Overview of private trusts and foundations
How they work
Many private trusts have been set up with funds from philanthropists who want to see their investments create continued community benefit. Private trusts are different from philanthropy as they are governed by a trust and not a single person.
Private trusts are often administered by legal and accountancy firms and you will hear of them by word of mouth. Using your networks and the networks of others in your organisation is vital as they’re less likely to be found online.
Unlike gaming trusts, philanthropic trusts will not usually tag their funding to a particular item. Instead, they ‘fund for outcomes’. How the funding is used to achieve the outcome is left to you. That said, a high degree of transparency on how the funding is applied is advisable.
Trusts often represent specific sectors or areas of need within a community and are therefore looking to support community projects within their area of interest.
Community benefit is an underlying requirement. Private trusts and foundations are run by people who want to know that they’re making a difference. They want to be both moved and excited by what you can do to address a need in the community. You need to be able to demonstrate the value that the funding will provide to the community at a variety of levels.
Applications and approaches; What you need to know. What you need to do
- It’s important to develop a relationship with key personnel overseeing a trust who will hopefully go on to champion your cause at board level.
- Private trusts tend to fund projects and organisations where there are high levels of trust and respect, so a relationship-based approach is important.
- Tapping into networks to open doors is key. Call on your organisation’s ambassadors to help with a letter of support or introduction to a private trust.
- You’ll need a deeper relationship than with say, a gaming trust. An effective option is to invite the trust personnel to your organisation so they can see what you’re doing.
- If a private trust has indicated interest, it is critical to understand what they are seeking from the funding relationship; what would success look like for them?
- Generally, there is no set application form. Often the application is by letter. Again, your compelling case can provide a framework for the letter.
- It is important that you remain in touch with fund managers and keep a close eye on new information in the philanthropic sector to identify new opportunities and to adjust expectations when required.
- When you secure funds keep communicating in line with the trust’s preferences and requirements, including how they want to be communicated with and how often.
Where to find Private Trusts and Foundations
https://www.perpetualguardian.co.nz/philanthropy/grants-and-scholarships