Imagine freeing up a million dollars to donate to top-tier Australian charities. You could pick a few charities, make your tax-deductible donations, and perhaps even see your name on a building. But once that money is donated, it’s gone forever.
There is a way to make your generosity last.
Private Ancillary Fund: A Lasting Approach to Generosity
With your own Private Ancillary Fund (PAF), you can transform that initial million into an ongoing legacy. By investing the funds and claiming an upfront tax deduction spread over one to five years, you can continue to support your favourite charities annually. With the right investment strategy, your fund could potentially support charitable causes indefinitely.
Who Qualifies for a PAF?
We partner with Australians who meet wholesale investor tests as defined by the Corporations Act 2001. Typically, this includes individuals or families with a gross income of at least A$250,000 over the last two financial years or net assets of at least A$2.5 million.
How Much Do You Need to Establish a PAF?
We recommend starting with an initial investment of at least A$1 million in your PAF. This capital remains within the PAF to continually support charitable work, while you retain control over investment decisions and distributions. This setup not only maximises potential returns but also ensures that your contributions align with your values and ethical standards.
What are the Benefits of a PAF?
- Give Indefinitely: By growing your fund’s value beyond your annual donations, you ensure ongoing support for your cherished causes.
- Manage Your Investing: With expert advice, strategically invest your fund’s resources to maximise returns and adhere to ethical standards.
- Control Your Giving: Move from one-time donations to providing ongoing support to your chosen charities, allowing you to adjust your contributions as your priorities evolve.
- Tax Benefits: A PAF is a tax-exempt entity, meaning it does not pay income tax on its investment earnings and is eligible for a refund on franking credits.
Building a legacy for good through Private Ancillary Funds
A PAF offers a unique opportunity to build a living legacy by turning a portion of your wealth into a lasting giving machine. This enriches not only your life with purpose and fulfilment but also provides an opportunity to involve your loved ones in decision-making and stewarding the fund’s activities. By fostering a sense of shared purpose, a PAF ensures your impact resonates across generations. Through a PAF, you can pass on an enduring legacy that empowers your future generations to champion change, creating a meaningful cycle of giving that extends beyond a single lifetime.
Embrace a Sustainable Approach to Philanthropy
Considering a PAF? Let’s start a conversation about how you can turn your passion for giving into a sustainable legacy.