Ancillary funds are special funds that provide a link between people who want to give and organisations that can receive tax-deductible donations (these organisations are known as deductible gift recipients, or DGRs). They may be public or private, and they provide money, property or benefits to DGRs.
A public ancillary fund, or public AF, is a communal philanthropic structure established by a will or trust deed for the purpose of making distributions to DGRs that are not ancillary funds. A public ancillary fund is itself a DGR and is therefore eligible for income tax exemptions.
A public ancillary fund can be used as a vehicle for public philanthropy, to provide opportunities for donors to obtain tax deductions, and to obtain income tax exemptions on income earned by the fund – including capital gains.
The trustee of a public ancillary fund must be a corporation, not individuals.
The majority of directors of the corporation must be “responsible persons”; that is, individuals who have a degree of responsibility to the general community (e.g. church authorities, school principals, solicitors, doctors, members of parliament).
Public ancillary funds have the following additional features and requirements:
If you’d like to explore the establishment of a public ancillary fund, please contact the Moores not-for-profit team on (03) 9843 2158 or email@example.com.
They would be happy to provide more detailed advice tailored to your circumstances and objectives, and assist with the establishment of a public ancillary fund.
Disclaimer: This help sheet has been prepared by Moores, not-for-profit legal advisers. It provides a general guide and should not be relied on as (or in substitution for) legal advice.