President’s Report 2009
Bruce Bonyhady
Philanthropy Australia Annual General Meeting April 30, 2009
Lady Southey, Trustees, fellow members of Council, ladies and gentlemen, it now gives me great pleasure to present my 2009 President’s Report. As I did last year, I intend to structure my review of the past year by reporting against the Strategic Plan and its four key goals of Representation, Grow and Inspire, Effectiveness and Governance.
I will then provide an update on the changed landscape facing the philanthropic sector and conclude with some remarks about key issues and possible priorities, based on a speech that I gave to the Philanthropy New Zealand Conference, Passion Pragmatism Possibilities, a few weeks ago 1 .
1. Representation
Representation was a major priority in 2008 and this is likely to continue in the year ahead.
With the current Labor Federal Government in its first year, Philanthropy Australia participated in seven key consultations, produced five submissions on major issues affecting the sector and met with a large number of Ministerial policy advisors and senior public servants.
Key amongst these efforts were detailed submissions to the Australian Treasury on the “Review of Prescribed Private Funds (PPFs) Regulations” and the “Green Paper on Financial Services and Credit Reform” involving Trustee Companies. Philanthropy Australia also made a submission to the Senate Economics Committee Inquiry into the
1
Bruce Bonyhady, March 2009, All Weather Philanthropy, Philanthropy New Zealand Conference, Passion Pragmatism Possibilities
disclosure regimes for charities and not-for-profit organisations and was one of 11 participants invited to a roundtable with the Committee as part of its detailed information gathering.
Philanthropy Australia also held discussions with the Victorian, NSW and Western Australian State Governments. In particular, the Victorian Department of Planning and Communities has established a new Office for the Community Sector which has initiated a number of consultation groups. Philanthropy Australia is a participant in their Non Profit and Community Foundations Roundtables. Philanthropy Australia is also represented on the Australian Accounting Standards Board Non Profit Organisations Focus Group; the NSW Department of Community Services Partners Reference Group; and, the Advisory Board (Victoria) of the Centre for Social Impact.
Philanthropy Australia was also represented at the Australian Government’s 2020 Summit, through our Chief Executive, and also the Social Innovation Summit hosted by Macquarie Group Foundation, Social Ventures Australia, the Centre for Social Impact and Mission Australia.
In the light of the dynamic policy environment and the potential for new issues to emerge which are of great importance to Members, an email list has been compiled to inform members of critical policy changes relating to the sector. The Policy List was first used in late November to inform Members of the Treasury Discussion paper on Prescribed Private Funds and will continue to be used to notify members of important and urgent policy-related matters.
As a result Philanthropy Australia continues to cement its position as the key organisation to go to for information and advice on the philanthropic sector, as well as aspects of the not-for-profit sector.
As always John Emerson and Alice MacDougall from Freehills have been generous with their time and advice on many issues, and I would like to express the appreciation and gratitude of Members, Staff and Council for their assistance.
2
2. Grow and Inspire
The growth in Philanthropy Australia’s reputation during 2008 was reflected in a nine per cent rise in Full and Associate Membership. At end December Philanthropy Australia had a total of 363 members, comprising 233 Full Members and 130 Associate Members.
The growth in membership reflects not only the growth of philanthropy but also an increasing desire by trusts to reach out and connect with others in the sector. This desire to connect – and to access tools and venues which will allow such networks to be built – underpins many of Philanthropy Australia’s new and continuing activities.
The Philanthropy Australia Conference in October was a highlight of the year. It took place against a backdrop of unexpected global financial crisis which proved to be an additional catalyst to an already stimulating environment. The Conference enabled Members to meet face-to-face, to share their knowledge and experiences and to reaffirm and refine their efforts to make a sustained positive impact through their philanthropy.
It was very pleasing to see so many Members seeking new opportunities and clearly enjoying and valuing the experience. Following the Conference positive and constructive feedback was received that will contribute to an even better conference in 2010.
The reputation of the Philanthropy Australia Website continues to grow as a source of important information, education material and inspiration of the philanthropic sector. Today, there is an average of 15,000 unique visitors to the website each month, compared with 8,300 in January 2008.
There have also been substantial increases in the usage of the PhilanthropyWiki. The Wiki provides a wide range of tools and is fast becoming the first port of call for key resources on philanthropy. By year end there was an average of 4,800 visits to the PhilanthropyWiki site each month, compared with only 1,500 in January 2008.
Another innovation this year was the launch in October of a new website under the banner “PPFs and Philanthropy: a new culture of giving”. This website provides
3
information to those who are new to philanthropy or are setting up a Prescribed Private Fund (PPF). It brings together material from the Philanthropy Australia website which is relevant to PPFs and arranges it in a way that is both easy to access and assists new trustees. It offers legal and structural information about PPFs, issues and debates relating to philanthropy, case studies and news. Usage of the site spiked in December with the release of the Treasury PPF Discussion Paper and as the site’s contents are expanded, usage is expected to rise further.
The philanthropyOz Blog has also seen a steady increase in usage and has now over 300 subscribers who receive its updates, including sector-wide news, reviews from Philanthropy Australia staff, and notifications of Website updates. Many members now use the blog as a key resource for regular news. It is also used by the general public and in the week after the Victorian bushfires, visits to the blog increased six-fold as people sought information on different ways to assist.
To create a greater awareness of the role of philanthropy, Philanthropy Australia has been working collaboratively with a number of like-minded organisations. Throughout 2008 these included Artsupport Australia; the Australian Women Donors Network; Research Australia; and, the Australian Environmental Grantmakers Network. In Perth, thirty major donors, many of whom are new to philanthropy attended a presentation cohosted with Freehills and LotteryWest.
Strong support for Community Foundations has also continued. This year, along with the Foundation for Rural and Regional Renewal, Philanthropy Australia sponsored the annual Australian Community Foundations Forum in Canberra. The local host was Greater Good – The Capital Region Community Foundation. The theme was “Community Foundations for 2020” and there was a record attendance of 73 people from community foundations across Australia.
Philanthropy Australia has also been active in supporting the work being done in Tasmania to restructure the operations of the Tasmania Community Foundation; assisting the Board of the recently formed Eyre Peninsula Community Foundation in South Australia; and, working with the Victorian Department for Community
4
Development to establish 13 new Community Funds across Victoria over the next 2-3 years
Internationally, the Chief Executive Officer was invited by the USA Council on Foundations to present and moderate a session at its Conference entitled “Sharing Knowledge in a Globalised World: Let’s Stop Re-inventing the Wheel!”. Management also attended the Asia Pacific Philanthropic Consortium Conference on “Diaspora Philanthropy” in Vietnam in May.
Positive media coverage for Philanthropy Australia also continued as the organisation’s media profile continued to rise. However, while ‘philanthropy’ was a buzz word for much of 2008, since September, the interest in and reporting of philanthropy has dropped markedly, coinciding with the onset of the almost blanket coverage in the media of the global financial crisis (GFC).
The GFC has, however, led to an increase in stories about individual giving and the effects of the downturn on the incomes of not-for-profit organisations, and this has created new and very positive media opportunities to encourage Australians to give.
3. Effectiveness
One of the most important aspects of Philanthropy Australia’s mission is to ensure that the sector continues to be as effective as possible in the use of its scarce resources. As a result of the global financial crisis and its consequences for the financial resources of foundations, the goal of greater effectiveness has become even more paramount.
The KnowledgeBank project, supported by the Macquarie Group Foundation, was completed on budget and on time in December last year. It provides a dynamic and extensive suite of information and communication tools. A key component of its implementation in 2008 was the introduction of a full site-search function. It allows the on-line user to search using a keyword across the website, wiki, blog and library and so has made it much simpler for users to find the information they need quickly and easily.
5
The last part of the KnowledgeBank project is a projects database, which is being termed the Projects Pool. This will be a reservoir of projects, recommended by Members, for which not-for-profit organisations are currently seeking funding. This database is being built because of feedback from Members who are very keen to have a central place to search for projects, where much of the due diligence has already been done. Other Members would also like to be able to list projects that they have researched and would like to recommend, but either cannot fund or are looking for cofunding. The Projects Pool will be available to Full Members only and it is expected that this facility will be especially valuable for foundations which do not have dedicated research staff or do not wish to have a high public profile.
Regular communications with members continue to provide them with timely and pertinent information. The weekly media alert service, PRESSing Matters is received by 800 individuals from the Membership. It monitors print media from around Australia and provides members with comprehensive information on articles concerning the not-forprofit and philanthropic sectors. Similarly, the monthly on-line newsletter to Members, Philanthropy Review, has a wide readership and is very well received.
In addition, the Philanthropy Australia staff continues to provide high quality research and support for Members, as well as responding to queries from the media, government, potential philanthropists and grantseekers. The 14th edition of The Australian Directory of Philanthropy, 2008-2009, was published in November 2007. Since then 1,794 copies have been sold; 844 in book format and 950 online. Sales in the online format continue to be higher than sales in the book format and this trend is increasing.
Again Australian Philanthropy, delivered insightful, informative and from time-to-time challenging reading for Members and Subscribers. The four issues in 2008 were: ‘Climate Change”, “Doing Philanthropy Differently” “Supporting Education: the Vital Ingredient” and “Women and Philanthropy: Giving by and for Women and Girls”. These journals have all been warmly received by Members, with the feedback on the “Climate Change” and the “Doing Philanthropy Differently” Journals, being particularly positive.
6
The Treasurer, the Hon. Wayne Swan, contributed a piece for the “Women and Philanthropy” edition of the Journal. This article is significant because of its strong support for the unique role of philanthropy in a modern society.
In line with Philanthropy Australia’s green office policy Australian Philanthropy will be printed on carbon neutral, 100% recycled paper from 2009 onwards.
Member Events
During the past year a number of very successful and well-attended Member-led seminars have been held. In particular the Strategic Indigenous Awareness workshop conducted by Grant Sarra in Sydney proved to be a challenging and thought-provoking day workshop for some 50 members.
International visitors, who spoke at special events for Members in 2008, included: • • • • Dr Diana Leat, Director of Creative Philanthropy Program at Carnegie UK Trust; Ken Wilson, CEO of the Christensen Fund, USA and Member of Philanthropy Australia; Chris Andersen, CEO of the Lutheran Community Foundation USA; and, Diane Ragsdale of the Andrew W.Mellon Foundation, which is one of the biggest funders of the arts in the USA.
An Investment Forum, held early in 2008 with Warakirri Asset Management, was the first of its type and was very well supported by Trustees and staff of Members. As a result follow-up investment forums are planned in 2009.
Affinity Groups and Networks
The Affinity Group Meetings and Networks in 2008 were well attended, with some outstanding results.
The Early Intervention Affinity Group led by Andrew Brooks of the Colonial Foundation held four very good lectures resulting in a comprehensive study of 'The critical issues and drivers of development in early childhood'. There are plans to ensure this study is
7
made available to a wider audience through the production of a booklet to guide philanthropists.
The Arts Affinity Groups in Sydney and Melbourne have been reinvigorated with particular thanks to Ian Roberts of the Harold Mitchell Foundation and Louise Walsh of Artsupport. The groups are currently working on a submission to the Australian Government’s National Cultural Strategy.
Ten Members of the Indigenous Affinity Group in Melbourne travelled to Echuca to provide an Introduction to Trusts and Foundations to Indigenous organisations in northern Victoria. The Workshop included general advice on submission writing and the opportunity to discuss specific projects with individual foundations. A similar visit involving eight members also travelled to Robinvale and Mildura and a further field trip is planned for the first half of 2009.
The Corporate Network was very active in 2008 with speakers including Geoff Allen, the founder of the Allen Consulting Group, who discussed his report Corporate Community Investment in Australia. Peter Shergold, the CEO of the new Centre for Social Impact, spoke about ‘Creating the new national institution: the Centre for Social Impact’.
In June, the Documentary Australia launch of a report on homelessness, funded by the Caledonia Foundation, together with ABC TV’s screening of the film “Oasis” was to many Members an excellent example of a philanthropic foundation taking a strategic approach to an issue, funding the research, giving voice to the disadvantaged and contributing to social policy in a very important area.
In a similar vein, the screening of the documentary “Telling the Truth” produced by the Australian Conservation Foundation and supported by the Nelson Meers Foundation, gave voice to people who became volunteer presenters with The Climate Project, the follow-up to the film ‘An Inconvenient Truth’.
8
4. Governance
A major governance initiative this year was the launch of the Philanthropy Australia Trustee Handbook “Roles and Duties of Trustees of Charitable Trusts and Foundations in Australia”, which was supported by the Westpac Foundation. The Handbook is available free from the Philanthropy Australia website and has been downloaded over 1,300 times.
David Ward, the author of the Trustee Handbook, received many helpful comments from Trustees and from Freehills who provided the legal oversight on a pro bono basis. There has been overwhelming interest in the Trustee Handbook and a number of very successful workshops on the roles and responsibilities of trustees have already been held. There will be further Trustee Workshops in 2009.
The regular Grantseeker Workshop program continued with workshops in Melbourne, Sydney and Brisbane and in addition Philanthropy Australia was commissioned by governments and nonprofit organisations to conduct a further dozen grantseeker workshops across Australia. Vanessa Meachen, Research and Training Manager, has completed a first draft of a general Grantseeker Manual commissioned by the Department of Community Services NSW and is currently drafting an additional more specific guide entitled “A Grantseeker’s Guide to Trusts and Foundations”. Philanthropy Australia staff continue where appropriate to speak to community groups and at various forums to enable not-for-profit groups to increase their understanding of the philanthropic sector and to target their approaches accordingly. To ensure our own good governance, the Council of Philanthropy Australia met six times and the Audit, Risk and Finance Committee met four times during 2008. Philanthropy Australia also contributed to environmental sustainability through paper and energy conservation policies as well as participating in carbon offset schemes for the Conference and for air travel where possible.
9
The Current Landscape and Forces Shaping Philanthropy
Let me now turn to the current economic and social landscape and the forces shaping philanthropy.
It is less than three years since Warren Buffet announced that he would be giving 85 per cent of his fortune, which was then valued at US$44 billion, to the Bill and Melinda Gates Foundation. At the time his gift was heralded as the extension of a new Golden Age of Philanthropy. With the benefit of hindsight, it was a prescient sign from one of the world’s most astute investors that markets were close to peaking.
Now it is clear that much of the economic growth and rising markets through to late 2007 was due to excessive leverage, largely funded by banks. Many banks in the US, UK and other parts of Europe have wiped out their shareholders’ funds due to their imprudent lending practices. Today the survival of what were some of the world’s largest banks and the security of their depositors’ balances are dependent on governments for on-going funding support, new equity injections and taking toxic loans off their balance sheets.
As a result of deleveraging, all of the major economies are shrinking rapidly and the world is in the most severe recession since the Second World War. The Managing Director of the IMF has described current conditions as the “Great Recession” 2 and the latest IMF forecast, released earlier this month, predict that real GDP will fall in 2009 by 2.8 per cent in the US, 4.2 per cent in Europe and by 6.2 per cent in Japan 3 .
In response to the rapid deterioration in the global economy the Australian Government has introduced two economic security packages and the 2009-10 Budget is likely to include further significant stimulus measures. The Reserve Bank has cut official interest rates aggressively to 3.0 per cent, while the banking system in Australia remains sound so, unlike many other countries, Australia is not in the midst of a banking crisis.
2 3
Dominique Strauss-Kahn, Managing Director IMF, Sydney Morning Herald, 11 March, 2009 IMF World Economic Outlook (WEO), April 2009
10
However, it is now clear that Australia is also in recession, while the large current account deficit which needs to be financed offshore will make Australia vulnerable and dependent on how the current global banking crisis is resolved. If US and European banks now give priority to lending at home, Australia will be drawn deeper into the global recession by this new form of protectionism.
For the philanthropic sector, the growing recessionary forces have major implications for all aspects of the work of foundations.
First, the philanthropic sector will provide an automatic stabiliser effect as the economic cycle continues to turn down. New wealth which was created in the economic upswing and has been transformed into foundations will be dispersed as the cycle weakens.
Second, all foundation trustees will continue to face challenging investment decisions, as they seek to maintain and ideally grow foundations’ real incomes over time. Clearly, for most foundations, this will not be possible in the period ahead. However, asset management strategies will play a critical role in setting the funding parameters for all foundations.
For example, trustees will need to choose between income stability, on the one hand, and capital stability, on the other, as part of their asset allocation decisions. Investments in high grade short term fixed interest will provide capital stability, while offering only very low income returns. Longer term government bonds have offered some protection to portfolios up to now, but the risks of capital loss will escalate if markets anticipate that loose monetary policies and big budget deficits will lead to inflation. Equities which currently appear to be offering high yields will be vulnerable to dividend cuts and are likely to remain volatile as investor sentiment swings between the current phase of cautious optimism and renewed pessimism.
Good active managers will significantly outperform passive managers, but careful due diligence on all investment managers and stock selections will be essential. As those foundations which invested with Madoff or in CDOs have discovered to their great cost, not everything is at it may appear.
11
In the medium term, economic recovery, the need to generate the highest long term income and the perpetual nature of most foundations suggest that high equity and growth asset exposures will be optimal. Equity markets have bounced sharply in the past six weeks, but could reverse these gains. Market timing is also notoriously difficult and dangerous.
Eventually markets will correctly anticipate a return to better economic conditions and already markets are scrutinising credit data to see whether and when a sustained upturn is likely to occur. Investing wisely will therefore require great vigilance and foresight and it is for this reason that Philanthropy Australia will be hosting two investment seminars for Members next month.
Third, while economic recession will lead to increasing demands for philanthropic support, the funds from philanthropy are always small compared with potential needs and so excessive demand is never the main challenge for philanthropy. Rather, the challenge for philanthropy is to use its unique resources to create powerful multiplier effects in addition to the money it provides. Therefore the terms that Philanthropy Australia has chosen to define philanthropy are even more apposite in the current challenging environment. To remind you, philanthropy is:
The planned and structured giving of money, time, information, goods and services, voice and influence to improve the well-being of humanity and the community.
Harnessing these additional resources, which are only limited by our imagination, will be critical to successful philanthropy in the years ahead as foundation incomes are cut.
Fourth, just as investment risks have risen, so have the risks of failure of non profit organisations. This implies the need for increased organisational due diligence, as well as project due diligence before committing any funds. However, this is not a reason to hold back. Foundations can and should take risks and it is through risk taking that philanthropy both differentiates itself from governments and provides the greatest community dividends.
12
Fifth, the Government should be and is taking primary responsibility for reversing the recessionary and deflationary forces now at work. Total fiscal stimulus to date in Australia exceeds $20 billion in the current year and interest rates have been cut by 4.25 percentage points since their peak in mid 2008. With the Government providing such significant monetary and fiscal stimulus, it is not the role of philanthropy to bolster total macro-economic demand.
In addition the social security net in Australia, as in many other countries is much more developed than it was during the Great Depression, as it will automatically support people who become unemployed. Nevertheless, it is inevitable that some people will fall through the government’s safety net and so foundations will face new demands for assistance which are both urgent and dire. In these circumstances I expect that philanthropy will respond spontaneously and generously, as it always has. However, philanthropy cannot and should not seek to play a major part in offsetting the immediate and short-term effects of the financial crisis.
Sixth, while recognising that each foundation will have its own criteria and priorities, the response of philanthropy to the emerging economic and financial events should be at the micro-economic level. Philanthropy should therefore continue to be entrepreneurial, to have a high tolerance to risk, to be independent and pluralist, to utilise its deep bottomup knowledge of communities and to create impact, leverage, innovation and new efficiencies, while the Government pulls the macro-economic levers. In that way the complementarity and community benefits of government and philanthropy working together will be maximised.
These priorities suggest that the next chapter in philanthropy’s history should differ from the Great Depression and earlier economic and financial shocks, when foundations focused primarily on short term needs and the consequences of economic decline, rather than looking to build a stronger future. Indeed, I expect that the responses of most foundations in the year ahead will be to continue to maximise their long term impact by: •
Identifying leaders, especially emerging leaders, in research and community organizations;
13
• • • • • •
Finding visionaries who are also practical and can deliver tangible results in tough times; Addressing causes rather than symptoms; Supporting organisational development and creating sustainable outcomes; Creating leverage and hence impact beyond the immediate area or project that has been funded; Facilitating the dissemination of outcomes, so that research findings and best practice ideas are quickly adopted and waste is minimized; and Building enduring partnerships with other foundations, social investors, research groups, community organisations and across sectors.
Seventh, philanthropy has a major role to play in sustaining, nurturing and building social cohesion and confidence. In 2000 Robert Putnam in his landmark study, Bowling Alone: The Collapse and Revival of American Community, concluded that the bonds holding the US community together had weakened. People were bowling alone, not in groups and at the time other social commentators suggested that the signs of declining social cohesion that Putnam observed in America were also evident in many other countries.
Since then the evidence about the strength of social cohesion in the United States has been mixed and, most recently, some commentators have seen the grassroots base to President Obama’s successful election campaign as evidence that American citizens and particularly American young people are re-engaging around key social and political issues.
Closer to home, in Victoria, we have seen an extraordinary outpouring of community spirit, in the wake of February’s devastating bushfires, notwithstanding the negative effects from the Global Financial Crisis. Over $330 million has been donated to the Red Cross Bushfire Appeal as everyone has dug deep to give what they can. Then, two weeks ago, the Royal Children’s Hospital Good Friday Appeal raised a record $13.8 million. Suddenly, Victorians and Australians have started bowling together again, drawn together by a sense of something bigger and more important: a renewed sense of connection, community, service and giving. And the vision that Philanthropy Australia has set – A giving and caring nation – seems much closer.
14
However, history reminds us that economic and financial crises can sow the seeds of deep community division, as was seen in Europe after the Great Depression. Disturbingly, some of these signs are starting to reappear in some European countries today. Fear can be self-fulfilling. As President Franklin D Roosevelt famously remarked in his inauguration speech in 1932, “the only thing we have to fear is fear itself”. So a critical role for philanthropy, especially at this time, must be to build community confidence, resilience and cohesion.
I would therefore like to use this presentation to suggest some priorities for philanthropy at this time. The important role of clear guidelines for foundations was brought home to me in February, in the wake of the Victorian Bushfires, when I read the Council on Foundations guidelines for good disaster grant-making. The Council sets out eight very helpful principles 4 . Some of their priorities, such as do no harm and think beyond the immediate crisis to the long term, clearly apply to optimising philanthropy’s role in responding to the Global Financial Crisis.
Guidelines for All Weather Philanthropy: Passing through the Crisis
So let me put forward, as a pragmatic contribution, some possible guidelines to assist foundations to pass through the crisis. At the risk of incurring the ire of Rupert Myer who has a particular dislike of what he describes as adjectival props 5 , I have termed these guidelines All Weather Philanthropy. In making these suggestions I am hoping to add some new energy and edge to the conversations that started at the Conference last October so that together we can build a stronger philanthropic sector.
First, philanthropy must always ensure that it does no harm. In the current environment, this implies neither over-stretching already strained organisations nor over-committing, because withdrawing from funding arrangements can leave non-profit partners with an unfinished project and, possibly, the need to lay-off staff.
4
Council on Foundations, 2007, Disaster Grantmaking: A Practical Guide for Foundations and Corporations
Rupert Myer, March 2009,The Unique Value of Philanthropy – What is the Value Proposition for Philanthropy?, Philanthropy New Zealand Conference, Passion Pragmatism Possibilities
5
15
Second, philanthropy is built for running marathons, not sprints or relays, where projects are started and then abandoned or passed from one foundation to another. In the current environment other foundations are much less likely to take up the baton than in recent years.
Third, philanthropy should provide an automatic stabiliser effect through the economic cycle, as new wealth is transformed into perpetual foundations in the good times and then dispersed as the cycle weakens. However, it is the role of governments to manage total demand through their fiscal and monetary policies and this is not the purpose of philanthropy.
Fourth, foundations should aim to at least maintain and ideally grow their real incomes over time and to maximise philanthropy’s other resources – time, information, goods and services, voice and influence – because these additional attributes contribute to making philanthropy distinctive.
Fifth, philanthropy should take carefully calculated risks, so as to be a source of innovation, creativity, leverage and sustained impact. In the current environment projects which create efficiencies as well as greater effectiveness and are supported by durable organisations should come to the fore.
Sixth, philanthropy should address underlying causes rather than symptoms, while never losing its generosity and compassion towards those people who fall through government safety nets through no fault of their own.
Finally, philanthropy must always act as a catalyst to sustain, nurture and build community confidence, resilience and cohesion. In doing so, it is essential in the current environment that we put aside our own fears and show leadership, courage and wisdom, so that the community can draw maximum strength from philanthropy.
Thanks and Conclusion
In closing, there are a number of people and organisations I would like to thank.
16
First, I would like to thank our celebrated Patrons and Leading Members: Sir Gustav Nossal, Lady Southey, the AMP Foundation, the ANZ Banking Group, the Colonial Foundation, the Goldman Sachs/JB Were Foundation, The Myer Foundation and the William Buckland Foundation. Each of these foundations, their trustees and our patrons give generously to Philanthropy Australia and I wish to thank you all most sincerely. It is also appropriate to acknowledge The Ian Potter Foundation at this time, for its many years of support as a Leading Member.
Second, I wish to thank my fellow Council Members for your generous contributions to the achievements of the past year. In particular I would like to thank David Ward for writing the Trustee Handbook and for his contributions to a number of policy papers.
Third, thanks on behalf of us all go to Gina Anderson and her team. Gina’s leadership, dynamism and skills at building relationships have enabled Philanthropy Australia to influence key trends and national events at a time of major changes.
Finally, in conclusion, in the past year Philanthropy Australia has responded adroitly as the Australian economy has moved sharply from strong growth to recession, the Global Financial Crisis has triggered the Great Recession and the Federal government has embarked on a major reform agenda. The benefits of the Strategic Plan adopted two years ago have been clear, as its framework has been flexible enough to respond to these very different conditions.
Looking ahead, there will undoubtedly be new challenges, new opportunities and new uncertainties for philanthropy and Philanthropy Australia. For Philanthropy Australia, the representations we make on your behalf will have a very high priority as the Government sets a new regulatory framework for Prescribed Private Funds and Trustee Companies, reviews the dividend imputation system as part of its consideration of Australia’s Future Tax System and examines the Contributions of the Non Profit Sector through the Productivity Commission.
However, I am confident that Philanthropy Australia will continue to build on its successful track-record, because the organisation has the capacity to respond very
17
effectively and together with each of you, our Members, we will create a more civil society through philanthropy.
Thank you very much.
Bruce Bonyhady 30 April, 2009
18