1) What is a Split Charity Account?
GoFundraise offers a product called a "Split Charity Account". This is a GoFundraise account that is made up of more than one beneficiary (2-4 charities) - charity payments are split evenly between these beneficiaries at the time of donation.
The charities come together sharing donations collected from donors, as well as the merchant, transaction and service fees collected by GoFundraise on the transactions. A split charity account ID (joint) is set up on our GoFundraise Website and as a separate financial account for managing invoices and payments. All charities involved must have the same DGR status.
2) How much does it cost to setup?
Due to the complicated setup and ongoing admin for this type of account, there is a one-off setup fee of $1000 + GST.
3) Split Charity Accounts' Joint Payment Summary, Joint Invoices and Individual Remittance Advice
Please note GoFundraise website only generates one original transaction for each donation received into the split charity account ID even though that donation is shared by e.g. 2 charities of 50% each.
As a result, for each fortnightly charity payment, GoFundraise can only issue one joint payment summary of all donations received in the Split Charity Account ID, and also we can only issue one joint invoice for our service fee collected on these donations. The joint payment summary and joint invoice are uploaded to this split Charity Account ID fortnightly.
For auditing and for our taxation purposes, GoFundraise cannot split each donation transaction on the website and in the joint payment summary or joint invoice into proportions, shared by the individual charity.
Each charity should have access to the split charity account ID in order to download the joint payment summary and joint invoices fortnightly. They then claim or pay their own taxation based on their share of that joint invoice and payment summary from GoFundraise.
In respect of remittance advice, GoFundraise reconciles and calculates fortnightly charity payments based on the donations received in the Split Charity Account ID in "Total". However, since each charity has a different bank account and BSB, therefore GoFundraise has to split the final banking into their share of the amount and remitted the funds to the individual charity bank account accordingly.
As a result, GoFundraise issues separate Individual Remittance Advice to individual charity for our banking. The Remittance Advice is uploaded to the individual charity file, but not the split charity joint account ID.
4) Receipts to donors
A donor will receive multiple receipts - one for each of the participating charities.
The amount on each receipt is the portion of the donation that will go towards that charity. All receipts will have the same transaction ID/Payment Reference as it is all one transaction.
E.g. Donor donates $50 to a split charity of A and B. They will receive one receipt for $25 for charity A, one of $25 for charity B.