21 Feb 2022
Why are Community Foundations the fastest form of philanthropy globally? This white paper provides the answers why Community Foundations are not just growing globally but locally as well.
The greatest inter-generational transfer of wealth is human history is currently underway as the baby boomers are transferring their wealth to the next generation. This unprecedented inter-generational wealth transfer is estimated to be around $150B across NZ over the next 20 years.
Across the world, donors are getting more strategic with their giving and seeking out enduring structures to manage their charitable giving
Benefits of Community Foundations include
By taking care of compliance, administrative matters, Investment and governance donors can focus on the giving rather than governance matters
They provide an easier alternative to setting up a charitable trust while still being flexible enough to meet philanthropic aspirations
Having a close connection to local charities and causes means Community Foundations are in a unique position to facilitate effective giving locally
Achieving economies of scale and maximising community returns by resettling local trust funds into one, independent local structure
As a not-for-profit entity, Community Foundations are built around a lean transparent and cost recovery model so as to maximise the impact of every dollar given.
The charity sector is changing and communities are looking for smarter ways to manage community funds. Generous locals are looking for an easy way to leave a personal local legacy. Having an all-encompassing, well-governed structure for communities, simply makes a lot of sense.
"Just as many of the great challenges of our time are too big to be tackled in isolation, so too can philanthropic efforts be collectivised for the common goods of our communities. There are significant benefits to be gained from the charitable sector moving steadily towards a more collaborative model, like that offered by local Community Foundations
Community Foundations of New Zealand and Dentons Kensington Swan have co-written this White Paper: Community Foundations - a new way of thinking about charity, philanthropy and working with clients.