Page 4 - FWP Wealth Adviser newsletter - July 2025: Issue 116

ISSUE 116
JULY 2025

Frequently Asked Questions Conclusion: Giving That Makes Sense for You
What is a Deductible Gift Recipient (DGR)? Tax-smart philanthropy is not just for the wealthy or
A DGR is a charity or fund approved by the government financial experts. With new reforms and more flexible
to receive tax-deductible donations. Always check a char- options, every Australian can support the causes they care
ity’s DGR status before donating if you want to claim a about—while also enjoying real financial benefits. Whether
deduction. you choose to give directly, set up a sub-fund, or even create
a family foundation, structured giving can help you make
Can I choose which charities my fund supports? a bigger difference, build a legacy, and achieve your own
Yes. With PuAFs and endowment funds, you can recom- financial goals.
mend grants to your favourite charities. With a PAF, you If you’re ready to take the next step, start by exploring
have full control over grant-making (within legal guidelines). PuAFs or endowment funds, talk to your favourite charities
about DGR status, or seek advice for larger gifts. The most
Are there limits on how much I can claim as a tax deduc- important thing is to begin—your giving can change lives,
tion? including your own.
There’s no upper limit, but deductions can’t create a tax
loss. Any unused deductions can be carried forward for up
to five years. References
• Australian Taxation Office. (2025, July). Philanthropy - support to
What records do I need to keep? double philanthropic giving by 2030.
Keep receipts for all donations and any correspondence • Philanthropy Australia. (2025, March). DGR tax reforms to bring ‘new
with charities or funds. This will make tax time easier and era’ for community foundations.
ensure you can claim your deductions. • ifa. (2025, June). How philanthropy can be a ‘tax-smart strategy’.
• UNICEF Australia. (2025, May). Tax deductible donations - Everything
Comparing Your Giving Options you need to know in 2025.
• Australian Philanthropic Services. (2025, May). Private ancillary funds
Public Ancillary Endowment Fund Private Ancillary
Feature (PAFs) - Strategic & inspiring philanthropy.
Fund (PuAF) (Sub-Fund) Fund (PAF)
• Australian Charities and Not-for-profits Commission. (2025). Guidance
Minimum None ~$10,000+ ~$500,000+
Donation on ancillary funds.
• Swinburne University Centre for Social Impact. (2024). Research on
Donor Control Moderate Moderate High
philanthropy and financial well-being.
Professional Optional (self-
Yes Yes • Giving Australia Report. (2024). National trends in charitable giving.
Management managed)
Tax Deductibility Yes Yes Yes
Family Yes Yes Yes
Involvement
Administration Low Low High
Those wanting a High-net-worth
Ideal For Anyone
legacy families

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