24Donors

24 Donors

Note: A private ancillary fund is private in nature. This characteristic implies that there is a close relationship between those who establish the fund, those who donate to it and those that operate the fund. This feature of a private ancillary fund can be contrasted with those of a public ancillary fund, which can collect donations from the public and has an independent group of individuals involved in its governance.

(1) The trustee of a *private ancillary fund must not solicit donations from the public.

Penalty: 30 penalty units.

(2) In any *financial year, a *private ancillary fund must not accept donations totalling more than 20 per cent (in total) of the *market value of the fund’s assets (determined at the end of the previous financial year) from entities other than: (a) a founder of the fund; or (b) *associates of the founder; or (c) if the founder has died—an entity who was an associate of the founder immediately prior to the founder’s death; or (d) a *relative of the founder; or (e) employees of the founder; or (f) a deceased estate of an individual covered by (a), (b), (c), (d) or (e).

Penalty: 10 penalty units.

(3) The fund must: (a) issue a receipt for every gift it receives; and (b) include on the receipt the name and *ABN of the fund, the name of the donor and a statement that the receipt is for a gift received by the fund.