Assessor Resource

FNSPRT508
Administer a charitable trust

Assessment tool

Version 1.0
Issue Date: May 2024


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.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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 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.

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 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.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

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 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.

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 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.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify type of charitable trust and the trust parameters from the trust instrument 
Identify relevant legislation and regulators in the charitable trust area 
Research and identify the specific rules and tax status that applies to various charitable entities 
Arrange specialist services and other resources to assist with management of complex issues as required 
Create charitable trust file according to legislative and organisational requirements 
Establish and prepare appropriate tools, practices and procedures to manage a charitable trust and to promote the charitable purpose stipulated in the trust instrument 
Review grant applications and respond to all applicants in accordance with organisational requirements 
Distribute trust funding to eligible beneficiaries and grant funding to successful applicants 
Prepare and submit information statements and financial reports as required by relevant regulatory agencies 
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 
Prepare and lodge a trustee tax return where required seeking assistance from specialists as necessary 
Manage the succession of a charitable trust where necessary 

Forms

Assessment Cover Sheet

FNSPRT508 - Administer a charitable trust
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

FNSPRT508 - Administer a charitable trust

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: