What is a Community Foundation?

  • It is a registered charitable trust that is set up to inspire generosity in its local area and provide ongoing support for the charities and community groups that operate there.

  • The capital remains invested forever, and it is the income that is distributed each year.

  • In summary, it is a perpetual and parochial charitable trust established to encourage philanthropy for the benefit of a local community. 

Why a Clutha Foundation?

  • The emergence of community foundations in New Zealand is a response to the ever-increasing awareness that people have a real desire to make a lasting difference to their people, their environment and their community.

  • The Clutha Foundation has been established to:

  • take advantage of the inherent generosity of residents of the Clutha District

  • to provide an overarching and unapologetically parochial charitable trust for the benefit of Clutha District all residents, and organisations

  • proactively identify projects and opportunities for the benefit of, and support of residents and organisations within` the Clutha District

  • It is a response to the lack of Charitable Trusts based in, and located within the Clutha District

  • It also provides a viable option for people who live in the Clutha District to give in the Clutha District

Who runs the Clutha Foundation?

  • The Clutha Foundation Incorporated operates under a Trust deed and is registered as a Charitable Trust and has Charities Services Registration 

  • The Trustees are appointed by the Patron (currently Sir William English) on the recommendation of the Nominations Committee

  • Trustees are appointed based on their standing in our community, their governance experience, their passion for the Clutha District, and are to be geographically and gender representative

  • The current Trustees are:  Bill Thomson (Chair) Hamish Anderson (Deputy Chair) Noel O’Malley (Lawyer) Susie Johnstone (Accountant), Kerry Seymour, Fiona Hancox, Will Clarke, Peter McNab, Ruth Wylie (Iwi representative), Gaynor Finch (Clutha District Council representative) 

  • The trustees are volunteers committed to ensuring a strong and caring foundation supporting our communities

What does the Clutha Foundation aim to achieve?

Establishing a significant capital fund (up to $10m) which it will invest to earn income to be used to support charitable purposes in the Clutha District.

What does the Clutha Foundation do?

  • Promotes generosity - You don’t have to be wealthy to make a difference. Creating a compassionate, caring community just needs kind and thoughtful people. The CF aims to make the process as easy and rewarding as possible so that everyone can contribute in a way that works best for them, whether that be giving during their lifetime, or in their Will, or both.

  • Manages the capital funds donated to the Foundation through an Investment Advisory Committee that oversees investment recommendations and works with the Foundation’s investment advisor.  

  • Distributes Income each year - distributions are based on the annual income of the foundation from its funds invested after adjustments for inflation (future proofing the fund) and a capped  contribution to administration costs.  

  • The CF also provides the opportunity for donors to provide “Pass Through” funds where the whole gift (rather than the income) is distributed.   The Community Trust Of Otago (for five years) and some personal endowment donors are providing “pass through funding”. 

  • The Grants Committee seeks and receives applications, and makes recommendations to the Board as to how the available funds shall be distributed to organisations (grants) and individuals (scholarships) within the guidance of a robust framework and the overriding principles of fairness and equity. 

How will the Clutha Foundation establish a viable capital fund?

  • Encourage Clutha district residents to make donations to the Foundation 

  • Encourage Clutha residents to leave a bequest to the Foundation in their will/trust

  • Encourage the establishment of “Community Funds” 

Donations qualify for the Tax Donation rebate 

How can you help the Clutha Foundation succeed?

  • Consider becoming a “Foundation Donor” 

  • Consider encouraging “Workplace Giving” to the Foundation at your business 

  • Consider being a “Workplace Giver”

  • Consider executing a codicil to your will to provide for a bequest

  • Consider becoming a “Founding Forty Giver” contributing to the Foundations running costs. 

  • Consider establishing or contributing to a “Community Fund” in your community 

The Clutha Foundation has documentation in place to facilitate all of the above options - which is available at no cost to the Donee.

Ways to Give:

  • Living giving - Donations during your lifetime

  • Leave a gift in your will  - leaving a gift in your will to your own named fund or to the Community Foundation’s general fund.

  • Workplace Giving – small amounts, regularly, which over time grow to be something significant for your community

  • Giving Circle – think a social ‘book club without the books’ the social way to give and to support causes that you choose collectively.

  • Charitable Trusts – existing or looking to establish; the Community Foundation can manage compliance requirements, investments, and effective grant making.  Can provide the means to support a particular project or need without the significant workload.

  • Personal/Private Endowments – individuals can establish a private endowment – ensuring the annual income will continue to go to a named cause – forever.

  • Community Funds – a community can establish a fund, for the purposes of benefitting, a defined geographical area enabling parochial giving within small districts.   At this point the Kai and Owaka communities have established community funds. 

  • Founding Forty – donors who are committed to the success of the Foundation and regularly contribute to its running costs, either through payroll giving or an annual sum of $1,000 pa.

Other than bequests, giving is eligible for a tax rebate of 1/3.   In other words giving with a “warm” hand rather than a “cold” one has immediate tax benefits for you and your family.

What is involved in becoming a Foundation Donor?

Persons who donate in cash towards the first $1m in capital will be regarded as Foundation Donors, and permanently recognised as such.  The minimum Foundation Donation is $1,000.

What is Workplace Giving”?

Workplace or payroll giving is an easy way to give back to the local community with regular donations through your employer’s payroll system.  Workplace giving enables you to receive an immediate tax rebate of 1/3 of the gross donation.  As an example your donation of $7.50 only costs you $5 but provides $7.50 to the Foundation.

What is “Founding Forty Giving”?

Founding forty givers are donors who commit to an annual sum – paid either fortnightly or annually - to support the running costs of the Foundation.   

What is a “Private Endowment”?

A named Trust of $50,000 or more can be established within the Foundation

  • Money granted is given to the specific purpose or purposes chosen by the donor

  • A minimum donation of $5,000 in cash is required to establish a personal endowment, with a commitment to ensure the total commitment will be a minimum of $50,000 on the death of the donor

  • For investment purposes all donations received by the Foundation are consolidated under one Investment Fund

  • The CF will report to donors each year as to grants made from private endowments

  • Grants will commence when the committed funds have been received in full

What is a “Community Fund”?

A community funds is established by a group within a community for the purposes of benefitting a defined geographical area.  The founding group provide the establishment amount - $5,000 – and define the area and purposes of the fund.  These funds enable parochial giving within small districts and an avenue for individuals to have some involvement in how their donation will be used.  

How will the Foundation be managed?

  • The initial administration of the Foundation was provided by Clutha Development Inc at no cost.

  • Supported by the Tindal Foundation (for the first four years) and Founding Forty donors, the Foundation employs a part time Executive Officer (EO)

  • The EO manages the day to day operations of the Foundation, promotes the Foundation, liaises with Donors, and assists in evaluating donation applications etc.

  • The Trustees support the EO, are engaged in promoting the foundation in their communities.  They meet monthly providing sound stewardship over investments, and facilitating fair and equitable granting within a robust framework and provide their services “gratis” 

How will the Foundation ensure that the maximum possible income is distributed?

  • The Foundation is committed to making the maximum difference it can and to this end policies are in place re:

    • Annual administration cost will not exceed 1% of funds under management.  

    • Donated capital remains intact and is invested to provide benefit in perpetuity

    • No more than 1% of income of your donation will be used to cover annual administration costs.

    • Establishment and operational costs have been covered by the generous support of 

    • Clutha Development Inc. who provided administration services for the first year.  

    • The Tindall Foundation Milestone programme which provides significant funding for four years to support establishment costs for new foundations

    • Founding Forty givers who commit to ongoing giving for the purposes of administration costs

    • Trustees are not remunerated