GoFundMe, Raisely, My Cause and Give Now are just some of the fundraising platforms that charities are using to raise campaign funds. For a charity, it’s a no brainer. Fundraising campaigns are easy to set up, the fundraising platform is secure and integrates with some customer relationship management software, there’s often no set up fees for the charity and they receive a statement listing donations. This is particularly good for small individual donations, but can a private ancillary fund (PAF) give through these platforms?

In short, it depends. Firstly, of course, the charity must be a DGR Item 1 as for any grants from PAFs. Some platforms will only take a credit card which is not permissible for a PAF, others require the Foundation’s account details to initiate a direct debit transaction or require a minimum grant and up-front-approval before they will provide the charity’s direct debit details. Many platforms also charge the donor a processing fee which reduces the amount the charity ends up with and the fee does not count towards the minimum 5% gifting requirement for the PAF.

Before supporting a charity through a fundraising platform, we encourage clients to check with their APS Adviser. We can advise whether the PAF can use a particular platform and if they accept a debit card. In most cases, we can provide the Electronic Funds Transfer (EFT) details to make a bank transfer and coordinate with the charity provider to include an ‘offline donation’ on the fundraising page. The charity receives a donation, there’s no non-deductible fees and a personalised message can still be published on the relevant fundraising page.

For example, a PAF wants to support a charity through a fundraising platform. As the platform only accepts credit cards and PayPal, the PAF is unable to donate through the fundraising page. Here’s how the gift can be made:

1. The PAF contacts their APS Adviser to let them know that they would like to support a charity through a fundraising page.

2. APS checks that the charity has DGR Item 1 and is registered with the Australian Charities and Not-for-profit Commission.

3. APS then contacts the charity directly for their EFT details and provides those details to the PAF.

4. The PAF makes their grant via EFT and sends the charity an email advising them of the amount, the fundraising page they would like to support and the message of support to publish.

5. The charity contacts the fundraising platform to include an offline donation. They also provide the platform with the PAF’s details to publish on the fundraising page including the amount, PAF name and message of support.