Public Benevolent Institutions

A PBI is a very particular type of Deductible Gift Recipient.

PBI’s are entities established to provide services to people who are societally or economically disadvantaged, people on the margins of society. Such organisations have objectives such as “the relief of poverty, suffering and distress”

To be endorsed as a PBI (by the ATO) you first need to ensure that your Objects clauses clearly define the nature of your welfare oriented activities. You will also have a clause to provide that any surplus remaining in the Gift Fund is distributed to another PBI in the event of the winding up of the entity. This clause is similar in construct to that for the Deductible Gift Recipient.

It is important to remember that your Objects must also reflect what you actually do. It is not sufficient to simply say that your Object is, for example, to relieve poverty, suffering and distress; your activities must similarly follow.

 To gain endorsement you write to the ATO, providing a copy of the Constitution, and explaining what you do.

See also Fringe Benefits Tax
See also Salary Sacrifice