Holly Hockley
After getting a sizeable redundancy package, Holly was lucky enough to find a new job almost immediately. So she decided to use some of the redundancy to set up a fund with Nottinghamshire Community Foundation.
Initially she made a single gift of £10,000. By gifting shares and adding to her fund through payroll giving her aim was to grow her endowment fund to £25,000 - a level where she could start to give grants. Holly was able in just a relatively short time to grow the fund to nearly £20,000.
She was really interested to hear that she could split the £20,000 and have a combination fund. This meant that she could put £10,000 into endowment, enabling her to give grants into the future and put £10,000 into a distribution fund and be able to give meaningful gifts right now. Holly made a commitment to grow her endowment fund to £25,000 during the next 3-4 years by adding £5,000 a year. She decided that any interest earned would be put back into the endowment to grow it as fast as possible.
Holly was asked if she would be happy to commit tax reclaimed through Gift Aid on her initial and on-going gifts to the Community Foundation. She felt that it was a great opportunity to help with the day to day running costs and would ensure the furtherance and sustainability of their work. When signing her fund agreement she ticked the appropriate box opting into this.
Through proper investment, the income generated from the endowment flows into her distribution fund so she can give grants to the groups she cares about in the Broxtowe and Mansfield areas.
Holly Hockley’s Combination Fund – how it works over a year |
£ |
Initial Gift – into Endowment fund |
10,000 |
Gift Aid |
|
Gift Aid (= £10,000 x 22/78) reclaimed by Foundation for their use |
2,821 |
Plus |
|
Estimated annual growth (6% x £10,000)* |
600 |
Holly’s annual additional gift (£5000) into the endowment minus Gift Aid |
5,000 |
Less |
|
Fund administration and grant making fee (2% x £10,600)* |
212 |
Funds flowing into revenue fund for grant making (4% x £10,600)* |
424 |
Total Fund Value at end of Year 1 including new donation* |
14,963 |
*As the fund is invested, these values are approximate and will depend upon market conditions.
Holly Hockley’s Combination Fund – how it works over 1 year |
£ |
Initial Gift – into distribution fund |
10,000 |
Plus |
|
Flow through from the endowment fund |
600 |
Less |
|
Fund administration and grant making fee (5% x £10,000) for distribution fund * |
500 |
Grantmaking in Year 1 |
2500 |
Total Fund Value at end of Year 1* |
7,600 |
To demonstrate her grantmaking here are a couple of people and projects she is delighted to have supported.
- Two young rowers – they are doing well and have aspirations to row for Great Britain in the 2012 Olympics. Holly would have loved to have the same opportunity as they have, and feels that by supporting them she is able to fulfill one of her ambitions through them.
- Something that pains Holly as she travels around the county is the amount of homeless people. She doesn’t know the situations that have caused those people to be homeless but has felt frustrated due to not knowing how best to help. She mentioned this dilemma to the team at the Foundation and we were able to tell her about an organisation called Hope that works with the homeless in her area. They had recently received a grant for premises to train people, offering daytime access to advice, information and guidance on training and employment opportunities, internet access and supported learning.
Holly understood the benefits of her own training in information and technology and was pleased to part fund a project needing six laptop computers, printers, software and Broadband connection.
Thinking in to the future beyond her lifetime, she has arranged for her children to take over the responsibility for giving the income to charities and with them we will ensure that her fund remains true to her wishes.
If you are interested in starting your own fund or require any further information about supporting Nottinghamshire Community Foundation,
please contact Zoë Keens on 01623 636365.