Comparing ways to give

There are many ways to give to charity. The chart below compares our Gift Accounts to other options available to you.  

For more advice on how to meet your personal charitable giving goals, contact The Gift Trust on (04) 391 4438 or info@thegifttrust.org.nz

A Gift Trust Account Private Foundation Direct cash donation
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, actively manage grant-making, and sponsor charitable events. You want to make one-off donations and manage your own donation receipts at tax time.
Organisations you can support Registered charities, with some flexibility to support non registered charitable causes and international charities. Depends on your charitable trust deed. If you want a tax refund, only registered charities or donee organisations.

START-UP

Start-up time Immediate, on receipt of gift funds. 1 to 3 months minimum. N/A
Start-up costs None. Can require substantial establishment costs (legal & personal time). N/A
Free online setup
Cash/debit/cheque is free, but credit cards and many online fundraising intermediaries charge fees.
Practical minimum size $1,000 to open a Gift Account, but must have $5,000 to start donating. Substantial assets required, could require $1 million and up. $5 (for tax credit eligibility).

ADMIN

Ongoing admin Recommend grants to favourite charities. All other admin provided by The Gift Trust. Manage assets, keep records, select charities, administer grants, file tax 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 costs – approximately 2-4% depending on the size of the fund (including end of year accounts and audit requirements). N/A – annual collection of gift receipts.
Responsibility The Gift Trust completes all reporting under its charitable status. Private foundation board of trustees assumes full responsibility and risk. Accounts and statement of performance required within 6 months of the end of the financial year. N/A.

TAX + INVESTMENTS

Tax-exempt status All donations made to a Gift Account are eligible for 33% tax credit under The Gift Trust’s charitable status. Must establish a private foundation and register for charity exemption. Donations to registered charities are eligible for 33%* tax credit.
Donor control + investment Donor can make grant recommendations and provide advice on investments of funds with their financial adviser. Donor retains complete control over investments and grant making, limited only by trust deed. Must establish, research, and mange own investment vehicles. Complete control. Choose charities and gift as they like.
Investment growth potential
Tax on investment income None None N/A

EXTRA

Option to support charities anonymously
Limited. Trustees names listed 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

 

 

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