Giving Funds
Private Giving Funds Setup, Compliance, Management & More
A giving fund (formerly known as an ancillary fund or sub-fund) is a tax-effective charitable trust in Australia, often managed within a public foundation, that allows donors to invest assets and distribute grants to charities over time.
A giving fund is a charitable trust established under Australian tax law that allows donors to make tax-deductible contributions, invest those assets, and distribute grants to eligible charities over time.
First introduced in 1963 and expanded in 2000 to include private giving funds, there are now two kinds in Australia – public funds, which pool contributions from many donors and are typically operated by community foundations, and private giving funds (PAFs), which are established by an individual, family, or company and governed by their own board of trustees.
Our services are focused specifically on private giving funds, though we welcome any enquiry and are happy to point you in the right direction if a public structure may be a better fit for your circumstances.
Once established, a private giving fund receives contributions from its founders – these can be cash, shares, or other eligible assets. The fund is managed by a board of trustees responsible for overseeing the investment strategy and ensuring grants are made in accordance with the fund’s charitable purpose and Australian regulatory requirements. Each year, a minimum percentage of the fund’s net assets must be distributed as grants to eligible charities that are deductible gift recipients.
The Australian Government is currently moving to set the minimum annual distribution rate for both public and private giving funds at 6% of net assets – up from the previous 5% – to ensure more benefits flow to charities sooner while still allowing funds to invest and grow. Treasury analysis supports this position, finding that a fund receiving market returns and distributing 6% of net assets each year could remain operational for decades, even without further contributions. Of those giving funds that have made distributions in recent years, around half of private giving funds already exceeded this threshold.
Private giving funds are typically established by high-net-worth individuals, families, and family groups who want to formalise their philanthropy and create a structured, legacy-driven approach to charitable giving. They are particularly well suited to those who have experienced a liquidity event – such as the sale of a business or property – and wish to direct a meaningful portion of that wealth toward causes they care about. Corporate entities and professional advisors such as accountants and financial planners also engage with private giving funds, either on behalf of clients or as a white-labelled service offering.
A private giving fund may be right for you if:
- You want to make large, tax-effective charitable contributions
- You wish to involve family members in a shared philanthropic vision
- You are incorporating charitable giving into your estate or succession plan
- You prefer a structured, compliant approach to long-term giving
Private giving funds are required to invest in accordance with the investment strategy approved by their board of trustees. This strategy must reflect both the fund’s charitable objectives and its obligations under the Private Ancillary Fund Guidelines, which require that investments be made on a prudent, arms-length basis. The fund cannot engage in speculative or high-risk investments that could jeopardise its charitable purpose.
In practice, private giving funds typically invest in a diversified portfolio of listed equities, fixed income, and other suitable assets – often with an eye toward responsible or ESG-aligned investing, which many philanthropic founders find consistent with their values. A well-structured investment strategy, combined with the proposed 6% minimum distribution rate, can allow a fund to grow in real terms while still delivering meaningful support to charities each and every year.
Common investment approaches include:
- Franking credit optimisation to maximise giving capacity
- Diversified listed equity portfolios (Australian and international)
- Fixed interest and cash holdings for liquidity
- ESG and responsible investment strategies
- Unlisted assets in certain circumstances (subject to guidelines)
Australia was ranked 68th in the World Giving Report, with an average of just 0.73% of income donated – a figure that reflects how much room there is to grow a culture of generosity in this country. The Australian Government has recognised this, setting a national goal to double philanthropic giving by 2030. Private giving funds are one of the most effective vehicles for achieving that ambition, allowing donors to make meaningful, tax-effective contributions that compound over time rather than simply writing a one-off cheque.
Beyond the financial advantages, a giving fund creates a meaningful institutional structure around your generosity. It encourages intentional, strategic philanthropy rather than ad hoc giving, and can serve as a vehicle for building a lasting family legacy. Many families use their giving fund as a platform for intergenerational conversations about values, community, and responsibility.
Setting up and managing a private giving fund involves navigating tax law, ACNC compliance, investment governance, and ongoing administration – and doing it well requires expertise across all of these areas. The Giving Advisory is a full-service partner for private giving funds, meaning we handle the operational complexity from day one so you can focus on the giving itself. Whether you are establishing a new fund, taking over administration of an existing one, or looking to improve how your current fund is structured and invested, we are here to help.
We work with individual donors, families, financial advisors, and accountants across Australia. For advisors and accountants, we offer a white-label partnership model that allows you to offer private giving fund setup, compliance, and investment management under your own brand – supported by our infrastructure and expertise behind the scenes. Every engagement starts with a conversation about your philanthropic goals, and we build everything around those.
Our services cover every aspect of your private giving fund:
- Fund setup, trust structure, and giving policy
- Investment strategy and ongoing investment management
- ACNC and ATO lodgements and annual compliance
- Coordination and management of the annual audit
- Online reporting and performance tracking
- Charity research, grant coordination, and board meeting attendance
Ready to start your giving fund journey? Get in touch with our team by calling (02) 7252 4900 or emailing hello@givingadvisory.com.au – we would love to hear from you.
We Are Your Full-Service Partner for Private Giving Funds
We offer comprehensive services to manage every aspect of your Private Giving Fund (formerly known as Private Ancillary Fund or PAF) :
- Setup and Strategy: We establish your Private Giving Fund’s structure and assist you in designing an investment strategy which is aligned to your philanthropic goals.
- Administration and Compliance: We will complete lodgements with the Australian Charities and Not-for-profits Commission (ACNC) and ATO annual returns, we manage all administrative and compliance requirements.
- Investment Management: We oversee the investments of your Giving Funds, ensuring they align with your philanthropic objectives and governance standards.
- Online reporting: You will be able to track how your investments are performing via our online reporting.
- Audit and Reporting: We coordinate the annual audit to ensure your Giving Funds remains compliant.
We handle the operational complexities, allowing you to focus on what matters most to you.
Your Accounting Partner
We offer accounting services tailored for Financial Advisors and Accountants looking to expand their offerings or for accountants who would like to outsource their Giving Funds’ compliance and administration. This partnership allows you to provide seamless Giving Fund management and compliance services under your brand, supported by our expertise and infrastructure.
The accounting and administration services include:
- Private Giving Fund setup
- Private Giving Funds’ administration
- Online reporting showing performance of your investments
- Giving policy
- The Australian Charities and Not-for-profits Commission (ACNC) Lodgements
- Giving Funds’ compliance, including ATO Annual Information Return and Application for Refund of Franking Credits
- Attending required board meetings
- Coordination and management of the annual Giving Funds audit
- Coordinating donations with charities
- Coordinating the annual audit with the auditors
- Charity research and inquiries
- Implementing a Giving Fund as part of your estate planning strategy
- Communicating with your financial advisor on how to best administer your PAF
Your Investment Management Partner
Our investment management service for accountants enables you to incorporate sophisticated investment management solutions into your services. We work behind the scenes, ensuring you can offer a full spectrum of Giving Funds-related services to your clients, enhancing your firm’s capabilities and value proposition.
The Investment Management services include:
- Investment strategy
- Investment management of your Giving Funds
- Attending required board meetings
- Communicating with your accountant on how to best administer your Giving Funds
Our Process
How we work with you
Initial Meeting
We will discuss your giving vision and requirements and get an overview of our services and fee structure.
Setup
Following your approval, we’ll implement your Giving Fund’s structure, investment strategy, and giving policy, quickly getting your fund operational.
Implementation
We create the required documentation, establish necessary accounts, and set governance policies and assist you with making your first contribution to the Giving Funds.
Ongoing Management
We handle all compliance and management aspects of your Giving Funds, keeping you informed and engaged.
GIVING
Enjoy the rewards of your generosity with the peace of mind that your investments and compliance are expertly managed.