The Australian Government has just announced changes to the guidelines for private and public ancillary funds, incentivising donors to give support at a time when communities across Australia need it most.
Recognising the impact COVID-19 may have on charitable giving, the Government has announced a credit will be given to public and private ancillary funds whose total distributions across 2019-20 and 2020-21 are at least four percentage points above the minimum required level.
This credit will be equal to half the percentage points by which the fund exceeds the minimum and can be used to reduce the minimum requirement by up to 1% in 2021-22 and future years until exhausted.
Currently, public ancillary funds are required to distribute at least 4% of their fund to eligible charities each year, while private ancillary funds must distribute at least 5%.
The Australian Tax Office and peak body Philanthropy Australia have provided the following examples to demonstrate how this will work in practice.
Get in touch to discuss how we can support you to make the most of these new guidelines.