Christchurch Foundation drops to one employee

Tuesday, 9 April 2024

A foundation that attracts money into Christchurch has severely downsized its operation as it attempts to ride out the economic downturn.

Christchurch Foundation chief executive Amy Carter is now the only remaining paid employee - down from four.

She has also reduced her hours to two days a week and will step away from the role completely once a new leader is found later this year.

The foundation has distributed more than $15 million since it was set up in 2017 by the Christchurch City Council. However, $11m of that was made up of donations following on from the 2019 mosque terror attack.

Carter said there was no risk the foundation would fold, despite two successive years of operational losses.

“It just one of those things. I’ve been in fundraising almost all of my career and it’s just a cycle and that is why you plan and build up reserves for rainy days and ensure you have people that will back you.”

Carter said the foundation was fortunate to have some “very generous benefactors” sitting behind the scenes that have always said no matter what, they would step in to save the organisation.

One of the biggest issues facing the foundation, and many others like it Carter said, was the downturn in big corporations wanting to give.

Private generosity had continued, but corporate giving across the board was down since Covid-19.

Carter said some of those big companies were notching up record profits, yet they were not supporting “purpose”.

“It’s disappointing but I think it will be cyclic and it will come back again.”

As of June 30, 2023 the foundation had close to $2m in funds under management.

It raised $803,094 in the year to June 30, 2023, but notched up an operational loss of $3358, down from a $147,695 loss the previous year.

This will be the first year, the foundation has not received any operational funding from the city council, which originally agreed to provide $600,000 for the first six years to help it get established. The annual grant was later reduced in the final years.

Both recent losses have been covered by the foundation’s operational reserves, which as of June 30 last year, sat at $138,801 - not enough to even cover Carter’s full-time wages for another year.

The 2023 annual report show Carter’s salary was $198,006 that financial year, down from $221,192 in 2020.

Carter said it was on her recommendation that the board agreed to reduce her hours.

It was one of a number of cost-cutting measures, which also included not replacing staff when they left or their contract expired. The foundation had also moved into free office space provided by law firm Tavendale and Partners.

“We’re just trying to be very careful, ride it out and then go again.

“I think the fact that we’re managing to hold our own in a global downturn and pandemic, I think that is pretty good.”

The foundation has 25 different projects and funds on the go. It was helping with Port Hills fire regeneration, was supporting women in sport, and was heavily involved in the Tūī Corridor. It was also involved in raising money for the new Youth Hub and has a Rainbow endowment fund that will provide ongoing support to the LGBTQIA+ community.

Carter said she had only planned to stay with the organisation for five years. It has been six.

“I am someone who builds things, not runs them when they’re in day-to-day mode.”

She had enjoyed her time at the foundation, but acknowledged it was time for someone else to come in.

The board was still deciding what the new role would look like, and a replacement was expected to be appointed in the new financial year.

Carter said she would stay on as a contractor to help with some projects, but was looking forward to slowing down and spending more time at home.

“I have worked 80-hour weeks for 13 or 14 years and I’m just tired.”