The Australian Government/Australian Taxation Office has created an incentive to encourage ancillary funds to distribute even more to support organisations in need at this time.
Private Ancillary Funds (PAFs) or Public Ancillary Funds (PuAFs) that increase their minimum required distribution by at least 4% in 2019-20 and 2020-21 combined will be entitled to credits (equal to half the percentage above the minimum) to reduce their minimum required distribution by up to 1% each year until the credits are exhausted. For example:
Nonprofit organisations that are eligible to receive funds from PAFs or PuAFs (i.e. organisations that have DGR status) subscribe to The PAF Guide, which is the only online database of every ancillary fund in Australia. Take a free tour of the Guide here.
Taxation Administration (Coronavirus Economic Response Package—Ancillary Funds) Amendment Guidelines 2020 (Australian Government webpage)
Amended guidelines for ancillary funds during COVID-19 (ATO webpage)
Incentivising increased support for charities in response to COVID-19 (Media Release by Assistant Minister for Finance, Charities and Electoral Matters)
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