Trust Fund Demand from Charities Soars
20 February 2014 at 11:27 am
Financial services company, Equity Trustees says it distributed more than $14.5 million last year to charities on behalf of the 206 charitable trusts it manages, as demand from Australian charities soars.
“The number of requests for grants from charities is on the rise, and the ratio of the funds requested against the income we have to distribute is around 8:1. This situation is increasing, not decreasing,” the Head of Philanthropy at Equity Trustees, Tabitha Lovett said.
The charitable trusts managed by Equity Trustees total more than $490 million in value and are comprised of private ancillary funds, public ancillary funds (including the EQT Foundation) and testamentary or ‘will’ trusts.
“While government and private sector funding for charities can ebb and flow, the proceeds from perpetual charitable trusts, such as those managed by Equity Trustees, continue to be distributed, regardless of the financial climate or government funding priorities.
Lovett says the funds available for distribution each year depend upon the investment returns of the existing perpetual trusts and the number of new trusts that are set up.
“In the past 10 years many new philanthropic trusts have been established, as more and more people see the benefit of giving during their lifetime.
“This reflects people’s increasing interest in actively supporting the community sector and because of an increasing awareness of the various options available for establishing a perpetual foundation or legacy,” Lovett said.
“The charitable trusts vary significantly in size and scope, and support a range of issues such as medical and scientific research, environmental protection, children’s charities, educational causes, animal welfare and disaster relief.”