Page 2 - FWP Wealth Adviser newsletter - July 2025: Issue 116

ISSUE 116
JULY 2025

Why Structured Giving is Gaining Popularity • Your donation is invested, and only the earnings are dis-
Moving Beyond One-Off Donations tributed each year—so your impact continues over time
Many Australians are used to giving a few dollars here • Tax-deductible donations, with the option to spread de-
and there—at the checkout, during a charity drive, or online. ductions over several years if you make a large gift
While every bit helps, there’s a growing trend towards
“structured giving.” This means planning your donations in Who is it for?
a way that’s more strategic, so you can: People who want to support their favourite causes for
• Support your chosen causes over the long term years to come, with minimal administration.
• Maximise the impact of your gifts
• Take advantage of tax benefits 3. Private Ancillary Funds (PAFs)
• Involve your family and pass on your values What are they?
PAFs are private charitable trusts, usually set up by fami-
National Push to Double Giving lies or individuals who want to give large amounts (typically
The federal government wants to double philanthropic $500,000 or more). You control the investments and decide
giving by 2030. To help achieve this, they’ve introduced re- which charities receive grants, but you’re also responsible
forms to make giving easier and more attractive for everyday for compliance and reporting.
people—not just high-net-worth individuals.
Why consider a PAF?
Understanding Your Options: • Maximum control over how your money is invested and
How Can You Give? given
There are several ways you can structure your giving • Involve your family in decision-making and create a
in Australia. Here are the most popular options for retail tradition of giving
clients: • Tax-deductible donations and tax-free investment earnings
1. Public Ancillary Funds (PuAFs)
What are they? Who is it for?
PuAFs are managed funds that pool donations from Those with significant resources who want to create a
many people. You can contribute any amount, and the family foundation and manage their own giving.
fund’s managers handle all the paperwork, investments, and
compliance. Making Your Giving Work for You: Tax Benefits
and Compliance
Why consider a PuAF? How Tax-Deductible Giving Works
• No minimum donation—start with what you can afford When you donate to a charity or fund with DGR status,
• Donations are tax-deductible if the fund is a Deductible you can claim a tax deduction for your gift. This means
Gift Recipient (DGR) you pay less tax, while your chosen charity receives more
• You can set up a “sub-fund” in your name or your fami- support. For larger gifts, you can spread your deduction over
ly’s name for a personal touch up to five years—helpful if you want to manage your taxable
• The fund distributes at least 4% of its assets each year to income.
eligible charities
Checklist for Tax-Deductible Giving:
Who is it for? • Make sure the charity or fund has DGR status (check the
Anyone who wants a simple, flexible, and professionally ATO website)
managed way to give. • Keep your receipts and records
• Consider timing your donation for maximum tax benefit
2. Endowment Funds (Sub-Funds) (e.g., in a high-income year)
What are they? • For gifts over $5,000, talk to your accountant about
Often set up as part of a PuAF, endowment funds let you spreading deductions
make an initial donation (sometimes as low as $10,000) and
then recommend which charities receive grants from your New Reforms to Make Giving Easier
fund’s income each year. Recent government changes are making it simpler for all
Australians to give:
Why consider an endowment fund? • No more $2 minimum: Soon, all donations—no matter
• Create a named legacy for your family or a cause how small—will be eligible for a tax deduction

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