  depending	
  on	
  whom	
  
you	
  ask.	
  	
  In	
  the	
  context	
  of	
  this	
  guide,	
  we	
  will	
  be	
  using	
  Philanthropy	
  Australia’s	
  definition,	
  
which	
  is:	
  
	
  
The	
  planned	
  and	
  structured	
  giving	
  of	
  money,	
  time,	
  information,	
  goods	
  and	
  services,	
  voice	
  
and	
  influence	
  to	
  improve	
  the	
  wellbeing	
  of	
  humanity	
  and	
  the	
  community.	
  
	
  
In	
  practical	
  terms,	
  much	
  of	
  the	
  philanthropy	
  that	
  happens	
  in	
  Australian	
  involves	
  gifts	
  of	
  
money	
  granted	
  to	
  not-­‐for-­‐profit	
  entities	
  by	
  philanthropic	
  organisations	
  and	
  individuals,	
  
collectively	
  referred	
  to	
  as	
  ‘funders’	
  or	
  ‘grant-­‐makers’	
  in	
  this	
  guide.	
  	
  This	
  publication	
  is	
  
designed	
  as	
  a	
  basic	
  guide	
  to	
  these	
  funders,	
  how	
  they	
  operate,	
  and	
  how	
  you	
  can	
  research	
  
them	
  and	
  apply	
  to	
  them	
  for	
  funding.	
  
	
  
We	
  always	
  recommend	
  that	
  you	
  seek	
  income	
  from	
  a	
  variety	
  of	
  different	
  sources	
  rather	
  
than	
  rely	
  on	
  philanthropic	
  funding	
  alone.	
  	
  You	
  cannot	
  depend	
  on	
  philanthropic	
  funding	
  or	
  
be	
  certain	
  that	
  your	
  submissions	
  will	
  receive	
  support	
  -­‐	
  there	
  are	
  no	
  magic	
  phrases	
  or	
  
surefire	
  tactics.	
  	
  However,	
  this	
  guide	
  contains	
  information	
  and	
  tips	
  to	
  improve	
  your	
  
chances	
  of	
  grant	
  success.	
  	
  
	
  
                                                                                                                                                 3	
  
	
  
2.	
  	
          What	
  this	
  guide	
  covers	
  
	
  
This	
  guide	
  will	
  provide	
  you	
  with	
  advice	
  on:	
  
	
  
•            The	
  different	
  types	
  of	
  funders	
  and	
  what	
  are	
  they	
  looking	
  for	
  when	
  they	
  	
  
             review	
  submissions.	
  
•            How	
  to	
  research	
  for	
  funders.	
  
•            What	
  kind	
  of	
  information	
  you	
  need	
  to	
  provide	
  to	
  funders.	
  
•            What	
  to	
  include	
  in	
  your	
  application	
  for	
  funding	
  –	
  and	
  what	
  to	
  leave	
  out.	
  
•            What	
  to	
  do	
  when	
  you	
  are	
  successful	
  or	
  unsuccessful.	
  
	
  
You	
  will	
  find	
  that	
  much	
  of	
  the	
  advice	
  in	
  this	
  guide	
  is	
  common	
  sense,	
  however	
  grant-­‐seeking	
  
requires	
  forward	
  planning,	
  research	
  and	
  a	
  strategic	
  approach	
  so	
  you	
  do	
  need	
  to	
  invest	
  
sufficient	
  time	
  and	
  resources.	
  	
  
	
  
	
                                                    	
  

                                                                                                                                                4	
  
	
  
3.	
  	
     Philanthropy	
  in	
  Australia	
  
	
           Written	
  by	
  Dr.	
  Wendy	
  Scaife,	
  Associate	
  Professor,	
  Director,	
  The	
  Australian	
  Centre	
  
             for	
  Philanthropy	
  and	
  Nonprofit	
  Studies,	
  QUT	
  Business	
  School,	
  Queensland	
  
             University	
  of	
  Technology	
  
	
  
The	
  story	
  of	
  Australian	
  philanthropy	
  has	
  ancient	
  roots,	
  is	
  influenced	
  often	
  by	
  towering	
  individuals	
  
and	
  everyday	
  Aussies,	
  molded	
  by	
  rare	
  but	
  significant	
  policy	
  moments,	
  and	
  continues	
  to	
  be	
  written.	
  

The	
  practice	
  of	
  giving	
  on	
  this	
  continent	
  is	
  eons	
  old.	
  	
  The	
  rich	
  traditions	
  of	
  the	
  indigenous	
  Aboriginal	
  
and	
  Torres	
  Strait	
  Islanders	
  honour	
  reciprocity	
  and	
  relationships	
  with	
  ancestral	
  lands,	
  nature	
  and	
  
clan,	
  and	
  an	
  assumption	
  that	
  wealth	
  is	
  distributed.	
  	
  

Eighteenth	
  century	
  colonization	
  as	
  a	
  penal	
  settlement	
  heralded	
  a	
  more	
  British	
  style	
  of	
  charity	
  that	
  
established	
  Australia’s	
  current	
  nonprofit	
  legal	
  foundations	
  and	
  an	
  enduring	
  philosophy	
  of	
  the	
  
government	
  as	
  the	
  main	
  provider.	
  	
  This	
  history	
  contrasts	
  with	
  the	
  United	
  States,	
  which	
  eschewed	
  its	
  
British	
  heritage	
  in	
  favour	
  of	
  Abraham	
  Lincoln’s	
  ‘of	
  the	
  people,	
  by	
  the	
  people,	
  for	
  the	
  people’	
  
approach.	
  	
  Some	
  believe	
  this	
  ethos	
  that	
  the	
  community	
  rather	
  than	
  government	
  is	
  responsible	
  for	
  
meeting	
  needs	
  explains	
  the	
  perceived	
  stronger	
  culture	
  of	
  giving	
  in	
  the	
  United	
  States	
  compared	
  with	
  
countries	
  such	
  as	
  Australia	
  or	
  the	
  United	
  Kingdom.	
  

Certainly	
  in	
  19th	
  century	
  Australia	
  a	
  government	
  presence	
  is	
  evident	
  through	
  subsidy	
  of	
  some	
  of	
  the	
  
considerable	
  charity	
  and	
  social	
  work	
  performed	
  by	
  faith-­‐based	
  organisations,	
  such	
  as	
  The	
  New	
  South	
  
Wales	
  Society	
  for	
  Promoting	
  Christian	
  Knowledge	
  and	
  Benevolence	
  (now	
  the	
  Benevolent	
  Society),	
  
Australia’s	
  oldest	
  remaining	
  charity	
  that	
  was	
  formed	
  in	
  1813.	
  	
  England	
  and	
  many	
  of	
  its	
  other	
  colonies	
  
at	
  this	
  time	
  were	
  seeing	
  the	
  rise	
  of	
  charities	
  and	
  the	
  merchant/industrialist	
  class	
  as	
  benefactors	
  of	
  
community	
  need.	
  	
  Australia	
  too,	
  later	
  in	
  this	
  era	
  and	
  early	
  in	
  the	
  20th	
  century	
  saw	
  the	
  advent	
  of	
  
substantial	
  philanthropy	
  from	
  some	
  of	
  those	
  who	
  had	
  amassed	
  their	
  fortunes	
  in	
  the	
  new	
  colony	
  
from	
  gold	
  mining	
  and	
  other	
  enterprises.	
  	
  Prominent	
  citizens,	
  often	
  prompted	
  by	
  their	
  ‘good	
  wives’	
  
led	
  the	
  campaigns	
  to	
  build	
  schools,	
  hospitals	
  and	
  orphanages,	
  and	
  establish	
  ambulance	
  services	
  in	
  
this	
  inhospitable	
  land	
  of	
  dangerous	
  snakes,	
  spiders	
  and	
  tempestuous	
  weather	
  events.	
  	
  Board	
  service	
  
was	
  a	
  common	
  elite	
  contribution	
  and	
  sometimes	
  governments	
  provided	
  matched	
  incentives	
  to	
  
develop	
  education	
  or	
  health	
  services	
  for	
  the	
  growing	
  populace.	
  	
  	
  

The	
  1880s	
  saw	
  the	
  start	
  of	
  the	
  Trustee	
  Company	
  movement	
  in	
  Australia	
  where	
  the	
  charitable	
  
endowments	
  and	
  estate	
  wishes	
  of	
  affluent	
  citizens	
  were	
  managed,	
  sometimes	
  multi-­‐generationally.	
  	
  	
  

Some	
  of	
  the	
  early	
  philanthropists’	
  actions	
  of	
  this	
  era	
  were	
  visionary	
  and	
  cast	
  a	
  long	
  shadow.	
  	
  
Examples	
  include	
  South	
  Australia’s	
  still	
  active	
  Wyatt	
  Benevolent	
  Institution	
  formed	
  in	
  1881	
  by	
  Dr.	
  
William	
  Wyatt,	
  thought	
  to	
  be	
  the	
  nation’s	
  oldest	
  philanthropic	
  foundation.	
  	
  Notable	
  too	
  was	
  the	
  
advocacy	
  and	
  legacy	
  of	
  flamboyant,	
  white-­‐suited,	
  confectionery	
  tycoon	
  Sir	
  MacPherson	
  Robertson,	
  
who	
  role-­‐modelled	
  large	
  scale	
  giving	
  for	
  affluent	
  citizens,	
  sometimes	
  in	
  ‘forward	
  thinking’	
  areas	
  such	
  
as	
  setting	
  up	
  a	
  girls’	
  high	
  school.	
  	
  Significantly,	
  the	
  entrepreneurial	
  man	
  behind	
  iconic	
  product	
  names	
  
such	
  as	
  Freddo	
  Frogs,	
  Columbines	
  and	
  Cherry	
  Ripe	
  also	
  sweetened	
  the	
  act	
  of	
  giving.	
  	
  Robertson	
  
influenced	
  the	
  government	
  in	
  Victoria	
  to	
  foster	
  giving	
  through	
  tax	
  incentives	
  whereby	
  death	
  duties	
  
were	
  deductible	
  if	
  people	
  established	
  a	
  charitable	
  foundation	
  in	
  their	
  will.	
  	
  	
  

	
                                                 	
  

                                                                                                                                                                 5	
  
	
  
Such	
  was	
  the	
  uptake	
  of	
  this	
  notion	
  enshrined	
  in	
  the	
  Victorian	
  Probate	
  Act	
  of	
  1907	
  that	
  the	
  weight	
  of	
  
Australia’s	
  philanthropy	
  become	
  largely	
  housed	
  in	
  the	
  state	
  of	
  Victoria	
  and	
  directed	
  internally	
  there,	
  
from	
  its	
  preponderance	
  of	
  Australia’s	
  charitable	
  foundations.	
  	
  	
  

The	
  Boer	
  War	
  of	
  1899	
  –	
  1902	
  and	
  the	
  Great	
  War	
  of	
  1914	
  –	
  1918	
  engaged	
  a	
  different	
  level	
  of	
  
community	
  philanthropy.	
  Patriotic	
  Funds	
  saw	
  townships	
  rally	
  as	
  givers.	
  	
  Post-­‐WWI,	
  committees	
  of	
  
returned	
  soldiers,	
  sailors	
  and	
  airmen	
  banded	
  together	
  to	
  raise	
  funds	
  for	
  often	
  tax	
  deductible	
  war	
  
memorial	
  projects.	
  

By	
  the	
  1930s,	
  some	
  sense	
  of	
  the	
  sheer	
  impact	
  of	
  individual	
  philanthropic	
  foundations	
  was	
  evident.	
  	
  
An	
  oft-­‐cited	
  example	
  is	
  the	
  Sidney	
  Myer	
  Fund	
  established	
  in	
  1934	
  upon	
  the	
  death	
  of	
  this	
  community-­‐
minded	
  and	
  beloved	
  immigrant	
  retailer.	
  	
  The	
  £150,000	
  gift	
  (more	
  than	
  $10	
  million	
  dollars	
  in	
  today’s	
  
terms)	
  has	
  translated	
  to	
  programs	
  and	
  projects	
  across	
  Australia	
  as	
  the	
  accumulated	
  interest,	
  further	
  
family	
  contributions	
  and	
  fourth	
  generation	
  thinking	
  multiply	
  the	
  original	
  impact.	
  

As	
  in	
  giving	
  across	
  the	
  world,	
  religion	
  has	
  played	
  its	
  part.	
  	
  For	
  instance,	
  at	
  the	
  community	
  level,	
  
weekly	
  ‘two	
  bob	
  in	
  the	
  plate’	
  giving	
  to	
  support	
  Churches	
  was	
  the	
  forerunner	
  of	
  today’s	
  regular	
  giving	
  
whereby	
  a	
  set	
  amount	
  is	
  donated	
  typically	
  weekly	
  from	
  the	
  pay-­‐packet	
  or	
  monthly	
  via	
  credit	
  card	
  or	
  
bank	
  account	
  debit.	
  	
  In	
  the	
  1950s,	
  the	
  US-­‐based	
  Wells	
  Organisation	
  brought	
  the	
  concept	
  of	
  Church	
  
fundraising	
  into	
  Australia	
  and	
  small	
  and	
  larger	
  scale	
  giving	
  was	
  being	
  generated	
  for	
  missionary	
  
services,	
  and	
  building	
  funds.	
  	
  Post	
  WWII,	
  the	
  growth	
  of	
  a	
  well-­‐to-­‐do	
  middle	
  class	
  enabled	
  large	
  direct	
  
mail	
  campaigns	
  that	
  continue	
  to	
  fund	
  many	
  causes	
  today.	
  	
  Meantime,	
  the	
  government	
  assumes	
  an	
  
even	
  stronger	
  role	
  in	
  social	
  welfare	
  supporting	
  the	
  work	
  of	
  charities	
  and	
  the	
  concept	
  of	
  endowed	
  
charitable	
  foundations	
  continued	
  to	
  grow.	
  	
  Examples	
  of	
  the	
  power	
  of	
  endowment	
  funds	
  include	
  the	
  
Ramiciotti	
  Foundation	
  set	
  up	
  in	
  1970	
  with	
  $6.7M,	
  which	
  has	
  since	
  given	
  away	
  $56M	
  and	
  continues	
  
to	
  be	
  a	
  major	
  contributor	
  to	
  biomedical	
  science.	
  	
  

The	
  1970s	
  ushered	
  in	
  the	
  formation	
  of	
  Philanthropy	
  Australia’s	
  precursor,	
  the	
  Australian	
  Association	
  
of	
  Philanthropy,	
  the	
  continued	
  growth	
  of	
  corporate	
  foundations	
  such	
  as	
  the	
  Utah	
  Foundation	
  and	
  
also	
  Australia’s	
  first	
  community	
  foundation,	
  the	
  Victorian	
  Community	
  Foundation	
  (what	
  is	
  now	
  
known	
  as	
  the	
  Australian	
  Communities	
  Foundation	
  was	
  born	
  from	
  the	
  Victorian	
  Community	
  
Foundation)	
  formed	
  under	
  the	
  auspices	
  of	
  a	
  bank	
  with	
  two	
  other	
  states	
  following	
  soon	
  after.	
  	
  The	
  
notion	
  of	
  sub-­‐funds,	
  place-­‐based	
  giving	
  and	
  community	
  foundations	
  accelerated	
  in	
  the	
  late	
  90s	
  and	
  
early	
  in	
  the	
  new	
  Millennium	
  and	
  corporate	
  foundations	
  also	
  developed	
  alongside	
  the	
  corporate	
  
social	
  responsibility	
  trend.	
  	
  

Around	
  this	
  time	
  too,	
  the	
  Howard	
  Government	
  established	
  the	
  original	
  Prime	
  Minister’s	
  Business	
  
and	
  Community	
  Partnership	
  and	
  announced	
  a	
  policy	
  platform	
  to	
  increase	
  philanthropy.	
  	
  Workplace,	
  
cultural	
  and	
  environmental	
  giving	
  incentives	
  emerged	
  along	
  with	
  the	
  Prescribed	
  Private	
  Funds	
  
structure	
  (now	
  Public	
  Ancillary	
  Funds)	
  in	
  2001.	
  	
  

More	
  recently,	
  the	
  past	
  decade	
  has	
  seen	
  the	
  advent	
  of	
  various	
  forms	
  of	
  collective	
  giving,	
  most	
  
prominent	
  among	
  these	
  giving	
  circles	
  where	
  members	
  join	
  to	
  give	
  a	
  predetermined	
  amount	
  and	
  
select	
  what	
  cause	
  their	
  pooled	
  funds	
  will	
  benefit.	
  Calls	
  for	
  more	
  giving	
  structures	
  that	
  broaden	
  the	
  
notion	
  of	
  who	
  is	
  a	
  philanthropist	
  are	
  likely	
  to	
  drive	
  the	
  next	
  change	
  in	
  this	
  ongoing	
  story	
  of	
  
generosity,	
  which	
  is	
  so	
  underscored	
  by	
  the	
  timeless	
  Australian	
  ethos	
  of	
  mateship	
  and	
  helping	
  a	
  
stranger.	
  	
  	
                                                	
  

                                                                                                                                                            6	
  
	
  
4.	
         Legal/	
  taxation	
  requirements	
  
	
  
•	
      Some	
  foundations	
  can	
  only	
  fund	
  organisations	
  that	
  the	
  ATO	
  has	
  endorsed	
  as	
  a	
  
         Deductible	
  Gift	
  Recipient	
  (DGR).	
  
	
  
•	
      Some	
  foundations	
  can	
  only	
  fund	
  organisations	
  that	
  are	
  registered	
  with	
  the	
  ACNC	
  and	
  
         endorsed	
  for	
  tax	
  concessions	
  by	
  the	
  ATO.	
  
	
  
•	
      Some	
  foundations	
  can	
  only	
  fund	
  organisations	
  that	
  are	
  both	
  of	
  the	
  above.	
  
	
  
•	
      Some	
  foundations	
  can	
  fund	
  almost	
  any	
  not-­‐for-­‐profit	
  entity	
  provided	
  that	
  the	
  funding	
  
         is	
  spent	
  on	
  activities	
  which	
  are	
  legally	
  charitable.	
  
	
  
Some	
  foundations	
  can	
  only	
  fund	
  organisations	
  that	
  have	
  a	
  certain	
  kind	
  of	
  DGR	
  
endorsement.	
  	
  There	
  are	
  two	
  main	
  kinds	
  of	
  DGRs:	
  
	
  
Item	
  1	
   DGRs,	
  known	
  informally	
  as	
   ‘doing’	
  DGRs.	
  	
  These	
  are	
  the	
  organisations	
  which	
   carry	
  
out	
  the	
  hands-­‐on	
   work	
  –	
  health	
  promotion,	
  environmental,	
  arts	
  and	
  welfare	
  organisations	
  
etc.	
  
	
  
Item	
  2	
  DGRs,	
  known	
  informally	
  as	
  ‘giving’	
  DGRs	
  –	
  which	
  have	
  no	
  purpose	
  other	
  than	
  to	
  
make	
  or	
  collect	
  money	
  in	
  order	
  to	
  give	
  it	
  away.	
  
	
  
The	
  rule	
  is	
  that	
  one	
  ‘giving’	
  DGR	
  cannot	
  give	
  to	
  another	
  ‘giving’	
  DGR.	
  	
  Most	
  organisations	
  
that	
  are	
  seeking	
  grants	
  from	
  foundations	
  are	
  Item	
  1	
  DGRs,	
  ‘doing’	
  charities,	
  but	
  there	
  are	
  
some	
  entities	
  which	
  have	
  been	
  set	
  up	
  as	
  fundraising	
  foundations	
  –	
  often	
  attached	
  to	
  a	
  
hospital	
  or	
  cultural	
  entity	
  –	
  which	
  are	
  ‘giving’	
  DGRs.	
  	
  There	
  are	
  many	
  funds,	
  including	
  
Private	
  Ancillary	
  Funds	
  (see	
  Section	
  4),	
  which	
  cannot	
  fund	
  the	
  ‘giving’	
  type	
  of	
  DGR.	
  
	
  
To	
  ascertain	
  an	
  organisation’s	
  charitable	
  and/or	
  tax	
  status	
  go	
  to:	
  	
  
	
  
ABB	
  Lookup:	
  	
   http://abr.business.gov.au	
  	
  
	
  
ACNC:	
   	
  	
              http://www.acnc.gov.au	
  	
  
	
  
	
                                                     	
  

                                                                                                                                              7	
  
	
  
5.	
         What	
  are	
  the	
  different	
  types	
  of	
  philanthropic	
  funders?	
  
	
  
This	
  guide	
  focuses	
  on	
  how	
  to	
  seek	
  grants	
  from	
  philanthropic	
  funders.	
  	
  These	
  are	
  funders	
  
who	
  have	
  an	
  asset	
  base	
  known	
  as	
  a	
  corpus	
  and	
  use	
  the	
  income	
  generated	
  to	
  provide	
  grants	
  
or	
  make	
  impact	
  investments.	
  	
  Although	
  this	
  is	
  not	
  a	
  guide	
  to	
  seeking	
  Government	
  funding,	
  
many	
  of	
  the	
  same	
  principles	
  apply.	
  
	
  
Funders	
  derive	
  income	
  from	
  their	
  investments,	
  socially	
  responsible	
  investments	
  and	
  
potentially	
  via	
  impact	
  investments.	
  	
  Generally,	
  they	
  allocate	
  the	
  income	
  generated	
  as	
  
grants,	
  but	
  more	
  recently,	
  some	
  funders	
  are	
  investing	
  directly	
  in	
  social	
  enterprises.	
  	
  
	
  
In	
  Australia	
  there	
  are	
  a	
  variety	
  of	
  different	
  types	
  of	
  funders	
  and	
  each	
  type	
  will	
  have	
  an	
  
impact	
  on:	
  
        •      How	
  easy	
  it	
  is	
  for	
  you	
  to	
  find	
  and	
  to	
  communicate	
  with	
  them.	
  
         •    The	
  types	
  of	
  project	
  they	
  will	
  and	
  will	
  not	
  fund.	
  
         •    The	
  amount	
  of	
  funding	
  they	
  will	
  have	
  available.	
  
         •    When	
  you	
  can	
  apply	
  for	
  funding.	
  
         •    What	
  their	
  requirements	
  and	
  expectations	
  of	
  you,	
  the	
  grant	
  recipient,	
  will	
  be.	
  
	
  
The	
  following	
  descriptions	
  are	
  general	
  in	
  nature	
  and	
  designed	
  to	
  provide	
  you	
  with	
  a	
  guide	
  
to	
  the	
  different	
  kinds	
  of	
  philanthropic	
  funders,	
  what	
  they	
  support,	
  how	
  they	
  operate	
  and	
  how	
  
they	
  are	
  managed.	
  
	
  
Private	
  foundations	
  
	
  
Typically,	
  a	
  ‘private	
  foundation’	
  is	
  one	
  that	
  has	
  been	
  established	
  by	
  an	
  individual	
  or	
  family	
  
as	
  part	
  of	
  their	
  Will/estate/bequest	
  and	
  is	
  managed	
  by	
  independent	
  Trustees	
  under	
  the	
  
terms	
  of	
  the	
  Trust	
  Deed.	
  	
  Private	
  foundations	
  vary	
  greatly,	
  not	
  only	
  in	
  size	
  depending	
  on	
  
the	
  amount	
  of	
  the	
  original	
  bequest,	
  but	
  also	
  in	
  their	
  purpose	
  as	
  determined	
  by	
  the	
  wishes	
  
of	
  the	
  original	
  benefactor.	
  	
  Some	
  private	
  foundations	
  may	
  try	
  to	
  retain	
  a	
  ‘family	
  linkage’	
  to	
  
the	
  original	
  benefactor;	
  however,	
  the	
  Trustees	
  manage	
  the	
  private	
  foundation	
  
independently,	
  except	
  where	
  living	
  family	
  members	
  are	
  Trustees.	
  	
  
	
  
‘Non-­‐discretionary’	
  private	
  foundations	
  allocate	
  their	
  funds	
  to	
  individual	
  charities	
  where	
  the	
  
benefactor	
  has	
  left	
  money	
  in	
  their	
  Will	
  to	
  benefit	
  a	
  specific	
  organisation.	
  	
  An	
  example	
  
would	
  be:	
  “I	
  want	
  the	
  funds	
  to	
  go	
  to	
  the	
  Lost	
  Dogs’	
  Home	
  and	
  the	
  Royal	
  Children’s	
  
Hospital”.	
  	
  When	
  this	
  occurs,	
  funds	
  will	
  be	
  allocated	
  in	
  perpetuity	
  to	
  those	
  named	
  
organisations	
  and,	
  as	
  such,	
  these	
  private	
  foundations	
  are	
  not	
  available	
  as	
  sources	
  of	
  
funding	
  for	
  other	
  charitable	
  organisations.	
  
	
  
Private	
  foundations	
  known	
  as	
  ‘discretionary’	
  are	
  those	
  where	
  funds	
  are	
  left	
  to	
  benefit	
  
certain	
  purposes	
  such	
  as	
  the	
  arts,	
  education,	
  a	
  specific	
  geographic	
  area,	
  people	
  with	
  disabilities	
  
or	
  ‘general	
  charitable	
  purposes’,	
  rather	
  than	
  specific	
  organisations.	
  	
  The	
  purpose	
  of	
  a	
  
private	
  foundation	
  reflects	
  not	
  only	
  the	
  wishes	
  of	
  the	
  original	
  benefactor	
  but	
  also	
  the	
  
prevailing	
  social	
  and	
  economic	
  needs	
  at	
  the	
  time	
  of	
  establishment.	
  	
  This	
  is	
  why	
  
contemporary	
  societal	
  issues	
  such	
  as,	
  for	
  example,	
  refugees	
  and	
  asylum	
  seekers,	
  may	
  not	
  
be	
  reflected	
  in	
  the	
  granting	
  guidelines	
  of	
  many	
  private	
  foundations,	
  especially	
  those	
  that	
  
were	
  created	
  in	
  the	
  early	
  20th	
  Century.	
  	
  
	
  
                                                                                                                                                 8	
  
	
  
If	
  the	
  funding	
  purpose	
  for	
  which	
  the	
  foundation	
  was	
  originally	
  set	
  up	
  no	
  longer	
  exists	
  –	
  for	
  
example,	
  a	
  trust	
  established	
  in	
  the	
  1920s	
  to	
  fund	
  orphans	
  with	
  polio,	
  then	
  the	
  Trust	
  Deed	
  
can	
  be	
  amended.	
  	
  This	
  is	
  a	
  lengthy	
  legal	
  process	
  that	
  has	
  to	
  be	
  initiated	
  by	
  the	
  foundation	
  
Trustees,	
  and	
  any	
  changes	
  are	
  not	
  undertaken	
  lightly.	
  In	
  fact,	
  as	
  long	
  as	
  the	
  original	
  purpose	
  
of	
  the	
  foundation	
  can	
  still	
  be	
  fulfilled,	
  there	
  are	
  unlikely	
  to	
  be	
  any	
  changes.	
  	
  Only	
  in	
  cases	
  
where	
  the	
  original	
  purpose	
  is	
  obsolete	
  and	
  cannot	
  be	
  fulfilled,	
  would	
  the	
  Trustees	
  make	
  an	
  
application	
  to	
  have	
  the	
  deed	
  amended.	
  	
  For	
  instance,	
  a	
  fund	
  that	
  was	
  established	
  solely	
  to	
  
support	
  environmental	
  groups	
  to	
  purchase	
  land	
  for	
  conservation	
  purposes	
  must	
  fund	
  only	
  
that	
  purpose	
  until	
  there	
  are	
  no	
  longer	
  any	
  eligible	
  groups	
  carrying	
  out	
  that	
  particular	
  work.	
  	
  
The	
  foundation’s	
  Trustees	
  cannot	
  decide	
  that	
  they	
  would	
  prefer	
  to	
  give	
  the	
  funds	
  to,	
  say,	
  
arts	
  or	
  welfare	
  organisations	
  instead.	
  	
  
	
  
Other	
  foundations	
  are	
  prohibited	
  by	
  their	
  governing	
  documents	
  from	
  funding	
  certain	
  types	
  
of	
  entities	
  or	
  projects	
  –	
  for	
  example,	
  some	
  foundations	
  are	
  unable	
  to	
  fund	
  capital	
  works	
  as	
  
their	
  Trust	
  Deed	
  specifically	
  prevents	
  them	
  from	
  doing	
  so.	
  	
  This	
  is	
  why	
  it	
  is	
  so	
  important	
  to	
  do	
  
your	
  research	
  first	
  and	
  to	
  read	
  a	
  funder’s	
  guidelines.	
  	
  Because	
  no	
  matter	
  how	
  strong	
  your	
  
application	
  for	
  capital	
  funding,	
  or	
  however	
  much	
  the	
  Trustees	
  may	
  endorse	
  it	
  personally,	
  they	
  
are	
  legally	
  unable	
  to	
  provide	
  funding	
  if	
  the	
  Trust	
  Deed	
  excludes	
  funding	
  for	
  capital	
  works.	
  	
  	
  
	
  
Private	
  foundations	
  are	
  governed	
  by	
  the	
  requirements	
  of	
  the	
  Will/Trust	
  Deed	
  –	
  rather	
  than	
  
specific	
  legislation	
  and	
  as	
  such	
  may	
  be	
  able	
  to	
  support	
  general	
  charitable	
  purposes	
  (i.e.	
  
they	
  are	
  not	
  limited	
  to	
  charitable	
  organisations	
  and/or	
  those	
  with	
  DGR	
  1	
  status).	
  	
  
	
  
The	
  management	
  of	
  private	
  foundations	
  consists	
  of	
  two	
  main	
  types:	
  
	
  
1. Private	
  foundations,	
  which	
  are	
  generally	
  larger,	
  may	
  operate	
  independently	
  with	
  
       Trustees	
  self-­‐managing	
  their	
  operations,	
  governance,	
  investments	
  and	
  grant-­‐making.	
  	
  
       They	
  may	
  also	
  employ	
  staff	
  to	
  assist	
  the	
  Trustees	
  in	
  performing	
  their	
  duties	
  and	
  
       responsibilities.	
  
       	
  
2. Smaller	
  private	
  foundations,	
  or	
  those	
  where	
  the	
  benefactor	
  appoints	
  an	
  organisation	
  to	
  
       be	
  one	
  of	
  the	
  Trustees,	
  may	
  be	
  managed	
  by	
  a	
  trustee	
  company.	
  	
  Trustee	
  companies	
  are	
  
       profit-­‐making	
  entities	
  that	
  are	
  legally	
  empowered	
  to	
  act	
  as	
  professional	
  Trustees	
  for	
  all	
  
       kinds	
  of	
  trusts,	
  including	
  charitable	
  trusts.	
  	
  Trustee	
  companies	
  have	
  been	
  administering	
  
       philanthropic	
  funders	
  for	
  over	
  a	
  century	
  and	
  are	
  often	
  chosen	
  by	
  donors	
  who	
  do	
  not	
  
       have	
  heirs	
  or	
  other	
  people	
  they	
  can	
  appoint	
  to	
  look	
  after	
  their	
  private	
  foundation.	
  	
  
	
  
A	
  trustee	
  company	
  will	
  sometimes	
  manage	
  the	
  private	
  foundation	
  completely	
  –	
  looking	
  
after	
  both	
  the	
  investment	
  portfolio	
  and	
  the	
  grant-­‐making.	
  	
  In	
  other	
  cases,	
  they	
  will	
  only	
  
manage	
  the	
  investments.	
  A	
  trustee	
  company	
  may	
  act	
  as	
  the	
  sole	
  Trustee	
  for	
  the	
  foundation,	
  
or	
  it	
  could	
  be	
  one	
  of	
  several	
  Trustees.	
  	
  	
                                               	
  

                                                                                                                                                             9	
  
	
  
Family	
  foundations	
  
	
  
Family	
  foundations	
  consist	
  of	
  either	
  living	
  donors	
  or	
  living	
  people	
  with	
  a	
  close	
  connection	
  to	
  
the	
  founder	
  who	
  may	
  themselves	
  be	
  donors	
  to	
  the	
  foundation	
  or	
  have	
  a	
  family	
  connection	
  
to	
  the	
  person	
  who	
  established	
  the	
  family	
  foundation.	
  	
  They	
  normally	
  give	
  funds	
  via	
  a	
  Public	
  
Ancillary	
  Fund	
  (sub-­‐fund)	
  or	
  a	
  Private	
  Ancillary	
  Fund.	
  	
  
	
  
Sub-­‐funds	
  generally	
  allow	
  people	
  who	
  may	
  not	
  have	
  enough	
  money	
  to	
  establish	
  a	
  Private	
  
Ancillary	
  Fund,	
  so	
  that	
  they	
  can	
  be	
  involved	
  in	
  philanthropy.	
  	
  Sub-­‐funds	
  are	
  management	
  
accounts	
  (via	
  a	
  trust	
  company,	
  community	
  foundation	
  or	
  any	
  other	
  entity	
  which	
  establishes	
  
a	
  Public	
  Ancillary	
  Fund	
  Endowment	
  structure)	
  bearing	
  their	
  own	
  name	
  (e.g.	
  The	
  Jane	
  Smith	
  
Family	
  Fund)	
  and	
  established	
  for	
  specific	
  charitable	
  purposes.	
  
	
  
With	
  family	
  foundations,	
  funding	
  decisions	
  are	
  often	
  influenced	
  by	
  personal	
  preferences	
  or	
  
interests,	
  and	
  the	
  Trustees	
  may	
  include	
  the	
  original	
  founder,	
  partner,	
  sons,	
  daughters	
  
and/or	
  grandchildren.	
  	
  They	
  have	
  greater	
  flexibility	
  to	
  change	
  what	
  is	
  funded	
  over	
  time,	
  
especially	
  when	
  new	
  generations	
  take	
  over	
  as	
  Trustees.	
  
	
  
Many	
  Family	
  Foundations	
  are	
  very	
  private	
  and	
  do	
  not	
  accept	
  unsolicited	
  applications	
  for	
  
funding.	
  	
  This	
  is	
  usually	
  because	
  they	
  are	
  very	
  specific	
  about	
  their	
  funding	
  priorities,	
  are	
  
very	
  small	
  and	
  have	
  no	
  paid	
  staff	
  with	
  family	
  members	
  acting	
  as	
  Trustees	
  over	
  and	
  above	
  
their	
  other	
  commitments.	
  	
  These	
  foundations	
  tend	
  to	
  research	
  and	
  self-­‐select	
  which	
  
charities	
  they	
  want	
  to	
  fund,	
  or	
  they	
  may	
  co-­‐fund	
  in	
  collaboration	
  with	
  other	
  similar	
  
funders.	
  
	
  
Family	
  foundations	
  are	
  generally	
  structured	
  as	
  either	
  a	
  Private	
  Ancillary	
  Fund	
  or	
  a	
  Public	
  
Ancillary	
  Fund	
  and	
  can	
  only	
  support	
  charitable	
  organisations	
  for	
  charitable	
  purposes	
  with	
  
DGR	
  Item	
  1	
  status.	
  
	
  
Community	
  foundations	
  
	
  
Community	
  foundations	
  are	
  established	
  to	
  benefit	
  a	
  specific	
  geographic	
  area.	
  	
  Like	
  most	
  
philanthropic	
  funders,	
  they	
  have	
  a	
  corpus,	
  however	
  they	
  differ	
  from	
  private	
  and	
  family	
  
foundations	
  because	
  the	
  corpus	
  is	
  built	
  up	
  from	
  a	
  variety	
  of	
  sources	
  including	
  individuals,	
  
local	
  businesses	
  and	
  government	
  sources.	
  	
  Many	
  community	
  foundations	
  in	
  Australia	
  also	
  
receive	
  funding	
  from	
  bequests.	
  	
  They	
  make	
  grants	
  to	
  fund	
  local	
  activities	
  and	
  not-­‐for-­‐profit	
  
groups	
  and	
  may	
  also	
  fund	
  training	
  and	
  organisational	
  capacity	
  building.	
  	
  Community	
  
foundations	
  are	
  governed	
  by	
  a	
  board	
  of	
  people	
  from	
  within	
  a	
  specific	
  geographic	
  region,	
  
who	
  are	
  familiar	
  with	
  the	
  needs,	
  demographic	
  profile	
  and	
  community	
  organisations	
  in	
  that	
  
region.	
  	
  
	
  
Community	
  foundations	
  are	
  generally	
  structured	
  as	
  a	
  Public	
  Ancillary	
  Fund	
  and	
  can	
  only	
  
support	
  charitable	
  organisations	
  for	
  charitable	
  purposes	
  with	
  Deductible	
  Gift	
  Recipient	
  1	
  
status.	
  	
  	
                                   	
  

                                                                                                                                               10	
  
	
  
Corporate	
  foundations	
  
	
  
Companies	
  which	
  are	
  active	
  in	
  the	
  philanthropic	
  space	
  and/or	
  provide	
  community	
  donations	
  
and/or	
  sponsorships	
  and/or	
  corporate	
  social	
  responsibility	
  may	
  establish	
  their	
  own	
  corporate	
  
foundation.	
  	
  
	
  
These	
  corporate	
  foundations	
  may	
  be	
  established	
  as	
  a	
  separate	
  legal	
  entity	
  or	
  as	
  a	
  separate	
  division	
  
within	
  their	
  business.	
  	
  The	
  legal	
  structure	
  is	
  determined	
  by	
  where	
  the	
  funds	
  come	
  from	
  and	
  what	
  
they	
  are	
  funding.	
  	
  As	
  with	
  private	
  and	
  family	
  foundations,	
  corporate	
  foundations	
  set	
  up	
  as	
  a	
  
separate	
  legal	
  entities	
  are	
  charitable	
  in	
  nature	
  and	
  therefore	
  have	
  to	
  comply	
  with	
  the	
  same	
  rules	
  as	
  
regular	
  foundations.	
  	
  For	
  example,	
  they	
  can	
  only	
  fund	
  charitable	
  organisations	
  for	
  charitable	
  
purposes	
  with	
  DGR	
  1	
  status.	
  	
  Corporate	
  foundations	
  favour	
  organisations	
  or	
  projects	
  that	
  align	
  with	
  
their	
  corporate	
  mission	
  and	
  help	
  to	
  promote	
  and	
  build	
  the	
  profile	
  of	
  the	
  company.	
  	
  If	
  a	
  corporate	
  
foundation	
  is	
  structured	
  as	
  a	
  division	
  within	
  the	
  business	
  and	
  allocates	
  funds	
  directly	
  from	
  
operating	
  profit,	
  it	
  can	
  support	
  a	
  wide	
  variety	
  of	
  individuals	
  and	
  organisations,	
  both	
  charitable	
  and	
  
non-­‐charitable.	
  
	
  
Government-­‐initiated	
  foundations	
  
	
  
Some	
  foundations	
  were	
  set	
  up	
  by	
  Government	
  with	
  initial	
  seed	
  funding,	
  but	
  have	
  received	
  no	
  
further	
  government	
  funding	
  since	
  their	
  establishment.	
  	
  These	
  are	
  generally	
  independent	
  
foundations	
  which	
  have	
  gone	
  on	
  to	
  raise	
  further	
  funding	
  and	
  become	
  self-­‐sustaining.	
  	
  Examples	
  of	
  
these	
  kinds	
  of	
  organisations	
  include	
  the	
  Foundation	
  for	
  Young	
  Australians	
  and	
  the	
  Victorian	
  
Women’s	
  Trust.	
  	
  There	
  are	
  other	
  government-­‐initiated	
  foundations	
  which	
  operate	
  with	
  varying	
  
degrees	
  of	
  government	
  oversight;	
  this	
  is	
  usually	
  because	
  they	
  are	
  still	
  in	
  receipt	
  of	
  government-­‐
directed	
  support.	
  
	
  
Government-­‐initiated	
  foundations	
  have	
  many	
  advantages	
  for	
  grant-­‐seekers	
  as	
  they	
  are	
  
often	
  relatively	
  large,	
  publicly	
  advertise	
  their	
  granting	
  programs	
  and	
  usually	
  have	
  paid	
  staff	
  
available	
  to	
  discuss	
  your	
  application.	
  	
  However,	
  some	
  of	
  the	
  drawbacks	
  associated	
  with	
  
government	
  foundations	
  include	
  the	
  high	
  level	
  of	
  bureaucracy	
  and	
  detailed,	
  and	
  often	
  
complex,	
  reporting	
  requirements.	
  	
  There	
  are	
  also	
  other	
  government	
  funding	
  programs	
  
which	
  may	
  use	
  the	
  term	
  ‘Foundation’	
  in	
  their	
  titles.	
  
	
  
DGR	
  separately	
  listed	
  foundations	
  
	
  
On	
  some	
  occasions,	
  charitable	
  funders	
  may	
  obtain	
  separate	
  DGR	
  status	
  –	
  such	
  as	
  The	
  
Foundation	
  for	
  Rural	
  and	
  Regional	
  Renewal	
  (FRRR)	
  –	
  which	
  is	
  a	
  unique	
  organisation	
  created	
  
through	
  collaboration	
  between	
  philanthropy	
  and	
  Government.	
                     	
                                               	
  

                                                                                                                                                        11	
  
	
  
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