C4 Grant Analytics

Class 4 Data Analytical Review 2019

November 2020 kpmg.com/nz We passionately believe that the flow-on effect from focusing on helping fuel the prosperity of our clients significantly contributes to ensuring that our communities, and ultimately our country and all New Zealanders, will enjoy a more prosperous future.

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Mike Knell Acting Chair Inherent Limitations Gaming Machine Association New Zealand This report has been prepared in accordance with our engagement letter Dave Adams dated 18 June 2020. Unless stated otherwise in the engagement letter, Head of Government Relations and Strategic Foresight this report is not to be shared with third parties. Sport New Zealand The services provided under our engagement letter have not been Chris Thornborough undertaken in accordance with any auditing, review or assurance Director Gambling Regulatory System standards. The term “Audit/Review” used in this report does not relate to Department of Internal Affairs an Audit/Review as defined under professional assurance standards.

The information presented in this report is based on that made available to 13 November 2020 us in the course of our work. We have indicated within this report the Dear Mike, Dave and Chris sources of the information provided. Unless otherwise stated in this Class 4 Data Analytical Review 2019 report, we have relied upon the truth, accuracy and completeness of any information provided or made available to us in connection with the Thank you for the opportunity to support the Gaming Machine Association New Zealand, Sport New Zealand Services without independently verifying it. and the Department of Internal Affairs in providing a consolidated view of Class 4 community grants in 2019. This report sets out a summary of the work undertaken this year and compares it to the previous two year’s. No warranty of completeness, accuracy or reliability is given in relation to The information in this report is based on grants data received from Class 4 societies for approved grants in the the statements and representations made by, and the information and 2019 calendar year. As part of our work, we have sought to address some of the limitations identified documentation provided by parties consulted as part of the process. previously. Given the cleansing process we outline makes changes to the original data, all results should be considered alongside the original data with the challenges and limitations highlighted in this report. Third Party Reliance We consider there is an opportunity to repeat this exercise using the lessons learnt to continually enhance the This report is solely for Sport New Zealand, the Gaming Machine reporting and analysis capabilities of the sector. Suggestions for next year’s iteration are included in a separate Association New Zealand and the Department of Internal Affairs, and is report. This approach will aid in improving the transparency and accountability in the sector. not to be used for any other purpose or copied, distributed or quoted If you have any questions regarding this report, please do not hesitate to contact me or one of the team. whether in whole or in part to any other party without KPMG’s prior written consent. Kind regards, Other than our responsibility to Sport New Zealand, the Gaming Machine Association New Zealand and the Department of Internal Affairs, neither KPMG nor any member or employee of KPMG assumes any responsibility, or liability of any kind, to any third party in connection with the provision of this report. Accordingly, any third party choosing to rely on this report does so at their own risk.

Additionally, we reserve the right but not the obligation to update our Wouter de Vos report or to revise the information contained therein because of events Director, Lighthouse and transactions occurring subsequent to the date of this report.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 3 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Executive Summary

An overall increase in Report Layout Insights the amount granted per This report has four sections that discuss Class 4 grant allocation activities Over the past three years there has been an overall increase in the Society over the past in detail. amount granted per society. This increase has been driven by top 5 Societies with their funding growth proportionally larger than the rest of Section one is focused on setting the scene by providing the background three years has the sector. Funding for sport, community, and research and education and purpose of this report. This section also discusses the process used to have increased moderately in comparison to the other categories which resulted in an increase collect, collate, analyse and extract insights, and the limitations associated. have remained relatively constant. in sport, community, In section two we have highlighted key findings from our analysis of grant Most regions have experienced a natural growth in amount granted over approvals. Section three then compares, where possible, to the previous and research and the three years of tracking this data. This is in line with the year-on-year two calendar years data. This section clearly shows the increase in increase in total amount granted and suggests that these increases are education funding. community funding and benefits associated. being spread evenly back to the regions where the funds were generated Most New Zealand High-level Numbers from.

regions have In the 2019 calendar year, approximately 26.3k grants were approved for a Whilst these high-level numbers and insights are complete, the current experienced a natural total of $294m to 9.7k different organisations, excluding applied funds of regulations do not require standardisation of data treatment, this means there will be slight variations within the datasets. growth in their amount $25m (NZRB and Youthtown). granted, suggesting Sport had $153m (52%) of approved grants with the largest sub-category Data Management has been identified as the key area to improve on. rugby having $25.6m approved. Most grant applications that were Improving data management will enable deeper insights to be extracted even distribution across approved (82%) are under $100k. Looking at the grant approvals by region, with other fields collected being usable. This is also important for New Zealand. Auckland had the largest amount approved with $81m (27%) of total extending trends analysis. grants. Improved Data Management is key to enabling deeper sector insights in the future.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 4 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Contents

Page Executive Summary 4

1. Background and Purpose 7

2. Key Results 2019 11

3. Three Year Trends 21

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 5 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand.

1 Background and Purpose

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 7 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Background and Purpose Context

This report has been Background Scope commissioned by the The Class 4 gaming sector in New Zealand is regulated under applicable During 2019, there were 34 societies operating for a full calendar year in Gaming Machine primary legislation and regulations. One of the eight purposes of the the non-casino and non-club market. The information within this project Gambling Act 2003 is to ensure that money from gaming benefits the was volunteered by all of those societies and represents 100% of all Association New community. applicable grant funding dollars in 2019.

Zealand (GMANZ), Currently there is no independent centralised collation of all grants This is an improvement from 2017 where 32 societies responded and Sport New Zealand distributed to community groups from Class 4 societies. This acts as a 99% of all grant funding dollars was captured. barrier for providing an accurate and transparent sector-wide view of grant Further detail on the overall data collection, analysis and insights (SportNZ) and the activities across New Zealand. This includes quantity, location and purpose processes are provided on the following page. Department of Internal of approved grants in any one calendar year. Affairs (DIA) to support Purpose

an enhanced KPMG, in their third year of collating and analysing grants data, has been understanding of grant- commissioned by GMANZ, SportNZ and DIA to fill this reporting gap. The making by analysing purpose has remained to further understand how Class 4 societies undertake their grant-making distributions and the associated benefits approved grants in the across New Zealand. This has been done by analysing the 2019 grants and 2019 calendar year by where possible comparing these insights to the previous two years for trends. Class 4 societies. The participating organisations consider the work will provide a stronger evidential base to achieve a sustainable fund raising model for communities. Continuing past years work introduces greater transparency and reporting in the sector by analysing funding variance between years.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 8 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Background and Purpose Approach

Introduction Approach Improvements

Last year a template was developed to standardise grant 1. Data Collection Having KPMG manage this project over the last three years information received from societies, and to minimise cleaning Societies were asked to extract their 2019 calendar year grant has resulted in most Societies developing queries to extract effort required before extracting insights. activity information (template attached) and securely transfer information and/or plan ahead knowing that this project occurs to KPMG using the KPMG secure file transfer portal logins midyear. Some societies have shifted their grant data The template, designed in consultation with representatives assigned, or if not possible, a password-encrypted Microsoft capturing systems over to one of two main systems (Brand from all parties, had definitions of 32 fields (26 essential) with Excel workbook. Advantage and Fluxx). This will lead to future automated some containing a menu of names. For example, Territorial reporting (live dashboards) and standardisation. Local Authority (TLA) had a number code and/or name. 2. Data Consolidation Upon receipt of all Society information, a unified grants dataset Building on our work from previous years analysis, we The same format and data quality issues persist in 2017, 2018 indexed with a row level unique identifier was created. continue to refine the data cleansing process, enabling more as well as 2019 datasets. This is due to some societies time to be invested into the value-added analysis of data. claiming to be overburdened by an increased amount of 3. Algorithmic Cleansing Aligning organisational names based on New Zealand Business information requested which resulted in incomplete data. To This used previous years cleansed data and the New Zealand Number (NZBN) and subsequently filling in missing locations mitigate this, data has been cleansed using a mix of Business Number to align organisational names and recover are examples of time-saving processes that would otherwise algorithmic and manual processes. missing locational information. Hierarchical natural language be incurred in the manual cleansing phase. processing processed the category information. It is important to note that some recipient organisations are 4. Manual Cleansing not legal structures in their own right. Charities Services (DIA) Manual data cleansing was implemented predominately with have approved their charitable status, hence they are eligible the assistance of GMANZ to complete missing information and for consideration of funding. correct anomalies that algorithmic cleansing couldn’t mitigate.

5. Analysis Reporting After processing, an analysis dataset similar to previous years was used for reporting and dashboarding insights.

1 2 3 4 5 Data Data Algorithmic Manual Analysis Collection Consolidation Cleansing Cleansing Reporting

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 9 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Background and Purpose Limitations

Overview Key Limitations Future Focused

In 2020, the society data request template extended the Data management has been identified as the key limiting Having identified data management as the limiting factor, number of fields required to 35 (27 essential) from 32 fields factor of analysis and insight extraction of 2019 grants data. KPMG understands that Societies are not required by the (26 essential) in 2019. This resulted in similar data gaps This is similar to the previous two years where the amount of Department of Internal Affairs (DIA) to collect some of the experienced in 2019 and subsequently a smaller set of incomplete and inconsistent data received from Societies has more detailed fields. It is also important to note that some of variables available for analysis: resulted in cutting down the number of fields. the smaller Societies resources are scarce.

— Grant recipient/organisation name 1. Incomplete Data In only the third year of collating and analysing grants, it is In some cases incomplete data can be recovered using other crucial for future meaningful comparative insights to solve — New Zealand Business Number (NZBN) fields whilst others cannot. For example Category could be these challenges. For what has been perceived as an ad-hoc — Application status recovered using natural language processing of an applicants project in the last three years will now be focused on tidying organisational name, however, such functionality is not up processes for future years. — Approved grant amount possible with a field such as ethnicity. Even when using this Early investment and uptake is required to enable deeper — Main category (e.g. Sport) method to recover incomplete data, there are underlying insights down the line. KPMG sees improvement year on year algorithm limitations which mean this analysis may not be — Sub-category (e.g. Rugby) which indicates that Society’s are working towards improved entirely error-free. grants data. — Detailed grant purpose (if available) 2. Inconsistent data — Region This can be mitigated using either previous years information or that within the current year. For example applicant — Territorial Local Authority (TLA) organisational name can be better aligned throughout the dataset if there is a common NZBN between organisations. This specific example relies on applicants to enter their NZBN correctly for accurate matching and allocation of standardised organisational name.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 10 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 2 Key Results 2019

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 11 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 Summary

In 2019, approximately $294mIn 2019, of approximately grant funding was$290m approved of grant across funding 26,337was approved grants toacross 9,688 $294m 42% 43% 26,337 grants to $319m different organisations. 14,400 different 34 approved grants of GMP approved grants and of GMP In addition, over $25m applied funds* organisations. societies provided was applied by the data NewIn addition, Zealand over Racing $22m *Youthtown applied funds were estimated by averaging the 2018 and 2019 fiscal years Boardwas applied ($17m) by and the Approved Grants by Main Category YouthtownNew Zealand($8m) Racing to

supportBoard ($15m) their own and Other 0.17% activitiesYouthtown in ($8m)their to Arts and support their own 26.3k 8.08% community. Culture activities. approved grants 52% of the granted Health / Welfare / 8.59% amounts54% of the were granted sports - Rescue Services

amountsrelated and distributed 20% Research and 11.36% wereCommunity. sports- relatedOnly Education and0.17% 19% of werethe amounts Community 19.70% Communitygranted were related. classified 9.7k Onlyas ‘Other’. 0.17% of the grant recipients Sport 52.11% amounts granted were classified as either $0m $50m $100m $150m $200m ‘other’ or ‘Environment and Animals’. Community also contains grants approved for bettering the Environment and Animals

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 12 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 Which are the largest grant-making societies?

All 34 active societies Approved Grants by Society provided data as part of New Zealand Community Trust 15.86% the data collection. The Lion Foundation 13.53% Pub Charity Ltd 12.39% New Zealand Grassroots Trust Ltd 6.56% One Foundation Ltd 5.14% Community Trust, the Trillian Trust 4.68% Lion Foundation and The Southern Trust 4.33% Air Rescue and Community Services 4.10% Pub Charity Limited are Four Winds Foundation Ltd 3.87% again the societies that The Trusts Community Foundation 3.79% BlueSky Community Trust Ltd 2.92% granted the most, Pelorus Trust 2.29% accounting for Oxford Sports Trust 2.05% ILT Foundation 1.82% approximately 41% of North and South Trust Limited 1.77% Trust House Foundation 1.49% the total amount New Zealand Racing Board 1.48% granted in 2019. Mainland Foundation Ltd 1.42% Infinity Foundation Ltd 1.40% Dragon Community Trust Ltd 1.32% Rano Community Trust Ltd 1.13% The Akarana Community Trust Limited 0.99% Cert Your Local Gaming Trust Ltd 0.96% Bendigo Valley 0.81% Trust Aoraki Ltd 0.62% Manukau Counties Trust 0.61% First Light Community Foundation 0.59% Milestone Foundation Ltd 0.56% Mt Wellington Foundation Ltd 0.40% Constellation Communities Trust Ltd 0.37% Youthtown 0.36% Blue Waters 0.25% Redwood Trust Inc 0.12% Kaiwaka Sports Association Inc 0.02% $0m $10m $20m $30m $40m $50m

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 13 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 Which sports receive the most grant funding?

We categorized the Approved Grants by Sport Caveats sportWe categorized grants into the 111 In addition to the sports represented below, there is likely to be further Canoe $1.0m funding provided to support sports through other categories, such as sportingsport grants codes into to 79 Athletics $1.3m community and education (e.g. school based sports). The data below representsporting codes the diversity to Squash $1.4m represents funding for sports clubs or where the society has coded ofrepresent sports Class the diversity 4 grants Touch Rugby $1.4m the purpose of the grant as sport. inof 2019.the sports that Badminton $1.4m benefitted from Class 4 Paralympics $1.5m Rugby the largest Dressage $1.8m grants in 2019. amount approved, with Rowing $2.2m $25.6mRugby Union provided and to Gymnastics $2.2m 441Rugby organisations, League were Sailing/Boating $2.3m Softball $2.4m representingthe largest recipients, 17% of all Racing $2.8m with $24m provided to sport grants. Cycling $3.0m 927 organisations, The ‘Multi Sports’ Swimming $3.2m representing 8% of all Rugby League $4.1m categorisation includes sport grants. Bowls $4.3m contributions to Surf Lifesaving $4.4m SportingThe ‘Multisports Hubs and’ Tennis $4.7m mixedcategorisation Sporting includes Entities Other/Unknown $5.0m wherecontributions multiple to codes Golf $5.6m andSporting organisations Hubs and Basketball $6.4m benefitInfrastructure from a wheresingle Hockey $6.5m Netball $7.1m application.multiple codes and Cricket $10.5m organisations benefit. Multi Sports $14.4m Football/Soccer $14.8m Rugby $25.6m

$0m $5m $10m $15m $20m $25m $30m © 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 14 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 How is funding spread across New Zealand?

There was a variety of Approved Grants by Region Caveats locationalThere was information a variety of The National/Regional category has been used to classify grants which $90m requestedlocational information from affect multiple regions. For example, national sport competitions societies.requested This from report 81m $80m focusessocieties. on This Regional report

informationfocuses on Regionalgiven it is a $70m reliableinformation and givencommonly it is a

understoodreliable and commonly $60m

categorisationunderstood of 51m location.categorisation of $50m location. Grant funding was $40m providedGrant funding to 100% was of provided to 100% of 28m Regions in New $30m 26m Regions in New 23m Zealand. The Region 21m thatZealand. received The Regionthe most $20m

grantswith the was greatest Auckland level 11m 11m 11m 8m (27%),of grants followed was Auckland by $10m 8m 7m 3m 4m National/Regional(28%), followed by 1m (17%)National/Regional and Wellington $0m (10%).(11%) and Wellington (10%).

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 15 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 How does net proceeds percentage spread by region in 2019?

Net proceeds (NP) are Caveats is unavailable from DIA. The graph below will therefore understate region NP percentages. theThe proportionGaming Machine of The calculation of NP percentage by region is sensitive to the GamingProfits (GMP) Machine classification of the grant into the correct benefiting region. There are approximately $51m (17%) of grants allocated to the ‘National’, ‘Regional’ or ‘Area Outside’ that benefit more than one TLA. Our calculation has focused on grants approved which has resulted in Profitspercentage that areis the These funds have been applied to all regions by an average weighting the exclusion of NZRB and Youthtown as they apply and distribute distributedproportion ofwithin gaming a calculation of GMP data supplied by the DIA. This calculation was funds (approximately 9% of total funds available). This is because developed through consultation with GMANZ. specificprofits within region a tospecific that region GMP excludes applied funds for these societies, and the data community.Region that are redistributed back to NP % by Region Across New Zealand, that community. the average NP 60.00% percentageAcross New generated Zealand, 50.00% isthe over average 43% GMPof Gaming

Machinepercentage Profits. is over There 40.00% are40%. a number There are of a importantnumber of caveats important to 30.00% thecaveats calculation to the of 20.00% approvedcalculation NP of GMP percentage which are 10.00% noted on the right. 0.00%

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 16 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 Which organisations receive the most grants?

There were 9 Number of Approved Applications by Organisation Thereorganisations were 5 recipients with 50 Top 20 – number of different approved grants that received 50 grants Organisation Granting grants or more $ orapproved more during in 2019. 2019, of Societies which Synergy Synergy Community Trust 95 Synergy Community Trust $701k 2 Synergy Community Community Trust Supreme Sikh Council Of New Zealand Incorporated $3,515k 6 Trust received the Supreme Sikh Council Of… 86 received the highest Blue Light Ventures Incorporated $764k 22 highest number of Blue Light Ventures… 81 number of grants across New Zealand Chinese Culture And Arts Exchange Centre $724k 3 New Zealand Chinese… 79 2grants different (95) societies. from 2 different societies. Aotea Sport And… 78 Aotea Sport And Recreation Association Incorporated $250k 3 Blue Light Ventures Asian Library Trust 67 Asian Library Trust $287k 2 The next highest was International had 13 North Harbour Rugby… 67 North Harbour Incorporated $678k 8 the Supreme Sikh Eastern Suburbs Association Football Club Incorporated $798k 7 different granting Eastern Suburbs… 55 Council Of New Surf Life Saving Northern Region Incorporated $703k 16 societies raising Surf Life Saving Northern… 51 Zealand Incorporated Autism Eden Trust $190k 1 $506,000. Autism Eden Trust 46 with 86 grants New Culture Art And Education Foundation $249k 2 approved from six New Culture Art And… 45 Bay Of Plenty Rugby… 45 Bay Of Plenty Rugby Union Incorporated $1,866k 12 different societies. Whangarei Boys' High School Old Boys' Association Whangarei Boys' High… 44 Incorporated $296k 5 Thirdly, Blue Light Nz Multicultural Exchange… 41 Nz Multicultural Exchange And Experience Centre $130k 2 Ventures Incorporated Wellington Rugby Football… 41 Wellington Rugby Football Union Incorporated $999k 10 had 81 grants approved A Better Chance… 39 A Better Chance Charitable Trust $823k 2 from 22 different New Zealand Child And Youth Education Trust $462k 1 New Zealand Child And… 38 granting societies. The Women And Grief Home Care Trust $609k 8 The Women And Grief… 38 New Zealand Council Of Victim Support Groups New Zealand Council Of… 37 Incorporated $224k 15 New Zealand Multicultural Foundation $351k 2 New Zealand Multicultural… 34

0 20 40 60 80 100 © 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 17 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 Which organisations are the largest grant recipients?

There were 8 Approved Grants by Organisation organisations with Top 20 – largest grant recipients approved grants OrganisationTop 10 – largest grant recipients Granting # Societies Organisation Granting totalling $1m or more $ Societies in 2019. Supreme Sikh Council Of… $3,515k Supreme Sikh Council Of New Zealand Incorporated 86 6 Supreme Sikh Society Of New Zealand 2410k 6 Canterbury West Coast… $2,853k Canterbury West Coast Air Rescue Trust 15 1 Supreme Sikh Society Bay Of Plenty Rugby Union Incorporated 1002k 8 New Zealand Flying… $2,713k New Zealand Flying Doctor Trust 11 1 Of New Zealand had Incorporated 900k 3 … $2,430k Auckland Rugby Union Incorporated 12 1 the highest amount A Better Chance Charitable Trust 823k 2 The Bruce Pulman Park… The Bruce Pulman Park Trust 21 4 approved of more than $2,274k New Zealand Chinese Culture And Arts Exchange Centre 716k 3 Bay Of Plenty Rugby Union Incorporated 45 12 $3.5m. Bay Of Plenty Rugby… $1,866k Synergy Community Trust 701k 2 Rugby Union Incorporated 25 3 … $1,757k Auckland City FC Incorporated 658k 1 The next highest was Canterbury Rugby Football Union Incorporated 13 3 Canterbury Rugby… $1,210k Bruce Pulman Park Trust 658k 2 Canterbury West Coast OleWellington Academy Rugby Incorporated Football Union Incorporated 586k41 103 Wellington Rugby… $999k Air Rescue Trust with WomanNetball New Care Zealand Trust Incorporated 568k12 85 Netball New Zealand… $976k $2.9m of approved Northland Rugby Union Incorporated 16 4 grants. Northland Rugby Union… $910k Counties Manukau… $906k Counties Manukau Rugby Football Union (Incorporated) 30 10 Thirdly, the New Waitakere City Stadium… $900k Waitakere City Stadium Trust 4 2 Zealand Flying Doctor The Order Of St John… $849k The Order Of St John Northern Region Trust Board 13 11 Trust had approved A Better Chance Charitable Trust 39 2 A Better Chance… $823k grants in 2019 totalling Netball Waikato Bay Of Plenty Zone Incorporated 11 4 Netball Waikato Bay Of… $818k approximately $2.7m. Touch New Zealand Incorporated 25 11 Touch New Zealand… $800k

Eastern Suburbs… $798k Eastern Suburbs Association Football Club Incorporated 55 7

The Order Of St John… $795k The Order Of St John Central Region Trust Board 9 8

Northern Districts Cricket… $775k Northern Districts Cricket Association Incorporated 13 6

$0k $1000k $2000k $3000k $4000k © 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 18 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Key Results for 2019 How large are most grants?

The majority of Number of Approved Applications by Approval Banding individualThe majority grants of are 16k betweenindividual $0grants-$100k, are representingbetween $0-$100,000, 82% of representing 83% of 54.11% the total amount of 14k approvedthe total amount grants. of approved grants. $241m 82% Of these grants approved grants under $100k of total approved amount approved,As in 2018, 54% more were than 12k forhalf grants of the lessgrants than or approved in 2019 were equal to $5k which 10k illustratesfor amounts that less the than majority$5000. of grants in Class Four are for 8k grassroots community $138m 47% approved grants under $20k of total approved amount benefits. This was a 23.25% similar finding in 2018, 6k more than half of grants were for 4k amounts less than $5k. 13.02%

2k 4.22% 1.85% 1.52% 0.61% 0.45% 0.38% 0.24% 0.35% 0k <=$5k <=$10k <=$20k <=$30k <=$40k <=$50k <=$60k <=$70k <=$80k <=$90k <=$100k

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 19 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. 3 Three Year Trends

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 20 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. How has grant distribution by societies varied between 2017 and 2019

Generally the Top 5 Approved Grants by Society between 2017 - 2019 2017 2018 2019 grant approving $180.0m $157.3m societies account for $160.0m $143.8m approximately 50% of $136.8m $139.5m $140.0m $130.8m $131.6m the total amount $120.0m granted. $100.0m

4 of the Top 5 grant $80.0m distributing societies $60.0m have shown a year-on- $40.0m year increase in the $20.0m amount approved. $0.0m Overall, there has been Others Top 5 an increase in the Approved Grants for Top 5 Societies between 2017 - 2019

amount approved 50.0m 45.9m 46.7m 43.7m across both the Top 5 45.0m 39.8m and the other grant 40.0m 36.9m 36.4m 35.4m approving societies. 35.0m 32.5m 33.4m 30.0m

25.0m 19.3m 20.0m 15.1m 14.4m 13.6m 14.8m 15.0m 12.8m

10.0m

5.0m

0.0m One Foundation Ltd Grassroots Trust Ltd Pub Charity Ltd The Lion Foundation New Zealand Community Trust

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 21 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. How has grant distribution by category varied between 2017 and 2019

There has been a year- Approved Grants by Main Category between 2017 - 2019 $180m on-year increase in 2017 2018 2019 approved grants for $160m Sport, Community and $153m $150m Research and $146m Education. $140m Grants distributions for Arts and Culture $120m decreased in 2018, whereas there was a

slight increase in grant $100m distributions for Health/Welfare/Rescue $80m Services in 2018. The “Other” category $58m has decreased as $60m $54m categorisation has $47m

improved. $40m $33m $30m $27m $27m $25m $24m $21m $22m $20m $15m $9m

$0m $0m $0m Sport Community Research and Health / Welfare / Arts and Other Education Rescue Services Culture Community also contains grants approved for bettering the Environment and Animals

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 22 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. How has grant distribution by sport varied between 2017 and 2019

There has been a Approved Grants by Sport between 2017 - 2019 decrease in other/unknown and 30m 2017 2018 2019 multi sports categories between 2017 and 2019 which can be 25m attributed to improved coding of approved

grants to their 20m respective sports. Over the same time period, all other 15m featured sport categories experienced

an increase in grant 10m funding except football/soccer and netball. 5m Surf lifesaving has experienced the largest

proportional increase 0m Football/So Other/Unkn Surf Rugby Rugby Multi Sports Cricket Netball Hockey Basketball Golf Tennis (50%) from $2.9m in ccer own Lifesaving League 2017 to $4.4m in 2019. 2017 24.3m 15.5m 16.6m 9.5m 7.5m 5.3m 6.1m 4.6m 8.9m 4.2m 2.9m 3.8m 2018 23.3m 14.8m 18.7m 9.5m 7.4m 5.4m 6.4m 4.7m 4.6m 4.0m 2.5m 3.9m 2019 25.6m 14.8m 14.4m 10.5m 7.1m 6.5m 6.4m 5.6m 5.0m 4.7m 4.4m 4.1m

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 23 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. How has grant distribution by region varied between 2017 and 2019

National/Regional has Approved Grants by Region between 2017 - 2019 had the largest $90m 2017 2018 2019 increase in amount approved between $80m 2017 and 2019 (315%).

This could be a $70m reflection of societies

recognising the $60m extended impact of

grants in the $50m community.

There is a decreasing $40m trend in amount

approved for $30m Wellington, Canterbury

and Auckland regions. $20m Most other regions have show an $10m increasing trend in amount approved. $0m Manawatu Nelson/M Bay of Hawke's West Auckland Canterbur Gisborne - National/ arlboroug Northland Otago Southland Taranaki Waikato Wellingto Plenty Bay Coast Region y Region Region Wanganui Regional h/Tasman Region Region Region Region Region n Region Region Region Region Region Region 2017 $83m $21m $34m $3m $11m $11m $16m $7m $9m $6m $9m $5m $19m $34m $2m 2018 $76m $22m $31m $3m $11m $12m $34m $7m $10m $7m $7m $6m $20m $28m $2m 2019 $81m $23m $26m $3m $11m $11m $51m $8m $11m $8m $7m $4m $21m $28m $1m

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 24 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. How has net proceeds percentage varied by region between 2018 and 2019?

InIn Looking at net % of NP by Region between 2018 - 2019 proceeds (NP) by 60.00% 2018 2019 Target GMP % region, 9 out of the 14 regions have met the

NP percentage target 50.00% of 40%. There has been a decrease in the GMP 40.00% percentage in a few regions. Most notably; Canterbury and 30.00% Taranaki. The Otago region had the highest increase in 20.00% percentage GMP between 2018 and 2019. 10.00% It is important to note that the obligation to 0.00% return a minimum of Manawa Nelson/ Aucklan Canterb Wellingt Bay of tu- Northlan Marlbor Southla Gisborn West Hawkes Waikato Otago Taranaki 40% NP is at a d ury on Plenty Wangan d ough/Ta nd e Coast Bay Region Region Region corporate Society level Region Region Region Region ui Region sman Region Region Region Region Region Region and not on the 2018 44.40% 43.66% 41.57% 41.28% 39.98% 38.67% 41.74% 35.78% 37.41% 49.74% 38.35% 47.59% 39.06% 45.50% geographical region. 2019 47.66% 38.40% 42.63% 42.50% 40.57% 34.93% 43.57% 38.04% 41.83% 51.93% 28.93% 46.83% 34.18% 44.75% Target GMP % 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40%

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated Document Classification: KPMG Confidential 25 with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in New Zealand. Contact us

Wouter de Vos James Nash Director Data Scientist Lighthouse Lighthouse Wellington Wellington T: +64 4 816 4530 T: +64 4 816 4719 E: [email protected] E: [email protected]

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