Burnet Institute welcomes the Federal Government’s announcement of new incentives for philanthropic funds to support charities during the COVID-19 pandemic.
Public and private ancillary funds will be given a credit if they make total distributions in 2019-20 and 2020-21 that are at least four percentage points above the minimum required distribution level.
The move is designed to encourage philanthropists to step up their giving levels now during the COVID-19 pandemic, when charities and NGOs are being significantly impacted.
The Government also declared the COVID-19 pandemic across Australia a disaster for the purpose of establishing Australian disaster relief funds as DGRs, allowing these funds to receive tax deductible donations.
“We know that many Australians are facing hard times as a result of COVID-19, and that the role charities play in supporting those doing it tough is as important as ever,” Assistant Minister for Finance, Charities and Electoral Matters, Senator The Hon. Zed Seselja said.
A recent report by JBWere estimates donations to Australian charities could decrease by 7.1 percent in 2020, and by a further 11.9 percent in 2021 due to the impact of COVID-19.
“Economic consequences of the pandemic will hit many charities hard this year, particularly as the recession hits,“ said Rob Daly, Burnet Institute Executive General Manager, Philanthropy and Supporter Engagement.
“The government’s initiative to incentivise giving will really help ancillary funds to continue their support, and increase it when it’s needed most.”
If you operate or represent a philanthropic fund, trust or foundation, and would like to learn more about Burnet Institute and our COVID-19 emergency response, please contact Julie Wood, Manager – Trusts and Foundations.