An initiative of the Australia Council for the Arts to grow culturalphilanthropy

Kathy Davis

Queensland manager

GPO Box 1436

Brisbane QLD 4001

t: 07 3235 4023

f: 07 3235 4001

m: 0417 068 483

e: k.davis@australiacouncil.gov.au

www.australiacouncil.gov.au/philanthropy

Objectives• For you to understand and incorporate philanthropy as

part of the solution to financial challenges facing the artssector

Format• questions throughout

• part one - overview on philanthropy and the arts

• part two – case study, group exercise and presentations

DefinitionPhilanthropy is Greek for

• Love of human kind

Modern interpretion

• Giving for charitable purposes – no strings

attached

Philanthropy is …

different from :

• Government (public initiatives for public good) &• Business (private initiatives for private good).

• Difference between philanthropy andsponsorship

History of Artsupport Australia

Why have an Artsupport Australia?

• To support the arts in developing philanthropy

• Many arts organisations derive too much income fromtoo limited a number of sources - DANGER

• To grow philanthropy by identifying potentialphilanthropists and developing relationships

• To provide a matching service i.e. matching projects tonon-government funders

Key focus areas

• To encourage income from donor programs

• These can include the following:

- annual giving

- major gifts

- capital campaigns

- events

- bequests

• Grants from philanthropic trusts and foundations set upby private individuals/families or corporates

Our process

• Client meeting

• Develop wish list

• Expand on this to truly understand was funds are needed for

• Talk with the Board to inspire them about projects and gainvital support

• Develop philanthropy plan which is presented to the Board

• Support the organisation in rolling out the plan includinghelping them to match projects with Trusts/Foundations

• Maintain relationship with the Board and the organisation

What is a Foundation?

• A non-government, non-profit organisation

• Usually has a principal fund or endowment

• Managed by trustees or board of directors

• Makes grants, primarily to non-profit organisations

• Sometimes a Foundation will carry out their ownprograms/research

• Generally quite free from government control, but mustfund charitable purposes

• To be eligible for funding from a trust or foundation youneed to be a Deductible Gift Recipient in 99.9% ofcases

Examples

Sidney Myer, Ian Potter, Harold Mitchell,Perpetual, CAL Cultural Fund, Coca-Cola Australia, Colonial, Foundation forYoung Australians, Collier CharitableFund, FRRR, GCBF, Gordon Darling, J BSeed, John T Reid, Westpac, Rio Tinto,Macquarie, Mazda, Nelson Meers,Scanlon, Scully, Sony, Telstra, TrustCompany, Vodafone…to name a few.

How do you research them?

https://www.ourcommunity.com

.au/newsletter/1/sample.pdf

Just Google Our Community

Philanthropy in Australia

• PA estimates there are over 2,500 foundations in Australiadisbursing half a billion to $1 billion annually

• There has been significant growth in the number offoundations since the introduction of Prescribed Private Funds(PPF’s) structure in 2001 (now over 800 & they are now calledPrivate Ancillary Funds with slightly different rules)

• Many of the older foundations are based in Victoria due topast tax incentives in Victoria

• Foundations are independent entities

• Important legal constraints govern foundations

• All foundations are different with separate aims and methods

Philanthropy in Australia

• Some foundations can only fund in particulargeographic areas

• Foundations like to co-fund…but be careful not to seethem as just another pot of money

• Many will not fund what they regard as a governmentresponsibility

• They are all different and frequently change theirpriorities, so do your research

• Develop relationships with them by picking up the phonewell in advance of the closing date and posing intelligentquestions following your web research

Eligibility - Know Your Tax Status

• Most foundations legally must fund certain types oforganisation

• Some must fund only TCC (tax concession charity) orDGR (deductible gift recipient) and some must fundorganisations with both endorsements

• The ATO is responsible for endorsing non-profits as TCCor DGR

• Notification(s) of endorsement: There are two types of DGR: DGR 1 and DGR 2 or “doing” and “giving” DGR – most foundations can fund only DGR 1

Eligibility - Know Your Tax Status

• Most foundations legally must fund certain types oforganisation

• Some must fund only TCC (tax concession charity) orDGR (deductible gift recipient) and some must fundorganisations with both endorsements

• The ATO is responsible for endorsing non-profits as TCCor DGR

• Notification(s) of endorsement: There are two types of DGR: DGR 1 and DGR 2 or “doing” and “giving” DGR – most foundations can fund only DGR 1

• Get yourself on the Register of CulturalOrganisations – Google ROCO

• Get DGR & TCC from ATO. Download GiftPack

• Identify funding needs i.e. develop wish list

• Determine best fundraising plan

• Recruit business minded board members

• Commit resources to developing relationships

Observed impact of GFC to date

• Less well established visual artists experiencing difficultyachieving sales over $10,000

• Art sales through the 3 big auction houses fell by 27% to75% between end 2007 and end 2008

• Up to 20 art centres in Central Australia – drop in turnover,with some experiencing drop of 50%

• Some big Hollywood productions have pulled back fromfilming in Queensland

• No particularly loud alarm bells re ticket sales• Some reductions in the size of donation & shorter term –

less 3 year funding• Some foundations have frozen funding or reduced grant

size• Huge increase in competition for foundation funding

Positives

• Work by recognised/well established visualartists has continued to sell well in commercialgalleries in Mel, Syd, Bris and C’berra

• Modest growth in sales for smallerpaintings/prints/graphics by emerging visualartists

• Consistent growth in philanthropy through PrivateAncillary Funds

Kathy Davis

Queensland Manager

GPO Box 1436

Brisbane QLD 4001

t: 07 3235 4023

f: 07 3235 4001

m: 0417 068 483

e: k.davis@australiacouncil.gov.au

www.australiacouncil.gov.au/philanthropy