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  • #979339
    SmartBizBlog
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    All,

    I’m wondering whether anyone can help me. I want to start a fundraising project that could potentially see millions of dollars.

    My plan is to receive the funds; then forward the money directly into projects around the world. This is not the same as forward donating – I am physically (paid by myself), going to travel, allocate and participate in the projects. Every cent will be accounted for and publicly visible on the website that collects the money.

    Tax question: Can I legally do this, or would I need to set up a charitable trust to do it?

    Tax question 2: I don’t want to pay tax on this money because none of it will benefit me & quite frankly it is donated by people who have already paid tax on it; and I think it would be morally reprehensible if the ATO tried to tax it.

    Question 3 (not tax related): How would I set up a trust, if I cannot personally take the money for the purpose of distribution?

    Any help would be greatly appreciated.

    #1113647
    Just Launch
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    Hi,

    One option is to set up a Private Ancillary Fund which is a special kind of Charitable Trust. Income and capital gains are tax exempt as long as the ATO grants the Trust the status of an Income Tax Exempt Trust (ITEC). If you get the ITEC status you then become a Deductible Gift Recipient (DGR).

    The difficulty in the above is that the funds in the Trust can only be donated to other charitable organisations with the DGR status.

    Setting up any charitable structure will be costly as its a specialist field.

    Someone else will hopefully contribute some more advice for you and your endearing endeavors.

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