For smaller community organisations, not having Deductible Gift Recipient (DGR) status can sometimes limit opportunities to receive tax-deductible donations.

Australian Communities Foundation (ACF) has introduced two new giving options through its Community Charity Trust that aim to make structured giving more flexible and accessible.

One of these, Future Fund Plus, may be particularly relevant to incorporated associations and other community organisations planning for their longer-term financial sustainability

What is Future Fund Plus?

Future Fund Plus allows charities, social enterprises and incorporated associations to establish an endowment fund through Australian Communities Foundation.

Importantly, ACF says organisations do not need to hold DGR1 endorsement themselves to establish a Future Fund Plus.

The fund can receive tax-deductible donations, including donations from structured giving vehicles, with funds able to be accessed for activities that align with eligible DGR1 charitable purposes.

In practical terms, this may create another fundraising pathway for eligible organisations that don’t currently have their own DGR1 status.

What could this mean for peer support groups?

For incorporated peer support organisations, particularly those exploring new ways to strengthen their long-term sustainability, Future Fund Plus may be worth investigating.

Rather than fundraising only for immediate activities or operating costs, an endowment is designed to build funds over time and support an organisation’s longer-term work.

It may also provide an avenue for eligible organisations to benefit from tax-deductible giving without obtaining DGR1 endorsement themselves.

This doesn’t mean that every organisation or activity automatically becomes eligible for tax-deductible donations. There are requirements around the purposes for which funds can be used, and groups interested in the option should speak directly with Australian Communities Foundation about their circumstances.

What about Named Fund Plus?

ACF has also introduced Named Fund Plus, which is primarily designed for individuals, families and groups wanting a structured way to give.

People can contribute to their fund, receive an immediate tax deduction and decide later where those funds will be directed.

ACF says the expanded model can support eligible activities undertaken not only by registered charities, but also by grassroots groups, associations, social enterprises and community initiatives.

For the peer support sector, this potentially creates more opportunities for community-led organisations and initiatives to benefit from philanthropic giving.

Is it worth exploring for your organisation?

If your organisation is incorporated, doesn’t currently have DGR1 endorsement, or is looking at ways to diversify fundraising and build greater financial sustainability, the new arrangements may be worth learning more about.

Australian Communities Foundation provides further information about eligibility, establishment and how each fund operates on its website.