Logan City’s charitable trust could face the same fate as its investment arm, investLogan, if it continues to fall short of its intended purpose.
The local council’s beneficial enterprise was set up in 2017 to raise money for local charities, but over the last year only raised a meagre $1000.
While owned by council, the entity is run independently.
After seven years of running and receiving almost $200,000 of council funds in the last three years, the entity could hit the chopping block if it doesn’t pick up its game.
Mayor Jon Raven told a governance meeting last week the purpose of a beneficial enterprise was to do what council couldn’t, which in this case, was to fundraise.
“Great examples of previous beneficial enterprises we have had is investLogan,’ Cr Raven told the trust’s chairperson at the meeting.
“The idea that a council can invest is something we’re bad at – we created a beneficial enterprise to try and do that for us, but it wasn’t very good at it either, so we wrapped it up.
“What council is pretty good at is assessing grants and handing out money, so we don’t need you to actually be very good at that – because we can do that for you.
“What we do need you to do, because you’re a charity, is raise money.”
Only a few weeks ago the trust handed out $65,000 of grants to seven local charities delivering cost-of-living and domestic violence services across the city.
According to council, up to $18,000 of the total funding it gives the trust each year is spent on expenses, “leaving only 60-80 per cent to disburse to grant recipients”.
Cr Raven said the trust should use the money gifted by council to raise more money.
He said if the trust didn’t start working towards more effective fundraising, he would move to “close down the trust because it’s not a good use of ratepayers’ money unless it’s generating more income that we give it”.
Chairperson Sohana Maharaj said the trust was seeking to increase its fundraising capabilities, including through the recent recruitment of a board member with fundraising experience.
But the trust wants more administrative and operational support from council, after five board director resignations since late last year.
All board positions are voluntary roles.
The trust will also aim to establish a stronger online and social media presence, create a winter appeal, and team up with recycling company Containers for Change to raise more funds.
Ms Maharaj said the trust was gaining momentum in the community.
“We are being noticed by the local community as an independent entity striving to make a difference in the community,” she said.
In three months, the trust’s progress will be re-assessed.
