Types of non-profit organisations - Tax basics for non-profit organisations

Income tax exempt fund

An income tax exempt fund (ITEF) is a non-charitable fund that is endorsed by the Tax Office to access income tax exemption.

Endorsement as an ITEF is an approval process to access income tax exemption. It applies to non-charitable funds established under a will or instrument of trust solely for:

• the purpose of providing money, property or benefits to income tax exempt deductible gift recipients (DGRs), or
• the establishment of DGRs.

The beneficiaries of ITEFs can include DGRs that are charities and DGRs that are not charities.

If a fund can be applied for purposes that are not charitable, it is not a charitable fund.

For more information refer to The endorsement process for income tax exempt funds. To obtain this publication, see More information.

Last Modified: Wednesday, 6 June 2007