Structured giving via a giving fund (sub-fund) in a public ancillary fund (PuAF) offers a tax-smart way for individuals and families to amplify their charitable giving while enjoying flexibility and convenience. Donors receive an instant tax deduction for the cash contributed to the fund and the flexibility to distribute the balance to charity over time.

Choosing the right provider is important if you aim to maximise the impact of your charitable contributions. By placing your charitable funds in a well-managed PuAF, you can ensure that your balance grows through tax-free investment returns and minimal fees. This smart giving solution not only enables you to support the community but also increases the amount you’ll be able to give to your favourite charities.

Here are the top things to consider when selecting the right PuAF for your giving:

Fees and Expenses

Look for a provider that offers a low, all-inclusive fee structure, ensuring transparency and cost-effectiveness. Directly inquire about any additional Trustee, transaction, or investment management fees, which may not always be readily disclosed.

At the APS Foundation, we charge a competitive administration fee of 1.025% pa and an external fund manager fee that varies between 0.34-0.36% pa. As a not-for-profit organisation, there is no profit component to our fees.

Investment strategy, fees and performance

With tax-free investment returns on earnings within a PuAF, there’s a great opportunity to grow your fund while also supporting charitable causes. However, hidden investment management fees and subpar investment performance can deplete the growth of your fund.

Consider the investment credentials of the portfolio managers and evaluate the historical performance of the PuAF. Ensure that investment returns are quoted after fees. You may also consider whether the investment strategy and portfolio is in line with your values.

At the APS Foundation, investment management is undertaken by Australia’s best fund managers, hand-selected by veteran portfolio managers Chris Cuffe and David Wright, providing a General and a Focused Portfolio option. Most of the investment managers provide their services on a low or pro bono basis, which materially contributes to the balances of our giving funds and helps keep our costs low.

Access

Consider the frequency and accessibility of information about your fund’s activity.

Look for a provider that offers user-friendly online platforms for convenient access to your account. Consider the ease of making contributions and recommending gifts, ensuring a seamless, timely and hassle-free experience.

The APS Foundation offers an online portal where you can access real-time information about your funds giving and is updated monthly to reflect investment returns. We pay gifts weekly, so you can recommend gifts to charities on a schedule that suits you.

Transparency

Assess the provider’s dedication to accountability and transparency by checking the timeliness of its reporting with the charity regulator. You can do this by reviewing its public record with the Australian Charities and Not-for-profits Commission (ACNC).

At the APS Foundation, our commitment to transparency and accountability means we consistently meet our reporting obligations each year.

Governance and reporting

Assess the breadth and depth of experience across both the philanthropic and investment sectors within the PuAF’s trustee.

The Trustee of the APS Foundation, overseen by the APS Board, comprises experts across investment, technical advisory, and philanthropy sectors, ensuring robust governance and stewardship.

Ability to move (porting)

Confirm whether the PuAF allows balance transfers (known as ‘porting’) to other ancillary fund providers. You don’t want to commit your charitable dollars to a provider and subsequently discover that you are stuck with inadequate service or returns.

The APS Foundation facilitates porting and can help in establishing private ancillary funds if preferred, reaffirming our commitment to ensuring individuals are with the most suitable provider and structure for their needs.

Giving support

Consider the support, networks and resources available to help you give to causes and charities you care about.

APS offers a team of giving experts who can assist with recommending impactful organisations, sharing insightful resources, and connecting you with a community of like-minded philanthropists.

Future giving

A sub-fund can be a wonderful way to continue your philanthropic work beyond your lifetime or to create a legacy by engaging future generations. Consider whether the provider offers support and opportunities for succession planning.

The APS Foundation allows you to nominate a successor to continue your philanthropic work, direct additional money into your fund from your will, or to leave a statement of wishes with the trustee to continue your gifting program into the future.

By carefully considering these factors, you can select a PuAF that aligns with your values and maximises your giving, helping you to make a meaningful difference in the causes and communities that matter most to you.

Ready to explore your options and discuss how the APS Foundation can support your philanthropic journey? Contact us today.