Philanthropic Investment Companies Donate Almost $5M to Charity
19 July 2016 at 10:59 am
Australia’s first charitable-listed investment companies, Future Generation Global Investment Company (FGG) and Future Generation Investment Company (FGX), have announced donations worth $4.71 million to Australian charities.
The wealth creation vehicles are backed by billionaire philanthropists Solomon Lew, Andrew Forrest, Alex Waislitz and the Smorgon family.
FGG and FGX, which give shareholders exposure to local and international fund managers, donate part of their assets to charities.
FGG said it would deliver its inaugural annual donation of $2.42 million to Australian charities focused on children and youth mental health, with FGX providing $2.29 million to Australian charities focused on children and youth at risk following an inaugural donation of $1.64 million in 2015.
FGG was listed on the stock exchange in September 2015. Founder and director of the Future Generation companies Geoff Wilson said the donations would provide a significant source of funding for the nominated FGG and FGX charities.
As many as 22 charities working with children at risk and young people affected by mental health issues will be the beneficiaries of the donation.
“By talking about these donations we hope it may encourage other people to think more about strategic giving in the corporate sector, particularly relating to youth mental health. Youth mental health is chronically underfunded by the private sector and governments and needs all our efforts,” Wilson said.
“Future Generation provides both financial and social returns. We can make the donations because the companies charge no management and performance fees, enabling 1 per cent of their assets to be donated to our charities each year.
“All of the charities are working closely with Louise Walsh, our FGG and FGX chief executive officer, to ensure the donations are making a real contribution to agreed programs.”
Louise Walsh said: “Following an increase from FGX’s donation for 2015, we aim to continually grow the funding for both FGX and FGG charities with each passing year.
“Our big vision is to become the second biggest private sector funder in the Australian Not for Profit sector after the Paul Ramsay Foundation.”
David Murray, former chairman of the Future Fund and chairman of the Butterfly Foundation for Eating Disorders said the funding model was incredibly exciting for the organisation to become financially sustainable.
“This unique opportunity to secure ongoing funding from FGG, assuming we meet our agreed outcomes, enables Butterfly to introduce an intensive outpatient program for young people with eating disorders. Until now, this program was only available to wealthy Australians who could afford to travel to the United States for the treatment,” Murray said.
FGG has partnered with eight designated charities focussed on children and youth mental health: beyondblue, Black Dog Institute, Brain and Mind Centre, Butterfly Foundation for Eating Disorders, headspace, Orygen – National Centre of Excellence in Youth Mental Health, ReachOut Australia and SANE Australia.
FGX has partnered with 14 designated charities that benefit children and youth at risk: Act for Kids, Australian Children’s Music Foundation, Australian Indigenous Education Foundation, DEBRA Australia, Diabetes Kids Fund, Giant Steps, Kids Helpline, Lighthouse Foundation, Mirabel Foundation, Raise Foundation, Variety, United Way, Youth Focus and Youth Off The Streets.