What is a public ancillary fund?

Sydney Community Foundation is a Public Ancillary Fund

A Public Ancillary Fund is a form of ancillary trust fund designed to encourage philanthropy by providing the public with flexibility to support a wide range of Deductible Gift Recipients.

The Sydney Community Foundation is a Public Ancillary Fund, one of the two types of ancillary funds entitled to endorsement as a Deductible Gift Recipient (DGR) by the Australian Taxation Office. A Public Ancillary Fund collects tax deductible donations from the public and distributes to DGR’s covered by Item 1 of the Table in Subsection 30-15 of the Income Tax Assesment Act 1997. The other type of ancillary fund is a Private Ancillary Fund.

A Public Ancillary Fund has the following characteristics:

  • It exists only to collect, hold and distribute gifts to Item 1 DGRs and must not carry on other activities
  • The public must be invited to contribute to the fund once a year
  • The public participates in the governance of the fund
  • It cannot make gifts to other private or public ancillary funds.

During each financial year, a Public Ancillary Fund must distribute at least 4% of the market value of the fund’s net assets (as at the end of the previous financial year).

The Trustee must prepare and maintain a current investment strategy for the fund. The investment strategy should set out the investment objectives of the fund and detail the investment methods the Trustee will adopt to achieve those objectives.