Demand for Philanthropic Funds Continues to Rise
Tuesday, 7th February 2012 at 11:52 am
The growing demand for philanthropic funds sees another major Trust fund reporting a significant increase in the amount of grant dollars sought from Australian Not for Profit organisations.
Equity Trustees say the 2011 grant applications made to their discretionary trusts totalled $21.5 million with $3,396,720 being distributed through these grants.
Equity Trustees says this equates to a 75% increase in demand between 2009 and 2011.
Last month, Pro BonoAustralia News reported that another fund, Perpetual, revealing its philanthropy funding round was oversubscribed by a factor of 10 with some $90 million being requested by Australian Not for Profits, with only $9 million available for distribution.
Perpetual’s said the amount of funds requested has risen 118% since 2008 – from $41.5 million to $90.6 million – and the number of applications growing 63 per cent over the same time, from 745 to 1,214.
Head of Philanthropy at Equity Trustees, Tabitha Lovett, says Australia has weathered the global financial crisis well, compared to other western economies; however, government “belt-tightening” has resulted in decreased funding for the Not for Profit sector.
“Current research also reveals that Australian households are reacting to the GFC by saving, rather than spending, and that has similarly impacted on individual charitable contributions. As a result, charities have been forced to find alternative sources of funding to support their activities,” Lovett said.
“Charities have also become more sophisticated, engaging consultants and staff dedicated to fundraising and development. In addition, the use of social networking sites, direct mail requests, grant-writing and targeted advertising has allowed Not for Profits to seek out and identify funding sources in ways that were previously very difficult.
“The combination of these factors – decreased government funding, a difficult economic environment and sophisticated fundraising techniques – has meant that charities are identifying grantmakers and generating grant applications in greater numbers, seeking larger amounts of funding than ever before.
“At Equity Trustees for instance, the amount sought by grant applicants over the last three years has increased by almost 75%. As the demand for philanthropic grants increases and the process becomes more competitive, applicants need to ensure their applications meet the guidelines set by each grantmaker.”
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