Charitable Fundraising
Education is a cause of importance and passion to which charitable giving is directed. Accessing gifts and capital from charitable sources gives us an advantage over purely commercial approaches.
Australia
- Banyan is not charity
(ITAA, Division 50) - Banyan is not DGR entity (ITAA, Division 30)
Public/Private Ancillary Fund (PuAF/PAF)
Opportunity: through Entrust we may be able to create a DGR1 pathway.
Ancillary funds (tax deductible) provide a way for people to receive an immediately tax deduction for future giving. This is helpful for managing irregular income that will be given away but not immediately. The tax deduction can be taken when the funds are transferred to the ancillary fund, disbursed in future years.
Every year ancillary funds must disburse 5% to DGR1 entities. This can be achieved in two ways:
- gift - most common
- interest free loan: the ancillary fund would loan $1m and forgoe the market rate of 6%, therby meeting their disbursement obligations.
Funds held in ancillary funds are invested until they are disbursed. Investments are typically aligned with the chartiable purposes of the ancillary fund, but market rates of return are required (7.5%-10%).
Charitable Trust (ACF Extension Fund)
Understood to be possible via Paul Detmanns charitable trust
Chartiable Trusts are exempt from income tax and can solicit donations, but donations are not tax-deductible. Typically these are established, or funds given to a charitable trust when a tax deducation would not be of benefit (e.g. death).
Communities Foundations
High uncertainty as new laws are tested. Banyan would likely have the charitiable purpose of advancing education.
A newly implemented structure under Australian law, a community foundation can recive tax-deductible gifts and is able to distribute them to any organization (does not have to be a charity, or have DGR status) that is doing activities that fall under the listed charitable
Netherlands
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United States
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United Kingdom
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