Endowment Fund Development

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Case Study Overview:  The client is a global community with a strong focus on education and welfare. The client operates a number of community schools across 15 countries, and consisted of over 5,000 different individual and business investors. The project engagement length was 9 months.

Project Trigger: Changes in government school funding and changing market conditions in different regions globally required the client to develop an endowment fund that would future-proof school funding.

Scope of work:

  1. Support the client to set the strategy, plan and execution of the Endowment Fund.
  2. Establish processes for receiving funds from thousands of community investors.
  3. Establish and implement a marketing and communications plan for engaging and reporting back to community investors.
  4. Establish a long-term governance and management structure for the Endowment Fund that would grow the fund over a number of years to expected levels.
  5. Develop operating model components for the ongoing management of the fund including an investment strategy, criteria, and management processes.

Project Outcomes

Active Directions delivered the following:

  1. Project planning and reporting: After an initial briefing a project plan was developed and a Steering Committee established to deliver the program over 9 months.
  2. Cooperation with investors and stakeholders: The Active Directions team embedded themselves in the organisation to work with management and stakeholders, build trust to subsequently work with teams locally and globally, and rollout the Endowment Fund to be operational.
  3. Solutions and recommendations: Refinements used work-arounds and shortcuts to reduce duplication of effort and increase the reliability of data. Data analysis was applied to collections database and recommendations made for future collection methods that would more effectively grow the fund.
  4. Governance and management: We supported the ongoing oversight of the Steering Committee and ensured key investment decisions were made in line with governance frameworks.

So what was the real value?

The client over the period of the project was able to improve investment collection methods and establish new systems that reduced duplication of information and effort. This enabled investment strategies, policies and processes to be set up and backed by accurate investment data.  The communication and marketing strategy provided tangible examples of how funds are used to deliver education and social welfare outcomes.

We ultimately continued to function as an interim management team while the new team were onboarded.

Our case studies are developed with our Partners (accounting, investment and other advisory firms) in mind. We hope our Partners, and their frontline staff, may use the case study to open up new conversations with their clients.

Thank you for reading this far! For more on how we work with our Partners, just email jim@activedirections.com.au.

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