Community group funds allow charities or community groups to start their own endowment fund within the Aoraki Foundation.
Foundation chief executive Richard Spackman said an endowment fund was one where a gift/donation was invested and the income from that gift was given out each year to support the charity/group.
Mr Spackman said it was a way of turning a capital sum into ongoing income forever.
In the first few months, three charities had already started their own Community Group Fund — Multiple Sclerosis South Canterbury, Age Concern South Canterbury and the Canterbury West Coast Air Rescue Trust (Westpac Helicopter).
"These charities are all looking to build a sustainable funding stream to meet their ongoing operational costs."
The catalyst for Multiple Sclerosis to start a fund was the sale of a long-held property in King St. When the committee at the time were faced with managing the proceeds of the sale, they were nervous.
As treasurer Barry Taylor said, "The problem when you have a lump-sum of money sitting there, is the concern that over time it will trickle away, and you’ll have none left. Instead, we’d love to see it grow."
Their solicitor referred them to speak with the Aoraki Foundation and after working through the options they soon knew a community group fund in their own name was the best place for the money.
Mr Taylor said the capital was now securely invested and Multiple Sclerosis was encouraging their supporters to contribute to the fund with donations or via a gift in their will.
"As a small charity we didn’t have the resources to start a bequest programme, but the professional management of the Aoraki Foundation provides our supporters peace of mind that their gift will continue to support Multiple Sclerosis within South Canterbury for many years to come."
Mr Spackman said local charities were doing it tough at present.
"Operating costs have risen dramatically over the past three years and public funding just can’t keep up. This is why we are motivated to help charities develop an enduring funding stream from the generosity of their supporters.
"Establishing a community group fund is really easy and best of all there are no costs to the charity, as we do all the administration and compliance."
