Kathy Davis from Artsupport Australia presents on philanthropy & fundraising. Please also note the uploaded document prepared by Kathy, 'Top 10 tips for working with philanthropic trusts and foundations.'

1. An initiative of the Australia Council for the Arts to grow cultural
philanthropy

2. 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

3. Objectives
• For you to understand and incorporate philanthropy as
part of the solution to financial challenges facing the arts
sector
Format
• questions throughout
• part one - overview on philanthropy and the arts
• part two – case study, group exercise and presentations

4. Definition
Philanthropy is Greek for
• Love of human kind
Modern interpretion
• Giving for charitable purposes – no strings
attached

5. Philanthropy is …
different from :
• Government (public initiatives for public good) &
• Business (private initiatives for private good).
• Difference between philanthropy and
sponsorship

6. History of Artsupport Australia

7. Why have an Artsupport Australia?
• To support the arts in developing philanthropy
• Many arts organisations derive too much income from
too limited a number of sources - DANGER
• To grow philanthropy by identifying potential
philanthropists and developing relationships
• To provide a matching service i.e. matching projects to
non-government funders

8. 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 up
by private individuals/families or corporates

9. 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 gain
vital support
• Develop philanthropy plan which is presented to the Board
• Support the organisation in rolling out the plan including
helping them to match projects with Trusts/Foundations
• Maintain relationship with the Board and the organisation

10. 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 own
programs/research
• Generally quite free from government control, but must
fund charitable purposes
• To be eligible for funding from a trust or foundation you
need to be a Deductible Gift Recipient in 99.9% of
cases

11. Examples
Sidney Myer, Ian Potter, Harold Mitchell,
Perpetual, CAL Cultural Fund, Coca-
Cola Australia, Colonial, Foundation for
Young Australians, Collier Charitable
Fund, FRRR, GCBF, Gordon Darling, J B
Seed, John T Reid, Westpac, Rio Tinto,
Macquarie, Mazda, Nelson Meers,
Scanlon, Scully, Sony, Telstra, Trust
Company, Vodafone…to name a few.

12. How do you research them?
https://www.ourcommunity.com
.au/newsletter/1/sample.pdf
Just Google Our Community

13. Philanthropy in Australia
• PA estimates there are over 2,500 foundations in Australia
disbursing half a billion to $1 billion annually
• There has been significant growth in the number of
foundations since the introduction of Prescribed Private Funds
(PPF’s) structure in 2001 (now over 800 & they are now called
Private Ancillary Funds with slightly different rules)
• Many of the older foundations are based in Victoria due to
past tax incentives in Victoria
• Foundations are independent entities
• Important legal constraints govern foundations
• All foundations are different with separate aims and methods

14. Philanthropy in Australia
• Some foundations can only fund in particular
geographic areas
• Foundations like to co-fund…but be careful not to see
them as just another pot of money
• Many will not fund what they regard as a government
responsibility
• They are all different and frequently change their
priorities, so do your research
• Develop relationships with them by picking up the phone
well in advance of the closing date and posing intelligent
questions following your web research

15. Eligibility - Know Your Tax Status
• Most foundations legally must fund certain types of
organisation
• Some must fund only TCC (tax concession charity) or
DGR (deductible gift recipient) and some must fund
organisations with both endorsements
• The ATO is responsible for endorsing non-profits as TCC
or 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

16. Eligibility - Know Your Tax Status
• Most foundations legally must fund certain types of
organisation
• Some must fund only TCC (tax concession charity) or
DGR (deductible gift recipient) and some must fund
organisations with both endorsements
• The ATO is responsible for endorsing non-profits as TCC
or 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

17. • Get yourself on the Register of Cultural
Organisations – 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

18. Observed impact of GFC to date
• Less well established visual artists experiencing difficulty
achieving sales over $10,000
• Art sales through the 3 big auction houses fell by 27% to
75% 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 from
filming 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

19. Positives
• Work by recognised/well established visual
artists has continued to sell well in commercial
galleries in Mel, Syd, Bris and C’berra
• Modest growth in sales for smaller
paintings/prints/graphics by emerging visual
artists
• Consistent growth in philanthropy through Private
Ancillary Funds

20. 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