Application
This unit describes the skills and knowledge required to establish and administer a charitable trust and to manage and monitor the charitable trust's assets.
It applies to individuals who are proficient administrators in the personal trustee sector and have highly developed communication and financial management skills.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Create charitable trust file | 1.1 Identify type of charitable trust and the trust parameters from the trust instrument 1.2 Identify relevant legislation and regulators in the charitable trust area 1.3 Research and identify the specific rules and tax status that applies to various charitable entities 1.4 Arrange specialist services and other resources to assist with management of complex issues as required 1.5 Create charitable trust file according to legislative and organisational requirements |
2. Establish and administer charitable trust | 2.1 Establish and prepare appropriate tools, practices and procedures to manage a charitable trust and to promote the charitable purpose stipulated in the trust instrument 2.2 Review grant applications and respond to all applicants in accordance with organisational requirements 2.3 Distribute trust funding to eligible beneficiaries and grant funding to successful applicants 2.4 Prepare and submit information statements and financial reports as required by relevant regulatory agencies |
3. Provide for ongoing management and administration of charitable trust | 3.1 Invest charitable trust assets in accordance with the trust instrument and the trustee's legal investment obligations 3.2 Review the performance of the charitable trust's assets periodically to ensure suitability from a legal, taxation and long-term perspective 3.3 Prepare and lodge a trustee tax return where required seeking assistance from specialists as necessary 3.4 Manage the succession of a charitable trust where necessary |
Evidence of Performance
Evidence of the ability to:
establish and administer a charitable trust that complies with legislative and organisational requirements
prepare and interpret complex financial statements
monitor and assess the appropriateness of the trust's assets in meeting grant requirements
create an annual information statement (AIS) for the Australian Charities and Not-for-profits Commission (ACNC).
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe the key requirements of legislation and regulators that govern charitable trusts including:
definition of charity under the Charities Act
Australian Charities and Not-for-profits Commission Act
Charities Act
Tax Administration Act
Income Tax Assessment Act
describe the regulators that govern charitable trusts including:
Australian Taxation Office
state and territory Attorneys-General
describe own role, responsibilities and limitations in relation to providing financial advice
outline the general features and key regulatory requirements of:
charitable funds and charitable institutions
deductable gift recipients (DGRs)
charitable will trusts and inter vivos trusts
private ancillary funds
public ancillary funds
charitable tax status
grant making programs
cy pres applications
describe organisational policies and procedures regarding the establishment, administration and review of charitable trusts including the grant consideration
outline the professional code of conduct, where applicable, in the personal trustee sector
identify the role of, and how and when to contact, internal or external specialists relating to the personal trustee sector
outline the products and services offered by personal trustee organisations and the fees and charges that apply
discuss the liabilities and penalties for non-compliance by trustees.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the personal trustee field of work and include access to:
common office equipment, technology, software and consumables
appropriate legislation and regulations relevant to establishing and administering a charitable trust
organisational reference materials such as policies, procedures, manuals and checklists.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.3, 2.2, 3.2 | Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements |
Writing | 1.5, 2.2, 2.4, 3.3 | Accurately records information and prepares correspondence and documentation using clear language and organisational formats and protocols |
Oral Communication | 1.4, 2.2, 3.3 | Determines and confirms client requirements using active listening and questioning, and reading of verbal and non-verbal signals to convey and clarify information Uses clear language, concepts, tone and pace appropriate for the audience and purpose |
Numeracy | 1.1, 1.3, 2.1, 2.3, 2.4, 3.1-3.3 | Uses highly developed numeracy skills to interpret complex financial information and performs difficult calculations to manage assets appropriately |
Navigate the world of work | 1.1-1.5, 2.1, 2.4, 3.1-3.3 | Takes personal responsibility for following explicit and implicit policies, procedures and legislative requirements Identifies and acts on issues that contravene relevant policies, procedures and legal requirements Monitors and reviews the organisation's policies and procedures and adherence to legislative and regulatory requirements and ethical principles |
Interact with others | 1.4, 2.2, 3.3 | Uses a range of strategies to establish a sense of connection and build rapport with clients and co-workers Identifies and explores differences in a diverse range of people in the work context and makes adjustments to communication in recognition of these differences Recognises behaviours and triggers that contribute to conflict and implements strategies to mitigate conflict |
Get the work done | 1.5, 2.2, 2.3, 2.4, 3.1-3.4 | Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Makes routine decisions and implements standard procedures for routine tasks using formal decision-making processes for more complex and non-routine situations Uses digital systems and technologies to enter, store or access information |
Sectors
Personal trustee