Gift Account - terms and conditions

Terms and Conditions

This agreement is between “the Donor” and The Gift Trust.

1. Opening a Gift Account

The Donor acknowledges that:

1.1 The Gift Trust will open a Gift Account for the Donor and hold all funds donated for or on behalf of the Donor in that specified ring-fenced Gift Account, which can only be used for charitable distributions.

1.2 While the funds are held in the Gift Account The Gift Trust shall be entitled to deduct a fee from the Gift Account to cover its operating costs, calculated and deducted quarterly. These fees are outlined in the fee schedule which will be attached to the application form

2. Donations into Gift Accounts

2.1 The Donor understands that once any donations are made to the Gift Account they are non-refundable to the Donor and can only be used for charitable purposes.

2.2 The Donor wishes to donate funds to the Trust to be held and used for charitable purposes. Other individuals or organisations can also donate funds into the Gift Account and will receive their own tax receipt.

3. Gift Recommendations from the Donor

3.1 The Gift Trust will only make charitable distributions from the Gift Account after receiving advice from the Donor.

3.2 The operation of the Gift Account allows the Donor to provide gift recommendations and not directions to the Trust.

3.3 When a Donor makes a gift recommendation, they understand that The Gift Trust will conduct all necessary due diligence to ensure that any potential donee organisation is a legitimate recipient of funds from a charitable trust and that the grant is legally appropriate in furtherance of the relevant charitable purposes prior to approving any donation. The Gift Trust will approve the gift recommendation if:

a) The proposed recipient is a charitable entity (either in New Zealand or elsewhere if permitted by New Zealand law), or the proposed recipient is otherwise a legitimate recipient of a distribution from a charitable trust in furtherance of the relevant charitable purposes (see The Gift Trust’s Donations Policy for more details of eligible and ineligible recipients), and

b) The distribution does not have the potential to result in any private pecuniary benefit to the Donor or persons associated with the Donor, or place the Trustees and/or the Donor in a position of conflict of interest.

3.4 The Trust may decline to accept the Donor’s recommendation if they are not satisfied by the above conditions or the donation does not meet the legal criteria for approval. If not so satisfied, the Gift Trust shall advise the Donor of such a decision, and the Trust shall continue to hold the funds in the Gift Account.

3.5 If the Trust has not been provided with any gift recommendations from the Donor for a period of three (3) years:

a) The Trust will make every effort to contact the Donor to request that a donation recommendation is made, or to receive a written statement about the Donor’s intentions for the Gift Account in the coming years (e.g. the Donor may be looking to create an endowment, and in this case no spend down will be required).

b) If The Gift Trust does not receive a response within a 12-month period, The Gift Trust will be entitled to transfer the entire Gift Account balance to The Gift Trust General Fund, to be distributed for charitable purposes favoured in the Donor’s previous advice or as the Trustees see fit.

4. Succession Plan

4.1 The Donor will specify a Succession Plan in the Gift Account application form so that The Gift Trust understands the Donor’s wishes for distributing the Gift Account funds upon the Donor’s death or if they are no longer able to serve as an adviser to the Gift Account.

4.2 After the Donor’s death, or if they are no longer able to advise, The Gift Trust will follow the advice provided by the Donor in the application form, either distributing the remaining funds in the Gift Account to the nominated charities, or to The Gift Trust General Fund, or the Trust will contact the person nominated by the Donor to act on their behalf as the adviser on the Account.

5. Ongoing Liaison

5.1 The Trust will provide the following ongoing liaison with the Donor while the Gift Account still retains funds:

a) Statements specifying the Gift Account balance, how much was distributed to charitable causes and to whom, interest accrued, and fees that were deducted. Note these are provided through a password protected online account management system.

b) The Gift Trust will forward any letters of thanks that we receive for the donation distributions.

c) For any donations distributed of over $10,000, The Gift Trust will follow up with the charity to receive a donation report on how the funds were used and will forward this to the Donor.

6. Donor Acknowledgement

6.1 The Donor may remain anonymous or be named to their chosen charities depending on their wishes for each donation.

7. General

7.1 The Donor acknowledges that the Trust is bound by New Zealand law, that the Trust has and must retain charitable status under New Zealand law, and that under New Zealand law, unless otherwise permitted by the Trust Deed, the Trustees cannot delegate their powers or discretions to the Donor or any other person.

“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

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