Listed below are some key Australian Sports Foundation (ASF) terms which may assist in your understanding of the ASF process.
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 occurs on a six monthly basis.
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; and
- 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
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.
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.
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 upon 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’.
Goods and Services Tax (GST) - A broad based tax of 10% 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 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 written or in 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.
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 program operated by the ASF which aims to enhance the quality of life of all Australians through the development of sport. Registered organisations may collect donations using the ASF’s tax deductible status and to receive consideration for discretionary grants from the ASF.
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.
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