A better way of giving
The knowledge that you are financially contributing to the greater good can be enormously satisfying. But many wealthy Australians are still unaware of the benefits of structuring their giving through a private ancillary fund – and how simple and cost effective these vehicles are to both establish and administer, if given the right advice.
SVA’s objective is to help Australians take a more planned approach to their giving and help individuals, families and businesses discover the benefits and rewards of establishing a private ancillary fund.
A private ancillary fund (PAF) provides philanthropists with:
- A simple, efficient and cost effective vehicle for ongoing planned giving. The structure itself is income tax exempt and funds donated to the PAF (both now and in the future) can be tax deductible.
- Significant flexibility over the level of giving undertaken each year to eligible charities, with the only requirement being an annual minimum distribution of 5 per cent* of the overall assets held in the PAF. The amount of giving undertaken each year is controlled by the holder and can be higher that this minimum level if the PAF directors would prefer to distribute funds more quickly.
- Complete control over which organisations are the beneficiaries of the grants, provided the recipients have relevant Deductible Gift Recipient and charitable status.
More importantly, by establishing a private ancillary fund during their lifetime, rather than leaving a bequest to charity, PAF holders are able to see the results of their generosity for themselves and share their philanthropic values with their families, inspiring future generations to follow in their footsteps.
* With a minimum distribution of $11,000.