Establishing a sub-fund

A named sub-fund (also called donor-advised fund) is the ideal structure for people and organisations wanting to:

Be supported in your giving
Invest in a fund with charitable purpose that will grow over time, in perpetuity
Make an initial contribution of $20,000 and commit to ongoing contributions
Track all tax receipts, donations and grants in one secure online portal
Receive an immediate tax deduction upon donation
Advise which cause areas, or non-profit organisations and community groups you would like to support
Seek tax-deductible donations from friends, family or even public fundraising
Name your fund after a family member, employee, organisation or give it its own unique identity
Create a giving structure that is simpler and more cost effective than setting up a private foundation

The Charities Act 2013 (Cth) lists 12 charitable purposes:

  • advancing health
  • advancing education
  • advancing social or public welfare
  • advancing religion
  • advancing culture
  • promoting reconciliation, mutual respect and tolerance between groups of individuals that are in Australia
  • promoting or protecting human rights
  • advancing the security or safety of Australia or the Australian public
  • preventing or relieving the suffering of animals
  • advancing the natural environment
  • promoting or opposing a change to any matter established by law, policy or practice in the Commonwealth, a state, a territory or another country (where that change furthers or opposes one or more of the purposes above), and
    other similar purposes ‘beneficial to the general public’ (a general category).

Charitable Purposes are explained on the ACNC (Australian Charities and Non-profits Commission) website.

You are required to donate at least 4% of the value of your sub-fund each year. This can be done any time throughout the year, and so long as the balance of your sub-fund does not go below $20,000 you are able to grant as much, as quickly as you like.

This table provides a quick reference guide to the different structured giving options.

Like to learn more about establishing a sub-fund with Foundation SA?

Getting started

At Foundation SA, we’re with you every step of the way. Your own named sub-fund can be established within 48 hours with just a few easy steps:

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    Complete and submit the sub-fund establishment form available here
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    Foundation SA will send you the link to your online portal
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    Transfer funds through the online portal using credit card or direct debit
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    Foundation SA will be in touch when it is time to start granting. If needed, you’ll have access to Foundation SA’s knowledge of the emerging issues impacting South Australia and the charitable organisations working to address them.
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    You can check your tax receipts, donations and grants at any time on the online portal
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    Foundation SA will be there to answer any queries along the way.