Australian Sports Foundation
Sport Incentive Program
Guidelines

 A unique tax advantage for sports fundraising

 
Australian Sports Foundation Ltd

The Australian Sports Foundation Limited (ASF) was established in 1986 to assist Australians by generating funds for the development of sport from the corporate sector and the community at large. The ASF is a public company and is governed by the Australian Sports Commission Act 1989. It is listed in the Income Tax Assessment Act 1997 (Division 30, Section 30.90), which enables the ASF to offer tax deductions for donations of $2 or more.

The ASF continues to build awareness in the sports sector of the importance of partnerships involving sport, business and the broader community. To reinforce this, the work of the ASF has been named the Sport Incentive Program. Through contact with sporting clubs, associations, national bodies and schools, and through establishing links with local government and community bodies, it has worked to promote understanding of the benefits of its tax deductible services and to develop a ‘self-determinant’ culture within organisations.

Contact the Australian Sports Foundation Ltd at:
PO Box 176
BELCONNEN ACT 2616

Tel: (02) 6214 7868
Fax: (02) 6214 7865
Email: info@asf.org.au
Web: asf.org.au

ABN 27 008 613 858

© Australian Sports Foundation 2009

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Sports Foundation. Requests and enquiries concerning reproduction should be addressed to copyright@ausport.gov.au

Unless otherwise specified, all images are the property of the Australian Sports Commission.
Produced by Australian Sports Foundation
Printed by New Millenium Print

 
Contents

1 The Australian Sports Foundation

2 Sport Incentive Program

2.1 Objectives
2.2 Project categories
2.3 What organisations are eligible to register projects?
2.4 What types of projects can be registered?
2.5 Which applications will not be considered for registration?

3 Category 1 projects

3.1 Project approval and registration process

3.1.1 Applications
3.1.2 Approval
3.1.3 Registration
3.1.4 Dispute resolution

3.2 Fundraising

3.2.1 Promotional material
3.2.2 Donations
3.2.3 Donors
3.2.4 Donor recognition
3.2.5 Australian Sports Foundation charges

3.3 Discretionary grants

3.3.1 What are the limits?
3.3.2 Criteria for approval
3.3.3 Conditions of payment

3.4 Discretionary grant acquittal

3.4.1 Responsibilities of grant recipients
3.4.2 What can Australian Sports Foundation grants be applied to?
3.4.3 What can’t Australian Sports Foundation grants be applied to?

4 Category 2 projects

4.1 Project approval process

4.1.1 Applications
4.1.2 Approval
4.1.3 Dispute resolution

4.2 Discretionary grants

4.2.1 Conditions of payment

4.3 Discretionary grant acquittal

4.3.1 Responsibilities of grant recipients
4.3.2 What can Australian Sports Foundation grants be applied to?
4.3.3 What can’t Australian Sports Foundation grants be applied to?

5 Other project management matters

5.1 Changes to project organisation details
5.2 Changes to project details
5.3 Project renewal
5.4 Project closure
5.5 Non-compliance
5.6 Privacy
5.7 Winding up

6 Taxation information

7 Application checklist

8 Further information

Glossary

 
1 The Australian Sports Foundation

The Australian Sports Foundation Limited (ASF), ABN 27 008 613 858, was established in 1986 by the Australian Government to assist eligible organisations to fundraise for the development of sport by offering the incentive of tax deductibility for donations.

The ASF is a non-profit public company limited by guarantee, incorporated under the Corporations Act 2001. The ASF has an independent Board of Directors appointed by the Federal Minister for Sport.

The ASF is listed in two Acts of Parliament: the Australian Sports Commission Act 1989 and the Income Tax Assessment Act 1997. The ASF’s listing in the Income Tax Assessment Act (Division 30, Section 30.90) enables donations of $2 or more to the ASF to be tax deductible. Through this listing the ASF is able to offer a unique tax advantage for sport fundraising.

For donations to the ASF to be tax deductible, the ASF and donors are required to comply with the Income Tax Assessment Act and associated taxation rulings and advice.

2 Sport Incentive Program

2.1 Objectives

The ASF operates the Sport Incentive Program which assists the development of sport in Australia.

Specifically, the program aims to increase opportunities for Australians to:
• participate in sport
and/or
• excel in sports performance.

2.2 Project categories

Applicants can register projects in the following categories:

PROJECT CATEGORY	INTENT
Category 1	To collect donations using the ASF's tax deductible status and to receive consideration for discretionary grants from the ASF
Category 2	To receive consideration for a discretionary grant from the  ASF

An organisation can only register under one category at any given time.

2.3 What organisations are eligible to register projects?

An organisation is eligible to register a sport-related project if it:
• is a non-profit or government organisation
• is incorporated in Australia under appropriate legislation
• is financially viable
• has an Australian Business Number (ABN).

Eligible organisations include:
• sporting clubs
• sporting organisations (regional, state and national)
• schools (or an organisation affiliated with an educational institution)
• government organisations
• community groups.

2.4 What types of projects can be registered?

Projects eligible for consideration for ASF registration must:
• be sport related (refer to the Glossary on page 20)
• aim to increase opportunities for Australians to participate in sport and/or to excel in sports performance
• be one of the following types:

– facility development
– facility feasibility study
– equipment
– team travel
– hosting a major sporting event
– sport development

• be financially viable.

Facility development

Projects will only be considered where:
• the organisation has the authority to develop or contribute to the development of the facility
• the proposal is not subject to any legislative or administrative claim
• the organisation has addressed environmental impact issues (if applicable)
• planning approval has been sought from the relevant planning authority.

Examples of projects that will be considered include:
• building new facilities such as tennis courts, football ovals, hockey pitches and sporting complexes
• upgrading, extending or relocating an existing facility, such as installation of lighting, irrigation systems, access for people with disabilities, spectator seating
• building ancillary facilities such as toilet blocks, shade structures, change rooms and pontoons.

The ASF is unable to accept facility development project applications specifically for:
• the development of commercial areas such as bar, catering, retail and gambling
• administration areas
• recreational facilities such as playgrounds and cycle paths.

Facility feasibility study

Projects will only be considered where formal assessments will be undertaken relating to proposals for the development of new or upgraded facilities.
The ASF project scope for a feasibility study is generally limited to $50 000.

Equipment

Projects will only be considered for non-consumable sporting equipment that has a useful life of greater than two years and will be the property of the organisation.

Examples of projects that will be considered include the purchase of rowing craft, goalposts, hurdles, safety equipment, video analysis equipment, sail training and rescue boats.

Team travel

Projects will only be considered where:
• travel is to state or national championships by regional or state representative teams, subject to evidence of team lists and the applicable selection criteria
• travel is to international competition by state or national representative teams, subject to evidence confirming the nature of the event, team lists and the applicable selection criteria
• as a general rule, teams will consist of five or more members and can include medical and coaching staff and a manager. The ASF may exercise discretion in the case of sports where representation involves fewer participants (for example, sailing, gymnastics, boxing, rowing or equestrian)
• organisations agree not to collect donations from relatives or associates of team members, or any person reasonably expected to be a team member
• organisations agree to seek declarations from donors certifying that they are not related to, or associated with, team members or any person reasonably expected to be a team member
• organisations agree to apply grant funds to the combined costs and expenses of the team as a whole.

Team travel programs proposed by clubs, associations and schools will be considered under the ‘Sport development’ project type.

Hosting a major sporting event

Projects will only be considered where organisations have secured the right to host an event of significance to its sport.

Sport development

Sport development projects should incorporate initiatives designed to increase opportunities for Australians to:
• excel in sports performance
• participate in sport
• record sports history.
Projects will only be considered where:
• organisations agree not to collect donations from relatives or associates of participants, or any person reasonably expected to be a participant
• organisations agree to seek declarations from donors certifying that they are not related to, or associated with, participants or any person reasonably expected to be a participant
• selection criteria for participants have been developed.

Initiatives that will be considered as (or part of) a sport development project include:
• courses/clinics/camps/events used to promote sport and increase participation levels and excellence
• programs designed to increase participation, benefit performance and/or provide exposure to a higher level of competition
• development initiatives involving team travel
• sport scholarships
• recording of sport history.

2.5 Which applications will not be considered for registration?

The ASF is unable to accept applications for projects where:
• applications are from commercial entities, unincorporated bodies or individuals
• potential donors may gain a direct benefit, advantage, right or privilege, other than one of an insignificant nature, as a consequence of their donation
• the project relates to operational and administrative expenditure, that is, for salaries, running costs, routine maintenance, repair work, etc.
• the project relates to retrospective expenditure.

3 Category 1 projects

3.1 Project approval and registration process

3.1.1 Applications

Category 1 project applications:
• can be made at any time by lodging a completed Sport Incentive Program application form
• must be accompanied by a $275 application fee (GST inclusive). This fee is refundable when a donation threshold of $5000 is reached in the first 12 months of project registration
• must include all supporting documentation as outlined in the application checklist.

3.1.2 Approval

Category 1 project applications:
• are assessed against both organisational and project eligibility
• are normally assessed within four weeks of receipt (providing all documentation has been received by the ASF).

Category 1 project applicants:
• will be notified in writing as to the outcome of their application
• should note that the application fee is non-refundable where the application is not approved.

3.1.3 Registration

Category 1 projects can be registered for up to five years at a time. Registration will involve:
• ASF preparation of grant agreements
• formal acceptance by the organisation of the ASF’s terms and conditions by signing and returning grant agreements
• ASF execution of grant agreements.

3.1.4 Dispute resolution

Where an application is unsuccessful, the applicant:
• will be provided with written details of the project assessment
• may request to have the determination reviewed by the ASF Board.

3.2 Fundraising

The project organisation may not use the ASF’s logo, promote the project or collect tax deductible donations until the project organisation has been given written advice of the project’s registration.

3.2.1 Promotional material

All donation forms and promotional material referring to the ASF or the tax deductibility of donations, must be approved by the ASF prior to publication and distribution. This includes, but is not limited to:
• letters
• newsletters
• invitations
• brochures
• kits
• posters
• website information
• speech notes
• media releases.

Templates containing standard ASF wording will be provided on project registration. An example of ASF standard wording is:

The Australian Sports Foundation Ltd (ASF) was established by the Australian Government to assist organisations to raise funds for the development of sport in Australia through donations. The ASF’s listing in Division 30, Section 30.90 of the Income Tax Assessment Act 1997 enables donations of $2 or more to the ASF to be tax deductible.
Donors must contribute unconditionally to the ASF to claim a tax deduction, however, the ASF’s structure makes it possible for a donor to nominate a registered project as the preferred beneficiary of their gift. The project organisation [Project name, Project no.] is registered with, and conducted under, the charter of the ASF (ABN 27 008 613 858).
All claims are subject to acceptance by the Commissioner of Taxation. Donors who are uncertain of their position should seek their own professional advice.

Organisations can choose to use the format of the ASF material provided or may wish to submit their own draft material for approval.

Should organisations distribute unauthorised material or promote the project in a misleading or deceptive manner, the ASF may take reasonable corrective action and recover costs of taking such action.

3.2.2 Donations

A donation is an unconditional gift made to the ASF, offered voluntarily and not as a result of contractual obligation, and for which the donor receives no material benefit or expectation of benefit in return.
A donation will not be considered a gift for taxation purposes where the donor:
• receives, insists on or is promised something tangible or of commercial value
• acts on an expectation that a benefit, advantage, right or privilege will be returned to him or her.
Donations:
• deposited into the ASF’s bank account become the pool of funds available for consideration as discretionary grants for registered projects
• are typically cheque, credit card or cash, but may be in the form of property, shares or trading stock that can be easily converted to cash by the ASF
• are not subject to GST.

ASF approved donation forms must be completed and signed by donors for receipting purposes. The ASF will issue a receipt for donations of $2 or more.

Organisations registering sport development or team travel projects must:
• not collect donations from relatives or associates of participants or any person reasonably expected to be a participant
• seek declarations from donors certifying that they are not related to, or associated with, a participant or person reasonably expected to be a participant. Approved ASF donation forms will include appropriate wording to this effect.

3.2.3 Donors

In accordance with taxation law, donors:
• must contribute unconditionally and voluntarily to the ASF
• must not receive or have any expectation of any benefit, advantage, right or privilege (other than one of an insignificant nature) for their donation (apart from tax deductibility)
• may nominate an ASF registered project as their preferred beneficiary
• cannot insist the ASF direct their donation to a specific project or participant
• should be aware that all claims for a tax deduction are subject to acceptance by the Commissioner of Taxation.

Donors who are uncertain of their position are encouraged to obtain professional advice.

3.2.4 Donor recognition

Donors can be recognised in modest ways including letters of thanks, names on bricks, plaques and honour boards, certificates of appreciation, and acknowledgment in annual reports. Such recognition, however, should not be offered as an inducement to potential donors.

Unacceptable forms of recognition include advertising, signage, and company logos on bricks and pavers. Benefits such as reduced membership rates, invitations to fee paying functions at no cost, merchandise and season tickets are also unacceptable forms of recognition.

Proposals for donor recognition must be approved by the ASF prior to implementation.

3.2.5 Australian Sports Foundation charges

Apart from the $275 (GST inclusive) application fee (refer to ‘Applications’ on page 5) there is an administration fee of 2 per cent for all credit card donations, which is charged to the project.

3.3 Discretionary grants

Discretionary grants are made by the ASF’s Board of Directors to project organisations for registered projects. The ASF Board undertakes discretionary grant rounds up to six times per year.

Unconditional donations to the ASF form a pool of funds available to be granted. These funds are reduced by the 2 per cent administrative charge on credit card donations.

Discretionary grants paid to project organisations registered for GST are grossed up by 10 per cent. The remittance of GST to the Australian Taxation Office is the responsibility of the recipient project organisation.

3.3.1 What are the limits?

The minimum value of any single grant is $500. There is no upper limit, subject to registered projects meeting all ASF criteria for grant approval.

3.3.2 Criteria for approval

Discretionary grants may be allocated to registered projects subject to the following criteria:
• donors have indicated the registered project as their preferred beneficiary
• all donations have been accompanied by completed and signed ASF approved donation forms
• the project organisation has a current grant agreement with the ASF
• all documentation requested by the ASF has been provided (for example, grant expenditure reports, financial statements)
• special considerations, if any, listed in the grant agreement have been met (for example, provision of team lists, local authority approvals for facility developments)
• ASF approved promotional and publicity material has been used at all times.

3.3.3 Conditions of payment

Following approval, grants are paid to project organisations for registered projects on the basis of the following conditions:
• a recipient created tax invoice (RCTI) agreement between the ASF and GST registered organisation is in place
• the grant will be applied in accordance with the approved project purpose
• subsequent acquittal by the completion of a grant expenditure report.

3.4 Discretionary grant acquittal

The grant agreement requires that a project organisation appropriately acquit all ASF discretionary grants it has received. The grant acquittal process is undertaken by completing a grant expenditure report.

Grant expenditure reports are distributed to recipients of discretionary grants every six months and are designed to:
• ensure that grants have been applied in accordance with the approved project purpose
• provide an update on the project status.

3.4.1 Responsibilities of grant recipients

On receipt of a grant expenditure report, a project organisation is required to:
• complete all sections and sign the report as being a true and correct record
• include all required supporting documentation
• return the grant expenditure report to the ASF by the due date.

Required supporting documentation includes:
• latest annual report/financial statements
• supplier invoices that relate to expenditure of ASF grants
• current bank statement if grant funds are unspent
• list of team members for team travel
• list of participants in programs and/or recipients of grant funds for sport development projects
• the payment schedule if grant funds are being applied to loan repayments on facility development projects.

Acquittal by the due date ensures the project organisation remains compliant with the terms and conditions of the grant agreement and is eligible for consideration in future discretionary grant rounds.

3.4.2 What can Australian Sports Foundation grants be applied to?

ASF grants can be applied to the following expenditure:
Facility development
• as listed in ‘Facility feasibility study’
• capital works/improvements
• site development/excavation
• fencing, lighting and security
• repayment of facility loans
Facility feasibility study
• consultants’ fees
• drawings/plans
• local authority and other stakeholder approvals
Equipment
• sporting equipment
• sports technology equipment
• sports science/sports medicine equipment
Team travel
• airfares and ground transport
• accommodation
• hire/transport of equipment
• competition entry fees
• team uniforms
Hosting a major sporting event
• hire of venue and equipment
• trophies/medals
• non-sponsor event signage
• first aid and security
• event programs
Sport development
• sport courses, clinics, camps, events:

– contract specialist coaches/presenters
– equipment purchase/hire
– venue hire
– travel and accommodation
– training resources

• sport programs:

– contract specialist coaches/presenters
– equipment purchase/hire
– sports clothing
– venue hire
– access to facilities and services
– travel and accommodation
– training resources

• team travel undertaken as part of an association, club or school development program (refer to ‘Team travel’ above)
• sport scholarships:

– competition-related travel and accommodation
– sport clothing and equipment
– competition entry fees
– training costs
– coaching fees
– sports science/sports medicine services

• sport history:

– facility development and fit out
– equipment
– acquisition, preparation and display of sporting memorabilia
– specialist contractor (such as researchers) fees/commissions
– production costs of books, CDs/DVDs/videos

This list is an indication of the types of expenditure to which ASF grants can be applied, and is not intended to be exhaustive.

3.4.3 What can’t Australian Sports Foundation grants be applied to?

ASF grants cannot be applied to the following expenditure:
• administration
• operational expenditure
• consumables
• salaries and wages
• advertising and promotion
• catering and meals
• repairs and maintenance
• normal living expenses
• personal development and education
• prize money
• contra arrangements for supply of services
• commercial and social areas of a facility development
• recreational programs or recreational facility development.

This is not intended to be an exhaustive list.

ASF grants cannot be applied retrospectively to expenditure incurred:
• prior to project registration
• prior to receipt of a grant by the project organisation.

4 Category 2 projects

4.1 Project approval process

4.1.1 Applications

Category 2 project applications:
• can be made at any time
• must include all supporting documentation as outlined in the application checklist (refer to ‘Application checklist’ on page17).

Organisations considering submitting a category 2 project application are strongly encouraged to contact the ASF prior to submission to discuss project details. Facility development and facility feasibility study projects are excluded from category 2.

4.1.2 Approval

Category 2 project applications:
• are assessed against:

– organisational eligibility
– project eligibility, including the nature and location of the project and the existence of alternative fundraising sources

• are normally assessed within four weeks of receipt (providing all documentation has been received by the ASF)
• can be approved for a period up to 12 months.

Category 2 project applicants will be notified of the outcome of their application. It should be noted that project approval does not guarantee a grant will be made.

4.1.3 Dispute resolution

Where an application is unsuccessful, the applicant may request to have the determination reviewed by the ASF Board.

4.2 Discretionary grants

Discretionary grants are made by the ASF’s Board of Directors to project organisations for approved projects. Project organisations may be eligible to receive one grant in the 12-month project approval period.

Discretionary grants paid to project organisations registered for GST are grossed up by 10 per cent. The remittance of GST to the Australian Taxation Office is the responsibility of the recipient project organisation.

The minimum value of any single grant is $500.

4.2.1 Conditions of payment

Prior to payment, project organisations must agree in writing to fully acquit the ASF grant.

Payment of the grant is subject to the following conditions:
• a recipient created tax invoice (RCTI) agreement between the ASF and GST registered organisation is in place
• agreement that the grant will be applied in accordance with the approved project purpose
• subsequent acquittal by completing a grant expenditure report.

4.3 Discretionary grant acquittal

A project organisation must appropriately acquit the ASF discretionary grant it has received. The grant acquittal process is undertaken by completing a grant expenditure report.

Grant expenditure reports are distributed to recipients within six months of receiving the grant and are designed to:
• ensure that grants have been applied in accordance with the approved project purpose
• provide an update on the project.

4.3.1 Responsibilities of grant recipients

On receipt of a grant expenditure report, a project organisation is required to:
• complete all sections and sign the report as being a true and correct record
• include all required supporting documentation
• return the grant expenditure report to the ASF by the due date.
Required supporting documentation includes:
• latest annual report/financial statements
• supplier invoices that relate to expenditure of the ASF grant
• current bank statement if the grant is unspent.

Acquittal by the due date ensures the project organisation remains compliant with the conditions of the grant approval.

4.3.2 What can Australian Sports Foundation grants be applied to?

ASF grants must be applied in accordance with the project purpose as confirmed in the ASF approval letter.

Section 3.4.2 on page 9 outlines the types of expenditure to which ASF grants can be applied. However, it should be noted that category 2 grants cannot be applied to facility development or facility feasibility study projects.

4.3.3 What can’t Australian Sports Foundation grants be applied to?

Section 3.4.3 on page 11 outlines the types of expenditure to which ASF grants cannot be applied.

5 Other project management matters

5.1 Changes to project organisation details

At the time of project application, organisational information is provided to the ASF. This information is integral to the conduct of the project and the grant agreement between the project organisation and the ASF. It includes:
• contact details
• committee list
• bank account details
• ABN/GST registration
• constitution/memorandum and articles of association
• incorporation details/entity type.

Should changes occur to any of the above, it is essential that the ASF be advised by the project organisation within four weeks of the relevant change.

5.2 Changes to project details

At the time of project application, specific project details are provided to the ASF. This information is the basis of project registration, resulting in the grant agreement between the project organisation and the ASF. Should any specific project details change, the project organisation must contact the ASF.

5.3 Project renewal

A category 1 project is registered for a set term as detailed in the grant agreement. Prior to expiry of this agreement, the project organisation may be given the option of project renewal. Category 2 projects expire at the end of the approved period and are not able to be renewed.

5.4 Project closure

When a category 1 project is not renewed, the project is formally closed as at the grant agreement expiry date. All grant expenditure reports must be completed and no further donations in support of the former ASF project may be collected.

5.5 Non-compliance

By signing the grant agreement, a project organisation agrees to comply with its terms and conditions. Should a project organisation fail to comply, consequences include exclusion from future ASF discretionary grant rounds and termination of the grant agreement. Legal proceedings may be undertaken to recover ASF grants.

5.6 Privacy

Protecting privacy and confidentiality is fundamental to the operation of the ASF, which is committed to upholding the national privacy principles contained in the Privacy Act 1988.

5.7 Winding up

A project organisation must notify the ASF of its intent to wind up. Should winding up occur, any unspent ASF grant funds must be returned to the ASF.

In the event that a project organisation determines not to, or is unable to, proceed with an ASF registered project, it must notify the ASF. Any unspent grant funds must be returned to the ASF. The ASF will consult with the organisation regarding other sport-related projects.

6 Taxation information

Unconditional donations of $2 or more to the ASF are tax deductible, however claims of tax deductions by donors are subject to being accepted by the Commissioner of Taxation. If either an individual or business is uncertain of their position, they should seek their own professional advice.

Project organisations should not offer tax advice to potential donors.

7 Application checklist

Category 1 applicants must include payment of a $275 application fee (GST inclusive).

The documentation required to support an application is dependent on your organisation and project as follows:

 

Organisation type	Constitution/ Memorandum and Articles	Incorporation Certificate	Previous two years audited financial statements/annual reports	Endorsement letter#	List of committee members	Draft promotional material if already developed
Club	√	√	√	√	√	√
Sporting organisation	√	√	√	√~	√	√
School	√*	√*	√	√+	√	√
Council			√		√	√
Government entity	√	√	√	√	√	√
Other^	√	√	√	√	√	√

#Endorsement letters should be obtained from the relevant parent organisation or key stakeholder

~National organisations should contact the ASF to discuss the provision of the endorsement letter

*Where the applicant organisation is either an independent school or incorporated committee of the school

+From the school principal or board (including statement of school's status as non-profit)

^'Other' organisations should contact the ASF for information

 

PROJECT TYPE	SUPPORTING DOCUMENTATION REQUIRED
Facility development	Include any of the following items applicable to your project: • endorsement from land/facility owner • copy of plans • copy of planning approvals • copy of building approvals • copy of funding approvals from other government agencies • feasibility study • environmental impact statement • copy of lease for land on which facility is being built • expenditure budget
Facility feasibility study	• copy of quote from consultant • copy of plans (if available)
Equipment	• expenditure budget • copy of supplier quote (if available)
Team travel	• list of team members and itineraries • expenditure budget
Hosting a major sporting event	• copy of letter of approval to conduct the event • expenditure budget
Sport development	• details on the selection criteria for project beneficiaries • list of project beneficiaries (when project beneficiaries are teams or individuals, list/s are to be supplied on application) • expenditure budget

 

Any other documentation not mentioned above which you feel would enhance your application, including meeting minutes and additional letters of support, may be included.

8 Further information

If you have any queries, please contact the Australian Sports Foundation at:
Postal address: PO Box 176, BELCONNEN ACT 2616
Street address: Leverrier Street, BRUCE ACT 2617
Tel: (02) 6214 7868
Fax: (02) 6214 7865
Email: info@asf.org.au
Website: asf.org.au
This document supersedes all previous versions.
 

Glossary

ABN (Australian Business Number) — A single identifier for dealings with the Australian Taxation Office and other government departments and agencies. An organisation must have an ABN in order to be considered for an ASF discretionary grant.
Acquittal — Reporting on the expenditure of ASF grant funds to demonstrate that funds have been applied in accordance with an organisation’s approved project purpose. The acquittal process applies to all category 1 and category 2 projects on a six monthly basis.
Approved project — A category 2 project that meets ASF criteria and where the applicant organisation has received written advice of project approval.
ASF — Australian Sports Foundation Limited.
Associate of donor — The definition of associate is very broad, but includes relatives, companies in which the donor or associates have control, partners in a partnership and spouses of those partners, beneficiaries with an interest in a trust (or beneficiaries capable of benefiting under a trust), related trusts, and associates of any of the above. More specifically, Division 995 of the Income Tax Assessment Act 1997, defines a ‘relative of a person’ to mean:
• the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of that person or of his or her spouse
• the spouse of that person or of any other person specified in the previous point.
Note: The definition of an Associate is not exhaustive, and is a guide only. Refer to section 78A of the Income Tax Assessment Act 1936 for the complete definition of Associate.
Category 1 project — Sport Incentive Program project category where an organisation wishes to collect donations using the ASF’s tax deductible status and to receive consideration for discretionary grants from the ASF.
Category 2 project — Sport Incentive Program project category where an organisation wishes to receive consideration for a discretionary grant from the ASF.
Deductible gift recipient — A deductible gift recipient is an organisation that can receive income tax deductible gifts. The Australian Sports Foundation is listed as a Deductible Gift Recipient at Division 30, Section 30.90 of the Income Tax Assessment Act 1997.
Discretionary grants — Outcome of a decision made by the ASF Board to determine the level of funds allocated to registered projects at its discretion in line with taxation law.
Donations — An unconditional gift (normally money), offered voluntarily and not as a result of contractual obligation and which receives no material benefit or expectation of benefit in return.
Donor recognition — Showing appreciation for the contribution by donors in modest ways.
Donors — Individuals or entities who make donations.
Financially viable — Being able to pay debts as and when they fall due and payable.
Fundraising — An organised activity or process designed to secure additional funds.
Governance — Accountable practices that confirm an organisation’s compliance with relevant law, financial standards and administration. It refers to the structures and processes used by an organisation to develop its strategic goals and direction, monitor its performance against these goals and ensure that its board acts in the best interest of the members.
Grant agreement (also known as ‘Agreement’) — A formal document that sets out the basis on which the ASF may grant funds to an organisation for the purposes of a registered project, the obligations of an organisation in relation to the handling and expenditure of those funds and also for the conduct of the registered project. It is created on project approval, and is to be signed and witnessed by both the project organisation and the ASF to come into effect.
Grants — See ‘Discretionary grants’.
GST (Goods and services tax) — A broad-based tax of 10 per cent on the supply of most goods and services consumed in Australia.
Incorporation — Establishing a separate legal existence under appropriate Australian legislation.
Material benefit — Receiving an advantage, right or privilege (other than one of an insignificant nature).
Non-profit — Organisations that are not carried on for the profit or gain of its individual members. A non-profit organisation may still make a profit, however any profit made must be used to carry out its purposes or objectives and must not be distributed to owners, members or other private persons. This applies both while the organisation is being carried on and on its winding up.
Pledge — Making a regular contribution/commitment over the life of a project.
Philanthropy — Refers to benevolent acts that are of practical benefit to mankind.
Preferred beneficiary — Indication of the donor’s preference as to which ASF registered project they would like their donation to benefit.
Project — See ‘Approved project’, ‘Registered project’ and ‘Sport related project’.
Project organisation — An organisation that has an approved or registered project with the ASF.
Promotional material — Any material used to promote a registered project that mentions the ASF or the tax deductibility of donations to support the project. Material may be in written or electronic form and may include letters, brochures, donation forms, newsletters, websites, etc.
Recipient created tax invoice (RCTI) — A tax invoice generated by the ASF for the amount of a grant (including GST) once approved by the ASF Board.
Recipient created tax invoice (RCTI) agreement — An agreement between the ASF and a project organisation authorising the ASF to issue a tax invoice with respect to grants on the project organisation’s behalf.
Registered project — A Category 1 project that meets ASF criteria and where the applicant organisation has received an ASF executed grant agreement in respect of the project.
Sponsorship — A contractual agreement where something tangible or of commercial value is received as a result of making a contribution.
Sport — A human activity capable of achieving a result requiring physical exertion and/or physical skill which, by its nature and organisation, is competitive and is generally accepted as being a sport.
Sport Incentive Program — The name of the grant program operated by the ASF which aims to enhance the quality of life of all Australians through the development of sport.
Sport related project — A project which aims to increase the opportunity for Australians to participate in sport or excel in sports performance. To be considered for registration with the ASF, projects must fall into one of the following types: facility development, facility feasibility study, equipment, team travel, hosting a major sporting event and sport development.
Tax deductibility — The capacity to claim a tax deduction for a voluntary donation to the ASF.
Unconditional donation — Any donation that is free from any consideration or condition. A donor or associate must not insist, nor the ASF guarantee, that a donation will necessarily be applied to a particular beneficiary.
Voluntary donation — Any donation to the ASF that has been given freely and without compulsion. To be considered voluntary, the donor must be free to choose the donation amount.

Did you know?

The Australian Sports Foundation was first established in 1986

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