AusSchol Incorporated commenced operations as a scholarship fund in 2007 with an endowment of $400,000.  It is a registered charity.  It established the ASF in 2008 as a “Deductible Gift Recipient” (DGR) – that is, a public gift fund to which donors can make tax-deductible donations under Australian tax laws. 

ASF’s purpose is to develop and promote a  scholarship program in order to assist Australian NFP organizations improve their efficiency and effectiveness.    In accordance with Australian tax laws all tax deductible donations given for ASF-funded NFP scholarships are accounted for separately and are independently audited.

Since its establishment ASF has funded its activities by grants from AusSchol’s founding endowment and private donations to the ASF fund.  It should be noted, however, that ASF is primarily a facilitator – most of the scholarships offered through ASF are donated places (that is, fees are waived) in education, training   and development programs offered by ASF Education Partners, namely universities and private education providers.  In some instances, ASF provides “top-up” funding where the fee waiver is less than 100%.  In 2009, only $13,000  was required for this purpose, all other scholarships – nearly 60 in number were offered through ASF free of cost to ASF and to winning applicants. 

Apart from indirect government support via tax deductible donations, ASF does not receive any government support.

 ASF is also a “near virtual” organization – most of the detailed work involved in arranging scholarships, publicizing those scholarships, assessing applications and monitoring ongoing compliance with scholarship conditions, is carried out by volunteers, and with the assistance of a number of Rotary Clubs throughout Australia.

In-kind and pro bono assistance such as   legal services and advice, provision of office space as needed, and website support and hosting,  has been generously donated by a number of ASF Supporters. 

The ASF business model therefore requires minimal staffing.

ASF’s current projected operating budgets indicate an adequate funding base for the next two years but from 2010 onwards ASF plans to obtain capacity-building donations specifically underwriting ASF’s future operational and organisational capacity, as well as donations directly financing additional scholarships.

Furthermore, the Foundation is investigating a number of avenues for generating income through fee-for-service support of scholarships-related administration from other parties, possible sponsorships, and income from other activities relating to NFP scholarships and other  fundraising activities.

ASF has set itself a target of being one of Australia’s lowest cost NFPs and by the end 0f 2010 expects to be able to cap its operating costs at around 15% of the value of scholarships funded and facilitated. Its fundraising costs to funds raised ratio will be close to zero, making ASF’s business model a rarity among NFPs in Australia.