Making sure it's right.

Distribution of donations and funds  

The Foundation will only grant to organisations that have Deductible Gift Recipients item 1 status. [1] 

Donations and funds distributed or granted through the Foundation are determined [2] by the Board of the trustee of the Foundation after robust governance, due diligence[3] and decision making processes that involve the vetting of applications, interviews with potential grantees, research and consultation including as appropriate with independent qualified persons knowledgeable in the area where the grant will be used.  It is intended that agreed key selection criteria will be used to assist granting decisions, with all decisions appropriately documented. This is to ensure all grants are made strategically and effectively to make impact and for the desired outcome. 

As a further check and balance, where appropriate, depending on the amount granted we intend to follow up as to how the grant was used and its effectiveness in achieving outcomes through regular reports from grantees.  In certain circumstances, to ensure effectiveness, grants may be provided on certain conditions or on a staged basis after the grantee meets agreed milestones or indicators.   

Investment of funds

Donations will be invested to provide income for grant making. The Board of the Trustee of the Foundation oversees the investment and management of such funds based on an established investment strategy. 

Operating costs

Every organisation has operational costs and expenditure and under-investment in operational costs is consistently linked with poor organisational performance and lack of sustainability.

At the Asian Australian Foundation we believe strongly that funds should be effectively managed and distributed based on a low operational cost basis and approach. We intend to raise funds for operational costs mainly through sponsorship of and a small percentage from fund raising events. 

Audited financial accounts

Annual financial accounts of the Foundation are prepared and audited or reviewed by a qualified auditor. In addition the auditor or reviewer must audit compliance with the Public Ancillary Guidelines by the Foundation (which includes investment, valuation and distribution activities).

[1] This is a requirement at law as the Foundation is a public ancillary fund.

[2] This is a requirement at law. However, a donor can express a wish for funds to be directed for distribution in a certain general area or purpose e.g. education or the Arts.

[3] Due diligence on potential grant recipients include assessment of their:

·     structure and tax status - to confirm they are eligible;

·     mission and purpose - to ensure a ‘good fit’ with the Foundation’s objectives;

·     the experience and capacity of key staff and directors - to ensure they are capable of delivering what they say they will deliver, given the grant; and

·     their financial strength including diversity of income– to minimise risk