Employment strategies and regional development strategies are vehicles for generating new ideas, however, the challenge of implementation is ubiquitous. Many of these ideas could benefit from kick-start funding; the sources of such funding are limited and it is therefore worth considering approaching Trusts and Foundations.

WHAT ARE TRUSTS AND FOUNDATIONS?
The first Charitable Trusts were established in Australia in the late 1890s. It has been estimated that there are probably around several thousand Charitable Trusts and Foundations in Australia, 85% of them based in Victoria. Charitable Trusts and Foundations distribute millions of dollars each year to education, the arts, welfare, health, the environment and medical research with 18 trusts and foundations each donating more than $1million annually.

Philanthropic organisations fall into the following categories:
Private Foundations
These Trusts and Foundations have usually been set up by an individual often through a bequest although in some cases they have been established while the donor is still living.

If set up through a bequest they are administered by a trustee or trustees who distribute grants on an annual basis in accordance with the donor's wishes. Many are limited to a particular geographic area such as a state or region and some can only make grants to charitable organisations which have been granted tax deductible status by the Australian Tax Office.
Among the private foundations in Australia are
•    The Ian Potter Foundation,
•    The R.E. Ross Trust and
Family Foundations
These are private Foundations which have been established by one family. They are either run by family members or managed by members of the original donor's family with, in some cases, second or third generation descendants serving as trustees or directors on a voluntary basis.
The Myer Foundation, the Stegley Foundation and The Lance Reichstein Charitable Foundation are family.
Many private Charitable Trusts and Foundations are managed in Australia by Trustee companies. Trustee companies are corporations that are legally authorised to serve as trustees, as executors or administrators of estates, or as guardians of the property of minors or people requiring assistance to manage their own financial affairs. Trustee companies offer a structure through which the wishes of the donor can be carried out as instructed in perpetuity. Generally the Trustee company is assisted by advisory committees of people with a commitment to philanthropy. These committees advise the Trustee on the distribution of funds to qualifying charitable organisations. Examples of Trustee companies are:
•    ANZ Trustees,
•    National Australia Trustees Limited,
•    Perpetual Trustees Australia Limited and
•    Permanent Trustee Company Limited.
Community Foundations
Community Foundations are a relatively new concept in Australia. They build their endowments through contributions from a number of donors and direct their grants to a defined geographic area such as a town, region or state. Community Foundations are usually governed by a board of private citizens chosen to be representative of the public interest and for their knowledge of the community.
Australia now has four community foundations:
•    the Queensland Community Foundation,
•    the Tasmanian Community Foundation,
•    the Victorian Community Foundation and
Corporate Foundations
Some companies have established Charitable Foundations which are legally separate from the parent company. They are often set up with an initial endowment and receive staff contributions and/or contributions from company profits on a regular basis. Company-sponsored foundations are different from corporate giving programs which give grants direct to charities and are usually administered through the company's corporate affairs or public relations department.
Corporate Giving
While there are only a few corporate foundations in Australia, compared to a country such as the U.S., it is estimated that just over a quarter of the 'philanthropic dollar' in Australia comes from corporate sources. An increasing number of companies are entering into partnerships with community organisations as well as providing sponsorship for traditional areas such as sport and the arts. Companies with a clearly defined and committed corporate giving program include:
•    The Body Shop,
•    the Macquarie Bank,
•    Rio Tinto and
Government Initiated Foundations
A number of Trusts and Foundations have been established in Australia as a result of government intervention and regulatory amendments. Examples of Trusts and Foundations established in this way are:
•    the Victorian Health Promotion Foundation - established with a levy on cigarette sales;
•    the Australian Youth Foundation and the Australian Multicultural Foundation - both established with a grant from the federal government to mark Australia's Bicentennial celebrations;
•    and the Victorian Women's Trust established with a $1million grant from the Victorian Government during its 150 year celebration.
The Law Foundation of S.A. Inc and the Law Foundation of N.S.W. have been formed as a result of government regulation. A percentage of the interest payable on moneys held in trust by solicitors on behalf of their clients is required to be deposited in an account and the interest is applied to the Foundations and used to enhance the application of the Law in each state.

PRIMARY AND SECONDARY USES
Trusts and Foundations can be used to finance necessary community initiatives.
Working with Trusts and Foundations creates new networks and partnerships.

HOW IT WORKS
The key for employment strategists is to examine their employment or regional development strategies and to identify those projects which are possibly suitable for funding.

These types of projects will be ones such as community benefit projects, ones that either target disadvantaged people, target the environment or target the Arts. They will not usually be projects which have a strong commercial bias.

Having identified these projects, the next step is to identify local community bodies who could act s the host for these projects. It then is worth considering identifying somebody who can assist these groups apply for funding.

APPLYING FOR FUNDS
The process of applying for funds from a Charitable Trust or Foundation is distinctly different from applying to government or the corporate sector.

While there is a clear factor of determining the correct relationship between an organisation's project and the intent and purpose of the Trust, other aspects are equally important.

Charitable Trusts and Foundations differ and applicants should consider which structure is more appropriate The legal structures of Trusts and Foundation differ and so will the reporting requirements for the applicant and the Trustees.

Another major consideration is whether the trust is discretionary or non-discretionary. While it might appear that the objectives of a Trust match the objectives of an organisation, the Trustees might only be empowered to grant funds to named beneficiaries in a Will or Deed establishing the Trust.

Applicants should inquire whether there are application forms and guidelines for the Trust. Some Trusts do not have application forms but do have a procedure which they want applicants to follow, while other trusts request that an applicant forward a letter setting out the nature of the request. If the Trustees feel the information matches their objectives (or priorities) an organisation is then invited to apply.

There following points should be stressed:
•    Trusts vary greatly, and there is no single formula that will guarantee success.
•    Common sense and perseverance are essential qualities in approaching trust.
•    At all times you should be thinking of developing a partnership with trusts rather than begging for help.

PREREQUISITES

Preparation and Planning
 
If you spend time on proper planning, the other aspects of fund-raising will follow logically.

A fund-raising strategy should be an integral part of the strategy for the development of your organisation as a whole. Planning this involves a series of logical steps:
    Clarify the problem or the need that is to be met.
    Define the aims and objectives of the project.
    Decide on the methods to achieve the aims.
    Draw up short-term and long-term plans.
    Prepare a financial budget (cost the plans).
    Identify possible sources of funds.
It is a good idea to involve your whole organisation in this process as far as possible.

Raising money, especially from trusts, can be a slow process, so start your efforts in good time. Good planning will help to ensure you raise money when you need it. Don't make the mistake of waiting until you're in a crisis and then trying to raise money. Decide what you're going to do and then raise money for that. Don't work the other way around

Defining Your Project
It is important to have a good project to take to trusts. You should be clear about the need you are meeting, who will be the beneficiaries, and be able to state this clearly.
Do not assume others will understand what the need is, Spell it out.
Most trusts prefer to support a specific project and they tend not to like contributing to on-going running costs or to topping up government grants. If you are a large organisation, it can pay to break your work into convenient projects.

Many trusts like projects which are new, imaginative and innovative; however, this isn't always the case, especially with trusts with a very specific remit which may support the same organisation over a long period.
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Often trusts like projects that will be monitored and which will produce reports. In this way others can benefit from the experience, or the success of the project might influence government policies. This process is an integral part of trust being interested in new and pioneering work.
In defining your project remember that the project is the product you are selling. However well this product is packaged, you are only likely to be successful if it is a good project.

Selecting your Targets
There are very many trusts and it is important to recognise that they do not form a homogeneous group.
Some are large, some are small; some are public, some are private; some creative, some are conservative; some take risks, some play safe; some employ staff, some do not. Only a few of them are likely to be interested in your work.
Thus it is important to research carefully into their policies, their size, and how they like to deal with applicants (where such information is available). This is vital if you're not going to waste a lot of time/money/paper in making pointless applications.
Your researches will lead you to discard most trusts. Of those remaining there will be two main categories. This first will comprise of a few large trusts with clear policies, the second will be a larger list of those that are worth a try but not worth spending too much time on. Your type of approach is likely to vary with each category.
Critical information to learn before approaching trusts includes the following:
•    Their policies and priorities;
•    Size of their Grants;
•    Who they have supported in your geographic area;
•    Areas of interest;
•    If they are accessible and who to contact, when they make decisions;
•    If you know their staff or trustees.
Building Your Credibility
As well as convincing the trust that your project is worthwhile and a priority, you must also convince them that your organisation is well-equipped to carry it out.
Working Out Your Budget
In preparing a budget remember the following points:
•    Allow for all your costs. If you forget a particular item, you will not have the money to pay for it.
•    Break your costs down into capital costs (equipment, premises, vehicle); and running costs like rent, telephone, salaries.
•    Estimate your costs realistically. Do research where necessary. Some Trusts may ask for quotes.
•    For long-term projects estimate your needs over time. Budget for how much you will need not just in the first year, but also in subsequent years. This will enable you to establish long term plans for getting support for this project.
•    Make allowances for inflation.
Presenting your Application
Presentation is very important. Raising money from trusts is a very competitive business. Trusts receive thousands of applications, and the situation is getting worse. The majority of applications they receive are turned down.
When writing your application, be concise. You must get your basic message over in as short a space as possible. Trustees will not have time to read detailed documents about every project. However, where the trust has a full-time secretary of director, he may be able to look at more detailed documentation. Thus a one or two page letter plus supporting documents is the best formula. In this you should convey clearly, without using jargon, exactly what you want to do and why. Don't forget to provide evidence of the need for your project.

HOW TO START

Personal Contact and a Developing Relationship
In all types of fund-raising a personal  approach is normally the best, however this isn't always possible. For instance, some trusts won't meet applicants. The more you can make personal contact the better the chance of establishing a sense of partnership and common purpose.

There are different ways of developing contact. Only the larger trusts employ full-time (or part-time) staff to deal with applicants. For smaller trusts a personal contact with a trustee can be important.
•    For the larger trusts, most do not like phone calls out of the blue from new applicants and they prefer to deal on the basis of a written application.
You can choose to send a full application, or just an outline of your project and what is involved.

In either case you can then suggest that they come and see your project or request a meeting with the trust when you can present your case.
If you don't know the trust, you may be able to get a personal introduction from an intermediary who knows your work and is respected by the trust.
Be careful to listen to the advice they give. It is very irritating for a trust to spend time talking about a project to people who then make a formal application for something that they have been told is outside the trust's priorities.

In summary:

• Plan a strategy
• Plan ahead
• Select a good project
• Believe in what you are doing
• Select a target
• Write an application tailored to the needs of the trust you are approaching
• Use personal contact
• Prepare a realistic and accurate budget for the project
• Be concise
• Be specific
• Establish your credibility
• Keep records of everything you do
• Send reports and keep trusts informed
• Try to develop a partnership or long-term relationship
• Say Thank-you
• Send all attachments requested (eg. annual reports, proof of tax status         

WEAKNESSES
Trusts and Foundations have a specific agenda which is the reason for their existence. This agenda might not coincide with the aims of your project; this presents a dilemma which ,many organisations face with all sorts of funding options - do they change their project to apply for funds anyway?

It is very pure and sound to answer this question negatively, to say that the integrity of the project is paramount and that it will not be changed.

In reality this rarely occurs. The choice is often between no project at all or one that is modified from the original concept.

WARNINGS
If faced with the choice of fitting the project to the funding, it is important to realistically assess how far of the main course this project is. Few Trusts or Foundations are prepared to give operational funding grants. This means that the applicant organisations have to bear some administrative costs. It is important not to be dollar-dazzled and assess the cost/benefit of the project pragmatically.


In applying the things to be wary of are;
1.    Sending a duplicated mail shot
2.    Asking for unrealistic amounts
3.    Assuming trusts will immediately understand the need you are meeting
4.    Making general appeals for running costs
5.    Using jargon
6.    Begging


INFORMATION RESOURCES

Philanthropy Australia has a publication on Australian Trusts and Foundations which it is worth investing in.
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Philanthropy Australia
Level 3, 111 Collins Street,
Melbourne, Victoria, 3000
AUSTRALIA
Phone: +61 3 9650 9255
Fax: +61 3 9654 8298
E-mail: pa@philanthropy.org.au

Website: http://www.philanthropy.org.au/history/history.ht