Not-for-profit Future Funds

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Several of Australian Communities Foundation's sub-funds have been set up by not-for-profit (NFP) organisations looking to secure the future of their organisation and their work in the community, by starting to build an endowment.

This is another way in which Australian Communities Foundation can support the important work of organisations in the NFP sector.

There are a range of advantages for NFPs setting up a sub-fund. It can provide the basis for longer term sustainability and greater independence from external funding sources. By being removed from the organisation’s balance sheet, funds can be stored and built on for a specific purpose further down the track, rather than absorbed into recurrent expenditure.

The sub-fund can also be used to expand the organisation's support base, by offering an independent and secure option for donor gifts.   

Key Benefits of setting up a future fund with Australian Communities Foundation

  • donations to a sub-fund of Australian Communities Foundation are tax deductible and the sub-fund is income tax exempt 
  • no establishment costs – simply complete an Establishment Form
  • no ongoing administrative or reporting requirements for the NFP
  • low cost, no hassle.  A low administration fee
  • while sub-funds are separately identified for investment purposes, the funds benefit from forming part of a pooled investment
  • income can be requested to be granted to the not-for-profit organisation for any purpose, including core costs or for innovative projects
  • capital from sub-funds can also be distributed if necessary
  • donations to the sub-fund need not form part of the NFP’s balance sheet, but can be accounted for separately
  • the endowment carries the extra protection against any misuse by a NFP as Australian Communities Foundation is the Trustee of the fund
  • development of greater independence from external funding sources in the long term.


In addition, a not-for-profit future fund has the potential to expand and grow the NFP's supporter and donor base:

  • as an independent and secure option for donors gifts
  • as an additional mechanism to attract funds which complements and supports the organisation’s overall fund raising strategy
  • with the possibility of attracting funds from existing Australian Communities Foundation donors.

Next Steps

  • Read about the newest future fund established by FAMILY LIFE