Other Donation Policies

Eligibility of Applicant Groups

In accordance with the requirements of the Trust Deed, the Trust may make donations only to not-for-profit groups.
A not-for-profit entity includes any of the following:

a)    any incorporated society, association or organisation, which is not carried on for the purpose of providing profits or gains to any member or shareholder, and whose governing rules or constitution restrict any distribution of funds to any member or shareholder;
b)    any entity registered under the Charities Act 2005;
c)    any not-for-profit educational institution or body, church or church administration organisation;
d)    small unincorporated organisations which have been in operation for at least 12 months, operate their own bank account, have financial statements, and have letters of support from at least two independent sources.    
Such groups may apply for a maximum of $1,000;
e)    any entity other than those in ((d) above) that holds a valid tax exemption certificate issued by the Inland Revenue Department.

Where a not-for-profit trust works in close association with a profit-making entity, staff will investigate the relationship, obtain the financial statements of both entities, and make a recommendation to the Board or Regional Committee as to whether the application should be considered.

A group that does not comply with the criteria listed in 17.2, may, in special circumstances, apply under a complying umbrella organisation, which must supply the relevant information.

Once a donation decision has been made by the relevant Donation Committee it should be final, subject only to ratification by the Board.

The Trust may require separately incorporated groups that are associated with a large umbrella organisation to submit a joint application. These “clustered” organisations are limited, like other applicants, to one application per year.

Groups operating outside the Trust’s area are not eligible to apply for funds, except that national bodies may apply for assistance towards that part of their work that benefits the community within the Board’s area.

Criteria for Decision-Making on Donations

In pursuing its duty under the Trust Deed to apply its funds for “charitable, cultural, philanthropic, recreational and other purposes, being purposes beneficial to the community”, the Trust will:

(i)      Support a wide range of recreational, educational, social, welfare and cultural projects and activities;
(ii)     Consider the extent to which applicant groups are effective in meeting community needs;
(iii)    Endeavour within the resources available to redress inequality and disadvantage;
(iv)    Ensure tangata whenua groups receive an equitable share of the Trust’s funds;
(v)     Respond positively to practical, imaginative initiatives;
(vi)    Take note of the number of persons benefiting from particular projects or activities;
(vii)   Have regard to the fund-raising capacity of applicant groups;
(viii)  Consider the viability of the proposal, especially with regard to the balance of funds required for implementation.

In evaluating applications, the following questions will be kept in mind:

(i)      Does the project meet an identified community need?
(ii)     Does the project duplicate an existing service?
(iii)     Is it realistic and achievable?
(iv)     Does the applicant group have sufficient organisational strength?
(v)      Is the project within the context of a well thought out programme or strategy?
(vi)     Is the application supported by people in the community?
(vii)    Does the project help to redress disadvantage?
(viii)   Does the project comply with obligations under the Treaty of Waitangi?
(ix)     How many people will benefit?
(x)      What other funds does the group have available?
(xi)     What other sources of funds have been explored?
(xii)    To what extent is the group able to engage in its own fund-raising and what contribution will the group be making to the project?
(xiii)   What proportion of the total cost is being requested?
(xiv)    Has the group received donations in the previous three years?
(xv)     How does the amount requested compare with requests made by similar groups with similar projects?
(xvi)    Are the outcomes of the project or activity measurable?
 

Applications Outside Donations Criteria

The Trust does not accept more than one donation application from a group in any one year, except in emergency situations.

The Trust does not make donations:
(i) to other trust funds, capital funds or endowments;
(ii) to directly fund scholarships;
(iii) for completed or retrospective projects, or to retire debt;
(iv) to underwrite fund-raising projects;
(v) to fund overseas travel for groups or representatives of groups;
(vi) to fund sporting uniforms;
(vii) to political parties or groups aligned with political parties;
(viii) to support the spiritual activity of religious organisations;
(ix) to commercial organisations or for the commercial activities of not-for-profit organisations;
(x) to local government or central government departments for activities that are clearly their responsibility.

For clarification, retrospective relates to the time the application was submitted to the Trust.

Donation Decisions

Terminology used to convey decisions made by the Board in respect to applications for donations will be as follows:

Approved Donation            $ amount approved
                                               No conditions
                                               All information received

On Hold Donation              $ amount approved
                                               (subject to receiving outstanding information)
                                                Approval to release by Trust Manager

Deferred Donation             No $ amount approved
                                               Reason to be recorded in detail on approval list and documented in full with Minutes of meeting.

Decline                                 No funds approved.Applications Outside Donations Criteria
 

Forward Commitments

To enable groups who seek funding to meet recurring costs (eg rent and salaries) to plan beyond the current year, the Trust will consider providing funding for such groups for up to three years.

Forward commitment funding will be conditional upon:

(i)           the group having a good track record in governance and administration;
(ii)          the group continuing to operate the programmes for which it has been funded to the satisfaction of the Trust;
(iii)         the group providing its annual report, financial statements and an evaluation of its programmes, before the next year’s sector  closes.

The proportion of the donations budget to be distributed as Forward Commitment funding will be set by the Board on the advice of the Financial Advisor and Trust Manager.

Emergency Donations

The Trust will consider an application for immediate financial assistance from a group which faces a crisis arising from unforeseen circumstances.

The Trust reserves the right to set conditions for the receipt of such a donation.

The Chair or Deputy-Chair and two other Trustees have delegated authority to make an emergency donation of up to $5000. Any exercise of this delegation will be reported to the next meeting of the Board or regional Donations Committee.