Recently. the Foundation has become aware that some grant recipients have been treating the grant they receive from The Ian Potter Foundation as a receipt that triggers the payment of GST. If that is the case for your organisation, then we are concerned that 1/11th of the grant received by your organisation has been paid to the ATO in error.
The Foundation would like to alert both current grantees and prospective grantees to the Frequently Asked Question on the matter of GST recently updated on this website.
Obviously, not-for-organisations should seek their own tax advice, but the GST Act is explicit on this point. The making of a gift to a non-profit body is not the provision of consideration.
The Ian Potter Foundation regards ALL grant payments as gifts. That being the case, it follows that any grant payment received from The Ian Potter Foundation will not constitute consideration for a taxable supply and GST should not be applicable. If your organisation has a contrary opinion to the above, we require you to advise us.
Chief Executive Officer, The Ian Potter Foundation