Australian Bushfire Appeals — Private Ancillary Fund

Heartbreaking footage of families losing everything as bushfires rage throughout parts of the country has left many of our Oxygen Private Clients (OPC) family anxious to know how they can help those affected.

Lives have been lost, homes and businesses have been destroyed and thousands of people are stranded or in limbo as fires burn in parts of Victoria, New South Wales, Queensland, South Australia, Tasmania and Western Australia.

There are many organisations, charities and people coordinating donations to victims.

We have had a number of enquiries from clients as to how they can help either personally or by way of making grants from their private family foundations

Here's how you can help from your Private Ancillary Fund (PAF).

Who can I make grants to?

PAFs can only make distributions to Deductible Gift Recipient (DGR), endorsed Item 1 charities and, if incorporated in the Deed, to Government entities that have a purpose that is "charitable" i.e. public hospitals and public museums.

DGR Endorsement

A Deductible Gift Recipient (DGR) is a fund or organisation that can receive tax deductible gifts. DGR endorsements are managed by the Australian Taxation Office (ATO). There are two distinct categories of DGR endorsement. It is important to understand this as PAFs are restricted to funding only one of these types.

DGR Item 1 -- known casually as a 'doing' DGR. Most charitable organisations will fall into this category.

DGR Item 2 -- known casually as a 'giving' DGR. This category includes public and private ancillary funds. These organisations exist only for the purposes of providing donations to 'doing' DGRs. DGR Item 2 organisations must only provide funds to DGR Item 1 organisations.

To check the DGR status of an organisation you can check the Australian Business Register at or contact your OPC advisor to assist.

If you wish to donate to a DGR Item 2 you can still make a tax effective donation, just not from your PAF. You can make a donation to a DGR Item 2 personally from an individual or entity in your family group.

So how can my PAF help?

For those with money to give from a PAF, donations made directly to charities such as the Salvation Army, the Australian Red Cross and state based brigades such as NSW Rural Fire Service and Victoria's Country Fire Authority will go towards bushfire efforts and are all DGR Item 1 endorsed charities.

With regards to supporting animal rescue efforts any of the RSPCA's bushfire appeals are DGR Item 1 endorsed.

The Victorian Bushfire Appeal which was launched by the Victorian Government in coordination with the Bendigo Bank's Community Enterprise Foundation and the Salvation Army is a public fund DGR Item 2, not a DGR Item 1. Should you wish to support this fund please do not contribute from your PAF.

The above list is not exhaustive and there are many other deserving Charities seeking donations to assist those in need.

For more information or to confirm the DGR status of a prospective charity please contact Alanta Butera or your OPC advisor.

Alanta Butera
Alanta Butera 15 January 2020 BACK