1. Include the clients contact details [section 1].

2. Name of Endowment Fund [section 2].
Funds over $50,000 become a Named Fund, with associated privileges, namely:

• Can choose which charities receive their annual distributions from their named fund.
• Annual reporting to fund holder/executor.

Funds under $50,000 go into the general Foundation Fund where the annual distributions will be for any charitable purpose [or purposes] within the Ashburton District at the discretion of the Trustees of the Foundation.

3. Intended Beneficiaries [section 3].

• These beneficiaries must operate for a charitable purpose as recognised by the Charities Commission and the Inland Revenue Department.
• If your client wishes their distributions to be used in the local region this must be specified.
• Your client may wish to specify up to three charities, eg. 25% to ABC school, 25% to XYZ charity and 50% to be distributed to any charitable purpose [or purposes] within the Ashburton District at the discretion of the Trustees of the Foundation.
• If your client wishes all of their annual distribution to be at the Trustees discretion [which approximately half of the Foundation’s donors are doing] then write 100% in section 3ii.

 4. Provision must be made in your clients Will, or if the bulk of their assets on death will be in a Trust, your clients will need to give instructions to the Trustees of the Trust. A suitable will clause and a suggested form of Guidance for Trustees [also called a Memorandum or Letter of Wishes] are available for download as a word document on the Foundation’s website, under Guide For Lawyers.

5. Establishment Donations [section 5h]. We encourage donors setting up their fund to make this one-off establishment donation of $5000 which goes towards the operating expenses of the Foundation, allowing us to administer their fund, in the first instance, continue to build the profile of the Foundation and encourage other potential donors to set up a fund. In other words, these establishment donations allow us to continue the daily work of the Foundation. This donation may qualify for the 33.3% tax rebate.

6. Once this form has been completed and signed by your client please post to the Advance Ashburton Community Foundation, PO Box 310, Ashburton so we can update our records. The Foundation will then make personal contact with your client, to acknowledge their generosity.

 7. Thank you very much for you assistance. Please contact us if you require any further information or clarification on any point.

Download Application Form for Establishment of a Named Endowment Fund Here