# Overview Welcome to The Gift Trust's Guide to Gift Accounts. This guide provides an overview of The Gift Trust’s programme and policies. It also contains important information about creating and maintaining your Gift Account. All activities of The Gift Trust and donors are subject to the terms and conditions of this programme guide. We may revise this from time to time to reflect changes in the programme. ## About The Gift Trust The Gift Trust's purpose is to simplify generosity, to make more good happen. We connect your charitable giving with those organisations who are making a difference on the ground, in the areas you care most about. It’s personalised giving made easy, so that you can give with more confidence and deeper effect. The Gift Trust is a registered charity that helps people who want to make larger donations to charitable causes to do so more easily and effectively. Setting up a Gift Account at The Gift Trust makes it easy for individuals, families or companies to set aside funds for charitable causes and to donate to the causes they care about whenever they would like. Starting from $1,000, you can join our community of donors. You can open a fund almost instantly with an initial single tax-deductible contribution. We then manage your Gift Account and help you recommend gifts, at your pace, to the charities you want to support. We provide research and due diligence on the charities and can help you create a proactive, strategic approach to your giving, rather than simply giving when you are asked. The Gift Trust has been working with donors since 2009 to help them create the difference they want to see in the world. Our support helps remove all of the administrative hassle, so you can focus on the joy of giving. ### Benefits of a Gift Account * Recommend gifts to any qualified charitable cause at your own pace, anonymously if you wish, or in any name that appeals to you. * Access philanthropic advice and support, including different and innovative models of giving, and best-in-class research services. * Obtain New Zealand or select international tax credits based on when you fund your Gift Account, rather than when you recommend gifts to charities. * Choose from a variety of investment options to make your funds go further, with tax-free growth. * Establish a legacy in perpetuity by naming successors to your Gift Account. * Focus on the joy of giving, while we take care of the compliance and due diligence. # Recommending gifts Support your preferred charitable causes by recommending gifts to them from your Gift Account. To recommend a gift to a charity from your Gift Account, simply log in to [My Gift Account](http://myga.thegifttrust.org.nz) and click `Recommend a Gift`. We will always follow your recommendations as a Gift Account holder, unless doing so would violate [our policies](/gifts/our-grants-policy). We endeavour to process all gift recommendations within ten business days, however a gift may take longer to process if it: * requires additional due diligence, * is from a Gift Account managed by a financial adviser, or * is for more than $25,000 NZD. {% hint style="info" %} To keep your Gift Account [active](/your-gift-account/opening-a-gift-account#when-succession-occurs), recommend a gift at least every three years. {% endhint %} Gifts to unregistered, unincorporated, or international charitable causes generally require additional due diligence, which may attract a [fee](https://thegifttrust.org.nz/how-it-works/fees/) depending on the size and level of activity of your Gift Account. # Our grants policy Gift Accounts can make grants, and pay non-grant expenditure for charitable purposes, in line with our policy. As a registered charity, there are certain restrictions on what we can and can’t give to. If we can’t give to the exact charitable cause you’re wanting to support, we’ll work with you to find an alternative solution. {% hint style="info" %} 'Gift' and 'grant' are used interchangeably in our documentation - regardless of which term is used, all expenditure from a Gift Account is a grant (except in the circumstances listed in 'Non-grant expenditure' below), and is required to be used for the charitable purpose specified. {% endhint %} A grant may only be paid by The Gift Trust if all of the following criteria are met: * The recipient of the funds is subject to legal requirements equivalent to those imposed on New Zealand registered charities, or has agreed to use the granted funds in accordance with such restrictions * The purpose of the grant is a purpose considered charitable under New Zealand law * The purpose of the grant is not prohibited by our policies or procedures * The benefit of the grant is to the public ## Eligible recipients Grants may only be paid to the following recipients: * New Zealand registered charities * Other incorporated entities which have been deemed by the Executive Director to be subject to equivalent legal requirements to those imposed on New Zealand registered charities * Other incorporated entities, if the entity has agreed in writing: * to use the granted funds for a purpose considered charitable under New Zealand law, and * and to not use the granted funds for private benefit, and * to report back to The Gift Trust on the use of the granted funds, in a manner agreed to by the Executive Director * Unincorporated entities or individuals with a fundholder that meets one of the aforementioned criteria * Unincorporated entities or individuals, without a fundholder, only when *all* of the following requirements have been met: * The recipient has agreed in writing to use the granted funds in the manner required for unincorporated entities, as described above * The recipient's circumstances prevent them from incorporating, as their advancement of their charitable purpose would be impeded were they to incorporate * The recipient's circumstances have been independently confirmed by a person known to both the Trust and the recipient, a list of which is maintained by the Board ## Prohibited purposes Grants cannot be paid for the following purposes, regardless of their recipient: * Activities that are illegal in New Zealand, violate our Trust Deed, or (in our opinion) would harm our reputation were we to fund them * Advocacy (including political activity), except in accordance with [New Zealand laws and regulations](https://www.charities.govt.nz/ready-to-register/need-to-know-to-register/charitable-purpose/advocacy-for-causes) * Any purpose that (in our opinion) directly or indirectly supports or enables hate speech or hateful activities {% hint style="info" %} We define hateful activities as activities that incite or engage in violence, intimidation, harassment, threats, or defamation targeting an individual or group based on their actual or perceived race, colour, religion, national origin, ethnicity, immigration status, gender, gender identity, sexual orientation, or disability. We define hate speech as any speech that stirs up, advocates for, incites, or normalises hateful activities as defined above. {% endhint %} * Any purpose that would result in private benefit to the donor of the funds, or to the person making the gift request, or to any person or entity related to the donor or requesting person, unless that benefit is: * A benefit obtained by a broad community of which the relevant person is a member, or * Permitted by [New Zealand regulations](https://www.taxtechnical.ird.govt.nz/questions-we-ve-been-asked/2016/qb-1605-income-tax-donee-organisations-and-gifts) in circumstances where the donor could obtain a tax credit for an equivalent donation ## Non-grant expenditure Non-grant expenditure (also known as donor-funded expenditure) can be made from a Gift Account if it is for one of the following purposes: * Payment to a business or educational institution for the provision of a service, when the provision of that service furthers a charitable purpose, and does not result in private benefit as described above * Reimbursement of educational or living expenses to recipients of fairly-determined scholarships administered through a Gift Account Administrative credits and deductions can be made from Gift Accounts for purposes determined by the Trust, for example, for account or investment fees. Such credits or deductions are made entirely at the discretion of the Trust, and as such do not create a supply to the donor. # Disclosures We need to know about any relationships or connections between Gift Account holders and the causes they support. ## Relationship disclosures When recommending a gift, you must disclose any relationship (family, business or otherwise) that you may have with the recipient charity, even if it's not directly related to the gift in question. {% hint style="warning" %} For example, if you're recommending a gift to a school to support a building project, and you have a child attending that school, you need to tell us, even though the building project doesn't benefit them in particular. {% endhint %} ## General disclosures When recommending a gift, we require you to confirm that the gift gift does not: * Result in any direct benefit to yourself * Result in any goods, services, or benefits being received by any specific individual, unless such receipt is charitable and at arms-length from you * Pay for dues/membership fees * Cover tuition costs for someone you're connected to * Support a political campaign or lobbying activity * Support a private non-operating foundation Additionally, we require you to affirm the following statement: > You understand that this is a recommendation and not a direction. You understand that The Gift Trust will perform the necessary due diligence to ensure that the nature of the gift is charitable. In the unlikely event the gift does not meet our criteria for approval, The Gift Trust may not approve your request or pay out the gift. We will, however, work with you to find an alternative way to fulfil your giving intentions. # Donating into a Gift Account Funds are added to Gift Accounts through donations, either from their account holders, or from members of the public. Donations into Gift Accounts are irrevocable charitable gifts to The Gift Trust, and donated assets pass into our full legal and beneficial ownership. This is why we're able to provide donation tax receipts immediately - legally, your donations are to us, not the charities for which you recommend gifts. While we hold full legal control over all donated funds, we will always follow your recommendations as a Gift Account holder, unless doing so would violate [our policies](/gifts/our-grants-policy). ## Donating as an NZ tax resident The Gift Trust is a New Zealand registered charity, with IRD donee organisation status. Donations of cash (either NZD or foreign currency) are eligible for New Zealand donation tax credits when made directly to The Gift Trust. To make a direct donation by credit/debit card or bank transfer, log in to [My Gift Account](https://myga.thegifttrust.org.nz/) and click `Donate Now`. Your donation will be allocated to your Gift Account. ## Donating as a U.S. tax resident The Gift Trust has partnered with Every.org and Myriad USA to enable tax-efficient giving for Gift Account holders who are U.S. tax residents. Through this partnership, you can donate cash, stocks, cryptocurrency, or other assets, or by check, or from your U.S. DAF, and receive a U.S. tax-deductible receipt. To arrange a donation via one of our U.S. partners, [contact us](mailto:info@thegifttrust.org.nz). ## Donating as an overseas tax resident As a member of Myriad, we are able to facilitate tax-efficient giving for Gift Account holders who are tax residents of other jurisdictions, including Australia and some European countries. To arrange such a donation, [contact us](mailto:info@thegifttrust.org.nz). # Tax credits and receipts Donations to The Gift Trust and our international partners are generally eligible for donation tax credits in New Zealand and the partner's jurisdiction respectively. {% hint style="warning" %} The Gift Trust does not provide legal or tax advice, and we recommend you obtain independent advice from a qualified legal or tax adviser with respect to your personal circumstances. {% endhint %} ## New Zealand tax credits New Zealand tax residents are eligible for a donation tax credit for all donations they make directly to The Gift Trust, including into their Gift Account, irrespective of when some or all of those funds may be paid out to recipient charities. The donation tax credit reduces the amount of tax you have to pay, and is capped at one-third of your total annual taxable income. If you are planning a one-off donation that is larger than your annual taxable income, you may wish to [structure](https://thegifttrust.org.nz/2024/02/05/how-to-give-50-more-to-the-causes-you-care-about-at-no-extra-cost/) your donation so as to maximise your potential tax credit. To claim your donation tax credit, you or your adviser(s) will need to submit your tax receipt(s) from The Gift Trust to the IRD. More information about this process can be found [on their website](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/individual-tax-credits/tax-credits-for-donations). Trusts, partnerships, and companies are not eligible for New Zealand donation tax credits. However, donations to The Gift Trust by such entities are generally deductible as business expenses. ## New Zealand tax receipts You will generally be issued with a single receipt for all donations you make directly to The Gift Trust at the end of each tax year. This consolidated receipt has been approved by the IRD, and shows the amount and date of each individual donation. If you donate from multiple legal entities (i.e. from a business or trust as well as from yourself personally), you will receive a separate receipt for each entity. If you wish to receive an individual receipt for each donation, or have special receipting requirements, please let us know. ## Donations via international partners Receipts for donations made via our international partners (such as Every.org and Myriad USA) are issued by the relevant partner organisation. If you need a copy of your receipt, please either contact them directly, or contact us and we can do so on your behalf. {% hint style="info" %} If your donation was made via Every.org, you can [log in to their website](https://www.every.org/my-giving/history) and have them re-send your receipt. {% endhint %} # Opening a Gift Account Individuals, families, companies, trusts, estates, private foundations and not-for-profits are eligible to open a Gift Account in their own name. The individual who fills out the application form is considered the ‘primary account holder’ (for individual accounts) or ‘primary account manager’ (for accounts in the name of a body corporate, such as a family trust or company). Your new Gift Account must receive at least $1,000 NZD in donations in its first three months. You can make this initial donation when you open the account, or if your Gift Account is public, your community can donate. *Read more:* [Keeping your Gift Account active](/your-gift-account/keeping-your-gift-account-active) ## Additional users As the primary account holder, you can give other people access to your Gift Account, with different roles:
RoleExampleCan view balance and transactionsCan donate into the Gift AccountCan recommend gifts to charitiesCan add/remove othe users
Primary account holder (1 per Gift Account)Youtruetruetruetrue
Joint account holderA trusted family membertruetruetruefalse
AdviserA lawyer, accountant, or financial advisertruetruefalsefalse
You can add additional users through [My Gift Account](https://myga.thegifttrust.org.nz/), or by contacting us. ## Succession When a primary account holder dies, their Gift Account's funds remain in the ownership of The Gift Trust. By making a succession plan for your Gift Account, you indicate what you'd like us to do with its funds. Primary account holders may choose one or more of the following succession options:
Nominating one or more individuals as successors You may nominate successors (friends, family members, or others who know your wishes well) to succeed you. Control of your Gift Account will be transferred to them, but they will not receive any funds or assets personally. (If you also choose one or more additional succession options, the percentage of your account you assign to those options will be deducted from your Gift Account before control is transferred to your successor(s). If the only remaining contactable successor is under the age of 16 at the time succession is triggered, your Gift Account will be managed without distributions by The Gift Trust until that successor turns 16. If we cannot contact your successors after two years, or if they are unwilling or unable to serve, and if you leave no other instructions with us as to how you wish your Gift Account to be managed, we will transfer your Gift Account assets into The Gift Trust’s General Fund to be held and distributed for charitable purposes, in line with the information we have about you and any causes you may have previously supported.
Nominating one or more charitable causes to receive your Gift Account’s funds If you choose to nominate one or more charitable cause(s) as successor to your Gift Account, the funds remaining in your Gift Account (or the percentage of those funds you choose to assign) will be transferred to that charitable cause. If the cause(s) you specify are no longer in operation or are no longer charitable, we will endeavour to transfer your funds to causes carrying out similar charitable work.
Transferring your Gift Account’s funds to The Gift Trust’s General Fund for charitable purposes If no account holder or successor remains, upon notification of the death of the last remaining account holder we will transfer the remaining funds from the Gift Account (or the percentage assigned to us) to The Gift Trust's General Fund to carry out our charitable purposes.
Submitting a separate succession instructions form If you wish to leave more detailed succession instructions (for example, if your Gift Account is to function as a bequest), you can file these instructions with us. If you indicate this option but do not file a form, we will transfer your Gift Account assets into The Gift Trust’s General Fund to be held and distributed for charitable purposes, in line with the information we have about you and any causes you may have previously supported.
We will ask you for your succession plan when you apply to open your Gift Account. If your wishes change at any time, just let us know. ### When succession occurs Succession for individual Gift Accounts will be triggered upon the death of the primary account holder, unless there is a joint account holder who is the spouse or de-facto partner of the primary account holder, in which case they will become the new primary account holder (and will be asked to indicate their own succession options). Succession for Gift Accounts in the name of a body corporate will be triggered upon the dissolution of the body corporate, unless the primary account manager (or, in their absence, another senior officer of the body corporate) requests that control of the the Gift Account be reassigned to another body corporate. For all accounts, succession may also be triggered at the discretion of The Gift Trust in the event that we are unable to contact any of the existing account holders/managers after three years of attempting to do so. # Keeping your Gift Account active There's certain things you need to do to keep your Gift Account active. Gift Accounts aren't intended to sit dormant. To keep your Gift Account active, make sure you're holding a balance and regularly recommending gifts. ## Holding a balance Your new Gift Account must receive at least $1,000 NZD in donations in its first three months. You can make this initial donation when you open the account, or if your Gift Account is public, your community can donate. Your Gift Account must also, in each financial year: * receive at least $1,000 NZD in donations, * **or** must have a closing balance of at least $20,000 NZD. No gift will be paid that reduces a Gift Account's balance to below $400 NZD, unless that Gift Account usually maintains a zero balance and pays fees separately. ## Recommending gifts If you aren't regularly recommending gifts from your Gift Account, we ask that you remain in contact with us so we know you’re still wanting to keep your Gift Account open. If we don’t hear from you for three years, we may (at our discretion) [close your Gift Account](/your-gift-account/opening-a-gift-account#when-succession-occurs) and transfer its assets into our General Fund, to be used for charitable purposes. # Growing your Gift Account Your donations can earn returns tax-free until you’re ready to grant them, helping you create a bigger impact over time. Gift Accounts with balances over $20,000 NZD attract tax-free investment growth, helping your donations do more good over time. ## Choosing an investment option By default, your Gift Account balance (when over $20,000) is invested in our rolling term deposits, guaranteeing modest growth whilst preserving capital. You can choose to keep some or all of your balance in term deposits, or you can put some or all of it in another investment option. Make sure to consider: * **Risk tolerance:** Our pooled and adviser-managed funds are designed to perform well over the long-term, but like any investment, you may see short-term drops in value. * **Time horizon:** If you're looking to distribute a large portion of your Gift Account's funds in the next five years, consider keeping that portion in term deposits, to preserve the capital. Once you've decided how you'd like to invest your Gift Account funds, or if you'd like to change your investment plan, [contact us](mailto:info@thegifttrust.org.nz). ## Investment options We offer three investment options for Gift Accounts: * Term deposits * Pooled socially-responsible investment funds * Adviser-managed portfolios Investment growth is calculated monthly and credited to your Gift Account balance for future gifting. ### Term deposits By default, Gift Accounts with balances over $20,000 NZD are pooled and invested in a series of rolling term deposits, giving: * Guaranteed but modest growth * Minimal risk of capital loss * Simple, stable management If you prefer capital stability, and intend to grant out your funds in the short-to-medium term, this is the best option for you. However, your funds wouldn’t grow as much as we’d expect them to in a well-performing investment portfolio. ### Pooled socially-responsible investment funds Our pooled socially-responsible investment (SRI) funds take account of a range of social and environmental factors and exclude investments in weapons and armaments, nuclear weapons, tobacco, child labour, alcohol, gambling, pornography, fossil fuel stocks, and factory farming. {% hint style="warning" %} Funds invested in the Growth SRI and Conservative SRI funds are managed on behalf of The Gift Trust by [Bloomsbury Associates](https://bloomsbury.co.nz/), and held by [FNZ](http://fnz.com/) as custodian. The value of funds invested in the funds may go down as well as up. The Gift Trust recommends you obtain independent financial advice before making investment decisions. {% endhint %}
SRI Growth fund Our SRI Growth fund is a diversified portfolio allocated to 80% equity and property, and 20% fixed income and cash. It is likely to achieve higher returns over 10 years or more, but is expected to show higher volatility in the value of funds held throughout that period. **Investment fees:** 1.3% p.a.\ **Projected long-term return (after fees):** 6.12% p.a.
Asset classTarget allocation (%)Investment products
Australasian equities7.8%
  • Perpetual Ethical SRI Fund (3.9%)
  • Australian Ethical Investment Ltd Australian Shares Fund (3.9%)
International equities68.3%
  • Australian Ethical Investment Ltd International Shares Fund (22.8%)
  • Pathfinder Responsible Investment Fund Wholesale, NZD hedged (45.5%)
New Zealand property2.8%
  • Goodman Property Trust
    (0.9%)
  • Kiwi Property Group Limited (1%)
  • Precinct Properties New Zealand Limited (0.9%)
International property1.1%Pathfinder Global Property Trust
Fixed interest18%
  • Vanguard Ethically Conscious Global Aggregate Bond Index Fund (9%)
  • Direct term deposits & NZ Government Stock (9%)
Cash account2%
SRI Conservative fund Our SRI Conservative fund is a diversified portfolio allocated to 30% equity and property, and 70% fixed income and cash. It is likely to achieve higher returns than bank deposits over a five-year period and with lower volatility than our SRI Growth fund. **Investment fees:** 1.01% p.a.\ **Projected long-term return (after fees):** 5.16% p.a.
Asset classTarget allocation (%)Investment products
Australasian equities3.8%
  • Perpetual Ethical SRI Fund (1.9%)
  • Australian Ethical Investment Ltd Australian Shares Fund (1.9%)
International equities24.4%
  • Australian Ethical Investment Ltd International Shares Fund (8.1%)
  • Pathfinder Responsible Investment Fund Wholesale, NZD hedged (16.3%)
New Zealand property1.3%
  • Goodman Property Trust
    (0.4%)
  • Kiwi Property Group Limited (0.5%)
  • Precinct Properties New Zealand Limited (0.4%)
International property0.5%Pathfinder Global Property Trust
Fixed interest68%
  • Vanguard Ethically Conscious Global Aggregate Bond Index Fund (34%)
  • Direct term deposits & NZ Government Stock (34%)
Cash account2%
### Adviser-managed portfolios If you work with a financial adviser, you can choose to have your Gift Account funds managed according to a personalised investment strategy. All adviser-managed portfolios are reviewed and approved by The Gift Trust to ensure alignment with our ethical and governance standards, giving you tailored growth while maintaining philanthropic integrity. # Fees Our fees cover our bespoke, personalised services, helping you get the most out of your giving. Our fee structure is designed to be transparent and fair, ensuring your charitable contributions are managed effectively while maximising their impact. By covering administration, due diligence, and professional management, your Gift Account enables giving that is both compliant and effective. ## Standard account fees For most Gift Accounts, account fees are calculated monthly as a percentage of the account’s daily balance, as follows: | Gift Account balance (NZD) | Fee charged on balance | | --------------------------- | ---------------------- | | First $100,000 | 2.5% p.a. | | Next $400,000 (up to $500k) | 2% p.a. | | Next $500,000 (up to $1m) | 1.5% p.a. | | Next $1,000,000 (up to $2m) | 1% p.a. | | Remainder over $2,000,000 | 0.5% p.a. | If a Gift Account gives out more than 80% of what it receives in a given quarter or year, an account fee of 2.5% of all donations received applies instead. Our minimum annual account fee, regardless of gifts made, is $400 NZD. If you fund your Gift Account through one of our international partners, a 1% flat fee is also deducted from your donation to cover receiving costs. Our usual fee for our U.S. partner fund service does not apply when funding a Gift Account, however the U.S. partner fund provider may charge a fee to cover their own costs, which will be deducted before we receive your funds. ## Service fees Additional fees apply for making complex gifts, processing non-bank payments, and additional services.
Gift fees We conduct thorough due diligence on each gift request, to ensure that the recipient is charitable and that the gift will be used effectively. In some cases, a fee is charged for this service: | Fee type | Fee amount (NZD) | | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------ | | Gifts to international or non-registered charities, or to charities requiring additional due diligence | $100 per recipient, per year | | Gifts from Gift Accounts with balances under $50,000 | $50 per gift request, waived for the first gift in each year |
Payment processing fees | Fee type | Fee amount (NZD) | | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | | Credit/debit card donation processing | As charged to us by [Stripe](https://stripe.com), typically \~2.5% of donation amount | | Foreign currency gift payment processing | As charged to us by [Wise](https://wise.com), typically \~0.25% of gift amount - deducted from amount paid to recipient unless requested otherwise | | Donations received via an [international partner](https://guide.thegifttrust.org.nz/your-gift-account/pages/k0r8xs3KIJP3IDvA49OL#donating-as-a-u.s.-tax-resident) | 1%, plus standard Gift Account fees |
Additional services | Fee type | Fee amount (NZD) | | ------------------------------------------------------------------------------------------------------------------ | ---------------- | | Collaborative fund online donation form, for receiving funds into your Gift Account from other donors | $100 one-off | | Bespoke collaborative fund web page, including donation form, for sharing your Gift Account’s story with the world | $250 one-off | | Staff time on bespoke research or philanthropic consulting projects – quotes to be given before commencing work | $150 per hour |
## New Zealand Friends Fund fees As a member of the [Myriad Alliance](https://myriad.org/), The Gift Trust operates New Zealand Friends Funds (NZFFs) for international charities with New Zealand donors. NZFFs operate like standard Gift Accounts, but with a different account fee structure: | On portion of annual donations received (NZD) | Fee charged | | --------------------------------------------- | ----------- | | First $150,000 | 5% | | Next $600,000 (up to $750k) | 3% | | Next $750,000 (up to $1.5m) | 1% | | Remainder over $1,500,000 | 0.5% | A set-up fee also applies in some cases: * $2,500 NZD if your organisation does not already have a Friends Fund with another Myriad member, or * $800 NZD if your organisation has a Friends Fund with up to two other Myriad members.