Kiwi Generosity Remains at Higher Post-Earthquake Levels

Media Release December 2015

KIWI GENEROSITY REMAINS AT HIGHER POST-EARTHQUAKE LEVELS,
NEW GIVING REPORT SHOWS

GIVING HAS DOUBLED SINCE 2006; 55% OF ALL GIVING IS PERSONAL; BEQUESTS ARE UP 29% AND BUSINESS GIVING DOWN 22%

New Zealanders have maintained the outpouring of generosity sparked by the Christchurch earthquakes, according to Giving New Zealand: Philanthropic Funding 2014. The report, based on research commissioned by Philanthropy New Zealand and carried out by BERL with sponsorship from Perpetual Guardian, has found that total giving in 2014 was almost identical to the revised estimate for 2011 – $2.788 billion in 2014 compared with $2.789 billion in 2011.

Giving New Zealand is updated every four to five years and provides a snapshot of philanthropic giving and associated trends during a single financial year. It measures giving in three main areas: personal giving, giving by trusts and foundations, and giving by corporations and businesses.

The last report, Giving New Zealand 2011, found that, thanks to a massive spike in giving prompted by the Christchurch earthquakes, total giving in New Zealand in 2011 was double that of 2006.

Philanthropy New Zealand chief executive Liz Gibbs says it would have been easy for New Zealanders to scale back their giving following the earthquakes. However, the findings of Giving New Zealand 2014 show that did not happen. Instead, we continued to give at the same level.

“Our response to the quakes set the generosity bar very high – we opened up our hearts, our homes and our wallets for those whose lives were devastated by the earthquakes,” she says. “So it’s pleasing to find that total giving during 2014 was almost identical to total giving during 2011 – despite the lack of a natural disaster to prompt our generosity.”

As in 2011, Giving New Zealand 2014 identified personal giving as the largest component of all giving (55%), followed by giving by charitable trust and foundations (42%), with businesses contributing the remaining 3%.

The report has highlighted some interesting changes within these categories. For example, total personal giving – which is made up of individual donations and bequests – has fallen by an overall 1% ($16.1 million) since 2011. But while individual donations fell by 4%, the amount given through bequests increased by 29% – from $122 million in 2011 to $157 million in 2014.

Giving by charitable trusts and foundations has increased by 3% since 2011, with most of the increase coming from giving from statutory trusts such as community trusts, energy trusts and the Lotteries Grants Board.

The biggest fall between the two years has been in business giving – from an estimated $98.6 million in 2011 to $77.2 million in 2014, a fall of 22%. Ms Gibbs says this is likely attributable to the “Christchurch effect”. “We know businesses gave an additional $20 million immediately following the earthquakes, and it seems they have not maintained the level of giving.”

She says it’s important to note that while the amount of cash businesses give is relatively small, they are generous in other ways. Data from the Giving New Zealand survey suggests that for every $1 recipients received in cash from businesses they received another $1.43 in sponsorship and another $3.27 in in-kind giving (such as goods and services).

“This is the first time Giving New Zealand has looked at non-cash giving by businesses, and it suggests many of them prefer this kind of giving to cash giving.”

Philanthropist Andrew Barnes, the Managing Director of Perpetual Guardian, says it’s clear that the Canterbury earthquakes changed the New Zealand philanthropic sector for the better.

“It’s striking that the same higher level of giving has been maintained over several years, and the findings of Giving New Zealand 2014 are consistent with those of this year’s World Giving Index, which ranked New Zealand third for generosity, behind only Myanmar and the United States and up from fifth place in 2014. Based on our work in the sector, a strong trend is the wish of individual givers to have more control over their giving and more certainty that their donations will have the direct benefits they intend.

“The onus is on those of us who provide philanthropy services to make giving easier, and to this end we have established the Perpetual Guardian Foundation, Giving@Perpetual Guardian and Payroll Giving, the latter of which gives salaried workers a quick and effective means of donating to charity. Perpetual Guardian is matching each of its employees’ donations dollar for dollar, and this may be an option for other companies wanting to help reverse the decline in business giving that Giving New Zealand 2014 has identified.”

ends

About Giving New Zealand
Giving New Zealand is commissioned by Philanthropy New Zealand and carried out by BERL (Business Economic Research Limited).

It is the only research of its kind in New Zealand, and is updated every four to five years to provide a snapshot of philanthropic giving during a single financial year.

All the data used for the Giving New Zealand 2014 report is for the year ended June 2014 (unless that data was not available, in which case it was for the year ended June 2013).

The report is based on a survey of both grantmakers and grant recipients, as well as secondary sources such as annual reports and financial statements, and returns to the Inland Revenue Department.

A total of 424 grantmakers and 847 grant recipients provided responses to the survey.
This data was aggregated with data from the secondary sources to derive a set of estimates for personal, trust and foundation, and business giving. These estimates were then summed to a single dollar value for total giving in New Zealand in 2014.

About Philanthropy New Zealand
Philanthropy New Zealand is a membership organisation which provides thought leadership and practical help for everyone with an interest in giving to make the world a better place. Our members include private philanthropists; family, community and corporate foundations; and iwi and community trusts. www.giving.org.nz

About Perpetual Guardian
New Zealand’s leading statutory trust business, Perpetual Guardian, was created with the recent coming together of Perpetual Trust and Guardian Trust. As two of New Zealand’s oldest trustee companies, they have over 130 years of experience in providing estate planning, philanthropy and corporate trustee services to New Zealand individuals, families and companies.
The experience and reputation of Guardian Trust have made the company the preferred provider of corporate trustee services for many of New Zealand’s leading corporations, financial institutions, fund managers and banks. Guardian Trust proactively monitors the obligations of its clients to their investors in a commercial and pragmatic manner and with regard to its duties at law, including the provisions of the relevant trust deed. As a statutory supervisor and corporate trustee, Guardian Trust has over $110 billion in assets under supervision.
In the private client services sector, Perpetual Guardian’s mission is to ensure that every New Zealander who should have a Will has a Will, by making them affordable and accessible to everyone. All consultants are specialists in their field; for example, client managers are experts in tailoring a solution that fits clients’ needs, using well-crafted Wills, Trusts, EPAs and other legal structures. Perpetual Guardian helps to preserve all that clients have worked for, by ensuring their wishes are carried out.
As the country’s pre-eminent provider of philanthropic services, Perpetual Guardian manages over 650 charitable foundations and through these gives away in excess of $40 million each year. The company offers strategic advice, long-term investment management, careful planning and a commitment to ensuring that people’s generosity is effectively sustained over many lifetimes.

The charitable distributions from trusts established by Perpetual Guardian and its clients touch all facets of life. They provide services and support to New Zealanders from the very young to the sick and elderly, and encompass sectors ranging from education to medical research.

Perpetual Guardian continues to innovate in its industry by creating digital solutions that will make Perpetual Media Release December 2015

KIWI GENEROSITY REMAINS AT HIGHER POST-EARTHQUAKE LEVELS, NEW GIVING REPORT SHOWS

GIVING HAS DOUBLED SINCE 2006; 55% OF ALL GIVING IS PERSONAL; BEQUESTS ARE UP 29% AND BUSINESS GIVING DOWN 22%

New Zealanders have maintained the outpouring of generosity sparked by the Christchurch earthquakes, according to Giving New Zealand: Philanthropic Funding 2014. The report, based on research commissioned by Philanthropy New Zealand and carried out by BERL with sponsorship from Perpetual Guardian, has found that total giving in 2014 was almost identical to the revised estimate for 2011 – $2.788 billion in 2014 compared with $2.789 billion in 2011.

Giving New Zealand is updated every four to five years and provides a snapshot of philanthropic giving and associated trends during a single financial year. It measures giving in three main areas: personal giving, giving by trusts and foundations, and giving by corporations and businesses.

The last report, Giving New Zealand 2011, found that, thanks to a massive spike in giving prompted by the Christchurch earthquakes, total giving in New Zealand in 2011 was double that of 2006.

Philanthropy New Zealand chief executive Liz Gibbs says it would have been easy for New Zealanders to scale back their giving following the earthquakes. However, the findings of Giving New Zealand 2014 show that did not happen. Instead, we continued to give at the same level.

“Our response to the quakes set the generosity bar very high – we opened up our hearts, our homes and our wallets for those whose lives were devastated by the earthquakes,” she says. “So it’s pleasing to find that total giving during 2014 was almost identical to total giving during 2011 – despite the lack of a natural disaster to prompt our generosity.”

As in 2011, Giving New Zealand 2014 identified personal giving as the largest component of all giving (55%), followed by giving by charitable trust and foundations (42%), with businesses contributing the remaining 3%.

The report has highlighted some interesting changes within these categories. For example, total personal giving – which is made up of individual donations and bequests – has fallen by an overall 1% ($16.1 million) since 2011. But while individual donations fell by 4%, the amount given through bequests increased by 29% – from $122 million in 2011 to $157 million in 2014.

Giving by charitable trusts and foundations has increased by 3% since 2011, with most of the increase coming from giving from statutory trusts such as community trusts, energy trusts and the Lotteries Grants Board.

The biggest fall between the two years has been in business giving – from an estimated $98.6 million in 2011 to $77.2 million in 2014, a fall of 22%. Ms Gibbs says this is likely attributable to the “Christchurch effect”. “We know businesses gave an additional $20 million immediately following the earthquakes, and it seems they have not maintained the level of giving.”

She says it’s important to note that while the amount of cash businesses give is relatively small, they are generous in other ways. Data from the Giving New Zealand survey suggests that for every $1 recipients received in cash from businesses they received another $1.43 in sponsorship and another $3.27 in in-kind giving (such as goods and services).

“This is the first time Giving New Zealand has looked at non-cash giving by businesses, and it suggests many of them prefer this kind of giving to cash giving.”

Philanthropist Andrew Barnes, the Managing Director of Perpetual Guardian, says it’s clear that the Canterbury earthquakes changed the New Zealand philanthropic sector for the better.

“It’s striking that the same higher level of giving has been maintained over several years, and the findings of Giving New Zealand 2014 are consistent with those of this year’s World Giving Index, which ranked New Zealand third for generosity, behind only Myanmar and the United States and up from fifth place in 2014. Based on our work in the sector, a strong trend is the wish of individual givers to have more control over their giving and more certainty that their donations will have the direct benefits they intend.

“The onus is on those of us who provide philanthropy services to make giving easier, and to this end we have established the Perpetual Guardian Foundation, Giving@Perpetual Guardian and Payroll Giving, the latter of which gives salaried workers a quick and effective means of donating to charity. Perpetual Guardian is matching each of its employees’ donations dollar for dollar, and this may be an option for other companies wanting to help reverse the decline in business giving that Giving New Zealand 2014 has identified.”

ends

About Giving New Zealand

Giving New Zealand is commissioned by Philanthropy New Zealand and carried out by BERL (Business Economic Research Limited).

It is the only research of its kind in New Zealand, and is updated every four to five years to provide a snapshot of philanthropic giving during a single financial year.

All the data used for the Giving New Zealand 2014 report is for the year ended June 2014 (unless that data was not available, in which case it was for the year ended June 2013).

The report is based on a survey of both grantmakers and grant recipients, as well as secondary sources such as annual reports and financial statements, and returns to the Inland Revenue Department.

A total of 424 grantmakers and 847 grant recipients provided responses to the survey.

This data was aggregated with data from the secondary sources to derive a set of estimates for personal, trust and foundation, and business giving. These estimates were then summed to a single dollar value for total giving in New Zealand in 2014.

About Philanthropy New Zealand

Philanthropy New Zealand is a membership organisation which provides thought leadership and practical help for everyone with an interest in giving to make the world a better place. Our members include private philanthropists; family, community and corporate foundations; and iwi and community trusts. www.giving.org.nz

About Perpetual Guardian

New Zealand’s leading statutory trust business, Perpetual Guardian, was created with the recent coming together of Perpetual Trust and Guardian Trust. As two of New Zealand’s oldest trustee companies, they have over 130 years of experience in providing estate planning, philanthropy and corporate trustee services to New Zealand individuals, families and companies.

The experience and reputation of Guardian Trust have made the company the preferred provider of corporate trustee services for many of New Zealand’s leading corporations, financial institutions, fund managers and banks. Guardian Trust proactively monitors the obligations of its clients to their investors in a commercial and pragmatic manner and with regard to its duties at law, including the provisions of the relevant trust deed. As a statutory supervisor and corporate trustee, Guardian Trust has over $110 billion in assets under supervision.

In the private client services sector, Perpetual Guardian’s mission is to ensure that every New Zealander who should have a Will has a Will, by making them affordable and accessible to everyone. All consultants are specialists in their field; for example, client managers are experts in tailoring a solution that fits clients’ needs, using well-crafted Wills, Trusts, EPAs and other legal structures. Perpetual Guardian helps to preserve all that clients have worked for, by ensuring their wishes are carried out.

As the country’s pre-eminent provider of philanthropic services, Perpetual Guardian manages over 650 charitable foundations and through these gives away in excess of $40 million each year. The company offers strategic advice, long-term investment management, careful planning and a commitment to ensuring that people’s generosity is effectively sustained over many lifetimes.

The charitable distributions from trusts established by Perpetual Guardian and its clients touch all facets of life. They provide services and support to New Zealanders from the very young to the sick and elderly, and encompass sectors ranging from education to medical research.

Perpetual Guardian continues to innovate in its industry by creating digital solutions that will make Perpetual Guardian the first choice of New Zealanders seeking to protect their legacy. The company has offices nationwide, with over 140,000 Will relationships and the administration or supervision of assets valued at over $100 billion.

About Andrew Barnes

“The time for change is now”: Andrew Barnes is no stranger to industry transformation.

With a track record of market-changing innovations and the digitising of various industries, Andrew identified the opportunity for the evolution of real estate in Australia, and was chairman of realestate.com.au at the time of its IPO on the ASX.

More recently, in New Zealand, Andrew triggered a revolution of the entire fiduciary services and legal services industries, and the transformation he is leading as the managing director of Perpetual Guardian has positive implications both locally and globally. Perpetual Guardian was formed under Andrew’s leadership through the coming together of Perpetual Trust and Guardian Trust, two trustee companies with more than 130 years’ history between them. In the past two years Perpetual Guardian has returned to a pure fiduciary services model that engages with Kiwis and provides services through a variety of platforms.

Andrew is a director of Complectus Limited, the company encompassing Perpetual Guardian and several other trustee businesses, and the chairman and a non-executive director of Perpetual Trust Limited. In September 2015, Grant Kemble became CEO of Complectus, assuming day-to-day responsibility for the company’s operations and freeing up time for Andrew, who remains MD, to pursue a range of entrepreneurial and philanthropic ventures within Coulthard Barnes, of which he is the director.

Coulthard Barnes has three divisions, the first being Coulthard Barnes Capital, which oversees Complectus. Alongside Complectus within Coulthard Barnes Capital is Kowhiri, the business housing and developing digital assets such as ewills.co.nz and willtolive.co.nz, and Postage Stamp / Delamore Estates, a wine and primary industry business that Andrew, a dedicated oenophile and wine collector, is cultivating from his base on Waiheke Island.

The second and third divisions of Coulthard Barnes are focused on the development and purchase of complementary enterprises to the Coulthard Barnes Capital entities. Coulthard Barnes Ventures, which is based on Andrew’s Australian venture capital experience, will invest in and support emerging fintech businesses, and Coulthard Barnes Property is the holding company for Andrew’s commercial property assets.

As a philanthropist, Andrew is directing the expansion of Perpetual Guardian’s long-standing philanthropy service by creating vehicles that encourage Kiwis into long-term charitable giving at a level they can afford. He personally funds a number of charitable causes and provided seed funding for the Perpetual Guardian Foundation, which he describes as ‘crowdfunding for charities’. Andrew is exploring potential involvement in the emerging market for social bonds in New Zealand, and in 2015 he led Perpetual Guardian’s sponsorship of the Superdiversity Stocktake, the inaugural analysis of the implications of an ethnically superdiverse New Zealand for business, government and citizens.

Andrew was previously a director and founder of Just Wills Holdings Limited, a UK-based will writing and estate planning business. Before that he was CEO of Bestinvest, a US$5.7billion, UK-based investment management and advisory company, leading the sale to private capital in 2007, and was managing director of Australian Wealth Management Limited, a major Australian wealth management and trustee business that he led to IPO in 2005.

Andrew holds an MA from Selwyn College, Cambridge and an ACIB (UK), and has attended the Program for Management Development at Harvard Business School.

Guardian the first choice of New Zealanders seeking to protect their legacy. The company has offices nationwide, with over 140,000 Will relationships and the administration or supervision of assets valued at over $100 billion.

About Andrew Barnes
“The time for change is now”: Andrew Barnes is no stranger to industry transformation.
With a track record of market-changing innovations and the digitising of various industries, Andrew identified the opportunity for the evolution of real estate in Australia, and was chairman of realestate.com.au at the time of its IPO on the ASX.
More recently, in New Zealand, Andrew triggered a revolution of the entire fiduciary services and legal services industries, and the transformation he is leading as the managing director of Perpetual Guardian has positive implications both locally and globally. Perpetual Guardian was formed under Andrew’s leadership through the coming together of Perpetual Trust and Guardian Trust, two trustee companies with more than 130 years’ history between them. In the past two years Perpetual Guardian has returned to a pure fiduciary services model that engages with Kiwis and provides services through a variety of platforms.
Andrew is a director of Complectus Limited, the company encompassing Perpetual Guardian and several other trustee businesses, and the chairman and a non-executive director of Perpetual Trust Limited. In September 2015, Grant Kemble became CEO of Complectus, assuming day-to-day responsibility for the company’s operations and freeing up time for Andrew, who remains MD, to pursue a range of entrepreneurial and philanthropic ventures within Coulthard Barnes, of which he is the director.
Coulthard Barnes has three divisions, the first being Coulthard Barnes Capital, which oversees Complectus. Alongside Complectus within Coulthard Barnes Capital is Kowhiri, the business housing and developing digital assets such as ewills.co.nz and willtolive.co.nz, and Postage Stamp / Delamore Estates, a wine and primary industry business that Andrew, a dedicated oenophile and wine collector, is cultivating from his base on Waiheke Island.
The second and third divisions of Coulthard Barnes are focused on the development and purchase of complementary enterprises to the Coulthard Barnes Capital entities. Coulthard Barnes Ventures, which is based on Andrew’s Australian venture capital experience, will invest in and support emerging fintech businesses, and Coulthard Barnes Property is the holding company for Andrew’s commercial property assets.

As a philanthropist, Andrew is directing the expansion of Perpetual Guardian’s long-standing philanthropy service by creating vehicles that encourage Kiwis into long-term charitable giving at a level they can afford. He personally funds a number of charitable causes and provided seed funding for the Perpetual Guardian Foundation, which he describes as ‘crowdfunding for charities’. Andrew is exploring potential involvement in the emerging market for social bonds in New Zealand, and in 2015 he led Perpetual Guardian’s sponsorship of the Superdiversity Stocktake, the inaugural analysis of the implications of an ethnically superdiverse New Zealand for business, government and citizens.

Andrew was previously a director and founder of Just Wills Holdings Limited, a UK-based will writing and estate planning business. Before that he was CEO of Bestinvest, a US$5.7billion, UK-based investment management and advisory company, leading the sale to private capital in 2007, and was managing director of Australian Wealth Management Limited, a major Australian wealth management and trustee business that he led to IPO in 2005.

Andrew holds an MA from Selwyn College, Cambridge and an ACIB (UK), and has attended the Program for Management Development at Harvard Business School.

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