What is a Community Foundation?

Community Foundations are established by the community for the community. They are independent of government. They are community-run and community focused and provide a sustainable approach to addressing the issues that the community considers important.

Community Foundations are one of the fastest growing and most effective forms of philanthropy in Australia. Community foundations are independent charitable organisations that pool donations from many local donors to build a permanent endowment. They create a growing fund whose investment earnings are distributed as grants, year after year.

Governed by locally-connected volunteer boards and open to donors of all means, they function like a community superannuation fund: the principal grows while the earnings support local charities and initiatives.

Almost 100 community foundations operate across Australia, collectively holding over $452 million in funds under management. Eighty per cent are based in regional areas.

Many are springing up in response to challenges and opportunities in small regional communities, as a way to harness resources and ensure they are locally owned and distributed according to local need.

Recently, the Federal Government has implemented major changes that mean private ancillary funds (PAFs), operated by generous donors, can now give to community foundations too, while retaining their tax advantages.

“These changes represent a genuine turning point for community philanthropy in Australia. Donors who want their giving to have a lasting impact in their community, now have a clearer, more connected pathway than ever before.”

Donors who give to the Upper Lachlan Foundation, either through a direct gift, bequest, giving circle, or private ancillary fund can be confident their contribution will remain in the community permanently, growing and giving for generations to come.

How does the Community see the benefit of the Foundation?

As the Foundation’s funds grow, then there is an opportunity for funds to be allocated across the Community through a grant application process. The funding application process will be made available across the entire Upper Lachlan Community.

How can I support my Community through The Upper Lachlan Foundation?

You cansupport the community via The Upper Lachlan Foundation in two main ways

1. Become a member and support the ongoing running of the foundation. Financial membership also gives you the opportunity to stand for board elections.

2. Make a donation to the foundation through either the “General Fund” or by establishing a “Named Fund”. For further details click here.

Is The Upper Lachlan Foundation an Incorporated Body?

Yes – The Foundation is incorporated. This process gives the Foundation security from a legal and insurance perspective and assists with future grant applications, in the process of applying for grant funding. Incorporation also provides protection when funds are allocated out of the Foundation.

Does the Foundation have a Board?

Yes – the Board consists of 9 directors. For details click here

What is the relationship between the Upper Lachlan Foundation and the Crookwell Community Trust?

Both the Foundation and the Trust are focused on supporting the local community in different ways. The Foundation and the Trust remain as two separate entities, however at any time the Trust may in invest with the Public Trustee for the ACT through the Foundation.

What is the catchment area for the Upper Lachlan Foundation?

The Upper Lachlan Shire, and at the discretion of the committee, the close surrounding areas.

Understanding DGR status and Community Charities for Donors…

The ULF is in the process of obtaining ACNC status which will make us a DGR 1 entity. However, as of June 2026 we remain an incorporated not for profit organisation but managing multiple named funds with DGR status including; Upper Lachlan Foundation Gift Fund, Crookwell Community Trust, and the Michael and Wendy Coley Fund.

What is the new Community Charity category?

The Australian Government has created a new type of charity for DGR purposes called a Community Charity. This is a formal legal status for community foundations that support a wide range of causes, combining in one entity DGR 1 and DGR 2 status. The new status removes many potential barriers for giving to Community Charities from private foundations or other public foundations.

The new category came into effect in June 2024, and final guidelines were registered in early 2025. This was a major win for community foundations, who advocated for the change over almost two decades.

What does the DGR status mean, and why does it matter to me as a donor?

DGR stands for Deductible Gift Recipient. When a charity holds DGR status, it means the Australian Taxation Office has recognised it as eligible to receive tax-deductible donations. In practical terms, a donation to a DGR-endorsed charity may reduce your taxable income, so donating costs you less out of pocket.

What are “giving funds” and have they changed too?

Giving funds are what the government is renaming Private (PAF) and Public (PuAF) Ancillary Funds. Private Ancillary Funds are the vehicles many families and businesses use for structured private giving. The name change reflects their purpose more clearly. The minimum annual distribution rate for existing Ancilliary Funds will increase from 4% to 6% over the next three years to ensure money flows through to meet real need.

Can I give to a Community Charity through my private giving fund (previously an ancillary fund/PAF)?

Yes. One of the most significant benefits of this reform is that Community Charities (including Hands Across Canberra) can now receive grants directly from PAFs. This was often a barrier in the past depending on your tax arrangements, so the reforms will smooth the way for foundations, donors and your financial advisors.

How does a charity become a Community Charity? Who can do this?

The charity must first submit a proposal to be named in an official Ministerial Declaration. It must then be registered with the Australian Charities and Not-for-profits Commission (ACNC). Finally, it applies to the ATO for formal DGR endorsement. Being named in the Ministerial Declaration is essential and no organisation can become a Community Charity without this declaration.

How many Community Charities are there now?

As of early 2026, 34 new organisations were added to the category bringing the total to 38 recognised Community Charities across Australia, with more to come.