The Community Trust manages its investments funds which can be applied for charitable, cultural, philanthropic, recreational and other purposes beneficial to the community.
Income from the Trust comes from its diverse international investment portfolio. Profit from that portfolio varies from one year to the next in the normal cycle of global investment, influenced by the economic environment, but by the use of reserving techniques, the trustees endeavour to manage a smooth and regular flow of donations each year.
It currently donates $6 to 7 million annually, $4-4.5 million going to about 95% of the applications received each year from several hundred community organisations throughout Otago providing a wide range of community services. The balance of donations typically goes to half a dozen or so applicants seeking to undertake very large projects.
Donations are specifically distributed to not for profit organisations providing services in Otago, averaging about 300 recipients a month.
The Trust has twelve trustees, responsible for investing the Trust Fund, and wisely applying the income in a way which preserves the original capital against inflation, builds general reserves for bad investment years, and supports worthy projects. They meet monthly to consider funding applications and approve monthly donations based on assessment criteria which includes taking into account wider community benefit.
The Trust had its origins in the former Dunedin Savings Bank (the predecessor to Trustbank) established in 1863 to encourage thrift amongst in Dunedin’s mainly working class population. These savings were invested with the Government and after meeting interest costs and expenses, a portion of the surplus was donated for charitable purposes. The Trust's first name of Trust Bank Otago Community Trust reflected those origins, but was changed to the Community Trust of Otago in 1998 when Trustbank was sold to Westpac.
Looking ahead, the Trust’s aim is to continue to support and empower community organisations in Otago and so make a positive difference for the people of Otago.
