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Our Model The concept of a community foundation lends itself to working with communities of all shapes and sizes: from inner city groups wishing to develop youth activities, to rural townships needing to improve community facilities, to businesses wanting to take a more strategic approach to their giving.
Three feasibility studies conducted in WA by the Foundation for Regional & Rural Renewal (FRRR) helped shape and define the way in which Western Australian Community Foundation engages with communities. FRRR identified that the costs involved with establishing and maintaining a number of separate community foundations were considerable, with an investment of approximately $64,000 required to establish each community foundation and ongoing costs likely to exceed approximately $50,000 per annum (FRRR, Community Foundations Kit, 2003).
Hence a shared model approach was taken, enabling communities to benefit from the opportunity of creating funds for the future within an existing structure, without the administrative burden and cost of managing their own foundation.
How Does it Work?
Western Australian Community Foundation serves as an umbrella organisation, providing the necessary financial and legal frameworks – as well as the support services – that enable communities to raise funds and generate an income for themselves in perpetuity.
Western Australian Community Foundation’s financial model is also a vehicle through which businesses, individuals and other groups can direct their giving to communities around the state. All donations go towards building an endowed fund – a corpus invested in strategic long-term investments. As the base grows, so does the return on investment. Grants are made from the interest and dividends (return), so the corpus (endowed fund) remains and grows with additional donations, enabling long-term financial security – or the ‘future proofing’ – of Western Australia’s communities.
Western Australian Community Foundation’s key aim is to assist communities in Western Australia establish sustainable funding options in a framework and environment that is conducive to sharing, learning, mentoring and open communication.
As Trustee, the Foundation is the umbrella organisation for WA communities to benefit from philanthropy without the burden of administration and governance responsibilities. Donations (gifts) are accepted and managed to earn annual income which is reinvested in the nominated community as a regular source of funds for future generations.
Desired long term outcomes include an increased focus on building social capital in communities, leading to stronger, self reliant communities and a vibrant and sustainable state.
One of the strengths of the Foundation’s model is that it offers communities, groups, organisations and individuals great flexibility through the option to establish a donation fund or trust. Donations and gifts go towards establishing a permanent corpus of funds, with the interest earned on this corpus distributed in the form of grants to selected local projects and initiatives.
Rationale
Rationale for WA communities:
Rationale for business:
Rationale for philanthropists (donors):
Western Australian Community Foundation’s strategic approach to supporting communities provides a flexible model, embracing the philosophy of perpetuity, to assist communities control their own destiny.
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