Frequently Asked Questions

Starting a Fund

Foundation SA has a number of fund options available, which we’ve listed below.:

  • Named sub-fund
  • Corporate sub-fund
  • Gumnut Account
  • Future Fund (non-profit fund)
  • Fundraising Fund
  • Scholarship fund
  • Bequest fund

More information is available here on our website.

Click here to see a table that provides a quick reference guide to the different structured giving options.

Donations to the Main Fund are tax deductible and donations to the Extension fund  are not. If you establish a Sub-fund in the Main fund the donations you make into your fund are tax deductible and have to be granted out to organisations with DGR 1 status.

If you decide to establish a sub-fund in the Extension fund your donations into your fund are not tax deductible but you can grant out to any organisation deemed to have ‘Charitable purpose’ by the ATO.

When your Gumnut Account reaches $20,000 it will automatically become your own named sub-fund. You can make a minimum donation of $2,000 each year or make larger donations to speed up the process.

A Future Fund (also known as a Non-profit fund) is a low cost way for non-profits to establish a sub-fund.  A Future fund offers non-profits:

  • Lower fees
  • A flexible income stream
  • A secure and independent option for tax deductible donations and bequests
  • The ability to build an endowment

Income from the fund can be granted back to your organisation for any purpose, including operational costs or to support specific projects.

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 here.

You can name your fund anything you like. The only legal limitation is that you can’t use the words ‘Foundation’ or ‘Trust’ in your name.

A Fundraising Fund allows you to open a fund and spend 12 months fundraising to grow the fund to $20,000 (instead of requiring the $20,000 upfront). This is useful for giving circles, small non-profits or families wanting to open a fund to capture their fundraising efforts. All donations to the fund are tax deductible if established in the Main fund.

Donations to sub-funds

Absolutely. We understand circumstances may change and there is no long term commitment on your part. You are 100% free to change anything you like, any time at all. Simply contact us with what you’d like to do (e.g., cancel the recurring donation, change the amount or change which fund you are donating to) and we’ll do the rest.

All donations to the Main fund are tax deductible.  Please see FAQ above regarding  the difference between the Main and Extension Funds.

Anyone can donate to your sub-fund. Once your sub-fund is created you’ll be given a secure online donation link.  This can be shared with friends, clients, family and anyone else in your network.  They can all make a tax deductible donation to your sub-fund.

Leave a legacy

There are three ways to leave a legacy with Foundation SA:

  • Make a gift of any amount to Foundation SA
  • Bequest to an existing sub-fund with any amount
  • Create a bequest sub-fund of your own (minimum amount applies)

More information can be found on our website here.

We suggest you speak to your personal advisor re the wording in your Will, but we have some suggestions here and would be happy to speak with your solicitor.

Corporate sub-funds

Any public or private organisation can establish a corporate sub-fund.  A corporate sub-fund allows you to make regular tax deductible donations into a fund. Donations can come from:

  • The business
  • Owners/Partners/Directors
  • Staff
  • Clients
  • Suppliers

You and your team nominate which causes you’d like to support and make donations from your fund to your chosen charities/organisations.

Workplace giving enables staff to make pre-tax donations taken directly from their salary each pay period. This is managed by your payroll department. You can align these staff donations with your sub-fund and potentially offer to match staff donations with business contributions.

For more information on workplace giving please visit Workplace Giving Australia here.

Yes, a corporate sub-fund is separate to a workplace giving program. You can establish a corporate sub-fund and both the organisation and staff can donate directly into the fund without a workplace giving program.

Granting

You can make a request to grant out of your fund at any time through the online donor portal.  Please be aware that your sub-fund balance can not go below $20,000. You may therefore need to ‘top-up’ your fund before making a grant.

You advise us where you would like your grants to go.  You can nominate charities or organisations that align to your family or business values or causes close to your heart.

If you would like assistance selecting charities and organisations to support,  Foundation SA can help.  We can provide research into who is doing work in your chosen area of focus and provide due diligence to ensure transparency and impact.