Local charity foundation Stand Like Stone will benefit from Federal Government reforms that will give the organisation greater ability to raise and distribute funding.
Last week’s Federal Budget announced that up to 28 community foundations, including Stand Like Stone, would receive a specific listing as Deductible Gift Recipients from July 1, 2022 to June 30, 2027.
This reform will streamline how community foundations fund local charitable groups and initiatives in their communities.
Until now DGR rules have meant that community foundations can only receive tax deductible donations if they set up a ‘Public Ancillary Fund’, known as an ‘Item 2 DGR’.
This restricts how they distribute funding, which can only be granted to charities that are ‘Item 1 DGR’ endorsed.
The reforms will also allow Private Ancillary Funds (PAFs – private foundations set up by individuals, families or businesses) to distribute funds to community foundations – up until now community foundations have been cut off from this growing flow of private philanthropy.
It enables Stand Like Stone to accept donations from PAFs and other ancillary funds.
Until now they were not able to provide support to any other type of ancillary fund, including community foundations that operate as Public Ancillary Funds.
Stand Like Stone CEO Roger Babolka said the reforms were a massive win for the community.
“The Stand Like Stone Board and staff are excited about this great news,” he said.
“Obtaining DGR 1 status has been something the foundation has been working towards almost since the inception of the foundation back in 2004 and the perceived benefits to the foundation and subsequent flow on effect to the broader Limestone Coast community is undoubted.
“Tony Pasin has been absolutely instrumental in making these reforms happen.
“We are extremely grateful for his advocacy and commitment on this issue.”
Stand Like Stone Chair Robert Mock also welcomed the news.
“The foundation has set a significant goal of being able to grow its corpus to a level that will enable annual grants and scholarships of $750,000 per annum to be distributed across the Limestone Coast, and achieving the DGR 1 status will certainly provide the catalyst for this to become a reality,” he said.
Member for Barker Tony Pasin said he had been championing changes to the Deductable Gift Recipient rules amongst government ministers in Canberra and has welcomed the reforms.
“I have been fighting for these changes for some time and I’m thrilled to be able to see this through,” he said.
“The benefits of these reforms will be seen throughout the Limestone Coast via the amazing work that Stand Like Stone does for our community.”