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Charities and their Finances

Charities and their Finances. Half of us are emotional analysts. FUNDRAISING CAN BE EXPENSIVE. Merchandising. Collections. Sponsorship. Bequests. Source: Fundraising Institute, 1995. Total Income. 8%*. * Excluding the Victorian Bushfire Appeal by Red Cross. Fundraising Income . 2%*.

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Charities and their Finances

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  1. Charities and their Finances

  2. Half of us are emotional analysts

  3. FUNDRAISING CAN BE EXPENSIVE Merchandising Collections Sponsorship Bequests Source: Fundraising Institute, 1995

  4. Total Income 8%* *Excluding the Victorian Bushfire Appeal by Red Cross

  5. Fundraising Income 2%* N = 165 charities * Excluding the Victorian Bushfire Appeal by Red Cross

  6. ASIAN TSUNAMI APPEALS • Rasied $302m one off 10% increase in giving

  7. TSUNAMI GIVING PER CAPITA • Australia $13.86 • UK $13.84 • USA $4.22

  8. Bequests N = 165 charities

  9. Charitable Donations Scheme Donations linked to corporate profits Hunter Hall shareholders give 5% Total Donations to date of over $7.4m

  10. Cost Base Challenges • Gov’t grants short-term • Managing stakeholders is expensive • Aquitting grants is expensive • Competition for talent • Compliance and regulatory overheads

  11. Diversifying Income • Gov’t grants • Public fundraising • HNW supporters • Pledges – social media • Bequests • Corporate partnerships • Cause-related marketing • Social enterprise • Trusts, PPFs and foundations

  12. Charity Asset Allocation Vinnies NSWVision Aust. Investments and property $320m $177m % % Cash 30 2 Fixed Interest 2 8 Shares 1 25 Property 67 59 Managed Investments - 6

  13. Asset Liability Matching Liability Asset Class Cash management account Term deposits Diversified fund Equities for dividend growth Property/growth assets • Working capital • Grants in advance • Capex reserve • Purpose-related bequests • Corpus

  14. Smarter Giving • Discourage low-return, low-connection giving • Support innovation and excellence • Give infrastructure and long-term giving a premium • Board members, be active and clear • Financial circumstances + cause

  15. Smarter Giving It’s OK to ask questions and get the facts. Good people and good charities expect it.

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