What is the St John's Church Gordon Foundation Trust?
The St John's Church Gordon Foundation Trust ("the Trust") is a Trust Fund which can accept donations, bequests, gifts, etc of money and property. The money will be invested in accordance with the answer to the question, "How does it work", which follows.
How does it work?
The Trustees of the Trust accept donations, bequests, gifts, etc of money and property. In the case of money, they make decisions on how it is to be invested and they manage those investments and distribute income from them to the Church of St John the Evangelist Gordon ("the Church") from time to time. In the case of property they can either retain it in its original form without selling it or converting it into money, to invest or deal with it in any way they deemd fit and in accordance with the Trust Fund Deed.
Why the need for a separate Trust?
The objective of the Trust is to build up a capital base ("the Trust Fund") over the coming years, which can generate ongoing income for use by the Church. This will ensure that the great work of our predecessors in building the Church and its facilities to those that we enjoy today will be continued and available to those who follow us.
Who are the Trustees and what are their responsibilities?
The three Churchwardens are the Trustees:
Two People's Churchwardens elected at the Annual Vestry Meeting (or at a subsequent Vestry Meeting called to fill a vacancy, if required), and One Rector's Churchwarden appointed by the Rector.
The Trust Deed requires the Trustees to invest the capital of the Trust Fund and to distribute the income from the capital invested to the Church from time to time. The Trustees are permitted by the Trust Deed to take and act upon the advice of any professional adviser regarding investment and management of the Trust Fund.
The Parish Council will be responsible for deciding how this income will be allocated for the benefit of the Church.
How can I make a donation or gift?
Donations or gifts of money or property can be made at the Church Office. Cheques should be payable to "St John's Church Gordon Foundation Trust". The Trustees request that gifts of property be free of all duties etc and advise that it is appropriate for the donor to seek legal advice prior to making a gift of property. Receipts will be issued for all donations or gifts as soon as possible following receipt of the donation or gift.
Can I make a bequest to the Trust in my Will?
Yes. The appropriate form of bequest is:
"I bequeath to the Trustees for the time being of the St John's Church Gordon Foundation Trust, Gordon, New South Wales, the sum of $..... free of all duties for the purpose of the Trust. I declare that the receipt by any one of the Trustees of the Trust shall be full and sufficient discharge to my executors."
If you wish to make a gift of property other than money, the Trustees suggest that you seek legal advice as this may well involve Capital Gains and other taxation issues.
Is my donation, bequest, gift, etc of money and / or property tax deductible?
No. The sole beneficiary of the Trust is the Church of St John the Evangelist, Gordon and as all distributions from the Trust will be to the Church and allocated by the Parish Council for a variety of purposes, current professional tax advice is that donations, bequests, gifts, etc are not deductible for taxation purposes.
Can I specify a purpose for which I would like my donation or gift used?
The Trust Deed gives the power to the Trustees to change any investment for any other investment, to sell or otherwise dispose of the whole or any part of the investments or property of the Trust Fund and to invest money of the Trust Fund in investments authorised by legislation for the investment of trust funds and more specifically within the investment guidelines included in the Trust Deed.
Any restriction on the Trustees made by a donor will make the administration of the investments inefficient and will hamper the objectives of the Trust.
For these reasons the Trustees are not able to accept donations, bequests, gifts, etc made by donors for a specified purpose.
Can the capital of the Trust be distributed?
The capital of the Trust can only be distributed to the Church if a proposal by the Trustees is passed by 75% of eligible voters at an Annual Vestry Meeting or a subsequent Vestry Meeting.
Can I lend money to the Trust interest free or bearing interest?
No. Current legislation does not allow this without complying with certain requirements.
Can I read the Trust Deed?
Yes. The Trust Deed is available for anyone to read at the Parish Office during the hours of 10.00am to 3.00pm, Monday to Friday. A copy can be made available on request for you to take away to read or show to your solicitor or adviser.
What about my Power of Attorney?
A general power of attorney would usually allow your Attorney to make gifts as your Attorney sees fit. However, if your power of attorney is restricted and you wish to make it clear that your Attorney may make gifts to the Trust, the appropriate wording in your Power of Attorney would be:
"I grant to my Attorney the power to make gifts to the Trustees for the time being of the St John's Church Gordon Foundation Trust, Gordon, New South Wales, for the purpose of the Trust. The receipt of any one of the Trustees of the Trust shall be full and sufficient discharge to my Attorney."
What if I wish to set up a trust to allow my appointed trustee to make gifts to the Trust specifically?
The appropriate wording in your trust deed would be:
"The Trustee(s) may make gifts to the Trustees for the time being of the St John's Church Gordon Foundation Trust, Gordon, New South Wales, for the purpose of the Trust. The receipt of any one of the Trustees of the Trust shall be full and sufficient discharge to the Trustee(s)."
If a trust is already in existence and the Deed needs to be amended, different considerations apply (for example, stamp duty) and you are advised to seek legal advice in this circumstance.
What if I have any questions?
Please ring the Church Office and leave your name and telephone number. One of the Trustees will ring you back as soon as possible.
