a n z t r u s t e e s ch a r i ta b l e t r u s t

Transcription

1 a n z t r u s t e e s a n z t r u s t e e s c h a r i t a b l e f o u n d a t i o n s ch a r i ta b l e t r u s t

2 co n t e n t s make a difference. make it last 3 your vision for a better world 4 your options for charitable giving 5 anz trustees your partner in philanthropy 7 charitable foundations designed to help you make a lasting impact 8 timing: during your lifetime or in your will? 9 structure: your own foundation or anz charitable trust australia? 10 anz trustees full administration service 14 anz trustees investment philosophy 16 anz trustees grant making capabilities 17 taxation considerations 18 anz executors & trustee company limited 19 how to contact us 20

3 We make a living by what we get, but we make a life by what we give. Sir Winston Churchill

4 make a difference. make it last. At some stage in our life many of us have a desire to give something back to our community. It s an appreciation of what we have, and how thankful we are, that often drives the need for us to support the less fortunate members of our community. We all have a different view of how we could do this, depending on our circumstances and what is important to us personally. Among the myriad of choices, the hardest part can be deciding what to do that will have the most impact and greatest personal reward. Working in partnership with you, ANZ Trustees can help you realise your vision and make it happen. We can ensure you have an enduring legacy that makes a significant difference that lasts. Make a difference. Make it last. Together with ANZ Trustees. 3

5 your vision for a better world We often hear the words it is better to give than to receive. Right now you may be thinking about how you can give to the community to help realise your vision for a better world. Your motivation may be the personal satisfaction and reward of doing something worthwhile, or bringing about change to improve the society we live in, for today and for future generations. There are many ways to define your meaning of generosity and apply it in your life. You may wish to: put something back into the community help those who are less fortunate people who are poor, sick, disabled, homeless, abused, frail and aged promote certain fields such as the arts, education, religion, the environment and medical science create a vision for a better community and better world and encourage others to share in your vision bring your entrepreneurial and innovative discipline to the charitable, not for profit sector build a spirit and tradition of generosity and social responsibility in your family and for generations to come, setting the example for your children and grandchildren honour the name of a respected person or family be remembered as a contributor to the community The Alfred Felton Bequest The Alfred Felton Bequest provides funds for charitable purposes in Victoria with a primary focus on the health of women and children, particularly in rural areas and urban areas of disadvantage. The better-known contribution of the Bequest has been instrumental in establishing the National Gallery of Victoria as a gallery of international significance, due to the vision of Alfred Felton. This tangible contribution to Victorian cultural life continues even today, with regular purchases of internationally significant works of art. Alfred Felton Born in England, Alfred Felton came to Australia in An avid art collector, Alfred Felton was also a partner in a highly successful pharmaceuticals importing and manufacturing firm and also had several grazing interests in Victoria and NSW. maintain some direction over how your assets are used (especially after your death) provide an enduring legacy make a significant difference that lasts. 4

6 your options for charitable giving To assist you in making your vision a reality, it is important to understand all the options available to you. Here are some options you may consider: Volunteer your time This enables you to be directly involved in a cause or a charitable organisation. You may wish to take this step as part of your own due diligence prior to committing your funds to, for example, a charitable foundation. Direct giving during your lifetime Through the donation of cash or assets to the charitable organisation of your choice, you can make a direct contribution to a charity that has particular significance to you. You may consider this option where you prefer a short term giving strategy. Once-off impact Make a bequest in your Will You may consider this as a way to transfer money or property directly to a charitable organisation, to take effect upon your death. Make a donation to an existing charitable foundation Establish your own charitable foundation Not everyone would like, or can afford, to establish their own charitable foundation. You may wish to donate to an existing foundation. ANZ Trustees can help you decide your strategy and guide you through this process. You may choose to establish your own charitable foundation either during your lifetime, or in your Will to take effect upon your death. This enables your funds to be invested and distributed in accordance with your wishes. By investing your funds, your donation can make a difference, even long after your death. ANZ Trustees can help you decide your strategy and guide you through this process. Lasting impact Most people choose a professional to assist them with their key investment, financial or legal decisions, such as an investment adviser, accountant or lawyer. The same applies when you make a decision to donate to or establish a foundation and make a difference that lasts. Consider the services of a professional in the philanthropic sector, ANZ Trustees. 5

7 ANZ Trustees 6 Charitable Trust

8 anz trustees your partner in philanthropy Choosing the right philanthropic partner is the next step in realising your charitable intentions. ANZ Trustees can guide you through the process to help make your vision a reality. ANZ Trustees has a long and proud history in the provision of trustee services that has helped us to make a significant contribution to the charitable sector. As one of Australia s largest companies in this field, ANZ Trustees brings credibility, expertise, knowledge of the sector and a demonstrated ability in its management of charitable foundations. Through the privilege of being entrusted as the stewards of some of the largest and oldest charitable foundations in Australia, we have been involved in strategic partnerships with both government and other charitable foundations to devise longer-term solutions to community problems. Through the large number of foundations with which we are associated, we have developed extensive, multi-dimensional networks in, and an understanding of, Australian not-for-profit organisations and other important institutions in the community. Our work includes analysing and considering how global trends may impact this sector, now and in the future. We are a market leader ANZ Trustees is a market leader in the philanthropic sector. We currently manage over 400 charitable foundations, with $545 million funds under management as at 30 April Why a trustee company is an important consideration A trustee company can manage your philanthropic strategy for you. It offers perpetuity, experience, professional resources and services across all areas required to establish and operate a charitable foundation, including administration, legal, investment management and taxation. Why choose ANZ Trustees? While you remain focused on your philanthropic strategy, ANZ Trustees will carry out your charitable intention by using its full range of administration resources and services available, if you so require. As described in the following pages, establishing and running a foundation has many aspects. ANZ Trustees has dedicated teams able to help you with all the functions required, either independently or with you. We can: establish your charitable foundation invest your funds ensure all legislative, compliance and taxation issues are managed report to you on all aspects of your foundation assist you, if you require, with determining your charitable distribution strategy provide you with news as to developments in the philanthropic sector and possible new funding opportunities. ANZ Trustees has rigorous compliance and risk management procedures, demonstrating our professionalism and independence in the management of all aspects of trustee services. Our community standing ANZ Trustees is a member of Philanthropy Australia, a national organisation that represents grant making for private, family and corporate trusts and foundations. 7

9 charitable foundations designed to help you make a lasting impact An effective option for charitable giving is the establishment of a charitable foundation. What is a charitable foundation? A charitable foundation is a trust fund set up specifically to facilitate the donation of money to charitable organisations or for a specific charitable purpose. Generally, once established, charitable foundations are forever The capital is carefully invested to meet two objectives: capital growth and income generation to provide annual distributions of income to your nominated charitable organisations or nominated charitable purposes. Your charitable foundation (with careful stewardship) will grow and be able to provide a continuing, significant contribution to society. Charitable foundations can be tax-effective Once established and recognised by the Australian Tax Office as a charitable foundation, the income is exempt from income tax and from some States taxes and duties. Donations to a charitable foundation may also be tax deductible. There are several key questions/aspects that need to be considered in the establishment of a charitable foundation: Timing Structure Administration Investment Grant making Taxation To decide whether to establish a charitable foundation during your lifetime, or in your Will, or perhaps do both. (Refer page 9) To adopt an independent charitable foundation structure or leverage an existing infrastructure. (Refer page 10) To have a trustee company act as a sole trustee and provide and manage the administration process for you, and/or choose more direct involvement as a co-trustee. (Refer page 14) To select the most appropriate investment portfolio that achieves capital growth and income generation, ensuring your charitable contribution will continue over time. (Refer page 16) To choose to benefit specific organisations or purposes (non-discretionary grant making) or for general charitable purposes (discretionary grant making). (Refer page 17) To consider the tax advantages that establishing a foundation can offer both to you personally, with potential tax deductions for your donation, and to the foundation you establish, where the foundation s earnings are generally tax free. (Refer page 18) ANZ Trustees has the answers. 8

10 timing: during your lifetime or in your will? When formulating your charitable strategy, it is important for you to consider the choices available to you. During your lifetime You can establish a charitable foundation during your lifetime that: gives you personal and family involvement gives you potential tax deductibility in most States is not part of your estate at death. The benefits include the following: you can see the difference you make in other people s lives you can be involved in the strategic direction of your foundation you can align your granting strategy with community needs and issues as they arise, more quickly than can other organisations such as government and larger scale foundations unable to respond as quickly you and/or your family can be involved in distributing the income to your chosen charitable causes you and/or your family and other participants can work together with recipients to combine financial assistance with networks and connections you may receive a tax deduction for your initial and ongoing donations to the foundation. Once established, the funds allocated to your charitable foundation are no longer part of your assets. Upon your death, this means that in most States the funds in your charitable foundation are not part of your estate and cannot be disputed by another person, thereby ensuring your wishes remain as you intended. In your Will You can establish a charitable foundation in your Will that includes the following benefits: you have the use of your funds during your lifetime a Will foundation permits distributions to individuals, whereas some charitable foundations created during your lifetime do not. (Refer page 18). Where you establish a charitable foundation in your Will, you should consider that it: requires interpretation of your wishes by others, or may be the subject of probate litigation after death i.e. intended recipient may not benefit in whole or part. Alternatively, you can do both. You can establish a charitable foundation during your lifetime and add to your foundation upon your death, by leaving a bequest in your Will to the foundation. 9

11 structure: your own foundation or anz charitable trust australia? ANZ Trustees has the solution. Once you have decided to establish a charitable foundation, you will need to consider the various structures available to you. There are two key structures you may wish to consider. You can establish: your own charitable foundation, or utilise an existing structure, ANZ Charitable Trust Australia. These are both outlined below. Establishing your own charitable foundation If you wish to pursue your own particular charitable intentions and particular investment and administrative needs, then you may want to establish your own charitable foundation. By adopting this approach you are not restricted to having a sole trustee, and you can have greater flexibility and/or personal and family involvement in charitable giving. You may wish to establish your own foundation structure where: your initial donation is over $1million* you require ANZ Trustees to act alone or with other co-trustees you wish to appoint an advisory panel eg. where the cause requires particular expertise such as medical research, or alternatively, you may like the panel to comprise family members you require the funds of your charitable foundation to be managed as an individual portfolio, or alternatively, you want the option of appointing one or more investment managers to manage the fund. ANZ Trustees will work with you and your legal and tax adviser to tailor a charitable solution to meet your individual charitable wishes. * ANZ Trustees also offers an option for charitable giving which requires a minimum donation of $100,000. Please read below and the following pages which explains the requirements for choosing an alternative structure, ANZ Charitable Trust Australia. The donor s own charitable foundation can bear the name chosen by the organisation or individual setting up the foundation. The donor can nominate the charitable purposes or organisations to which the foundation s funds are to be given. Either the trustee, or the group of co-trustees, make all the decisions that affect the foundation including investment and the strategic direction for granting. ANZ Trustees can be nominated as the sole trustee or as one of two or more co-trustees. ANZ Charitable Trust Australia Where you wish to establish your own foundation but may not have sufficient funds or the time to do so, we can offer you a solution. ANZ Trustees offers you the ability to establish a charitable foundation without the need to wait for Australian Tax Office (ATO) approval and timeconsuming establishment processes. This structure is known as the ANZ Charitable Trust Australia. ANZ Trustees created ANZ Charitable Trust Australia to provide donors with a flexible, multi-purpose foundation. ANZ Charitable Trust Australia is a flexible, multi-purpose foundation, which can be set-up in a day, making establishment easy. 10

12 ANZ Charitable Trust Australia has many features and benefits, including: Features A public charitable foundation Established in perpetuity Approved by the ATO Minimum donation is $100,000 Accepts donations from the public ANZ Trustees is the sole trustee of ANZ Charitable Trust Australia ANZ Trustees looks after the investment, administration, reporting, audit and all other compliance and regulatory issues Four separate types of funds are available, designed to cater to various charitable intentions. Key Benefits Establishment of the fund is easy once your minimum donation is made, your fund is established with no additional ATO or regulatory approval required Setting up your own named charitable fund under ANZ Charitable Trust Australia is inexpensive You can still have your own named foundation Tax deductibility for your donation There is ongoing tax deductibility for additional contributions to your fund. In addition, ANZ Charitable Trusts Australia offers the following benefits: You can establish an advisory panel to make recommendations to ANZ Trustees in regard to your charitable intentions. The advisory panel can be made up of you and your family, or other experts you may choose. Charitable organisations can establish an ANZ Charitable Trust Australia fund as another source of income for their purposes. As this fund is independent of the organisation and ANZ Trustees is the trustee, it may appeal to some funders who prefer an arms length approach, while providing an alternative income stream for the charitable organisation without the need to incur fundraising costs in the process. Corporate organisations can establish an ANZ Charitable Trust Australia fund as a vehicle to structure their charitable giving and involve staff. 11

13 Your level of involvement It is up to you to be as anonymous or involved as you wish in distributing the income each year from your ANZ Charitable Trust Australia fund. Your role is to consider causes or particular charitable organisations you would like to support. ANZ Trustees can support this consideration by providing information on a variety of charities, their projects and initiatives. We are here to help you if required we will work with you to develop your charitable giving strategy and seek out organisations and charities that reflect your charitable intentions. Where you choose to distribute the income from your ANZ Charitable Trust Australia to specific institutions or causes those wishes will be carried out. However, if in a later decade or century, the specific charitable organisation or purpose ceases to exist (eg. the medical or social problem is solved) then ANZ Trustees will endeavour to distribute income for a similar purpose. Our grant making knowledge and experience ensures we are well placed to carry out this task. If you are interested in the ANZ Charitable Trust Australia structure and would like more information to make your decision, we can provide you with a copy of our ANZ Charitable Trust Australia brochure. Please telephone us on You can also find more information on our website at: wealth/trustees Making donations to ANZ Charitable Trust Australia Not everyone would like, or can afford, to establish their own charitable foundation. However, through ANZ Charitable Trust Australia you can still make a difference that lasts. The structure of ANZ Charitable Trust Australia enables ANZ Trustees to accept donations from the public into ANZ Charitable Trust Australia s particular charitable funds. We would be happy to provide you with a list of the ANZ Charitable Trust Australia funds into which the public can donate. Donation or Foundation $100,000 Foundation created in Year 1 or $20,000 donated each year for 5 years $60,000 $50,000 Income received $40,000 $30,000 $20,000 Foundation Capital value of Foundation at 50 years is $1.1 million $10,000 Donation $ Years Foundation: Assumes $100,000 is invested from inception Assumes 5.0% pa growth and 5.0% pa income distributed Donation: Assumes 5 annual gifts of $20,000 a n z t r u s t e e s 12 charitable foundations

14 Our services extend beyond acting as a trustee Where you choose to set up your own charitable foundation and do not require a professional trustee company to act as a sole or co-trustee, we can work with you to: establish a private charitable foundation, where you can fund the charitable organisations or purposes of your choice, although public donations to the fund are not tax deductible establish a prescribed private fund, where individuals, families or companies establish a charitable fund with full tax deductibility for donations, without the requirement for wider public participation. Where you prefer the establishment of either a private charitable foundation or a prescribed private fund, ANZ Trustees can offer you the following services: administration, including tax administration investment management grant making expertise on a once off or a more consistent and structured basis acting as sole trustee or a co-trustee to work with other individual trustees. A solution for Corporations Our service also extends to companies seeking to develop or enhance their philanthropic strategy. ANZ Trustees has corporate solutions designed to assist companies who wish to engage with their community and provide support that is more focused and more strategic. If you would like more information, please contact ANZ Trustees on Our activity also extends within ANZ. Through the regular contributions made by Australia and New Zealand Banking Group Limited and ANZ staff, the ANZ Staff Foundation was established in 1988 as a perpetual charitable foundation. The Foundation builds a permanent source of funds to meet the existing and emerging needs of communities in Australia. Staff at all levels are actively encouraged to support the work of the Foundation by giving their time and support to the projects which the Foundation funds. This is achieved through ANZ s Volunteer Program. We see volunteering as an opportunity for individuals or teams to make a difference in a tangible way and gain personal fulfilment. Many of our clients choose to use ANZ Trustees ANZ Charitable Trust Australia for the simplicity and ease that it offers. The William Buckland Foundation William Buckland established The William Buckland Foundation in his Will to aid the community. The Foundation distributes half of its income to public hospitals and public benevolent institutions, with special emphasis on children; and half to public scientific and public educational purposes, with a preference for agricultural and related pursuits. The Foundation has since grown into one of Victoria s significant charitable foundations, generating around $3 million annually for charitable purposes. The Foundation was important in the establishment of the Royal Children s Hospital Centre for Adolescent Health. It has helped the development of a juvenile justice diversionary program, supporting a model of culture as an effective form of welfare intervention for young people. William Lionel Buckland William Buckland was born in Mansfield, Victoria. A notable entrepreneur, he established a range of businesses spanning the wholesale motor parts trade, garages, insurance and hire purchase companies, and the pastoral industry. William Buckland s greatest financial successes came in the 1950 s when he sold the various parts of his extensive enterprises to larger public companies in return for their shares. a n z t r u s t e e s 13 charitable foundations

15 anz trustees full administration service The administration of a charitable foundation can be onerous and time consuming, with regulatory and compliance requirements that need to be monitored on an ongoing basis. By choosing the expertise of ANZ Trustees in administration, you will have more time to focus on the strategic aspects of your charitable giving. ANZ Trustees offers a range of services for your charitable foundation, including the following: Account Establishment Annual/Regulatory Reporting General/Investment Administration. Account Establishment ANZ Trustees: provides either a specifically tailored or a standard trust deed dependent on your requirements which complies with Australian Taxation Office requirements attends to the establishment of your charitable foundation, including applying and registering the foundation for all relevant taxation registrations (i.e. ABN, TFN and GST) including the application for the endorsement of the charitable foundation as an Income Tax Exempt Charity and Deductible Gift Recipient. ANZ Trustees acts as an agent for other trustees in the administration and investment of foundation funds and provides professional funds management for charities. Annual/Regulatory Reporting ANZ Trustees can provide comprehensive reporting, including the following: looks after Quarterly Business Activity Statement (BAS)/Instalment Activity Statement, i.e. BAS reconciliation and lodgement with the ATO prepares and maintains annual financial statements prepares and lodges annual tax returns (if required) arranges an annual audit (if required) prepares all necessary minutes of meetings on behalf of the trustees provides you with an annual report as to donations and grants made. a n z t r u s t e e s 14 charitable foundations

16 General/Investment Administration ANZ Trustees: maintains records of all donations received and grants made maintains records of any investments, including details of any sales or purchases and any income received maintains capital gains tax records provides regular statements of transaction, capital gains and portfolio value provides fast and efficient settlement of share transactions through CHESS (clearing house electronic sub-registration system) for trusts where we act as sole trustee operates and maintains a cash at call account holds any investment documents and trust deeds in safe custody. ANZ Trustees provides a full administration and investment service for your own charitable foundation, ANZ Charitable Trust Australia, private charitable foundations and prescribed private funds where we are a sole or co-trustee. We also offer our full administration and investment service to other charitable foundations that wish to outsource those functions to a statutory trustee. This allows trustees to have more free time and resources, leaving them to focus on their charitable goals. Ethel Margaret Ewing Cutten Foundation Remembered in the Foundation are the causes that Ethel Margaret Ewing Cutten supported in her lifetime: The Foundation provides income for the continued development and maintenance of Mrs Cutten s farmlet in Happy Valley, South Australia, which she donated to the community as a community park. A great supporter of libraries, Mrs Cutten established the Thomas, Samuel & George Ewing Trust to support and develop Fitzroy library, and the Margaret Cutten Community Library Trust at the Library of Happy Valley in South Australia. A scholarship gift to the Australian Ballet was also established in memory of her childhood friend, Freda Irving, a celebrated journalist who was greatly involved in the ballet and the ballet community. These scholarships provide artistic development experiences internationally for dancers of the Australian Ballet, already at the peak of their profession in this country. Ethel Margaret Ewing Cutten Ethel Margaret Ewing Cutten was a member of the prominent Ewing family in Melbourne with interests in the arts and art collecting. Mrs Cutten was an astute investor enjoying considerable success. 15

17 anz trustees investment philosophy ANZ Trustees manages the investments for all clients, including charitable foundations, in one of two different ways depending on our clients needs and circumstances. These are: individually managed portfolios, using in-house investment resources, or via pooled common funds, where the investment management is outsourced to managers. ING Investment Management currently perform this role. Individually Managed Portfolios Our investment philosophy is to create long term, tax efficient portfolios utilising direct securities rather than by using pooled or investment trusts. Even though charitable foundations are exempt from tax, tax efficiency still plays a part in the investment management, as they are eligible to receive a cash rebate for franking credits on Australian shares. This can add almost 45% to the income available for distribution depending on the construction of the investment portfolio. In the case of perpetual charities, this translates to constructing portfolios with a high proportion of growth assets, in particular Australian shares. In choosing shares for such portfolios, ANZ Trustees concentrates on wellmanaged Australian listed companies, which have a strong competitive advantage in industries that have a growth profile. We believe that all companies we invest in must have a good dividend yield, strong cash flow, and in most cases expect to produce fully franked dividends. Offshore listed shares are not favored due to their lower income and no franking credits status. Property exposure is gained via listed trusts and fixed interest exposure via listed hybrid securities. Pooled Common Funds Our broad investment philosophy used in the management of pooled common funds is similar to that for individually managed portfolios. ANZ Trustees outsources the investment management of pooled common funds under a mandate to balance income and capital returns and to minimise turnover. There are two types of foundations we believe are more suited to using this investment approach: smaller foundations, which are not large enough to create an individual portfolio and thus benefit more from a pooled approach, which provides the asset cover that an individual portfolio could not for their size, and foundations that rely on fund raising and public support so that there needs to be constant scrutiny of their total assets, rather than the income they produce. This gives them a shorter term focus than other foundations and means that the funds should be managed more like superannuation funds than like other perpetual foundations. When constructing any investment portfolio, we believe in high quality, low turnover portfolios, with an emphasis on the security of income and production of long term growth in both income and capital. Hugh Hodges, Chief Investment Officer, ANZ Trustees ANZ Trustees has extensive experience in the investment management of perpetual charitable foundations. This is especially important as perpetual charitable foundations have special investment needs that are quite different to ordinary investment vehicles, and even differ depending on the type of foundation. 16

18 anz trustees grant making capabilities When you give a grant, it is important to ensure that the funds are allocated to, and used by, those most in need. Through our networks and strong relationships with other charitable organisations, research groups and communities across Australia, ANZ Trustees is able to assist you in your granting. Our experience in grant making has grown and developed as a result of the prominent foundations with which we are associated, and the programs and projects that we have developed to service foundations, both large and small. We have a deep understanding of the social and community environment that fosters grant giving in line with current community needs. We regularly consult with the philanthropic sector, not-for-profit organisations and government agencies. Our approach to grant making is supported by our due diligence and rigorous processes in our internal operations. ANZ Trustees works with individuals and organisations wanting to establish a charitable foundation and wishing to pursue a controlled and targeted philanthropic objective, rather than making a direct donation to a charity. We can help you magnify the impact of your generosity through programs that are targeted, measurable and leveraged. How do we achieve this? When establishing a charitable foundation we discuss the wishes with the donor and help design the foundation according to individual requirements. We then invest foundation funds and distribute income for charitable purposes. ANZ Trustees provides a significant source of philanthropic funds for grant seekers across the country. In the 12 months ended 30 June 2002, we distributed over $17 million to over 1,250 separate grant recipients. Prominent foundations ANZ Trustees is associated with a number of prominent perpetual charitable foundations. Three of the key foundations with which we are proud to be associated are highlighted in this brochure: The Alfred Felton Bequest, The William Buckland Foundation, and the Ethel Margaret Ewing Cutten Foundation. ANZ programs and projects At ANZ Trustees, we group together smaller discretionary foundations to ensure a stronger focus on the charitable areas nominated by the benefactors. Our key programs and projects focus on these areas of need: family and community support arts and culture older people s accommodation and care medical research and technology people, including children, with disabilities. 17

19 taxation considerations Deductibility of donations Gifts to Australian charities endorsed by the ATO as Deductible Gift Recipients ( DGR ) are tax deductible to the donor. These gifts, made by individuals, corporate entities or trusts, either directly or via a private fund, can be: gifts of cash of $2.00 or more, or assets, valued by the ATO at more than $5,000, or bought within 12 months of the gift being made. Once made, deductible donations are non-refundable. There is no limit on the amount that can be claimed as a deduction by a donor in a given year. The amount of the claimable deduction is, however, effectively limited to the donor s taxable income for that year. Historically, any amount in excess of the donor s taxable income could not be carried forward and claimed in a future year. However, the law has since changed in this regard. From 1 July 2002, a deduction resulting from a gift of assets may be spread over a period of up to 5 years. Further, the Government has announced that from 1 July 2003, cash gifts will be able to be similarly spread *. *Please note the relevant legislation has yet to be enacted. Deductible Gift Recipients ( DGRs ) include ANZ Charitable Trust Australia, Prescribed Private Funds, Public Funds and other named institutions within the income tax legislation ( Approved Funds ). Where a donation of assets is made to an Approved Fund, Capital Gains Tax may apply to the disposal. Where the donor has held the assets for more than 12 months the gain may be able to be reduced under the capital gains tax discount provisions. In addition, any capital gain is likely to be offset by the tax deduction provided from the donation. Gifts made to an Approved Fund via a Will are not tax deductible, however, no capital gains tax is applicable to donations or a bequest from an estate. Taxation of Approved Funds The Australian Government also recognises the need for concessional taxation treatment at the fund level. Approved Funds endorsed by the ATO as Income Tax Exempt Charities (ITEC) are exempt from paying income tax and capital gains tax on income derived by the Fund during the period of their endorsement. Accordingly, all income derived by the funds, including capital gains, are not subject to Australian income tax or capital gains tax. As ITECs, Approved Funds are also entitled to cash refunds from the ATO equal to the franking credits attaching to franked dividends received by them. This enhances growth within the fund. Please refer to ANZ Trustees investment philosophy on page 16 which explains this aspect in more detail. Charitable foundations established during the donor s lifetime which fund individuals do not qualify as DGRs. Therefore, donations to those foundations will not be tax deductible eg. funding an individual for surgery. The above information provides general taxation information current as at the date of production. The information is intended as a guide only; it is not intended to be a substitute for professional taxation advice and should not be relied upon as such. Taxation laws are complex and subject to change, and their application may vary according to your specific circumstances. Consultation with a taxation adviser is recommended to determine the implications of taxation laws to your specific circumstances. 18

20 anz executors & trustee company limited ANZ Executors & Trustee Company Limited ABN (ANZ Trustees) is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited ABN (ANZ). As a Statutory Trustee Company, ANZ Trustees is authorised to act under the trustee company legislation of each mainland Australian state and territory (except Tasmania) as: executor of Wills trustee of charitable and non-charitable foundations trustee of statutory common funds investment manager of common funds and foundation assets other trustee services. Our wide range of services ANZ Trustees provides a wide range of services to our clients. We can: administer deceased estates prepare estate plans, Wills and Powers of Attorney for clients act as a trustee of deceased states and living trusts, including charitable foundations act as an agent and attorney for clients who are unable or unwilling to manage their affairs, and manage common funds (ie. pooled of invested funds held on trust). ANZ Trustees has a dedicated team of professionals with expertise in all aspects of administration, legal compliance, investment management and taxation. Limitation of liability and disclaimer This brochure contains general information only about services provided by ANZ Trustees and does not contain any recommendations, statements of opinion or advice. In any event, the information contained in this brochure does not take into account any individual s objectives, financial situation or needs. Comments contained in this brochure should not be relied upon in any way when deciding whether or not to establish or contribute to a charitable foundation or when managing such a foundation. You should obtain independent advice as to whether establishing and contributing to a charitable foundation is appropriate for you, having regard to your objectives, financial situation and needs. Should you wish to appoint ANZ Trustees to provide the services described in this brochure, you will be required to enter into a contract setting out details of the terms on which the services are to be provided. Although some of the main terms are summarised in this brochure, you should carefully review the contract to confirm that the terms are acceptable as it is the contract that will govern the terms of the appointment rather than this brochure. All statements in the brochure are based on ANZ Trustees interpretation of the laws applicable to charitable foundations as at the date of this brochure. The laws regulating charitable foundations are complex. While some of the legal requirements are mentioned in this brochure, only a very brief summary has been included and accordingly such information may not be complete and should therefore not be relied upon. It is intended only as a guide to some of the main requirements. This booklet was produced May FREECALL TM is a trademark of Telstra Corporation Limited ABN

21 how to contact us For information on our Charitable Services, please: telephone (03) or FREECALL TM anywhere in Australia facsimile (03) address Level Collins Street Melbourne Vic website Personal Solutions, click on Wealth Solutions, then ANZ Trustees For information on Other Services, please: telephone (03) or FREECALL TM anywhere in Australia facsimile (03) address Level Collins Street Melbourne Vic website Personal Solutions, click on Wealth Solutions, then ANZ Trustees Australia and New Zealand banking Group Limited ABN

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