New trust coming to town
A NEW type of charitable trust, the Western Australian Community Foundation, will debut in the State on June 10.
So, what is a community foundation?
Its purpose is to support local voluntary and community activity through the establishment of permanently endowed funds for that community.
Community foundations are a new breed of not for profit organisation – Australia’s oldest is the Melbourne Community Fund which started in 1997 – and the WACF goes a step further.
Most community funds cater for a specific interest group.
The WACF will act as an umbrella for a number of community or interest-based groups.
These community groups would be able to use the foundation’s legal structure and tax deductible status for their fund raising activities.
They would then give those funds to the foundation and, in return, pay an annual fee of 1 per cent of the funds they have under management.
However, they would also earn interest on those funds, much the same as an investor in a mutual fund would.
A funds manager is yet to be appointed for the WACF.
The cost savings to the community groups are potentially large.
Feasibility studies conducted by the Foundation for Regional and Rural Renewal in the Wheatbelt region found it would cost $64,000 to set it up a community foundation, with an ongoing investment of $51,000 required each year.
It will cost about $350,000 to $400,000 a year to set up and keep the WACF going. Funding for the first year has been gained thanks to a WA Government grant.
The foundation is searching for corporate sponsorship to cover its ongoing costs.
Some corporate help has already been gleaned through accounting firm Ernst & Young. EY tax partner Frank Cooper is also the foundation’s chairman.
Other donors include Home Building Society, which has offered office free space for two years, iiNet which is providing ADSL access for the first 12 months, RSM Bird Cameron acting as pro bono auditors and Freehills as pro bono lawyers.
The foundation has lured Barwon Health Foundation executive director and former Starlight Children’s Foundation development manager Kathryn Sydney-Smith back to Perth to be its CEO.
Ms Sydney-Smith said the idea behind the foundation was to help community groups provide for their future.
Besides managing the funds for the groups the foundation will also provide education and mentoring to the groups.
Besides Mr Cooper, other board members are St John of God Health Care Subiaco CEO Dr Neale Fong, Hydillowah Farm director Jayne Mouritz, Anglicare WA CEO Ian Carter, Innovative Leadership Australia managing director David Beurle, Alinta chairman Tony Howarth, Marketforce chairman Howard Read, Strategic Avenues director Michael Anderson and Corrs Chambers Westgarth partner Kanaga Dharmananda.
WA Governor John Sanderson is its patron.
