Charitable trusts

Help WaterAid to help more people gain access to safe water and sanitation.

Credit: WaterAid / Marco Betti

If you would like further information about how to leave a bequest to WaterAid please contact us and we will send you our legacy brochure.

Charitable trusts are perpetual trusts established with the aim of benefiting charitable purposes within the Australian community. Trust Company is able to establish the following types of trusts for clients.

Public Funds

Public funds are offered by trustee companies or established individuals or organisations by will or deed. Further donations must be invited from members of the public.

The capital is invested and the income distributed each year. Distributions from the fund can only be made to charities that are deductible gift recipients and are specifically listed or determined as item one in section 30-15 of the Income Tax Assessment Act of 1997. The charities must also have endorsement for charity tax concessions from the Australian Taxation Office.

Trust Company established a public fund, the Trust Foundation, in 1985 for this purpose.

Members of the public can make a gift or bequest to the Trust Foundation and indicate their preferred beneficiary for the income. Alternatively the donation can be pooled and applied to a specific cause such as the aged, the disabled, medical research or other charitable purpose. The donor may wish to establish a management account within the Trust Foundation and add further gifts over time.

Prescribed Private Funds

A prescribed private fund (PPF) is a perpetual charitable fund established during the life of the donor. Gifts to the fund are tax-deductible. The capital is invested and the income distributed each year. Distributions from the fund can only be made to charities that are deductible gift recipients and are specifically listed or determined as item 1 in section 30-15 of the Income Tax Assessment Act of 1997. The charities must also have endorsement for charity tax concessions from the Australian Taxation Office.

A PPF allows individuals, families and companies to build a perpetual fund that can support their preferred eligible charities over time. An Accumulation Plan must be submitted to the ATO and the capital can not accumulate above CPI increases. A donor may bequeath to the PPF after their death without affecting the Accumulation Plan.

Private Charitable Trust

For some donors a tax-deduction is not a factor in their giving. Alternatively they may wish to distribute funds to individuals or non-DGR charities. A private charitable trust can be established via a will or deed for this purpose. The capital is invested and the income distributed each year to charitable purposes.

Encouraging Giving through Tax Incentives

Visit the ATO website for more information on tax incentives for giving.

It is now possible for the donor to spread the tax deduction for the gift across up to five years. Such donations can be part of the donor's financial plan.

Information is supplied by the Trust Company Limited.

Trust Company Ltd provides Philanthropic Services, Wealth Transfer Planning and Financial Services. WaterAid is eligible to receive gifts from each of these options.

For further information please contact Clare Stanford, Head of Philanthropy on 02 8295 8596 or email her at CStanford@trust.com.au.  

Disclaimer

This information is of a general nature only and should not be relied upon as it has been prepared without taking account of your objectives, financial situation or needs. It is not intended to constitute investment, legal or taxation advice. Accordingly, before acting on the information you should consider its appropriateness having regard to your objectives, financial situation and needs.

While the information is given by Trust Company Limited (Trust) in good faith, it does not warrant that it is accurate, reliable, complete, or free from error or omission. Subject to any terms implied by statute which cannot be excluded, Trust and its Directors, employees and associates do not accept any responsibility for errors in, or omissions from the information.