Investment firm to pour millions into tackling childhood trauma

Dr Philip Lowe, former governor of the Reserve Bank of Australia and now chair of Future Generation Australia (FGX), said there were compelling reasons to act.

“Severe childhood trauma has lifelong and profound impacts. Australians who experience childhood maltreatment and abuse are far more likely to face physical and mental health problems; social, behavioural and educational issues; and to have high health service utilisation. Not only is this devastating for the individuals involved, but it is costing the Australian economy tens of billions of dollars each year,” Dr Lowe said.

“Childhood is the foundation for life and really affects a person’s future trajectory. At Future Generation, we believe that every Australian child deserves the opportunity that a safe and positive childhood offers – and I know our shareholders do too.”

For over a decade, Future Generation’s philanthropic model has granted a 1% share of its $1 billion asset base each year to charities. The firm is expected to have distributed $100 million in grants by 2030.

This week, Future Generation invited expressions of interest from not-for-profits addressing child maltreatment. The deadline for applications for funding is December 9.

While Future Generation’s global and Australian investment arms primarily aim to make a profit, a significant secondary goal is to give, with a focus on supporting children and youth at risk. Currently two dozen organisations are listed as Future Generation’s “social impact partners”.

Until now, Future Generation’s Australian investment arm has provided help to a mix of foundations, funds and organisations focused on youth and children.

Since 2014, it has provided $43 million for organisations such as the Raise Foundation, the Australian Children’s Music Foundation and Giant Steps. In 2023, Future Generation Australia gave $5.2 million to its social impact partners.

But the beneficiary mix is set to change, a review of Future Generation Australia’s social impact goals having led the organisation to decide to divert more funds to tackle severe childhood trauma.

Another recipient of Future Generation Australia's youth-focused help has been the Raise Foundation, which provides youth mentoring programs aimed at early intervention.

Future Generation’s social impact strategy aims to fund areas with a high potential for social good that are overlooked or underfunded by other donors, particularly governments.

The call for public expressions of interest is a first for Future Generation Australia and was influenced by last year’s landmark Australian Child Maltreatment Study (ACMS).

The ACMS study, which surveyed 8,500 Australians, found that more than a quarter of young people aged 16–24 had experienced between three and five types of abuse during childhood.

Supporting findings from the Australian Institute of Family Studies showed that 72% of Australian children had been exposed to at least one adverse childhood experience by age 11.

Future Generation CEO Caroline Gurney said not enough was being done to address the problem.

“Despite compelling evidence about the scale of adverse childhood experiences and their lifelong impacts, the response by governments remains piecemeal and reactive. At Future Generation, we are determined to change that – with the help of our army of mum-and-dad shareholders.”

Future Generation’s social impact director, Emily Fuller, said the firm’s funding plan would “lean into the more emergent field of positive childhood experiences”, and that “healthy relationships and connection” had been shown to help children overcome trauma.

“We will focus on children aged 0 to 14, and their parents, because this age bracket captures key development phases. Within that, we are looking particularly for partners that work with children aged 8–14 because they have traditionally received less attention and funding than the 0 to 3 or youth/adolescent stages. We believe that this is the area where Future Generation Australia can make the most meaningful and useful contribution.”

The fund said it would target a “portfolio” of small to mid-sized not-for-profits with proven track records and scope to scale their impact, as part of the expression of interest process.

The funding round is expected to create opportunities for a mix of national and community-based organisations, including Aboriginal community organisations.

Future Generation is expected to track the progress of each partner, as well as examine their collective impact, with the aim of demonstrating the value of the investment to others, especially governments.

The fund’s global arm (Future Generation Global, or FGG) recently reported on the social impact of its grants, which helped more than 5.3 million young participants through $4.6 million in funding in 2023. It also recently conducted a strategic review of funding, prompting the firm to give less money to large charities and spend more on supporting smaller, higher-impact charities. The Future Generation Global fund now stands as one of the biggest private funders of youth mental health in the country.

More information

Lodge an expression of interest for funding with Future Generation Australia

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