Gift Acceptance Policy

1. Introduction

Australian Communities Foundation is committed to making donations to a Named Fund as seamless as possible while ensuring compliance with operational and regulatory requirements.

2. Purpose

• The purpose of this policy is to set out for donors and Fund Advisors the basis on which the Foundation accepts gifts to support them to give effectively.
• The Foundation may accept a variety of gifts, both from active donors and as gifts in Wills.
• Assets donated to establish, grow or contribute to Named Funds at ACF are irrevocable gifts. They become the Foundation’s property and its Board carries the legal responsibility for ensuring that donations are used for charitable purposes. If a donation is made in error, please refer to the Return of Donations Policy.

3. Related Policies & Procedures

This policy should be read in conjunction with:

• Return of Donations Policy
• Gifts in Wills Policy

4. Gift Acceptance Policy

• Gift types that the Foundation accepts as outright gifts:
  • Cash of any amount (a minimum level is required to establish either a Gumnut Account or Named Fund).
  • Publicly traded shares. ACF will have full discretion over the sale of any gifted shares.
• Gift types that are accepted at the discretion of the Foundation. These are subject to review by the Chief Financial Officer (CFO) and Investment Committee and approval by the Board:
  • Closely held securities (generally held by one or a small group of shareholders and not generally traded publicly)
  • Real estate
  • Any other assets, as long as the items are sellable and at a value that offsets the cost incurred to sell
• Cash is ACF’s preferred gift type due to its ease of use and ease of accounting.

5. Procedure for accepting gifts other than cash or traded shares

• Prior to the acceptance of any non-cash gifts, all gifts must be assessed for the ease with which gifts are convertible to cash prior to being received by ACF (e.g. listed shares). This can often be mutually beneficial to ACF and the donor by reducing admin and providing certainty to the donation amount.
  
  
• If not readily convertible to cash, the CFO will review the proposed gift and estimate its value and the cost to sell or maintain the asset
  • The CFO will make a recommendation to the Investment Committee to accept or not accept the gift.
  • If approved, the gift will be accepted by ACF.
• Following acceptance of any non-cash gifts, ACF will issue a receipt to the donor recognising the donation. At the time of issue, the receipt will not attach any monetary value to the gift. It will be the donor’s responsibility to understand the amount eligible to be claimed as a tax deduction in their personal income tax returns.
  
  
• At ACF’s discretion, the value of the gift that is credited to a donor’s Named Fund will be the lesser of:
  • In the event the asset is retained, the market value of the Property on receipt. This value may fluctuate over time; or
  • The value of the Property upon any subsequent sale.
• If a valuation is required, this will be undertaken at the donor’s expense. ACF may otherwise rely on a valuation certificate issued by the ATO (if applicable).
• Depending on the donor’s own individual circumstances, gifts will likely result in tax implications, including potentially being liable for capital gains tax.
• If still unsure, donors should seek advice from a licenced financial and/or tax advisor. ACF does not provide financial or taxation advice.

6. Conditions

• ACF reserves the right to not accept gifts of any type.
• ACF reserves the right to conduct due diligence on the gift or the source of the donation to ensure there are no legal, ethical, or reputational issues in accepting the gift.
• ACF cannot provide financial advice to potential donors. ACF recommends any potential donor receive advice prior to making a donation.
• Gifts may not be accepted if:
  • The asset cannot be easily sold or liquidated
  • The process of selling the asset will incur costs above the estimated value of the asset
  • There are any questions due to the legal ownership status of the asset.
  • There are ethical or reputational considerations to accept the gift.

Last updated: January 2025