| Consider this when |
You want a simple giving solution with low costs and the potential to grow your charitable assets tax-free over time. |
You want to operate a charitable organisation and potentially employ staff, hire investment managers, and actively manage grant-making. |
You want to make one-off donations and manage your own donation receipts at tax time. |
| Organisations you can support |
Any registered New Zealand charity. |
Many organisations and individuals (through scholarships) as long as it's for charitable purposes. |
Public charities, private foundations and individuals. |
START-UP |
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| Free online setup |
✔ |
✗ |
✗ |
| Start-up time |
Immediate |
1 to 3 months |
N/A |
| Start-up costs |
None |
Can require substantial setup costs (legal & personal time) |
N/A |
| Practical minimum size |
Start from $5,000+ |
Min. $1 million + recommended |
$5 (for tax credit eligibility) |
| Free online setup |
✔ |
✗ |
✗Fundraising intermediaries may charge fees. |
ADMIN |
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| Ongoing admin |
Recommend grants to favourite charities. All other admin provided by The Gift Trust. |
Manage assets, keep records, select charities, administer grants, file returns, maintain board minutes, etc. |
Collate donation receipts at end of year and respond to future donation requests. |
| Annual admin fee |
1 - 2% fee p.a (lower fees for gift account over $1 million). |
Depends on admin and staffing – approximately 2-4% depending on the size of the fund (including end of year accounts and audit requirements). |
N/A
requires annual collection of gift receipts. |
| Responsability |
The Gift Trust completes all reporting under its charitable status. |
Private foundation board of trustees assumes full responsibility and risk. |
N/A. |
TAX + INVESTMENTS |
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| Tax-exempt status |
✔All donations made to a Gift Account eligible for tax credit. |
✔Must establish a private foundation and register for charity exemption. |
✔Donations only to registered charities are eligible for tax credit. |
| Donor control + investment |
Donor makes grant recommendations and provides advice on investments of funds. |
Donor retains complete control over investments and grant making, limited only by trust deed. Must research and manage own investment vehicles. |
Choose charities and gift as they like. |
| Investment growth potential |
✔ |
✔ |
✗ |
| Tax on investment income |
None |
None |
N/A |
EXTRA |
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| Donor Anonymity |
✔ |
✔
Limited. Trustees are named publically on the charities register. |
✗ If you wish to get a tax donation receipt, you must provide your name. |
| Ability to name successors, leave legacy |
✔ |
✔ |
✗ |
