In recent years, Australia has seen a concerning decline in community engagement.
“Australians have become less likely to join community groups, less likely to volunteer, less likely to play organised sport, less likely to attend religious services, and less likely to know their neighbours. Declining social capital has broad implications for wellbeing, health and social connectedness”*.
Trends in Philanthropic Giving
A draft report from the Productivity Commission has unveiled a troubling trend: while the total amount of tax-deductible donations has increased, the number of individuals making these donations is on a decline. This paradox suggests that while the wealthy are giving more, fewer people are participating in the philanthropic process overall.
Wealth Growth and Philanthropic Potential
According to research from the Australian National University (ANU) in 2021, the percentage of adults qualifying as sophisticated investors has surged from 1.9% in 2002 to an impressive 16.2% in 2018.
This growth in wealth presents a unique opportunity for philanthropy, especially if these capable individuals are engaged effectively.
The Role of PAFs as a solution re-engagement
Private Ancillary Funds (PAFs) are uniquely positioned to leverage this wealth for the greater good. By allowing individuals to set up their own charitable funds, PAFs provide a structured way to contribute significantly and sustainably to societal wellbeing.
These funds not only offer tax benefits but also allow donors to have ongoing involvement that can transform charitable intentions into a powerful and enduring force for good, sustaining a philanthropic impact year after year.
Take Action Towards a Sustainable Legacy
By channelling your resources into structured philanthropy, you can play a critical role in reversing the trend of declining community participation. Contact us today to discover how a Private Ancillary Fund can support your philanthropic ambitions.
*The Hon Dr Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury, Assistant Minister for Employment https://ministers.treasury.gov.au/ministers/andrew-leigh-2022/media-releases/harnessing-generosity-boosting-philanthropy