Frequently Asked Questions (FAQ)

Browse the subheadings below to find the answer to your question

Giving

Setting up a trust or foundation

A charitable or philanthropic foundation (also known as a charitable trust) is a legal vehicle which allows the transfer of gifts from an individual, family or corporation to a charity. It can be broad in purpose, or it can be directed to make grants to specific organisations, purposes and/or geographic locations. The initial sum is invested, and known as a corpus; it is the income from this investment which is given to charitable organisations in the form of grants. There are other types of foundation; some act as "pass-through" foundations, collecting donations from a number of sources and then passing them on, while others use some of their income to run their own programs as well as making grants.

A charitable trust requires much thought, care and planning, and will also require a substantial capital sum. There will also be establishment costs and ongoing administrative costs. There are a number of legal structures which can be used for the creation of a foundation, and your needs will influence the type of structure you establish. There is no "one size fits all" solution or step by step kit. You will need to seek legal advice. Philanthropy Australia can help clarify what your options are, and assist you in determining the causes you would like to give to and focusing your intentions, but the trust deed will need to be drawn up by a legal expert. Downloading our Guide to Giving, available in April, will give you a list of recommended experts.

If you wish to establish a foundation which is principally to collect donations for the financing of a single organisation, the type of organisation you need to establish is a Gift Fund. You can find more information on Gift Funds on the ATO website.

You may wish to browse our Research & Information section or purchase Publications for for further information.

Legal requirements

The legal requirements of your foundation will depend on the legal structure you use. Philanthropy Australia can refer you to legal experts who will be able to offer the best advice on the most suitable structure for your needs.

You may wish to browse our Research & Information section or purchase Publications for for further information.

Financial requirements

The financial requirements for a foundation will vary depending on the legal structure you use. A rough guide is that a private foundation cannot generally be established without a corpus of at least $100,000 and possibly up to $1 million depending on the structure used. A sub-fund of a community foundation will generally need an initial donation of at least $5,000.

You may wish to browse our Research & Information section or purchase Publications for for further information.

Trustees/boards

Trustees are the persons who are legally responsible for the trust. Trustees can be a trustee company, or family members, or a company limited by guarantee. Trustees are responsible for the investment decisions and for ensuring that income is distributed in line with the stated purposes in the trust deed.

There are laws regarding the types of person who are eligible to be trustees of foundations, although again much is dependent on the type of foundation you establish. Trustee laws vary from state to state.

You may wish to browse our Research & Information section or purchase Publications for for further information.

Contacting grantseekers

How you will select grant recipients will depend on many factors including your available administrative time and resources. Some givers will choose their own beneficiaries, whereas others with access to administrative resources will choose to receive applications and allow grantseekers to self-select by offering them information about funding preferences.

If you wish to receive applications, Philanthropy Australia would welcome your listing in the Australian Directory of Philanthropy, which is a listing of trusts, foundations and businesses which give philanthropically in Australia. We can also assist with our wide range of services for givers.

For those who would like to select their own grant recipients, there are several resources which provide information and listings of charities.

OurCommunity.com - www.ourcommunity.com.au
OurCommunity have an extensive listing of charities and also offer an online donation service.

ProBono Australia - www.probonoaustralia.com.au
Pro Bono have a listing of charities on their website, and they also produce their listing as a booklet which is distributed free of charge to solicitors, accountants, corporations, philanthropic trusts and other decision makers.

Auscharity - www.auscharity.org
AusCharity list some charities on their website and also distribute this listing as The Charities Book.

Givewell - www.givewell.com.au
Givewell is a research service for informed giving, which conducts research on charities and encourages a more accountable, efficient and effective charitable sector.

Leaving money in a will/bequest

Leaving a bequest means that you have the use of your funds or property during your lifetime. You may choose to leave your bequest freely - "no strings attached" - so that the charity can apply the money to the area of most need. It is also possible to leave a bequest with a specification that it is used for a particular purpose - for example, to establish a scholarship for rural students. In this case, it may be wise to speak to the charity beforehand to discuss your plans.

You may wish to browse our Research & Information section or purchase Publications for for further information.

Joining a Community Foundation

The Community Foundations Gateway will assist you to find a community foundation in your area. See our Community Foundations page for more details.

Different ways to give

Our Getting Involved section will provide you with different opportunities to become philanthropic including financial donation, volunteering, donation of skills, and donation of assets.

Finding a charity to give to

There is no publication or website with a comprehensive list of all charities in Australia . There are books which contain a small percentage of charitable organisations, who generally pay to be included - these books are often distributed to legal firms, financial planners, corporations and other organisations and individuals who are likely to be making decisions about the distribution of funds.

Several websites provide listings of charities. Again, these are not comprehensive, but some of them are free for charities to list and therefore will have more information.

www.ourcommunity.com.au

www.probonoaustralia.com.au

www.auscharity.org

If you wish to receive a tax deduction for your donation, you should check whether the charity in question is a DGR (Deductible Gift Recipient). The Australian Business Register will enable you to search for a specific organisation by name, ABN and/or location and to ascertain its DGR endorsement status.

Trustee Companies

Trustee companies are profit-making companies which provide a range of financial services and are empowered to act as professional trustees. They are able to execute wills and administer charitable trusts. Trustee companies in Australia administer a large number of charitable trusts and foundations, including some of the largest ones in Australia.

Making contact with other trusts/foundations (national or international)

Available resources

Seeking funding

Individuals, where to find help

It is very difficult for individuals to source funding from philanthropic foundations in Australia , as most of them are limited by law to funding organisations and cannot legally make grants to individuals.

Most of the philanthropic funding available for individuals from foundations is in the form of scholarships, fellowships, research grants or travel grants. If you are looking for funding to assist with personal costs such as payment of household bills, compassionate funding, medical costs or emergency funds, you should seek assistance from a charity. Philanthropic trusts and foundations generally cannot assist with this kind of problem. A comprehensive list of charitable organisations which provides assistance would be impossible; the best place to start is to look at your local Yellow Pages, where services local to your area will be listed.

Some charitable organisations provide No Interest Loans Schemes which are intended to assist low income people with the purchase of household items.

Philanthropy Australia has a page dedicated to aiding individuals seeking funding here. You can find links to other websites with information on assistance for individuals here.

Wanting funds to set up a business

Philanthropic foundations are generally legally unable to provide funds for businesses or for-profit entities. There are a small number of government and corporate awards and grants available for businesses. Philanthropy Australia has a page dedicated to aiding businesses seeking funding here. You will find more information on the following websites:

Australian Business Portal

Yellow Pages Business Ideas Grants

Wanting to set up a charity (seeking funds)

With over 35,000 charities already in Australia , it may not be worthwhile establishing another one. Your first step should be to ascertain that you are not duplicating resources and activities which are already being carried out in your area; it may be more useful to join or volunteer for an existing organisation than to start a competitor.

If you are genuinely interested in starting a charity, you will need to make a large commitment of time and effort, and probably a financial commitment as well. You don't want all that effort to go to waste, so it is essential that you ensure the community has enough capacity to support your organisation's activities and that there is enough potential for it to raise funds.

It may be necessary to carry out a feasibility study or other research in order to determine whether there is a genuine community need for the services you intend to provide, whether these services are being carried out elsewhere, and whether there is sufficient fundraising potential for your organisation to survive. While your intentions are good, and the Australian public is generous and compassionate, there may simply be so many already established charities in your field that creating another would unnecessarily duplicate resources and create another costly administrative structure. Perhaps you could offer your ideas and experience to an already existing charity, provide your services as a volunteer, or try to obtain some work in the charitable sector instead.

If you want to attract funding from philanthropic trusts and foundations or to offer people a tax deduction for their donation, you will want to have your organisation endorsed by the ATO as a DGR (Deductible Gift Recipient). See our FAQ on DGRs for more information [LINK] You will also want to ensure that your organisation is registered to raise funds in your state - see our Fundraising FAQ for more information [LINK]

You will find plenty of information on the ourcommunity.com website about starting a community group or charity. Their 'Management Centre' includes plenty of fact sheets and guides, most of which are free. www.ourcommunity.com.au

The Federal Government also offers a site with information specifically for community groups - www.community.gov.au

You may wish to browse our Research & Information section or purchase Publications for for further information.

How to go about fundraising

There are many websites that offer tips on fundraising, as well as professional organisations that offer assistance and advice.

Regulations governing fundraising differ from state to state. You will want to ensure that your project or organisation is registered to raise funds in your state. This is handled by different authorities in different states.

The Fundraising Institute of Australia is the professional association for fundraisers in Australia . They have a range of services for their members and the website contains information on professional fundraisers and consultants.

www.fia.org.au

OurCommunity have a management and fundraising centre to assist charities and not-for-profits with many goals. Some of their fact sheets and other information sources are available on their website for free.

www.ourcommunity.com.au

Scholarships

Most Australian trusts and foundations are legally unable to make grants to individuals. Some trusts have been established as scholarship trusts and are able to provide grants for specific purposes, usually study at a specified institution or for a particular course. Criteria for scholarships will vary depending on the individual trust; some are for especially talented students, others for students from a low income background, and others will specify by gender, ethnic background, religion or geographic region.

Primary and secondary education

The first place to begin is always with the school your child will be enrolled at, or wishes to study at. Some schools have scholarships which are managed internally; others will have information about other scholarships which may be available.

Tertiary education

For any tertiary scholarships, the first place to begin is the Scholarships Office at the institution you intend to study at. They will have access to information on scholarships which are specific to that institution, and will often have application forms and other relevant information.

Postgraduate study

Jason - http://www.jason.edu.au/ - is the primary database for postgraduate scholarships in Australia , covering both Australian students wishing to study at home or overseas, and international students wishing to study in Australia.

Travel

Travel is generally not a high priority for most trusts and foundations. There are a few exceptions which provide funding for people to study overseas, to pursue a research project internationally. In most cases the grant is provided to the individual's associated institution (such as a university) rather than to the individual directly. Travel to participate in competitions or sporting events will not be considered a priority for the majority of foundations.

You can find a link to those organisations which may provide travel funding, or which list other funding organisations, on our page for individuals.

Organisation seeking funding

Are you seeking funding from Australian philanthropic trusts and foundations? The steps you should follow are simple:

Please note that Philanthropy Australia cannot provide legal advice.

Ascertain the charitable status of your organisation. The Australian Taxation Office's website has information to assist non-profit organisations.
Using The Australian Directory of Philanthropy, make a shortlist of foundations which may be able to fund your project.
Contact each of these organisations individually to obtain their most current set of guidelines.
Consider attending a Grantseeker Workshop. These provide grantseekers with information on how to research potential funders, and how to most effectively frame grant applications.
Apply to each organisation individually, being sure to follow their guidelines. Ensure that you include all the information the grantmaker requests, that you frame your application in the manner they request, and that you do not apply to them if you do not fit their guidelines.

The Australian Directory of Philanthropy lists over 400 Australian trusts, foundations and corporate givers with their contact details and funding preferences. The Directory is intended to assist you to locate foundations which may be able to fund your organisation.

For more information, see Philanthropy Australia's page dedicated to aiding organisations seeking funding.

Groups seeking funding

Are you seeking funding from Australian philanthropic trusts and foundations? The steps you should follow are simple:

Please note that Philanthropy Australia cannot provide legal advice.

Ascertain the charitable status of your organisation. The Australian Taxation Office's website has information to assist non-profit organisations. This is important because many foundations have criteria about the types of organisations they can legally fund.
Using The Australian Directory of Philanthropy, make a shortlist of foundations which may be able to fund your project.
Contact each of these organisations individually to obtain their most current set of guidelines.
Consider attending a Grantseeker Workshop. These provide grantseekers with information on how to research potential funders, and how to most effectively frame grant applications.
Apply to each organisation individually, being sure to follow their guidelines. Ensure that you include all the information the grantmaker requests, that you frame your application in the manner they request, and that you do not apply to them if you do not fit their guidelines.

DGR Status

Some organisations are entitled to receive tax deductible gifts; these are called DGRs (deductible gift recipients). An organisation's eligibility for DGR status is determined by income tax law. Some DGRs are listed by name in the income tax regulations; for other organisations to be eligible for endorsement as a DGR, they must fall within a general category set out in the income tax law (examples include public benevolent institutions, public universities or health promotion charities). All DGRs need to be endorsed by the Tax Office before their donors can claim tax deductions for their gifts.

In order to be endorsed as a deductible gift recipient an entity must have an ABN, maintain a gift fund, and apply to the Tax Office for endorsement. Please see our fact sheet on Applying for DGR Endorsement for more information.

Internationals seeking funding

The vast majority of Australian foundations do not fund outside Australia; in many cases they legally cannot do so, and those foundations which do fund projects overseas will usually be funding Australian-based organisations to carry this work out. If your organisation is located outside Australia you are much better off to seek funding elsewhere. The Australian Directory of Philanthropy lists only a very small number of foundations which fund overseas and almost all of them are not Australian but are US-based funders.

If you are an individual who is not an Australian citizen and you wish to obtain a scholarship to study in Australia, you should check with the university or organisation at which you wish to study at for details of scholarships they may administer for foreign students. You should also check the Australian Government's official Study in Australia site at http://studyinaustralia.gov.au/sia/splash2.aspx .

If you are not an Australian citizen and you wish to obtain funds for study outside Australia or for other purposes, Australian foundations are very unlikely to provide you with funds, and we cannot provide you with advice, assistance or referrals. Please note that Philanthropy Australia does not make grants.

Seeking funding from international sources

There is no comprehensive source for all international philanthropic organisations. There are some important considerations to be made when attempting to seek funds from sources outside Australia. Like Australian foundations and companies, the majority of overseas philanthropic organisations will be providing funds within their own country and community. Most Australian projects which attract funding from international sources will have some global or international significance, for example: medical or scientific research; environmental and ecological projects; indigenous projects; international development; and some cultural projects.

Some international foundations which provide funds within Australia are listed in the Australian Directory of Philanthropy. You might also like to consult some of the websites listed on our Links page, including the peak bodies for philanthropy in other countries.

Resources available at Philanthropy Australia

Other organisations that could help (not Philanthropy Australia)

See our Links page for links to other organisations involved with the philanthropic and not-for-profit sector, as well as funding organisations.

Research & Statistics

How much do trusts & foundations in Australia give?

It is impossible to give an accurate figure for the total disbursement of Australian trusts and foundations, as there is no public reporting requirement and such figures are not collected by the ABS. The philanthropic sector is estimated at over 1200 trusts and foundations disbursing up to $500 million per annum.

Browse the Research & Information section for further information.

Is it true that philanthropy in Australia is increasing, and why? What are the current trends?

Philanthropy in Australia is definitely increasing. Current statistics indicate:

over 340 Prescribed Private Funds (PPFs) established since 2001
a 16.2% increase in tax deductible donations in the 00/01 financial year; a 3.5% increase in the 01/02 financial year; and a 5% increase in the 02/03 financial year.

Tax changes which may explain the increase include:

Expansion of the type of gift that may be tax deductible to include property.
The establishment of Prescribed Private Funds (PPFs), a new legal structure for giving. There are now over 340 PPFs, and as at 30 June 2002 PPFs had over $135 million under investment.
In the year 2002-03 two taxation incentives were added - streamlined employee payroll giving, and conservation covenants over land tax deductions.

Source: Giving Australia, October 2005, available from www.partnerships.gov.au

Browse the Research & Information section for further information.

Leading grantmakers

See our Factsheet on Facts About Australian Foundations for more information on the largest private trusts in Australia.

Charities statistics

See our Factsheet on The Nonprofit Sector in Australia for more information on the size and shape of the charitable sector in Australia.

Individual giving statistics

Giving by individuals stands at approximately $5.7 billion per annum in the 12 months to January 2005.

13.4 million Australians, 86.9% of the adult population, made donations
The median is $100 per person; the mean is $424 per person
Religious organisations receive the largest number of donations - 36.1% of total individual donations - followed by health (14.2%), international aid (13.3%), community/welfare organisations (12.8%), education (6.6%), environment and animal welfare (4.8%), sporting and recreational groups (3.7%) and arts or cultural associations (2.3%). Other not-for-profit sectors make up 6.2% of total donations.

Source: Giving Australia, October 2005, available from www.partnerships.gov.au

Corporate giving statistics

Giving by business stands at $3.3 billion for the 2003-04 year.

525,900 businesses, or 67% of all Australian businesses, made a donation
Business giving consisted of 68% in money, 16% in goods and 16% in services.

Source: Giving Australia, October 2005, available from www.partnerships.gov.au

Researching corporate funders

How to contact Foundations/Charities/Corporates

Orders & Accounts

Refunds and transfers on workshops

For cancellations less than 72 hours before workshop, no refund is available but substitute delegates are welcome.

For cancellations more than 72 hours before workshop, workshop fee will be refunded less an administration charge of $10.

Workshop places are not transferable to another date.

See the workshop page for further information.

Haven't received publication/invoice

Please allow 14 days for delivery of hard copy publications. Access to the Online Directory of Philanthropy is not instantaneous and requires manual entry and assignment of passwords, so please allow up to 5 working days for access. Tax invoices will be mailed with your publication.

If you have not receieved your publications after this time, please contact us.

Want to pay through invoice

Philanthropy Australia requires prepayment before sending publications. We can issue a pro forma invoice if you require an invoice to raise a cheque payment; please fill our an order form and not on it that you require a pro forma.

Want to purchase publication

Our publications can be purchased via our secure online payment system, or you can download an order form and fax or send it into us with payment. We require prepayment before dispatching publications. Please see our Publications page for more information.

Check password/subscription

Subscriber usernames and passwords are managed manually through the Philanthropy Australia office. If you have forgotten your login details, contact us either via phone (during office hours) or email and we will refresh you straight away.

Return used/unwanted publication

Philanthropy Australia accepts returns on publications only if the publication in question is damaged or otherwise unusable. We do not refund used publications. Please contact us if you believe you are eligible for a return/refund.

Electronic Funds Transfer

Philanthropy Australia is unable to received Electronic Funds Transfers (EFT). You may pay for our products and services by cheque, credit card, money order or cash (if in person).

About Philanthropy Australia

What is The Australian Directory of Philanthropy?

This seminal resource lists more than 420 trusts, foundations and corporate giving programs. It is the most comprehensive reference on sources of non-government funding in Australia. The Directory is available in a hard copy or as an annual subscription to a web-based online version. See the Directory page for more details.

How the online directory works

The Online Directory is accessible through the Philanthropy Australia website via any computer with internet access. The print version of the Directory is taken from the online database, and so both versions offer the same content.

However, the Online Directory is being constantly updated as we get new information - such as new trusts and foundations choosing to be listed, changed contact information, or changed grant application information. Therefore the Online Directory is more up-to-date than the print version, and becomes more so as time goes on (the print version is only published every two years).

Another benefit of the Online Directory is that it can be searched by keyword for specific aspects particular to a grantseeker's project. The user can specify areas of interest, legal requirements, grant exclusions and geographic scope (to name a few) they would like to search for, bringing up a list of trusts or foundations that fulfil those specifications.

How often the directory is published

The print version of the Australian Directory of Philanthropy is published every second year; the online edition is constantly updated.

Prices

The Directory is available in two formats:

* the book costs $65.00 plus postage
* a subscription to the Online Directory is available for the special price of $75 per annum.

You may purchase the Directory via our Publications page.

Information it contains, and how that can be used

The Australian Directory of Philanthropy contains the following information:

An alphabetical listing of over 420 grant-making organisations detailing their fields of interest, contact information, summary of purpose, geographical scope, legal limitations, grant restrictions and application procedures
information on preparing submissions and applying for grants
international foundations which fund in Australia are included
a list of further resources for grant-seekers

You may view a sample entry here.

The Directory is useful for the following people.

Grantseekers
The Directory is most useful for charitable organisations seeking funding for a project. Please note that most trusts and foundations in Australia are restricted by law to funding organisations that have Deductible Gift Recipient (DGR) Status, and cannot fund individuals or groups which do not have DGR Status. (For more information on DGR Status, please see the ATO website.)
Foundation and not-for-profit sector staff
The Directory is a key tool for those working in the not-for-profit; especially for those seeking to map the sector.
Researchers & Journalists
The Directory is useful for researchers & journalists looking for information on philanthropic giving in Australia, or for the contact details of trusts and foundations in Australia.

What is the Resource Centre Subscription?

Any individual or organisation may subscribe to the Philanthropy Australia Resource Centre. The following people may particularly find it useful:

* Fundraising Managers
* Media/Journalists
* Those studying the NFP sector
* Grantmakers researching funding areas

Please see our Research Centre Subscription page for further information.

What does Philanthropy Australia do? What does it not do?

Philanthropy Australia is primarily an organisation for givers. We Facilitate, Advocate, Educate, Communicate, and Promote giving. We are an independent organisation and do not receive regular government funding.

Philanthropy Australia does not:

provide grants or financial assistance
act as an intermediary between grantmakers and grantseekers
write applications for funding for charitable organisations
assist in establishing charities
provide advice on general fundraising
provide detailed, free-of-charge research for people or organisations seeking funding
assist charities and individuals to bypass the usual channels for seeking funding

What membership entails, if you're applicable to become a member

As the peak body for philanthropic giving in Australia, Philanthropy Australia promotes giving and represents those that give to the community. We have several categories of membership for philanthropic bodies who are significantly involved in the practice of grantmaking or community investment, individual donors, affiliated organisations and charitable organisations. Please see our Membership section for a full explanation of eligibility, categories, costs and benefits.

[Please note that customers subscribing to the Australian Directory of Philanthropy Online and the Resource Centre are classified as Subscribers.]

Workshops

A Philanthropy Australia Grantseeker Workshop is a half-day introduction to the process of seeking funding from philanthropic trusts and foundations. The workshop is designed for community groups, charities and non-profit organisations who plan to seek grants from philanthropic trusts and foundations.

How frequently are workshops held?

Workshops are conducted approximately every three weeks in Melbourne, twice yearly in Sydney and several times a year in other centres. Occasionally workshops are provided on demand for university groups, peak bodies or other groups; if you are interested in holding such a workshop, contact us for details of costs and availability.

Where are workshop held?

Melbourne workshops are conducted at a venue in Collins St, Melbourne; interstate venues vary. See our workshop page for further details.

How much do workshops cost?

Grantseeker workshops cost $165 per participant. Customised workshop costs vary depending upon location, preparation required and other factors; please contact us for more information.

Would a workshop be valuable for me?

Our grantseeker workshops are designed for community groups, charities and non-profit organisations who plan to seek grants from philanthropic trusts and foundations. On completion of the workshop participants will have an understanding of how to research and approach potential philanthropic partners with targeted, effective grant submissions. The participants are supplied with a detailed handout which includes sources for further information, suggested websites and helpful publications.