Private Charitable Fund
Private Charitable Fund definition
A private charitable fund is a privately controlled charitable trust established during the founder's lifetime and operating solely for charitable purposes. It will usually have the power to make grants to charitable organisations, and may also have the power to apply its funds for its own charitable purposes.
- A private charitable trust is entitled to be endorsed as a Tax Concession Charity and will therefore be exempt from income tax, including capital gains tax.
- It need not lodge income tax returns unless specifically required to do so by the ATO.
- Gifts to private charitable trusts are not tax deductible, but in some circumstances, family discretionary trusts can make distributions to private charitable trusts in a tax effective manner
- A private charitable trust must fund charitable purposes, but need not be limited to funding only DGRs.