Donations
Funding for research may be provided in different forms, and it is important to distinguish the type of transaction involved. The Australian Rotary Health Research Fund, for example, gives both charitable gifts and research grants to the University and each transaction type needs to be handled differently. A donation is a charitable gift to the University, usually from an individual, business or philanthropic trust. Such donations are not subject to GST and are usually tax deductible in the donor’s Australian income tax return. To qualify as a charitable gift the donation must have all three of the following characteristics:- It results in no material benefit.
- It arises by way of benefaction to the University.
- It is made voluntarily.
Businesses and organisations also provide funding to the University under a research grant or contract. Research grants are usually directed to specific research projects and involve obligations on the part of the University, whereas donations are more likely to be designated broadly to University or general research efforts. Research grants or contracts are subject to GST and are usually deductible as business related expenditure. These are not charitable gifts and are therefore not dealt with by the Advancement Office. Faculties and staff wishing to cultivate outside sources for research grants or contracts should contact the Research Office.