Investing patriotic funds
Trustees may invest funds that are not immediately required for the purpose for which the money was raised. The Trustee Act 1958:
- requires trustees to exercise the skill that a ‘prudent person’ would exercise when managing others’ affairs
- allows any form of investment, except those expressly prohibited by the trust deed
- requires trustees to review the performance of the investments at least once every year. Trustees may seek independent advice in relation to investment.
Spending patriotic funds
Assets cannot be paid or transferred out of a patriotic fund other than for:
- the purposes for which the patriotic fund was established
- a purpose incidental to the proper administration of the patriotic fund
- purposes that the Governor in Council has defined under section 41 of the Veterans Act 2005.
The ‘Governor in Council’ is the Governor of Victoria exercising decision-making power with advice from the Victorian Executive Council (at least two and normally four ministers representing the Victorian Government).
Trustees may apply to the Governor in Council to:
- clarify the fund’s purposes
- re-define the purposes, if the amount of money or the rate at which it can be applied is too small to put the fund to best use
- define other purposes, where the assets are more than sufficient to meet existing purposes.
Consumer Affairs Victoria can help with applications to the Governor in Council, which require very specific legal documentation. For assistance, email cav.registration.enquiries@justice.vic.gov.au.