"The trust is set to allocate $12.7 million to the Gisborne district over the next five years - April 1, 2008 to March 31, 2013 - to projects that will develop economic growth and enhance the region by "transforming" it."
This is the first time this part of the strategy has been set in place. The trust's objective until now has been to ensure its reserves are at a long term sustainable level. Now a proportion of its post tax net profit will be available for projects it believes fit its criteria.
The first objective of the community investment strategy is to have a maximum amount available for distribution in any one year. This figure is directly linked to the balance of liquid funds in the reserve portfolio. In essence the larger the opening balance, the greater the distribution percentage.
For the 2009 financial year the trustees intend to allocate a maximum of $1.7 million for distribution, including all sponsorships and projects. The allocation of any, or all, of the intended distribution funds will be at the trustees' discretion.
The second objective is to make distributions over a five year period that amount to 50% of the cash income (post tax) of the trust. Over the five year period April 1, 2008 to March 31, 2013, the estimated net income (post tax) is $25.4 million and, as such, distributions are calculated to be $12.7 million per annum.
These distribution figures are the maximum that will be distributed, and any amounts are always at the discretion of the trustees and subject to financial considerations. It is envisaged that funds may be carried over from year to year if the appropriate projects are not available in any one year, or if the trustees wish to hold-over the distributions to fund a particular project.
Projects will receive the largest portion, and the trust will proactively seek out projects that will impact and transform the Gisborne community.
Smaller projects, in terms of funds required, are likely to have a less hands on approach by the trust than larger projects.
In all cases, any projects wholly or partly funded by the trust are required to accrue a huge amount of benefits for the community.
Sponsorships
Sponsorships covering a wide range of areas and endeavours within the community will form a minor part of the trust's distributions and will be limited to a sum of $50,000 per annum in the first year - growing by 5% each year.
Individual sponsorships will be set at a maximum of $5000 for each successful applicant.