Named Fund Expenses and Reimbursements Policy

1. Introduction

Australian Communities Foundation (ACF) is committed to supporting Fund Advisors as they work to achieve the mission of their Funds. ACF also understands Advisors may incur expenses related to their Funds which, if eligible, can be paid directly from the Named Fund or reimbursed to an individual who undertook the expense on behalf of the Named Fund.

2. Purpose

• The purpose of this policy is to ensure that there is consistency and transparency in related decision-making and clarity for Fund Advisors about the process. This includes:
  • clearly and transparently communicate ACF’s expense and reimbursement policy
  • outline the responsibilities of ACF and Fund Advisors when an expense request is submitted
  • describe how ACF decides and makes expense reimbursements.

3. Definitions

• Expenses must be ‘reasonable’ as per ATO and Public Ancillary Fund guidelines.
• The ACF Trustees have defined ‘reasonable’ as an amount equal to a maximum of 10% of the Named Fund’s balance at the end of the previous financial year.
  • This amount can be used for eligible expenses, across all expense categories.
  • This is in addition to ACF’s Fund Management Fee.
  • ACF understands that different Funds have different requirements, and therefore Funds requiring expenses beyond 10% per year are welcome to discuss their requirements with ACF.
  • ACF maintains the right, at its discretion, to approve expenses beyond the 10% limit.

• Expenses refers to the direct payment of an invoice from the balance of an ACF Named Fund.
• Reimbursement refers to reimbursing an individual or Fund Advisor for costs incurred on behalf of the Named Fund.
• Fund Partner or Grantee Organisation refers to not-for-profit organisations the Fund has supported or partnered with or is considering supporting.
• Benefit to the Fund refers to activity that may increase the visibility and outreach of the Fund (if desired by Fund Advisors) or that may improve the Fund’s mission by increasing knowledge in grantmaking.

4. Named Fund Expense Policy

• Funds can only claim expenses if the expense claim will not reduce their Fund balance below the minimum required balance of $10,000. A Gumnut Account cannot claim expenses.
• Expenses must be in service to the Fund and benefit its mission.
• Eligible expenses include:
  • Marketing for a Fund: Including website hosting, design and printing.
  • Grantmaking support: Including advisory committee-related expenses, relevant conference registration, grantmaking support organisation membership, grant research and evaluation. Approval of other grant research-related costs, such as purchase of publications, will be considered on a case-by-case basis.
  • Professional development of Fund Advisor related to increasing grantmaking skills and philanthropic knowledge.
  • Attendance at relevant conferences.
  • Insurance for fundraising events and activities, and other Fund-related activity as required.
  • Attendance at official philanthropic events as hosted by the Fund’s Partners or Grantee Organisations.
  • Travel to official philanthropic events or Grantee events once a year, including accommodation. Fund Advisors are encouraged to utilise affordable travel where possible.
  • Other expenses not listed that benefit the Fund’s mission and receive the approval of the Trustee.
• Ineligible expenses include:
  • Expenses that are not directly related to the mission of the Fund.
  • Expenses that are not reasonable, as per the ACF Trustee definition.

5. Fundraising Expense Policy

• Fundraising expenses must relate to a fundraising activity previously approved by ACF. See the Fundraising Policy for more information.
  
• Expenses relating to approved fundraising activities must total no more than 50% of the estimated fundraising income for that particular activity.

6. Procedure

• All requests for payment or reimbursement of Named Fund expenses direct from a Fund’s balance must be made using the provided Expense Claim Form and include support documentation of the expenses i.e., a receipt or invoice.
• The Expense Claim Form must be signed by a Fund Advisor of the associated Fund.
• Fund Advisors must be able to demonstrate that the expense or reimbursement is an eligible expense and to the benefit of the Fund.
• Expense payments must be made to a company, organisation or individual with an active ABN. This must be included within the documentation provided to ACF.
• All reimbursement requests must be accompanied by an invoice from a company, organisation or individual with an active ABN.
• All requests for reimbursement or payment of expenses must be approved by the Chief Executive Officer or their delegate.
• Reimbursements and expense payments will be entered into the next appropriate ACF payment cycle, which is fortnightly.

7. Conditions

• ACF reserves the right to reject any request for reimbursement or expense payment.
• ACF reserves the right to make expense payments outside of payment cycles and will make judgments based on the urgency of the expense payment.
• Expense Claim Forms will not be processed if they are not correctly completed and/or do not include the required supporting documentation.

Last updated: January 2025