Charitable foundation and private ancillary fund management

BY   |  TUESDAY, 13 FEB 2024    12:39PM

You have just established a charitable foundation or been appointed as a director of a newly registered private ancillary fund (PAF). After months - perhaps years - of planning, finally, the foundation:
  • is registered with the Australian Charities and Not-for-profits Commission (ACNC)
  • has been approved by the Australian Taxation Office (ATO)
  • is ready to start marking a meaningful impact on the community and to carry on the family legacy.
Now, all that needs to be done is to transfer some assets and start distributing to worthy charities, right? Well, yes, but to do that effectively, you need to take some simple steps right at the beginning to set your foundation up for success. Here is a list of the first actions you should carry out as a new director of a PAF:
  1. Establish a record-keeping system.
  2. Know your duties.
  3. Schedule a director's meeting.
  4. Establish a bank account.
Establish a record-keeping system

It is important that all directors can access any documents necessary to administer the fund. The best way to ensure that information is accessible is to establish a record-keeping deposit or database. This could be physical hardcopy documents and/or electronic records.

At a minimum, this deposit should contain the items outlined in the following discussion.