Is a giving fund right for me?

A giving fund in the APS Foundation can be an ideal solution for individuals, families and companies who:

• are happy to leave the administration, investment and statutory aspects of running a foundation to the trustee and focus solely on giving
• can make a minimum donation of $40,000 to open their giving fund and maintain this balance
• would like a tax deduction for donations
• would like to provide sustainable, long-term support for the community

What is the minimum amount I need to donate to establish a giving fund?

A giving fund with the APS Foundation can be established with a minimum donation of $40,000. Additional donations to your fund of $1,000 or more can be made at any time. All donations are tax-deductible and irrevocable.

Can I claim a tax deduction on my donation?

Certainly.  Donations into your giving fund are tax deductible because the APS Foundation has DGR Item 2 status. Deductions can be claimed in full immediately or spread over a period of up to five years.

Can I name my giving fund?

Yes, you choose the name of your giving fund. Your giving fund will be acknowledged when a gift is paid at your recommendation, or you can choose to remain anonymous. Giving funds cannot include the word ‘Foundation’ or ‘Trust’, but the words ‘Fund’, ‘Gift’ Bequest’, and ‘Endowment’ are all acceptable.

Who can I make gifts to?

Gifts can be paid from your fund to any of the 25,000+ eligible DGR Item 1 organisations including charities and government entities with a charitable purpose.

How much do I have to give away each year?

The APS Foundation is required to gift at least 3% of its assets each financial year. As such, each giving fund is asked to do the same.

When can I recommend a gift?

Whenever you like. We aim to pay approved gifts within 14 days of receiving your recommendation.

Can anyone donate to my giving fund?

Absolutely.  Anyone can donate to your giving fund, so friends, family and entities including companies and trusts can also make tax-deductible donations to your giving fund.

Can my giving fund be invested in both the General and Focused Portfolios?

A giving fund must be invested in either the General or Focused Portfolio. You can have multiple giving funds, each invested in different portfolios.

What are the fees involved?

APS manages all aspects of the APS Foundation including administration, compliance, internal investment management, and facilitating the yearly audit. It charges a fee of 1% per annum, excluding GST, on the amount held in each giving fund. This fee is calculated and paid on a monthly basis. As the APS Foundation can claim back 75% of GST paid, the final cost on giving funds is 1.025%.

The investments of the APS Foundation are managed directly by APS with the support of external specialist investment managers. External fund manager fees, where charged (most are rebated), are additional – estimated to be 0.36% pa based on assets of General Portfolio at 31 December 2022.

What are the investment options?

You have a choice of two investment portfolios with the APS Foundation, both invested in line with the one investment strategy.  The investment objective is to achieve a return after fees at least equal to CPI inflation + 4% per annum, measured over rolling seven-year periods.

• The General Portfolio, managed by Chris Cuffe, was established in 2012 and is well-diversified across the full investment spectrum. The performance of the General Portfolio was 9.0% for the year ended 30 June 2023 and 10.1% pa since inception in July 2012, which is significantly ahead of its target return.
• The Focused Portfolio, managed by David Wright, co-founder and Investment Director of Zenith Investment Partners, was established in June 2022. It is diversified across investment funds and individually managed accounts with a Responsible Investing (RI) and/or Environmental Social Governance (ESG) objective. The portfolio has been fully invested since October 2022, producing a positive return of 7.4% pa for the partial year October 2022 to 30 June 2023.

How can I monitor my giving fund?

Your giving fund balance is updated monthly to reflect investment returns, gifting and donation activity. You can login to your APS Foundation online portal to conveniently manage your giving and access information about your giving fund at any time.

• View your fund’s balance and browse a complete record of your fund’s gifting, donation and investment return activity since inception
• Top up your fund and make gift recommendations quickly and easily
• View documents arising from your fund’s activity, and Foundation-wide information including investment reports and giving tools
• See the latest news from the APS community, and more.

Why is there a minimum fund balance?

We believe the benefits of structured giving begin to meaningfully accrue on balances of $40,000 and above. For balances below $40,000, we recommend deploying the funds directly to charitable causes, where the immediate benefit to the community outweighs the benefits that accrue on lower balances through structured giving.

Can I wind up my Private Ancillary Fund (PAF) and transfer the balance to a giving fund in the APS Foundation?

Yes. Transferring your balance to a giving fund is a solution for donors seeking a more simplified and cost-effective giving structure. It also serves as an excellent succession plan solution for those who may not have surviving individuals they can or wish to entrust with their philanthropic legacy. Transferring to a giving fund in the APS Foundation enables donors to concentrate solely on the act of giving, while the APS Foundation Trustee efficiently manages all other aspects of the giving structure. Known as ‘porting,’ the process of transferring the balance from a Private Ancillary Fund to a giving fund is straightforward and subject to ATO approval. Our team of experts is readily available to assist you through the process.

Can I transfer the balance from another public ancillary fund to the APS Foundation?

Yes, you can transfer your balance to the APS Foundation through the ‘porting’ process, provided your existing provider allows it. Every year we support many donors transfer from other public ancillary funds into the APS Foundation so that they can enjoy better fees for service, more flexible gifting schedules, stronger investment returns, and access to fund reporting that is both up to date and convenient. Porting is a straightforward process, that requires approval from both your current provider and the ATO. Our expert team can guide you through the steps, helping you understand how to initiate a transfer from your existing public ancillary fund to the APS Foundation.

Make the most of your giving