Receiving tax-deductible gifts from U.S. donors
The Gift Trust can help your U.S. donors make cost effective, tax deductible donations to your NZ charity, while keeping things simple for you. We’re a philanthropic charity based in New Zealand that supports people to make gifts to charitable causes anywhere in the world. Since 2009, we’ve helped facilitate more than $78 million NZD worth of cross-border giving to New Zealand charities.
With our U.S. 501(c)(3) partners, we can provide a tailored experience for every donor, with the whole process taking as little as 3-6 weeks, from when the gift is made to when it gets to you.
How it works
Before your donor makes their gift, you’ll need to complete our onboarding form, to give us the information we need to get your donation page set up. From there, the process is simple:
- Your U.S. donor gives to our U.S. partner, through a donation page with your charity‘s branding – just like this one. Your donor can give by credit/debit card, bank transfer, donor-advised fund (DAF) grant, stock gift, check, or any other way that’s valid under U.S. law (subject to approval by our U.S. partner).
- Our U.S. partner receives the gift, sends the donor a U.S. tax-deductible receipt, and makes a grant to us.
- We handle the U.S. compliance, and make a grant to you in New Zealand Dollars, minus our fee.
Frequently asked questions
What fees do you charge?
We charge a fee of 3% or less, depending on the size of the donation. There’s no set-up fee, and our processing fee is deducted from the gift amount before we make each grant to you.
Payment processing fees are charged on credit/debit card and cryptocurrency donations, and a foreign exchange fee applies to all donations – these are charged by the payment processors, not by us or our U.S. partners.
My donor has a question or needs advice - can you help?
If the donor is comfortable with it, our team is happy to liaise directly with them or their advisers (financial adviser, DAF provider, family office, etc.) to navigate the process and provide updates and reassurance. In many cases, connecting directly with our team has helped recipients and advisers find easier or faster ways to get the funding through. Alternatively, we can relay our advice through you.
Is The Gift Trust a 501(c)(3) organisation?
No, but our U.S. partners Every.org and Myriad USA are both 501(c)(3) organisations, each with significant experience in borderless giving. They issue tax acknowledgement letters to donors in line with U.S. regulations, which donors can use to obtain a U.S. income tax deduction.
Copies of our U.S. partners’ IRS determination letters are available upon request.
Legal note: Myriad USA is a U.S. public charity within the meaning of Sections 501(c)(3) and 509(a)(1) of the Internal Revenue Code. Every.org can be treated as a US 501(c)(3) public charity as described under IRC Sections 509(a)(2) and 170(b)(1)(A)(vi). Donors are eligible for a U.S. income tax deduction for their contributions, to the extent permitted by U.S. tax law. Neither The Gift Trust, Myriad USA, nor Every.org provide legal, tax, or investment advice and encourage all donors, fundholders, and fund advisors to consult with their professional advisors to determine the best options for their individual situations.
I'm not a New Zealand registered charity - am I eligible?
New Zealand organisations that are not registered charities may be able to use our U.S. donation service if they have charitable purpose. We assess such requests on a case-by-case basis – get in touch for more information.
If you’re not a New Zealand organisation, we’d be happy to connect you with our partners at Myriad USA, who can help you receive U.S. donations through an American Friends Fund. Please get in touch for more information.
Can I test the service, or receive a donation, without setting up a donation page?
We can’t make a grant to you until you’ve completed our onboarding form, but the donation page is optional. If you don’t want your own donation page yet, we’ll provide you with two pre-filled links that donors can use to make donations to your charity; one for the most common payment methods, and one for everything else.
Funds do not pass into the legal ownership of the your charity until we grant them to you. Any grant(s) we may make to your charity are the result of independently-made granting decisions by The Gift Trust.
Can I receive grants from U.S. grantmakers through The Gift Trust?
New Zealand charities can also use this service to receive grants from U.S. foundations. We will need to work with you, your funder, and the relevant U.S. partner entity to ensure that the paperwork is correct, so please contact us as soon as possible if you are applying for (or have received) a U.S. grant. In most cases, you will still be accountable to your U.S. funder for any conditions or requirements of the grant, including reporting.
How long will the funds take to arrive?
U.S. funding and financial processes often move a lot slower than those in New Zealand – we’ve streamlined things as much as we can, but there can still be wait times and unexpected delays. We generally won’t be able to tell you when you’ll receive the funds until they land with our U.S. partner entity, after which it generally takes between two and six weeks.
Getting started
To get started, complete our onboarding form:
The Gift Trust is a member of Myriad, the alliance for borderless giving.