HOW

TO MAKE TAX-DEDUCTIBLE GRANTS

To make a tax-deductible gift, certain legal requirements apply to individuals, corporate donors and foundations that are Prescribed Private Funds (PPFs).

According to the ATO guidelines, tax-deductible gifts can only be given to deductible gift recipients (DGRs). DGRs are either listed by name in the Income Tax Assessment Act 1997 or fall within general defined categories endorsed by the Tax Office.

There are various ways to make tax-deductible grants to documentaries.

This section provides a practical guide for donors wanting to support documentary films.

(i) THE DOCUMENTARY AUSTRALIA FOUNDATION

The Documentary Australia Foundation is a philanthropic initiative supporting documentary filmmaking in Australia. The Documentary Australia Foundation’s board assesses projects on behalf of the philanthropic sector determining their eligibility for private funding. The criteria is similar to the qualifying procedure the government requires in order to determine whether a project is a bona fide documentary.

Once certified, eligible projects approved by the Documentary Australia Foundation are listed on the website. The vehicle enables all grantmakers (foundations, individuals and corporations) to make tax-deductible donations to documentaries on the Foundation's Approved List. According to the Documentary Australia Foundation guidelines, grantmakers will be asked five key questions in order to award a grant to the Documentary Australia Foundation. These answers will be the basis for approving the grant to a documentary.

1. What is the proposed level of your grant ($A)
2. Would you prefer to support the general operations of the Documentary Australia Foundation or a particular documentary (or documentaries) on the Documentary Australia Foundation Approved List?
3. Which subject area of documentary would you like to support: Aged, Arts, Disability, Education, Environment, Health and Wellbeing, Human Rights, Indigenous, Refugees, Rural, Social Justice, Sport/Adventure, Welfare, Youth, Other (please specify).
4. Why is this film suitable for philanthropic support?
5. Are you (or key members of your organisation) related to the filmmakers of your preferred documentary? If so, how? Please note, the Documentary Australia Foundation Board will not willingly approve documentary grant proposals to films of related party interests.

Read about the Foundation at www.documentaryaustralia.com.au

Prescribed Private Funds (PPF), individuals and corporate donors can currently give tax-deductible grants to filmmakers in the following ways:

(ii) A CHARITABLE ORGANISATION

A donor can give to a charitable or other not-for-profit organisation endorsed as a Deductible Gift Recipient under the Tax Act. The DGR can then support a documentary about the donor’s interest area.

A documentary filmmaker may have partnered with a registered charity to work on a project that includes or is solely comprised of a documentary component. In this case, the charity and filmmaker together submit a proposal for a documentary suitable for philanthropic support either from a foundation, business or individual. This is a straightforward relationship as many charities already work closely with foundations and individual donors, and have the necessary DGR status for the donor to receive a tax deduction.

Australian foundations, corporations and individual donors should take advantage of the opportunity to encourage relationships between Australian documentary filmmakers and charitable or socially-conscious projects. This can be done by giving to organisations that consider documentary to be a viable part of their outreach potential.

In brief, there are clear reasons why this avenue is attractive for donors.

1. The charity or non-profit has DGR status in order for the donor to receive a tax deduction.
2. Foundations are already working closely with the charity sector, so they speak the same language and understand each other’s goals.
3. The charitable organisation can add credibility to the documentary proposal by partnering in their relationship to the community.
4. The charity can have an ongoing involvement in the outreach of the documentary ensuring its broad reach and impact.

See Guide for Charities for more details on partnerships between documentary filmmakers and charitable organisations.

In brief, there are clear reasons why this avenue is attractive for donors.

(iii) AUSTRALIAN BUSINESS ARTS FOUNDATION (AbaF)

The Australia Business Arts Foundation (AbaF) is a Commonwealth body promoting private sector support for the arts.

AbaF operates the Australia Cultural Fund enabling individuals, businesses and some foundations to make tax deductible donations to AbaF and nominate a preferred artist (including filmmakers) as the recipient. Documentary filmmakers generate donations for their projects through the Australia Cultural Fund and receive grants. In the financial year 2006-07 the Australia Cultural Fund received $1.08 million in donations and made 160 grants to artists and not-for-profit arts organisations. 15 of these grants totalling $105,575 were made in the category 'broadcasting, electronic media and film'. For more information visit AbaF.

(iv) AURORA COMMUNITY TELEVISION

Aurora Community Television broadcasts on Foxtel, Austar and Optus TV’s digital networks on Channel 183. Aurora has an Arts Foundation with DGR status established to help community groups produce programs tax-effectively.
The Aurora Community Television Arts Foundation is a fund listed on the Register of Cultural Organisations under the Tax Act and is eligible to receive fully tax-deductible donations. The foundation facilitates programs highlighting the many facets of the arts in Australia including film, sculpture, dance, painting, drawing, video projects, music and Aboriginal arts.

Funds donated to the Aurora Community Television Arts Foundation can be used to:

• Support and contribute towards the production costs of programs that promote the arts.
• Commission programs that promote the arts.
• Purchase the rights to programs that promote the arts.
• Distribute these programs through the Aurora Community Television Channel.

For further information, visit the site or call (02) 9370 9999.