The growing profile of philanthropy in Australia, triggered by the multi-trillion-dollar intergenerational wealth transfer, has paved the way for accountants and advisers to incorporate structured giving into client discussions, and there are sound business reasons for doing so, says Judith Fiander, chief executive at Australian Philanthropic Services (APS).

Private ancillary funds (PAFs) or a public ancillary fund (PuAF), can be a powerful tool for tax management, family legacy planning, and sustained charitable impact, often outperforming one-time donations.

“By introducing structured giving at the right moment, advisers can help clients turn a one-time financial event into a lasting charitable legacy, with a number of associated tax benefits,” she says.

Beyond tax benefits, structured giving serves to strengthen client relationships and engage the next generation, a critical factor as Australia undergoes an unprecedented intergenerational wealth transfer.

Establishing a PAF 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 an immediate tax deduction which can be spread over up to five years.

“Many of our clients are new to philanthropy and, in some cases, new to wealth due to a financial windfall,” Ms Fiander said.

“With good investments, income tax exemption and franking credits, a PAF can maintain its corpus – meaning it will continue to fund charities for many, many years into the future.”

Accountants and advisers are now embedding philanthropy into their business strategy by discussing giving during annual financial reviews, offering professional development on structured giving and sharing client success stories that highlight the joy and impact of philanthropy.

“Giving is not just good for the community; it’s deeply fulfilling for donors,” Ms Fiander says.

For more information on using structured giving for smart tax planning, contact us.

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Australian Philanthropic Services (APS) is the leading independent, not-for-profit expert in structured giving and provides comprehensive philanthropy support to givers. This includes setting up and managing giving structures, ensuring compliance with legal and tax obligations, and offering strategic advice to maximise the impact of charitable giving. Our 950+ clients donated over $200 million to charity last financial year and have committed over $2.4 billion to charity held in structures that we support.

We help our clients manage their charitable giving over time, using tax-efficient structures called ancillary funds. With APS, you can establish your own private ancillary fund (PAF) or a named giving fund (known as a sub-fund) in our public ancillary fund, the APS Foundation.

Published 12 February 2025