WA Community Foundation Forced to Close
3 August 2010 at 12:34 pm
The Western Australian Community Foundation has been forced to close its doors, citing a lack of operational funding.
The Foundation says while it is continuing to see an increase in the financial contributions being made by the corporate sector to establish funds, the Foundation has not been able to secure funding for their own administrative costs.
Chairman of the Western Australian Community Foundation, Michael Anderson says the rapid growth in regional and indigenous philanthropy over the last twelve months has increased the need for the governance and support that the WACF provides to communities across the State.
Anderson says the knock-on effect has been that the level of demand for their services has significantly impacted their operational resources.
He says that despite the best efforts of the Board and management, the Foundation has not been able to meet the challenge of securing funding to support the operating costs of their business, whilst also servicing community funds in a post-GFC environment.
Anderson says it is a sad day for community philanthropy in Western Australia.
The Foundation has had a significant impact across Western Australia since 2004, with trusts and donation accounts currently covering 43 communities across WA.
The need for the Foundation’s philanthropic governance and services is highlighted by the growth of community funds under management of the organisation, with an increase from $1 million to over $7 million over three years. Since its inception, 268 grants have been distributed to WA communities.
WACF's manager of Corporate and Community Partnerships, Claire Paddison says the organisation could have been saved with an injection of $1.5 million dollars over three years to assist with a newly initiated and more sustainable business model.
The spokeswoman says Lotterywest approved a further grant to WACF in 2010 when it was advised by the Board of WACF that they were unable to meet their ongoing costs and needed urgent assistance.
She says the grant included an amount to allow the WACF to explore alternative business models. The Board of WACF subsequently advised Lotterywest that they had determined that the responsible course of action was for them to wind down the organisation and so they did not take up the balance of the approved grant.
The spokeswoman says the WA Government respects the endeavours of the WACF and their efforts to introduce this innovative approach to Western Australia.