At ACF, we are committed to strengthening not-for-profit (NFP) organisations, not only via our grantmaking activities but also by providing an option for NFPs to establish a sub-fund.

How can a sub-fund help a NFP organisation?

For NFP organisations looking to secure their future, a low-cost sub-fund can be used to build an endowment. It can provide the basis for long-term sustainability and greater independence from external funding sources. Being removed from your organisation’s balance sheet means funds are built and stored for future use, rather than being absorbed into recurrent expenditure.

A sub-fund can also be used to expand your supporter base by offering an independent and secure option for donor gifts, including bequests.

What are the benefits for NFP organisation who open a sub-fund with ACF?

  • Tax deductible donationsdonations to ACF sub-funds are tax deductible and the sub-fund is income tax exempt
  • Low cost: ACF sub-funds for NFP organisations have no establishment costs and a low administration fee
  • No hassle: ACF takes care of the administrative and reporting requirements associated with the sub-fund meaning NFP organisations are free to focus on their core business
  • Pooled investment: while sub-funds are separately identifiable, they benefit from being part of a pooled investment vehicle
  • Flexible income: income can be requested to be granted to the NFP organisation for any purpose including operational costs or to support projects
  • Independence: establishing a sub-fund provides greater independence from external funding sources in the long-term
  • Attract new funding: partnering with ACF provides the potential for NFP organisations to attract funds from existing ACF donors. A NFP sub-fund also has the potential to expand and grow the NFP’s supporter and donor base.

Next Steps

If you’re a NFP organisation and want to set up a mechanism to support your future, give ACF a call on (03) 9412 0412 or email admin@communityfoundation.org.au