TERMS AND CONDITIONS

This agreement is between “the Donor” and The Gift Trust (“the Trust”).

1. DONATION INTO GIFT ACCOUNT

1.1  The Donor applies to open a “Gift Account” with the Trust. The Donor understands that once any gift is made to the Trust it is irrevocable and will be held by the Trust for charitable purposes.

1.2  The Donor wishes to donate Gift Funds to the Trust to be held and used for charitable purposes.

2. ADVICE FROM THE DONOR

2.1  Reference in the Agreement to the Donor’s advice shall mean:

a)  While the Donor is alive and capable of giving such advice, advice provided by the Donor,

b)  While the Donor is alive if incapable of giving such advice, advice provided by any person(s) nominated by the Donor through written advice to The Gift Trust when the Donor was capable of providing such nomination,

c)  After the Donor’s death, advice provided by any person(s) nominated by the Donor through written advice to The Gift Trust during the Donor’s lifetime when the Donor was capable of providing such nomination, and

d)  If no Successor Advisers remain, upon notification of the death of the last remaining Donor Adviser the Trust will transfer the remaining funds in the Donor’s Gift Account to The Gift Trust general donation fund to be held and distributed for charitable purposes.

2.2  Before the Trust makes any distributions from the Gift Account they shall seek the Donor’s advice, endeavour thoroughly to check the charitable and tax bona fides of the proposed recipient, and satisfy themselves that:

a)  The proposed recipient is a registered charitable entity (either in New Zealand or elsewhere if permitted by New Zealand law), or the proposed recipient is otherwise a legitimate recipient of a distribution from a charitable trust in furtherance of the relevant charitable purposes, and

b)  The distribution does not have the potential to result in any private pecuniary benefit to the Donor or persons associated with the Donor, or place the Trustees and/or the Donor in a position of conflict of interest.

If not so satisfied, the Trust’s Trustees shall advise the Donor of such a decision, and the Trust shall continue to hold the Gift Funds in the Gift Account.

2.3  The Trust will open and operate a General Account (held for charitable purposes) over which the Trust’s Trustees will have full discretion and for which they will make independent decisions to disburse grants and donations. The Donor will be able to transfer funds from the Donor’s specific Gift Account to the General Account should the Donor wish.

2.4 If the Trust’s Trustees have not been provided with the Donor’s advice on proposed distributions from the Gift Account for a period of seven (7) years from the time the last amount was deposited by the Donor into the Gift Account:

a)  The Trustees may give the Donor, or, if appropriate, the person(s) referred to in Clause 2.1, six months’ advance notice (by any previous means of communicating with such person(s)) that the Trustees are considering the discretions available to them under this clause, and:

i)  After the expiry of six months from giving such notice and if there has been no response to that notice, or

ii)  If any response to that notice indicates to the Trustees that the Donor’s advice will not be provided within a year of the giving of that notice,

the Trustees may exercise any of the discretions available to them under this clause.

b)  Subject to paragraph (a) of this clause, in their absolute discretion the Trustees may transfer the whole or part of the balance of the Gift Account to:

i)  One or more Accounts established and dedicated to furthering one or more specific charitable purposes (for instance, reflecting the charitable purposes favoured in the Donor’s advice received from time to time by the Trustees), and

ii)  The Trust’s General Account in which case the Trustees shall apply those Gift Funds for such charitable purposes as the Trustees see fit.

3. ONGOING LIAISON

3.1 The Trust will provide the following ongoing liaison with the Donor while the Gift Account still retains Gift Funds:

a)  During the Donor’s lifetime, an annual written report specifying how much of the Gift Account was distributed (in NZ$) and to whom (if appropriate), fees that were deducted and the balance remaining in the Gift Account, as outlined in Schedule 1 of these terms.

b)  After the Donor’s death, until advised to the contrary, an annual written report to the person(s) providing the Donor’s advice (as defined in Clause 2.1) advising how much of the Gift Account was distributed (in NZ$) and to whom (if appropriate), fees that were deducted and the balance remaining in the Gift Account.

4. DONOR ACKNOWLEDGEMENT

4.1 The Donor may remain anonymous to their chosen charities in the grant award letter if the Donor so chooses. This may be varied grant by grant.

5. GENERAL

5.1 The Trust, the Trust’s Trustees and the Donor acknowledge that:

a)  The Donor wishes to make a donation for charitable purposes, and for that purpose is donating a sum or sums of money to be held by the Trust for charitable purposes,

b)  The Trustees will open a Gift Account for the Donor and hold all funds donated for or on behalf of the Donor in that account for the Donor,

c)  The funds so donated will be held in a specified Gift Account until distribution in accordance with this Agreement,

d)  While the funds are held in the Gift Account, the Trust shall be entitled to deduct contribution costs from the Gift Account towards its operating costs, calculated at the end of each quarter and deducted quarterly:

  • These fees are outlined in the fee schedule which will be attached to this application form.
  • Where checking the charitable and tax bona fides of a recipient will be unusually costly (as may be the case with an overseas charity), the Trustees may, after first obtaining agreement of the Donor, or, if appropriate, of the person(s) referred to in Clause 2.1, charge the Gift Account with the costs of such a check as well as deducting the annual charges under paragraph (d) of this clause.

5.2 The Donor acknowledges that the Trust and Trust’s Trustees are bound by New Zealand law, that the Trust has and must retain charitable status under New Zealand law, and that under New Zealand law, unless otherwise permitted by the Trust Deed, the Trustees cannot delegate their powers or discretions to the Donor or any other person.

5.3 The Donor acknowledges that, despite the Donor’s right under this Agreement to provide advice on any proposed distribution:

a)  The operation of the Gift Account allows the Donor to provide advice and recommendations and not directions to the Trustees,

b)  The Trust’s Trustees will with all necessary due diligence ensure that any potential donee organisation is a legitimate recipient of funds from a charitable trust and that the grant is legally appropriate in furtherance of the relevant charitable purposes prior to approving any donation, and

c) The Trust’s Trustees may decline to accept the Donor’s advice and any recommendations if they are not satisfied that the advice and any recommendation meets the legal criteria for approval.

6. FINANCIAL ADVISER/DONOR RELATIONSHIP

6.1 The Donor will carefully review their account documentation and monitor all activity in their Gift Account managed by the Financial Adviser.

6.2 By granting the Financial Adviser authorisation, the Donor understands and agrees that The Gift Trust will not undertake to confirm your Financial Adviser representations or instructions or to monitor their compliance with your instructions and will rely solely upon the instructions of the Financial Adviser for these transfers.

6.3 The Gift Trust may require direct instructions from the Donor on transactions over a certain dollar amount. Upon requests for any account-related activity in your Gift Account from the Financial Adviser, The Gift Trust reserves the right, but is not obligated, to confirm with you any instructions prior to acting on them.

6.4 The Financial Adviser is authorized to act for the Donor and on your behalf in the same manner and with the same force and effect as you could do.

6.5 The Financial Adviser will not exceed his or her authority under this authorization. This authorization shall be applicable to all assets you hold in your Gift Account(s).

6.6 The Gift Trust will not have any duty to inquire into the authority of the Financial Adviser to engage in particular transactions or to monitor the terms of any oral or written agreement between the Donor and the Financial Adviser.

6.7 The Financial Adviser agrees to make all disclosures as required by, all applicable laws and regulations.

6.8 The Gift Trust is not required to confirm or ensure that The Financial Adviser remains in compliance with its obligations. The Donor agrees to indemnify and hold harmless The Gift Trust, and any of employees, and trustees from and against any and all losses, claims, or financial obligations (including reasonable attorneys’ fees) that may arise from any act or omission of The Financial Adviser with respect to your Gift Account.

6.9  This authorization is a continuing one and shall remain in full force and effect until either The Gift Trust is notified in writing of your death, disability, or incapacity or unless revoked through written notice received by The Gift Trust. Such revocation, however, shall not affect any prior liability in any way resulting from any transaction initiated before receipt of the revocation.

This authorization and indemnity shall be construed, administered, and enforced according to the New Zealand laws. It shall inure to the benefit of The Gift Trust, and of any successor organisation(s) (whether by merger, consolidation, or otherwise) irrespective of any change(s) at any time in the personnel thereto for any cause whatsoever and to the benefit of the affiliates and the assigns of The Gift Trust or any successor organisation.

6.10  The Gift Trust reserves the right to declineto act on instructions from the Donor or the Financial Adviser at its sole discretion if it is not in line with The Gift Trust’s charitable deed.

Schedule one:

The written annual report will include the following:

  • An itemised statement of the Donor’s account, showing the opening balance at the beginning of the year, all transactions on the account throughout the year, including donations to charities with sufficient information to identify the recipient.
  • The account fee under clause 5(d), investment returns (if any), additional payments into the account (if any) and the account balance at the end of the year.
  • A written report providing a brief description of each donation made.
  • A written report providing an overview of how the arrangement with the Donor is proceeding and prospects for the forthcoming year
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