Making grants

Gift Accounts can make grants, and pay non-grant expenditure for charitable purposes, in line with our policy.

'Gift' and 'grant' are used interchangeably - 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.

Overview

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, in the opinion of the Executive Director, are 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

• Any purpose that (in our opinion) directly or indirectly supports or enables hate speech or hateful activities

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.

• 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 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.