The ethos of philanthropy is embedded in ‘giving back’ to the benefit of broader society and the greater good.

It is a selfless act – one that is often undertaken anonymously – and is typically aligned with the values of the individual, family or organisation. It is also a very personal act. Motivations can include passion for a cause that has touched family members, a sense of obligation, a religious belief, or even a lack of heirs.

Charitable and philanthropic planning is increasingly being incorporated as part of an overall financial strategy, as we all seek to contribute to society.

The impending intergenerational wealth transfer, which is set to be the largest in Australia’s history, will only increase the spotlight on the need for professional and robust philanthropic strategies.

While the motivations are well intentioned, structuring a philanthropic strategy appropriately is critical to it being both effective and enduring.

How we help clients

HLB Mann Judd has developed a specialist service offering to facilitate the increasing interest in philanthropy within the community.

We work closely with our clients in establishing the motivations for their charitable causes before identifying the most appropriate fund structure for doing so.

Importantly, we discuss the tax status of the nominated structure, and whether it is eligible for DGR status. The amount of funds to be invested, together with any legacy aspirations, are key in determining the right structure and its future success.

Our professional guidance will ensure philanthropic structures are established correctly within the legal framework, and that investments are well-managed, tax advantages are maximised, and grants are directed effectively.

More about PAFs

There are a number of ways to approach charitable giving, with tax-advantageous public or private ancillary fund (PAFs) trust structures the most commonly used for strategic longer-term philanthropy.

Public ancillary funds are communal philanthropic structures established for the purpose of making distributions to deductible gift recipients (DGRs). They are quick and simple to establish and offer tax deductions to donors. These funds are required to have a formal investment strategy, and to distribute a set minimum percentage of the fund’s net assets annually.

Private ancillary funds were introduced by the Federal Government to encourage personal, family and corporate philanthropy. Contributions to PAF’s are also tax-deductible, but they differ from public ancillary funds in that they are unable to receive contributions from the public. They are often established as family foundations, and offer a high level of control to those wishing to direct their gifts for specific charitable purposes.

Our team has a genuine passion and personal involvement in this area, enhanced by qualifications and expertise in governance, strategy, investment management, audit services and accounting. We provide a holistic and consistent approach for all philanthropic requirements.

For a confidential discussion about your family’s philanthropic motivations, please call our team.