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Frequently Asked Questions

Eligibility

Answer

Not all foundations are the same. ‘Foundation’ does not have a legal meaning in Australia. A Foundation could be:

  • a Trust
  • a not-for-profit company
  • a division of a not-for-profit company
  • a division of a for-profit company
A Foundation could be established:
  • under a will
  • by an individual
  • by a family
  • by a company
  • by a community

Answer

Yes, but only for grants that relate to buildings.

Answer

In order to be a DGR, an educational organisation must be approved by the Australian Tax Office (ATO) as fitting under one of a number of DGR categories. These include:

  • Public Universities
  • Higher Education Institution
  • Approved Research Institutes
  • School Building and Library Funds
  • Education Scholarship Fund; and
  • Others.

Answer

​Most philanthropic organisations are not-for-profit – any with charitable or DGR endorsement status would be. However, there would be some corporate philanthropics that, while they are called a ‘foundation, may actually just be a division of a company that is for profit.

Answer

In general, yes, service clubs are not-for-profits but status can depend on their Constitution. Not-for-profit means that the members/owners should not receive any of the net surplus from the organisation.

Answer

As long as the school meets the eligibility requirements of the not-for-profit funder, there should not be any further issues. The school will obviously have to meet reporting requirements (e.g. project outcomes, maybe an audited financial report etc).

Answer

There are three key ways:

  1. directly meet the funding requirement (e.g. Charitable purposes)
  2. be auspiced by an eligible organisation (e.g. Parents and Citizen’s Association)
  3. partner with an eligible organisation and that organisation is the applicant (e.g. that organisation has the required DGR status).
Here is a recent example from Queensland in which a school's Parents and Citizen's Association made an application on behalf of the students at the school. This article was reported in the Ayr Advocate on 7 October 2009. "Young athletes at the Millaroo State Primary School have improved facilities to work with following the purchase of new sporting equipment using funding from the community grants scheme. The school's Parents and Citizen's Association were successful with their application to the Queensland Country Credit Union's community grants scheme ... The funding of $2450 resulted in the purchase of new athletic equipment including block high jump mat, rubber discus, shot put and long jump strips ... "

The Application Process

Answer

​You could start by looking at peak bodies who are not-for-profit. Your local council is also a good source of information, particularly in the area of social and environmental planning – this will help you place your project within the local context, which will be helpful in funding applications. Breakfast meetings run by councils provide great opportunities for networking.

Answer

​This varies from fund to fund, but as general rule, this information is posted on the funder website. Check these dates carefully and ensure you know your deadlines and how applications will be accepted.

Answer

Funders look for prospective applicants that:

  1. check the 'funder's' website for details about the funds they offer. It's frustrating for the funder when the applicant has not looked at the funder's website before contacting them or worse, submitting an application that does not fit the criteria. Remember, funding priorities can change from year to year.
  2. meet the required eligibility requirements or have sought a genuine partnership with an organisation that does
  3. have 'thought' about their idea before putting pen to paper and are committed to project.

Types of Funds

Answer

​The terms ‘sponsorship’, ‘grant’ and ‘donation’ can get used in loose ways, which are not always technically correct. However, generally speaking, a grant is non-commercial in nature; a once only payment made for a specific purpose for which the successful applicant must account in full. In contrast, sponsorship is generally acknowledged as a marketing activity, in which the funder can see a tangible benefit in providing funds (e.g. a niche market; supporting their image as good citizens etc). A tax deductible donation must be a gift. Sponsorship is not a gift.