Tabitha Lovett

As International Women’s Day approaches, Equity Trustees is highlighting the role that women play in philanthropy as founders of philanthropic trusts as well as beneficiaries of their support.

Tabitha Lovett, General Manager of Philanthropy at Equity Trustees, says women have historically taken a significant role in the establishment of philanthropic foundations.

“Just under half of the philanthropic trusts managed by Equity Trustees were established by women, although often named in memory of their parents or husbands rather than their own name,” she says.

“This year, the 450 charitable trusts managed by Equity Trustees with more than $1.8 billion in funds under management, will distribute more than $80 million to charities following the directions and wishes of the trusts’ founders.”

That includes private ancillary funds (PAFs), public ancillary funds – also known as Community Foundations (including the Equity Trustees Charitable Foundation) – and Testamentary or ‘Will’ trusts.

“One of the larger trusts we manage, the Phyllis Connor Memorial Trust, which was established by long-standing Equity Trustees’ client, Miss Phyllis Connor, provides significant funding to charities supporting women and girls in Victoria,” Ms Lovett says.

“Established in 2010 through her Will, Miss Connor’s trust currently distributes over $1 million each year including funding scholarships at an independent girls’ school in Victoria.

“This year, the Connor Trust also awarded a $50,000 grant to the Australian Women Donors Network which advocates for greater investment in women and girls while promoting the use of gender sensitive principles in grant making.”

Education is a popular focus for many charitable foundations, Ms Lovett says.

“It is often the case that the causes and philanthropic objectives articulated by benefactors for their charitable trusts reflect community norms at the time which, as the years pass, can become outdated. An interesting example is the Dafydd Lewis Trust which was established by Mr Lewis through his Will in the 1940s to provide university scholarships for young men.

The Scholarship Trustees recognising the equal importance of giving talented female students the opportunity to attend university, established the Mary Jane Lewis Scholarship Foundation 10 years ago (named after Dafydd’s wife) with support from previous Dafydd Lewis scholars and a group of passionate philanthropists.

“The Mary Jane Lewis Scholarship Foundation provides scholarships of $10,000 a year for three years for young women to undertake an undergraduate degree. The recipients are selected by an inspiring group of Scholarship Trustees who share a passion for the education and advancement of exceptional young Victorian women.”

“Many bright young women have benefited from these scholarships which provide mentoring as well as financial support.  Due to family circumstances and financial hardship, achieving their goal to attend university would have been difficult, however with the support of the Mary Jane Lewis Foundation they have gone on to forge successful professional careers.”

Another significant trust managed by Equity Trustees was established by Lady Winifred MacKenzie in 1972, to honour her husband Sir Colin Mackenzie, a leading orthopedic surgeon and comparative anatomist, whose pioneering work in rehabilitation for polio survivors meant that nearly 70% of polio victims during the Melbourne epidemic of 1937-1939 fully recovered.

In 1920, Sir Colin also established what is now known as the Healesville Sanctuary, which has become one of Australia’s most important native animal conservation zoos.

“Income generated by Lady MacKenzie’s Trust is now made available for science fellowships and support for the Sanctuary to continue Sir Colin’s work and further scientific knowledge in the area of comparative anatomy and preservation of threatened species as part of the Sanctuary’s programs.”

Ms Lovett says it is easier to establish a perpetual charitable trust than people think and it does not need to be expensive or complicated.

“You don’t have to be wealthy to set up a charitable trust. It is possible through a public ancillary foundation such as the Equity Trustees Charitable Foundation to establish a perpetual charitable fund with $20,000, which you can contribute to over time.

“Misconceptions about establishment, operation and flexibility of such trusts often deter people. There is also a perception that charitable trusts are just for the very wealthy which isn’t the case.

“Ultimately, establishing a perpetual charitable fund during a philanthropist’s  life can better achieve their philanthropic objectives in a more engaged and lasting manner and will ensure a greater impact on their chosen charity or cause compared with one-off donations.”

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Deborah Kent

The Association of Financial Advisers (AFA) Inspire (AFA Inspire) initiative is throwing its support behind International Women’s Day this weekend in order to encourage women in the wider community to seek financial advice for a more secure financial future.

AFA Inspire Chair, Deborah Kent, said the International Women’s Day theme Inspiring Change holds a very special place for the women involved with AFA Inspire as it fits with AFA Inspire’s goal to bring about change in the world of financial advice. “Statistics remind us that women generally have less in retirement savings than their male counterparts and this, coupled with our longevity, is a recipe for financial stress in later life.”

Ms Kent said AFA Inspire is encouraging women to review their plans for retirement now, even if it is still many years away.  “We have seen female financial advisers, like those on the AFA Inspire Committee, who have shown tremendous leadership in developing their financial advice offering,” she said. “They are educating women that retirement is about more than just the numbers. It is about ensuring they are educated about their financial future.”

Members of the AFA Inspire National Committee will be attending local events on Saturday, and are encouraging other advisers to do the same – to celebrate the achievements of women and their ability to take control their financial security, provide for themselves and their families and prepare for their future retirement.

The AFA Inspire initiative was launched last year to connect women in advice, to pave the way for women in the financial services industry and beyond by encouraging more women to choose financial advice as a career path and to encourage more women to take control of their financial future.

To show your support and to find an event near you visit the International Women’s Day website and visit the AFA Inspire LinkedIn page.

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Women worried about their retirement funds: MLC

Ahead of International Women’s Day, MLC is raising awareness about the importance of superannuation and the amount of savings women will need in retirement.

Women retire with 40% less super than men which means too many women are risking a very basic lifestyle in retirement.  Additionally one in four women will have little or no super at retirement age.

MLC spokesperson Lara Bourguignon said this International Women’s Day MLC is encouraging women to take an active interest in their super to help overcome the retirement savings shortfall.

“While the issue is on the minds of most Australians, people are not doing enough about planning for their retirement, particularly women who have a larger savings shortfall than men,” Ms Bourguignon said.

“International Women’s Day is about empowering women financially and so it’s a great reminder for women to take some small steps today to make sure they have enough superannuation to last through retirement.”

MLC data about women and super shows:

• Australians are living longer – and women live longer than men (a 60 year old male is expected to live on average to 85 and a 60 year old female to 90)
• The average super balance for men in Australia is just under $300,000, but the average super balance for women is just $195,000
•  56% of Australians expect a financial shortfall at retirement and one third of women (36%) say they’ll have far from enough money at retirement
• Women retire with 40% less super than men as they take time out to care for children and their elderly parents, and often work part time
• Women experience significant economic inequality.  A young woman of 25 today will earn almost 50% less over her lifetime than a young man of the same age
• 47% of women are unprepared for retirement
• Almost half (45%) of women think they will struggle to make ends meet or just be able to afford the basic living expenses in retirement
• Just 35% of women have a formal retirement plan in place compared to 43% of men

Top tips for women to boost super:

• Awareness is the first step in taking action.  Take action today and don’t wait.  Think about the retirement lifestyle you want, how much you might need to retire on (use an online super calculator) and check out what your super balance is.
• Seek financial advice – find out how you can maximise and protect your super and how it complements your other investments like the family home.
• Consolidate and sacrifice your super – your superannuation is real money and it’s yours, so look at it like any other savings account.  Changing simple things today like finding lost super, consolidating your super and sacrificing a couple of extra dollars each week of your salary can make a big difference.
• Co-contribution – low income earners should consider making the most of the Government’s co-contribution scheme.  If you earn under $48,517 and make a personal after-tax superannuation contribution, the Government may contribute up to $500 per year to your super.
• Income – consider investing in a pension product with longevity protection that eliminates the risk of outliving your savings.

“It’s never too early to start planning for retirement.  It’s really important women take action today to secure the retirement lifestyle they’ve imagined and deserve,” she said.

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