2018-06-12 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                                        12 JUNE 2018


The Foundation is a registered charity with the Australian Charities and Not-for-profits
Commission and is endorsed by the Australian Tax Office for tax concessions including GST,
income tax and fringe benefit tax rebate.

The Trust and its public fund were entered onto the Commonwealth Register of Environmental
Organisations as of 27 April 2016 which was necessary to achieve Deductible Gift Recipient
(DGR) status. DGR status provides a tax deduction for donors who donate to registered
charitable organisations.

It was considered by the Council that a model independent from the direct control of Council and
with DGR status would be able to better attract funding partners such as educational
establishments, philanthropic organisations and individuals to contribute to relevant projects. It
could also attract direct donations.

As part of the establishment of the Trust and Foundation in 2015, Council agreed to provide
funding support to the Foundation over a three (3) year period from 1 July 2015 with the Funding
Deed specifying that Council would consider future funding arrangements at the end of the initial
3-year term. The original Funding Deed expires on 30 June 2018.

The intent was that the Foundation should, in time, become less reliant on Council funding by
attracting tax deductible donations in addition to attracting funding contributors for projects.
However, fund raising in the not for profit sector is notoriously difficult even with tax deductibility
and the Foundation has not been able to undertake a high level of focus on this aspect due to a
range of factors including the significant task of establishing a new organisation (organisational
structure, policies, strategies etc). Their main priorities have been to establish a grants program,
have oversight of the many worthwhile projects that they have been able to foster, and to assist
in the drafting of the periodic review report to UNESCO.

1.    Funding Deed 2015-2018
The current Funding Deed provides specific funding for operational expenses and project funding
during year 1 of the deed with funding over the remaining years subject to negotiation. Each year
the Foundation has submitted a budget request for consideration as part of Council’s annual
budget deliberations.

A summary of the budget provision and total payments made to the Foundation over the 3-year
term of the deed is provided below together with explanatory notes. The contribution for
operational expenses and a one-off grant for economic purposes (in 2015/16) have been funded
from general rates and grant program funds have been funded through the Environment Levy.

FY          Original Budget    Actuals paid to    Actuals paid to         Additional     Total paid to
                  Allocation            NBRF               NBRF      funding paid to            NBRF
                           $    (Operational)    (Grant Program)    NBRF (multi-year                 $
                                             $                  $          projects)
                                                                                   $

2014/15             40,000            40,000                  0                   0           40,000
2015/16            470,000           140,000            330,000             360,000          830,000
2016/17            390,000            70,000            250,000                   0          320,000
2017/18            390,000           140,000            250,000                   0          390,000
Totals:                              390,000            830,000             360,000       $1,580,000

Notes:
1. Amounts exclude GST where applicable. Where funds are contributed for a specific purpose the
   payments attract GST whereas any untied contribution towards the grants program is GST exempt.
2. The 2014/15 funding was an initial payment for start-up operational expenses. In practice, although
   budgeted in 2014/15 this was carried over and paid in July 2015 as Doonella House was not ready for
   occupation.

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