Australian foundations and the downturn

摘要

Building on the investigation of the Charity Commission (2009) on the effects of theudeconomic downturn on the largest trusts and foundation in the United Kingdom, theudpurpose of this research was to assess the extent to which Australian trusts andudfoundations were taking an actively strategic approach to their investments and pursuitudof mission (including grant-making), and the relationship between the two in the contextudof the economic downturn. Focus was given to identifying the issues raised as audconsequence of the economic downturn, rather than providing a generalised snapshotudof the ‘average’ foundations response.udIn September 2009, semi-structured, in depth interviews were conducted with executivesudof 23 grant making trusts and foundations. The interviews for this research focused onudthe largest grant makers in terms of grant expenditure, however included foundationsudfrom different geographical locations and from across different cause areas.udIt is important to stress at the outset that this was not a representative sample ofudfoundations; the study aimed to identify issues rather than to present a representativeudpicture of the ‘average’ foundation’s response. It is also important to note that the studyudwas undertaken in September 2009 at a time when many foundations were beginning toudfeel more optimistic about the longer term future, but aware of continuing and possiblyudworsening short term income problems. But whatever the financial future, some of theudunderlying issues, concerning investment and grant making management practices,udraised in this report will be of continuing relevance worthy of wider discussion. If a crisisudis too good to waste, it is also too good to forget.udOne other introductory point – as previously noted, interviews for this study wereudconducted in September 2009 – just one month prior to the introduction of the newudPrivate Ancillary Fund (PAF) legislation which replaced the previous Prescribed PrivateudFund (PPF) arrangement1. References to PAFs and/or PPFs reflect that time.