Nature of the fund
An ADRF provides money for the relief of people in Australia in distress as a result of a disaster. This requirement must apply to the fund's actual distributions and be reflected in the fund's constituent or governing document.
Such relief can cover a broad range of activities. These will vary with the nature of the disaster and the types of distress being suffered – for common examples of relief, as well as what is excluded, see Types of relief.
Separate ADRFs for each disaster
A separate ADRF is normally required for each disaster. However, where several disaster declarations are made covering an ongoing event such as a flood or widespread bushfires, you can set up one ADRF to help victims of one or more declared disasters. The rules of your fund should mention the relevant declarations.
Fund rules
The rules of your fund must satisfy the public fund requirements and show the fund is established solely for providing money for the relief of people in Australia in distress as a result of a declared disaster. This includes relief by way of assistance to re-establish a community.
The following considerations will help you clarify the fund’s aims and strategies:
- who the fund is intended to help
- why these people need help
- what help the fund provides to these people
- how these people are selected.
We also recommend:
- The name of your fund includes the particular disaster event.
- The rules mention the final date for receipt of tax-deductible gifts.
To be endorsed as a deductible gift recipient (DGR), you must also have acceptable rules dealing with the transfer of surplus assets on winding up the fund or on revocation of endorsement.
If your fund is established as part of a charity or an Australian government agency and that organisation is not itself a DGR, it must maintain a gift fund for gifts and deductible contributions made to the ADRF.
If you intend to set up the fund so that it is a registered charity, your rules will also need to meet the ACNC’s requirements. In particular, the rules must clearly set out your fund’s charitable purpose.
Working with an existing DGR
Setting up an ADRF is one option to assist disaster affected people in Australia. You could also consider partnering with an existing DGR that conducts disaster relief activities. Partnering with an existing DGR provides the benefit that it is already established to receive donations and provide funds and assistance.
You could contact:
- existing ADRFs already set up for a particular disaster
- necessitous circumstances funds assisting people in financial distress
- public benevolent institutions providing disaster assistance including counselling.
See also: