Innovative investment is paying off for youth charities

Nearly 10 years after its inception, Future Generation’s philanthropic model involves carving off a small slice (1%) of its $1 billion asset base each year for charities.

It is expected to comfortably reach a $100 million funding milestone by 2030.

While the primary purpose of the fund is to make money for shareholders – and by recent reports it appears to be doing so handsomely – a significant secondary purpose is to help charities, with the focus on supporting children and youth at risk, and promoting wellbeing and preventing mental ill-health, also for young people.

Each nomination represents a clearly defined promotional campaign, and most involve an event alongside a branding exercise. All but one campaign relied on – or worked with – a professional external company.

The nominations were:

• Clean Up Australia Day (Feature Communications)
• Darwin Aboriginal Art Fair (Bastion Agency)
• Families of Veterans Guild: rebranding one of Australia’s longest-standing veteran community support services (with Sefiani)
• Dying to Know Day 2023: reshaping Australia’s attitude to death, dying and end-of-life planning (Palin Communications and Proveda)
• Sydney Sick Kids Appeal: taking childhoods off hold (Sydney Children’s Hospitals Foundation)
• Vinnies Queensland CEO Sleepout (with Rowland).

Media and communications professionals can deliver a slick and successful campaign package, if a not-for-profit has the desire and the budget. But organisations should not expect help for less than $5,000, and should budget as much as $100,000 for a fully fledged high-profile campaign.

Helping young people get back on track

The funding is helping young people like Chenara, 16, to turn their lives around.

The teen is a beneficiary of the BackTrack program, which received $484,000 from Future Generation for its 2023 program. The charity was founded in Armidale, NSW, and its mission is to do “whatever it takes, for as long as it takes” to keep vulnerable kids alive, out of jail and with a chance of chasing their dreams. The program offers education, training, diversions, accommodation and jobs.

In a case study featured in an impact assessment of Future Generation funding, Chenara revealed she had struggled with a chaotic home life and, after her grandfather died, started getting into trouble at school.

“I went through a lot growing up. My parents fought constantly and their abuse of each other really affected me. In 2022, when my Pop passed away, I stopped being the bright little girl I was. I started to muck up in school, get into fights and even do crime. Nobody was looking out for me, so most nights I stayed on the street or couch-surfed. I was constantly thinking about suicide, and I even tried to end my life more than once. I knew I wasn’t okay and needed help.

“Someone recommended BackTrack, and since then, my whole life has changed. BackTrack makes me feel like I’m appreciated and a part of their family. My favourite part of the BackTrack program is giving back to the community – going to people’s houses and helping with things that they can’t do.”

Feature Communications was appointed as the creative agency for Clean Up Australia Day in late 2022, inheriting the gig run by one of the country’s most recognised, credible and trusted environmental charities.

Clean Up Australia chair Pip Kiernan told Mumbrella at the time of the appointment that Feature Communications had been chosen for its ability to work with national and international brands and for its commitment to environmental causes.

The company’s brief was to build on the brand awareness built since the event was conceived by the late Ian Kiernan AO in 1990.

Sailing in a round-the-world yacht race in the late ’80s, Kiernan was horrified at the rubbish choking the oceans, prompting him to host a Clean Up Sydney Harbour event in 1989, which attracted 40,000 volunteers. That was the spark for the long-running national event, and even a “Clean Up the World” event involving 43 countries.

Event push focused on stories, ambassadors, brand and timing

Feature Communications managing director Lisa Poisel said its work to improve the organisation’s media exposure over the past two years including a focus on “impactful storytelling” and by increasing the support of “passionate influencers and ambassadors”.

After the 2023 event, the company revamped its brand identity. This year the campaign won widespread media coverage, deployed 20 high-profile influencers and supporters, including the Environment Minister Tanya Plibersek who attended the launch and the event itself.

The media release by Feature Communications told how organisers were hoping to exceed the 760,000 volunteers who had “pulled on their gloves” for the iconic day in years past, and add to the 22 million Australians who had gotten involved in the past three decades.

“There were many additional tweaks in our tactical activity and implementation timings for this year’s campaign based on learnings from the previous year, including the release date of Clean Up Australia’s annual litter report data,” Poisel said.

How the funding works

Unlike other impact investors, Future Generation does not invest in impact-related activities such as social enterprises seeking a dual financial return and social benefit. And unlike many corporate models driven by ESG (environmental, social and governance) commitments, the fund doesn’t simply donate a slice of the profits.

Instead, it invests in Australian and global stocks. The trick that enables millions to go to charity is that Future Generation’s fund managers – a roll call of some of the country’s most sought-after investment experts – do their work for nothing.

As a result of that pro bono support, the organisation doesn’t need to pay fees for management, performance, service providers, board members or investment committees. Those savings are redirected into doing good.

Importantly, the commitment to giving away assets means profit fluctuations don’t affect payments, meaning funds for not-for-profits are consistent and can involve multi-year commitments.

Over nearly a decade, Future Generation’s two main investment vehicles have given $87.2 million to charity, including $6.8 million in the 2023 financial year – a sizeable chunk of its 2030 target of $100 million.

The 2024 campaign generating 3625 editorial mentions over a three-month window, including live crosses to breakfast programs, evening news and national, metropolitan and local media in print, online and on radio. Other supporters included large retail companies, environmental protection authorities, recycling advocates, and waste management companies.

She said there were strong advantages of promoting such an “iconic” day.

“So many of the journalists we speak with have a genuine interest in the organisation, the insights we share and the opportunities we present them. Volunteers, whether that’s members of the community, businesses or schools are also very happy to tell their incredible stories.”

The firm hopes to make the 35^th anniversary event in 2025 “the biggest ever”, but Poisel said this held challenges too.

“Being an annual campaign, the challenge is to be creative each year, drawing on new opportunities, new insights and stories to share, as well as news hooks to engage with and contribute thought leadership on, ensuring that Clean Up Australia is recognised year-round for its environmental leadership and work, and not just one date in the calendar year

Feature Communications recently promoted the newly created Clean Up Australia Community Awards, with the winners to be announced at the 2025 launch.

While the cost of the campaign is unknown, Clean Up Australia Day’s financial records show that “marketing and support costs” for 2023 were nearly $466,000, and pro bono marketing support was worth an additional $7 million.

Poisel said campaign budgets could range widely.

“Campaign budgets for PR activity can vary greatly depending on the objectives, the type of activity and the timeframe. There isn’t a one size fits all approach and when it comes to the not-for-profit sector, we know that budgets are often tight, so it’s important to identify the campaign must-haves over the would-like-to-haves.”

Future Generation companies include Future Generation Australia (FGX) and Future Generation Global (FGG), which invest in Australian and global stocks respectively.

There are currently 24 organisations involved as social impact partners. For Future Generation Global these are:

• BackTrack
• Big hART
• Happy Paws Happy Hearts
• Human Nature
• I CAN Network
• Live4Life
• Mind Blank
• Prevention United
• PROJECT ROCKIT
• ReachOut
• Smiling Mind
• WANTA Aboriginal Corporation
• Westerman Jilya Institute
• Youth Opportunities

For Future Generation Australia, the beneficiaries are:

• Act for Kids
• The Australian Children’s Music Foundation
• The Australian Indigenous Education Foundation
• DEBRA
• Diabetes Kids Fund
• Giant Steps
• Lighthouse Foundation
• Mirabel Foundation
• Raise Foundation
• Youth Off the Streets

Youth are learning skills for life

Another beneficiary of the Future Generation model is Youth Opportunities, which describes itself as an organisation helping Australian youth “to be their best” through personal leadership programs and “wraparound services” available in schools, workforces and for individuals.

Among graduates are sisters Rawan and Bayan, who found a new home after escaping the conflict in Syria.

In a case study featured in the Future Generation impact report, Rawan said moving to Australia was the realisation of a dream, but it also meant, “I no longer had the people I loved to share it with me”.

“I fell into a deep depression that lasted for three years. I went from being a happy girl, always out having fun with friends, to underestimating myself and feeling like I wasn’t good enough to do anything. I acted dumb at school and, at home, just stayed in my room. I couldn’t talk to teachers or students and would fight with my parents all the time.”

She said Youth Opportunities helped her gain the confidence to tackle problems and resolve conflict “in a mature way”.

“These are skills for life! I am now studying to become a teacher and feel excited about the future”.

Her sister Bayan said she was lonely when she first moved to Australia.

“It was a new country, a new language, a new religion, and a new culture. I didn’t know anyone, and couldn’t understand, or talk to, other kids at school.”

But she too gained confidence “to stand up for myself” through the Youth Opportunities program.

“If I didn’t go out of my comfort zone and work with Youth Opportunities, I would never be the person I am today.”

Feature Communications’ tips for promoting a major event

Timing is important: Allow time to plan ahead. Start building awareness early, and align key announcements with relevant campaign moments or news cycles.

Leverage credible research: Use data to drive your messaging. Clean Up Australia’s annual litter report provided the media with hard-hitting facts about waste, which helped position Clean Up Australia as a thought leader on environmental issues.

Diversify your media approach: Focus not only on national outlets but also on local and niche media that resonate with your core audience. While many moments in our campaign are hard hitting news moments, we have also focused on lifestyle media outlets by providing tips on sustainability during the holiday season, while on a local level, we have beautifully told the stories of local volunteer efforts and schools.

Engage with supportive and passionate influencers: Partner with influencers who authentically align with your cause. A personalised approach and discussion with them can result in impactful, organic social media exposure.

Stay flexible: Be prepared to pivot your messaging or approach based on real-time feedback or media interest. Agility can often mean the difference between good and great campaign outcomes.

Golden Target awards 2024