Fund Succession Policy

Home

Policies

1. Introduction

Australian Communities Foundation (ACF) encourages Fund Advisors to establish succession plans to ensure their philanthropic intentions and activities can continue beyond their active involvement.

2. Purpose

This policy outlines ACF’s requirements for managing Named Fund succession arrangements.

3. Definitions

Original Primary Fund Advisor – The person/s who established the Named Fund and is/was the primary contact for it.
Named Fund Successor – The persons nominated by the Primary Fund Advisor in their succession plan to continue to be the contact person for all matters relating to the Named Fund and to be able to make recommendations regarding the Fund’s preferred areas of interests. Once appointed, they become the primary Fund Advisor.
Statement of Wishes – A document that outlines the Primary Fund Advisor’s preferences for the future operation of the Named Fund once they are no longer able to be involved.
ACF Impact Fund – ACF’s flagship collective giving initiative, which brings together hundreds of funders to support the boldest solutions to the biggest issues across ACF’s Impact Areas.

4. Named Fund Succession Policy

All Primary Fund Advisors are encouraged to identify the names and contact details of Named Fund Successors on their establishment form if these are known.
ACF will support the Primary Fund Advisors to develop a succession plan. Donors are encouraged to have a Statement of Wishes on file, outlining Successor contacts and specifying whether they want the Named Fund to continue with annual distributions aligned to its preferred areas of interest.
This statement is a simple way of informing ACF of the Fund Advisor’s wishes relating to preferred areas of interest and Successor contacts. These plans can be updated at any time by submitting a written request to ACF.
Starting on 1 July 2024, all newly established Funds must name a Successor. ACF will be the default Successor if none are identified.

5. Maintaining a Named Fund

If a Successor is appointed to manage the Fund, a minimum of $10,000 must be maintained in the account at all times.
Successor Fund Advisors have the power to change the Fund’s areas of interest and priorities and maintain full powers over the Fund, unless expressly forbidden by the Original Primary Fund Advisor according to a Statement of Wishes. This is subject to the Trustees discretion.
If the Original Primary Fund Advisor wishes their Named Fund to continue but does not wish to nominate a Successor, they may request that ACF continue to make regular grants in line with any stated preferred areas of interest. The Named Fund must a balance of $100,000 for ACF to conduct granting on its behalf. This is also known as Legacy Grantmaking.
The Named Fund Successor may request annual grants to be made in line with ACF’s granting initiatives through the ACF Impact Fund.
If a Named Fund does not have a succession plan (e.g. a Statement of Wishes on file), a designated Successor, or drops below $100,000, it will be closed. Funds will be transferred to the ACF Impact Fund for distribution in line with ACF’s granting initiatives.
A Fund Advisor may request to close their Fund if they are no longer able to manage it. The Fund’s remaining balance can be granted to organisations, transferred to another Named Fund, or allocated to the ACF Impact Fund.

6. Succession Disputes

If there is ever a dispute between Successors or current Fund Advisors related to the direction, granting, and focus areas of the Fund, ACF maintains the right to decide how to adjudicate disputes.
If Fund Successors or current Fund Advisors wish to split the Fund, ACF will listen to all Fund Advisors but maintains the right to decide how to adjudicate.
If a formal agreement of Successor or current Fund Advisors is made, ACF will attempt to abide by that agreement as best as possible.

Last updated: January 2025