Philanthropy News THE MAGAZINE OF PHILANTHROPY NEW ZEALAND ISSUE 74, AUGUST 2018

The road to impact Stories and insights on funder strategy

Centre for Michael and Suzanne Todd Social Impact Borrin Foundation Foundation The journey to Making a difference Taking a new effective philanthropy through law direction

Brand Guidelines – March 2015 Contents 3 From News & Events the Chief 5 Executive A generous strategy Philanthropist Barbara Blake’s Kia ora koutou approach to giving While I’ve always liked Southwest Airline’s founder Herb Kelleher’s very pragmatic reminder: “We’ve got a strategic plan, it’s called doing things”, there’s no doubt that exhortations 6 to ‘be more strategic’ are as relevant to philanthropy and Legally philanthropic grantmaking as they are to any enterprise. If we don’t How the Michael and Suzanne know where we are going, how will we get there? Borrin Foundation are making a difference through law In this issue we explore strategy and offer some examples of the processes grantmaking organisations have used to develop their plans as well as the resulting strategies. I hope you enjoy reading about how philanthropist Barbara 8 Blake approaches her giving, Hutt City Council’s new strategy, A new way of working the Michael and Suzanne Borrin Foundation’s thinking on what How the Todd Foundation have a newly launched funder could achieve, Todd Foundation’s changed their funding strategy new funding model and the way the MediaWorks Foundation strategy focusses on using the power of their unique talent and expertise to support community. The Centre for Social Impact—who have helped several PNZ members with 10 strategy—also offer their reflections on what grantmakers Preparing for impact need to consider when approaching strategic planning. The Centre for Social Impact map the journey to effective philanthropy CSI will be bringing that experience to their grantmaking governance day in our upcoming Governance and Investment training for sector board members and trustees (16 and 17 October). The unique challenges of developing strategy to 13 guide grantmaking make philanthropic governance quite Going where the need is greatest different from corporate, government or even other not-for- Hutt City Council’s redevelopment of profit governance. That’s why we continue to work with CSI their community funding strategy and other organisations like fi360, AMP Capital and Russell Investments to ensure that the professional development we offer trustees is focussed on the philanthropic world. Questions about our power, relationships, scope, and impact can only 14 be answered in the context of giving money to others. Media works for worthy causes Q&A with Sarah Cotter about I hope the exploration of strategy you find in the developing the MediaWorks Foundation magazine helps your thinking as we continue to improve grantmaking strategy our work and contribution to our communities.

The articles in Philanthropy News do not necessarily reflect the views of Philanthropy New Zealand. Magazine design and layout by Gusto. Tony Paine News & Events Events Sector News

Let’s take Reporting a fresh on collaboration approach In 2014 at a Philanthropy New Zealand Youth Funders’ Network meeting, funders were discussing opportunities for collaboration around foster care. It resulted in an incredible Governance & Investment training collaboration between Foundation North, The Tindall 16–17 OCTOBER AUCKLAND Foundation, Todd Foundation, and Vodafone NZ Foundation and led to the establishment of VOYCE—Whakarongo Mai. At the request of our members, Philanthropy New Zealand, in partnership with the Centre for Social In June, they shared the story, read it here bit.ly/VoyceReport Impact are offering a new approach to governance and investment training for trustees on philanthropic and grantmaking boards that invest and distribute funds.

This training has been developed with a focus on the unique challenges of the sector and will support you in your mission to make a difference through grantmaking and investing.

Whether you’re experienced or new to the sector, the new programme ensures fresh content that will challenge and extend your thinking about what it means to make Celebrating three decades a meaningful contribution to the governance sector. of making a difference For more info and to register go to philanthropy.org.nz/events Happy Birthday to the TSB Community Trust, which celebrated 30 years of funding this May.

In 1990, the Trust’s first year of grantmaking, $161,000 was granted and today the Trust has contributed over $127 million to Taranaki not-for-profit groups and individuals. SAVE the Connect, DATE collaborate, research and read

To help grow knowledge, build connections and Philanthropy encourage wider conversations among our sector, we have developed the digital PNZ Member Hub. Summit 2019: This is a space for funding members to engage online, ask questions, share information and explore a library The Future of Trust of local and international reading and resources.

15–17 MAY, 2019 TE PAPA, WELLINGTON We have introduced the Hub to our Family Philanthropy Network and are excited to now be extending the New Zealand’s largest gathering of leaders in invitation to all our Networks. This is a free resource the philanthropic and grantmaking sector. for our grantmaking and individual members.

Go to PNZmemberhub.org.nz to sign up!

Please see philanthropy.org.nz/events If you’ve any questions, please contact for more information and registration Olivia Lacey at [email protected]

3 Philanthropy News Issue #74 News & Events Welcome to Strategy our new members whakataukī and quotes

Auckland Airport Community Trust Barnardos Christchurch Foundation Palmerston North City Council Te Whānau o Waipareira Waikato Tainui Ki te kāhore he whakakitenga ka ngaro te iwi Sector Without foresight or vision appointments the people will be lost

Kate Thomas is moving from Spark New Zealand Kīngi Tāwhiao Pōtatau Te Wherowhero to take the lead at Spark Foundation.

Kelvyn Eglinton was welcomed as the new CEO of Momentum Waikato in February. He was previously with However beautiful the Hamilton City Council as General Manager City Growth. the strategy, Lori Luke, who has extensive experience in the commercial sector and working with charitable organisations, has you should occasionally recently joined the Acorn Foundation as General Manager. look at the results

Wei Siew Leong made the move from Kensington Winston Churchill Swan Wellington to join Nelson Bays Community Foundation in February as Executive Officer. Knowing what must be done Government does away with fear

sector meetings Rosa Parks

Philanthropy New Zealand continues to convene quarterly Government meetings. This is where invited sector leaders meet Government officials. These meetings What’s the use of are useful and constructive, resulting in invitations to our sector to engage with various Government running if you are not departments and to gain a better understanding of on the right road? each other’s role. If you are a funder and would like to

know more about the opportunities that arise from these German proverb meetings, please contact [email protected]

Strategy 101 is about choices: You can’t be all things to all people

Michael Porter

National Advisory Board launch. Tony Paine with Hon Peeni Henare, Minister Community and Voluntary Sector

Philanthropy News Issue #74 4 A generous strategy

Top: Christina Barton, Director Adam Art Gallery and Barbara Blake

Left: Water confidence skills with Te Ara Moana Trust

Individual giving makes Barbara has aligned these focus areas “I look to where I believe I can make a a difference for many with the ‘give where you live’ mantra to noticeable difference, make impact,” shape her funding direction. says Barbara. “I’m looking to smaller Wellington-based philanthropist organisations that are doing stuff well, Barbara Blake grew up in a family that Examples of these include the Adam but just need some backing in terms believed giving enriches your life, it Art Gallery internship, which launched of resources or capability,” she says. doesn’t make you poorer. She recalls this year. It provides capacity building for “They’ve got themselves together and her father seeking opportunities where the contemporary art space and helps they know what their purpose is, but with he could make a positive contribution launch a young career in the field. some extra funding they could do better.” to their community, such as the time Others include the local DINE Academy he converted the abandoned school which provides hands-on hospitality Having a connection with the in their hometown into the much- training for youth and the Te Ara Moana organisations is also key. It’s this loved Levin Adventure Park—an Trust which provides water safety and connection that enables Barbara to gauge act of philanthropy Barbara says outdoor activities for youth in Porirua. whether the funding was successful. inspired and shaped her giving. When it comes to giving, Barbara “I’m not looking for praise, I don’t expect As an individual donor, Barbara isn’t has two funding strands. One is an funding recipients to report back, beholden to a committee nor has she endowment fund with the Nikau and I don’t want to see their financials, been required to formalise a funding Foundation, which she says provides but having the organisation invite me strategy, however that doesn’t mean her great structure and support. to connect with them and witness that giving isn’t strategic or without structure. the funds are being used maintains my “They take applications from confidence in what they are doing, and Barbara says her funding’s key objective Wellington-based not-for-profits and in my decision making.” is a simple one, to ‘make a difference’— create a shortlist based on my three something she says you don’t have to focus areas. We go over these together Along with seeing that the funds have ‘write big cheques’ to achieve, but she and make a decision. I really trust their made a positive difference, Barbara is says you do need to have a focus. process.” The other funding strand also quick to point out another outcome, is personal giving. Barbara says that invaluable to her, is that she has gained “There are so many great causes out sometimes the funding opportunities flow much satisfaction through giving. there, I felt it was really important to on from Nikau Foundation granting or “I’ve got much more back than I’ve given identify focus areas to guide my decision come about through her own research, out. I’ve given out cold cash, but I’ve got making,” says Barbara. These areas are both online and ‘getting out there’ in back such a lot of different experiences, health and well-being of youth, visual arts the community. She doesn’t have a meeting different people, being involved and the environment, which she says specific timeframe or amount, nor seeks in different things that I didn’t even know were selected based on her experience, applications. What she does look for are about. So it’s been hugely rewarding for interests and understanding of where opportunities where she knows the funds my life in general.” there is a clear need for support. will make a difference.

5 Philanthropy News Issue #74 Legally philanthropic

Making a difference through law

What is ‘strategy’ anyway? Strategy has become one of the most overused words in professional life. Everyone wants to be seen as ‘strategic’, and every organisation seems to have a ‘strategy’ or ‘strategic plan’ these days. At the Michael and Suzanne Borrin Foundation, we do not have a document titled ‘Strategy’. This article shares the work that led to the launch of the Borrin Foundation. It is an attempt to share some ‘working assumptions’ about our approach and hopefully spark conversation and feedback. Grants and Scholarships Committee and Philanthropic Advisor. (from left) Michelle Wanwimolruk, Sir Terence Arnold, Richard Caughley, Mark Hickford, David Goddard, Kathryn Beck. Start with the ‘why’

‘We believe law is essential to a flourishing Our vision also looks forward. Ian wanted And how do we go about doing society—one that is just, inclusive, to give a gift to all of New Zealand— this? We are clearly the ‘new tolerant and free. Our vision is of an for our future. This gift reflects Ian’s kids on the philanthropic block’ Aotearoa New Zealand where everyone belief that the law should be a force and have had a lot to learn. understands the role and value of the for good. As a lawyer, a Family Court law, and everyone enjoys the protection judge, and the head of the Police We set about learning from thought and opportunity that it provides.’ Complaints Authority, he cared leaders and studying leading practices deeply about people and how law in philanthropy in both New Zealand That is our ‘vision’ statement. It was affected real people’s lives. The Borrin and overseas. A big thank you to all the result of insightful and thoughtful Foundation exists to make positive the people who generously shared their discussion by the Foundation’s Grants change in New Zealand, specifically time, advice, and resources with us. A and Scholarships Committee—who through the law and the legal system. shout out to colleagues at J R McKenzie are leading members of New Zealand’s Trust, Next Foundation, The Tindall legal profession. The vision looks Our vision lies at the heart of our Foundation, Todd Foundation, Wayne back as well as forward, and speaks grantmaking. The spirit and intent Francis Charitable Trust, Vodafone to why the Foundation exists. behind Ian’s generous act serves NZ Foundation and Foundation North, as a touchstone for our work. Wise among numerous others (word limit It looks back to the Borrin Foundation’s advice received was to ‘start with the means I can’t mention you all!). roots and ‘origin story’. This story begins why’—know your story and roots as with Michael and Suzanne Borrin, a they contain the ‘spirit’ of your work. We have also been influenced by the young Jewish, Polish couple who came approach of overseas philanthropic to New Zealand in the 1930s. The Study and learn from others foundations, including: MacArthur tragedy of losing their Jewish family – the ‘how’ Foundation, Open Society Foundations, and friends in the death camps and Laura and John Arnold Foundation, persecution of Jews in World War II The Borrin Foundation is here to Mulago Foundation and the Edge left Michael and Suzanne with deep make a difference to the lives of Funders Alliance. While they fund in gratitude to New Zealand for providing New Zealanders, through the law. different areas and on a different scale, them with safe refuge. It also left Ian, We do this by supporting legal all these grantmakers are ambitious Michael and Suzanne’s only son, with research, education and scholarship in their vision for social change. a sense of the importance of the through effective philanthropy. But what rule of law for a flourishing society. does ‘effective philanthropy’ mean?

Philanthropy News Issue #74 6 There was also a lot of reading and We found great projects, great It turns out that our ‘make it up as research: countless hours on the people, and great ideas that needed we go along’ strategy is actually a internet, reading the myriad of research financial resources to make great strategy known as ‘reflective practice’. reports, working papers, Stanford Social impact. This happened iteratively and Duncan Green, the author of How Innovation Review articles, resources sometimes somewhat serendipitously. Change Happens, says that when you from GEO (Grantmakers for Effective When the Grants and Scholarships work in complex systems you need Organizations), the Foundation Centre, Committee indicated an interest in to learn as you go through trial and Ford Foundation, Hewlett Foundation certain projects or areas, I worked error. Rather than thinking of strategy etc. (Big thanks also to PNZ for pointing collaboratively with the potential as a single plan built on predictions out great resources, people, or providing grantees on proposals for funding. of the future, we should think of access to subscription-based articles! strategy as a portfolio of experiments If you’re not a member of PNZ, do join!) We believe that a grantmaker is only that compete and evolve over time. I highly recommend two books: Do More as good as its grantees. We also use Than Give and How Change Happens. the word ‘do-ers’ instead of ‘grantees’. The Borrin Foundation is in its infancy. There is a wealth of literature and We may be the grantor, but they are Being new, we have fresh eyes and knowledge about modern philanthropy the do-ers. And a dynamic relationship are willing to experiment and learn as and social change—including ‘systems results when we both understand we go. Some might say that things grantmaking’, ‘participatory philanthropy’, the value each of us bring to our joint will soon settle down into ‘business catalytic philanthropy’, strategic endeavour. The do-ers are the people as usual’. I certainly hope not. Being philanthropy, venture philanthropy who contribute to our shared vision. strategic entails being flexible and alert and ecosystem grantmaking. He aha te mea nui o te ao. He tāngata, to changing contexts and opportunities. he tāngata, he tāngata! What is the Anyone or any organisation that seeks However, intellectual learning gives us most important thing in the world? It to be strategic needs to continuously only intellectual knowledge. Having an is people, it is people, it is people! evolve and push boundaries, and intellectual knowledge of philanthropy is go to the new frontiers. Not just akin to memorising and studying books ‘Reflective practice’ in the early stages, but always. on parenting. Even if we’ve studied – a fancy term for making parenting deeply, we won’t know how to it up as you go along! raise a child until we’ve done it ourselves. Article by The Borrin Foundation was launched in Michelle Wanwimolruk, The importance of people February 2018 at the Supreme Court. Philanthropic Advisor, At the launch we announced the two Michael and Suzanne and getting out there in Borrin Foundation the ‘field’ areas that our grantmaking will focus on: the criminal justice system, and family borrinfoundation.nz Another essential part of the process law. These are areas where the law is of setting up the Foundation was broad not serving New Zealanders well. We will stakeholder engagement. We talked approach our funding of these areas with with many people with an interest in, or both a proactive and reactive approach expertise about, how New Zealand’s to our grantmaking. At the event we also legal system affects the lives of real announced $1.7 million worth of grants people. Our stakeholder engagement across five inaugural grant projects work encompassed NGOs, academics, (see our website for more information). public sector agencies, members/former members of the judiciary, lawyers, and This event was also an example of the people in communities. ‘Key experts’ ‘do more than give’ approach. Our launch were also invited to meet with the was attended by the Chief Justice, the Grants and Scholarships Committee. Governor-General, various Government Memorably, an ‘educational roundtable’ Ministers, Supreme Court Justices, and about the criminal justice system many other ‘distinguished guests’. We and Māori included guests Moana brought people together and shone light Jackson, Kim Workman, JustSpeak, and attention on an important issue in The Borrin Foundation’s trustee and people with lived experience of New Zealand that goes to the heart of is the Nikau Foundation—a community prison and the criminal justice system. our values for social harmony, equality foundation inspiring generosity. The and justice. Among Western developed Nikau Foundation is responsible for the Through the stakeholder engagement nations, New Zealand’s incarceration administration of the Borrin Foundation, and reaching out to wider networks, rate is second only to the United including oversight of its investments and we found ourselves doing ‘proactive States, and Māori are disproportionately ensuring its long term financial security. grantmaking’ (possibly before we represented in our prisons. even knew what the term meant!).

7 Philanthropy News Issue #74 A new way TODD FOUNDATION STAFF

of working Valerie Williams Christina Howard Seumas Fantham Susie Schwartz

Coming out of the review, the Foundation “We’re able to look up and out at what’s Todd Foundation has a clear purpose—to resource happening here and overseas. We’re changes funding communities to create sustainable, also really aware that we have to drive strategy long-term change for children, young our own activity, step up our outreach people and families. It will do this and keep doing the work required to After 45 years of running open through three main funding streams: get funding out into the community.” grant application rounds the 1. the largest funding What partly drove the change was Todd Foundation is now pro-actively Change: stream which supports co-ordinated, a statistical analysis which found seeking funding partners to create community-led action for change that over the previous decade the sustainable, long-term social change. in selected focus areas. number of applications the Foundation When the Todd Foundation staff and received had increased tenfold—but 2. provides board got together for their regular Collaboration: the chances of success had dropped funding for collaborative three-yearly strategic review in from over 50% to under 15%. alliances with other funders. 2016, they had little idea that The figures struck a chord with the they were about to embark on a 3. Capability: provides funding for key board. They were concerned about process that would fundamentally organisations to provide capability the amount of time organisations change the way they worked. support to the community sector. were spending on unsuccessful applications—and how much time Executive Director Christina Howard The Foundation started working staff were spending assessing them. says the board had already agreed the under the new model in January. review should focus on the way the But to help with the transition they “They were really aware that with so many Foundation funded. “We were happy deliberately pre-committed a large applications coming in it had become with our vision and focus on children and proportion of their 2018 funds. very transactional. They could see we young people. So I expected the review had a highly skilled team with great would identify some improvements to “We wanted to give ourselves time relationships and lots of knowledge. make our existing funding programmes to bed in the new strategy, which But they spent most of their time work better for applicants.” requires much more upfront work to processing forms. Was that really the understand our focus areas and build best expression of how the Foundation Instead they ended up developing a relationships. We also needed to honour could be supporting communities?” completely new funding strategy which the commitments we had made to does away with competitive application organisations under our old strategy.” The board could also see that rounds in favour of pro-actively seeking running open application rounds out communities, organisations A new way of working encouraged competition rather than and collectives to partner with. It’s been a leap into the unknown encouraging organisations to work Christina says the key to the new as staff and board adjust to the fact collaboratively or strategically together. strategy was clarifying the Foundation’s that their work is no longer driven “We knew that many organisations purpose, then figuring out how to use its by funding-round closing dates. in the community sector were also resources to best achieve that purpose. While the lack of this familiar structure frustrated by competitive funding “We thought really hard about our unique can be a bit daunting, staff are enjoying models and were interested in strengths as a family philanthropic, based having more time to engage with finding new ways of doing things.” in Wellington but funding throughout communities, develop deeper knowledge New Zealand. We also wanted to of issues and provide support to funding help make a difference at a systemic partners. The board also has more time level, to help deal with the causes of to engage in strategic discussions. problems rather than the symptoms.”

Philanthropy News Issue #74 8 “The new strategy was clarifying the Foundation’s purpose, then figuring out how to use its resources to best achieve that purpose.” Christina Howard How it works Figure out what Pilot initiative you’re looking for provides lessons The Todd Foundation pro-actively For Christina, an SSIR article by US While the strategy is new, Christina says seeks out communities, philanthropist Kevin Starr, director of the that in hindsight they had started working groups and collectives to Mulago Foundation, was fundamental in towards it in 2014, when they began their partner with under three main shaping the change. The Lazy Funders youth employment initiative. Programme funding streams—Change, Guide to High-yield Philanthropy leader Seumas Fantham spent about Collaboration and Capability. suggested six ways to do ‘more with a year researching youth employment less’. Number one was ‘Figure out issues and solutions in New Zealand The largest of these is the Change what you’re looking for—then act’. and overseas. He travelled the country funding stream. It supports to identify regions with both high youth co-ordinated, community-led Starr also advised against taking unemployment and an appetite and action for change in selected proposals—‘Proposals are a hassle ability to work in different ways. focus areas. Funding for to write, an ordeal to read, and still these focus areas is allocated don’t give us what we need.’—and “It was basically a pilot for the using a five-step process: advocated for giving unrestricted funding. new strategy,” says Christina. It was a lightbulb moment for Christina, Ultimately the Foundation ended 1 FOCUS who sent the article to the board up supporting youth employment before their 2016 strategy session. strategies and initiatives in Eastern Bay Determine the change issue. And it eventually saw her visiting Kevin of Plenty, Tairāwhiti, and Lower Hutt. Starr at the Mulago Foundation in 2 EXPLORE San Francisco, as well as two other Youth employment is now officially Carry out deep research into the Californian foundations, the Peery the first change project being funded issue using data and conversations Foundation and the Whitman Institute. under the new strategy and work has started on a second change project, with thought leaders and local “I was really struck by their focus focussing on fairer futures for children leaders. Identify community on sustainable change, long-term and whānau. It’s being developed readiness, energy and opportunity. funding and trust-based relationships. through a five-step process (see panel) They all looked for ways they could and the first significant funding will 3 ENGAGE support their funding partners be allocated next year. Programme beyond just giving money.” leader Susie Schwartz is currently in Work with communities to the exploration stage of the process. understand their key issues and To help develop the new strategy the desired outcomes. Develop a Foundation also ran two one-day hui with Christina says they’re still finding long-term strategy and funding funding recipients to get some blue-sky their way with the new strategy, model for transformative change. thinking about how to make the change. and while they’re relishing the challenge she realises it’s not the 4 PARTNER “Most people at the hui could see right approach for everyone. why we wanted to make the change, Provide long-term, flexible and they challenged us to think “For some funders open application funding to support change. about our ‘higher purpose’ and how rounds will still make sense, and we could do funding differently.” there’s room for a whole spectrum 5 of funding. But as a sector I think REVIEW Not surprisingly, some organisations were we need to be creative and find Assess whether to continue concerned that moving away from open more effective ways to support our funding, celebrate achievements applications would close off a potential communities. I’m looking forward to and acknowledge and share source of funding. However, as Christina working with other funders to do that, what’s been learned. points out, the Foundation will continue and sharing the learnings as we go.” to provide the same amount of funding, it will just be doing it in a different way.

9 Philanthropy News Issue #74 Preparing for impact

The Centre for Social Impact helps grantmakers and funders invest for impact, and enables their community partners to Kat Dawnier, turn that investment into inspiring and CSI Associate sustainable change.

The journey to effective In this article, we map a typical This process helps organisations to make philanthropy development journey for a philanthropic the invisible, visible—to be clearer about organisation that wants to explore the type of impact an organisation might The Centre was established as a social the role(s) that it could play and the want to achieve, the scope and focus business in 2014 by Foundation North to investment approaches that it can take to of their potential role in achieving this support the development and impact of best serve its communities and deliver on impact, and the values that should steer its own high-engagement philanthropy, its vision for impact. the way they work in fulfilling this role. alongside supporting the work of other foundations, individuals and organisations Preparing for the journey Our experience shows that trustee investing for social impact. Four years engagement with this process is on, the Centre is delivering on its mission, Most philanthropic organisations critical. Where board and staff are working with philanthropic organisations in New Zealand exist to benefit clear and aligned in understanding across New Zealand and Australia. communities and achieve some type of the organisation’s identity, attributes intergenerational impact. However, no and overall direction, there is a strong Having a ‘helicopter view’ of the two philanthropic organisations are the basis for effective strategy design and philanthropic sector allows us to same—and so how, where and why funding practice—and strengthened understand the common challenges that they achieve impact must be shaped organisational culture. trusts and foundations often encounter by the organisation’s unique vision, whilst trying to serve their communities. attributes and positioning. We encourage Key questions that support readiness It also enables us to capture learning and organisations to engage in a process for impact philanthropy: good practice, which we use to co-design of thinking deeply about the values, •• What defines our identity strategies, tools and approaches that can principles and attributes that underpin or style of giving? support philanthropic organisations to their organisation. We think about this as more effectively articulate and deliver on unpacking or mapping organisational DNA. •• What organisational values do their intentions for impact. we have, and how should these influence the way we work?

•• Are there aspects of our organisation “Something we did, probably about three years ago, was develop that we want to adapt? What is our appetite for change? organisational values. Some core values around how we will be, how we will behave. That has been really important, because there have been Setting a course different times where the Trust could have made a grant or could have acted in a certain way but you can come back and say ‘If we do that, what does that mean to our core values? How are we adhering to our core values if we do that?’ It grounds you. So I think core values are really important, and we worked to develop those with the trustees.”

Maria Ramsay Chief Executive, TSB Community Trust—a Centre for Social Impact partner organisation

Philanthropy News Issue #74 10 Setting a course

For philanthropic organisations that “Over the years, we have developed a very strong practice centred have started thinking about their around high engagement and the principle that we don’t know best; role and their aspirations for impact, the people working with young people know best, and the young designing a fit-for-purpose strategy is people themselves. So we said to ourselves, if we were reframing our a key next step. While there is no set definition of what a ‘fit-for-purpose’ Foundation’s strategy, that principle means we should go out and strategy might look like, our experience talk to those constituents. So that is what we did.”

highlights these three key ingredients Antony Welton for effective strategy design: Chair, Vodafone NZ Foundation—a Centre for Social Impact partner organisation

1 2 3

Strategy should Strategy should be relevant Strategy should be relevant to be evidence-informed. and responsive to an organisation’s an organisation’s unique values, stakeholder communities. attributes and positioning. This means understanding the issue or community that an organisation This means designing strategies that This means designing strategies is seeking to impact well enough to aren’t just needed by the community, and funding approaches that are design strategy that is more likely to but are wanted by the community and appropriate to the trust or foundation’s deliver positive results. reflect their aspirations well. context i.e. strategies that consider values, and have potential to make the The strategy evidence base may Philanthropic organisations can use most of strengths, assets, resources, include, for example, an analysis of various tools to help them better and relationships. population data that pinpoints where understand their communities. These the greatest community needs exist, include co-designed community The Centre has supported or a review of national/international engagement hui, hosting local or organisations to finalise strategies and publications to provide insights into the regional forums, and targeted interviews funding approaches that ‘make sense’ characteristics of good practice. with key community stakeholders. of evidence, of community feedback This activity not only strengthens and of their unique opportunity to Key questions that support the an organisation’s mandate, but can achieve impact. development of evidence-informed help it to identify and strengthen key strategy: relationships that can support the Key questions that support the development of vision and values- • organisation in achieving its vision. • What can we find out about aligned funding strategy: the needs of the communities Key questions that support the • that we are trying to serve? development of community- • Of the funding approaches that are known to be effective in relation to • responsive funding strategy: • Does evidence show us that there the issue or community that we are are particular issues within our •• How can we ensure that we trying to positively impact, which are community that we should prioritise? understand and better meet we well-positioned to adopt or test? the aspirations of Māori and •• If there is a specific issue • Pasifika communities? • What does our ecosystem look that emerges, how have other like—i.e. who else is engaged in organisations addressed this issue •• What are the key challenges that addressing this issue or working effectively? If so, what were the our communities are experiencing? with this community? What might characteristics of their approach our unique role be alongside this? that made it effective – and how •• What are the potential solutions might we learn from this? that our communities would like •• Which funding strategies or to see developed or invested in? approaches are most aligned with our organisational values and strengths? •• What role do communities see our organisation playing in addressing •• How can we make the best use these challenges or enabling these of our assets and resources? solutions? What type of funding approaches might be needed?

11 Philanthropy News Issue #74 Learning to navigate In addition, the Centre has been working •• What impacts were achieved as a with philanthropic organisations to design result of our funding approach and Designing effective strategy is just fit-for-purpose monitoring, evaluation other non-financial supports? the start of a trust’s or foundation’s and learning strategies that enable journey towards impact philanthropy. funders to understand the specific •• What are we learning about the Across the sector, new funding impacts that are leveraged through the issues that we are trying to address approaches for investing in impact are financial and non-financial supports or communities we are trying to emerging—from venture philanthropy that they have provided. The insights support? What does this mean models to innovation funding and obtained through evaluation and learning for our ongoing strategy? impact investing. This is creating activities help philanthropic organisations growing momentum towards multi-year not only to demonstrate impact, but The journey continues and targeted grants, complementing the to explore the wider implications for established grantmaking approaches. In a world in which change is constant ongoing strategy and preparing for the and rapid, the challenge for philanthropic next stages of the impact journey. Many of the funders that we have been funders is to see the philanthropic working with over the past four years journey as one of constant learning Key questions that provide insight have adopted portfolio models of funding, and adaptation. The insights captured to support ongoing strategy design: maintaining a traditional grantmaking along the way both enable incremental programme while they explore more •• How well-aligned was our grantmaking improvements in funding approaches, flexible funding approaches that enable to the intentions of our strategy? and programme design and delivery, them to work alongside communities and provide fuel for innovative thinking to address complex problems. •• Are we reaching the communities about how social investment can create we intended to engage with? inspiring and sustainable social change. Making this flexibility work in practice requires good policies, •• What was the experience of our high engagement or innovation- tools and assessment processes Article by that enable staff and trustees to: type funding recipients? Kat Dawnier, CSI Associate •• Recognise community organisations and funding opportunities with high alignment with their strategy, and with high potential for impact

•• Determine the right kind of financial and non-financial supports to accelerate those opportunities. Strategic Venture Philanthropy Philanthropy The grantmaking dial was developed by the Centre to help funders consider the difference in complexity of various types of Transactional Impact funding, as well as the Philanthropy Investing different time horizons required and potential levels of risk involved.

Simple Complex Short-Term Certainty Long-Term Possibility

The journey to effective Change philanthropy is a Management continuing process of strategy setting, new practice development and Strategy Review Practice evaluation and reflection as learning occurs. This learning informs ongoing adaptation and innovation to deliver Learning increased impact.

Philanthropy News Issue #74 12 Going where the need is greatest

The redevelopment of When they were given the ‘green light’ 1. Kākano Fund a community funding the strategy work got underway. The – seed funding for new ideas Community Services team gathered the strategy that supports evidence and support they needed to 2. Mahia Atu Community Fund Council vision and targets shape the strategy direction engaging in – for up and running projects research, community consultation and where the need is greatest 3. Mahia Atu Partnership Fund seeking expert guidance. has been a big focus for – for well-established and Hutt City Council. Through the community consultation and impactful community initiatives research, they identified three key areas The applications are processed Philanthropy News spoke to Melanie where the need is greatest: Laban, Divisional Manager Community through Council and the information Projects and Relationships about 1. All tamariki in persistent poverty on the funding decisions is made the revised strategy and what was and/or who are vulnerable. publicly available—making the process involved to get it underway and ready Especially, very young children; transparent to applicants. When it comes for its first funding round in July. Māori and Pasifika children; and/ to assessment, Melanie says they’ll be or children in sole-parent families continuing roundtable reporting. In 2017 Hutt City Council put the new five-year, $3.7 million community funding 2. All rangatahi not currently in “Roundtable reporting provides us strategy in place. The goal was to help education, training or employment with some meaningful engagement with ensure their overarching vision of those who have received funding. ‘Lower Hutt being a great place to live, 3. All kaumātua who are experiencing This can lead to an enhancement of work and play’ is true for all residents. loneliness and social isolation what they’re achieving as groups and can provide opportunities for cross- Key drivers for the new approach came Community consultation indicated there pollination between organisations. from a shared understanding that the was desire for a more strategic approach, While we’ll be working to safeguard previous strategy could better align with measurable impact, sustainable practices, ratepayers’ money, we’ll also be working the Council’s objectives. It had been accountability, and fair distribution of on a high trust model where we focus in place for over 15 years and needed funding according to need; and key on building stronger relationships.” attention to meet the changing social research came from trusted sources environment. such as the Office of the Children’s Melanie says it’s been a big process Commissioner’s Where is help needed and there’s still more work to be done “The previous model was very broad, most? guide; the Sustainable Business and tweaks to be made, but they’re making it difficult to maintain direction Council’s report All In: A New Zealand Inc. excited about the new, strong focus on and measure impact. We knew we could approach to solve youth unemployment; improving equity across the three target do more for the community if we took a and Age Concern New Zealand’s population groups. more targeted approach,” says Melanie. loneliness and social isolation research. “With the new strategy we are basically The strategy redevelopment began They referred to models of established directing our funds to those who need 18 months ago, following a unanimous philanthropic organisations which it most in a way that’s going to create a decision across the Council to focus considered these areas like the Vodafone better future,” says Melanie. “Together investment on improving equity across NZ Foundation, Todd Foundation and we will empower our tamariki for brighter the city where it was needed most. J R McKenzie to help guide their strategy futures. We have been given a great and Melanie says that the support of opportunity to see the impact that a local “First there were a lot of conversations philanthropic adviser Kate Frykberg was authority can have when it’s working with our Councillors around what a invaluable throughout the process. genuinely alongside community and new funding model would look like, the in partnership with others, whether it’s consequences and the impact that it Another key message that came through community groups, corporates or central might have. It was through their input from the community consultation was government. I think all councils could and leadership that we’ve got this far,” that the application and funding process be moving this way. It just takes a bit of says Melanie, who attributes keeping needed to be clearer and simpler. courage—mahia atu!” communication channels open at all This helped inform their three-stream times as key. “It’s important to bring the funding model which aims to encourage innovation, improve relationships and decision-makers in the waka from very To find out more about the Community Fund early on in the journey.” foster longer-term partnerships. see: bit.ly/HuttCityCommunityFund

13 Philanthropy News Issue #74 Media works for worthy causes Sarah Cotter

Q&A with Sarah Cotter, Head of MediaWorks Foundation, about developing their grantmaking strategy.

The MediaWorks Foundation was We don’t want to sit around navel- We give all that we have if it will help established in 2015 with the goal to gazing, and we realise that we’re not —there’s a very genuine connection utilise its channels to support and the experts on knowing what will and and that’s why it works so well. shed light on important issues and won’t make real lasting change. For worthy causes. Since its inception, the that reason, our governance structure Our Community Support Programme Foundation has supported numerous was key, getting the balance right runs through our radio network in the not-for-profits, such as I Have a Dream between internal and external opinions 23 regions we operate in. Our local Charitable Trust, Youthline and the and input. We work with an external radio presence is very powerful in Sir Peter Blake Trust with creative advisory group who help us to decide communities across NZ, so we use TV, radio and online campaigns and which charities we should support. some of that engagement to assist awareness raising through celebrity community-based organisations with endorsements and events. Each A clear purpose and work processes their communication needs, whether year, the Foundation provides $4.65 that are easy to communicate to that be fundraising or awareness. million of in-kind media support. all stakeholders are also key. 4. The MediaWorks Foundation 1. How did MediaWorks establish 3. Was there a grantmaking model is unique in the sense that it the giving direction for the or an example that was applied provides value through in-kind Foundation? What is the difference when developing the strategy? media support. Where do you the organisation wants to make? Can you tell us about the strategy? focus your support, how do you decide who to support and how We started the journey by asking our I wish there was! There aren’t staff and our audiences what they any models that are similar to our does that process work? programme. We started from a very thought we should address as a For our National Partnership Programme, raw point of questioning our role, company. The answer was resounding, we run a robust selection process that understanding the value that we improve life for New Zealanders. ends with a pitch-style presentation provide, and how we could use that to As a large media company we’re in to our managing committee. The first help charities achieve their goals, just a really unique position to engage point is for charities to submit online as we do for our paying customers. with millions of people every day, applications which we review with so it was really important to get the We run two programmes, a National our advisory panel and our managing mood of the nation and then respond Charity Partnership Programme which committee. We question each to it. Our business is reliant on the focusses on working with charities application and ask if we can help relationships we have, so being a people- that are creating transformational to make a difference. Then we invite focussed charity was a no-brainer. change for the next generation. We the finalists to pitch their cause to us work hand in hand with these charity in person. This is my favourite day of 2. Who and what do you think is partners for a minimum of one year the year. We get to see the passion, important to have when going into and develop unique communication hearts and minds that are behind some the strategy planning stage? strategies, and fundraising plans that incredible causes. From here, it’s usually will help each charity to achieve their very easy to select our partners. Being a charity that’s attached to a objectives. We become their stealth corporate, it’s really important to have marketing team, a resource that is separation between church and state. a luxury for many organisations.

Philanthropy News Issue #74 14 I Have a Dream. Duncan Garner reading to children at Tikipunga Primary School, Whangarei

Our Community Support Programme While their programmes are quite This is our gauge of success—if we is quite different. We allocate a media different, there’s a lot of commonality in did what we said we’d do and got the budget to each region for the year. that we’re very public organisations and results we aimed for, well that’s a win. We ask our staff across the country staff and customer engagement are keys to nominate charities that they’d like to success. It was great to learn from With our Community Support to support—they’re in a much better their experiences. This really helped the programme, the measure is regional position to know what’s important in their MediaWorks Foundation to take shape. engagement. If all 23 regions are community. They submit an application actively out there, looking to support which is checked for eligibility. Another challenge was integrating the charities, and using their budgets, we’re Foundation with our business and happy. That means we’re making Once approved, the local staff can bringing everyone on board for the a difference on a very local level. get on with managing the relationship journey. As soon as we started to get just as they would for any paying great results for our charity partners, We don’t believe in creating admin- customer. It’s really simple and gives results that we could communicate to heavy accountability processes. each region autonomy but within a all stakeholders, the engagement came. We are more about genuinely framework. We’ve run 147 community- After three years, the Foundation is connecting with the cause, and then based campaigns since we launched, now an integral part of our business. connecting our audiences to that. from public fundraising for a helipad at a hospital in Christchurch to a A major benefit was, and still is, that 7. Any tips or advice for others Dancing with the Stars event for a we have something very unique and developing a grantmaking children’s charity in Palmerston North. powerful to offer. We talk to most strategy? New Zealanders every day. That made It’s really important to think about the 5. Developing a strategy for a new it easy for us to attract charities. value that you can add whether that’s foundation must come with its 6. What processes do you in-kind or financially—there has to be a benefits and challenges? have in place to ensure the genuine connection in the value chain. Starting with a blank piece of paper was Foundation is on track and Aside from that, make sure you both a benefit and a challenge. Initially, I heading in the direction the bring your stakeholders along for the reached out to peers at other corporate strategy has outlined? journey. Everyone loves a good news foundations like the Vodafone NZ story and if the genuine connection Foundation and The Warehouse Group. With our National Partnership is there, and makes sense to your programme we set out clear objectives wider communities, there will be many at the beginning of the relationship. great stories to share and celebrate. These are unique to each charity.

15 Philanthropy News Issue #74 Philanthropy New Zealand is the hub of philanthropy in Aotearoa New Zealand.

We provide thought leadership and practical help for everyone with an interest in giving to make the world a better place. Our members include private philanthropists; family, community and corporate foundations; and iwi and Thank you to: community trusts. This year’s project funders We also have a community membership BayTrust, Cognition Education Trust, category for not-for-profit organisations Foundation North, J R McKenzie Trust, that deliver services into the community. The Lion Foundation, The Pew Charitable Trusts, Ministry of Youth Development, Rātā Foundation, Te Muka Rau, The Tindall Foundation, Trust Waikato, Join now WEL Energy Trust, Wellington Community Trust

To become a grantmaker, individual This year’s in-kind supporters or community member or to find out AMP Capital, Auckland City Council, more, go to www.giving.org.nz Christchurch City Council, E&Y, Foundation North, Grant Thornton, Hugh Green Foundation, Kensington Swan, Russell Investments, Spark Foundation, Social Investment Agency, Strategic Grants, Te Papa Tongarewa, Te Rūnanga o Ngāi Tahu, Vodafone NZ Foundation, Wallace Arts Trust, Wellington City Council

Our key international partners Association of Charitable Foundations (UK), European Foundation Centre, Grantmakers for Effective Organizations (USA), Peak Grantmaking (USA), Philanthropy Australia, Philanthropic Foundations Canada, Responsible Investing Association Australasia

Thank you to our key sponsors Philanthropy New Zealand Board members

Chair Sandra Kai Fong, Rotorua Energy Charitable Trust Deputy Chair Terri Eggleton, BayTrust Members Barry Baker (Grant Thornton), Annette Culpan (Torokaha), Seumas Fantham (Todd Foundation), Murray Jones (Dove Charitable Trust), Rongo Kirkwood (Trust Waikato), Ken Whitney (Chisholm Whitney Trust)