Future Generation, the philanthropic juggernaut that has donated $87.2 million to charity, is on the hunt for new non-profit partners to fund, amidst shocking levels of child maltreatment and abuse in Australia.
SYDNEY, Nov. 18, 2024 /PRNewswire/ -- Future Generation Australia (ASX: FGX), one of two listed investment companies in the Future Generation stable, will this week call for expressions of interest from non-profits which are supporting children facing adversity to thrive. It marks the first time that Future Generation Australia has opened its books to new non-profit partners since the company was founded by veteran fund manager Geoff Wilson in 2014.
Dr Philip Lowe, Chair of Future Generation Australia and former Governor of the Reserve Bank of Australia, says: "Severe childhood trauma has lifelong and profound impacts. Australians who experience childhood maltreatment and abuse are far more likely to face physical and mental health problems; social, behavioural and educational issues; and to have high health service utilisation. Not only is this devastating for the individuals involved, but it is costing the Australian economy tens of billions of dollars each year.
"Childhood is the foundation for life and really affects a person's future trajectory. At Future Generation, we believe that every Australian child deserves the opportunity that a safe and positive childhood offers – and I know our shareholders do too."
Backed by more than 7,000 everyday shareholders, Future Generation Australia has so far donated more than $43 million to Australian non-profits including Raise Foundation, the Australian Children's Music Foundation and Giant Steps, while simultaneously providing investors with average annual investment portfolio performance of 9.6 per cent – a 1 per cent higher average annual return than the ASX All Ordinaries Accumulation Index since inception.
Geoff Wilson AO, Founder and Director of Future Generation Australia, says: "Having worked in financial markets since 1980, it's exciting that we have been involved in creating a structure where investors can do well financially, while doing good in the community. I'm extremely proud of what Future Generation Australia and its impact partners have achieved. In our second decade, we must ensure that our giving continues to create a significant impact, particularly with the current circumstances facing young Australians."
In 2023, the landmark Australian Child Maltreatment Study (ACMS) – which surveyed 8,500 Australians 16 and older - evidenced the high prevalence of childhood maltreatment in Australia.
The study, the first of its kind, found that more than a quarter of young people aged 16-24 years had experienced between three and five types of abuse in their childhood. This adds to data from the Australian Institute of Family Studies that estimated 72 per cent of Australian children have been exposed to at least one adverse childhood experience and more than 50 per cent had been exposed to two or more by the age of 11.
Caroline Gurney, CEO of Future Generation, says: "As a large private donor, Future Generation looks for areas with high potential for social good, but which are overlooked or underfunded by other donors, particularly governments. Despite compelling evidence about the scale of adverse childhood experiences and their lifelong impacts, the response by governments remains piecemeal and reactive. At Future Generation, we are determined to change that - with the help of our army of mum-and-dad shareholders."
The call for expressions of interests from non-profits follows a review of Future Generation Australia's giving strategy, aimed at optimising the impact of the company's social investment. It comes two years after a similar review at Future Generation Global led the company to focus on preventing mental ill-health and promoting wellbeing in young Australians.
Emily Fuller, Future Generation's Social Impact Director, says: "The lifelong impacts of childhood trauma are well documented through decades of research, but this doesn't have to be the case. We plan to lean into the more emergent field of positive childhood experiences – achieved through healthy relationships and connection - which have been shown to help children overcome and heal from trauma.
"We will focus on children aged 0 to 14, and their parents, because this age bracket captures key development phases. Within that, we are looking particularly for partners that work with children aged 8-14 because they have traditionally received less attention and funding than the 0 to 3 or youth/adolescent stages. We believe that this is the area where Future Generation Australia can make the most meaningful and useful contribution."
Future Generation Australia is seeking to build a portfolio of small-to-medium-sized non-profits, with a proven track record, but still enough "runway" to significantly deepen their impact. They will include a mix of national scope and community-based organisations, including Aboriginal Community Controlled Organisations.
In tandem with the selection process, Future Generation Australia will build a framework that will allow it to track both the individual partners' progress and their collective impact.
"Our partners' work is complex, which makes tracking their impact tricky. But our shareholders and other stake- holders deserve to know what their social investment is achieving," says Gurney. "By measuring our partners' collective impact, we will be able to tell a compelling narrative that will demonstrate to others, particularly governments, the value of investing in the thousands of Australian children facing adversity."
Apply to become a Future Generation Australia social impact partner
The Expression of Interest is an online form which can be accessed on this page from 11 November. In the box to the right, you will find information to assist in assessing your alignment with our social impact goals. To apply for partnership with Future Generation Australia please complete the online form by 5:00pm AEDT 9 December 2024. The Expression of Interest is the first part of a progressive selection process. Further due diligence will be undertaken with organisations that progress to a medium and then shortlist in early 2025.
If you have questions, please call (02) 9247 9202 to speak to a member of the Future Generation team or email [email protected].
About Future Generation
The Future Generation companies, Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), are Australia's first listed investment companies to provide investment and social returns. Future Generation provides shareholders with exposure to leading Australian and global fund managers with the aim of delivering long-term capital growth, a stream of fully franked dividends and preserving shareholder capital. This group of leading fund managers manage more than $1 billion in assets on a pro bono basis, waiving their management and performance fees, which allows the Future Generation companies to donate 1% of their average net tangible assets each year in our social impact partners and other not-for-profit organisations. Shareholders are able to decide which social impact partners or other not-for-profit organisations will receive the investment, whether it's supporting children and youth at risk (FGX) or investing in the promotion of wellbeing and prevention of mental ill-health (FGG). The Future Generation companies are on track to deliver more than $100 million by 2030. The social investment to 2024 is $87.2 million.
