The Arts Foundation has the ability to invest donations in perpetuity and to direct the income from the investment to a project instigated by donors. For example, you might want to establish an award for dance, film, composition, poetry, etc. You might want to establish a residency or a new commission. We are only too happy to hear your ideas and work with you to achieve your objectives. How much would it cost? To give you an idea, a $200,000 donation would generate enough funds to create and administer a new award of $10,000 for presentation every two years.
There are two types of funds you can set up if your donation is $100,000 or more. Capital donations, legacies or a transfer of assets from individuals or trusts can be vested in a Designated Purposes Fund or a Donor Advised Fund.
Unless the funds provided are a loan, the donation becomes the property of the Arts Foundation and is controlled by a legally binding deed of sub-trust. In almost all circumstances, the donor will have a say in the terms and conditions of the deed of sub-trust before it is adopted by the Arts Foundation.
A Designated Purposes Fund will be established for a specific purpose that the Arts Foundation administers and controls. A good example of this is the sub-trust for the Katherine Mansfield Menton Fellowship. Through the deed of sub-trust, the Arts Foundation agreed to establish an advisory committee to provide continuity with the previous managers of the residency.
Donor Advised Funds are the fastest growing chartable vehicle in the United States. These funds give the role of selecting recipients of grants to the donor. The donor acts as an advisor to the trustees who will normally approve the donor’s suggestions as long as the suggestions are consistent with the terms in the Arts Foundation's deed of sub-trust. If it is for the arts, it is usually okay.
The Arts Foundation recovers any direct costs of managing programmes from these funds and retains the equivalent of 1% of the capital sum per annum to assist with its general administration costs.
Contact us if you, or a group, would like to establish a fund with the Arts Foundation.