The Country Arts Foundation Future Fund is the most important source of philanthropic support. Secured in perpetuity, it underwrites core activities and programs.
As the endowment grows, the Future Fund strengthens Country Arts SA and allows for autonomy and reliable planning. The Future Fund provides a flow of predictable revenue, enabling us to be less reliant on volatile funding sources such as grants.
More about the Future Fund?
What is an Endowment Fund?
An endowment is created by a donor from a gift, with the majority of endowments having a legal stipulation that the original gift may never be expended and only the earnings can be used. The objective of the endowment fund is to provide both long-term capital growth and a current income stream, which is critical to sustaining and enhancing Country Arts SA’s position
An endowment is a permanent, self-sustaining source of funding. In an endowment fund, the principal is invested in perpetuity and only a portion of the investment’s earnings is used each year to support the fund’s purpose, and any earnings in excess of this distribution are used to build the fund’s market value.
Why is an Endowment Important?
The Endowment Fund provides consistent finance and enables Country Arts SA to make commitments to regional artists and audiences, independent of volatile government funding and revenue cross-subsidy.
What are the objectives and strategy of the fund?
The Fund’s long-term investment objective is Consumer Price Index (CPI) + 4% per annum, with distributions up to a maximum of 5% of the value of the Fund each year.
A growth biased investment strategy has been adopted with approximately 80% growth assets and 20% defensive assets. This strategy is consistent with the Fund’s objective of providing both long-term capital growth and a current income stream through exposure to a diversified investment portfolio