Scholarship funds

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Scholarship funds
CPNS SCHOLARSHIP FUND SEMINAR
PROFESSIONAL
JULY 2006
SEGMENT
AUDIENCE
DATE
Presented byBernie MacKinnon Technical
Adviser Non-Profit Centre
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Contents

• New deductible gift recipient (DGR) category
  scholarship funds
• Eligible scholarships, bursaries and prizes
• How to apply for DGR endorsement
• How to keep up-to-date

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Background

• Gift deductibility
• Educational DGRs
• tertiary education
• other
• New DGR amendment

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Scholarship fund

• Requirements
• fund
• public fund
• established for charitable purposes
• solely for providing money for eligible
  scholarships, bursaries or prizes.

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Funds purpose and operation

• Sole purpose and operation
• incidental activities
• Modes
• scholarship provider
• money to scholarship provider

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Eligible scholarships, bursaries and prizes

• Requirements
• scholarship, bursary or prize
• Australian citizens and permanent residents
• open throughout state, territory or region
• approved courses
• merit or reasons of equity.

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Australian recipients only

• Eligible scholarship, bursary or prize
• only awarded to
• Australian citizens
• permanent residents of Australia.

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Open throughout a state, territory or region

• Eligible scholarship, bursary or prize
• open throughout at least
• a state
• a territory
• a region of at least 200,000 people.

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Approved courses only

• Eligible scholarship, bursary or prize
• promoting recipients education
• pre-school, primary, secondary and tertiary
  courses
• defined in GST legislation
• approved by Australian educational authorities
• education at an overseas educational institution
• by way of study of a component of the Australian
  course.

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Merit or reasons of equity

• Eligible scholarship, bursary or prize
• is awarded on merit, or
• is awarded for reasons of equity.

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Checklist

• Fund
• Public fund
• Established for charitable purposes
• Solely for providing money for
• eligible scholarships, bursaries or prizes

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Applying for endorsement

• DGR requirements
• ABN
• apply for DGR endorsement
• in Australia
• Tax concession charity (TCC) endorsement

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Getting DGR mail pack

• ABN
• phone [phone]
• no ABN
• apply for ABN
• select DGR question

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Keeping up-to-date

• Non-Profit News Service
• www.ato.gov.au
• Phone [phone]

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http//www.ato.gov.au
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http//www.ato.gov.au/nonprofit
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Our commitment to you

• We are committed to providing you with advice and
  information you can rely on.
• We make every effort to ensure that our advice
  and information is correct. If you follow this
  advice and information and it turns out to be
  incorrect, or it is misleading and you make a
  mistake as a result, we must still apply the law
  correctly. If that means you owe us money, we
  must ask you to pay it. However, we will not
  charge you a penalty or interest if you acted
  reasonably and in good faith.
• If you make an honest mistake when you try to
  follow our advice and you owe us money as a
  result, we will not charge you a penalty.
  However, we will ask you to pay the money, and we
  may also charge you interest.
• If correcting the mistake means we owe you money,
  we will pay it to you. We will also pay you any
  interest you are entitled to.
• You are protected under GST law if you have acted
  on any GST information in this presentation. If
  you have relied on GST advice in this
  presentation and that advice has later changed,
  you will not have to pay any extra GST for the
  period up to the date of the change. Similarly,
  you will not have to pay any penalties or
  interest.
• If you feel this information does not fully cover
  your circumstances, please seek help from the Tax
  Office or a professional adviser.
• The information in this presentation is current
  at July 2006. We regularly revise our information
  to take account of any changes to the law, so
  make sure that you have the latest information.
  If you are unsure, you can contact us.