Resources and FAQs
Who can apply for a Giving Sub-Fund Account?
FRRR’s Giving Sub-Fund Accounts may enable donors such as Item 2 DGR Donors e.g. PaFs, PuAFs, Trusts and Foundations; and non-DGR listed Donors (e.g. high net worth individuals) to support projects outside the remit of their own giving scope. They can also give donors an opportunity to work with FRRR beyond our usual operations and grants programs.
Applications for a Giving Sub-Fund Account are made for a specific purpose and are assessed via FRRR’s standard due diligence and assessment procedures (which are outlined in the Application Kit) recommended by the FRRR CEO, and endorsed for operation by the FRRR Board.
What does a Sub-Fund Account allow a donor to do?
FRRR’s Giving Sub-Fund Accounts have been designed to enable donors to formally partner with FRRR and utilise FRRR’s unique tax status to attract funding from any entity, as well as support projects outside the remit of their own operational scope, or which are beyond FRRR’s usual operations and grants programs.
As an Item 1 DGR entity (see ATO endorsement), FRRR is able to receive funds from Item 2 DGR entities as we are covered by Subdivision 30-B of the Income Tax Assessment Act 1997, and are specifically listed as a recipient for deductible gifts under section 30-105. FRRR can receive donations from non-charitable organisations and provide tax deductible receipts; these funds are received into the FRRR Public Fund.
What are the benefits of a Giving Sub-Fund Account?
A Giving Sub-Fund Account allows donors to:
- Reach non-DGR entities and fund economic development as a charitable activity.
- Utilise FRRR’s deep understanding and grant making expertise in funding rural communities.
- Simplify the management and distribution of funds, with simple application forms, grants payments and funding acquittal.
- Provide support to applicants and grantees via FRRR’s multiple online resources. If agreed, our staff can offer guidance, tips and feedback to grant applicants (e.g. some applicants might be applying for a grant for the first time and / or have difficulty with the language of forms. Access to or familiarity with technology, for example online systems, may also be an issue for some and does not limit grantees from applying).
- Once established, Giving Sub-Fund Accounts operate outside of FRRR programs and can fit with community needs, enabling a fast turn-around of funds to grant recipients.
- The Giving Sub-Fund Account can be used outside of formal grant rounds for ad hoc support of projects in line with the approved purpose of the Fund. Donors may choose to make one gift to FRRR to be managed as a multi-year grant program to organisation/s, or multiple grants for an issue, population or geography. Once a Giving Sub-Fund Account is established, Donors can request a variation or extension of purpose to the Fund, should giving preferences change.
What kinds of things can be funded via a Giving Sub-Fund Account?
It should be noted that all activities undertaken via a Giving Sub-Fund Account must be charitable as per FRRR’s remit. Note too that Giving Sub-Fund Accounts operate a giving or grants program in partnership with FRRR and make recommendations on how funds should be allocated through their giving program.
Who can apply for a Giving Sub-Fund Account?
Donors may advise FRRR on the areas of interest they wish their giving to support, by nominating a geographic region, issue and / or population cohort that will be the focus (specified purpose) of the Giving Sub-Fund Account in their application. Donors may then operate a boutique grants or giving program in partnership with FRRR, and make recommendations on how funds should be allocated through their giving program.
How are the funds invested? Do funds earn interest?
The Giving Sub-Fund Account is owned and managed by FRRR. It is important to note that Giving Sub-Fund Accounts are not invested by FRRR, but rather the funds are pooled with other money that is in FRRR’s Public Fund, which we hold in a prudent manner. This policy ensures that the quantum of funds is held and available for distribution at any time. Accounts with balances over $100,000 for any month are credited interest, which is paid quarterly. The assets will not be separately accounted for in the statutory financial statements of FRRR, although separate management accounts, known as Giving Sub-Fund Accounts, in respect of the assets, will be maintained for the purposes of internal management and identification.
Are there minimum amounts required to open an Account and restrictions on distributions?
No, there is no minimum value required to open an Account. FRRR is not bound by PaF legislation and as such, there are no minimum annual distribution requirements. However, FRRR recommends that a minimum of $10,000 is distributed annually to ensure that FRRR’s charitable purposes are met and rural communities benefit from its charitable status.
Who decides on where funds are granted or distributed?
FRRR will consider the Donor’s preferences when deciding on grants to be issued through the Giving Sub-Fund Account. However, as all donations to FRRR are a gift, FRRR has the overall responsibility for final grant decisions – FRRR is not required to respond to any request or indicated preference or to make a grant in accordance with a request or preference. All grants made through the Giving Sub-Fund Account must be assessed as charitable within FRRR’s purposes, as reviewed by FRRR.
How long do Accounts remain open?
Giving Sub-Fund Accounts are not established in perpetuity, but are operational for an agreed period of time, which may be renewed or extended upon mutual agreement. If the giving program does not go ahead as intended or the MOU expires, then FRRR would use any funds raised / held in the account specifically to support similar charitable projects in the nominated geographical area, and may work with the Donors of funds to determine grant recipients.
What fees does FRRR charge?
FRRR will deduct a 5% fee up to a limit of $5,000 per donation. This means that if a donation of $1M is made to a Giving Sub-Fund Account, FRRR will still only retain a maximum of $5,000 in fees. This is in accordance with the commitment of keeping fees at a reasonable and competitive level. FRRR deducts the fee from each donation received at the time of receipt. There are no other transaction, ongoing or annual account-keeping fees.
At times, FRRR will administer giving programs on behalf of, or in partnership with other funders, which may include Giving Sub-Fund Account holders. In this case, a management fee is applied either as a percentage or hourly rate, dependent on the scope of work and FRRR’s role. The funds received for distribution to this program do not have the 5% fee applied, as a higher fee is negotiated for the service, as per the Giving Sub-Fund Account's MOU Schedule.
If you have any other questions, contact FRRR on 03 5430 2399 or email email@example.com.