Our winning entries in the Waikato Business Awards 2021

On Friday 11 March 2022 Momentum Waikato won both the 'Community Contribution' and 'Not for Profit' Awards at the Waikato Business Awards 2021 run by the Waikato Chamber of Commerce. Here are the written parts of the two winning entries.

Momentum Waikato - Waikato Business Awards 2021 Community Contribution Award Entry

Question 1. Provide an outline and explanation of significant community achievements during the last 12-18 months. What would you attribute these significant achievements to?

Momentum Waikato exists to create 'A Better Waikato for Everyone, Forever'.

Our agility and focus on purpose are what enables us to pursue and achieve our twin strategic objectives of leading transformational projects for our communities and building a regional endowment fund of $300 million by 2045.

During our first five years of full operation up to 2020, our principal financial target was growing the endowment fund to $25 million. With the transfer of $11 million from the Donny Trust and the establishment of several new funds through bequests, donations and other trust transfers, we achieved that goal with $26 million in our care in June 2020, with total assets reaching $32 million as of June 2021.

We are now into our second five-year strategic term, with an endowment fund target of $80 million by 2025. We will also be progressing transformational projects in affordable housing, community connectedness and education pathways for young people, priorities re-confirmed by our Waikato Vital Signs 2020 project.

A key strategic move has been to move away from a grant-making-only approach and into ‘impact investment', meaning we now offer a range of finance options to organisations and projects that will generate positive social and environmental outcomes as well as a financial return. We invest to make change for our communities.

A key proof point in late 2019 was the gifting of the $2.3 million Houchen Retreat in Glenview to Momentum, which allowed its trustees to retire while ensuring their mission of community support will continue forever.

In partnership with the Wise Group, we are now co-designing a ‘wellbeing village’ at ‘Houchens’, which will provide wrap-around mental health and personal empowerment services and be a test case for a model for rolling out across the region and the country. The property is being redeveloped and already delivers an income via its concessionary lease, meaning we are providing both a secure discounted base for community services and an immediate return for the regional endowment in our care.

Our giving circles have continued to thrive. The Waikato Women’s Fund has gone from strength to strength and now has over $100,000 invested. In May 2020, just two years after its launch, a largely new committee stepped up and has since continued to drive inspiring fundraising functions and grant-making that support women and girls. See Houchen Trust - Wellness plan detours to Covid response for more.

Work on developing the Waikato Intercultural Fund established after the March 2019 Christchurch terrorist attack has proceeded at a steady pace, with its holding now at $70,000. Well-attended community consultations and a working group built the governance foundations and its volunteer establishment committee set up late last year recently held their first public events in partnership with the University of Waikato Management School.

It was during the Covid lockdown last year that our relative agility amongst the region's community funders really came to the fore. The Waikato Community Funders Group co-ordinated daily support for core agencies and front-line services across the region, within which we provided or supported a number of bespoke solutions.

One example is 'The Greatest Needs Appeal' launched as a response to the lockdown, which also became the benefactor of The Mighty Waikato Cookbook campaign driven by Waikato Civil Defence. It has stayed open since, so far raising over $76,000, all entirely used for food and winter essentials distributed by frontline community groups across the region. Essentially it is a ‘pass-through donation’ mechanism for concerned citizens who want to target their gifts to where they can be sure will make a real difference for locals in need.

Concurrently we also provided staff support and funding for the 'Here to help u' support service set up by the Wise Group and Community Waikato, and played a key linking role between the Hamilton City Council and community groups in the region's emergency food response during the lockdown. See Mighty Waikato Cookbook feeds the need for more.

While that initial Covid response was going on, we also pressed ahead with the 2020 edition of Waikato Vital Signs. The final report launched in July presents the region’s key social and environment data with ‘grassroots’ commentary. Momentum and other local agencies use this report to inform our impact investment and grant-making decisions and to guide donors looking for philanthropic collaborations to drive transformational change. See Waikato Vital Signs for more.

Momentum is most well known for driving the Waikato Regional Theatre project, which kicked off in 2016 when the Hamilton City Council took up our offer to lead the effort to replace the closed Founders Theatre.

The vision for the new theatre is for every Waikato student to have the local opportunity to experience international standard performing arts.

This 1300-seat riverside multi-function performing arts centre will be a base for the development of the region's professional performing arts industries, boost the CBD by realising the long-held vision of turning the city to face the river and celebrate the heritage and Maaori koorero of the old Hamilton Hotel site and its surrounds.

The theatre will host performance and technical training programs to provide a springboard for locally produced export-quality performance. Plans are also afoot to attract leading national theatre, music and dance companies to base themselves in its world-class auditorium. Performers such as the Topp Twins and Stan Walker have already offered to play at the opening.

Momentum committed to raising the funds needed beyond the Hamilton City Council's $25 million foundational contribution. We subsequently secured $5 million from the Waikato Regional Council, $15 million from Trust Waikato and $4 million from NZ Lotteries, as well as smaller amounts from a range of individuals, businesses and community funders.

In November 2019, Prime Minister Jacinda Ardern announced to a crowd in Embassy Park next to the theatre site that the Government's Provincial Growth Fund was putting $12 million into the project, which took the firm commitments to $71 million of our provisional budget target of $80 million, allowing us to declare the project ‘live’.

This meant the Waikato Regional Property Trust (WRPT), the new entity that will own the theatre on behalf of the community, was able to move into building preparation mode. However during 2020 Covid slowed the planning and procurement process and then avoiding a potential impact on the adjacent urupaa also added extra steps. At the time of writing, we are confirming final contracts, with construction to commence in August.

The WRPT will manage the ongoing maintenance and development of the theatre and establish an operating company to promote and run its artistic and educational programs, separating the liability of the operations from the capital of the trust. The business plan for the theatre operation will be developed from a feasibility report prepared by Deloitte.

The build and fit-out of the theatre are expected to take about two years - the previous $74 million core cost has gone up about $2.3 million due to the delays and the impact of Covid but is still within that fundraising target of $80 million.

With the secured commitments at about $71 million, we aim to seek $3 million for the naming rights and $2 million from other sponsorships, with the final balance coming from our upcoming 'Share the Stage' public fundraising campaign giving project supporters the opportunity to take a real sense of ownership through donating what they can afford. See Our Transformational Projects for more.

The public-community-private partnership approach of the Waikato Regional Theatre project is without precedent for a civic facility in the region and perhaps the nation. Momentum Waikato has been able to navigate this uncharted territory, while also 'connecting and convening' to realise the range of community support activities described above, thanks to our agility and clear purpose. We have barely begun.

Question 2. How did you achieve this? What obstacles, risks or challenges did you overcome and how?

Our model is:

1 - identify the region's greatest needs and opportunities through the Waikato Vital Signs research report;

2 - apply impact investment to facilitate projects addressing those needs and opportunities while also creating a financial return for the endowment;

3 - connect and convene project partners;

4 - be an active participant in directing and governing these projects through the provision of capability.

Our biggest risk is that of reputation - being able to build trust and develop partnerships of value with key partners across the philanthropic, business and community sectors, while also being accountable to local and central government.

Constant narratives about our purpose, robust governance practices and accountabilities, committees on financial risk and fund distribution and establishing clear models all help to build that trust.

We focus on being a leader of projects and bringing people along with us via co-design and co-development.

Question 3. Describe what you are doing to ensure the organisation is sustainable. How will you ensure the organisation either consolidates its position and/or keeps growing?

A 64-year loan of $10 million from the WEL Energy Trust is Momentum Waikato's investment base, the proceeds of which cover our operating costs.

To manage risk, the endowment fund is spread over three fund managers (Forsyth Barr, Craigs Investment Partners and Aspiring Asset Management) who supply monthly reports and twice-a-year presentations on fund growth. Their services and performance are subject to an independent review every three years.

This is all guided by our Statement of Investment Policy and Objectives and separate Finance and Risk Committee, with accounts being audited annually.

Our business strategy targets specific trusts and organisations to attract their endowments and our marketing program promotes the funds and the wisdom of bequests to develop a long-term donation pipeline over time.

Momentum has recently started to charge for trust management services, based on a set percentage of the managed capital, providing for untagged endowment funds and cost recovery.

In addition, our five-year strategy targets growth to $80 million by 2025 and sets annual KPIs for fund development, endowment growth and project delivery.

Question 4. How do you measure the value of community contribution?

Our Waikato Vital Signs 2020 project reported on the region's social, environmental, cultural and economic wellbeing priorities, joining the dots between statistics and what matters most to those ‘living on the ground’.

The purpose:

strengthen funding decisionmakers' collective understanding of, and connections within, Waikato communities;
inform decision-making by identifying and communicating key priorities and aspirations of Waikato communities;
connect philanthropic and grant-making organisations with the social enterprises and change-makers addressing the key community needs and opportunities.

The National Institute of Demographic and Economic Analysis (NIDEA) was engaged to collate and analyse existing data from 34 indicators across eight domains of community concern - Children and Youth, Community, Culture and Arts, Economy, Education, Environment, Health, and Recreation.

Statistics on their own are important but don't tell the whole story. Engaging with local communities helps to create and acknowledge meaning, capture the narratives of places, and gather communities' views on their own strengths and challenges.

For more information see Waikato Vital Signs.

Question 5. How do you develop and manage channel strategies and support channels to promote and market your philanthropic activity?

Our Communications and Marketing Manager produces and publishes our social media posts, media releases, bi-monthly email newsletter to our 2800 database contacts and Annual Report (all linked at our News, Views and Events page).

Salesforce is our Customer Relationship Management database and we have recently invested in its Pardot add-on, an online marketing tool that tracks, tailors and targets communication with our website visitors and email contacts.

The Waikato Vital Signs project held every three to four years is our major community outreach campaign, which marries up the region's latest data with public consultation on funding priorities (see Waikato Vital Signs).

We host Showcase events for our partners and stakeholders that present our achievements and forward plans, see the Momentum Waikato Showcase 2021 video for a quick insight into the 2021 edition.

In a program currently led by our Generosity Ambassador Tim Macindoe, we regularly present on our projects, services and strategy to 'Business After 5' events, Rotary and other service clubs and community agencies across the Waikato.

Lastly, as the opportunity and need arises, we make submissions to local councils' Long Term Plan processes and relevant central government policy processes.

Momentum Waikato - Waikato Business Awards 2021 Not-for-Profit Award Entry

Question 1. Provide an outline and explanation of significant business achievements during the last 12-18 months. What would you attribute these significant achievements to?

Momentum Waikato exists to create 'A Better Waikato for Everyone, Forever'.

During our first five years of full operation up to 2020, our principal financial target was growing the endowment fund to $25 million.

As a result of prioritising trust transfers as a growth initiative and service, the last couple of years has seen us take on the care of $11 million from the Donny Trust and establish several new funds, including with the Waikato Rugby Union and Te Awamutu College.

We also decided to take on land and physical assets, required our Board to accept a new risk profile. A key proof point of this agenda has been the gifting of the $2.3 million Houchen Retreat in Glenview to Momentum, as detailed in Question 2 below.

These agreements allowed us to realise our five-year target, with $26 million in our care in 2020, with the total rising since to $32 million as of June 2021.

We are now into our second five-year strategic term, with an endowment fund target of $80 million by 2025.

As laid out in the answer to Question 2 below, this is allowing us to progress transformational projects in affordable housing, community connectedness and education pathways for young people, priorities re-confirmed by our Waikato Vital Signs 2020 project (see Waikato Vital Signs).

Momentum has been driving the Waikato Regional Theatre project since 2016. As detailed under Question 4 below, after overcoming a range of challenges, including delays caused by Covid, a sod-turning ceremony and blessing will happen on site in August and construction of the theatre will get underway soon after.

The public-community-private partnership approach of the Waikato Regional Theatre project is without precedent for a civic facility in the region and perhaps the nation.

Momentum Waikato has been able to navigate this uncharted territory, while also 'connecting and convening' to realise the range of business activities described above, thanks to our agility and clear purpose. We have barely begun.

Question 2. Demonstrate how you have applied commercial business strategies to improve community/stakeholder wellbeing.

Momentum Waikato's key strategic development over the last year has been to move away from a grant-making-only approach and into ‘impact investment'.

This means we now offer a range of finance options to organisations and projects that will generate positive social and environmental outcomes, as well as a financial return.

Instead of only being a passive investor engaging fund advisors to grow the endowment via share, bond or term deposit yields (which are currently at historic lows), we are now also using Momentum's capital to invest in affordable housing and wellness centres, which will generate positive financial returns at least equivalent to an advisor’s program AND address key social issues.

An example of this approach has followed the gifting of the Houchen Retreat in Glenview. In partnership with Wise Group, we are now co-designing a ‘wellbeing village’ there, which will provide wrap-around mental health and personal empowerment services and be the first example of a model to be rolled out across the region and the country.

The project will see three stages of development of the existing facilities. Stage one, some $600,000 of capital expenditure on facility updates and improvements, kicks off in August this year. Stage two will restore the homestead and transform it into a mothers and babies respite and support service, and stage three will be a purpose-built mental-wellbeing-support outpatient facility.

At the same time as providing a solid base for these social services, Houchens is providing a concessionary lease return for the endowment fund in Momentum's care, a return at least equal to that from commercial bond rates and term deposits. Find out more at Houchen Trust wellness plan detours to Covid response.

We are also utilising development pipeline processes and triage criteria to identify and coordinate affordable housing opportunities across the Waikato, with work on the first of them expected to commence in early 2022. These will be model developments for proving the financial viability and return rates of our approach to investment partners and philanthropic and community housing providers.

With the Waikato Regional Theatre project we have utilised project director processes to progress governance, strategic and marketing activities, including plotting a public fundraising campaign called 'Share the Stage', which will be launched with the upcoming sod turning on site in August (see Share the Stage).

In addition we have utilised procurement processes to appoint consulting firms and have undertaken risk management and procurement strategy workshops to identify best-value supply and contract modelling for the appointment of the contractors and the subsequent agreement of a 'design and build' Gross Maximum Price contact for the theatre's construction.

Question 3 How do you communicate your values and plans to your stakeholders?

We host Showcase events for our partners and stakeholders that present our achievements and forward plans, see the Momentum Waikato Showcase 2021 video for a quick insight into the 2021 edition.

Lastly, as the opportunity and need arises, we make submissions to local councils' Long Term Plan processes and relevant central government policy processes.

Question 4. Describe a key achievement that has resulted in significant impact to your community/stakeholders?

The vision for the new theatre is for every Waikato student to have the local opportunity to experience international standard performing arts.

This meant the Waikato Regional Property Trust (WRPT), the new entity that will own the theatre on behalf of the community, was able to move into building preparation mode. However during 2020 Covid slowed the planning and procurement process, and then avoiding a potential impact on the adjacent urupaa also added extra steps. At the time of writing, we are confirming final contracts, with construction to commence in August.

With the secured commitments at about $71 million, we aim to seek $3 million for the naming rights and $2 million from other sponsorships, with the final balance coming from our upcoming 'Share the Stage' public fundraising campaign, which will give project supporters the opportunity to gain a real sense of ownership by making donations.

Find out more at Our Transformational Projects and Share the Stage.

Question 5. Describe what you are doing to ensure the business is sustainable. How will you make sure the business either consolidates its position and or keeps growing to support its social mission?

A 64-year loan of $10 million from the WEL Energy Trust is Momentum Waikato's investment base, the proceeds of which cover our operating costs.

This is all guided by our Statement of Investment Policies and Objectives (see Investment Policies and Objectives) and a separate Finance and Risk Committee, with accounts being audited annually.

Momentum has recently started to charge for trust management services, based on a set percentage of the managed capital, which will provide for untagged endowment funds and cost recovery.

In addition, our five-year strategy targets growth to $80 million by 2025 and sets annual KPIs for fund development, endowment growth and project delivery.

All entries must include a brief business biography which includes a history of your business, highlights of what it does and any export markets.

Momentum Waikato Community Foundation is a community leadership organisation and part of the national network of community foundations that all seek, invest and disburse resources to make a lasting difference in our communities.

Our collective aim is for every New Zealander to be able to affect lasting change wherever their home or heart may be. We do this by working alongside individuals, families, businesses and trusts to make a bequest, establish an endowment or manage a trust fund, in order to support causes and projects that matter to the donor and the community they live in.

In the case of Momentum, our twin strategic objectives are to both lead transformational projects and build a regional endowment fund of $300 million by 2045. We 'connect and convene' to create 'Transformational Inter-generational Strategic Outcomes' (TISO).

Established at the initiative of the WEL Energy Trust and other community leaders, Momentum became operational in 2015. Through building trust with a range of individuals and community entities, we have since grown the regional endowment in our care to $32 million. Since 2016 we have been leading the Waikato Regional Theatre project and now also have projects and relationships across the region.

Through the generosity of our community we can create the change we all want to see. 'For a Better Waikato for Everyone, Forever'.