Generosity lives on
The kindness of a $3 million donor
Karen Pensabene was ‘‘extraordinarily generous’’ in life, purchasing an apartment for her carer and giving six-figure sums to those in need.
After her death in 2018 at 91, Pensabene’s $3 million bequest to three charities will see that generosity continue in perpetuity.
The money – made by her late husband Philip’s UK engineering and boat building businesses, is to be invested for the Omanu Surf Life Save Club, a hospice and the Acorn Foundation, with proceeds turned into yearly payments.
Thanks to a new model for charitable giving, the three charities will effectively receive $40,000 a year for ever, says Eleanor Cater, executive director of community foundations umbrella organisation Community Foundations of New Zealand.
For those that knew Pensabene, her generosity is no surprise.
‘‘You know that expression, death by a thousand cuts – it’s the reverse of that, making our society better with a thousand kind actions,’’ says her former lawyer Bill Holland. ‘‘She was extraordinarily generous, and I’m talking six- figure numbers in terms of helping people out.’’
Holland described her as private, shrewd and generous, and while he acknowledged the bulk of her charitable donations were done privately and with no desire for publicity, he believed she’d be amused to be the focus of attention now.
‘‘She certainly wouldn’t mind now, but she didn’t do it to show the world how lovely she was,’’ he said.
Holland’s views were echoed by Karen Tapper, Pensabene’s carer for her last seven years.
‘‘An amazing woman, wicked sense of humour,’’ she said.
Tapper said Pensabene bought her an apartment at the Ocean Shores Retirement Village in Mount Maunganui, despite her objections.
‘‘I want to and you’ll take it,’’ had been Pensabene’s response.
‘‘ She was valiant right until the end, beautiful even when she passed away.’’
Tapper said she misses her old friend terribly, and her passing left her feeling ‘‘ incredibly numb’’. She also revealed her greatest sorrow was
‘‘she never had children of her own’’.
Pensabene’s generosity means that Donal Boyle will have to hold far fewer sausage sizzles to help keep the Omanu Beach Surf Life Save Club afloat.
Thanks to Pensabene, the club’s now guaranteed yearly income of $ 40,000 is a ‘‘game changer’’.
‘‘Knowing that we’re going to get that money, it gives us some certainty around the club. A huge weight off your mind,’’ he said. It’s a view shared by Sue Kinsella, manager of the Rotorua SPCA and also a recipient of a guaranteed funding stream, again thanks to the Community Foundations model.
‘‘ Having the certainty of regular funding helps us plan for our expenses,’’ she said.
The funding model is simple. The initial capital is maintained and annual donations made to the cause from investment returns. Cater said the concept was first launched in the United States in 1914 and in the current Covid climate it’s an idea she believes is needed more than ever.
‘‘If Covid has taught us something, it’s that communities do need to look after each other and take charge of their own needs. That’s what we’re all about, making a difference that way.’’
Cater said a good example of the model at work is the fate of a $67,000 donation made in 2003 by an Edna Brown.
‘‘This year that had given out $64,250 to date and the balance is at $90,500. Over the course of the years that has almost given out as much as the original gift and will keep giving, and crucially ... we haven’t spent the gift.’’
Cater said the concept is ‘‘one of the fastest growing forms of philanthropy in the world’’ and legacies didn’t need to be huge for the model to work either.
‘‘All amounts make a difference. You can invest $200 for your community in perpetuity.’’
It’s a model that has some heavyweight backing, too. Craigs Investment Partners, which manages Community Foundation cash, first became aware of the model when chair Neil Craig was introduced to The Acorn Foundation around 15 years ago.
‘‘What appealed to us was their philosophy of long-term investment for community benefit and the sustainable model they adopt,’’ a spokesperson said.
‘‘But also they are communityowned and driven, grassroots organisations which are highly responsive to local conditions and opportunities.’’
Typically the cash would initially be invested with a conservative approach, both in terms of asset allocation and security selection, with the potential for additional risk as the fund grows and an investment philosophy aimed at protecting capital first.
‘‘Acknowledging that markets go up and down, we would look to create a sustainable portfolio that can retain its value after inflation and fees... this cash flow means for a community trust’s fund they can at least still distribute income in any one year even if the investment markets have fallen in that year.’’
‘‘She didn’t do it to show the world how lovely she was.’’ Bill Holland