18th Jun 2024 Gemini 1.5 Pro
Cheryl Spain, Executive Director of The Gift Trust, explains that the organization is a donor-advised fund operating in New Zealand. Unlike traditional donor-advised funds, The Gift Trust operates with a more personalized approach, offering bespoke research and acting as a conduit between donors and charitable causes.
Spain describes The Gift Trust as "a bit like having a charitable bank account," where donors can contribute funds and advise on their distribution while the organization manages the administrative aspects. Donors retain control over their giving, choosing the recipients, frequency, and amounts, with the added benefit of The Gift Trust's expertise in navigating the complexities of the charitable sector.
"It's a combination of doing the gifting on their behalf, but also the research and support when they need it. Some donors need more and some need less. So that's the space that we fit in."
This structure not only simplifies giving for individuals and families but also alleviates the burden of establishing and managing private foundations, which can be administratively demanding, especially for smaller funds or across generations.
A key aspect of The Gift Trust's work is minimizing the administrative burden on nonprofits. Spain highlights the challenges faced by organizations that often have to navigate complex and time-consuming grant application processes, diverting resources from their core missions.
The Gift Trust aims to streamline this process by proactively approaching charities, conducting due diligence upfront using publicly available information, and maintaining minimal reporting requirements. This approach ensures that funds are distributed efficiently and that nonprofits can focus on their work rather than administrative tasks.
"The non-profits that get funded are not just the ones who can write well, right, who can write a good application because that's not a great way to choose who to support. Just because they happen to have employed somebody who's maybe good at writing grant applications doesn't mean they're the best at doing that piece of work. "
This commitment to reducing the administrative burden reflects a broader trend towards trust-based philanthropy, where funders prioritize relationships, open communication, and streamlined processes to empower nonprofits to effectively deliver on their missions.
Spain observes several emerging trends in the New Zealand philanthropic landscape. She highlights a growing emphasis on collaboration and information sharing among funders, aiming for a more strategic and impactful allocation of resources. This includes identifying funding gaps, coordinating efforts, and ensuring comprehensive support for various sectors.
Furthermore, there's a growing recognition within the New Zealand philanthropic community of the urgent need for increased funding for environmental initiatives. Despite the escalating climate crisis, only a small percentage of philanthropic dollars are directed towards environmental causes.
"Our stats in New Zealand are not great... really anywhere between say 3 and 6 or 7 percent of total philanthropic dollars is one of the figures that gets bandied around around how much might go to the environment as a whole."
Another significant trend is the shift towards funding systems change initiatives rather than solely focusing on immediate needs. This involves supporting organizations and movements tackling the root causes of social and environmental issues, aiming for long-term, sustainable solutions.
In partnership with Open Collective, The Gift Trust established Gift Collective, a platform providing a charitable structure for small, emerging, or temporary projects in New Zealand. This initiative addresses the challenge of accessing funding and managing finances for groups that may not have the capacity or need to establish their own charitable entities.
"So the Gift Collective basically is a tool that is under The Gift Trust's legal umbrella. So it's our entity, but it's a partnership which we use the Open Collective platform. And what Gift Collective does is it allows small emerging businesses, usually small, usually emerging groups in New Zealand, which are charitable, have charitable purpose, to be auspiced under our charitable umbrella."
Gift Collective offers these groups a transparent and accountable platform for managing finances, crowdfunding, receiving donations, and showcasing their work. This fosters trust and credibility, attracting both individual donors and larger philanthropic funders.
The Gift Trust is expanding its reach through a partnership with Give to Asia, joining a new network aimed at facilitating cross-border philanthropy within the Asia Pacific region. Recognizing the growing interest in supporting causes beyond national borders, this network aims to connect donors with impactful projects across the region.
"And what they would like to do is have a philanthropic partner, one in each of those countries. And we are the philanthropic partner in New Zealand. And we've now formed this new network. It's very early days. We haven't even given it a name yet."
This network will act as a knowledge hub, providing donors with information and connections to vetted projects aligned with their philanthropic goals. Initially, the network will focus on establishing a pooled fund dedicated to climate justice and equity, supporting initiatives addressing the disproportionate impact of climate change on vulnerable communities across the Asia Pacific region.
Airtable