Australians are showing strong growth in purpose-driven philanthropy, giving more generously and with greater purpose than ever. New data from Australian Philanthropic Services (APS) shows a shift towards strategic, legacy-focused philanthropy as the leading motivator for establishing structured giving vehicles such as Private Ancillary Funds (PAFs) and sub funds within Public Ancillary Funds (PuAFs).

The 2025 APS Client Survey, one of the most comprehensive studies of structured giving in Australia capturing responses from nearly 300 respondents, found that 86 per cent of donors were driven primarily by a desire to give, which highlights a shift towards long-term, values-led philanthropy. More than six in ten intend to maintain their fund in perpetuity, ensuring their charitable impact continues for generations.

Respondents also highlight the tax effectiveness of philanthropy. Establishing a PAF or a Giving Fund (also known as a sub fund) in a PuAF such as APS Foundation, is especially valuable during major financial events, like business sales or asset disposals, where capital gains tax liabilities arise, as funds within these structures provide immediate tax deductions which can be spread up to five years and the ancillary funds are income tax-exempt.

Judith Fiander, CEO of APS, said the results reflect how philanthropy in Australia is evolving from transactional giving to strategic, sustained impact.

“Our clients are deeply motivated by purpose,” Ms Fiander said, “many of them want to build something enduring that their families can be proud of.”

The APS 2025 Client Survey highlights the growing role that PAFs and Giving Funds play in enabling Australians to give strategically, efficiently and with long-term impact. Among the findings, 87 per cent of PAF clients and 65 per cent of Giving Fund holders in APS Foundation have already nominated or engaged a successor in their giving, highlighting the growing importance of philanthropy as a tool for intergenerational connection.

The survey also found that Australians value simplicity, trust, and strong governance in managing their giving. Respondents also expressed a keen interest in more educational content, charity insights, and tools to support their giving.

“Our clients want to learn, connect, and collaborate with peers. This shared enthusiasm gives us even greater confidence that we can achieve even more together,” Ms Fiander said.

Satisfaction across APS services was exceptionally high, achieving an industry-leading Net Promoter Score of 73, well above the professional services average of 48. Nearly all respondents rated governance, compliance and administrative support as top strengths, and cited our not-for-profit model and streamlined administration as key reasons for choosing APS. Clients with giving funds in APS Foundation cited those reasons plus the investment performance of APS Foundation as reasons for choosing APS.

“People want confidence that their philanthropy is handled with integrity and care. We’re investing in technology and tools that make giving easier, more informed and more rewarding, helping our clients focus on what really matters,” Ms Fiander said.

The survey comes as APS Foundation delivers another year of strong returns. For the year to 30 June 2025, the APS Foundation’s General Portfolio returned 10.6 per cent after fees, bringing its seven-year annualised return to 8.2 per cent. Since inception in 2012, the portfolio has achieved 10.2 per cent after fees.

The APS Foundation has a strongly diversified General Portfolio guided by an investment committee overseen by Chris Cuffe AO. Many of the Foundation’s investment managers provide their services on a pro or low bono basis. While Giving Funds in the APS Foundation are managed by APS investment managers, Chris Cuffe AO and David Wright, PAF funds are managed by the PAF’s directors or an investment manager appointed by PAF directors.

“The APS Foundation continues to meet or exceed its long-term targets, proving that philanthropy can deliver competitive, risk-adjusted returns,” Ms Fiander said. “People want to maximise their impact, and the strong returns generated by APS Foundation have compounded that impact over time. By applying institutional-quality investment management within a charitable structure, we’re showing that capital set aside for good can also perform strongly, amplifying the long-term benefit for the community.

To date, an estimated $7 billion has been gifted to charities through ancillary funds, which preserves long-term capital and encourages generosity in a structured context. Since its establishment 13 years ago, APS clients across APS Foundation and the private ancillary funds have given away more than $1.3 billion to charities and now have over $2.4 billion in funds irrevocably donated into ancillary funds for future charitable use.

These results, both on the fund performance side and the client satisfaction side, prove what we already know about structured giving. It’s about values, vision, and legacy.”

Published 10 December 2025