Trust Chair reportFinancial sustainability & success
Wellington Zoo is operated as a charitable trust, governed by a Board of Trustees appointed by Wellington City Council, which provides the principal funding for the operation of the Zoo each year. The Zoo is located on Town Belt land and its capital assets are owned by the Council.
Wellington Zoo became a trust in 2003, and has since grown into a capable not-for-profit organisation, in the business of sustainable fundraising. Through our marketing and fundraising strategies, we work hard to maximise revenue through visitation, functions and events, our membership programme Zoo Crew, Close Encounters, retail and more traditional fundraising.
In 2007/08, the Zoo’s operating costs were $4.7 million in total. The Zoo faces a high level of fixed costs – whether visitors come or not, we must feed and care for our animals, and maintain our facilities.
Zoo based activities currently generate just over 44% of our operating revenue (a 20% increase from the time the Trust was established in 2003). Wellington City Council’s grant covers the remaining 56%.
The Wellington Zoo Trust is committed to increasing its fundraising, and reducing its dependence on the Council for operational activities of the Zoo. In 2007/08 we earned almost $1.3 million from admissions to the Zoo and a further $312,000 from sales of our commercial products such as Close Encounters and functions in the Zoo. This was a 9% increase over our 2006/07 visitor and related revenue. Our retail shop earned us $252,000 (an increase of 6% on the previous year). In addition to $440,389 raised for capital projects, operational sponsorships and grants accounted for $63,198 in the year under review.
Over the past few years, we have received anecdotal feedback that the Zoo is still not recognised as a charitable trust. We know that one of the keys to achieving our goal to be more financial sustainable is that we be seen in the community as a not-for-profit organisation, worthy of financial support.
The Zoo Trust is about to launch a community fundraising campaign that highlights the fact that the Zoo is a trust and needs support from its community. The campaign aims to raise community awareness about how the Zoo raises money and also to encourage people to donate money to the Zoo. The success of the fundraising initiative will depend on the community’s perceptions of the Zoo, and their beliefs about the Zoo’s current sources of funding.
In May this year, we commissioned research to evaluate this business problem.
Research findings
- Only 31% of participants thought Wellington Zoo was a charitable trust
- Zoo visitors were significantly more likely to be aware the Zoo is a charitable trust (38%) than non-visitors (21%)
- Almost three quarters of respondents (71%) thought the Zoo received money from Wellington City Council and 21% thought central government provided funding.
- Most people also thought the Zoo received funding from other sources as well, such as donations (62%) and sponsorships (50%).
- There is some degree of confusion about the relationship between the Council and the Zoo. Most people think the Council has some involvement, either operational or financial or both.
These findings were similar to those from the Wellington City Council Residents Satisfaction Survey that asked a new question this year to ascertain the proportion of Wellington residents who are aware Wellington Zoo operates as a charitable trust. Just less than one quarter of residents (23%) are aware of this, just over three quarters (77%) are not.
We believe this research gives a clear message – we still have some way to go in spreading the message that Wellington Zoo Trust is a charity, worthy of donations from our community. This will be a focus for us in the coming year.