Comparing ways to give

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There are many ways to give to charity. In this article we’ve made an easy to compare chart showing the benefits of our Gift Accounts, and other options available to you.  

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There are many ways to give to charity. The chart below compares our Gift Accounts to other options available to you.  

For more advice on how to meet your personal charitable giving goals, contact The Gift Trust on (04) 391 4438 or info@gifttrustdev.wpengine.com.org.nz

A Gift Trust Account Private Foundation Direct cash donation
Consider this when You want a simple giving solution with low costs and the potential to grow your charitable assets tax-free over time. You want to operate a charitable organisation and potentially employ staff, hire investment managers, actively manage grant-making, and sponsor charitable events. You want to make one-off donations and manage your own donation receipts at tax time.
Organisations you can support Registered charities, with some flexibility to support non registered charitable causes and international charities. Depends on your charitable trust deed. If you want a tax refund, only registered charities or donee organisations.

START-UP
Start-up time Immediate, on receipt of gift funds. 1 to 3 months minimum. N/A
Start-up costs None. Can require substantial establishment costs (legal & personal time). N/A
Free online setup
✔
✗
✗
Cash/debit/cheque is free, but credit cards and many online fundraising intermediaries charge fees.
Practical minimum size $1,000 to open a Gift Account, but must have $5,000 to start donating. Substantial assets required, could require $1 million and up. $5 (for tax credit eligibility).

ADMIN
Ongoing admin Recommend grants to favourite charities. All other admin provided by The Gift Trust. Manage assets, keep records, select charities, administer grants, file tax returns, maintain board minutes, etc. Collate donation receipts at end of year and respond to future donation requests.
Annual admin fee 1 – 2% fee p.a (lower fees for gift account over $1 million). Depends on admin and staffing costs – approximately 2-4% depending on the size of the fund (including end of year accounts and audit requirements). N/A – annual collection of gift receipts.
Responsibility The Gift Trust completes all reporting under its charitable status. Private foundation board of trustees assumes full responsibility and risk. Accounts and statement of performance required within 6 months of the end of the financial year. N/A.

TAX + INVESTMENTS
Tax-exempt status All donations made to a Gift Account are eligible for 33% tax credit under The Gift Trust’s charitable status. Must establish a private foundation and register for charity exemption. Donations to registered charities are eligible for 33%* tax credit.
Donor control + investment Donor can make grant recommendations and provide advice on investments of funds with their financial adviser. Donor retains complete control over investments and grant making, limited only by trust deed. Must establish, research, and mange own investment vehicles. Complete control. Choose charities and gift as they like.
Investment growth potential ✔ ✔ ✗
Tax on investment income None None N/A

EXTRA
Option to support charities anonymously ✔ ✔

Limited. Trustees names listed publically on the charities register.		 ✗
If you wish to get a tax donation receipt, you must provide your name.
Ability to name successors, leave legacy ✔ ✔ ✗

 

 

“The Gift Trust provides a personalised service for my plan to give, donate and support the causes that are important to me at a reasonable cost.”

— Gillian, Gift Trust donor

"The gift accounts offered by The Gift Trust are a good option for individuals or organisations wanting to consolidate their charitable giving. I encourage all financial advisers to consider this important development."

– Dr Rodger Spiller, Financial Adviser, Money Matters

“An area of importance to our clients is charitable giving. The Gift Trust offers an opportunity to streamline the gifting process, while adding increased confidence and transparency. It also provides robust due diligence of eligible charities and access to additional support services for clients with complex needs.”

— Philip Stevenson, Bloomsbury Associates. CEFEX Certified Investment Adviser

“We would like to recognise and offer thanks for the support we receive though The Gift Trust’s donation. An annual donation from one of your donors is one of the largest donations that Kaibosh receives each year and has been absolutely pivotal to our ability to operate with confidence and to expand our operation across the Hutt Valley. We are extremely thankful.”

— Matt Dagger, Kaibosh, Gift Trust grant recipient

“My gift account has made my giving easy. It lets me get straight to the fun and satisfying part of giving to the causes I care about, without the hassle.”

— Anake, Gift Trust donor

"The Gift Trust provides a flexible and robust structure, to support donors' charitable giving intentions, while still enabling them to have a say in the investment of donated funds."

– David Ireland, Partner, Dentons Kensington Swan

"A Gift Account with The Gift Trust is a great option as an alternative to setting up a charity or private foundation while still preserving clients' control over their giving."

– Steven Moe, Partner, Parry Field Lawyers

"The administration and ongoing compliance requirements involved in setting up a private charity can be onerous, and even risky. Setting up a Gift Account allows The Gift Trust to look after those requirements, and provide support that allows the donor to focus on what they really want to do with their gifts."

– Sue Barker, Sue Barker Charities Law

"The Gift Trust takes the guesswork out of giving. Having support with research and due diligence on donations ensures that funds are truly making the desired impact. It has been a real pleasure to work with The Gift Trust."

– Ben, Gift Account holder

Get in touch

    PO Box 19120, Marion Square
    Wellington, New Zealand

    04 391 4438