Solid investment returns strengthen community trust

24 August 2015
Solid investment returns strengthen community trust

Strong investment returns have provided a $14.4 million net profit for the Eastern and Central Community Trust in the financial year ending March 2015 compared to $2.6 million the previous year.

The turnaround is a result of strong equity markets and a changed investment strategy two years ago.

A total of $5.2 million has been distributed to hundreds of community groups throughout its coverage zone of Gisborne, Hawke’s Bay, Tararua, Manawatu, Wairarapa and Horowhenua, up from $4.6 million on 2014 results.

“The trustees are acutely aware that these strong financial returns will inevitably adjust and it continues to build donation reserves to ensure it is able to make consistent and regular grants to our communities even in years when our investments might produce negative returns,” says Chairman Geoff Milner of Gisborne.

Plans for the future include the trust working more collaboratively with partners and with groups to make the best use of the resources available.

“Support of grassroots community groups will continue, and we’ll be working with groups that identify community need and show a commitment to helping themselves,” says Mr Milner.

New initiatives include streamlining the trust’s online application process to ensure more consistency in information provided by applicants and investigating strategies so that the trust becomes more than just a distributor of donations. Investigations cover social lending to help community groups achieve long term goals, guarantees against loss caused by adverse conditions to give security to those running community events, helping organisations became more self-sustainable by improving governance, financial and volunteer management and multi-year funding.

The 2015 Annual Public Meeting is being held at the Palmerston North Convention Centre, Wednesday 26 August with an opportunity for community groups to meet with trustees from 5pm, with the formalities beginning at 6pm.

2015 highlights:
$5.2 million donations
$100 million given since establishment in 1988
$18.4 million held in reserves
Key donation sectors
28% Sport and Recreation
28% Community Facilities
12% Community Wellbeing
12% Youth
9% Education
11% Arts and Culture, Health, Environment and Heritage

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