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SPONSORSHIPPilchConnect has information you need to consider in relation to sponsorship (relevant links at theend of this chapter).GIFTS, WILLS, BEQUESTS AND ENDOWMENTSPilchConnect has useful information and links to other information and websites, to help youunderstand the legal issues about gifts, wills, bequests and endowments. The information is takendirectly from their website, as it is simple and easy to understand.Sometimes people will make a gift to your organisation, or leave a bequest or endowment justbecause they like your organisation’s work or have a connection with your organisation.Alternatively, rather than leaving it to chance, some organisations actively ask for people to makegifts to their organisation, or leave money to the organisation in their will.If your organisation is asking for bequests or endowments, it is useful to provide standard wordingto potential donors so that your community organisation can be assured that any bequests orendowments left by the donor will be legitimate in law. It may also be useful for your organisationto provide the wording for the bequest or endowment so that it can direct the way that funds can beused (that is, avoid difficult or impractical conditions).UNDERSTANDING THE DIFFERENT TYPES OF MONEY OR PROPERTY GIVEN TO THEORGANISATIONThe table below provides a description of the difference between the types of money or propertygiven to a community organisation.Legal termGiftWillWhat does it mean?A sum of money or an asset (property or goods) voluntarily transferred to yourcommunity organisation by someone that is to the advantage of your communityorganisation. The person giving you the money or an asset does not receive anythingin return.A document in which someone specifies how to deal with or allocate their assets aftertheir death. Wills can contain bequests or endowments to your communityorganisation.Bequest A sum of money or an asset that is given to your community organisation upon theowner's death as specified in the owner's will. The bequest can be given 'freely',which means that your organisation may choose to deal with it as it sees fit, or it canbe given with conditions, which must be honoured.Endowment An endowment is normally a fund (amount of money), which is established to providean income for 'beneficiaries' - your community organisation can be the sole or one ofseveral beneficiaries. The fund is usually invested in ‘perpetuity’, which means thereis no time limit for its end. Only the income is distributed, not the original capitalamount. So, the endowment fund will be set up with a sum of money, and thismoney is then invested by the trustees (managers) of the fund, and a ‘dividend’ or adistribution is paid to those beneficiaries under the terms of the fund.Source: www.pilch.org.auPage 65 of 99Brimbank Community Governance Handbook