Supporting NFPs in a changing world
Now more than ever we need a not-for profit (NFP) sector that is compassionate and effective, innovative and strong. The range of people and communities in need is only getting larger and the responsibility – and opportunity – for NFPs to make a difference is growing just as fast.
To make that difference – to really deliver for the communities they serve – NFPs need the strong underpinnings that top-quality financial governance provides.
- An NFP investment strategy (including an NFP Investment Policy Statement) that’s tailored to the mission and the organisation. One that is part of an integrated strategy that takes account of an NFP’s Spending Policy and delivers long-term sustainability as well as short-term program needs;
- Financial structures and strategies that help the organisation manage their financial challenges – rising demand, variable funding, market volatility and regulatory change;
- An integrated approach to NFP financial governance that helps NFP executives, boards and CFOs meet all their compliance and regulatory obligations and by doing so meet the needs and expectations of stakeholders including donors, partners and government. With that high level of NFP financial governance in place, NFP leaders are freed to focus on managing their organisation, delivering on their mission and growing their capability.
At Perpetual, we have a team of experts across philanthropy, governance and investment that work together to help NFPs meet all their investment strategy, sustainability and governance needs.
We believe NFPs are a great engine for good. We’re here to help the leaders who drive them forward.
We are one of Australia’s largest managers and distributors of philanthropic funds, including acting as trustee for around 1,000 charitable trusts and endowments holding $2.9b in funds (as at 30 June 2020) and committing over $110 million in grants to the not-for-profit sector on behalf of our philanthropic clients in the 2020 financial year.
Insights and Resources
Perpetual seeks to strengthen the NFP sector by having our NFP, investment, governance and philanthropy specialists contribute to the debates that maximise the impact NFPs have in the community.
Perpetual publishes IMPACT, a digital newsletter focused on the issues that matter to philanthropists and NFPs – you can join the list here. Perpetual also runs a LinkedIn page specifically for the NFP/Philanthropy sector.
PERPETUAL'S 2020 AUSTRALIA PHILANTHROPY INSIGHTS REPORT
Every year Perpetual collects a wide range of data on the NFP sector via the funding applications from our IMPACT Philanthropy Application Program. This year’s report examines that data across big issues like funding, staffing and technological and structural change.
A NEW APPROACH FOR AUSTRALIAN NFP FUNDRAISING
Fundraising in Australia is changing rapidly. Mass giving is declining but we are about to see the largest intergenerational transfer of wealth in history. How do NFPs adapt? This white paper, written by fundraising expert, Melissa Smith, has the answers.
More on investment management and financial governance
More on fundraising
Perpetual invites NFPs to apply for funding through our IMPACT Philanthropy Application Program (IPAP). Each year Perpetual distributes around $110 million from the charitable trusts and foundations it manages on behalf of its philanthropic clients.
These grants have funded initiatives in arts and culture, education, the environment, social welfare, medical research and more.
APPLICATIONS FOR 2020 FUNDING HAVE CLOSED AND WILL OPEN AGAIN IN LATE 2021. YOU CAN FIND KEY APPLICATION RESOURCES AND INFORMATION HERE.
How we help
Perpetual has been supporting NFPs for decades – by expertly investing charitable reserves to fund their work, building governance skillsets and by working with NFP leadership to create capabilities that serves all stakeholders – clients, donors and partners. Fordham, a specialist accounting firm that’s part of the Perpetual Group also provides a wide range of accounting and business services to NFPs – ranging from payroll to budgets and cashflow management, tax and financial statement administration and ACNC lodgments.
Transparent financial governance is crucial for NFPs – their reputation is a key element of their ability to raise funds and attract high quality staff. It also underpins an NFP's ability to work effectively with other stakeholders – government or community bodies who need to know they are partnering with high quality organisations. Transparent financial governance is also crucial in a sector where compliance responsibilities loom ever larger.
Effective financial governance reduces risk for the organisation and its leaders. By helping to put in place policies and structures that have been tested and refined over many years, Perpetual can ensure your organisation’s financial governance policies are best-practice and evolve over time to meet changing needs.
Strategic financial governance practices must be aligned to the strategic goals of your NFP. Investment and spending policies that are tuned to your mission, your financial position and plans for service expansion. Structures and policies that reflect the risk profile and risk appetite of your organisation, stakeholders and board. At Perpetual we’ve worked with a wide variety of NFPs over decades. Our governance recommendations and implementation can help NFPs achieve their goals whilst ensuring compliance, integrity and accountability to stakeholders.
- Perpetual has been helping NFP boards adapt their governance processes to better manage COVID-19.
At Perpetual, we work with many NFPs who have seen improvement across all aspects of their operations when they optimise governance. Firstly, they achieve better financial results. Just as importantly, improved financial governance helps generate more support from funders and philanthropists and opens doors for partnerships with other NFPs, government and community groups.
- Perpetual also works with NFPs in the Aged Care sector. This white paper explores the challenge – and opportunity – of new investment approaches in Aged Care.
For many NFPs, successful management of their capital – and the cashflows they generate from fundraising – are crucial to sustainable success.
Investment Policy Statements
An Investment Policy Statement defines how an NFPs investment portfolio is to be managed and how investment decisions will be made. It is a crucial element of sound financial governance. Perpetual’s Investment Policy Statement service helps NFPs develop a prudent, ‘best practice’ Investment Policy.
Linking a well thought-through Spending Policy to the overarching Investment Policy will further enhance financial governance. A Spending Policy sets out how distributions from your long term investment portfolio are paid into your operating revenue. It helps balance the NFPs short-term operational needs with the long-term sustainability of that investment portfolio. Perpetual’s Spending Policy workshop helps NFPs decide what approach is best for their organisation.
- With cash rates low and staying low, a spending policy becomes even more important.
- The Funding Tightrope article - explains what a spending policy is and the building blocks to developing one.
There is no one-size fits all investment strategy that will work for all NFPs. The nature of the mission, cashflows, size, liquidity needs, stakeholder relationships and, crucially, board expectations and experience will all be important influences on the strategies NFPs adopt to manage their funds. At Perpetual we work with NFPs to develop, implement and optimise investment strategies that address all these issues.
- This article – Shortfall and Long fall – examines how Perpetual is helping NFPs cope with the investment implications of a low-rate world.
- NFPs – like all investors – have to balance risk and return in search of their objectives.
As with all investors, NFPs need to understand and manage investment risk. Act too boldly and your organisation’s activities could be affected. Invest too conservatively and you reduce your ability to fund future activities by allowing the real value of your capital to fall. Our “protect and grow” philosophy balances risk and return and is executed using sophisticated investment strategies that are tailored to NFP’s needs.
Strategic asset allocation
Having the right mix of assets is not simply a question of investment methodology. When we build portfolios for our NFP clients we take into consideration issues like cashflows, time horizons, risk profiles and more. For some clients, asset allocation decisions will be all about generating income to fund regular activities. For others it will be about maximising long-term growth. We have worked with many NFPs over the years where these questions involved a change of strategy. These strategic shifts can be as different as the organisations that need them. For example:
- moving away from property ownership towards more liquid investments.
- a strengthened focus on building up cash reserves.
- a decision not to invest to generate income but to focus on higher longer-term returns to grow the portfolio and fund a planned long-term shift in the mission.
We recognise that in a very real sense, NFPs are often managing other people’s money – whether it’s donors, governments or communities. That makes accountability, communication and reporting vital. Perpetual advisers work closely with our investment team and with NFP boards and leaders to tailor regular investment reporting and board presentations so NFP leaders always understand what’s happening with the funds they’re accountable for.
Investing for NFPs is a specialist skill and Perpetual offers NFP clients the benefit of extensive experience and real scale. Perpetual is one of Australia’s largest managers of philanthropic funds, with $2.9 billion in funds under advice for charitable trusts and endowment funds as at the end of FY20.
Perpetual’s investment philosophy is built around quality, value and risk management. We take a long-term approach to investing and believe high quality investments perform over time.
We enact this investment philosophy by diversifying across asset classes, industry sectors and individual investments and ensuring the assets in portfolios meet our stringent quality investment criteria.
- Like to know more about the investment philosophy and process used by Perpetual Private’s award-winning investment team, including sustainable and ethical investing?
Perpetual works closely with NFPs and other philanthropy sector stakeholders to build capacity across the sector through thought leadership, network building, education and practical assistance. Here are just some of the capacity building activities Perpetual invests in.
Perpetual has an ongoing partnership with Stanford University’s Center on Philanthropy and Civil Society (Stanford PACS). That partnership brings top-quality thinking from PACS leaders such as Lucy Bernholz, Rob Reich, Paul Brest and others to Australia to talk on issues as varied as philanthropy in the digital age, more effective giving, philanthropy and civil society and more. Perpetual has also sponsored educational visits to Stanford for a wide range of NFP and philanthropy leaders across Australia.
- See leaders from Stanford PACS and Perpetual debate the future of philanthropy.
In any NFP it is the CFOs, finance teams, investment committees and boards who drive the organisation’s financial governance and long-term sustainability. To help these leaders Perpetual’s NFP investment experts offer them access to white papers, financial tools and resources and opportunities to network with peers.
Data for decision making
Perpetual is committed to providing tools and resources to support our not-for-profit clients. Through our partnership with Seer Data & Analytics, we provide clients with exclusive access to our IMPACT Philanthropy Application Program (IPAP) data, to help them make data driven decisions. Perpetual’s NFP clients can access client tools and resources here.
OUR ADVISERS – IN THEIR OWN WORDS
Caitriona Fay is a senior philanthropic leader in Australia. She has more than 18 years of private family and institutional grant-making experience in Australia and Europe.
At Perpetual, Caitriona oversees approximately $4bn in community funds across Perpetual’s work with philanthropists, non-profits and Native Title groups. Under her management, Perpetual’s clients distribute more than $100 million annually through philanthropic trusts, estates, and endowments.
Before her time with Perpetual, Caitriona has worked in government and philanthropy via The Ian Potter Foundation and The Heritage Lottery fund in both Scotland and England.
Outside of Perpetual, Caitriona is a leader in gender-wise and LGBTQIA+ philanthropy in Australia. Caitriona is a founding board member of The Channel, Australia’s first sexuality- sex- and gender- diverse giving circle, reflecting her passion for the power of democratised philanthropy. Caitriona is also a founding member of Melbourne’s Women’s Fund and an Australian member of the International Women’s Forum.
Scott's specific focus is working with not-for-profit entities and endowments to manage and protect their investment assets.
Scott joined Perpetual after a 30 year career in global financial institutions, having worked for a number of blue-chip investment and institutional banks in Australia and abroad.
He has a Masters in Applied Finance, a Bachelor of Commerce and a Diploma in Financial Planning, is a Graduate of the Australian Institute of Company Directors and a Trustee Fellow of the Association of Superannuation Funds of Australia. He is a Board Member of the Nature Conservation Trust of NSW and of the Cemeteries and Crematoria Agency of NSW.
Scott is a member of the Perpetual Trust Company Investment Committee.
Jamie has over 20 years’ experience providing sophisticated investment advice to high net worth families and Not-For-Profit organisations.
With $1.5 billion in funds under management, Jamie’s team provides strategic advice to high net worth families, philanthropists and Not-For-Profits across medical research, cemeteries, schools, professional and sporting associations, indigenous land councils and other community organisations, to help maximise their investments to support the community.
Jamie takes a partnership approach with his clients to deliver tailored investment strategies to meet their specific investment objectives, taking into account ethical portfolio preferences and board governance requirements. He works closely with specialist teams within Perpetual, including investment strategy and governance, portfolio construction, investment research, philanthropy, estate planning and local and international tax and accounting.
Prior to joining Perpetual, Jamie spent seven years as a Senior Adviser at Westpac Private, where he was responsible for providing sophisticated advice to wholesale clients. He held a similar role prior to Westpac at NAB Private.
Jamie holds a Bachelor of Business from Griffith University, is a Certified Financial Planner and is a Member of the Australian Institute of Company Directors (AICD).
Daniel’s team looks after many not-for-profit clients as well as family offices and philanthropic trusts, managing over A$1.2 billion for their clients. With over 26 years experience, Daniel has a deep understanding of the unique needs and strategic objectives of not-for-profit organisations and helps them develop best practice investment policies as well as connecting them with other parts of Perpetual’s philanthropic resources.
Additionally, in June 2020 Daniel was named in Barron’s Top 100 list of Australian Financial Advisers, ranking #22 in Australia. The list's core mission is to shine a light on the best financial advisers in hopes of encouraging others to emulate them, thereby improving client care standards in the industry. The ranking functions as both a guide for consumers looking for an adviser and as a scorecard that advisers can use to measure themselves against. Find out more.
Daniel has a Bachelor of Economics, dual CFP designations (Canada & Australia), and is a graduate of the AICD Company Director’s course (GAICD).
Andrew specialises in advice to large complex organisations, family offices, not-for-profit clients and philanthropic trusts. He has a deep understanding of the unique needs and strategic objectives of not-for-profit organisations and helps clients implement best practice governance and investment policies. Andrew and his team also connects clients to other parts of the Perpetual business, including Philanthropic services.
Prior to joining Perpetual, Andrew held senior adviser roles within commercial and private banking based in Adelaide over the last ten years. Andrew has also held senior manager roles in institutional banking at JPMorgan Chase, Deutsche Bank and Royal Bank of Scotland in Tokyo, Singapore, London, New York and Sydney over 20 years.
Andrew has a Bachelor of Business (Finance), Advanced Diploma of Financial Planning, is an accredited Self-Managed Super Fund adviser (SMSFA), has completed the Australian Institute of Company Directors course (MAICD) and speaks several languages.
Chris is a Partner in Perpetual Private’s Western Australian office. He specialises in securing the financial futures of successful Australians.
In 2019, Chis was ranked number 29 in the influential Barron’s Top 50 Financial Advisers in Australia.
With over 25 years’ experience, Chris is an expert in looking after the complex advice and strategic wealth requirements of High Net Worth clients and their families. Chris also has a deep understanding of self-managed super funds and how to maximise super for enduring financial security in retirement.
Chris also looks after Health & Personal Injury clients, managing their Personal Injury Compensation Trusts to provide a better quality of life, medical care and peace of mind knowing a compensation payment will last long into the future.
Chris also helps clients establish Philanthropic Trusts to give strategically to charities by taking into account taxation and other factors in their giving.
Chris is a qualified Certified Financial Planner ® or CFP ® and holds a Diploma of Financial Planning from Deakin University. He has also completed an Advanced Management Program from the Australian Institute of Management (AIM) and is an Affiliate of AIM.
As a qualified, dedicated adviser, Marisa has focused exclusively on providing personal strategic and investment advice to private clients and high net worth individuals over the past 20 years.
Prior to joining Perpetual, Marisa has worked as a senior adviser across both Global and Australian institutions such as Macquarie Bank, Citibank and Westpac Private. Her areas of expertise include, superannuation, retirement planning, SMSF, specialist structured investments and Foreign Exchange.
Marisa’s most important attributes are her exceptional interpersonal skills and ability to build trust and rapport with clients. Upon meeting with Marisa, it is immediately apparent that she is passionate about assisting clients achieve their goals by helping them make well-informed decisions to manage, grow and protect their wealth.
Marisa is committed to providing her clients with the highest quality financial advice and takes pride in building long standing relationships. In her role at Perpetual, Marisa’s mission is to provide an exceptional level of service and an unwavering commitment to simplify often complex strategies to help clients reach their goals and objectives.
Marisa delivers a myriad of investment solutions by bringing in specialist teams within Perpetual, including investment strategy & research, portfolio construction, philanthropy, and tax accounting.
Perpetual provides a wide range of services to the NFP sector. That service is delivered by a team of experts in everything from investment and governance to philanthropy and finance. We seek to partner with NFPs in the areas where we can bring our unique capability to bear, helping them service their communities, fund their operations and increase their impact.
Perpetual works with NFPs and charities across a wide range of fields in Australia and overseas – education, social welfare, advocacy, aged care, medical research and the arts – to name a few. Our services range from NFP governance – investment and spending policies, investment strategy – to all aspects of the specialist investment management of NFP capital.
Perpetual also works with donors every day to help them generate greater impact from their giving. So, we’re a natural connecting point between philanthropists, funders and NFPs. Just as importantly, we’re constantly engaging with NFPs, philanthropists, business, government and the education sector to help increase the impact NFPs can have – through thought leadership, network building, a focus on capability and involvement in public policy processes.
Perpetual is an ASX-listed, diversified financial services company which has been serving Australians since 1886 when it was established as a trustee company a group of businessmen including Sir Edmund Barton, later to be Australia’s first Prime Minister. That trustee heritage – and the culture it created around putting clients first – is what makes Perpetual unique.
WANT TO LEARN MORE?
To find out more about how Perpetual can help with investments, governance, funding and more, please call us on 1800 631 381 or submit the form below.
IMPACT provides insight into important issues for philanthropists and the not-for-profit sector. It shares thought provoking ideas and best practice examples that aim to both stimulate and motivate a passion for philanthropy with Impact.