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
✔
✗
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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 ✔ ✔ ✗

 

 

A note of gratitude to The Gift Trust for always taking the time to learn the cultural nuances around doing this kind of work in so many countries. I am always so impressed with your due diligence process and openness to understanding why things are the way they are. Thank you!

Geneva Loftus Executive Director, Move92

We set out to build a new pooled fund as a way to give passionate people an avenue to contribute to climate action. The Gift Trust provided expert guidance, professional operational infrastructure, and generous connections. What’s resulted is a boost of much needed funding going to incredible climate charities doing the mahi here in Aotearoa.

The Climatics Gift Trust client

Aroha mai, aroha atu – is an expression of interconnectedness, reciprocity and balance, advocating for a world where kindness, empathy, and love are shared freely and returned, fostering stronger communities and personal well-being. This whakataukī embodies the spirit of the Matariki Koha Fund, our connection with Te Āti Awa iwi and the tautoko The Gift Trust provides us all. Kia ora!

Wellington Community Fund

The Gift Trust is hands down the best thing we’ve done to help us with our giving journey. They make it easy, fun, and put us in touch with charities we would never know about otherwise. We can’t recommend them highly enough!

Holmes Charitable Fund Gift Account holder

We are hugely grateful to The Gift Trust for undertaking research into the disability sector and for identifying and then introducing us to an organisation which was willing to take on an additional project to fill a gap that we had identified in the disability support network. Yvonne and Cheryl at The Gift Trust continue to provide the link in our relationship with the organisation and to oversee the provision of meaningful and regular reports on impact.

Columba Fund Gift Account holder

Finding charities that fit well within a trust's giving brief can be difficult and time-consuming. When we needed charity research done for one of our trusts under management we contracted The Gift Trust to do it for us. They had a wealth of knowledge and connections that provided us with a concise and clear report, giving us the information we needed to decide where funds should be allocated.

Dentons New Zealand

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 CEFEX Certified Investment Adviser, Bloomsbury Associates

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 New Zealand

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 Specialist charities lawyer

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